Trial Engrossment of Amendment A05302 to Senate Bill 0688 P.N. 1775, Regular Session 2023-2024

HOUSE AMENDED

A05302

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

688

Session of

2023

INTRODUCED BY REGAN, ROBINSON, DiSANTO, ROTHMAN, STEFANO,

PHILLIPS-HILL, YAW, COLEMAN, AUMENT, BAKER, PENNYCUICK AND

BROWN, MAY 5, 2023

AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 25, 2024

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

preliminary provisions, further providing for definitions; in

Pennsylvania Liquor Stores, further providing for sales by

Pennsylvania Liquor Stores; and, in licenses and regulations,

liquor, alcohol and malt and brewed beverages, further

providing for heading of article, for authority to issue

liquor licenses to hotels, restaurants and clubs, for sales

by liquor licensees and restrictions, for secondary service

area, for sale of malt or brewed beverages by liquor

licensees, for public service liquor licenses, for liquor

importers' licenses, fees, privileges and restrictions, for

public venue license, for performing arts facility license,

for continuing care retirement community retail licenses,

for casino liquor license, for malt and brewed beverages

manufacturers', distributors' and importing distributors'

licenses, for sales by manufacturers of malt or brewed

beverages and minimum quantities and for distributors' and

importing distributors' restrictions on sales, storage, etc;

adding provisions relating to fees and taxation of ready-to-

drink cocktails for off-premises consumption; and further

providing for unlawful acts relative to malt or brewed

beverages and licensees.

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

PRELIMINARY PROVISIONS, FURTHER PROVIDING FOR DEFINITIONS; IN

PENNSYLVANIA LIQUOR STORES, FURTHER PROVIDING FOR SALES BY

PENNSYLVANIA LIQUOR STORES; and, IN LICENSES AND REGULATIONS

RELATING TO LIQUOR, ALCOHOL AND MALT AND BREWED BEVERAGES,

FURTHER PROVIDING FOR LIQUOR IMPORTERS' LICENSES, FEES,

PRIVILEGES AND RESTRICTIONS, PROVIDING FOR READY-TO-DRINK

COCKTAIL PERMIT AND FOR AUTHORITY TO ACQUIRE READY-TO-DRINK

COCKTAIL PERMITS, and FURTHER PROVIDING FOR DISTRIBUTORS' AND

IMPORTING DISTRIBUTORS' RESTRICTIONS ON SALES, STORAGE, ETC,

FOR UNLAWFUL ACTS RELATIVE TO MALT OR BREWED BEVERAGES AND

LICENSEES, FOR UNLAWFUL ACTS RELATIVE TO LIQUOR, MALT AND

BREWED BEVERAGES AND LICENSEES; AND, IN DISTILLERIES,

WINERIES, BONDED WAREHOUSES, BAILEES FOR HIRE AND

TRANSPORTERS FOR HIRE, FURTHER PROVIDING FOR LIMITED

DISTILLERIES AND DISTILLERIES.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 of the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code, is amended by adding

definitions to read:

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Ready-to-drink cocktail" shall mean a beverage, composed in

part of spirits, combined with other nonalcoholic ingredients,

A05302 - 2 -

carbonated or still, by whatever name such beverage may be

called, premixed and packaged in original containers, containing

not more than sixteen ounces, provided that it is not mixed or

adulterated on the licensed premises of a licensee. It shall

mean any beverage consisting of at least one-half of one per

centum, but not greater than twelve and one-half per centum,

alcohol by volume. It shall not mean any beverage composed, in

part, of wine or malt or brewed beverages. It shall be treated

like liquor unless the context clearly indicates otherwise.

* * *

"Spirits" shall mean any beverage which contains alcohol

obtained by distillation, mixed with water or other substances

in solution, and includes brandy, rum, whiskey, gin or other

spirituous liquors and such liquors when rectified, blended or

otherwise mixed with alcohol or other substances.

