2023-2024 Regular Session HB 874 PN 0850 Bill Text (HTM)

PRINTER'S NO. 850

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

874

Session of

2023

INTRODUCED BY D'ORSIE, MOUL, LEADBETER, FLICK, PASHINSKI,

PICKETT, OBERLANDER, GLEIM, KEEFER, ECKER, CAUSER, KAUFFMAN,

ZIMMERMAN AND ROWE, APRIL 10, 2023

REFERRED TO COMMITTEE ON LIQUOR CONTROL, APRIL 10, 2023

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

licenses and regulations and liquor, alcohol and malt and

brewed beverages, further providing for interlocking business

prohibited, for number and kinds of licenses allowed same

licensee, for interlocking business prohibited, for brand

registration and for breweries; in distilleries, wineries,

bonded warehouses, bailees for hire and transporters for

hire, further providing for limited wineries and for limited

distilleries and distilleries, providing for farm cideries

and further providing for license fees and for records to be

kept; and making an editorial change.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

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

definitions to read:

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

"Agricultural commodity" shall include any of the following:

agricultural, apicultural, horticultural, silvicultural and

viticultural commodities.

* * *

"Alcoholic cider, fermented fruit beverage, mead and food

expositions" shall mean affairs held indoors or outdoors with

the intent of promoting Pennsylvania products by educating those

in attendance of the availability, nature and quality of

Pennsylvania-produced alcoholic ciders, fermented fruit

beverages and mead in conjunction with suitable food displays,

demonstrations and sales. The term may also include activities

other than alcoholic cider, fermented fruit beverage, mead and

food displays, including arts and crafts, musical activities,

cultural exhibits, agricultural exhibits and farmers markets.

* * *

"Farm cidery" shall mean a location where alcoholic cider is

manufactured.

"Farmers market" shall include any building, structure or

other place:

(1) owned, leased or otherwise in the possession of a

person, municipal corporation or public or private organization;

(2) used or intended to be used by two or more farmers or an

association of farmers, who are certified by the Department of

Agriculture of the Commonwealth to participate in the Farmers'

Market Nutrition Program subject to 7 CFR Pt. 249 (relating to

20230HB0874PN0850 - 2 -

Senior Farmers' Market Nutrition Program (SFMNP)), for the

purpose of selling agricultural commodities produced in this

Commonwealth directly to consumers;

(3) which is physically located within this Commonwealth;

and

(4) which is not open for business more than twelve hours

each day.

* * *

"Permitted fruit" shall mean fruit grown or juice derived

from fruit grown within three hundred fifty miles of a limited

winery or farm cidery.

* * *

Section 2. Sections 411(e) and (e.1)(1), 438(c), 443(a),

(c), (d), (e), (f) and (g) and 445(a) and (b) of the act are

amended to read:

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

(e) Except as herein provided, no hotel, restaurant, retail

dispenser or club licensee, and no officer, director or

stockholder, agent or employe of any such licensee shall in any

wise be interested, directly or indirectly, in the ownership or

leasehold of any property or the equipment of any property or

any mortgage lien against the same, used by a distributor,

importing distributor, or by an importer or sacramental wine

licensee, in the conduct of his business; nor shall any hotel,

restaurant, retail dispenser or club licensee, or any officer,

director, stockholder, agent or employe of any such licensee,

either directly or indirectly, lend any moneys, credit, or give

anything of value or the equivalent thereof, to any distributor,

importing distributor, importer or sacramental wine licensee,

for equipping, fitting out, or maintaining and conducting,

20230HB0874PN0850 - 3 -

either in whole or in part, an establishment used in the conduct

of his business.

