Trial Engrossment of Amendment A05284 to House Bill 0829 P.N. 3417, Regular Session 2023-2024

SENATE AMENDED

A05284

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

829

Session of

2023

INTRODUCED BY GERGELY, SANCHEZ, MADDEN, DEASY, HILL-EVANS,

KUZMA, GUZMAN, PISCIOTTANO, WEBSTER AND T. DAVIS,

APRIL 4, 2023

SENATOR REGAN, LAW AND JUSTICE, IN SENATE, AS AMENDED,

JUNE 26, 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; in licenses and regulations and

liquor, alcohol and malt and brewed beverages, further

providing for SALES BY LIQUOR LICENSEES AND RESTRICTIONS, FOR

interlocking business prohibited and for unlawful acts

relative to liquor, malt and brewed beverages and licensees.

RELATING TO LIQUOR AND ALCOHOL (NOT INCLUDING MANUFACTURERS),

FOR EXTENSION OF LICENSED SERVICE AREA AND ISSUANCE OF OFF-

PREMISES CATERING PERMITS, FOR MALT AND BREWED BEVERAGES

MANUFACTURERS', DISTRIBUTORS' AND IMPORTING DISTRIBUTORS'

LICENSES, FOR INTERLOCKING BUSINESS PROHIBITED RELATING TO

MALT AND BREWED BEVERAGES (INCLUDING MANUFACTURERS) AND FOR

PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY PROMOTION

BOARD, REPEALING PROVISIONS RELATING TO SURRENDER OF CLUB

LICENSES FOR BENEFIT OF LICENSEES AND FURTHER PROVIDING FOR

SURRENDER OF RESTAURANT, EATING PLACE RETAIL DISPENSER,

HOTEL, IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSE FOR

BENEFIT OF LICENSEE, FOR PENNSYLVANIA WINE MARKETING AND

RESEARCH PROGRAM BOARD, FOR UNLAWFUL ACTS RELATIVE TO MALT OR

BREWED BEVERAGES AND LICENSEES, FOR HOURS OF OPERATION

RELATIVE TO MANUFACTURERS, IMPORTING DISTRIBUTORS AND

DISTRIBUTORS, FOR UNLAWFUL ACTS RELATIVE TO LIQUOR, MALT AND

BREWED BEVERAGES AND LICENSEES AND FOR PREMISES TO BE VACATED

BY PATRONS; AND, IN DISTILLERIES, WINERIES, BONDED

WAREHOUSES, BAILEES FOR HIRE AND TRANSPORTERS FOR HIRE,

FURTHER PROVIDING FOR LIMITED DISTILLERIES AND DISTILLERIES

AND PROVIDING FOR PENNSYLVANIA DISTILLED SPIRITS INDUSTRY

PROMOTION BOARD.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 411(e.1) of the act of April 12, 1951

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

section is amended by adding a subsection to read:

SECTION 1. THE DEFINITION OF "ELIGIBLE ENTITY" IN SECTION

102 OF THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE

LIQUOR CODE, IS AMENDED 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:

* * *

"ELIGIBLE ENTITY" SHALL MEAN A CITY OF THE THIRD CLASS, A

HOSPITAL, A CHURCH, A SYNAGOGUE, A VOLUNTEER FIRE COMPANY, A

VOLUNTEER AMBULANCE COMPANY, A VOLUNTEER RESCUE SQUAD, A UNIT OF

A NATIONALLY CHARTERED CLUB WHICH HAS BEEN ISSUED A CLUB LIQUOR

LICENSE, A CLUB WHICH HAS BEEN ISSUED A CLUB LIQUOR LICENSE AND

WHICH, AS OF DECEMBER 31, 2002, HAS BEEN IN EXISTENCE FOR AT

LEAST 100 YEARS, A LIBRARY, A NATIONALLY ACCREDITED PENNSYLVANIA

NONPROFIT ZOOLOGICAL INSTITUTION LICENSED BY THE UNITED STATES

DEPARTMENT OF AGRICULTURE, A NONPROFIT AGRICULTURAL ASSOCIATION

IN EXISTENCE FOR AT LEAST TEN YEARS, A BONA FIDE SPORTSMEN'S

CLUB IN EXISTENCE FOR AT LEAST TEN YEARS, A NATIONALLY CHARTERED

A05284 - 2 -

VETERANS' ORGANIZATION AND ANY AFFILIATED LODGE OR SUBDIVISION

OF SUCH ORGANIZATION, A FRATERNAL BENEFIT SOCIETY THAT IS

LICENSED TO DO BUSINESS IN THIS COMMONWEALTH AND ANY AFFILIATED

LODGE OR SUBDIVISION OF SUCH FRATERNAL BENEFIT SOCIETY, ANY

NATIONALLY RECOGNIZED COMMUNITY-BASED VOLUNTARY HEALTH

ORGANIZATION COMMITTED TO FIGHTING CANCER, WHICH HAS BEEN IN

EXISTENCE FOR AT LEAST 100 YEARS, A MUSEUM OPERATED BY A

NONPROFIT CORPORATION, A NONPROFIT CORPORATION ENGAGED IN THE

PERFORMING ARTS, AN ARTS COUNCIL, A NONPROFIT CORPORATION THAT

OPERATES AN ARTS FACILITY OR MUSEUM, 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)) WHOSE PURPOSE IS

TO PROTECT THE ARCHITECTURAL HERITAGE OF A MUNICIPALITY AND

WHICH HAS BEEN RECOGNIZED AS SUCH BY A RESOLUTION OF THE

MUNICIPALITY, 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)) CONDUCTING A REGATTA IN A CITY OF

THE SECOND CLASS WITH THE PERMIT TO BE USED ON STATE PARK

GROUNDS OR CONDUCTING A FAMILY-ORIENTED CELEBRATION AS PART OF

WELCOME AMERICA IN A CITY OF THE FIRST CLASS ON PROPERTY LEASED

FROM THAT CITY FOR MORE THAN FIFTY YEARS, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 (26 U.S.C. § 501(C)(3)) WHOSE PURPOSE IS TO

RAISE FUNDS FOR THE RESEARCH AND TREATMENT OF CYSTIC FIBROSIS, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 (26 U.S.C. § 501(C)(3)) WHOSE

PURPOSE IS TO EDUCATE THE PUBLIC ON ISSUES DEALING WITH

WATERSHED CONSERVATION, 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)) WHOSE PURPOSE IS TO

A05284 - 3 -

PROVIDE EQUINE OR CANINE ASSISTED ACTIVITIES FOR CHILDREN AND

ADULTS WITH SPECIAL NEEDS, A NONPROFIT ECONOMIC DEVELOPMENT

AGENCY IN A CITY OF THE SECOND CLASS WITH THE PRIMARY FUNCTION

TO SERVE AS AN ECONOMIC GENERATOR FOR THE GREATER SOUTHWESTERN

PENNSYLVANIA REGION BY ATTRACTING AND SUPPORTING FILM,

TELEVISION AND RELATED MEDIA INDUSTRY PROJECTS AND COORDINATING

GOVERNMENT AND BUSINESS OFFICES IN SUPPORT OF A PRODUCTION, A

COUNTY TOURIST PROMOTION AGENCY AS DEFINED IN SECTION 2 OF THE

ACT OF JULY 4, 2008 (P.L.621, NO.50), KNOWN AS THE "TOURISM

PROMOTION ACT," A JUNIOR LEAGUE THAT IS A NONPROFIT ORGANIZATION

AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE

OF 1986 (26 U.S.C. § 501(C)(3)) THAT IS COMPRISED OF WOMEN WHOSE

PURPOSE IS EXCLUSIVELY EDUCATIONAL AND CHARITABLE IN PROMOTING

THE VOLUNTEERISM OF WOMEN AND DEVELOPING AND PARTICIPATING IN

COMMUNITY PROJECTS AND THAT HAS BEEN IN EXISTENCE FOR OVER

SEVENTY YEARS, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 AND WHOSE PURPOSE

IS THE EDUCATION AND PROMOTION OF AMERICAN HISTORY, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(6) OF THE INTERNAL

REVENUE CODE OF 1986 WHOSE PURPOSE IS TO SUPPORT BUSINESS AND

INDUSTRY, A BREWERY WHICH HAS BEEN ISSUED A LICENSE TO

MANUFACTURE MALT OR BREWED BEVERAGES AND HAS BEEN IN EXISTENCE

FOR AT LEAST 100 YEARS OR A CLUB RECOGNIZED BY ROTARY

INTERNATIONAL AND WHOSE PURPOSE IS TO PROVIDE SERVICE TO OTHERS,

TO PROMOTE HIGH ETHICAL STANDARDS AND TO ADVANCE WORLD

UNDERSTANDING, GOODWILL AND PEACE THROUGH ITS FELLOWSHIP OF

BUSINESS, PROFESSIONAL AND COMMUNITY LEADERS OR 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))

WHOSE PURPOSE IS TO PROMOTE MUSHROOMS WHILE SUPPORTING LOCAL AND

A05284 - 4 -

REGIONAL CHARITIES, A MUSEUM OPERATED BY A NOT-FOR-PROFIT

CORPORATION IN A CITY OF THE SECOND CLASS A, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 WHICH IS LOCATED IN A CITY OF THE SECOND