* * *

Section 2. Section 305(b) of the act is amended and the

section is amended by adding a subsection to read:

Section 305. Sales by Pennsylvania Liquor Stores.--* * *

(b) Every Pennsylvania Liquor Store shall sell liquors at

wholesale to hotels, restaurants, clubs, and railroad, pullman

and steamship companies licensed under this act; and, under the

regulations of the board, to pharmacists duly licensed and

registered under the laws of the Commonwealth, and to

manufacturing pharmacists, and to reputable hospitals approved

by the board, or chemists. Sales to licensees shall be made at a

price that includes a discount of ten per centum from the retail

price; except that special order sales to licensees authorized

in subsection (a) shall not be subject to the ten per centum

discount. Ready-to-drink cocktails as defined in section 102

A05302 - 3 -

shall not be subject to the ten per centum discount. The board

may sell to registered pharmacists only such liquors as conform

to the Pharmacopoeia of the United States, the National

Formulary, or the American Homeopathic Pharmacopoeia. The board

may sell at special prices under the regulations of the board,

to United States Armed Forces facilities which are located on

United States Armed Forces installations and are conducted

pursuant to the authority and regulations of the United States

Armed Forces. All other sales by such stores shall be at retail,

except that incentives, such as coupons or discounts on certain

products, may be offered to unlicensed customers of the board as

provided under sections 207(m) and 493(24)(ii)(B). A person

entitled to purchase liquor at wholesale prices may purchase the

liquor at any Pennsylvania Liquor Store upon tendering cash,

check or credit card for the full amount of the purchase. For

this purpose, the board shall issue a discount card to each

licensee identifying such licensee as a person authorized to

purchase liquor at wholesale prices. Such discount card shall be

retained by the licensee. The board may contract through the

Commonwealth bidding process for delivery to wholesale licensees

at the expense of the licensee receiving the delivery.

* * *

(l) Pennsylvania Liquor Stores may sell ready-to-drink

cocktails but are not restricted to the ready-to-drink cocktail

container limits or alcohol by volume limits per the definition

in section 102.

Section 3. Article IV heading and sections 401(a), 406(a),

(c), (d), (e) and (f) introductory paragraph, 406.1(a), 407

heading and (a)(1) and (2) and 408(a) and (e) of the act are

amended to read:

A05302 - 4 -

ARTICLE IV.

LICENSES AND REGULATIONS; LIQUOR, ALCOHOL AND

MALT AND BREWED BEVERAGES

AND READY-TO-DRINK COCKTAILS.

Section 401. Authority to Issue Liquor Licenses to Hotels,

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

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

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

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

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

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

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

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

brewed beverages for consumption off the premises where sold in

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

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

In addition, such licensees, other than clubs, shall be

permitted to sell ready-to-drink cocktails for off-premises

consumption where sold in quantities of not more than one

hundred ninety-two fluid ounces in a single sale to one person

in the same manner as malt or brewed beverages as provided for

in section 407. Such licenses shall be known as hotel liquor

licenses, restaurant liquor licenses and club liquor licenses,

respectively. No person who holds any public office that

involves the duty to enforce any of the penal laws of the United

States, this Commonwealth or of any political subdivision of

this Commonwealth may have any interest in a hotel or restaurant

A05302 - 5 -

liquor license. This prohibition applies to anyone with arrest

authority, including, but not limited to, United States

attorneys, State attorneys general, district attorneys, sheriffs

and police officers. This prohibition shall also apply to

magisterial district judges, judges or any other individuals who

can impose a criminal sentence. This prohibition does not apply

to members of the General Assembly, township supervisors, city

councilpersons, mayors without arrest authority and any other

public official who does not have the ability to arrest or the

ability to impose a criminal sentence. This section does not

apply if the proposed premises are located outside the

jurisdiction of the individual in question.