The purpose of this section is to require a separation of the

financial and business interests between manufacturers and

holders of hotel or restaurant liquor licenses and, as herein

provided, of club licenses, issued under this article, and no

person shall, by any device whatsoever, directly or indirectly,

evade the provisions of the section. But in view of existing

economic conditions, nothing contained in this section shall be

construed to prohibit the ownership of property or conflicting

interest by a manufacturer of any place occupied by a licensee

under this article after the manufacturer has continuously owned

and had a conflicting interest in such place for a period of at

least five years prior to July eighteenth, one thousand nine

hundred thirty-five: Provided, however, That this clause shall

not prohibit any hotel, restaurant or club liquor licensee, or

any officer, director or stockholder of any such licensee, from

owning land or buildings which are leased to a holder of a

retail dispenser's license or a manufacturer's license: And,

provided further, That nothing contained in this section shall

be construed to prohibit any hotel, restaurant, retail dispenser

or club licensee or any officer, director or stockholder, agent

or employe of any such licensee from having a financial or other

interest, directly or indirectly in the ownership or leasehold

of any property or the equipment of any property or any mortgage

lien against same, used, leased by an importer or sacramental

wine licensee for the exclusive purpose of maintaining

commercial offices and on the condition that said property is

not used for the storage or sale of liquor or malt or brewed

beverages in any quantity: And, provided further, That nothing

20230HB0874PN0850 - 4 -

contained in this section shall prohibit an officer or member of

a licensed privately owned private golf course catering club

from having an interest in a limited winery or a farm cidery

license: And, provided further, That nothing contained in this

section shall be construed to prohibit a member of the governing

board of a public authority created under subdivision (n) of

Article XXIII of the act of August 9, 1955 (P.L.323, No.130),

known as "The County Code," from having an interest in a

distributor or importing distributor license notwithstanding the

fact that the public authority has an interest in one or more

retail licenses or acts as a landlord for one or more retail

licenses: And, provided further, That, nothing in this section

may prohibit an employe of a hotel or restaurant licensee from

guaranteeing any loans, or lending any moneys, providing credit

or giving anything of value to a limited winery or a farm cidery

licensee or its officers, directors and shareholders, provided

that the person also is not an officer of or does not have any

interest in or exercise any control over any other licensed

entity that engages in any sales to or from the licensee: And,

provided further, That, notwithstanding any other provision of

this section, an entity may acquire both a manufacturer's

license or a limited winery or a farm cidery license and a

hotel, restaurant or retail dispenser license for use at the

same location and more than one location may be so licensed.

And, provided further, That, notwithstanding any other provision

of this section, an entity licensed as a limited winery or as a

farm cidery may hold and operate a restaurant liquor license at

one of its additional, board-approved locations instead of at

its primary location where manufacturing occurs. The licenses

and a person's interest in the licenses or in the entity holding

20230HB0874PN0850 - 5 -

the licenses shall not be subject to this section. Provided

further, That, a person who is a holder of ten per centum (10%)

or less of securities or other interests in a publicly or

privately held domestic or foreign corporation, partnership,

limited liability company or other form of legal entity owning a

retail license shall not be deemed to possess a financial

interest and is not subject to the provisions of this section,

provided that the person is not an officer of, employe of or

does not have any interest in or exercise any control over any

other licensed entity that engages in any sales to or from the

retail licensee in which the person holds the ten per centum

(10%) or less interest.

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

following:

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

winery or a farm cidery 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.

* * *

Section 438. Number and Kinds of Licenses Allowed Same

Licensee.--* * *

except that a holder of a retail dispenser's license may also be

a holder of a retail liquor license: Provided, however, That

nothing contained in this section shall be construed to prohibit

a member of the governing board of a public authority created

under subdivision (n) of Article XXIII of the act of August 9,

1955 (P.L.323, No.130), known as "The County Code," from having

an interest in a distributor or importing distributor license

20230HB0874PN0850 - 6 -

notwithstanding the fact that the public authority has an

interest in one or more retail licenses or acts as a landlord

for one or more retail licenses: And, provided further, That,

notwithstanding any other provision of this section, an entity

may acquire both a manufacturer's license or a limited winery

license or a farm cidery license and a hotel, restaurant or

retail dispenser license for use at the same location and more

than one location may be so licensed. The licenses and a

person's interest in the licenses or in the entity holding the

licenses shall not be subject to this section.

Section 443. Interlocking Business Prohibited.--(a) No

manufacturer of malt or brewed beverages and no officer or

director of any such manufacturer shall at the same time be a

distributor, importing distributor or retail dispenser, or an

officer, director or stockholder or creditor of any distributor,

importing distributor or retail dispenser, nor, except as

hereinafter provided, be the owner, proprietor or lessor of any

place for which a license has been issued for any importing

distributor, distributor or retail dispenser, or for which a

hotel, restaurant or club liquor license has been issued:

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 or a farm cidery as provided for under

section 505.5 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 or farm cidery'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

20230HB0874PN0850 - 7 -

[or], limited winery or farm cidery subject to section 461 and

shall satisfy all requirements for each respective license.

* * *

Article IV and no officer or director of such licensee shall,

directly or indirectly, own any stock of, or have any financial

interest in, any other class of business licensed under this

subdivision: 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 or a farm cidery as

provided for under section 505.5 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 or farm cidery'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 or farm cidery subject to

section 461 and shall satisfy all requirements for each

respective license.