CLASS A AND HAS AS ITS PURPOSE ECONOMIC AND COMMUNITY

DEVELOPMENT, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OR (6) OF THE INTERNAL REVENUE CODE OF 1986 THAT IS

LOCATED IN A CITY OF THE THIRD CLASS IN A COUNTY OF THE FIFTH

CLASS, A NONPROFIT SOCIAL SERVICE ORGANIZATION DEFINED UNDER

SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 LOCATED

IN A COUNTY OF THE THIRD CLASS WHOSE PURPOSE IS TO SERVE

INDIVIDUALS AND FAMILIES IN THAT COUNTY OF THE THIRD CLASS, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 WHOSE MAIN PURPOSE IS TO

TEMPORARILY FOSTER STRAY AND UNWANTED ANIMALS AND MATCH THEM TO

SUITABLE PERMANENT HOMES OR A NONPROFIT ORGANIZATION AS DEFINED

UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 WHO

OPERATES EITHER A MAIN STREET PROGRAM OR ELM STREET PROGRAM

RECOGNIZED BY THE COMMONWEALTH, THE NATIONAL TRUST FOR HISTORIC

PRESERVATION OR BOTH, A NONPROFIT RADIO STATION THAT IS A MEMBER

OF THE NATIONAL PUBLIC RADIO NETWORK, A NONPROFIT PUBLIC

TELEVISION STATION THAT IS A MEMBER OF THE PENNSYLVANIA PUBLIC

TELEVISION NETWORK OR A NONPROFIT ORGANIZATION AS DEFINED UNDER

SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 WHOSE

PURPOSE IS TO PROMOTE AWARENESS, EDUCATION AND RESEARCH AND TO

PROVIDE A SUPPORT SYSTEM FOR PATIENTS WITH NEUTROPENIA AND THEIR

FAMILIES THROUGH A NATIONAL RESOURCE NETWORK, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 WHOSE MAIN PURPOSE IS TO STIMULATE

COMMUNITY DEVELOPMENT BY FACILITATING RESIDENTIAL AND RETAIL

A05284 - 5 -

GROWTH IN A CITY OF THE SECOND CLASS LOCATED IN A COUNTY OF THE

SECOND CLASS OR A NONPROFIT COMMUNITY DEVELOPMENT CORPORATION

ORGANIZED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE

OF 1986 THAT SERVES AN ADJOINING BOROUGH AND TOWNSHIP IN A

COUNTY OF THE SECOND CLASS AND WHOSE MAIN PURPOSE IS TO

FACILITATE COMMERCIAL DEVELOPMENT AND FOSTER NEIGHBORHOOD

STABILIZATION, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 WHOSE PURPOSE IS

TO PROVIDE YOUNG PEOPLE WITH A PROGRAM TO BUILD CHARACTER, TO

TEACH THE RESPONSIBILITIES OF CITIZENSHIP AND TO DEVELOP

PERSONAL FITNESS WITH A GOAL OF CREATING FUTURE LEADERS, A

NONPROFIT AS DEFINED IN SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 WHOSE MAIN PURPOSE IS TO ASSIST CHILDREN

AND THEIR FAMILIES WHO ARE FACING FINANCIAL HARDSHIP DUE TO THE

DEATH OF A PARENT, A NONPROFIT AS DEFINED UNDER SECTION 501(C)

(3) OF THE INTERNAL REVENUE CODE OF 1986 WHOSE PURPOSE IS TO

ALLOCATE FUNDS FOR RESEARCH TO EXPEDITE A CURE ACHROMATOPSIA, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 THAT IS LOCATED IN A CITY OF THE

FIRST CLASS, WAS ORGANIZED AS A COMMUNITY DEVELOPMENT

ORGANIZATION TO PROMOTE HEALTH, SAFETY AND WELFARE OF THE

RESIDENTS, BUSINESSES AND INSTITUTIONS OF A NEIGHBORHOOD OF A

CITY OF THE FIRST CLASS, AND WHOSE WORKS INCLUDE PUBLIC

PROMOTIONS, NEIGHBORHOOD IMPROVEMENT PROJECTS AND COMMERCIAL

CORRIDOR IMPROVEMENTS, INCLUDING A BUSINESS IMPROVEMENT

DISTRICT, OR A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 THAT IS

RESPONSIBLE FOR PROVIDING SERVICES TO MEMBERS OF THE ARMED

FORCES OF THE UNITED STATES AND RELIEF TO DISASTER VICTIMS IN

THE UNITED STATES AND ABROAD, OR ANY NEIGHBORHOOD IMPROVEMENT

A05284 - 6 -

DISTRICT MANAGEMENT ASSOCIATION AS DEFINED IN SECTION 3 OF THE

ACT OF DECEMBER 20, 2000 (P.L.949, NO.130), KNOWN AS THE

"NEIGHBORHOOD IMPROVEMENT DISTRICT ACT," THAT HAS BEEN

ESTABLISHED AS A 501(C)(3) NONPROFIT ORGANIZATION UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 LOCATED IN A CITY OF THE FIRST CLASS WHOSE

PURPOSE IS TO SUPPORT INITIATIVES TO ENRICH THE LIVES OF

CHILDREN, TEENS AND FAMILIES ESPECIALLY THOSE IN NEED, TO REACH

THEIR FULL POTENTIAL AS PRODUCTIVE AND RESPONSIBLE CITIZENS AND

HAS BEEN IN EXISTENCE FOR AT LEAST SEVENTY-FIVE YEARS, OR A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 LOCATED IN A CITY OF THE SECOND

CLASS AND INCORPORATED AS A NONPROFIT IN 1982 THAT OFFERS ADULT

EDUCATION AND FAMILY LITERACY, OR A NONPROFIT ORGANIZATION AS

DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF

1986 LOCATED IN A CITY OF THE THIRD CLASS AND COUNTY OF THE

SIXTH CLASS, WHOSE PURPOSE IS PRIMARY AND SECONDARY EDUCATION

AND EDUCATIONAL MINISTRY OF THE DIOCESE OF ERIE, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE LOCATED IN A COUNTY OF THE FOURTH CLASS THAT HAD A

POPULATION BETWEEN 142,000 AND 144,000 BASED ON THE 2010

DECENNIAL CENSUS OF THE BUREAU OF THE CENSUS AND PROVIDES

REWARDS FOR INFORMATION THAT LEADS TO THE ARREST OF INDIVIDUALS

THAT MAY HAVE COMMITTED A CRIME OR A NONPROFIT ORGANIZATION AS

DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF

1986 WHICH IS LOCATED IN A CITY OF THE THIRD CLASS IN A COUNTY

OF THE FIFTH CLASS WHOSE MISSION IS TO IMPROVE THE QUALITY OF

LIFE FOR INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES AND THE

FAMILIES OF THE INDIVIDUALS THROUGH ADVOCACY, EDUCATION, SUPPORT

A05284 - 7 -

AND SOCIALIZATION AND THAT HAS BEEN IN EXISTENCE FOR OVER SIXTY

YEARS.

* * *

SECTION 2. SECTION 305(B) OF THE ACT IS AMENDED 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. 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

A05284 - 8 -

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. IN ADDITION, THE BOARD SHALL ESTABLISH A

PROGRAM UNDER WHICH WHOLESALE LICENSES ARE PROVIDED A DISCOUNT

IF THE LICENSEE PICKS UP ITS PURCHASES AT BOARD-SPECIFIED

LOCATIONS, INCLUDING ITS WAREHOUSE. THE BOARD MAY SET WHATEVER

PARAMETERS THAT IT DEEMS APPROPRIATE, INCLUDING THE AMOUNT OF

THE DISCOUNT OR DISCOUNTS AND MINIMUM PURCHASE REQUIREMENTS.

* * *

SECTION 3. SECTIONS 406(G) AND 411(E.1) OF THE ACT ARE

AMENDED AND THE SECTIONS ARE AMENDED BY ADDING SUBSECTIONS TO

READ:

SECTION 406. SALES BY LIQUOR LICENSEES; RESTRICTIONS.--* * *

(G) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION

AND EXCEPT AS OTHERWISE PROVIDED, THE HOLDER OF A RETAIL LICENSE

MAY HOLD HAPPY HOURS UP TO FOUR CONSECUTIVE OR NONCONSECUTIVE

HOURS PER DAY AND UP TO [FOURTEEN] TWENTY-FOUR HOURS PER WEEK

DURING WHICH THE HOLDER DISCOUNTS THE PRICE OF ALCOHOLIC

BEVERAGES[.] AND FOOD AND ALCOHOL BEVERAGE COMBINATIONS.

DISCOUNTS MAY INCLUDE FOOD AND DRINK COMBINATION SPECIALS FOR NO

MORE THAN TWO COMBINATIONS ON ANY DAY. NO DISCOUNTS MAY BE GIVEN

BETWEEN THE HOURS OF MIDNIGHT AND THE LEGAL CLOSING TIME. NOTICE

OF ALL HAPPY HOURS SHALL BE VISIBLY POSTED ON THE LICENSED

PREMISES SEVEN DAYS PRIOR TO THE HAPPY HOUR. EXCEPT AS PROVIDED

IN THIS SUBSECTION, A LICENSEE SHALL COMPLY WITH THE PROVISIONS

OF 40 PA. CODE § 13.102 (RELATING TO DISCOUNT PRICING

PRACTICES). NEITHER EVENTS CONDUCTED UNDER THE AUTHORITY OF 40

A05284 - 9 -

PA. CODE § 13.102(B) NOR DISCOUNTS PROVIDED TO MUG CLUB MEMBERS

SHALL BE COUNTED AGAINST THE FOUR-HOUR PER DAY OR [FOURTEEN-

HOUR] TWENTY-FOUR-HOUR PER WEEK LIMIT.