* * *

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

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

liquor, ready-to-drink cocktails and malt or brewed beverages by

the glass, open bottle or other container, and in any mixture,

for consumption only in that part of the hotel or restaurant

habitually used for the serving of food to guests or patrons, or

in a bowling alley that is immediately adjacent to and under the

same roof as a restaurant, and in the case of hotels, to guests,

and in the case of clubs, to members, in their private rooms in

the hotel or club. No club licensee nor its officers, servants,

agents or employes, other than one holding a catering license,

shall sell any liquor, ready-to-drink cocktails or malt or

brewed beverages to any person except a member of the club. The

holder of a restaurant license located in a hotel may sell

liquor, ready-to-drink cocktails or malt or brewed beverages for

consumption in that part of the restaurant habitually used for

the serving of meals to patrons and also to guests in private

A05302 - 6 -

guest rooms in the hotel. For the purpose of this paragraph, any

person who is an active member of another club which is

chartered by the same state or national organization shall have

the same rights and privileges as members of the particular

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

active member of any volunteer firefighting company, association

or group of this Commonwealth, whether incorporated or

unincorporated, shall upon the approval of any club composed of

volunteer firemen licensed under this act, have the same social

rights and privileges as members of such licensed club. For the

purposes of this paragraph, the term "active member" shall not

include a social member. Any club licensee which is either an

incorporated unit of a national veterans' organization or an

affiliated organization as defined in section 461.1 shall be

permitted to sell liquor, ready-to-drink cocktails or malt or

brewed beverages to any active member of another unit which is

chartered by the same national veterans' organization or to any

member of a nationally chartered auxiliary associated with the

same national veterans' organization.

(2) Hotel and restaurant liquor licensees, municipal golf

course restaurant liquor licensees and privately-owned public

golf course restaurant licensees may sell liquor, ready-to-drink

cocktails and malt or brewed beverages only after seven o'clock

antemeridian of any day until two o'clock antemeridian of the

following day, except Sunday, and except as hereinafter

provided, may sell liquor, ready-to-drink cocktails and malt or

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

midnight and two o'clock antemeridian. No sales of ready-to-

drink cocktails for off-premises consumption may take place

after eleven o'clock postmeridian of any day until the

A05302 - 7 -

licensee's permitted hours of operation under this section of

the following day.

(2.1) Airport restaurant liquor licensees may sell liquor,

ready-to-drink cocktails and malt or brewed beverages only after

five o'clock antemeridian of any day and until two o'clock

antemeridian of the following day.

(3) Hotel and restaurant liquor licensees, municipal golf

course restaurant liquor licensees and privately-owned public

golf course restaurant licensees may sell liquor, ready-to-drink

cocktails and malt or brewed beverages on Sunday between the

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

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

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

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

1929." Airport restaurant liquor licensees may sell liquor,

ready-to-drink cocktails and malt or brewed beverages on Sunday

between the hours of five o'clock antemeridian and two o'clock

antemeridian Monday upon purchase of a special permit from the

board at an annual fee as prescribed in section 614-A of the act

of April 9, 1929 (P.L.177, No.175), known as "The Administrative

Code of 1929." No sales of ready-to-drink cocktails for off-

premises consumption may take place after eleven o'clock

postmeridian of any day until the licensee's permitted hours of

operation under this section of the following day.

(4) Hotel and restaurant liquor licensees, municipal golf

course restaurant liquor licensees and privately-owned public

golf course restaurant licensees which do not qualify for and

purchase such special permit, their servants, agents or employes

may sell liquor, ready-to-drink cocktails and malt or brewed

beverages only after seven o'clock antemeridian of any day and

A05302 - 8 -

until two o'clock antemeridian of the following day, and shall

not sell after two o'clock antemeridian on Sunday. No club

licensee or its servants, agents or employes may sell liquor,

ready-to-drink cocktails or malt or brewed beverages between the

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

antemeridian on any day. No public service liquor licensee or

its servants, agents, or employes may sell liquor, ready-to-

drink cocktails or malt or brewed beverages between the hours of

two o'clock antemeridian and seven o'clock antemeridian on any

day. No sales of ready-to-drink cocktails for off-premises

consumption may take place after eleven o'clock postmeridian of

any day until the licensee's permitted hours of operation under

this section of the following day.