(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,

20230HB0874PN0850 - 8 -

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 or a farm cidery as

provided for under section 505.5 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 or farm cidery'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 or farm cidery subject to

section 461 and shall satisfy all requirements for each

respective license.

(e) Excepting as hereinafter provided, no manufacturer of

malt or brewed beverages shall in any wise be interested, either

directly or indirectly, in the ownership or leasehold of any

property or any mortgage lien against the same, for which a

distributor's or importing distributor's license is granted; nor

shall any such manufacturer, either directly or indirectly, lend

any moneys, credit, or their equivalent to, or guarantee the

payment of any bond, mortgage, note or other obligation of, any

distributor or importing distributor, in equipping, fitting out,

or maintaining and conducting, either in whole or in part, an

establishment or business where malt or brewed beverages are

licensed for sale by a distributor or importing distributor,

20230HB0874PN0850 - 9 -

excepting only the usual credits allowed for the return of

original containers in which malt or brewed beverages were

originally packaged for the 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 or a farm cidery as

provided for under section 505.5 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 or farm cidery'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 or farm cidery subject to

section 461 and shall satisfy all requirements for each

respective license. Nothing in this section shall be construed

to prohibit an out of State manufacturer from engaging in a

transaction or making payments authorized by section 431(a.1).

(f) No distributor, importing distributor or retail

dispenser shall in anywise receive, either directly or

indirectly, any credit, loan, moneys or the equivalent thereof

from any other licensee, or from any officer, director or firm

member of any other licensee, or from or through a subsidiary or

affiliate of another licensee, or from any firm, association or

corporation, except banking institutions, in which another

licensee or any officer, director or firm member of another

licensee has a substantial interest or exercises a control of

its business policy, for equipping, fitting out, payment of

license fee, maintaining and conducting, either in whole or in

part, an establishment or business operated under a

20230HB0874PN0850 - 10 -

distributor's, importing distributor's or retail dispenser's

license, excepting only the usual and customary credits allowed

for the return of original containers in which malt or brewed

beverages were packaged for the 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 or a farm cidery as

provided for under section 505.5 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 or farm cidery'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 or farm cidery subject to

section 461 and shall satisfy all requirements for each

respective license. Nothing in this section shall be construed

to prohibit an importing distributor from receiving payment from

an out of State manufacturer for engaging in a transaction or

performing services authorized by section 431(b) or 444(a.1).

(g) The purpose of this section is to require a separation

of the financial and business interests between the various

classes of business regulated by subdivision (B) of this

article, and no person or corporation shall, by any device

whatsoever, directly or indirectly, evade the provisions of this

section. But in view of existing economic conditions, nothing

contained in this section shall be construed to prohibit the

ownership of property or conflicting interest by a malt or

brewed beverage manufacturer of any place occupied by a

distributor, importing distributor or retail dispenser after the

20230HB0874PN0850 - 11 -

manufacturer has continuously owned and had a conflicting

interest in such place for a period of at least five years prior

to the eighteenth day of July, one thousand nine hundred thirty-

five: 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 or a farm cidery as provided

for under section 505.5 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 or farm cidery'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 or farm cidery subject to section 461 and

shall satisfy all requirements for each respective license: And,

provided further, That nothing contained in this section shall

be construed to prohibit a member of the governing board of a

public authority created under subdivision (n) of Article XXIII

of the act of August 9, 1955 (P.L.323, No.130), known as "The

County Code," from having an interest in a distributor or

importing distributor license notwithstanding the fact that the

public authority has an interest in one or more retail licenses

or acts as a landlord for one or more retail licenses.

A person who is a holder of five per centum (5%) or less of

securities or other interests in a publicly or privately held

domestic or foreign corporation, partnership, limited liability

company or other form of legal entity owning a restaurant liquor

license or retail dispenser's license shall not be deemed to

possess a financial interest and is not subject to the

provisions of this section, provided that the person is not an

20230HB0874PN0850 - 12 -

officer of, employe of or does not have any interest in or

exercise any control over any other licensed entity that engages

in any sales to or from the restaurant liquor or retail

dispenser licensee in which the person holds the five per centum

(5%) or less interest.

The term "manufacturer" as used in this section shall include

manufacturers of malt or brewed beverages as defined in this act

and any person manufacturing any malt or brewed beverages

outside of this Commonwealth.