* * *

(K) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR

REGULATION, A HOTEL, RESTAURANT OR CLUB LICENSEE THAT SELF-

SPONSORS AN EVENT MAY INCLUDE THE PRICE OF A DRINK NOT TO EXCEED

TWO ALCOHOLIC BEVERAGES IN THE COST OF THE TICKET, PROVIDED THE

EVENT IS SCHEDULED MORE THAN TWENTY-FOUR HOURS IN ADVANCE.

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

[(e.1) Nothing in subsection (e) shall prohibit any of the

following:

(1) A person who has an ownership interest in a limited

winery license from being employed by an entity that holds a

hotel, restaurant, eating place or club license if the person is

not employed as alcohol service personnel or as manager.

(2) A person who has an ownership interest in a brewery

license from being employed by an entity that holds a hotel,

restaurant, eating place or club license if the person has no

job duties or responsibilities on, or connected with, the

licensed premises in any capacity.]

* * *

(g) Nothing in this section shall prohibit a person who has

an ownership interest in a manufacturer from being employed by

an entity that holds a hotel, restaurant, eating place or club

license so long as the person is not employed as the manager or

as alcohol service personnel.

Section 2. Section 493(11) of the act is amended to read:

SECTION 4. SECTIONS 417(A.1) AND (A.3), 431(G)(2) AND 443(D)

OF THE ACT ARE AMENDED TO READ:

A05284 - 10 -

SECTION 417. EXTENSION OF LICENSED SERVICE AREA AND ISSUANCE

OF OFF-PREMISES CATERING PERMITS.--* * *

(A.1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE

FOLLOWING SHALL APPLY TO THE TEMPORARY EXTENSION OF THE LICENSED

PREMISES TO COVER AN OUTSIDE SERVING AREA:

(1) UPON RECEIPT OF A REQUEST FROM A LICENSED CLUB, CATERING

CLUB, RESTAURANT, RETAIL DISPENSER, HOTEL, LIMITED DISTILLERY,

DISTILLERY, BREWERY OR LIMITED WINERY, THE BOARD MAY TEMPORARILY

EXTEND THE LICENSED PREMISES OF THE APPLICANT TO INCLUDE ANY

OUTSIDE SERVING AREA THAT IS:

(I) IMMEDIATELY ADJACENT TO THE EXISTING LICENSED AREAS; OR

(II) WITHIN ONE THOUSAND FEET OF THE MAIN LICENSED BUILDING,

NOTWITHSTANDING THAT THE AREA TO BE TEMPORARILY LICENSED AND THE

MAIN LICENSED BUILDING ARE SEPARATED BY A PUBLIC THOROUGHFARE.

(2) THE BOARD SHALL GRANT IMMEDIATE OPERATING AUTHORITY TO

THE APPLICANT TO USE THE OUTSIDE AREA SUBJECT TO THE REQUEST

WHILE THE BOARD PROCESSES THE REQUEST.

(3) THE OPERATING AUTHORITY UNDER THIS SUBSECTION SHALL BE

TERMINATED IF:

(I) A VALID PROTEST IS RECEIVED; OR

(II) THE BOARD DETERMINES THAT THE PROPOSED AREA DOES NOT

MEET THE REQUIREMENTS OF THIS ACT AND BOARD REGULATIONS FOR THE

LICENSING OF THE AREA IN QUESTION.

(4) A FILING FEE MAY [NOT] BE REQUIRED FROM AN APPLICANT

UNDER THIS SUBSECTION.

(5) THE BOARD MAY REQUIRE THE APPLICANT TO PROVIDE ANY

INFORMATION THAT THE BOARD DEEMS RELEVANT.

(6) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION,

TEMPORARY EXTENSIONS OF LICENSED PREMISES AUTHORIZED BY THIS

SUBSECTION SHALL REMAIN VALID FOR THE REMAINDER OF THE

A05284 - 11 -

VALIDATION OR RENEWAL PERIOD DURING WHICH THE APPLICATION IS

FILED.

(7) TEMPORARY EXTENSIONS OF LICENSED PREMISES AUTHORIZED BY

THIS SUBSECTION MAY BE RENEWED AT THE EXPIRATION OF THE

VALIDATION OR RENEWAL PERIOD, SUBJECT TO THE FILING OF AN

APPLICATION AND PAYMENT OF A FILING FEE AS MAY BE REQUIRED BY

THE BOARD.

(8) AS USED IN THIS SUBSECTION, THE TERM "VALIDATION OR

RENEWAL PERIOD" SHALL MEAN THE VALIDATION OR RENEWAL PERIOD FOR

THE UNDERLYING LICENSE HELD BY THE APPLICANT.

* * *

(A.3) [SUBSECTIONS (A.1) AND (A.2)] SUBSECTION (A.2) SHALL

EXPIRE DECEMBER 31, 2024.

* * *

SECTION 431. MALT AND BREWED BEVERAGES MANUFACTURERS',

DISTRIBUTORS' AND IMPORTING DISTRIBUTORS' LICENSES.--* * *

(G) * * *

(2) FOR THE PURPOSES OF THIS SUBSECTION, "NONALCOHOLIC MALT

OR BREWED BEVERAGE" MEANS ANY BEVERAGE INTENDED TO BE MARKETED

OR SOLD AS NONALCOHOLIC BEER HAVING AT LEAST A TRACE AMOUNT OF

ALCOHOL CONTENT BUT WHICH DOES NOT CONTAIN ONE-HALF OF ONE PER

CENTUM (0.5%) OR MORE ALCOHOL BY VOLUME[.] AND SHALL INCLUDE A

BEVERAGE THAT, DURING PRODUCTION, HAD THE ALCOHOL BY VOLUME

LEVEL OF A MALT OR BREWED BEVERAGE STATED IN SECTION 102, BUT

THE BEVERAGE ALCOHOL LEVEL WAS REDUCED DURING FURTHER PRODUCTION

BELOW ONE-HALF OF ONE PER CENTUM (0.5%) ALCOHOL BY VOLUME.

SECTION 443. INTERLOCKING BUSINESS PROHIBITED.--* * *

(D) EXCEPTING AS HEREINAFTER PROVIDED, NO MALT OR BREWED

BEVERAGE MANUFACTURER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR

SHALL IN ANY WISE BE INTERESTED, EITHER DIRECTLY OR INDIRECTLY,

A05284 - 12 -

IN THE OWNERSHIP OR LEASEHOLD OF ANY PROPERTY OR IN ANY MORTGAGE

AGAINST THE SAME, FOR WHICH A LIQUOR OR RETAIL DISPENSER'S

LICENSE IS GRANTED; NOR SHALL ANY SUCH MANUFACTURER, IMPORTING

DISTRIBUTOR OR DISTRIBUTOR, EITHER DIRECTLY OR INDIRECTLY, LEND

ANY MONEYS, CREDIT OR EQUIVALENT THEREOF TO, OR GUARANTEE THE

PAYMENT OF ANY BOND, MORTGAGE, NOTE OR OTHER OBLIGATION OF, ANY

LIQUOR LICENSEE OR RETAIL DISPENSER, IN EQUIPPING, FITTING OUT,

OR MAINTAINING AND CONDUCTING, EITHER IN WHOLE OR IN PART, AN

ESTABLISHMENT OR BUSINESS OPERATED UNDER A LIQUOR OR RETAIL

DISPENSER'S LICENSE, EXCEPTING ONLY THE USUAL AND CUSTOMARY

CREDITS ALLOWED FOR RETURNING ORIGINAL CONTAINERS IN WHICH MALT

OR BREWED BEVERAGES WERE PACKAGED FOR MARKET BY THE MANUFACTURER

AT THE PLACE OF MANUFACTURE: PROVIDED, HOWEVER, THAT A HOLDER OF

A MANUFACTURER'S LICENSE UNDER SECTION 431(A) WHO IS ELIGIBLE TO

OPERATE A BREWERY PUB UNDER SECTION 446(2) OR A LIMITED WINERY

AS PROVIDED FOR UNDER SECTION 505.2 MAY ALSO HOLD AND OPERATE

UNDER A HOTEL LIQUOR LICENSE, A RESTAURANT LIQUOR LICENSE OR A

MALT AND BREWED BEVERAGES RETAIL LICENSE ON THE MANUFACTURER'S

OR LIMITED WINERY'S LICENSED PREMISES. THE HOTEL LIQUOR LICENSE

OR RESTAURANT LIQUOR LICENSE OR THE MALT AND BREWED BEVERAGES

RETAIL LICENSE SHALL BE ACQUIRED BY THE MANUFACTURER OR LIMITED

WINERY SUBJECT TO SECTION 461 AND SHALL SATISFY ALL REQUIREMENTS

FOR EACH RESPECTIVE LICENSE. NOTWITHSTANDING ANY OTHER PROVISION

OF THIS SECTION, NOTHING SHALL PRECLUDE AN IMPORTING DISTRIBUTOR

OR DISTRIBUTOR FROM SELLING OR RENTING ITEMS TO OTHER LICENSEES

AT FAIR MARKET VALUE AS OTHERWISE AUTHORIZED BY THIS ACT.

