1951 Pa. Act 21 | Pennsylvania Act 1951-21 — LIQUOR CODE

Act text

| LIQUOR CODE | | | | --- | --- | --- | | | Act of Apr. 12, 1951, P.L. 90, No. 21 | Cl. 47 |

(Reenacted and amended June 29, 1987, P.L.32, No.14)

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.

(Title reenacted June 29, 1987, P.L.32, No.14)

TABLE OF CONTENTS

ARTICLE I. PRELIMINARY PROVISIONS.

Section 101. Short Title.

Section 102. Definitions.

Section 103. Saving Clause.

Section 104. Interpretation of Act.

ARTICLE II. PENNSYLVANIA LIQUOR CONTROL BOARD.

Section 201. Appointment of Members; Terms; Salaries.

Section 202. Qualifications of Members.

Section 203. Chairman of Board.

Section 204. Secretary of Board.

Section 205. Bonds Required of Members and Secretary (Deleted by amendment).

Section 206. Board Subject to Administrative Code.

Section 206.1.Board and Enforcement Bureau Subject to State Ethics and Adverse Interest Acts.

Section 207. General Powers of Board.

Section 208. Specific Subjects on Which Board May Adopt Regulations.

Section 209. Officers and Investigators of the Board to be Peace Officers; Powers (Repealed).

Section 210. Restrictions on Members of the Board and Certain Employes of Commonwealth.

Section 211. Enforcement.

Section 211.1.Legal Opinions.

Section 212. Office of Administrative Law Judge.

Section 213. Bureau of Consumer Relations.

Section 214. Prohibitions.

Section 215. Wine and Spirits Marketing.

Section 216. Investigative Unit.

Section 217. Biennial Reports.

Section 218. Stop-and-Go Legislative Task Force.

ARTICLE III. PENNSYLVANIA LIQUOR STORES.

Section 301. Board to Establish State Liquor Stores.

Section 302. Selection of Personnel.

Section 303. Management of Pennsylvania Liquor Stores.

Section 304. When Sales May Be Made at Pennsylvania Liquor Stores.

Section 305. Sales by Pennsylvania Liquor Stores.

Section 305.1.Confectionery Containing Alcohol or Liquor.

Section 306. Audits by Auditor General.

ARTICLE IV. LICENSES AND REGULATIONS; LIQUOR, ALCOHOL AND MALT AND BREWED BEVERAGES.

(A) Liquor and Alcohol (Not Including Manufacturers).

Section 401. Authority to Issue Liquor Licenses to Hotels, Restaurants and Clubs.

Section 402. License Districts; License Period; Hearings.

Section 403. Applications for Hotel, Restaurant and Club Liquor Licenses.

Section 404. Issuance, Transfer or Extension of Hotel, Restaurant and Club Liquor Licenses.

Section 405. License Fees.

Section 406. Sales by Liquor Licensees; Restrictions.

Section 406.1.Secondary Service Area.

Section 407. Sale of Malt or Brewed Beverages by Liquor Licensees.

Section 408. Public Service Liquor Licenses.

Section 408.1.Trade Show and Convention Licenses (Repealed).

Section 408.2.City-Owned Stadia (Repealed).

Section 408.3.Performing Arts Facilities (Repealed).

Section 408.4.Special Occasion Permits.

Section 408.5.Licenses for City-owned Art Museums, Cities First Class; Art Museums Maintained by Certain Non-profit Corporations in Cities of the Second Class; Non-profit Science and Technology Museums in Cities of the First Class and in Cities of the Second Class; and Regional History Centers in Cities of the Second Class (Repealed).

Section 408.6.Performing Arts Facilities in Certain Municipalities (Repealed).

Section 408.7.Performing Arts Facilities in First and Second Class Cities (Repealed).

Section 408.8.Trade Shows and Convention Licenses; Cities of the Third Class (Repealed).

Section 408.9.Stadium and Restaurant Licenses in Third Class Cities (Repealed).

Section 408.10.Recreation Facilities (Repealed).

Section 408.11.Seasonal Outdoor Cafe (Repealed).

Section 408.12.Wine and Spirits Auction Permits.

Section 408.13.Transfer of Restaurant Licenses to Deteriorated Areas (Repealed).

Section 408.14.Multipurpose Cultural and Science Facilities Licenses (Repealed).

Section 408.15.Multipurpose County-owned Arena and Convention Center License (Repealed).

Section 408.16.National Event Permit (Expired).

Section 408.17.Philadelphia 250 Permits (Expired).

Section 409. Sacramental Wine Licenses; Fees; Privileges; Restrictions.

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

Section 411. Interlocking Business Prohibited.

Section 412. Public Venue License.

Section 412.1.Special Sporting Event Permits for Public Venue Licensees.

Section 413. Performing Arts Facility License.

Section 414. Continuing Care Retirement Community Retail Licenses.

Section 415. Wine Expanded Permits.

Section 415.1.Ready-to-Drink Cocktail Permit.

Section 416. Casino Liquor License.

Section 417. Extension of Licensed Service Area and Issuance of Off-premises Catering Permits.

(B) Malt and Brewed Beverages and Ready-to-Drink Cocktails (Including Manufacturers).

Section 431. Malt and Brewed Beverages Manufacturers', Distributors' and Importing Distributors' Licenses.

Section 431.1.Malt and Brewed Beverages Alternating Brewers' Licenses.

Section 431.2.Authority to Acquire Ready-to-Drink Cocktail Permits.

Section 432. Malt and Brewed Beverages Retail Licenses.

Section 433. Public Service Licenses.

Section 433.1.Stadium or Arena Permits (Repealed).

Section 434. License Period.

Section 435. Filing of Applications for Distributors', Importing Distributors' and Retail Dispensers' Licenses; Filing Fee.

Section 436. Application for Distributors', Importing Distributors' and Retail Dispensers' Licenses.

Section 437. Prohibitions Against the Grant of Licenses.

Section 438. Number and Kinds of Licenses Allowed Same Licensee.

Section 439. Malt or Brewed Beverage License Fees.

Section 440. Sales by Manufacturers of Malt or Brewed Beverages; Minimum Quantities.

Section 441. Distributors' and Importing Distributors' Restrictions on Sales, Storage, Etc.

Section 442. Retail Dispensers' Restrictions on Purchases and Sales.

Section 443. Interlocking Business Prohibited.

Section 444. Malt or Brewed Beverages Manufactured Outside This Commonwealth.

Section 445. Brand Registration.

Section 446. Breweries.

Section 446.1.Pennsylvania Malt and Brewed Beverages Industry Promotion Board.

Section 447. Price Changes of Malt and Brewed Beverages.

Section 448. Monthly Shipment of Malt or Brewed Beverages.

Section 461. Limiting Number of Retail Licenses To Be Issued In Each County.

Section 461.1.Incorporated Units of National Veterans' Organizations.

Section 462. Licensed Places May Be Closed During Period of

Emergency.

Section 462.1.Safekeeping.

Section 463. Places of Amusement Not To Be Licensed; Penalty (Deleted by amendment).

Section 464. Hearings Upon Refusal of Licenses, Renewals or Transfers; Appeals.

Section 465. All Licensees to Furnish Bond (Deleted by amendment).

Section 466. Disposition of Cash and Securities Upon Forfeiture of Bond (Deleted by amendment).

Section 467. Display of License.

Section 468. Licenses Not Assignable; Transfers.

Section 469. Applications for Transfers; Fees.

Section 470. Renewal of Licenses; Temporary Provisions for Licensees in Armed Service.

Section 470.1.Renewal of Hotel Liquor Licenses; Special Provisions (Repealed).

Section 470.2.Exchange of Hotel Liquor License; Special Provisions (Repealed).

Section 470.3.License Auction.

Section 471. Revocation and Suspension of Licenses; Fines.

Section 471.1.Responsible Alcohol Management.

Section 472. Local Option.

Section 472.1.Clubs.

Section 472.2.Granting of Liquor Licenses in Certain Municipalities.

Section 472.3.Exchange of Certain Licenses.

Section 472.4.Privately-Owned Public Golf Courses (Deleted by amendment).

Section 472.5.Privately Owned Golf Courses Located in More Than One County; Equine Centers.

Section 473. Public Record.

Section 474. Surrender of Club Licenses for Benefit of Licensees (Repealed).

Section 474.1.Surrender of Restaurant, Eating Place Retail Dispenser, Hotel, Club, Catering Club, Importing Distributor and Distributor License for Benefit of Licensee.

Section 475. Establishments Proximate to Interstate Highways Not To Be Licensed (Deleted by amendment).

Section 478. Renewal of Amusement Permit; Renewal of Permit for Sales for Off-Premises Consumption in Cities of the First Class.

Section 479. Point System for Certain Licensees (Expired).

Section 480. Removal of Points (Expired).

Section 481. School, Mandatory Safekeeping or Revocation of License Privilege on Accumulation of Points (Expired).

Section 482. Points Follow Transfer of License (Expired).

Section 483. Expiration of Point System.

(C.1) Shipment of Wine.

Section 488. Shipment of Wine.

Section 488.1.Pennsylvania Wine Marketing and Research Program Board.

(D) Unlawful Acts; Penalties.

Section 491. Unlawful Acts Relative to Liquor, Alcohol and Liquor Licensees.

Section 492. Unlawful Acts Relative to Malt or Brewed Beverages and Licensees.

Section 492.1.Hours of Operation Relative to Manufacturers, Importing Distributors and Distributors.

Section 493. Unlawful Acts Relative to Liquor, Malt and Brewed Beverages and Licensees.

Section 493.1.Rights of Municipalities Preserved.

Section 494. Penalties.

Section 495. Identification Cards; Licensees and State Liquor Store Employes Saved From Prosecution.

Section 496. Reporting of Worthless Checks.

Section 497. Liability of Licensees.

Section 498. Unlawful Advertising.

Section 499. Premises to be Vacated by Patrons.

ARTICLE V. DISTILLERIES, WINERIES, BONDED WAREHOUSES, BAILEES FOR HIRE AND TRANSPORTERS FOR HIRE.

Section 501. License Required.

Section 502. Exemptions.

Section 502.1.Production of Denatured Ethyl Alcohol (Repealed).

Section 503. Qualifications for License.

Section 504. Applications; Filing Fees.

Section 505. Licenses Issued.

Section 505.1.Bonded Warehouse License Privilege Restrictions.

Section 505.2.Limited Wineries.

Section 505.3.Distilleries (Deleted by amendment).

Section 505.4.Limited Distilleries and Distilleries.

Section 505.5.Pennsylvania Distilled Spirits Industry Promotion Board.

Section 506. Bonds Required (Deleted by amendment).

Section 507. Hearings on Licenses and Refusals.

Section 508. License Fees.

Section 509. License Must Be Posted; Business Hours.

Section 510. Containers To Be Labeled.

Section 511. License To Specify Each Place Authorized For Use.

Section 512. Records To Be Kept.

Section 513. Premises and Records Subject To Inspection.

