Pennsylvania Act 2024-57 — LIQUOR CODE - OMNIBUS AMENDMENTS

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LIQUOR CODE - OMNIBUS AMENDMENTS
Act of Jul. 15, 2024, P.L. 700, No. 57Cl. 47

Session of 2024

No. 2024-57

HB 829

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 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. 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 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 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 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 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 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 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 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 licensees 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 alcoholic 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 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 4. Sections 417(a.1) and (a.3), 431(g)(2) and 443(d) of the act are amended to read:

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 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, 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 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.

(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 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 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 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.

(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. 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 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 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.

(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 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), (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 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 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 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 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 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.

(c) (1) [The] (i) Except as otherwise provided, the holder 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 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.

(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.

(c) Each member must be a resident of this Commonwealth and have substantial experience or expertise in the Pennsylvania distilleries industry.

(d) Each member shall serve at the pleasure of the appointing authority.

(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 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.

APPROVED--The 15th day of July, A.D. 2024.

JOSH SHAPIRO

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