SECTION 5. SECTION 446.1(E)(1) INTRODUCTORY PARAGRAPH AND

(F) OF THE ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING

A SUBSECTION TO READ:

SECTION 446.1. PENNSYLVANIA MALT AND BREWED BEVERAGES

A05284 - 13 -

INDUSTRY PROMOTION BOARD.--* * *

(E) THE PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY

PROMOTION BOARD HAS THE FOLLOWING POWERS AND DUTIES:

(1) MAKE RECOMMENDATIONS TO THE [BOARD] SECRETARY OF

AGRICULTURE TO AWARD GRANTS TO ENTITIES FOR THE PURPOSE OF

INCREASING THE PRODUCTION OF PENNSYLVANIA-MADE MALT AND BREWED

BEVERAGES AND ENHANCING THE PENNSYLVANIA MALT AND BREWED

BEVERAGES INDUSTRY THROUGH PROMOTION, MARKETING AND RESEARCH-

BASED PROGRAMS AND PROJECTS. GRANTS SHALL BE AWARDED THROUGH A

COMPETITIVE GRANT REVIEW PROCESS. THE APPLICATION FOR A GRANT

SHALL INCLUDE THE FOLLOWING INFORMATION:

* * *

(F) THE DEPARTMENT OF AGRICULTURE SHALL PROVIDE ASSISTANCE

TO [ASSIST] THE PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY

PROMOTION BOARD IN CARRYING OUT ITS POWERS AND DUTIES. FINAL

DECISIONS FOR AWARDING GRANTS UNDER SUBSECTION (E)(1) SHALL BE

MADE BY THE SECRETARY OF AGRICULTURE.

* * *

(H) THE BOARD SHALL TRANSFER THE ANNUAL ALLOCATION

AUTHORIZED UNDER THIS SECTION TO THE PENNSYLVANIA MALT AND

BREWED BEVERAGES INDUSTRY PROMOTION BOARD ACCOUNT. THE

PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY PROMOTION BOARD

SHALL ALLOCATE MONEY UNDER THIS SUBSECTION FOR THE PURPOSE OF

AWARDING GRANTS UNDER SUBSECTION (E)(1). THE FOLLOWING SHALL

APPLY:

(1) THE PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY

PROMOTION BOARD MAY DEDUCT MONEY FROM THE ALLOCATION UNDER THIS

SUBSECTION TO COVER THE DEPARTMENT OF AGRICULTURE'S EXPENSES IN

ASSISTING THE PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY

PROMOTION BOARD.

A05284 - 14 -

(2) IN ANY FISCAL YEAR WHEN GRANT MONEY AUTHORIZED UNDER

THIS SECTION REMAINS UNALLOCATED, THE REMAINING AMOUNT OF MONEY

SHALL BE MADE AVAILABLE FOR GRANTS IN SUBSEQUENT FISCAL YEARS.

(3) NOTWITHSTANDING ANY PROVISION OF LAW, ALL OF THE

OBLIGATIONS OF THE BOARD UNDER THIS SECTION ARE FULFILLED BY

VIRTUE OF THE TRANSFER OF THE ANNUAL ALLOCATION UNDER THIS

SUBSECTION TO THE PENNSYLVANIA MALT AND BREWED BEVERAGES

INDUSTRY PROMOTION BOARD.

SECTION 6. SECTION 474 OF THE ACT IS REPEALED:

[SECTION 474. SURRENDER OF CLUB LICENSES FOR BENEFIT OF

LICENSEES.--WHENEVER A CLUB LICENSE HAS BEEN RETURNED TO THE

BOARD FOR THE BENEFIT OF THE LICENSEE DUE TO THE LICENSED

ESTABLISHMENT NOT HAVING BEEN IN OPERATION FOR ANY REASON

WHATSOEVER FOR A PERIOD OF TIME NOT EXCEEDING FIFTEEN DAYS, THE

LICENSE SHALL BE HELD BY THE BOARD FOR THE BENEFIT OF THE

LICENSEE FOR A PERIOD OF TIME NOT EXCEEDING ONE YEAR, OR, UPON

PROPER APPLICATION TO THE BOARD, FOR AN ADDITIONAL YEAR, AND THE

LICENSE SHALL BE REVOKED AT THE TERMINATION OF THE PERIOD, AND

TRANSFER OF THE LICENSE SHALL NOT BE PERMITTED AFTER THE

TERMINATION OF THE PERIOD.]

SECTION 7. SECTION 474.1 HEADING, (A) AND (G) OF THE ACT ARE

AMENDED TO READ:

SECTION 474.1. SURRENDER OF RESTAURANT, EATING PLACE RETAIL

DISPENSER, HOTEL, CLUB, CATERING CLUB, IMPORTING DISTRIBUTOR AND

DISTRIBUTOR LICENSE FOR BENEFIT OF LICENSEE.--(A) A RESTAURANT,

EATING PLACE RETAIL DISPENSER, HOTEL, CLUB, CATERING CLUB,

IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSEE WHOSE LICENSED

ESTABLISHMENT IS NOT IN OPERATION FOR FIFTEEN CONSECUTIVE DAYS

SHALL RETURN ITS LICENSE FOR SAFEKEEPING WITH THE BOARD NO LATER

THAN AT THE EXPIRATION OF THE FIFTEEN-DAY PERIOD. THE LICENSE

A05284 - 15 -

MAY ONLY BE REISSUED FROM SAFEKEEPING IN THE MANNER SET FORTH BY

THE BOARD THROUGH REGULATION.

* * *

(G) (1) A LICENSEE WHOSE LICENSE IS SUBJECT TO THIS SECTION

MAY, UPON WRITTEN REQUEST, APPLY TO THE BOARD TO ALLOW THE

LICENSE TO REMAIN IN SAFEKEEPING FOR AN ADDITIONAL ONE YEAR. THE

WRITTEN REQUEST MUST BE ACCOMPANIED BY A TEN THOUSAND DOLLAR

($10,000) FEE FOR LICENSES PLACED IN SAFEKEEPING FROM COUNTIES

OF THE FIRST CLASS, SECOND CLASS, SECOND CLASS A, THIRD CLASS

AND FOURTH CLASS AND A FEE OF FIVE THOUSAND DOLLARS ($5,000) FOR

LICENSES PLACED IN SAFEKEEPING FROM COUNTIES OF THE FIFTH

THROUGH EIGHTH CLASSES[.], EXCEPT THAT THE FEES FOR CLUBS AND

CATERING CLUBS SHALL BE FIVE THOUSAND DOLLARS ($5,000) FOR

LICENSES PLACED IN SAFEKEEPING FROM COUNTIES OF THE FIRST CLASS,

SECOND CLASS, SECOND CLASS A, THIRD CLASS AND FOURTH CLASS AND

ONE THOUSAND DOLLARS ($1,000) FOR LICENSES PLACED IN SAFEKEEPING

FROM COUNTIES OF THE FIFTH THROUGH EIGHTH CLASSES. FOR EACH

SUBSEQUENT YEAR IN SAFEKEEPING, THE FEES SET FORTH IN THIS

PARAGRAPH SHALL BE DOUBLED OVER THE AMOUNT CHARGED FOR THE

PREVIOUS YEAR'S FEE. NO FEE SHALL BE REQUIRED IF THE LICENSEE

CAN PROVE THAT HE OR SHE IS UNABLE TO USE THE LICENSE THROUGH NO

FAULT OF HIS OR HER OWN, INCLUDING A FIRE, FLOOD OR OTHER EVENT,

WHICH INCLUDES THE INABILITY TO OBTAIN AN OCCUPANCY PERMIT FOR

THE LICENSED PREMISES FROM A MUNICIPALITY, THAT RENDERS THE

LICENSED PREMISES UNUSABLE. FACTORS SUCH AS ANOTHER BUSINESS

OPERATING AT THE LICENSED PREMISES, THE LICENSED BUSINESS BEING

NO LONGER VIABLE OR OTHER SIMILAR CIRCUMSTANCES SHALL NOT

JUSTIFY A FEE WAIVER. THE BOARD SHALL APPROVE THE REQUEST UNLESS

THE LICENSE OR LICENSEE NO LONGER MEETS THE REQUIREMENTS OF THIS

ACT OR THE BOARD'S REGULATIONS. THE FEE COLLECTED SHALL BE PAID

A05284 - 16 -

INTO THE STATE TREASURY THROUGH THE DEPARTMENT OF REVENUE INTO

THE STATE STORE FUND.

(2) (RESERVED).

SECTION 8. SECTION 488.1(D)(3)(I) OF THE ACT IS AMENDED AND

THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 488.1. PENNSYLVANIA WINE MARKETING AND RESEARCH

PROGRAM BOARD.--* * *

(D) IN ADDITION TO DUTIES IMPOSED UNDER OTHER LAWS, THE

PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM BOARD SHALL DO

ALL OF THE FOLLOWING:

* * *

(3) HAVE THE FOLLOWING DUTIES AS TO AWARDING GRANTS:

(I) MAKE RECOMMENDATIONS TO THE [BOARD] SECRETARY OF

AGRICULTURE TO AWARD GRANTS TO ENTITIES FOR THE PURPOSE OF

INCREASING THE PRODUCTION OF PENNSYLVANIA-MADE WINES AND

ENHANCING THE PENNSYLVANIA WINE INDUSTRY THROUGH PROMOTION,

MARKETING AND RESEARCH-BASED PROGRAMS AND PROJECTS.

* * *

(E) THE DEPARTMENT OF AGRICULTURE SHALL PROVIDE ASSISTANCE

TO THE PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM BOARD IN

CARRYING OUT ITS POWERS AND DUTIES. FINAL DECISIONS FOR AWARDING

GRANTS UNDER SUBSECTION (D)(3) SHALL BE MADE BY THE SECRETARY OF

AGRICULTURE.

(F) (RESERVED).

(G) ANNUALLY, THE BOARD SHALL ALLOCATE THE AMOUNT OF ONE

MILLION DOLLARS ($1,000,000), AS REQUIRED BY SECTION 488(K), FOR

THE PURPOSE OF AWARDING GRANTS UNDER SUBSECTION (D)(3).