* * *

Section 445. Brand Registration.--(a) No brand or brands of

malt or brewed beverages shall be offered, sold or delivered to

any trade buyer within this Commonwealth unless the manufacturer

thereof shall first submit an application in the form and manner

prescribed by the board for the registration of the said brand

or brands of malt or brewed beverages, together with an annual

filing fee not to exceed seventy-five dollars ($75) for each

brand registration requested as set forth for malt or brewed

beverages in section 614-A(35) of the act of April 9, 1929

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

Notwithstanding section 614-A(35) of that act, up to twenty

brands of malt or brewed beverages may be registered for a

single annual fee of one hundred fifty dollars ($150.00), so

long as one hundred barrels or less of each brand is produced on

an annual basis. Any brand or brands of malt or brewed beverages

that are produced by a manufacturer but not offered for sale

because of additional aging of the beverages shall only be

registered at the time the brand or brands are offered for sale.

In the event an out-of-State or foreign manufacturer of malt or

brewed beverages has granted franchise rights to any person for

20230HB0874PN0850 - 13 -

the sale and distribution of its brand products but which person

is not licensed to sell and distribute the same in this

Commonwealth, said such person shall nevertheless be required to

Pennsylvania. It is further conditioned that the person holding

such franchise rights shall, together with its application for

brand registration, file with the board copies of all agreements

between it and the Pennsylvania importing distributor appointed

by such person to sell and distribute the brands of malt or

brewed beverages as provided by sections 431 and 492. Such

agreement shall contain the manufacturer's consent and approval

to the appointment of the Pennsylvania importing distributor and

the rights conferred thereunder.

(b) The board shall employ a [malt beverage] compliance

officer whose duties shall include reviewing label registration

to ensure compliance with this act and investigating reports of

unregistered brands of malt or brewed beverages being sold by

licensees and reports of worthless checks and any other duties

the board shall assign the officer. If the [malt beverage]

compliance officer finds that a licensee is selling malt or

brewed beverages that are unregistered in this Commonwealth, he

shall give the manufacturer of the malt or brewed beverages

written notice that the manufacturer has ten days to register

the malt or brewed beverages with the board. During that ten-day

period in which the manufacturer has to come into compliance

with brand registration, the unregistered malt or brewed

beverages shall remain on the licensee's premises but may not be

sold. Should the manufacturer fail to register the malt or

brewed beverages with the board within ten days, the

manufacturer shall be required to remove the unregistered malt

20230HB0874PN0850 - 14 -

or brewed beverages from the licensee's premises and reimburse

the licensee for all unregistered products that cannot be sold

in this Commonwealth. If a [malt beverage] compliance officer

receives notification that a licensee issued a worthless check,

the officer shall give the licensee written notice that the

licensee has ten days from the date the notice was mailed to

honor that check. Should the licensee fail to honor the check

within ten days from the date the notice was mailed, the matter

shall be turned over to the enforcement bureau for citation.

* * *

Section 3. Section 446(a)(2) of the act, amended July 11,

2022 (P.L.747, No.67), is amended to read:

Section 446. Breweries.--(a) Holders of a brewery license

may:

* * *

(2) Operate a restaurant or brewery pub on the licensed

premises under such conditions and regulations as the board may

enforce: Provided, however, That sales on Sunday may be made

irrespective of the volume of food sales if the licensed

premises are at a public venue location. In addition to the

sales authorized under paragraph (1), the holder of a brewery

license may sell wines, alcoholic cider and fermented fruit

beverages produced by the holder of a limited winery or farm

cidery license, malt or brewed beverages produced by a

manufacturer licensed by the board and liquor produced by a

limited distillery or distillery licensed by the board:

Provided, however, That said wines, alcoholic cider, malt or

brewed beverages produced by another manufacturer and liquor

must be consumed at the licensed premises. In addition, the

combined sales of wine, alcoholic cider, malt or brewed

20230HB0874PN0850 - 15 -

beverages produced by another manufacturer and liquor may not,

on a yearly basis, exceed fifty per centum (50%) of the on-

premises sales of the brewery's own malt or brewed beverages for

the preceding calendar year: however, if a brewery did not

operate for an entire calendar year during the preceding year,

then its combined sales of wine, alcoholic cider, malt or brewed

beverages produced by another manufacturer and liquor may not,

on a yearly basis, exceed fifty per centum (50%) of the on-

premises sales of the brewery's own malt or brewed beverages for

that year.

* * *

Section 4. Article V heading and sections 505.2(a)(2), (3),

(4), (4.1), (5)(i), (6)(iv) and (6.1), (b) and (c) and 505.4(b)

(1) and (c)(1) of the act are amended to read:

ARTICLE V.

DISTILLERIES, WINERIES, FARM CIDERIES, BONDED WAREHOUSES,

BAILEES FOR HIRE AND TRANSPORTERS FOR HIRE.