(6) Notwithstanding any provisions to the contrary, whenever

the thirty-first day of December falls on a Sunday, every hotel

or restaurant liquor licensee, their servants, agents or

employes may sell liquor, ready-to-drink cocktails and malt or

brewed beverages on any such day after one o'clock postmeridian

and until two o'clock antemeridian of the following day. No

sales of ready-to-drink cocktails for off-premises consumption

may take place after eleven o'clock postmeridian of any day

until the licensee's permitted hours of operation under this

section of the following day.

(6.1) Notwithstanding any provisions to the contrary,

whenever Saint Patrick's Day falls on a Sunday, every hotel or

restaurant liquor licensee, their servants, agents or employes

may sell liquor, ready-to-drink cocktails and malt or brewed

beverages on any such day after seven o'clock antemeridian and

until two o'clock antemeridian of the following day. No sales of

ready-to-drink cocktails for off-premises consumption may take

A05302 - 9 -

place after eleven o'clock postmeridian of any day until the

licensee's permitted hours of operation under this section of

the following day.

(7) Notwithstanding any other provision of this act, if

Groundhog Day falls on a Sunday, a hotel or restaurant licensee

or the hotel or restaurant licensee's servants, agents or

employes may sell liquor, ready-to-drink cocktails and malt or

brewed beverages on that day after seven o'clock antemeridian

and until two o'clock antemeridian of the following day. No

sales of ready-to-drink cocktails for off-premises consumption

may take place after eleven o'clock postmeridian of any day

until the licensee's permitted hours of operation under this

section of the following day.

* * *

on which the sporting event commonly referred to as the "Super

Bowl" is conducted, licensees who do not possess the special

annual permit provided for in subsection (a)(3), their servants,

agents or employes may sell liquor, ready-to-drink cocktails and

malt or brewed beverages on such Sunday after one o'clock

postmeridian and until two o'clock antemeridian of the following

day. No sales of ready-to-drink cocktails for off-premises

consumption may take place after eleven o'clock postmeridian of

any day until the licensee's permitted hours of operation under

this section of the following day.

(d) Subject to section 412, licensed public venues may sell

liquor, ready-to-drink cocktails and malt or brewed beverages on

Sundays from eleven o'clock antemeridian until midnight without

the need to acquire or qualify for a special permit. In

addition, subject to section 413, licensed performing arts

A05302 - 10 -

facilities may sell liquor, ready-to-drink cocktails and malt or

brewed beverages on Sundays from ten o'clock antemeridian until

ten o'clock postmeridian without the need to acquire or qualify

for a special permit.

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

restaurant license located in a hotel may allow persons to

transport liquor, ready-to-drink cocktails or malt or brewed

beverages from the licensed portion of the premises to the

unlicensed portion of the premises, so long as the liquor,

ready-to-drink cocktails or malt or brewed beverages remain on

the hotel property. In addition, a holder of a restaurant or

club license located on a golf course may sell, furnish or give

liquor, ready-to-drink cocktails or malt or brewed beverages on

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

ready-to-drink cocktails or malt or brewed beverages remain on

the restaurant, club or golf course. The holder of a restaurant

license located immediately adjacent to and under the same roof

of a bowling center may allow persons to transport liquor,

ready-to-drink cocktails or malt or brewed beverages from the

licensed portion of the premises to the unlicensed portion of

the premises, so long as the liquor, ready-to-drink cocktails or

malt or brewed beverages remain within the bowling center. In

addition, the holder of a hotel license or a restaurant license

may allow persons who have purchased but only partially consumed

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

premises so long as the bottle was purchased in conjunction with

a meal which was consumed on the premises and so long as the

bottle is resealed. For purposes of this subsection, "wine"

shall have the meaning given to it under section 488(i). For

purposes of this section and section 432, "meal" shall mean food

A05302 - 11 -

prepared on the premises, sufficient to constitute breakfast,

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

popcorn, chips or similar food.