(H) THE BOARD SHALL TRANSFER THE ALLOCATION UNDER SUBSECTION

(G) TO THE PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM

BOARD ACCOUNT. THE PENNSYLVANIA WINE MARKETING AND RESEARCH

A05284 - 17 -

PROGRAM BOARD SHALL ALLOCATE MONEY FOR THE PURPOSE OF AWARDING

GRANTS UNDER SUBSECTION (D)(3). THE FOLLOWING SHALL APPLY:

(1) THE PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM

BOARD MAY DEDUCT MONEY FROM THE ALLOCATION UNDER SUBSECTION (G)

TO COVER THE DEPARTMENT OF AGRICULTURE'S EXPENSES IN ASSISTING

THE PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM BOARD.

(2) IN ANY FISCAL YEAR WHEN GRANT MONEY AUTHORIZED UNDER

THIS SECTION REMAINS UNALLOCATED, THE REMAINING AMOUNT OF MONEY

SHALL BE MADE AVAILABLE FOR GRANTS IN SUBSEQUENT FISCAL YEARS.

(3) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,

ALL OF THE BOARD'S OBLIGATIONS UNDER THIS SECTION AND SECTION

488(K) ARE FULFILLED BY VIRTUE OF THE TRANSFER OF THE ALLOCATION

UNDER SUBSECTION (G) TO THE PENNSYLVANIA WINE MARKETING AND

RESEARCH PROGRAM BOARD.

SECTION 9. SECTIONS 492(12) AND 492.1(A) OF THE ACT ARE

AMENDED TO READ:

SECTION 492. UNLAWFUL ACTS RELATIVE TO MALT OR BREWED

BEVERAGES AND LICENSEES.--

IT SHALL BE UNLAWFUL--

* * *

(12) DISTRIBUTORS AND IMPORTING DISTRIBUTORS ENGAGING IN

OTHER BUSINESS. FOR ANY DISTRIBUTOR OR IMPORTING DISTRIBUTOR, OR

HIS SERVANTS, AGENTS OR EMPLOYES, WITHOUT THE APPROVAL OF THE

BOARD, AND THEN ONLY IN ACCORDANCE WITH BOARD REGULATIONS, TO

ENGAGE IN ANY OTHER BUSINESS WHATSOEVER, EXCEPT THE BUSINESS OF

DISTRIBUTING MALT OR BREWED BEVERAGES, EXCEPT THAT [THE SALE OF]

THE FOLLOWING [GOODS] SHALL BE EXPRESSLY PERMITTED ON THE

LICENSED PREMISES OF A DISTRIBUTOR OR IMPORTING DISTRIBUTOR:

(I) [ANY] THE SALE OF ANY BOOK, MAGAZINE OR OTHER

PUBLICATION RELATED TO MALT OR BREWED BEVERAGES.

A05284 - 18 -

(II) [ANY] THE SALE OF ANY EQUIPMENT, INGREDIENTS OR OTHER

SUPPLIES NECESSARY FOR THE UNLICENSED MANUFACTURE OF MALT OR

BREWED BEVERAGES AS DESCRIBED IN PARAGRAPH (1), COMMONLY KNOWN

AS "HOMEBREWING."

(III) THE RENTAL OF EQUIPMENT AND SUPPLIES NECESSARY TO

DISPENSE DRAFT BEER, AS MAY BE FURTHER DEFINED BY THE BOARD.

* * *

SECTION 492.1. HOURS OF OPERATION RELATIVE TO MANUFACTURERS,

IMPORTING DISTRIBUTORS AND DISTRIBUTORS.--(A) (1)

[MANUFACTURERS] EXCEPT AS OTHERWISE PROVIDED, MANUFACTURERS MAY

SELL OR DELIVER MALT OR BREWED BEVERAGES BETWEEN TWO O'CLOCK

ANTEMERIDIAN OF ANY MONDAY AND TWELVE O'CLOCK MIDNIGHT OF THE

FOLLOWING SATURDAY. MANUFACTURERS MAY OPERATE EXTENDED HOURS ON

DECEMBER 31 OF EACH CALENDAR YEAR UNTIL TWO O'CLOCK ANTEMERIDIAN

JANUARY 1 OF THE FOLLOWING CALENDAR YEAR.

(2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,

MANUFACTURERS MAY SELL MALT AND BREWED BEVERAGES AND ALCOHOL

SUBJECT TO SECTION 446(A)(2) FOR ON-PREMISES CONSUMPTION BETWEEN

THE HOURS OF NINE O'CLOCK ANTEMERIDIAN AND TWELVE O'CLOCK

ANTEMERIDIAN MONDAY THROUGH SATURDAY AND SUNDAY BETWEEN THE

HOURS OF NINE O'CLOCK ANTEMERIDIAN AND ELEVEN O'CLOCK

POSTMERIDIAN. MANUFACTURERS MAY OPERATE EXTENDED HOURS ON

DECEMBER 31 OF EACH CALENDAR YEAR UNTIL TWO O'CLOCK ANTEMERIDIAN

JANUARY 1 OF THE FOLLOWING CALENDAR YEAR.

(3) THE BOARD MAY ISSUE A MANUFACTURER AN EXTENDED HOURS

PERMIT PERMITTING THE MANUFACTURER TO REMAIN OPEN AND SELL

ALCOHOL UNTIL TWO O'CLOCK ANTEMERIDIAN THE FOLLOWING CALENDAR

DAY. FOLLOWING A FIFTY-DOLLAR ($50) FEE, A MANUFACTURER MUST

SUBMIT A WRITTEN APPLICATION FOR AN EXTENDED HOURS PERMIT UNDER

THIS PARAGRAPH TO THE BOARD IN A FORM PRESCRIBED BY THE BOARD.

A05284 - 19 -

THE FOLLOWING SHALL APPLY:

(I) ONLY ONE MANUFACTURER EXTENDED HOURS PERMIT MAY BE

ISSUED TO A MANUFACTURER PER CALENDAR YEAR AND MAY ONLY BE USED

FOR ONE DAY IN THAT CALENDAR YEAR AT ALL THE MANUFACTURER'S

LOCATIONS.

(II) THE MANUFACTURER SHALL PROVIDE WRITTEN NOTICE TO THE

LOCAL POLICE DEPARTMENT, OR PENNSYLVANIA STATE POLICE IF NO

LOCAL POLICE DEPARTMENT IS AVAILABLE, AT LEAST FORTY-EIGHT HOURS

PRIOR TO EACH USE OF THE MANUFACTURER EXTENDED HOURS PERMIT.

WRITTEN NOTICE SHALL INCLUDE NOTIFYING THE POLICE OF THE DATE,

TIME AND PLACE OF THE EXTENDED SALE OF ALCOHOLIC BEVERAGES.

* * *

SECTION 10. SECTION 493(11), (17), (20)(I) AND (24) OF THE

ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A CLAUSE TO

READ:

Section 493. Unlawful Acts Relative to Liquor, Malt and

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

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(11) Licensees Employed by Others. For any hotel, restaurant

or club liquor licensee, or any malt or brewed beverage

licensee, or any officer[, servant, agent or employe] or manager

of such licensee, to be at the same time employed, directly or

indirectly, by any distributor, importing distributor,

manufacturer, importer or vendor licensee or any out of State

manufacturer. It shall also be unlawful for any distributor or

importing distributor, or any officer[, servant, agent or

A05284 - 20 -

employe] or manager of such licensee, to be at the same time

employed, directly or indirectly, by any other distributor,

importing distributor, manufacturer, importer, vendor, out of

State manufacturer, hotel, restaurant, malt or brewed beverage

licensee, or club liquor licensee. [It] Except as provided under

section 411(g), it shall also be unlawful for any manufacturer,

importer, or vendor licensee, or any out of State manufacturer,

or any officer[, servant, agent or employe] or manager of such

licensee or manufacturer, to be at the same time employed,

directly or indirectly, by any hotel, restaurant or club liquor

licensee or any malt or brewed beverage licensee [or any

distributor or importing distributor licensee]. Nothing in this

subsection shall be construed to prohibit a manufacturer [or

limited winery] licensee, or any officer[, servant, agent or

employe] or manager of such licensee, to be employed at the same

time by a hotel, restaurant or retail dispenser licensee if the

hotel, restaurant or retail dispenser licensee is located at the

manufacturer [or limited winery] premises pursuant to section

443. For the purposes of this subsection, an officer[, servant,

agent or employe] or manager of a licensee or manufacturer is an

individual who has either an ownership interest in the licensee

or manufacturer or [who receives compensation for his or her

work on behalf of the licensee or manufacturer: Provided

further, That nothing in this section shall prohibit a person

who has an ownership interest in a limited winery license from

being employed by an entity that holds a hotel, restaurant,

eating place or club license if the person is not employed as

alcohol service personnel or as a manager: And, provided

further, That nothing in this section shall prohibit a person

who has an ownership interest in a brewery license from being

A05284 - 21 -

employed by an entity that holds a hotel, restaurant, eating

place or club license if the person has no job duties or

responsibilities on, or connected with, the licensed premises in

any capacity.] has been approved as the licensee's manager by

the board.