Section 514. Suspension and Revocation of Licenses.

Section 515. Appeals.

Section 516. Compromise Penalty In Lieu of Suspension.

Section 517. Expiration of Licenses; Renewals.

Section 518. Unlawful Acts.

Section 519. Penalties.

ARTICLE VI. PROPERTY ILLEGALLY POSSESSED OR USED; FORFEITURES; NUISANCES.

(A) Forfeitures.

Section 601. Forfeiture of Property Illegally Possessed or Used.

Section 602. Forfeiture Proceedings.

Section 603. Disposition of Forfeited Property.

Section 604. Motor Vehicle Licenses To Be Revoked.

Section 605. Application of Subdivision.

(B) Nuisances.

Section 611. Nuisances; Actions To Enjoin.

ARTICLE VII. DEALING IN DISTILLERY BONDED WAREHOUSE CERTIFICATES.

(A) Preliminary Provisions.

Section 701. Definitions and Interpretation.

(B) Permits.

Section 702. Unlawful to Act as a Distillery Certificate Broker or to Buy or Sell Distillery Bonded Warehouse Certificate Without a Permit.

Section 703. Authority to Issue Permits to Distillery Certificate Brokers.

Section 704. Application for Permit; Filing Fee.

Section 705. Issuance of Permits.

Section 706. Office or Place of Business to be Maintained.

Section 707. Permit Fee; Permits Not Assignable or Transferable; Display of Permit; Term of Permit.

Section 708. Records to be Kept.

Section 709. Renewal of Permits.

Section 710. Permit Hearings; Appeals From Refusal of the Board to Issue or Renew Permits.

Section 712. Revocation and Suspension of Permit.

Section 721. Unlawful to Act as Agent or to Employ Agents Without Registration.

Section 722. Registered Agents.

Section 723. Registration Fee.

Section 724. Registration and Issuance of Identification Card.

Section 725. Hearings Upon Refusal of the Board; Appeals.

Section 726. Revocation and Suspension of Agents' Registrations.

Section 727. Identification Cards.

(D) Exemptions.

Section 731. Bank and Trust Companies and Other Persons.

Section 732. Distillers, Rectifiers and Importers.

Section 733. Certificates Owned Since July 24, 1939.

(E) Administration and Enforcement.

Section 741. Duties of the Board.

(F) Fines and Penalties.

Section 751. Penalties.

ARTICLE VIII. DISPOSITION OF MONEYS COLLECTED UNDER PROVISIONS OF ACT.

Section 801. Moneys Paid Into Liquor License Fund and Returned to Municipalities.

Section 802. Moneys Paid Into The State Stores Fund for Use of the Commonwealth.

Section 803. Alcohol Tax Moneys Paid Into General Fund.

ARTICLE IX. REPEALS (Repealed).

Section 901. Acts and Parts of Acts Repealed (Repealed).

Section 902. General Repeal Clause (Repealed).

ARTICLE X. MISCELLANEOUS PROVISIONS.

Section 1001. Construction and Applicability.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

ARTICLE I.

PRELIMINARY PROVISIONS.

Section 101. Short Title.--This act shall be known and may be cited as the "Liquor Code."

Section 102. Definitions.--The following words or phrases, unless the context clearly indicates otherwise, shall have the meanings ascribed to them in this section:

"Alcohol" shall mean ethyl alcohol of any degree of proof originally produced by the distillation of any fermented liquid, whether rectified or diluted with or without water, whatever may be the origin thereof, and shall include powdered alcohol and synthetic ethyl alcohol, but shall not mean or include ethyl alcohol, whether or not diluted, that has been denatured or otherwise rendered unfit for beverage purposes. (Def. amended June 8, 2016, P.L.273, No.39)

"Alcoholic cider" shall mean a beverage which may contain carbonation in an amount not to exceed six and four tenths grams per liter, produced through alcoholic fermentation, which is primarily derived from apples, apple juice concentrate and water or pears, pear juice concentrate and water, consisting of at least one-half of one per centum, but not greater than eight and one-half per centum, alcohol by volume and sold or offered for sale as alcoholic cider and not as a wine or as a substitute for wine, in bottles, cases, kegs, cans or other suitable containers of the type used for the sale of malt or brewed beverages in this Commonwealth. (Def. amended Nov. 25, 2020, P.L.1222, No.125)

"Alcohol service personnel" shall mean any employe of a licensee such as a bartender, waiter or, in the case of a distributor or importing distributor, a salesperson whose primary responsibility includes the resale, furnishing or serving of liquor or malt or brewed beverages. It shall also mean any employe, such as a doorperson, whose primary responsibility is to ascertain the age of individuals who are attempting to enter the licensed premises. (Def. added Dec. 20, 2000, P.L.992, No.141)

"Alcohol vaporizing device" shall mean any device, machine or process which mixes spirits, liquors or other alcoholic products with oxygen or any other gas to produce a vaporized product for consumption by inhalation. (Def. added July 7, 2006, P.L.584, No.84)

"Alternating brewer" shall mean any person, association, corporation or other business entity licensed by the board to produce malt or brewed beverages at premises that are licensed by another entity under a Pennsylvania manufacturer's license. (Def. added Feb. 21, 2002, P.L.103, No.10)

"Arts council" shall mean a tax-exempt organization which promotes the visual arts, performing arts or both and which receives funding under the Local Arts Services Program administered by the Pennsylvania Council on the Arts. (Def. added Dec. 9, 2002, P.L.1653, No.212)

"Association" shall mean a partnership, limited partnership or any form of unincorporated enterprise owned by two or more persons.

"Automobile racetrack" shall mean a track used principally for holding automobile races which has a seating capacity in excess of ten thousand. (Def. amended July 7, 2006, P.L.584, No.84)

"Board" shall mean the Pennsylvania Liquor Control Board.

"Bonded warehouse" shall mean and include all places and warehouses legally established under the provisions of the acts of Congress and the administrative provisions of the internal revenue laws of the Government of the United States of America, for the storage, concentration, distribution and holding in bond, (a) of whiskey and any other potable distilled spirits, except ethyl alcohol, when used in Article VII entitled "Distillery Bonded Warehouse Certificates" and, (b) of alcohol or liquor when otherwise used.

"Case" shall mean a package prepared by the manufacturer for sale or distribution of twelve or more original containers totaling two hundred sixty-four or more fluid ounces of malt or brewed beverages excepting those packages containing twenty-four or more original containers each holding seven fluid ounces or more. (Def. amended July 7, 2006, P.L.584, No.84)

"Catered function" shall mean the furnishing of food prepared on the premises or brought onto the premises already prepared in conjunction with alcoholic beverages for the accommodation of a person or an identifiable group of people, not the general public, who made arrangements for the function at least thirty days in advance. (Def. amended July 5, 2012, P.L.1007, No.116)

"Club" shall mean any reputable group of individuals associated together not for profit for legitimate purposes of mutual benefit, entertainment, fellowship or lawful convenience, having some primary interest and activity to which the sale of liquor or malt and brewed beverages shall be only secondary, which, if incorporated, has been in continuous existence and operation for at least one year, and if first licensed after June sixteenth, one thousand nine hundred thirty-seven, shall have been incorporated in this Commonwealth, and, if unincorporated, for at least ten years, immediately preceding the date of its application for a license under this act, and which regularly occupies, as owner or lessee, a clubhouse or quarters for the use of its members. Continuous existence must be proven by satisfactory evidence. The board shall refuse to issue a license if it appears that the charter is not in possession of the original incorporators or their direct or legitimate successors. The club shall hold regular meetings, conduct its business through officers regularly elected, admit members by written application, investigation and ballot, and charge and collect dues from elected members, and maintain such records as the board shall from time to time prescribe, but any such club may waive or reduce in amount, or pay from its club funds, the dues of any person who was a member at the time he was inducted into the military service of the United States or was enrolled in the armed forces of the United States pursuant to any selective service act during the time of the member's actual service or enrollment. The term includes a privately-owned private golf course.

"Combination package" shall mean a package consisting of liquor or alcohol and a nonliquor or nonalcohol item as packaged by the manufacturer or its representative. (Def. added Feb. 21, 2002, P.L.103, No.10)

"Commercial and mixed-use overlay project" shall mean a planned development:

(1) situated on at least twenty-five acres;

(2) constructed since January 1, 2019;

(3) with at least two hundred seventy-five thousand square feet of actual or proposed development;

(4) with a mix of commercial and residential uses; and

(5) that is adjacent to an existing hotel property with at least ninety rooms.

(Def. added Nov. 21, 2019, P.L.635, No.86)

"Container" shall mean and include any receptacle, vessel or form of package, tank, vat, cask, barrel, drum, keg, can, bottle or conduit used or capable of use for holding, storing, transferring or shipment of alcohol, liquor or malt or brewed beverages.

"Continuing care retirement community" shall mean the building or complex operated by a nonprofit entity incorporated under 15 Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations) which primarily houses persons over the age of sixty-two. At least one hundred persons residing in the building or complex must be over the age of sixty-two. (Def. added Feb. 21, 2002, P.L.103, No.10)

"Corporation" shall mean a corporation or joint-stock association organized under the laws of this Commonwealth, the United States, or any other state, territory, or foreign country or dependency.

"Denatured alcohol" shall mean and include all alcohol or any compound thereof which by the admixture of such denaturing material or materials is rendered unfit for use as a beverage. The term shall not include powdered alcohol. (Def. amended June 8, 2016, P.L.273, No.39)

"Denaturing plant" shall mean and include the premises of a distillery used exclusively for the denaturization of alcohol, either specially or completely, by the admixture of such denaturing materials as shall render the alcohol or any compound in which it is authorized to be used unfit for use as a beverage.

"Direct wine shipper" shall mean a person licensed as a producer of wine by the board or by another state or country that accepts orders placed for wine from within this Commonwealth. The term includes a limited winery. (Def. amended June 8, 2016, P.L.273, No.39)

"Distillery" shall mean and include any premises or plant wherein alcohol or liquor is manufactured, made and distilled from raw materials, blended or rectified, or any place wherein alcohol or liquor is produced by any method suitable for the production of alcohol. The term shall not include a "winery" where alcohol is derived from by-products of wine production by distillation for the sole purpose of adding to the fermented products to fortify the same.

"Distillery Bonded Warehouse Certificate" shall mean a certificate, receipt, contract or other document given upon the storage of whiskey or any other potable distilled spirits, except ethyl alcohol, in a bonded warehouse, and evidencing the ownership of such whiskey or other potable distilled spirits.

"Distillery certificate broker" shall mean and include every person who engages directly or through an agent in selling, purchasing, exchanging, offering for sale or delivery, or entering into agreements for the purchase, sale or exchange, or soliciting subscriptions to or orders for, or undertaking to dispose of, or dealing in any manner in, distillery bonded warehouse certificates.