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

golf course may store liquor, ready-to-drink cocktails or malt

or brewed beverages in a permanent facility on the unlicensed

portion of the golf course so long as the liquor, ready-to-drink

cocktails or malt or brewed beverages remain on the restaurant,

club or golf course without regard to whether there is any

intervening public thoroughfare.

(f) The holder of a hotel or restaurant liquor 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, liquor, ready-to-drink cocktails and malt or brewed

beverages by the glass, open bottle or other container, and in

any mixture together with food, for consumption on those

premises. Functions conducted under the authority of the permit

shall be subject to the following:

* * *

Section 406.1. Secondary Service Area.--(a) Upon

application of any restaurant, hotel, club, municipal golf

course liquor licensee, distillery, limited distillery or

manufacturer of malt or brewed beverages or manufacturer of

ready-to-drink cocktails, and payment of the appropriate fee,

the board may approve a secondary service area by extending the

licensed premises to include one additional permanent structure

with dimensions of at least one hundred seventy-five square

feet, enclosed on three sides and having adequate seating. Such

secondary service area must be located on property having a

A05302 - 12 -

minimum area of one (1) acre, and must be on land which is

immediate, abutting, adjacent or contiguous to the licensed

premises with no intervening public thoroughfare; however, the

original licensed premises and the secondary service area must

be located on the same tract of land. The board shall have

discretion to refuse the application for a secondary service

area in the same manner it has discretion to refuse an

application for transfer of the license to a new location as set

forth in section 404. There shall be no requirement that the

secondary service area be physically connected to the original

licensed premises. In addition, there shall be no requirement

that the secondary service area be located in the same

municipality as the original licensed premises, provided,

however, that the board shall not approve a secondary service

area in this case if that secondary service area is located in

any municipality where the granting of liquor licenses has been

prohibited as provided in this article. Notwithstanding 40 Pa.

Code § 7.21, the licensee shall be permitted to store, serve,

sell or dispense food, liquor, ready-to-drink cocktails and malt

or brewed beverages at the board approved secondary service

area.

* * *

Section 407. Sale of Malt or Brewed Beverages and Ready-to-

Drink Cocktails by Liquor Licensees.--(a) (1) Every liquor

license issued to a hotel, restaurant, club, or a railroad,

pullman or steamship company under this subdivision (A) for the

sale of liquor shall authorize the licensee to sell malt or

brewed beverages and ready-to-drink cocktails at the same places

but subject to the same restrictions and penalties as apply to

sales of liquor, except that licensees other than clubs may sell

A05302 - 13 -

malt or brewed beverages for consumption off the premises where

sold in quantities of not more than one hundred ninety-two fluid

ounces in a single sale to one person. The sales may be made in

either open or closed containers, Provided, however, That a

municipality may adopt an ordinance restricting open containers

in public places. In addition, licensees, other than clubs, may

sell ready-to-drink cocktails for off-premises consumption where

sold in quantities of not more than one hundred ninety-two fluid

ounces in a single sale to one person. No licensee under this

subdivision (A) shall at the same time be the holder of any

other class of license, except a retail dispenser's license

authorizing the sale of malt or brewed beverages only. Sales of

malt or brewed beverages must occur on the licensed premises.

(2) If a restaurant liquor license holder has an interior

connection to another business that it operates, the restaurant

liquor license holder may use one or more of the registers in

the other business to sell malt or brewed beverages and ready-

to-drink cocktails for off-premises consumption under the

following conditions:

(i) the building is eleven thousand square feet or less;

(ii) the registers are located in the same building as the

licensed premises;

(iii) the registers comply with the signage, staffing,

training, carding, scanning and prohibition on the sharing of

data provisions of section 415(a)(8) and (9); and

(iv) the board has been provided notice of compliance with

this paragraph by the restaurant liquor license holder,

including square footage of the building and the location of the

specific registers to be used prior to their use.