Section 505.2. Limited Wineries.--(a) In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

* * *

(2) Sell alcoholic cider, fermented fruit beverages, mead,

wine and wine coolers produced by the limited winery or

purchased in bulk in bond from another Pennsylvania limited

winery or Pennsylvania farm cidery on the licensed premises,

under such conditions and regulations as the board may enforce,

to the board, to individuals and to brewery, importing

distributor, distributor, hotel, restaurant, club and public

service liquor licensees, and to Pennsylvania winery and farm

cidery licensees: Provided, That a limited winery shall not, in

20230HB0874PN0850 - 16 -

any calendar year, purchase alcoholic cider, fermented fruit

beverages, mead or wine produced by other limited wineries or

farm cideries in an amount in excess of fifty per centum of the

alcoholic cider, fermented fruit beverages, mead or wine

produced by the purchasing limited winery in the preceding

calendar year. In addition, the holder of a limited winery

license may purchase wine in bottles from another Pennsylvania

limited winery if these wines undergo a second fermentation

process. Such wine may be sold in bottles bearing the purchasing

limited winery's label or the producing limited winery's label.

Such wines, if sold by the board, may be sold by the producing

limited winery to the purchasing limited winery at a price lower

than the price charged by the board.

* * *

(3) Separately or in conjunction with other limited wineries

or farm cideries, sell alcoholic cider, fermented fruit

beverages, mead, wine and wine coolers produced by the limited

winery or farm cidery on no more than five (5) board-approved

locations other than the licensed premises, with no bottling or

production requirement at those additional board-approved

locations and under such conditions and regulations as the board

may enforce, to the board, to individuals and to brewery, hotel,

restaurant, club and public service liquor licensees. If two or

more limited wineries, or a limited winery and a farm cidery,

apply to operate an additional board-approved location in

conjunction with each other, the [wineries] board-approved

location need only have one board-approved manager for the

location, need only pay one application fee and need not

designate specific or distinct areas for each winery's or farm

cidery's licensed area. Each limited winery or farm cidery must

20230HB0874PN0850 - 17 -

file an application for such an additional board-approved

location, and such location shall count as one of the five

permitted for each limited winery. Each limited winery or farm

cidery is responsible for keeping only its own complete records.

A limited winery or farm cidery may be cited for a violation of

the recordkeeping requirements of sections 512 and 513

pertaining to its own records only.

(4) At the discretion of the board, obtain a special permit

to participate in alcoholic cider, fermented fruit beverage,

mead, wine and food expositions off the licensed premises. A

special permit shall be issued upon proper application and

payment of a fee of thirty dollars ($30) per day for each day of

permitted use, not to exceed thirty (30) consecutive days. The

total number of days for all the special permits may not exceed

one hundred (100) days in any calendar year. A special permit

shall entitle the holder to engage in the sale by the glass, by

the container, by multiple-container lots, by the bottle or in

case lots of alcoholic cider, fermented fruit beverages, mead or

wine produced by the permittee under the authority of a limited

winery license. Holders of special permits may provide tasting

samples [of wines] in individual portions not to exceed one

fluid ounce. Samples at alcoholic cider, fermented fruit

beverage, mead, wine and food expositions may be sold or offered

free of charge. Except as provided herein, limited wineries

utilizing special permits shall be governed by all applicable

provisions of this act as well as by all applicable regulations

or conditions adopted by the board.

[For the purposes of this clause, "alcoholic cider, fermented

fruit beverage, mead, wine and food expositions" are defined as

affairs held indoors or outdoors with the intent of promoting

20230HB0874PN0850 - 18 -

Pennsylvania products by educating those in attendance of the

availability, nature and quality of Pennsylvania-produced

alcoholic ciders, fermented fruit beverages, mead and wines in

conjunction with suitable food displays, demonstrations and

sales. Alcoholic cider, fermented fruit beverage, mead, wine and

food expositions may also include activities other than

alcoholic cider, fermented fruit beverage, mead, wine and food

displays, including arts and crafts, musical activities,

cultural exhibits, agricultural exhibits and farmers markets.]

(4.1) At the discretion of the board, obtain a farmers

market permit. The permit shall entitle the holder to

participate in more than one farmers market at any given time

and an unlimited number throughout the year and sell alcoholic

cider, fermented fruit beverages, mead or wine produced under

the authority of the underlying limited winery license by the

container, by multiple-container lots, by the bottle or in case

lots. Samples not to exceed one fluid once per brand [of mead or

wine] may be offered free of charge. A farmers market permit

shall be issued upon proper application and payment of an annual

fee of two hundred fifty dollars ($250). A permit holder may

participate in more than one farmers market at any given time.