"Distributor" shall mean any person licensed by the board to engage in the purchase only from Pennsylvania manufacturers and from importing distributors and the resale of malt or brewed beverages, except to importing distributors and distributors. (Def. amended Nov. 15, 2016, P.L.1286, No.166)

"Eating place" shall mean a premise where food is regularly and customarily prepared and sold, having a total area of not less than three hundred square feet available to the public in one or more rooms, other than living quarters, and equipped with tables and chairs, including bar seats, accommodating thirty persons at one time. The board shall, by regulation, set forth what constitutes tables and chairs sufficient to accommodate thirty persons at one time. (Def. amended Feb. 21, 2002, P.L.103, No.10 and Dec. 9, 2002, P.L.1653, No.212)

"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 26 U.S.C. § 501(c)(6) (relating to exemption from tax on corporations, certain trusts, etc.) whose purpose is to support business and industry, a nonprofit organization as defined under 26 U.S.C. § 501(c)(3) or (6) that is located in a city of the third class in a county of the fifth class, 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 tourism 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 brewery which has been issued a license to manufacture malt or brewed beverages and has been in existence for at least 100 years, 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, a museum operated by a nonprofit corporation in a city of the second class A, 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 26 U.S.C. § 501(c)(3) or (6). (Def. amended Dec. 22, 2025, P.L.337, No.56)

"Enforcement bureau" shall mean the Bureau of Liquor Control Enforcement of the Pennsylvania State Police.

"Equine center" shall mean a facility of at least two hundred fifty acres in size which hosts equestrian shows and which has a primary building with permanent seating for at least six thousand (6,000) people. (Def. added Dec. 8, 2004, P.L.1810, No.239)

"Fermented fruit beverage" shall mean a beverage which may contain carbonation in an amount not to exceed six and four tenths grams per liter, produced through alcoholic fermentation of fruit, fruit juice, fruit juice concentrate and water with or without flavorings, consisting of at least one-half of one per centum, but not greater than eight and one-half per centum, alcohol by volume and sold or offered for sale not as a wine or a substitute for wine, in bottles, cases, kegs, cans or other suitable containers of the type used for the sale of malt or brewed beverages in this Commonwealth. (Def. amended Nov. 25, 2020, P.L.1222, No.125)

"Fraternal benefit society" shall mean a society as defined in the act of December 14, 1992 (P.L.835, No.134), known as the "Fraternal Benefit Societies Code." (Def. added July 2, 1993, P.L.429, No.61)

"Golf course" shall mean a course having a minimum of nine holes and a total length of at least twenty-five hundred yards. The term includes a privately-owned private golf course.

"Growler" shall mean a refillable container for malt or brewed beverages that can be resealed. (Def. added Nov. 15, 2016, P.L.1286, No.166)

"Happy hour" shall mean the period of time during which a licensee discounts alcoholic beverages. (Def. added June 28, 2011, P.L.55, No.11)

"Holiday" (Def. deleted by amendment June 8, 2016, P.L.273, No.39)

"Hotel" shall mean any reputable place operated by responsible persons of good reputation where the public may, for a consideration, obtain sleeping accommodations and meals and which, in a city, has at least ten, and in any other place at least six, permanent bedrooms for the use of guests, a public dining room or rooms operated by the same management accommodating at least thirty persons at one time, and a kitchen, apart from the public dining room or rooms, in which food is regularly prepared for the public.

"Importing distributor" shall mean any person licensed by the board to engage in the purchase from manufacturers and other persons located outside this Commonwealth and from persons licensed as manufacturers of malt or brewed beverages and importing distributors under this act, and the resale of malt or brewed beverages. (Def. amended Nov. 15, 2016, P.L.1286, No.166)

"Institution of higher education" shall mean any of the following:

(1) A community college operating under Article XIX-A of the act of March 10, 1949 (P.L.30, No.14), known as the "Public School Code of 1949."

(2) A university within the State System of Higher Education.

(3) The Pennsylvania State University.

(4) The University of Pittsburgh.

(5) Temple University.

(6) Lincoln University.

(7) Any other institution that is designated as State-related by the Commonwealth.

(8) Any accredited private or independent college or university.

(Def. added June 8, 2016, P.L.273, No.39)

"License period" shall mean the term for which the licenses and permits under the authority of this act are issued. License periods for hotel, restaurant, club and eating place licenses shall be established for a period of up to two years and, for the purpose of efficient and expedient processing, may be staggered. License periods for all other licenses and permits may be set by the board up to a maximum of four years and, for the purpose of efficient and expedient processing, may be staggered. The board shall collect the license/permit fees as authorized for each license/permit on an annual basis and shall prorate the annual license fee when required. The board shall extend and validate license privileges for each one-year portion of the license term upon timely receipt of proper fees, provided that no objection is received from the Department of Revenue or the Department of Labor and Industry. If at any time the licensee/permittee is not in compliance with the provisions of this act or any other laws of this Commonwealth, the licensee/permittee shall be subject to citation by the Pennsylvania State Police's Bureau of Liquor Control Enforcement. (Def. added Apr. 29, 1994, P.L.212, No.30)

"Limited Winery" shall mean a winery with a maximum output of two hundred thousand (200,000) gallons per year.

"Liquor" shall mean and include any alcoholic, spirituous, vinous, fermented or other alcoholic beverage, powdered alcohol, or combination of liquors and mixed liquor a part of which is spirituous, vinous, fermented or otherwise alcoholic, including all drinks or drinkable liquids, preparations or mixtures, and reused, recovered or redistilled denatured alcohol usable or taxable for beverage purposes which contain more than one-half of one per cent of alcohol by volume, except pure ethyl alcohol and malt or brewed beverages. (Def. amended June 8, 2016, P.L.273, No.39)

"Malt or Brewed Beverages" shall mean any beer, lager beer, ale, porter or similar fermented malt beverage containing one-half of one per centum or more of alcohol by volume, by whatever name such beverage may be called, and shall mean alcoholic cider, fermented fruit beverage and mead. (Def. amended Nov. 25, 2020, P.L.1222, No.125)

"Management company" shall mean any entity employed or otherwise contracted by a licensee to operate, manage or supervise all or part of the operation of the licensed premises. (Def. added Feb. 21, 2002, P.L.103, No.10)

"Manufacture", when the term is applied to malt or brewed beverages, shall mean and include all means, methods and processes used, employed and made use of, to produce, make and manufacture for commercial purposes, malt or brewed beverages from raw materials; when applied otherwise, it shall mean and include all means, methods and processes used, employed and made use of, to produce and make alcohol or liquor from raw materials, and shall mean and include rectification and blending of alcohol and liquor, the production, recovery or reuse of alcohol in the making, developing, using in the process of manufacture, denaturing, redistilling or recovering of any alcohol or liquor in distilleries, denaturing plants and wineries.

"Manufacturer" shall mean any person, association or corporation engaged in the producing, manufacturing, distilling, rectifying or compounding of liquor, alcohol or malt or brewed beverages in this Commonwealth or elsewhere.

"Manufacturer of malt or brewed beverages" shall mean any person holding a license issued by the board to engage in the manufacture, transportation and sale of malt or brewed beverages; also, any person engaged in the legal manufacture of malt or brewed beverages within the territorial limits of the United States, outside the Commonwealth of Pennsylvania.

"Mead" shall mean an alcoholic beverage produced by fermenting a solution of at least fifty-one per centum honey, water and other agricultural products and containing not more than eight and one-half per centum alcohol by volume and sold or offered for sale as mead and not as a wine or as a substitute for wine, in bottles, cases, kegs, cans or other suitable containers of the type used for the sale of malt or brewed beverages in this Commonwealth. (Def. amended Nov. 25, 2020, P.L.1222, No.125)

"Mixed-use town center development project" shall mean a planned development, with no building construction commenced prior to July 1, 2006, situated on no fewer than one hundred contiguous acres, with at least one million square feet of actual or proposed development, with a mix of retail, hospitality, commercial and residential uses, with community facilities and which has been designated as a mixed-use town center development project by the municipality in which it is located. A mixed-use town center development project may have one or multiple owners and may be developed in one or more phases, all of which shall be included in determining the actual or proposed development. If the site meets additional criteria stated in section 461(b.4)(5), a project comprising ninety-five contiguous acres will meet the size requirement in this definition. (Def. amended July 16, 2007, P.L.107, No.34)

"Mug club" shall mean a group organized by a retail licensee or a brewery whose members are entitled to discounted malt or brewed beverages. Membership shall be by written application and the licensee must maintain a written list of active members as part of its records. Licensees may charge an annual fee as well as a renewal fee. No discounted malt or brewed beverages may be provided between midnight and seven o' clock antemeridian. (Def. added June 8, 2016, P.L.273, No.39 and amended Nov. 15, 2016, P.L.1286, No.166)

"Municipality" shall mean any city, borough, incorporated town, or township of this Commonwealth.

"Nonprimary pari-mutuel wagering location" shall mean a nonprimary location for pari-mutuel wagering as designated by the State Horse Racing Commission or State Harness Racing Commission pursuant to the act of December 17, 1981 (P.L.435, No.135), known as the "Race Horse Industry Reform Act." (Def. added May 31, 1990, P.L.224, No.48)

"Original container" shall mean all bottles, casks, kegs or other suitable containers that have been securely capped, sealed or corked by the manufacturer of malt or brewed beverages at the place of manufacture, with the name and address of the manufacturer of the malt or brewed beverages contained or to be contained therein permanently affixed to the bottle, cask, keg or other container, or in the case of a bottle or can, to the cap or cork used in sealing the same or to a label securely affixed to a bottle or can.

"Package" shall mean any container or containers or receptacle or receptacles used for holding liquor or alcohol as marketed by the manufacturer.

"Patron" shall mean an individual who purchases food, nonalcoholic beverages, liquor, alcohol or malt or brewed beverages for a consideration from a licensee or any person on the licensed premises except those actually engaged in an employment related activity. (Def. added Oct. 5, 1994, P.L.522, No.77)

"Performing arts facilities" shall mean those halls or theaters in which live musical, concert, dance, ballet and legitimate play book-length productions are performed. Performing arts facilities shall not mean those halls or theaters in which burlesque shows or reviews are performed. If the operator of the performing arts facility is a nonprofit entity, the facility must have seating for at least one hundred fifty (150) people; otherwise, the facility must have seating for at least twenty-five hundred (2,500) people. (Def. amended June 8, 2016, P.L.273, No.39)

"Person" shall mean a natural person, association or corporation. Whenever used in a clause prescribing or imposing a fine or imprisonment or both, the term "person", as applied to "association", shall mean the partners or members thereof, and as applied to "corporation", shall mean the officers thereof, except, as to incorporated clubs, the term "person" shall mean such individual or individuals who, under the by-laws of such club, shall have jurisdiction over the possession and sale of liquor therein.

"Population" shall mean the number of inhabitants as determined by the last preceding decennial census of the United States, or by any other census subsequently taken by the census bureau of the United States and so certified by it: Provided, however, That such other census shall not be a basis for the fixing of license fees as provided in article IV. sections 405 and 439.