* * *

A05302 - 14 -

Section 408. Public Service Liquor Licenses.--(a) Subject

to the provisions of this act and regulations promulgated under

this act, the board, upon application, shall issue retail liquor

licenses to railroad or pullman companies permitting liquor,

ready-to-drink cocktails and malt or brewed beverages to be sold

in dining, club or buffet cars to passengers for consumption

while enroute on such railroad, and may issue retail liquor

licenses to steamship companies permitting liquor, ready-to-

drink cocktails or malt or brewed beverages to be sold in the

dining compartments of steamships or vessels wherever operated

in the Commonwealth, except when standing or moored in stations,

terminals or docks within a municipality wherein sales of liquor

for consumption on the premises are prohibited, and may further

issue retail liquor licenses to airline companies permitting

liquor, ready-to-drink cocktails or malt or brewed beverages to

be sold to passengers for consumption while enroute on such

airline. Such licenses shall be known as public service liquor

licenses. The board may issue a master license to railroad or

pullman companies to cover the maximum number of cars which the

company shall estimate that it will operate within the

Commonwealth on any one day. Such licensees shall file monthly

reports with the board showing the maximum number of cars

operated in any one day during the preceding month, and if it

appears that more cars have been operated than covered by its

license it shall forthwith remit to the board the sum of twenty

dollars for each extra car so operated.

* * *

(e) Except as otherwise specifically provided, sales of

liquor, ready-to-drink cocktails and malt or brewed beverages by

the aforesaid public service company licensees shall be made in

A05302 - 15 -

accordance with, and shall be subject to, the provisions of this

act relating to the sale of liquors by restaurant licensees.

Section 4. Section 410(e) of the act is amended and the

section is amended by adding a subsection to read:

Section 410. Liquor Importers' Licenses; Fees; Privileges;

Restrictions.--* * *

(e) Importers' licenses shall permit the holders thereof to

bring or import liquor and ready-to-drink cocktails from other

states, foreign countries, or insular possessions of the United

States, and purchase liquor from manufacturers located within

this Commonwealth, to be sold outside of this Commonwealth or to

Pennsylvania Liquor Stores within this Commonwealth, or when in

original containers of ten gallons or greater capacity, to

licensed manufacturers within this Commonwealth.

All importations of liquor into Pennsylvania by the licensed

importer shall be consigned to the board or the principal place

of business or authorized place of storage maintained by the

licensee.

* * *

(i) The holder of an importer's license may sell and deliver

ready-to-drink cocktails to licensed importers, distributors,

importing distributors, hotels, restaurants and clubs. The sale

of ready-to-drink cocktails shall be subject to section 431.

Section 5. Sections 412(f) and (g), 413(f), 414(b)(1), (2),

(3) and (4), 416(a), (e) and (i)(1), (2), (3) and (4) and the

heading of Subdivision B of Article IV of the act are amended to

read:

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

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

restaurant liquor licenses. However, the following additional

A05302 - 16 -

restrictions and privileges apply:

(1) Sales may only be made one hour before, during and one

hour after any athletic performance, performing arts event,

trade show, convention, banquet or any other performance at the

facility; however, sales may not be made from two o'clock

antemeridian to seven o'clock antemeridian. In addition, sales

may not occur prior to eleven o'clock antemeridian on Sundays or

seven o'clock antemeridian on Mondays. Notwithstanding this

section, facilities that had been licensed under former sections

408.9 and 408.14 may sell liquor, ready-to-drink cocktails

and/or malt or brewed beverages anytime except from two o'clock

antemeridian to seven o'clock antemeridian or prior to eleven

o'clock antemeridian on Sundays or seven o'clock antemeridian on

Mondays, regardless of whether there is a performance at the

facility.