Sales by permit holders shall take place during the standard

hours of operation of the farmers market. Written notice of the

date, times and location the permit is to be used shall be

provided by the permit holder to the enforcement bureau at least

two (2) weeks prior to the event. Except as provided in this

subsection, limited wineries utilizing farmers market permits

shall be governed by all applicable provisions of this act as

well as by all applicable regulations adopted by the board.

(5) Do either of the following:

20230HB0874PN0850 - 19 -

(i) Apply for and hold a hotel liquor license, a restaurant

liquor license or a malt and brewed beverages retail license to

sell for consumption at the restaurant or limited winery on the

licensed winery premises, liquor, alcoholic cider, wine and malt

or brewed beverages regardless of the place of manufacture under

the same conditions and regulations as any other hotel liquor

license, restaurant liquor license or malt and brewed beverages

retail license.

* * *

(6) * * *

(iv) The [department] board is authorized to promulgate

regulations requiring the filing of periodic reports by limited

wineries to ensure compliance with the provisions of this

section.

(6.1) Sell food for consumption on or off the licensed

premises and at the limited winery's additional board-approved

locations and sell by the glass, at the licensed premises and at

the limited winery's additional board-approved locations, wine,

mead, alcoholic ciders and fermented fruit beverages that may

otherwise be sold by the bottle or container. In addition, the

holder of a limited winery license may sell for consumption on

the licensed premises and at the limited winery's additional

board-approved locations, liquor produced by a licensed

distillery or limited distillery, wine, alcoholic cider produced

by the limited winery or a farm cidery and fermented fruit

beverages produced by another limited winery and malt or brewed

beverages produced by a licensed brewery. The combined sales of

wine, alcoholic cider and fermented fruit beverages produced by

another limited winery or farm cidery, malt or brewed beverages

and liquor may not, on a yearly basis, exceed fifty per centum

20230HB0874PN0850 - 20 -

of the on-premises sales of the limited winery's own sales of

wine, alcoholic cider and fermented fruit beverages for the

preceding calendar year: however, if a limited winery did not

operate for an entire calendar year during the preceding year,

then its combined sales of wine, alcoholic cider and alcohol

produced by another limited winery, malt or brewed beverages and

liquor may not, on a yearly basis, exceed fifty per centum of

the on-premises sales of the limited winery's own wine,

alcoholic cider and fermented fruit beverages for that year.

* * *

[(b) The total production of alcoholic ciders, fermented

fruit beverages, mead, wine and wine coolers by a limited winery

may not exceed two hundred thousand (200,000) gallons per year.

"Agricultural commodity" shall include any of the following:

agricultural, apicultural, horticultural, silvicultural and

viticultural commodities.

"Farmers market" shall include any building, structure or

other place:

(1) owned, leased or otherwise in the possession of a

person, municipal corporation or public or private organization;

(2) used or intended to be used by two or more farmers or an

association of farmers, who are certified by the Department of

Agriculture of the Commonwealth to participate in the Farmers'

Market Nutrition Program subject to 7 CFR Pt. 249 (relating to

Senior Farmers' Market Nutrition Program (SFMNP)), for the

purpose of selling agricultural commodities produced in this

Commonwealth directly to consumers;

(3) which is physically located within this Commonwealth;

and

20230HB0874PN0850 - 21 -

(4) which is not open for business more than twelve hours

each day.]

Section 505.4. Limited Distilleries and Distilleries.--* * *

(b) (1) 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 or farm cidery, 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, alcoholic cider, malt

or brewed beverages and liquor produced by another licensed

20230HB0874PN0850 - 22 -

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, alcoholic cider, 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.

* * *

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 or farm cidery,

20230HB0874PN0850 - 23 -

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, alcoholic

cider, 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, alcoholic cider, 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.

* * *

Section 5. The act is amended by adding a section to read:

Section 505.5. Farm Cideries.--(a) In the interest of

promoting tourism and recreational development in Pennsylvania,

a holder of a farm cidery license may:

(1) Produce and sell alcoholic cider that is derived from no

less than sixty per centum fresh juice of apples or pears,

subject to the exceptions provided under this section.

(2) Sell:

(i) On the licensed premises, alcoholic cider produced by

the licensed farm cidery or purchased in bulk in bond from

another licensed farm cidery or from a licensed limited winery

producing alcoholic cider under such conditions and regulations

as the board may enforce.