* * *

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

(17) LICENSEES, ETC., INTERESTED OR EMPLOYED IN

MANUFACTURING OR SALE OF EQUIPMENT OR FIXTURES. FOR ANY

LICENSEE, OR ANY OFFICER, DIRECTOR, STOCKHOLDER, SERVANT, AGENT

OR EMPLOYE OF ANY LICENSEE, TO OWN ANY INTEREST, DIRECTLY OR

INDIRECTLY, IN OR BE EMPLOYED OR ENGAGED IN ANY BUSINESS WHICH

INVOLVES THE MANUFACTURE OR SALE OF ANY EQUIPMENT, FURNISHINGS

OR FIXTURES TO ANY HOTEL, RESTAURANT OR CLUB LICENSEES, OR TO

ANY IMPORTING DISTRIBUTORS, DISTRIBUTORS OR RETAIL DISPENSERS.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OR THIS ACT,

LICENSEES MAY SELL GLASSES AT NOT LESS THAN COST AND TO PROVIDE

METAL KEG CONNECTORS AND TAP KNOBS TO OTHER LICENSEES AND TO

HOLDERS OF SPECIAL OCCASION PERMITS. ADDITIONALLY,

NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OR ACT,

IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSEES MAY RENT ALL

EQUIPMENT AND SUPPLIES NECESSARY TO DISPENSE DRAFT BEER, AS MAY

BE FURTHER DEFINED BY THE BOARD, TO OTHER LICENSEES.

* * *

(20) (I) RETAIL LIQUOR AND RETAIL MALT OR BREWED BEVERAGES

LICENSEE'S INSIDE ADVERTISEMENTS. FOR ANY RETAIL LIQUOR OR

RETAIL MALT OR BREWED BEVERAGES LICENSEE, TO DISPLAY OR PERMIT

THE DISPLAY IN THE SHOW WINDOW OR DOORWAYS OF HIS LICENSED

PREMISES, ANY PLACARD OR SIGN ADVERTISING THE BRANDS OF LIQUOR

OR MALT OR BREWED BEVERAGES, IF THE TOTAL DISPLAY AREA OF ANY

A05284 - 22 -

SUCH PLACARD OR SIGN ADVERTISING THE PRODUCT OR PRODUCTS EXCEEDS

SIX HUNDRED SQUARE INCHES. NOTHING HEREIN SHALL PROHIBIT A

LICENSEE FROM DISPLAYING INSIDE HIS LICENSED PREMISES POINT OF

SALE DISPLAYS ADVERTISING BRAND NAMES OF PRODUCTS SOLD BY HIM,

OTHER THAN A WINDOW OR DOOR DISPLAY: PROVIDED, THAT THE TOTAL

COST OF ALL SUCH POINT OF SALE ADVERTISING MATTER RELATING TO

ANY ONE BRAND SHALL NOT EXCEED [THE DOLLAR AMOUNT SET FORTH BY

THE BOARD THROUGH REGULATION] SEVEN HUNDRED-FIFTY DOLLARS

($750). ALL SUCH ADVERTISING MATERIAL, INCLUDING THE WINDOW AND

DOOR SIGNS, MAY BE FURNISHED BY A MANUFACTURER, DISTRIBUTOR OR

IMPORTING DISTRIBUTOR. THE RESTRICTIONS ON ADVERTISING SET FORTH

IN SUBCLAUSE (II) AND IN CLAUSES (20.1) AND (20.2) SHALL ALSO

APPLY TO THIS SUBCLAUSE.

* * *

(24) (I) THINGS OF VALUE OFFERED AS INDUCEMENT. EXCEPT AS

PROVIDED IN SUBCLAUSES (II) [AND (III)], (III), (IV) AND , (V)

and (vi), FOR ANY LICENSEE UNDER THE PROVISIONS OF THIS ARTICLE,

OR THE BOARD OR ANY MANUFACTURER, OR ANY EMPLOYE OR AGENT OF A

MANUFACTURER, LICENSEE OR OF THE BOARD, TO OFFER TO GIVE

ANYTHING OF VALUE OR TO SOLICIT OR RECEIVE ANYTHING OF VALUE AS

A PREMIUM FOR THE RETURN OF CAPS, STOPPERS, CORKS, STAMPS OR

LABELS TAKEN FROM ANY BOTTLE, CASE, BARREL OR PACKAGE CONTAINING

LIQUOR OR MALT OR BREWED BEVERAGE, OR TO OFFER OR GIVE OR

SOLICIT OR RECEIVE ANYTHING OF VALUE AS A PREMIUM OR PRESENT TO

INDUCE DIRECTLY THE PURCHASE OF LIQUOR OR MALT OR BREWED

BEVERAGE, OR FOR ANY LICENSEE, MANUFACTURER OR OTHER PERSON TO

OFFER OR GIVE TO TRADE OR CONSUMER BUYERS ANY PRIZE, PREMIUM,

GIFT OR OTHER INDUCEMENT TO PURCHASE LIQUOR OR MALT OR BREWED

BEVERAGES, EXCEPT ADVERTISING NOVELTIES OF NOMINAL VALUE WHICH

THE BOARD SHALL DEFINE. THIS SECTION SHALL NOT PREVENT ANY

A05284 - 23 -

MANUFACTURER OR ANY AGENT OF A MANUFACTURER FROM OFFERING AND

HONORING COUPONS WHICH OFFER MONETARY REBATES ON PURCHASES OF

WINES AND SPIRITS THROUGH STATE LIQUOR STORES OR PURCHASES OF

MALT OR BREWED BEVERAGES THROUGH DISTRIBUTORS AND IMPORTING

DISTRIBUTORS IN ACCORDANCE WITH CONDITIONS OR REGULATIONS

ESTABLISHED BY THE BOARD. THE BOARD MAY REDEEM COUPONS OFFERED

BY A MANUFACTURER OR AN AGENT OF A MANUFACTURER AT THE TIME OF

PURCHASE. COUPONS OFFERED BY A MANUFACTURER OR AN AGENT OF A

MANUFACTURER SHALL NOT BE REDEEMED WITHOUT PROOF OF PURCHASE.

THIS SECTION SHALL NOT APPLY TO THE RETURN OF ANY MONIES

SPECIFICALLY DEPOSITED FOR THE RETURN OF THE ORIGINAL CONTAINER

TO THE OWNERS THEREOF.

(II) NOTWITHSTANDING SUBCLAUSE (I) OR ANY OTHER PROVISION OF

LAW:

(A) A HOLDER OF A RESTAURANT LICENSE THAT IS ALSO APPROVED

TO HOLD A SLOT MACHINE LICENSE OR A CONDITIONAL SLOT MACHINE

LICENSE UNDER 4 PA.C.S. PART II (RELATING TO GAMING) MAY GIVE

LIQUOR AND MALT OR BREWED BEVERAGES FREE OF CHARGE TO ANY PERSON

ACTIVELY ENGAGED IN PLAYING A SLOT MACHINE.

(B) THE BOARD MAY ESTABLISH AND IMPLEMENT A CUSTOMER

RELATIONS MANAGEMENT PROGRAM FOR THE PURPOSE OF OFFERING TO

UNLICENSED CUSTOMERS OF THE BOARD INCENTIVES, SUCH AS COUPONS OR

DISCOUNTS ON CERTAIN PRODUCTS, WHICH MAY BE CONDITIONED ON THE

PURCHASE OF LIQUOR.

(III) NOTWITHSTANDING SUBCLAUSE (I) OR ANY OTHER PROVISION

OF LAW, A RETAIL LICENSEE OR A BREWERY MAY OFFER A MUG CLUB TO

ITS PATRONS.

(IV) NOTWITHSTANDING SUBCLAUSE (I) OR ANY OTHER PROVISION OF

LAW, A DISTRIBUTOR OR IMPORTING DISTRIBUTOR MAY OFFER AND

ADVERTISE QUANTITY DISCOUNTS ON THE PURCHASE OF MALT OR BREWED

A05284 - 24 -

BEVERAGES.

(V) NOTWITHSTANDING SUBCLAUSE (I) OR ANY OTHER PROVISION OF

LAW, A MANUFACTURER OR LICENSEE OF THE BOARD MAY PROVIDE A TRADE

BUYER WITH POINT-OF-SALE ADVERTISING FOR LIQUOR OR MALT OR

BREWED BEVERAGE PRODUCTS BEING SOLD BY THE MANUFACTURER OR

LICENSEE, SUBJECT TO THE LIMITS SPECIFIED IN CLAUSE (20)(I).

(vi) Notwithstanding subclause (i) or any other provision of

law, a limited winery may offer to nonlicensees discounted

pricing on products that the limited winery may sell for off-

premises consumption and may condition the pricing on the

purchase of a specific amount of alcohol.

* * *

(35) DISPLAY OF NONALCOHOLIC BEVERAGES. FOR ANY CLASS OF

LICENSEE TO PLACE ANY ALCOHOLIC BEVERAGE WHICH THEY ARE

PERMITTED TO SELL UNDER THE SPECIFIC AUTHORITY OF THE LICENSE OR

PERMIT THEY HOLD IN AN AREA IMMEDIATELY ADJACENT TO WHERE

NONALCOHOLIC BEVERAGES CONTAINING THE SAME OR SIMILAR BRAND

NAME, LOGO OR PACKAGING AS THE ALCOHOLIC BEVERAGE ARE BEING

DISPLAYED WITHOUT POSTING CLEAR AND DISTINCT SIGNAGE IDENTIFYING

WHICH PRODUCTS ARE ALCOHOLIC PRODUCTS AND WHICH ARE

NONALCOHOLIC. FOR PURPOSES OF THIS CLAUSE, THE TERM

"NONALCOHOLIC BEVERAGES" SHALL MEAN ANY BEVERAGE INTENDED TO BE

MARKETED OR SOLD AS ANYTHING OTHER THAN AN ALCOHOLIC BEVERAGE.