"Potable distilled spirits" shall mean and include any distillate from grains, wine, fruits, vegetables or molasses, except ethyl alcohol, capable of being used for beverage purposes.

"Powdered alcohol" shall mean alcohol sold in a powder form for either direct use or reconstitution. (Def. added June 8, 2016, P.L.273, No.39)

"Prepared beverage and mixed drink" shall mean a sealed container of no less than four fluid ounces and no greater than sixty-four fluid ounces in a single transaction that holds spirits and mixers that are combined on a licensed premises. (Def. added May 21, 2020, P.L.149, No.21)

"Private label" shall mean a product made under contract by a manufacturer or the manufacturer's agent for the exclusive right of a retailer. (Def. added June 8, 2016, P.L.273, No.39)

"Proper supervision" shall mean a person twenty-five years of age or older who is directly responsible for the care and conduct of a minor or minors while on the licensed premises and who keeps the minor or minors within his or her sight or hearing. If the licensee, an employe of a licensee or anyone else paid by the licensee is performing as proper supervisor, then that person may not perform any other employment-related duties; otherwise, proper supervision shall consist of unpaid volunteers. (Def. added May 8, 2003, P.L.1, No.1)

"Public hearing" shall mean a hearing held pursuant to public notice. (Def. added July 7, 2006, P.L.591, No.85)

"Public notice" shall mean notice published once each week for two successive weeks in a newspaper of general circulation in the municipality. Such notice shall state the time and the place of the hearing and the particular matter to be considered at the hearing. The first publication shall not be more than 30 days, and the second publication shall not be less than seven days, from the date of the hearing. (Def. added July 7, 2006, P.L.591, No.85)

"Public venue" shall mean a stadium, arena, convention center, museum, zoo, amphitheater or amusement park as defined in section 2 of the act of June 18, 1984 (P.L.384, No.81), known as the "Amusement Ride Inspection Act," situated on at least forty (40) acres of land regardless of seating capacity, or similar structure. If the public venue is a cruise terminal owned or leased by a port authority created under the act of June 12, 1931 (P.L.575, No.200), entitled "An act providing for joint action by Pennsylvania and New Jersey in the development of the ports on the lower Delaware River, and the improvement of the facilities for transportation across the river; authorizing the Governor, for these purposes, to enter into an agreement with New Jersey; creating The Delaware River Joint Commission and specifying the powers and duties thereof, including the power to finance projects by the issuance of revenue bonds; transferring to the new commission all the powers of the Delaware River Bridge Joint Commission; and making an appropriation," it shall have no permanent seating requirement. If the public venue is an open-air amphitheater owned by a port authority created under the act of December 6, 1972 (P.L.1392, No.298), known as the "Third Class City Port Authority Act," it shall have no permanent seating requirement. If the public venue is owned by a political subdivision, a municipal authority, the Commonwealth, an authority created under the act of July 29, 1953 (P.L.1034, No.270), known as the "Public Auditorium Authorities Law," an authority created under Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), known as the "Second Class County Code," an art museum established under the authority of the act of April 6, 1791 (3 Sm.L.20, No.1536), entitled "An act to confer on certain associations of the citizens of this commonwealth the powers and immunities of corporations, or bodies politic in law," or an authority created under Article XXIII (n) or (o) of the act of August 9, 1955 (P.L.323, No.130), known as "The County Code," it shall have permanent seating for at least one thousand (1,000) people; otherwise, it shall have permanent seating for at least two thousand (2,000) people. The term shall also mean any regional history center, multipurpose cultural and science facility, museum or convention or trade show center, regardless of owner and seating capacity, that has a floor area of at least sixty thousand (60,000) square feet in one building or is comprised of no less than three hundred fifty (350) acres and is a member of the American Public Garden Association. The term shall also mean a convention or conference center owned by a city of the third class or a university which is a member of the Pennsylvania State System of Higher Education which is operated by a university foundation or alumni association, regardless of seating capacity, that has a floor area of at least fifteen thousand (15,000) square feet in one building. The term shall also mean a visitor center, regardless of floor area or seating capacity, that was established under the authority of the Gateway Visitor Center Authorization Act of 1999 (Public Law 106-131, 113 Stat. 1678, 16 U.S.C. § 407m). (Def. amended Dec. 14, 2023, P.L.414, No.49)

"Purchase" shall mean obtaining food, nonalcoholic beverages, liquor, alcohol or malt or brewed beverages for a consideration. (Def. added Oct. 5, 1994, P.L.522, No.77)

"Racetrack" shall mean a primary location for pari-mutuel wagering as designated by the State Horse Racing Commission or State Harness Racing Commission pursuant to the act of December 17, 1981 (P.L.435, No.135), known as the "Race Horse Industry Reform Act." (Def. added May 31, 1990, P.L.224, No.48)

"Ready-to-drink cocktail" shall mean a beverage, composed in part of distilled liquor, combined with other nonalcoholic ingredients, carbonated or still, by whatever name the beverage may be called, premixed and packaged in original containers by the manufacturer, containing not more than sixteen ounces that is not mixed or adulterated on the licensed premises of a licensee. The term shall include any beverage consisting of at least one-half of one per centum, but not greater than twelve and one-half per centum, alcohol by volume. The term shall not include any beverage composed, in part, of wine or malt or brewed beverages. A ready-to-drink cocktail shall be considered liquor unless the context clearly indicates otherwise. (Def. added July 17, 2024, P.L.924, No.86)

"Regulation" shall mean any regulation prescribed by the board for carrying out the provisions of this act.

"Restaurant" shall mean a reputable place operated by responsible persons of good reputation and habitually and principally used for the purpose of providing food for the public, the place to have an area within a building of not less than four hundred square feet, equipped with tables and chairs, including bar seats, accommodating at least thirty persons at one time. The board shall, by regulation, set forth what constitutes tables and chairs sufficient to accommodate thirty persons at one time. (Def. amended Feb. 21, 2002, P.L.103, No.10 and Dec. 9, 2002, P.L.1653, No.212)

"Retail dispenser" shall mean any person licensed to engage in the retail sale of malt or brewed beverages for consumption on the premises of such licensee, with the privilege of selling malt or brewed beverages in quantities not in excess of one hundred ninety-two fluid ounces in a single sale to one person, to be carried from the premises by the purchaser thereof.

"Sale" or "Sell" shall include any transfer of liquor, alcohol or malt or brewed beverages for a consideration.

"Saturated county" shall mean a county with more than one restaurant liquor license per three thousand (3,000) inhabitants in the top twenty-five highest ratios of restaurant liquor licenses to county population in this Commonwealth. (Def. added July 2, 2019, P.L.371, No.57)

"Sealed container" shall mean a packaged container with a secure lid or cap designed to prevent consumption without removal of the lid or cap. A lid with sipping holes or opening for straws must be covered or affixed with an additional seal before sale. (Def. added May 21, 2020, P.L.149, No.21)

"Service" shall mean the act of providing food, nonalcoholic beverages, liquor, alcohol or malt or brewed beverages to a patron. (Def. added Oct. 5, 1994, P.L.522, No.77)

"Ski resort" shall mean a resort where downhill skiing occurs, having a minimum of six ski trails and an elevation of at least four hundred feet. (Def. added Oct. 24, 2012, P.L.1203, No.149)

"Social gathering" shall mean events marketed to or catering to minors in whole or in part for which proper notice has been provided to the Bureau of Enforcement and at which time no alcohol is served and all alcohol is removed or secured by lock and key at the licensed premises. (Def. added May 8, 2003, P.L.1, No.1)

"Tourist development project" shall mean a planned development situated on at least ninety (90) acres of land, constructed since January 1, 2019, that is dedicated primarily to tourism with at least five hundred thousand (500,000) square feet of actual or proposed development, with a mix of entertainment and retail uses. (Def. added July 2, 2019, P.L.371, No.57)

"Tract" shall mean a contiguous expanse of land under the control of one person. (Def. added Dec. 9, 2002, P.L.1653, No.212)

"Vacate" shall mean to physically leave a licensed premises. (Def. added Oct. 5, 1994, P.L.522, No.77)

"Whiskey" shall mean and include any alcoholic distillate from a fermented mash of grain, capable of being used for beverage purposes.

"Wine" shall mean liquor which is fermented from grapes and other fruits, having alcoholic content of twenty-four per centum or less. The term "wine" shall not include any products containing alcohol derived from malt, grain, cereal, molasses or cactus. (Def. added Dec. 8, 2004, P.L.1810, No.239)

"Winery" shall mean and include any premises and plants where any alcohol or liquor is produced by the process by which wine is produced, or premises and plants wherein liquid such as wine is produced; and shall include the manufacture by distillation of alcohol from the by-products of wine fermentation when the alcohol so derived is used solely to fortify the fermented products, under such regulations as are or may be promulgated by the proper agency of the United States Government, and such alcohol, for that purpose only, may be sold or exchanged between wineries holding permits in this Commonwealth, without restriction.

"Zoo" shall mean an accredited member of the Association of Zoos and Aquariums or the Zoological Association of America and for purposes of section 412 shall have no square footage or permanent seating requirements. (Def. amended Nov. 15, 2016, P.L.1286, No.166)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

Compiler's Note: See section 28 of Act 39 of 2016, which amended the defs. of "alcohol," "alcoholic cider," "denatured alcohol," "direct shipper," "eligible entity," "liquor" and "performing arts facilities," added the defs. of "institution of higher education," "mug club," "powdered alcohol" and "private label," and deleted the def. of "holiday," in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Compiler's Note: The act of April 28, 1961 (P.L.111, No.50), known as the "Tourist Promotion Law," referred to in the def. of "eligible entity," was repealed by the act of July 4, 2008 (P.L.651, No.50), known as the Tourist Promotion Act. The subject matter is now contained in the Tourist Promotion Act.

Section 103. Saving Clause.--The provisions of this act, so far as they are the same as those of existing laws, are intended as a continuation of such laws and not as new enactments. The repeal by this act of any act of Assembly or part thereof shall not revive any act or part thereof heretofore repealed or superseded. The provisions of this act shall not affect any act done, liability incurred or right accrued or vested, or affect any suit or prosecution pending or to be instituted to enforce any right or penalty or punish any offense under the authority of such repeal laws. All regulations and rules made and all licenses and permits issued pursuant to any act repealed by this act shall continue with the same force and effect as if such act had not been repealed.

Section 104. Interpretation of Act.--(a) This act shall be deemed an exercise of the police power of the Commonwealth for the protection of the public welfare, health, peace and morals of the people of the Commonwealth and to prohibit forever the open saloon, and all of the provisions of this act shall be liberally construed for the accomplishment of this purpose.

(b) The provisions of this act are severable and if any of its provisions shall be held unconstitutional the decision of the court shall not affect or impair any of the remaining provisions of this act. It is hereby declared to be the legislative intent that this act would have been adopted had such unconstitutional provisions not been included herein.