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

professional and amateur athletic events, performing arts events

or other entertainment events may consist of liquor, ready-to-

drink cocktails or malt or brewed beverages in shatterproof

containers. Sales during trade shows, conventions, banquets or

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

restaurant facility, may consist of liquor, ready-to-drink

cocktails or malt or brewed beverages in any type of container;

however, any liquor, ready-to-drink cocktails or malt or brewed

beverages sold in the club seats or restaurant facility must

remain in the club seating level or restaurant facility. For

purposes of this section, a club seat is any seating located on

the designated club seating level and partitioned from general

seating by a wall, divider, partial wall or railing. The club

seating level must not be accessible by the general public.

A05302 - 17 -

Sales at zoos during private banquets and other events may be at

any site within zoo property and may consist of any type of

alcohol in any type of container. The board's records shall

clearly delineate where the sale of liquor, ready-to-drink

cocktails or malt or brewed beverages in any type of container

may occur.

(3) Sales of ready-to-drink cocktails and malt or brewed

beverages for off-premises consumption are prohibited.

(4) Licenses issued under this section shall not be subject

to: (i) the proximity provisions of sections 402 and 404; (ii)

the quota restrictions of section 461; (iv) the provisions of

section 493(10) except as they relate to lewd, immoral or

improper entertainment; (v) the prohibition against minors

frequenting as described in section 493(14) and (vi) the cost

and total display area limitations of section 493(20)(i). In

addition, licenses issued under this section shall not be

subject to the provisions defining "restaurant" in section 102.

(g) The board may issue multiple licenses under this section

for use in a public venue with permanent seating of at least

thirty-five thousand people. If the board does issue more than

one license for a specific public venue, written notice of the

event must be provided to the enforcement bureau at least forty-

eight hours in advance of the dispensing of any liquor, ready-

to-drink cocktails or malt or brewed beverages. The notice shall

include the date, time and specific licensed areas to be used.

No more than one license issued under this section shall be in

effect at any location at any time of day at the same time.

Section 413. Performing Arts Facility License.--* * *

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

restaurant liquor licenses. However, the following additional

A05302 - 18 -

restrictions and privileges apply:

(1) Sales of liquor, ready-to-drink cocktails and malt or

brewed beverages may be made two hours before, during and one

hour after any performance at the facility; however, sales may

not be made from two o'clock antemeridian to seven o'clock

antemeridian. In addition, sales may not occur prior to ten

o'clock antemeridian or after ten o'clock postmeridian on

Sundays. However, facilities that had been licensed under former

section 408.3(a) and 408.3(a.2) may sell liquor, ready-to-drink

cocktails and malt or brewed beverages anytime except from two

o'clock antemeridian to seven o'clock antemeridian or prior to

one o'clock postmeridian or after ten o'clock postmeridian on

Sundays, regardless of whether there is a performance at the

facility.

(2) Sales of ready-to-drink cocktails and malt or brewed

beverages for off-premises consumption are prohibited.

* * *

Section 414. Continuing Care Retirement Community Retail

Licenses.--* * *

(b) Licenses issued under this section are restaurant liquor

licenses for all purposes except as provided herein. However,

the following additional restrictions and privileges apply:

(1) Licenses issued under this section are not subject to

the quota restrictions of section 461.

(2) Sales of liquor, ready-to-drink cocktails and malt or

brewed beverages may not occur from two o'clock antemeridian to

seven o'clock antemeridian. In addition, sales may not occur

prior to one o'clock postmeridian or after ten o'clock

postmeridian on Sunday.

(3) Liquor, ready-to-drink cocktails and malt or brewed

A05302 - 19 -

beverages sold or furnished by the licensee may be possessed

anywhere within the continuing care retirement community

regardless of whether that portion of the premises is licensed.

However, no liquor, ready-to-drink cocktails or malt or brewed

beverages sold or furnished by the licensee may be taken beyond

the confines of the continuing care retirement community.

(4) Sales of liquor, ready-to-drink cocktails or malt or

brewed beverages may occur in those portions of the premises

licensed by the board as well as in rooms that are lived in or

used by residents of the continuing care retirement community.