SECTION 11. SECTIONS 499(B.1) AND 505.4(B)(1) AND (C)(1) OF

THE ACT ARE AMENDED TO READ:

SECTION 499. PREMISES TO BE VACATED BY PATRONS.--* * *

(B.1) UPON APPLICATION OF ANY CLUB, THE BOARD SHALL ISSUE A

CLUB EXTENDED HOURS FOOD PERMIT [FOR A PERIOD OF SIX (6) DAYS

DURING THE TERM OF ITS LICENSE]. THE BOARD SHALL ISSUE

REGULATIONS GOVERNING TERMS OF THE APPLICATION. THE PERMITS

A05284 - 25 -

SHALL BE USED SOLELY FOR THE PURPOSE OF SERVING FOOD BETWEEN THE

HOURS OF THREE O'CLOCK ANTEMERIDIAN AND SEVEN O'CLOCK

ANTEMERIDIAN. ALL PATRONS OF A LICENSEE SHALL BE REQUIRED TO

LEAVE THAT PART OF THE PREMISES HABITUALLY USED FOR THE SERVING

OF LIQUOR OR MALT OR BREWED BEVERAGES TO GUESTS OR PATRONS NOT

LATER THAN ONE-HALF HOUR AFTER THE TIME THE LICENSEE IS REQUIRED

BY THIS ACT TO CEASE SERVING LIQUOR OR MALT OR BREWED BEVERAGES

AND SHALL NOT BE PERMITTED TO HAVE ANY PREVIOUSLY SERVED LIQUOR

OR MALT OR BREWED BEVERAGES IN THEIR POSSESSION, NOR SHALL THEY

BE PERMITTED TO REMOVE ANY PREVIOUSLY SERVED LIQUOR OR MALT OR

BREWED BEVERAGES FROM THAT PART OF THE PREMISES.

* * *

SECTION 505.4. LIMITED DISTILLERIES AND DISTILLERIES.--* * *

(B) (1) [THE] (I) EXCEPT AS OTHERWISE PROVIDED, THE BOARD

MAY ISSUE A LIMITED DISTILLERY LICENSE THAT WILL ALLOW THE

HOLDER THEREOF TO OPERATE A DISTILLERY THAT SHALL NOT EXCEED

PRODUCTION OF ONE HUNDRED THOUSAND (100,000) GALLONS OF

DISTILLED LIQUOR PER YEAR. THE HOLDER OF THE LICENSE MAY

MANUFACTURE AND SELL BOTTLED LIQUORS PRODUCED ON THE LICENSED

PREMISES TO THE BOARD, TO ENTITIES LICENSED BY THE BOARD AND TO

THE PUBLIC BETWEEN THE HOURS OF NINE O'CLOCK ANTEMERIDIAN AND

TWELVE O'CLOCK ANTEMERIDIAN MONDAY THROUGH SATURDAY AND SUNDAY

BETWEEN THE HOURS OF NINE O'CLOCK ANTEMERIDIAN THROUGH ELEVEN

O'CLOCK POSTMERIDIAN SO LONG AS A SPECIFIC CODE OF DISTILLED

LIQUOR WHICH IS LISTED FOR SALE AS A STOCK ITEM BY THE BOARD IN

STATE LIQUOR STORES MAY NOT BE OFFERED FOR SALE AT A LICENSED

LIMITED DISTILLERY LOCATION AT A PRICE WHICH IS LOWER THAN THAT

CHARGED BY THE BOARD AND UNDER SUCH CONDITIONS AND REGULATIONS

AS THE BOARD MAY ENFORCE. THE HOLDER OF A LIMITED DISTILLERY

LICENSE MAY NOT SELL A PRODUCT OR A SUBSTANTIALLY SIMILAR

A05284 - 26 -

PRODUCT WHICH IS LISTED FOR SALE AS A STOCK ITEM BY THE BOARD IN

STATE LIQUOR STORES TO A LICENSEE AT A PRICE WHICH IS LOWER THAN

THAT CHARGED BY THE BOARD AND UNDER SUCH CONDITIONS AND

REGULATIONS AS THE BOARD MAY ENFORCE. THE HOLDER OF A LIMITED

DISTILLERY LICENSE MAY ALSO SELL WINE, ALCOHOLIC CIDER AND

FERMENTED FRUIT BEVERAGES PRODUCED BY A LICENSED LIMITED WINERY,

LIQUOR PRODUCED BY A LICENSED DISTILLERY OR LIMITED DISTILLERY

AND MALT OR BREWED BEVERAGES PRODUCED BY A LICENSED BREWERY FOR

ON-PREMISES CONSUMPTION. THE COMBINED SALES OF WINE, MALT OR

BREWED BEVERAGES AND LIQUOR PRODUCED BY ANOTHER LICENSED

DISTILLERY OR LIMITED DISTILLERY MAY NOT, ON A YEARLY BASIS,

EXCEED FIFTY PER CENTUM OF THE ON-PREMISES SALES OF THE LIMITED

DISTILLERY'S OWN SALES OF LIQUOR FOR THE PRECEDING CALENDAR

YEAR: HOWEVER, IF A LIMITED DISTILLERY DID NOT OPERATE FOR AN

ENTIRE CALENDAR YEAR DURING THE PRECEDING YEAR, THEN ITS

COMBINED SALES OF WINE, MALT OR BREWED BEVERAGES AND LIQUOR

PRODUCED BY ANOTHER LICENSED DISTILLERY OR LIMITED DISTILLERY

MAY NOT, ON A YEARLY BASIS, EXCEED FIFTY PER CENTUM OF THE ON-

PREMISES SALES OF THE LIMITED DISTILLERY'S OWN LIQUOR FOR THAT

YEAR.

(II) A LIMITED DISTILLERY MAY OPERATE EXTENDED HOURS ON

DECEMBER 31 OF EACH CALENDAR YEAR UNTIL TWO O'CLOCK ANTEMERIDIAN

JANUARY 1 OF THE FOLLOWING CALENDAR YEAR.

(III) THE BOARD MAY ISSUE AN EXTENDED HOURS PERMIT

PERMITTING THE HOLDER OF A LIMITED DISTILLERY LICENSE TO REMAIN

OPEN AND SELL ALCOHOL UNTIL TWO O'CLOCK ANTEMERIDIAN THE

FOLLOWING CALENDAR DAY. FOLLOWING A FIFTY-DOLLAR ($50) FEE, A

HOLDER OF A LIMITED DISTILLERY LICENSE MUST SUBMIT A WRITTEN

APPLICATION FOR AN EXTENDED HOURS PERMIT UNDER THIS SUBCLAUSE TO

THE BOARD IN A FORM PRESCRIBED BY THE BOARD. THE FOLLOWING SHALL

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APPLY:

(A) ONLY ONE EXTENDED HOURS PERMIT MAY BE ISSUED TO A HOLDER

OF A LIMITED DISTILLERY LICENSE PER CALENDAR YEAR AND MAY ONLY

BE USED FOR ONE DAY IN THAT CALENDAR YEAR AT ALL OF THE HOLDER

OF A LIMITED DISTILLERY LICENSE'S LOCATIONS.

(B) THE HOLDER OF A LIMITED DISTILLERY LICENSE SHALL PROVIDE

WRITTEN NOTICE TO THE LOCAL POLICE DEPARTMENT, OR PENNSYLVANIA

STATE POLICE IF NO LOCAL POLICE DEPARTMENT IS AVAILABLE, AT

LEAST FORTY-EIGHT HOURS PRIOR TO EACH USE OF THE EXTENDED HOURS

PERMIT. WRITTEN NOTICE SHALL INCLUDE NOTIFYING THE POLICE OF THE

DATE, TIME AND PLACE OF THE EXTENDED SALE OF ALCOHOLIC

BEVERAGES.