(c) Except as otherwise expressly provided, the purpose of this act is to prohibit the manufacture of and transactions in liquor, alcohol and malt or brewed beverages which take place in this Commonwealth, except by and under the control of the board as herein specifically provided, and every section and provision of the act shall be construed accordingly; to provide a structure in this Commonwealth for a distribution system, including the establishment of Pennsylvania liquor stores and licensing of importing distributors and distributors; and to preserve manufacturers of liquor and alcohol and malt and brewed beverages selling those products within this Commonwealth. The provisions of this act dealing with the manufacture, importation, sale, distribution and disposition of liquor, alcohol and malt or brewed beverages within the Commonwealth through the instrumentality of the board, licensees and otherwise, provide the means by which such control shall be made effective. This act shall not be construed as forbidding, affecting or regulating any transaction which is not subject to the legislative authority of this Commonwealth. ((c) amended Dec. 7, 1990, P.L.622, No.160)

(d) The provisions of this act are intended to create a system for distribution that shall include the fixing of prices for liquor and alcohol and controls placed on prices for malt and brewed beverages, and each of which shall be construed as integral to the preservation of the system, without which system the Commonwealth's control of the sale of liquor and alcohol and malt and brewed beverages and the Commonwealth's promotion of its policy of temperance and responsible conduct with respect to alcoholic beverages would not be possible. ((d) amended Dec. 20, 1996, P.L.1513, No.196)

(e) Any reference in this act to the provisions of law on any subject shall apply to statutes becoming effective after the effective date of this act as well as to those then in existence. ((e) amended Dec. 7, 1990, P.L.622, No.160)

(f) Section headings shall not be taken to govern or limit the scope of the sections of this act. The singular shall include the plural and the masculine shall include the feminine and the neuter. ((f) amended Dec. 7, 1990, P.L.622, No.160)

ARTICLE II.

PENNSYLVANIA LIQUOR CONTROL BOARD.

Section 201. Appointment of Members; Terms; Salaries.--An independent administrative board to be known as the "Pennsylvania Liquor Control Board" is hereby created. The board shall consist of three members to be appointed by the Governor by and with the advice and consent of two-thirds of all the members of the Senate, not more than two of whom shall be from the same political party as the Governor. Of the members first appointed after the effective date of this amendatory act, one member shall serve a term of three years, one member shall serve a term of four years, and one member shall serve a term of five years. Subsequent terms shall be for four years, ending on the third Tuesday in May. A member may continue to hold office for a period not to exceed six months beyond the expiration of that member's term if a successor to that member has not been duly appointed and qualified according to law. Each of the members shall receive an annual salary pursuant to the provisions of the act of September 30, 1983 (P.L.160, No.39), known as the "Public Official Compensation Law."

(201 amended Feb. 21, 2002, P.L.103, No.10)

Compiler's Note: Section 25 of Act 10 of 2002, which amended section 201, provided that the amendment of section 201 relating to a member's term of office shall apply to all members of the board appointed on or after the effective date of Act 10.

Section 202. Qualifications of Members.--(a) Each member of the board at the time of his appointment and qualification shall be a citizen of the United States and a resident of the Commonwealth of Pennsylvania, shall have been a qualified elector in the Commonwealth for a period of at least one year next preceding his appointment, and shall be not less than twenty-one years of age.

(b) No member of the board during his period of service as such shall hold any other office under the laws of this Commonwealth or of the United States.

(c) Board members shall devote full time to their official duties. No board member shall hold any office or position the duties of which are incompatible with his board duties.

Section 203. Chairman of Board.--(a) The Governor shall designate one of the board members as chairman who shall serve in that position at the pleasure of the Governor. The chairman shall, when present, preside at all meetings, and in his absence a member designated by the chairman shall preside.

(b) Two members of the board shall constitute a quorum, and any action or order of the board shall require the approval of at least two members.

Section 204. Secretary of Board.--The board may appoint a secretary to hold office at its pleasure. The secretary, if appointed, shall have such powers and shall perform such duties not contrary to law as the board shall prescribe, and shall receive such compensation as the board, with the approval of the Governor, shall determine. The secretary shall have power and authority to designate, from time to time, one of the clerks appointed by the board to perform the duties of the secretary during his absence and the clerk so appointed shall exercise, for the time so designated, the powers of the secretary of the board.

Section 205. Bonds Required of Members and Secretary.--(205 deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

Section 206. Board Subject to Administrative Code.--Except as otherwise expressly provided by law, the board shall be subject to all the provisions of The Administrative Code of one thousand nine hundred twenty-nine, as amended, which apply generally to independent administrative boards and commissions.

Section 206.1. Board and Enforcement Bureau Subject to State Ethics and Adverse Interest Acts.--(a) Except to the extent that the penalties provided in section 210 of this act for violations are more stringent, the board, its members and all of its employes and employes of the enforcement bureau shall be subject to the act of October 4, 1978 (P.L.883, No.170), referred to as the Public Official and Employee Ethics Law, and the act of July 19, 1957 (P.L.1017, No.451), known as the "State Adverse Interest Act."

(b) Membership on the board and employment or continued employment as an employe of the board or enforcement bureau is conditioned upon compliance with all of the provisions of the acts specified in subsection (a), including, but not limited to, the filing of statements of financial interests required by section 5 of the Public Official and Employee Ethics Law. Acceptance or retention of employment shall be deemed as voluntary consent to submit to the financial reporting requirements of the Public Official and Employee Ethics Law as a condition of employment. Failure to timely comply with the requirements shall result in immediate termination of employment. Both the board and the enforcement bureau are subject to the provisions of 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure).

(206.1 amended Dec. 9, 2002, P.L.1653, No.212)

Section 207. General Powers of Board.--Under this act, the board shall have the power and its duty shall be:

(a) To buy, import or have in its possession for sale and sell liquor, alcohol, corkscrews, wine and liquor accessories, trade publications, gift cards, gift certificates, wine- or liquor-scented candles and wine glasses in the manner set forth in this act: Provided, however, That all purchases shall be made subject to the approval of the State Treasurer, or his designated deputy. The board shall buy liquor and alcohol at the lowest price and in the greatest variety reasonably obtainable. ((a) amended Nov. 30, 2004, P.L.1727, No.221 and Dec. 8, 2004, P.L.1810, No.239)

(b) The following shall apply:

(1) To control the manufacture, possession, sale, consumption, importation, use, storage, transportation and delivery of liquor, alcohol and malt or brewed beverages in accordance with the provisions of this act, and to fix the wholesale and retail prices at which liquors and alcohol shall be sold at Pennsylvania Liquor Stores.

(2) Except as provided in paragraphs (3) and (4), prices shall be proportional with prices paid by the board to its suppliers and may include a handling fee. This proportional pricing provision shall not apply to special liquor orders authorized under section 305(a).

(3) The board may price its best-selling items and limited purchase items in a manner that maximizes the return on the sale of those items.

(4) The board may discount the price of discontinued items.

(5) All prices of a particular product identification number shall be uniform throughout the Commonwealth. The board may establish a preferential price structure for wines produced within this Commonwealth for the promotion of such wines, as long as the price structure is uniform within each class of wine purchased by the board.

(6) On a quarterly basis the board shall publish a listing of the wholesale and Pennsylvania Liquor Store retail prices on its publicly accessible Internet website.

(7) No later than April 1st of each year the board shall submit an annual written report to the Law and Justice Committee of the Senate and the Liquor Control Committee of the House of Representatives. The report shall contain information related to the method and rationale for pricing products.

(8) No later than June 1st of each year, the board shall appear before the Law and Justice Committee of the Senate and the Liquor Control Committee of the House of Representatives to provide testimony in relation to its annual written report under paragraph (7).

(9) The board shall require each Pennsylvania manufacturer and each nonresident manufacturer of liquors, other than wine, selling such liquors to the board, which are not manufactured in this Commonwealth, to make application for and be granted a permit by the board before such liquors not manufactured in this Commonwealth shall be purchased from such manufacturer. Each such manufacturer shall pay for such permit a fee which, in the case of a manufacturer of this Commonwealth, shall be equal to that required to be paid, if any, by a manufacturer or wholesaler of the state, territory or country of origin of the liquors, for selling liquors manufactured in Pennsylvania, and in the case of a nonresident manufacturer, shall be equal to that required to be paid, if any, in such state, territory or country by Pennsylvania manufacturers doing business in such state, territory or country. In the event that any such manufacturer shall, in the opinion of the board, sell or attempt to sell liquors to the board through another person for the purpose of evading this provision relating to permits, the board shall require such person, before purchasing liquors from him or it, to take out a permit and pay the same fee as hereinbefore required to be paid by such manufacturer. All permit fees so collected shall be paid into the State Stores Fund. The board shall not purchase any alcohol or liquor fermented, distilled, rectified, compounded or bottled in any state, territory or country, the laws of which result in prohibiting the importation therein of alcohol or liquor, fermented, distilled, rectified, compounded or bottled in Pennsylvania. The board may not sell private label products. A Pennsylvania Liquor Store may continue to sell private label products within its inventory after the effective date of this section until the private label products within its current inventory are depleted.

(10) The proportional pricing under paragraph (2) shall not apply to special liquor orders authorized under section 305(a).

(11) As used in this subsection, the following words and phrases shall have the meanings given to them in this paragraph:

"Best-selling items" shall mean the one hundred fifty (150) most sold product identification numbers of wine and the one hundred fifty (150) most sold product identification numbers of liquor as measured by the total number of units sold on a six-month basis calculated every January 1 and July 1.

"Discontinued items" shall mean those product identification numbers that the board has voted to delist at a public meeting.

"Limited purchase items" shall mean those product identification numbers that the board purchases on either a one-time or nonrecurring basis due to the product's limited availability or finite allocation.

"Product identification number" shall mean the stock keeping unit (SKU) or a successor method of identifying specific products.

((b) amended June 8, 2016, P.L.273, No.39)

(c) To determine the municipalities within which Pennsylvania Liquor Stores shall be established and the locations of the stores within such municipalities.

(d) To grant and issue all licenses and to grant, issue, suspend and revoke all permits authorized to be issued under this act.

(e) Through the Department of General Services as agent, to lease and furnish and equip such buildings, rooms and other accommodations as shall be required for the operation of this act.

(f) To appoint, fix the compensation and define the powers and duties of such managers, officers, inspectors, examiners, clerks and other employes as shall be required for the operation of this act, subject to the provisions of The Administrative Code of 1929 and the Civil Service Act.

(g) To determine the nature, form and capacity of all packages and original containers to be used for containing liquor, alcohol or malt or brewed beverages.

(h) Without in any way limiting or being limited by the foregoing, to do all such things and perform all such acts as are deemed necessary or advisable for the purpose of carrying into effect the provisions of this act and the regulations made thereunder.

(i) From time to time, to make such regulations not inconsistent with this act as it may deem necessary for the efficient administration of this act. The board shall cause such regulations to be published and disseminated throughout the Commonwealth in such manner as it shall deem necessary and advisable or as may be provided by law. Such regulations adopted by the board shall have the same force as if they formed a part of this act.