(ii) Alcoholic cider produced by the licensed farm cidery or

purchased in bulk in bond from another licensed farm cidery or

from a licensed limited winery producing alcoholic cider to the

20230HB0874PN0850 - 24 -

following:

(A) A brewery.

(B) A club.

(D) A distributor.

(E) A hotel.

(F) An importing distributor.

(G) An individual.

(H) A farm cidery.

(I) A limited winery.

(J) A public service liquor licensee.

(K) A restaurant.

(3) Separately or in conjunction with another licensed farm

cidery or licensed limited winery producing alcoholic cider,

sell alcoholic cider produced by the farm cidery or limited

winery at no more than five (5) board-approved locations other

than the licensed premises, with no bottling or production

requirement at those additional board-approved locations and

under such conditions and regulations as the board may enforce,

to the following:

(i) A brewery.

(ii) A club.

(iii) A distillery.

(iv) A distributor.

(v) A hotel.

(vi) An importing distributor.

(vii) An individual.

(viii) A farm cidery.

(ix) A limited winery.

(x) A public service liquor licensee.

20230HB0874PN0850 - 25 -

(xi) A restaurant.

(4) At the discretion of the board, obtain a special permit

to participate in alcoholic cider, fermented fruit beverage,

mead, wine and food expositions off the licensed premises. A

special permit shall be issued upon proper application and

payment of a fee of thirty dollars ($30) per day for each day of

permitted use, not to exceed thirty (30) consecutive days. The

total number of days for all the special permits may not exceed

one hundred (100) days in any calendar year. A special permit

shall entitle the holder to engage in the sale by the glass, by

the container, by multiple-container lots or in case lots of

alcoholic cider produced by the permittee under the authority of

a farm cidery license. Holders of special permits may provide

tasting samples of alcoholic cider in individual portions not to

exceed one (1) fluid ounce. Samples offered of alcoholic cider,

fermented fruit beverage, mead, wine and food expositions may be

sold or offered free of charge. Except as provided herein, a

farm cidery utilizing a special permit shall be governed by all

applicable provisions of this act as well as by all applicable

regulations or conditions adopted by the board.

(5) At the discretion of the board, obtain a farmers market

permit. A farmers market permit shall entitle the holder to

participate in more than one (1) farmers market at any given

time and an unlimited number throughout the year and sell

alcoholic cider produced under the authority of the underlying

farm cidery license by the container, by multiple-container lots

or in case lots. Samples not to exceed one (1) fluid ounce per

brand of alcoholic cider may be offered free of charge. A

farmers market permit shall be issued upon proper application

and payment of an annual fee of two hundred fifty dollars

20230HB0874PN0850 - 26 -

($250). A permit holder may participate in more than one (1)

farmers market at any given time. Sales by a permit holder shall

take place during the standard hours of operation of the farmers

market. Written notice of the date, times and location the

farmers market permit is to be used shall be provided by the

permit holder to the enforcement bureau at least two (2) weeks

prior to the use of the permit. Except as provided in this

section, a farm cidery utilizing a farmers market permit shall

be governed by all applicable provisions of this act as well as

by all applicable regulations adopted by the board.

(6) Do either of the following:

(i) Apply for and hold a hotel liquor license, a restaurant

liquor license or a malt and brewed beverages retail license to

sell for consumption at the restaurant or farm cidery on the

licensed farm cidery premises, liquor, alcoholic cider and malt

or brewed beverages regardless of the place of manufacture under

the same conditions and regulations as any other hotel liquor

license, restaurant liquor license or malt and brewed beverages

retail license.

(ii) Apply for and hold a restaurant liquor license for use

at one of the additional board-approved locations referenced

under clause (3), as long as such location does not serve as an

additional board-approved location for any other manufacturer.

(7) Secure a permit from the board to allow the holder of

the farm cidery license to use up to twenty-five per centum

apple and pear permitted fruit in the current year's production.

Each permit is valid only for the calendar year in which it is

issued. The following shall apply:

(i) The fee for a permit to import and use apple and pear

permitted fruit shall be in an amount to be determined by the

20230HB0874PN0850 - 27 -

board.

(ii) The board is authorized to promulgate regulations

requiring the licensed farm cidery to file periodic reports to

ensure compliance with the provisions of this clause.

(8) Sell food for consumption on or off the licensed

premises and at the additional board-approved locations

referenced under clause (3).

(9) Sell by the glass, at the licensed premises and at

expositions off the licensed premises under clause (4),

alcoholic cider that may otherwise be sold by the container.