* * *

OF A DISTILLERY LICENSE AS ISSUED UNDER SECTION 505 MAY SELL

BOTTLED LIQUORS PRODUCED ON THE LICENSED PREMISES TO THE BOARD,

TO ENTITIES LICENSED BY THE BOARD AND TO THE PUBLIC BETWEEN THE

HOURS OF NINE O'CLOCK ANTEMERIDIAN AND TWELVE O'CLOCK

ANTEMERIDIAN MONDAY THROUGH SATURDAY AND SUNDAY BETWEEN THE

HOURS OF NINE O'CLOCK ANTEMERIDIAN THROUGH ELEVEN O'CLOCK

POSTMERIDIAN SO LONG AS A SPECIFIC CODE OF DISTILLED LIQUOR

WHICH IS LISTED FOR SALE AS A STOCK ITEM BY THE BOARD IN STATE

LIQUOR STORES MAY NOT BE OFFERED FOR SALE AT A LICENSED

DISTILLERY LOCATION AT A PRICE WHICH IS LOWER THAN THAT CHARGED

BY THE BOARD AND UNDER SUCH CONDITIONS AND REGULATIONS AS THE

BOARD MAY ENFORCE. THE HOLDER OF A DISTILLERY LICENSE MAY NOT

SELL A PRODUCT OR A SUBSTANTIALLY SIMILAR PRODUCT WHICH IS

LISTED FOR SALE AS A STOCK ITEM BY THE BOARD IN STATE LIQUOR

STORES TO A LICENSEE AT A PRICE WHICH IS LOWER THAN THAT CHARGED

BY THE BOARD AND UNDER SUCH CONDITIONS AND REGULATIONS AS THE

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BOARD MAY ENFORCE. THE HOLDER OF A DISTILLERY LICENSE MAY ALSO

SELL ITS LIQUOR, WINE, ALCOHOLIC CIDER AND FERMENTED FRUIT

BEVERAGES PRODUCED BY A LICENSED LIMITED WINERY, LIQUOR PRODUCED

BY A LICENSED DISTILLERY OR LIMITED DISTILLERY AND MALT OR

BREWED BEVERAGES PRODUCED BY A LICENSED BREWERY FOR ON-PREMISES

CONSUMPTION. THE COMBINED SALES OF WINE, MALT OR BREWED

BEVERAGES AND LIQUOR PRODUCED BY ANOTHER LICENSED DISTILLERY OR

LIMITED DISTILLERY MAY NOT, ON A YEARLY BASIS, EXCEED FIFTY PER

CENTUM OF THE ON-PREMISES SALES OF THE DISTILLERY'S OWN SALES OF

LIQUOR FOR THE PRECEDING CALENDAR YEAR: HOWEVER, IF A DISTILLERY

DID NOT OPERATE FOR AN ENTIRE CALENDAR YEAR DURING THE PRECEDING

YEAR, THEN ITS COMBINED SALES OF WINE, MALT OR BREWED BEVERAGES

AND LIQUOR PRODUCED BY ANOTHER LICENSED DISTILLERY OR LIMITED

DISTILLERY MAY NOT, ON A YEARLY BASIS, EXCEED FIFTY PER CENTUM

OF THE ON-PREMISES SALES OF THE DISTILLERY'S OWN LIQUOR FOR THAT

YEAR.

(II) A DISTILLERY MAY OPERATE EXTENDED HOURS ON DECEMBER 31

OF EACH CALENDAR YEAR UNTIL TWO O'CLOCK ANTEMERIDIAN JANUARY 1

OF THE FOLLOWING CALENDAR YEAR.

(III) THE BOARD MAY ISSUE AN EXTENDED HOURS PERMIT

PERMITTING THE HOLDER OF A DISTILLERY LICENSE TO REMAIN OPEN AND

SELL ALCOHOL UNTIL TWO O'CLOCK ANTEMERIDIAN THE FOLLOWING

CALENDAR DAY. FOLLOWING A FIFTY-DOLLAR ($50) FEE, A HOLDER OF A

DISTILLERY LICENSE MUST SUBMIT A WRITTEN APPLICATION FOR AN

EXTENDED HOURS PERMIT UNDER THIS SUBCLAUSE TO THE BOARD IN A

FORM PRESCRIBED BY THE BOARD. THE FOLLOWING SHALL APPLY:

(A) ONLY ONE EXTENDED HOURS PERMIT MAY BE ISSUED TO A HOLDER

OF A DISTILLERY LICENSE PER CALENDAR YEAR AND MAY ONLY BE USED

FOR ONE DAY IN THAT CALENDAR YEAR AT ALL OF THE HOLDER OF A

DISTILLERY LICENSE'S LOCATIONS.

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(B) THE HOLDER OF A DISTILLERY LICENSE SHALL PROVIDE WRITTEN

NOTICE TO THE LOCAL POLICE DEPARTMENT, OR PENNSYLVANIA STATE

POLICE IF NO LOCAL POLICE DEPARTMENT IS AVAILABLE, AT LEAST

FORTY-EIGHT HOURS PRIOR TO EACH USE OF THE EXTENDED HOURS

PERMIT. WRITTEN NOTICE SHALL INCLUDE NOTIFYING THE POLICE OF THE

DATE, TIME AND PLACE OF THE EXTENDED SALE OF ALCOHOLIC

BEVERAGES.

* * *

SECTION 12. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 505.5. PENNSYLVANIA DISTILLED SPIRITS INDUSTRY

PROMOTION BOARD.--(A) THE PENNSYLVANIA DISTILLED SPIRITS

INDUSTRY PROMOTION BOARD IS ESTABLISHED.

(B) THE PENNSYLVANIA DISTILLED SPIRITS INDUSTRY PROMOTION

BOARD SHALL BE COMPOSED OF THE FOLLOWING MEMBERS:

(1) ONE MEMBER APPOINTED BY THE GOVERNOR.

(2) FOUR MEMBERS APPOINTED BY THE GENERAL ASSEMBLY AS

FOLLOWS:

(I) ONE INDIVIDUAL APPOINTED BY THE PRESIDENT PRO TEMPORE OF

THE SENATE.

(II) ONE INDIVIDUAL APPOINTED BY THE SPEAKER OF THE HOUSE OF

REPRESENTATIVES.

(III) ONE INDIVIDUAL APPOINTED BY THE MINORITY LEADER OF THE

SENATE.

(IV) ONE INDIVIDUAL APPOINTED BY THE MINORITY LEADER OF THE

HOUSE OF REPRESENTATIVES.

HAVE SUBSTANTIAL EXPERIENCE OR EXPERTISE IN THE PENNSYLVANIA

DISTILLERIES INDUSTRY.

(D) EACH MEMBER SHALL SERVE AT THE PLEASURE OF THE

APPOINTING AUTHORITY.

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(E) THE PENNSYLVANIA DISTILLED SPIRITS INDUSTRY PROMOTION

BOARD HAS THE FOLLOWING POWERS AND DUTIES:

(1) MAKE RECOMMENDATIONS TO THE SECRETARY OF AGRICULTURE TO

AWARD GRANTS TO ENTITIES FOR THE PURPOSE OF INCREASING THE

PRODUCTION OF PENNSYLVANIA-MADE SPIRITS AND ENHANCING THE

PENNSYLVANIA DISTILLED SPIRITS INDUSTRY THROUGH PROMOTION,

MARKETING AND RESEARCH-BASED PROGRAMS AND PROJECTS. GRANTS SHALL

BE AWARDED THROUGH A COMPETITIVE GRANT REVIEW PROCESS. THE

APPLICATION FOR A GRANT SHALL INCLUDE THE FOLLOWING INFORMATION:

(I) PURPOSE FOR WHICH THE GRANT WILL BE UTILIZED.

(II) NEED FOR THE GRANT.

(III) ESTIMATED BUDGET.

(IV) METHOD FOR MEASURING OUTCOME.

(V) OTHER CRITERIA REQUIRED BY THE PENNSYLVANIA DISTILLED

SPIRITS INDUSTRY PROMOTION BOARD.

(2) REQUIRE EACH GRANT RECIPIENT TO PROVIDE FULL AND

COMPLETE ACCESS TO ALL RECORDS RELATING TO THE PERFORMANCE OF

THE GRANT AND TO SUBMIT ACCURATE INFORMATION.

(3) CONDUCT A THOROUGH ANNUAL EVALUATION OF EACH PROGRAM FOR

WHICH A GRANT UNDER THIS SECTION IS MADE.

(4) SEEK REPAYMENT OF MONEY UPON A DETERMINATION THAT THE

MONEY WAS NOT UTILIZED FOR THE ORIGINAL STATED PURPOSE.

(5) SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY

DETAILING ALL GRANTS AND OTHER ACTIONS.

(F) THE DEPARTMENT OF AGRICULTURE SHALL ASSIST THE

PENNSYLVANIA DISTILLED SPIRITS INDUSTRY PROMOTION BOARD IN

CARRYING OUT ITS POWERS AND DUTIES. FINAL DECISIONS FOR AWARDING

GRANTS UNDER SUBSECTION (E)(1) SHALL BE MADE BY THE SECRETARY OF

AGRICULTURE.

(G) ANNUALLY, THE BOARD SHALL ALLOCATE THE AMOUNT OF ONE

A05284 - 31 -

MILLION DOLLARS ($1,000,000) FOR THE PURPOSE OF AWARDING GRANTS

UNDER SUBSECTION (E)(1).

(H) THE BOARD SHALL TRANSFER THE ANNUAL ALLOCATION

AUTHORIZED UNDER THIS SECTION TO THE PENNSYLVANIA DISTILLED

SPIRITS INDUSTRY PROMOTION BOARD ACCOUNT. THE PENNSYLVANIA

DISTILLED SPIRITS INDUSTRY PROMOTION BOARD SHALL ALLOCATE MONEY

UNDER THIS SUBSECTION FOR THE PURPOSE OF AWARDING GRANTS UNDER

SUBSECTION (E)(1). THE FOLLOWING SHALL APPLY:

(1) THE PENNSYLVANIA DISTILLED SPIRITS INDUSTRY PROMOTION

BOARD MAY DEDUCT MONEY FROM THE ALLOCATION UNDER THIS SUBSECTION

TO COVER THE DEPARTMENT OF AGRICULTURE'S EXPENSES IN ASSISTING

THE PENNSYLVANIA DISTILLED SPIRITS PROMOTION BOARD.

(2) IN ANY FISCAL YEAR WHEN GRANT MONEY AUTHORIZED UNDER

THIS SECTION REMAINS UNALLOCATED, THE REMAINING AMOUNT OF MONEY

SHALL BE MADE AVAILABLE FOR GRANTS IN SUBSEQUENT FISCAL YEARS.

(3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL OF THE

OBLIGATIONS OF THE BOARD UNDER THIS SECTION ARE FULFILLED BY

VIRTUE OF THE TRANSFER OF THE ANNUAL ALLOCATION UNDER THIS

SUBSECTION TO THE PENNSYLVANIA DISTILLED SPIRITS INDUSTRY

PROMOTION BOARD.

SECTION 13. ALL REGULATIONS AND PARTS OF REGULATIONS ARE

ABROGATED TO THE EXTENT OF ANY INCONSISTENCY WITH THIS ACT.

SECTION 14. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.

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