Sales of liquor, ready-to-drink cocktails and malt or brewed

beverages are limited to residents of the continuing care

retirement community and the guests of residents in conjunction

with the normal, regularly scheduled dining, entertainment or

social activities of the continuing care retirement community.

* * *

Section 416. Casino Liquor License.--(a) Notwithstanding

any provision of law or regulation, a slot machine licensee or

an affiliated designee holding a restaurant liquor or eating

place retail dispenser license and which sells liquor, ready-to-

drink cocktails or malt or brewed beverages at or adjacent to a

gaming facility under this act may apply to the board for a

casino liquor license. The board may issue a casino liquor

license to a slot machine licensee for use at the casino liquor

licensee's licensed facility in accordance with this section.

* * *

(e) Notwithstanding any other provision of law, a holder of

a casino liquor license may sell or serve liquor, ready-to-drink

cocktails and malt or brewed beverages twenty-four (24) hours a

day, seven (7) days a week.

A05302 - 20 -

* * *

(i) In addition to any other restrictions and privileges, a

casino liquor license shall be subject to the following:

(1) Sales may be made at any time the facility is open to

the public.

(2) Liquor, ready-to-drink cocktails or malt or brewed

beverages may be transported and consumed off the gaming floor

if the liquor, ready-to-drink cocktails or malt or brewed

beverage remains within the premises of the licensed facility.

(3) Sales of ready-to-drink cocktails and malt or brewed

beverages for off-premises consumption are prohibited.

(4) In addition to the provisions of section 493(24)(ii),

the holder of a casino liquor license may give liquor, ready-to-

drink cocktails and malt or brewed beverages free of charge to

any person attending an invitation-only event held anywhere on

the premises of the licensed facility.

* * *

(B) Malt and Brewed Beverages and

Ready-to-Drink Cocktails (Including Manufacturers).

Section 6. Section 431(b), (b.1), (c), (d) and (f) of the

act are amended and the section is amended by adding a

subsection to read:

Section 431. Malt and Brewed Beverages Manufacturers',

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

(b) 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 and ready-to-drink cocktails, not

for consumption on the premises where sold, and in quantities of

A05302 - 21 -

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 and ready-to-drink cocktails 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; however, ready-to-drink cocktails

shall only be sold in the original container. 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

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

A05302 - 22 -

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 proposed licensee will engage in sales of

malt or brewed beverages and ready-to-drink cocktails. This

notice shall be similar to the notice required of hotel,

restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize

the holder thereof to sell or deliver malt or brewed beverages

and ready-to-drink cocktails 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

A05302 - 23 -

beverages and ready-to-drink cocktails 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

and ready-to-drink cocktails 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 and

ready-to-drink cocktails 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

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.

Each out of State manufacturer [of] and manufacturer of

A05302 - 24 -

ready-to-drink cocktails and 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

and ready-to-drink cocktails 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 and ready-to-drink cocktails 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. If the licensee purchasing the malt or brewed

beverages and ready-to-drink cocktails from the distributor

license holder holds multiple licenses or operates at more than

one location, then the malt or brewed beverages and ready-to-

drink cocktails 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 and ready-to-drink cocktails

to the distributor. Should a licensee accept the delivery of

malt or brewed beverages and ready-to-drink cocktails or

transfer malt or brewed beverages and ready-to-drink cocktails

in violation of this section, said licensee shall be subject to

a suspension of his license for at least thirty days: Provided,

That the importing distributor holding such distributing rights

for such product shall not sell or deliver the same to another

A05302 - 25 -

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.

When a Pennsylvania manufacturer of malt or brewed beverages

or manufacturer of ready-to-drink cocktails 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 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 and ready-to-

drink cocktails 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 and ready-to-drink cocktails to the

distributor. If the licensee purchasing the malt or brewed

beverages and ready-to-drink cocktails from the distributor

license holder holds multiple licenses or operates at more than

one location, the malt or brewed beverages and ready-to-drink

cocktails may not be consumed or sold at licensed premises

located within the designated geographical area granted to an