(j) By regulation, to provide for the use of a computerized referral system to assist consumers in locating special items at Pennsylvania Liquor Stores and for the use of electronic transfer of funds and credit cards for the purchase of liquor and alcohol at Pennsylvania Liquor Stores.

(k) To issue grants to various entities for alcohol education and prevention efforts. ((k) added Feb. 21, 2002, P.L.103, No.10)

(l) To be licensed as a Lottery Sales Agent as set forth in section 305 of the act of August 26, 1971 (P.L.351, No.91), known as the State Lottery Law, and to take any actions authorized by such designation except that no bond, insurance or indemnification may be required from the board. Notwithstanding any other provision of law to the contrary, the board may pay the holder of a winning ticket up to an amount that shall be established jointly by the board and the Department of Revenue. All proceeds retained by the board as compensation for the sale of tickets, including incentive awards or bonuses, as well as credit for direct payment of prizes, shall be deposited into the General Fund. ((l) added June 8, 2016, P.L.273, No.39)

(m) The following shall apply:

(1) Notwithstanding subsection (b), the board may establish and implement a customer relations management program for the purpose of offering incentives, such as coupons or discounts on certain products, to unlicensed customers of the board.

(2) The names and addresses of individual consumers who participate in a customer relations management program or purchase products from the board, as well as any records or information that would disclose the personal purchase choices of individual consumers, shall not be sold or otherwise made available to the public under any circumstances, including in response to a request made in accordance with the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

((m) added June 8, 2016, P.L.273, No.39 and amended Nov. 15, 2016, P.L.1286, No.166)

(n) Notwithstanding the act of December 20, 2015 (P.L.497, No.90), known as the Taxpayer-Funded Advertising Transparency Act, any expenditure for media advertising made by the board shall not be subject to any requirement that the media advertising include any statement identifying the fund from which the expenditure was made, nor any statement that the media advertising was paid for with Pennsylvania taxpayer dollars. ((n) added June 8, 2016, P.L.273, No.39 and amended Nov. 15, 2016, P.L.1286, No.166)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (b) and added subsections (l), (m) and (n), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 208. Specific Subjects on Which Board May Adopt Regulations.--Subject to the provisions of this act and without limiting the general power conferred by the preceding section, the board may make regulations regarding:

(a) The equipment and management of Pennsylvania Liquor Stores and warehouses in which liquor and alcohol are kept or sold, and the books and records to be kept therein.

(b) The duties and conduct of the officers and employes of the board.

(d) The classes, varieties and brands of liquor and alcohol to be kept and sold in Pennsylvania Liquor Stores. In making this determination the board shall meet not less than twice a year.

(e) The issuing and distribution of price lists for the various classes, varieties or brands of liquor and alcohol kept for sale by the board under this act.

(f) The labeling of liquor and alcohol sold under this act and of liquor and alcohol lawfully acquired by any person prior to January first, one thousand nine hundred thirty-four.

(g) Forms to be used for the purposes of this act.

(h) The issuance of licenses and permits and the conduct, management, sanitation and equipment of places licensed or included in permits.

(i) The place and manner of depositing the receipts of Pennsylvania Liquor Stores and the transmission of balances to the Treasury Department through the Department of Revenue.

(j) The solicitation by resident or nonresident vendors of liquor from Pennsylvania licensees and other persons of orders for liquor to be sold through the Pennsylvania Liquor Stores and, in the case of nonresident vendors, the collection therefrom of license fees for such privilege at the same rate as provided herein for importers' licenses.

Section 209. Officers and Investigators of the Board to be Peace Officers; Powers.--(209 repealed June 29, 1987, P.L.32, No.14)

Section 210. Restrictions on Members of the Board and Certain Employes of Commonwealth.--(a) A member or employe of the board or enforcement bureau or a member of the immediate family of a member or employe of the board or enforcement bureau shall not be directly or indirectly interested or engaged in any other business or undertaking within the Commonwealth dealing in liquor, alcohol, or malt or brewed beverages, whether as owner, part owner, partner, member of syndicate, holder of stock exceeding five percent (5%) of the equity at fair market value of the business, independent contractor or manager of a licensed establishment required under 40 Pa. Code § 5.23 (relating to appointment of managers), and whether for his own benefit or in a fiduciary capacity for some other person. For the purpose of this subsection only, "employe of the board or Enforcement Bureau" shall mean any individual employed by the board or Enforcement Bureau who is responsible for taking or recommending official action of a nonministerial nature with regard to:

(1) contracting or procurement;

(2) administering or monitoring grants or subsidies;

(3) planning or zoning;

(4) inspecting, licensing, regulating or auditing any person; or

(5) any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person.

((a) amended Dec. 21, 1988, P.L.1879, No.183)

(b) No member or employe of the board or enforcement bureau or a member of the immediate family of a member or employe of the board or enforcement bureau nor any employe of the Commonwealth shall solicit or receive, directly or indirectly, any commission, remuneration or gift whatsoever, from any person having sold, selling or offering liquor or alcohol for sale to the board for use in Pennsylvania Liquor Stores.

(d) No member or employe of the board or enforcement bureau may use his position with the board or enforcement bureau, or any confidential information received through his position with the board or enforcement bureau, to obtain financial gain, other than compensation provided by law, for himself, a member of his immediate family or a business with which he is associated.

(e) No person may offer or give to a member or employe of the board or enforcement bureau or a member of his immediate family or a business with which he is associated, and no member or employe of the board or enforcement bureau may solicit or accept anything of value, including a gift, loan, political contribution, reward or promise of future employment, based on an understanding that the vote, official action or judgment of the member or employe of the board or enforcement bureau would be influenced thereby.

(f) No member or employe of the board or enforcement bureau or a member of his immediate family or any business in which the member or employe or a member of his immediate family is a director, officer or owner or holder of stock exceeding five percent (5%) of the equity at fair market value of the business may enter into any contract valued at five hundred dollars ($500) or more to provide goods or services to the board or enforcement bureau unless the contract has been awarded to the lowest responsible bidder through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded.

(g) No former member or employe of the board or enforcement bureau may represent a person, with or without compensation, on any matter before the board or enforcement bureau for one year after leaving the board or enforcement bureau.

(h) No member or employe of the board or enforcement bureau or an advisor or consultant thereto having recommended to the board or enforcement bureau either the making of a contract or a course of action of which the making of a contract is an express or implied part, may, at any time thereafter, have an adverse interest in that contract.

(i) No member or employe of the board or enforcement bureau may influence or attempt to influence the making of, or supervise or deal with, a contract with the board or enforcement bureau in which he has an adverse interest.

(j) No member or employe of the board or enforcement bureau may have an adverse interest in a contract with the board or enforcement bureau.

(k) No person having an adverse interest in a contract with the board or enforcement bureau may become an employe of the board or enforcement bureau until the adverse interest has been wholly divested.

(l) No member or employe of the board or enforcement bureau, except in the performance of his duties as such employe, may, for remuneration, directly or indirectly, represent a person upon a matter pending before the board or enforcement bureau.

(m) (1) Any person who violates the provisions of this section shall have his employment by the board or enforcement bureau immediately terminated by the appropriate person having the power to terminate and shall be liable to the board or enforcement bureau to reimburse the board or enforcement bureau for all compensation received by him from the board or enforcement bureau while employed in violation of subsection (c).

(2) Any person who violates the provisions of subsections (b), (d) or (e) shall be guilty of a felony and, upon conviction thereof, shall be sentenced to pay a fine of not more than ten thousand dollars ($10,000) or to undergo imprisonment for not more than five (5) years, or both.

(3) Any person who violates the provisions of subsections (a) or (f) through (l) shall be guilty of a misdemeanor and, upon conviction thereof, shall be sentenced to pay a fine of not more than one thousand dollars ($1,000) or to undergo imprisonment for not more than one (1) year, or both.

(4) Any person who obtains financial gain from violating any provisions of this section, in addition to any other penalty provided by law, shall pay into the accounts of the board a sum of money equal to three (3) times the financial gain resulting from the violation.

(5) Any person who violates the provisions of this section shall be barred for a period of five (5) years from engaging in any business or contract with the board or enforcement bureau.

(6) The penalties and sanctions provided by this subsection shall supersede any similar penalties and sanctions provided by the act of July 19, 1957 (P.L.1017, No.451), known as the "State Adverse Interest Act," and the act of October 4, 1978 (P.L.883, No.170), referred to as the Public Official and Employee Ethics Law.

(n) As used in this section, the following words and phrases shall have the meanings given to them in this subsection:

"Business" shall mean a corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint-stock company, receivership, trust or legal entity organized for profit or as a not-for-profit corporation or organization.

"Immediate family" shall mean a spouse residing in the person's household and minor dependent children.

"Infamous crime" shall mean a violation and conviction for an offense which would disqualify an individual from holding public office pursuant to section 6 of Article II of the Constitution of Pennsylvania; a conviction within the preceding ten (10) years for a violation of this section or of 18 Pa.C.S. § 4113 (relating to misapplication of entrusted property and property of government or financial institutions), Ch. 47 (relating to bribery and corrupt influence), Ch. 49 (relating to falsification and intimidation), Ch. 51 (relating to obstructing governmental operations) or Ch. 53 (relating to abuse of office); or a violation of the laws of this Commonwealth or another state or the Federal Government for which an individual has been convicted within the preceding ten (10) years and which is classified as a felony.

((n) amended Dec. 21, 1988, P.L.1879, No.183)

Section 211. Enforcement.--(a) There is created within the Pennsylvania State Police a Bureau of Liquor Control Enforcement which shall be responsible for enforcing this act and any regulations promulgated pursuant thereto. Officers and investigators assigned to the bureau shall have the power and their duty shall be:

(1) To investigate whenever there are reasonable grounds to believe liquor, alcohol or malt or brewed beverages are being sold on premises not licensed under the provisions of this act. If the investigation produces evidence of the unlawful sale of liquor or malt or brewed beverages or any other violation of the provisions of this act, the officer involved in the investigation shall institute criminal proceedings against the person or persons believed to have been criminally liable, as otherwise provided by law or rule of court.

(2) To arrest on view, except in private homes, without warrant, any person actually engaged in the unlawful sale, importation, manufacture or transportation or having unlawful possession of liquor, alcohol or malt or brewed beverages contrary to the provisions of this act or any other law of this Commonwealth or any person whom the officer/investigator, while in the performance of his assigned duties under and pursuant to this act and any regulations promulgated under this act, observes to be in violation of any of the following provisions:

18 Pa.C.S. § 3302 (relating to causing or risking catastrophe).

18 Pa.C.S. § 3304 (relating to criminal mischief).

18 Pa.C.S. § 4101 (relating to forgery).

18 Pa.C.S. § 5503 (relating to disorderly conduct).

18 Pa.C.S. § 5505 (relating to public drunkenness).

18 Pa.C.S. § 5512 (relating to lotteries, etc.).

18 Pa.C.S. § 5513 (relating to gambling devices, gambling, etc.).

18 Pa.C.S. § 5514 (relating to pool selling and bookmaking).

18 Pa.C.S. § 6307 (relating to misrepresentation of age to secure liquor or malt or brewed beverages).

18 Pa.C.S. § 6308 (relating to purchase, consumption, possession or transportation of liquor or malt or brewed beverages).