(10) As follows:

(i) Sell for consumption on the licensed premises and at the

additional board-approved locations under paragraph (3):

(A) Liquor produced by a licensed distillery or limited

distillery.

(B) Wine, alcoholic cider and malt or brewed beverages

produced by a licensed brewery, a licensed limited winery or a

licensed farm cidery.

(ii) The combined sales of products under subclause (i) may

not, on a yearly basis, exceed fifty per centum of the on-

premises sales of the farm cidery's own alcoholic cider for the

preceding calendar year.

(11) Sell products under clause (10)(i) only between the

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

postmeridian. The farm cidery also may request approval from the

board to extend sales hours in individual locations at other

times during the year or beyond the limits set forth in this

clause. The request shall be made in writing to the board's

Office of the Chief Counsel and shall detail the exact locations

where sales hours are proposed to be extended, the proposed

20230HB0874PN0850 - 28 -

hours and dates of extended operation and the reason for the

proposed extended hours.

(12) Store alcoholic cider produced by the farm cidery at no

more than two (2) board-approved locations other than the

licensed premises and those premises specified under clause (3),

with no bottling or production requirement at those additional

locations and under such conditions and regulations as the board

may enforce. If two (2) or more businesses will operate out of

the same storage facility, the farm cidery must designate

specific and distinct areas for its storage. The farm cidery's

designated storage area must be secured and no one other than

the licensee and the licensee's employees may be allowed access

to the storage area. No board-approved manager will be necessary

for the storage facility. The farm cidery must fill out an

application for such an additional board-approved storage

location, and such location shall count as one of the two

permitted for the farm cidery. The farm cidery is responsible

for keeping only its own complete records. The farm cidery may

be cited for a violation of the recordkeeping requirements of

sections 512 and 513 pertaining to its own records only.

(13) Label alcoholic cider as "Pennsylvania cider" only if

at least seventy-five per centum of the fresh juice used in the

production of the alcoholic cider is derived from an

agricultural commodity grown in Pennsylvania.

Section 6. Sections 508(a) and 512 of the act are amended to

read:

Section 508. License Fees.--(a) The annual fee for every

license issued to a limited winery or a winery shall be as

prescribed in section 614-A of the act of April 9, 1929

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

20230HB0874PN0850 - 29 -

The fee for every license issued to a distillery (manufacturer)

shall be as prescribed in section 614-A of "The Administrative

Code of 1929." The annual fee for all other licenses shall be as

prescribed in section 614-A of "The Administrative Code of

1929." The annual fee for every license issued to a farm cidery

shall be the same as the fee for a license issued to a limited

winery as prescribed in section 614-A of "The Administrative

Code of 1929." Whenever any checks issued in payment of filing

and/or license fees shall be returned to the board as

dishonored, the board shall charge a fee of five dollars ($5.00)

per hundred dollars or fractional part thereof, plus all protest

fees, to the maker of such check submitted to the board. Failure

to make full payment or pay the face amount of the check in full

and all charges thereon as herein required within ten days after

demand has been made by the board upon the maker of the check,

the license of such person shall not be renewed for the license

period or validated for any interim period for such year.

* * *

Section 512. Records To Be Kept.--Every person holding a

license issued under the provisions of this article shall keep

on the licensed premises daily permanent records which shall

show, (a) the quantities of any alcohol, alcoholic cider or

liquor manufactured, produced, distilled, developed, denatured,

redistilled, recovered, reused, stored in bond, stored as bailee

for hire, received or used in the process of manufacture by him,

and of all other material used in manufacturing or developing

any alcohol or liquor; (b) the sales or other disposition of any

alcohol, alcoholic cider, liquor or malt or brewed beverages if

covered by said license; (c) the quantities thereof, if any,

stored in bond, stored for hire, or transported for hire by or

20230HB0874PN0850 - 30 -

for the licensee; and (d) the names and addresses of the

purchasers or other recipients thereof: Provided, however, That

persons holding licenses issued under the provisions of this

article for the transportation for hire of any alcohol, liquor

or malt or brewed beverages shall not be required to keep the

above records, but shall keep daily permanent records showing

the names and addresses of the persons from whom any alcohol,

liquor or malt or brewed beverage was received and to whom

delivered, and such other permanent records as the board shall

prescribe: Provided, however, That a sales invoice may not be

required for purchases made at a limited winery or at a farm

cidery by a private individual unless the purchase is for

greater than 16 liters in a single transaction.

Section 7. This act shall take effect in 60 days.

20230HB0874PN0850 - 31 -