18 Pa.C.S. § 6309 (relating to representing that minor is of age).

18 Pa.C.S. § 6310.1 (relating to selling or furnishing liquor or malt or brewed beverages to minors).

18 Pa.C.S. § 6310.3 (relating to carrying a false identification card).

(3) Upon reasonable and probable cause, to search for and to seize, without warrant or process, except in private homes, any liquor, alcohol or malt or brewed beverages unlawfully possessed, manufactured, sold, imported or transported and any stills, equipment, materials, utensils, vehicles, boats, vessels, animals, aircraft, or any of them, which are or have been used in the unlawful manufacture, sale, importation or transportation of the same. Such liquor, alcohol, malt or brewed beverages, stills, equipment, materials, utensils, vehicles, boats, vessels, animals or aircraft so seized shall be disposed of as hereinafter provided.

(4) To investigate and issue citations for any violations of this act or any laws of this Commonwealth relating to liquor, alcohol or malt or brewed beverages, or any regulations of the board adopted pursuant to such laws or any violation of any laws of this Commonwealth or of the Federal Government, relating to the payment of taxes on liquor, alcohol or malt or brewed beverages by any licensee, his officers, servants, agents or employes.

(5) To arrest any person who engages in the following offenses when the said offenses are committed against the officer/investigator or any person accompanying and assisting the officer/investigator while the said officer/investigator is performing assigned duties under and pursuant to this act and any regulations promulgated under this act:

18 Pa.C.S. § 2701 (relating to simple assault).

18 Pa.C.S. § 2702 (relating to aggravated assault).

18 Pa.C.S. § 2705 (relating to recklessly endangering another person).

18 Pa.C.S. § 2706 (relating to terroristic threats).

18 Pa.C.S. § 2709 (relating to harassment and stalking).

18 Pa.C.S. § 5104 (relating to resisting arrest or other law enforcement).

18 Pa.C.S. § 5501 (relating to riot).

(6) To serve and execute warrants issued by the proper authorities for offenses referred to in this subsection and to serve subpoenas.

(7) To arrange for the administration of chemical tests of breath, blood or urine, including preliminary breath tests, to persons for the purpose of determining the alcoholic content of blood or the presence of a controlled substance by qualified personnel of a State or local police department or qualified personnel of a clinical laboratory licensed and approved by the Department of Health.

(b) Any equipment or appurtenance actually used in the commission of the unlawful acts may be confiscated. The confiscation shall not, in any manner, divest or impair the rights or interest of any bona fide lienholder in the equipment or appurtenance.

(c) The Pennsylvania State Police Commissioner shall assign State Police Officers to such supervisory and other capacities in the enforcement bureau as he deems necessary. All other personnel of the enforcement bureau shall be civilians.

(d) The Office of Chief Counsel for the Pennsylvania State Police shall represent the enforcement bureau in all enforcement proceedings brought before the Office of Administrative Law Judge or any other adjudicatory body.

(e) Nothing in this act shall be construed to change the status of civilian enforcement agents for the purposes of the act of July 23, 1970 (P.L.563, No.195), known as the "Public Employe Relations Act," or cause civilian enforcement agents to be considered policemen for the purposes of the act of June 24, 1968 (P.L.237, No.111), referred to as the Policemen and Firemen Collective Bargaining Act.

(f) In addition to the information provided to the General Assembly and the Legislative Data Processing Center under sections 613 and 614 of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929," respectively, the Pennsylvania State Police shall provide to the chairman and minority chairman of the Appropriations Committee of the Senate and the chairman and minority chairman of the Appropriations Committee of the House of Representatives any other information as requested. The Pennsylvania State Police shall also provide:

(1) a copy of the most recently completed audit of expenditures of the enforcement bureau; and

(2) a report detailing the demographic characteristics of the bureau's complement of civilian officers. Such report shall include information relating to workplace diversity as contained in section two of the Governor's Annual Workforce Report relating to equal employment.

((f) added July 17, 2003, P.L.63, No.15)

(g) ((g) expired December 31, 2022. See Act 75 of 2017.)

(211 amended Oct. 5, 1994, P.L.537, No.80)

Section 211.1. Legal Opinions.--Upon written request by a licensee, the board or its counsel shall issue a legal opinion regarding any subject matter relating to this act or any regulation promulgated pursuant to it. This legal opinion shall be binding on the enforcement bureau.

(211.1 added July 2, 1993, P.L.429, No.61)

Section 212. Office of Administrative Law Judge.--(a) There is hereby created within the board an autonomous office to be known as the Office of Administrative Law Judge.

(b) The Governor shall appoint from a list of qualified candidates submitted by the Civil Service Commission after appropriate examination under the act of August 5, 1941 (P.L.752, No.286), known as the "Civil Service Act," as many administrative law judges as the board, with the approval of the Governor, deems necessary for the holding of hearings required or permitted under this act. The Governor shall designate one of the civil service appointees as the chief administrative law judge.

(c) Administrative law judges shall preside at all citation and other enforcement hearings required or permitted under this act. ((c) amended June 30, 1992, P.L.327, No.66)

(d) Administrative law judges appointed under this section shall be learned in the law and shall be members in good standing of the bar of the Supreme Court of Pennsylvania.

(e) Compensation for the administrative law judges shall be established by the Executive Board.

(f) Administrative law judges shall devote full time to their official duties and shall perform no duties inconsistent with their duties and responsibilities as administrative law judges.

(g) Administrative law judges appointed under this section shall be afforded employment security as provided by the "Civil Service Act."

(h) The board shall select five hearing examiners from the complement of hearing examiners, who have been appointed by the Governor and who are employed by the board on the effective date of this subsection, to conduct the licensing hearings required by this act. The selection of the five hearing examiners shall be at the board's discretion. ((h) added June 30, 1992, P.L.327, No.66)

(i) Nothing in this section or this act shall be construed or intended to change the terms and conditions of employment of the five hearing examiners selected by the board pursuant to subsection (h). ((i) added June 30, 1992, P.L.327, No.66)

Section 213. Bureau of Consumer Relations.--The board shall establish a Bureau of Consumer Relations which shall be responsible for handling all consumer complaints and suggestions. The bureau shall develop a system-wide program for investigating all complaints and suggestions and implementing improvements into the State store system. The management of the bureau shall be vested in a director, who shall be assisted by such other personnel as the board deems necessary.

(213 amended Apr. 29, 1994, P.L.212, No.30)

Section 214. Prohibitions.--(a) The board may not make a contract or otherwise do business with a corporation, vendor or service contractor that has not complied with the regulatory and statutory requirements of any other administrative agency.

(b) The board may not make a contract or otherwise do business with a transportation carrier for hire of liquor, wine or malt or brewed beverages which (carrier) has not obtained the proper permits from the Pennsylvania Public Utility Commission under 66 Pa.C.S. Ch. 25 (relating to contract carrier by motor vehicle and broker).

Section 215. Wine and Spirits Marketing.--(a) ((a) deleted by amendment Dec. 30, 2003, P.L.423, No.59)

(b) ((b) deleted by amendment Dec. 30, 2003, P.L.423, No.59)

(d) (1) ((1) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(2) ((2) deleted by amendment Dec. 30, 2003, P.L.423, No.59)

(e) The board is authorized to participate in or sponsor wine and spirits events for the purpose of educating consumers as to the wines and spirits available in this Commonwealth. The wine and spirits to be used for the event may be acquired through the State store system or may be donated from outside this Commonwealth. Participation in the tastings may be conditioned on the purchase of a ticket to the event. The event may include events occurring on premises licensed by the board, and the board may sell wine and spirits for off-premises consumption in an area designated by the board for such sale.

(215 amended June 25, 2010, P.L.217, No.35)

Section 216. Investigative Unit.--(a) The board shall establish an investigative unit that shall be responsible for implementing and monitoring compliance with the provisions of and regulations made under this act relating to malt or brewed beverages and the malt or brewed beverage industry.

(b) The investigative unit shall, among other things:

(1) handle notifications concerning price introductions and changes;

(2) receive and make recommendations to the board concerning applications to rescind price discounts;

(3) provide assistance to the board concerning reports and investigations the board desires or is required to provide;

(4) handle applications for brand registration; and

(5) handle copies of franchise or territorial agreements submitted by importing distributors.

(c) Management of the unit shall be vested in a director, who shall be assisted by other personnel as the board deems necessary. The director shall report to the board secretary.

(216 added Dec. 20, 1996, P.L.1513, No.196)

Section 217. Biennial Reports.--(a) The board's Bureau of Alcohol Education shall prepare a report on underage alcohol drinking and high-risk college alcohol drinking in this Commonwealth.

(b) A report shall be prepared biennially and shall address the following:

(1) Current levels and trends of underage alcohol drinking and high-risk college alcohol drinking in this Commonwealth.

(2) Current programs conducted by State agencies to prevent underage alcohol drinking and high-risk college alcohol drinking.

(3) Current science that better defines and suggests proven prevention strategies for underage alcohol drinking and high-risk college alcohol drinking.

(c) The first report to the General Assembly shall be presented prior to February 1, 2007. Additional reports shall be presented every two years thereafter. A copy of the report shall be sent to the chairman and the minority chairman of the Law and Justice Committee of the Senate and the chairman and the minority chairman of the Liquor Control Committee of the House of Representatives.

(217 added July 7, 2006, P.L.591, No.85)

Section 218. Stop-and-Go Legislative Task Force.--(a) The Stop-and-Go Legislative Task Force is established.

(b) The task force shall:

(1) Review and analyze the law, procedures, practices, processes and rules relating to the issues involving stop-and-go establishments.

(2) Hold public hearings for the taking of testimony and the requesting of documents.

(3) Through the chair, administer oaths and affirmations to witnesses appearing before the task force.

(4) Accept and review written comments from individuals and organizations.

(5) Issue the report under subsection (f) no later than four months after the task force's initial meeting. In addition to any information that the task force deems appropriate, the report shall:

(i) Define and create a liquor license category for stop-and-go establishments located and operating within a city of the first class.

(ii) Provide recommendations for regulating stop-and-go establishments that are located and operating within a city of the first class.

(c) The task force shall consist of the following members who shall be appointed within twenty-five days after the effective date of this subsection:

(1) One member appointed by the Governor.

(2) One member appointed by the President pro tempore of the Senate.

(3) One member appointed by the Minority Leader of the Senate.

(4) One member appointed by the Speaker of the House of Representatives.

(5) One member appointed by the Minority Leader of the House of Representatives.

(6) An ex officio member from the board who shall not have voting rights.

(d) A chair of the task force shall be elected by a majority vote of the members of the task force.

(e) The task force shall conduct business as follows:

(1) The physical presence of a majority of the members shall constitute a quorum. The ex officio member of the task force shall not be considered for purposes of a quorum.

(2) Action of the task force must be authorized or ratified by a majority vote of the members.

(3) A member not physically present may participate by teleconference or video conference.

(4) The first public meeting of the task force shall be convened within forty-five days of the effective date of this paragraph. Additional public meetings may be called by the chair as necessary.

(5) The chair shall schedule a meeting upon written request of a two-thirds majority of the members.

(6) The task force shall hold public hearings as necessary.

(7) All meetings and hearings held by the task force shall be subject to 65 Pa.C.S. Ch. 7 (relating to open meetings).

(8) The board shall provide administrative or other assistance to the task force.

(9) Members may not receive compensation but shall be reimbursed for reasonable and necessary expenses incurred in service.

(f) The task force shall compile a report of recommendations under subsection (b) within four months after the task force's initial meeting and deliver the report to each member of the General Assembly who represents residents of a city of the first class, the board, the chairman and minority chairman of the Law and Justice Committee of the Senate and the chairman and minority chairman of the Liquor Control Committee of the House of Representatives.

(g) The task force shall expire thirty days after delivery of the final report under subsection (f).

(h) As used in this section:

(1) The term "stop-and-go establishment" means establishments that are:

(i) legal holders of restaurant or R-licenses; and

(ii) a convenience store or deli that sells beer and liquor, sometimes in quantities as low as a single shot, that may be consumed on premises or immediately outside the establishment.

(2) The term "task force" means the Stop-and-Go Legislative Task Force established under this section.

(218 added Dec. 14, 2023, P.L.414, No.49)

ARTICLE III.

PENNSYLVANIA LIQUOR STORES.

Section 301. Board to Establish State Liquor Stores.--(a) The board shall establish, operate and maintain at such places throughout the Commonwealth as it shall deem essential and advisable, stores to be known as "Pennsylvania Liquor Stores," for the sale of liquor and alcohol in accordance with the provisions of and the regulations made under this act; except that no store not so already located shall be located within three hundred feet of any elementary or secondary school, nor within a dry municipality without there first having been a referendum approving such location. When the board shall have determined upon the location of a liquor store in any municipality, it shall give notice of such location by public advertisement in two newspapers of general circulation. In cities of the first class, the location shall also be posted for a period of at least fifteen days following its determination by the board as required in section 403(g) of this act. The notice shall be posted in a conspicuous place on the outside of the premises in which the proposed store is to operate or, in the event that a new structure is to be built in a similarly visible location. If, within five days after the appearance of such advertisement, or of the last day upon which the notice was posted, fifteen or more taxpayers residing within a quarter of a mile of such location, or the City Solicitor of the city of the first class, shall file a protest with the court of common pleas of the county averring that the location is objectionable because of its proximity to a church, a school, or to private residences, the court shall forthwith hold a hearing affording an opportunity to the protestants and to the board to present evidence. The court shall render its decision immediately upon the conclusion of the testimony and from the decision there shall be no appeal. If the court shall determine that the proposed location is undesirable for the reasons set forth in the protest, the board shall abandon it and find another location. The board may establish, operate and maintain such establishments for storing and testing liquors as it shall deem expedient to carry out its powers and duties under this act.

(b) The board may lease the necessary premises for such stores or establishments, but all such leases shall be made through the Department of General Services as agent of the board. The board, through the Department of General Services, shall have authority to purchase such equipment and appointments as may be required in the operation of such stores or establishments.

Section 302. Selection of Personnel.--Officers and employes of the board, except as herein otherwise provided, shall be appointed and employed subject to the provisions of the Civil Service Act.

Section 303. Management of Pennsylvania Liquor Stores.--Every Pennsylvania Liquor Store shall be conducted by a person appointed in the manner provided in the Civil Service Act who shall be known as the "manager" and who shall, under the directions of the board, be responsible for carrying out the provisions of this act and the regulations adopted by the board under this act as far as they relate to the conduct of such stores.

Section 304. When Sales May Be Made at Pennsylvania Liquor Stores.--Pennsylvania Liquor Stores, including online stores, shall be open on the hours and days that the board deems appropriate.

(a) (Deleted by amendment).

(b) (Deleted by amendment).

(304 amended June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which amended section 304, in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 305. Sales by Pennsylvania Liquor Stores.--(a) The board shall in its discretion determine where and what classes, varieties and brands of liquor and alcohol it shall make available to the public and where such liquor and alcohol will be sold. Every Pennsylvania Liquor Store shall be authorized to sell combination packages. If a person desires to purchase a class, variety or brand of liquor or alcohol not currently available from the board, he or she may place a special order for such item. A supplier of a special order may not refuse an order from a customer placing an order for one bottle of the item and may assess a surcharge on the order if the supplier otherwise requires a minimum quantity purchase. The board may require a reasonable deposit from the purchaser as a condition for accepting the order. The customer shall be notified immediately upon the arrival of the goods.

In computing the retail price of such special orders for liquor or alcohol, the board shall not include the cost of freight or shipping before applying a mark-up that is equal to ten per centum of the cost of the product and taxes but shall add the freight or shipping charges to the price after the mark-up and taxes have been applied. In addition to the ten per centum mark-up, the board shall impose handling fees on special orders which come to rest at a store, in the same manner that it imposes them on the other alcohol that it sells.

A licensed importer or a licensed vendor may place special orders on behalf of customers and may deliver the orders to customers. The orders do not need to come to rest at a store, but delivery may not occur until payment for the order has been forwarded to the board and the board has authorized the delivery of the order. A handling fee may not be assessed by the board on an order delivered directly to a customer. Liability for special orders that do not come to rest at a store, shall, until the order is delivered to the customer, remain with the licensed importer or licensed vendor that placed the order on behalf of the customer. The board shall, by January 1, 2017, implement a procedure for processing special orders which do not come to rest at a store. The board may continue to accept special orders at its stores even after the procedure is implemented.

Unless the customer pays for and accepts delivery of any such special order within ten days after notice of arrival, the store may place it in stock for general sale and the customer's deposit shall be forfeited.

((a) amended June 8, 2016, P.L.273, No.39 and Nov. 15, 2016, P.L.1286, No.166)

(a.1) The board may refuse to process a special order and preclude a vendor or importer from processing a special order, if it appears that the special order is for an item substantially similar to an item that is on the monthly list the board publishes under section 488(c) or if the board believes that demand for the item is such that it should be made available generally. If the processing of a special order is refused or precluded under this subsection, the item shall be made available through the board in the amount and manner the board deems appropriate. ((a.1) added June 8, 2016, P.L.273, No.39)

(a.2) The following shall apply:

(1) Notwithstanding any provision of the law to the contrary, except as provided under paragraph (2), no product that meets the definition of a "ready-to-drink cocktail" may be sold as a special order.

(2) A product that meets the definition of a "ready-to-drink cocktail" may be sold as a special order to licensees that do not possess a ready-to-drink cocktail permit if the products are not sold for off-premises consumption.

((a.2) added July 17, 2024, P.L.924, No.86)

(b) Every Pennsylvania Liquor Store shall sell liquors, including wine and ready-to-drink cocktails, at wholesale to hotels, restaurants, clubs, and railroad, pullman and steamship companies licensed under this act; and ready-to-drink cocktails to distributors and importing distributors that hold a ready-to-drink cocktail permit; 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. ((b) amended July 15, 2024, P.L.700, No.57 and July 17, 2024, P.L.924, No.86)

(b.1) The board may contract with a licensed transporter for hire through the Commonwealth bidding process for delivery to retail licensees and permit holders at the expense of the licensee or permit holder receiving delivery. Payment shall be by credit card or electronic fund transfer only and may occur no later than the time of delivery. ((b.1) added June 8, 2016, P.L.273, No.39)

(c) Whenever any checks issued in payment of liquor or alcohol purchased from State Liquor Stores by persons holding wholesale purchase permit cards issued by the board shall be returned to the board as dishonored, the board shall charge a fee of five dollars per hundred dollars or fractional part thereof, plus all protest fees, to the maker of such check submitted to the board. Failure to 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 shall be cause for revocation or suspension of any license issued by the board to the person who issued such check and the cancellation of the wholesale purchase permit card held by such person.

(d) No liquor or alcohol package shall be opened on the premises of a Pennsylvania Liquor Store. No manager or other employe of the board employed in a Pennsylvania Liquor Store shall allow any liquor or alcohol to be consumed on the store premises, nor shall any person consume any liquor or alcohol on such premises, except liquor and alcohol which is part of a tasting conducted pursuant to the board's regulations. Such tastings may also be conducted in the board's headquarters or regional offices. ((d) amended July 17, 2003, P.L.63, No.15)

(e) The board may sell tax exempt alcohol to the Commonwealth of Pennsylvania and to persons to whom the board shall, by regulation to be promulgated by it, issue special permits for the purchase of such tax exempt alcohol.

Such permits may be issued to the United States or any governmental agency thereof, to any university or college of learning, any laboratory for use exclusively in scientific research, any hospital, sanitorium, eleemosynary institution or dispensary; to physicians, dentists, veterinarians and pharmacists duly licensed and registered under the laws of the Commonwealth of Pennsylvania; to manufacturing chemists and pharmacists or other persons for use in the manufacture or compounding of preparations unfit for beverage purposes.

(f) Every purchaser of liquor, alcohol, corkscrews, wine or liquor accessories, trade publications, gift cards, gift certificates, wine- or liquor-scented candles or wine glasses from a Pennsylvania Liquor Store shall receive a numbered receipt which shall show the price paid therefor and such other information as the board may prescribe. Copies of all receipts issued by a Pennsylvania Liquor Store shall be retained by and shall form part of the records of such store. ((f) amended Dec. 8, 2004, P.L.1810, No.239)

(g) The board is hereby authorized and empowered to adopt and enforce appropriate rules and regulations to insure the equitable wholesale and retail sale and distribution, through the Pennsylvania Liquor Stores, of available liquor and alcohol at any time when the demand therefor is greater than the supply.

(h) Every Pennsylvania Liquor Store shall sell gift certificates and gift cards which may be redeemed for any product sold by the board. In addition, the board may sell corkscrews, wine and liquor accessories, wine- or liquor-scented candles, trade publications and wine sleeves at Pennsylvania Liquor Stores. ((h) amended Nov. 30, 2004, P.L.1727, No.221 and Dec. 8, 2004, P.L.1810, No.239)

(i) Notwithstanding any other provision of law to the contrary, the board may sell wine in containers having a capacity of sixty liters or less. ((i) amended July 5, 2012, P.L.1007, No.116)

(j) A Pennsylvania Liquor Store may continue to sell alcoholic cider and mead within the Pennsylvania Liquor Store's inventory after the effective date of this section until the alcoholic cider and mead within the Pennsylvania Liquor Store's current inventory is depleted. The board may not purchase additional alcoholic cider and mead after the effective date of this section. ((j) added June 8, 2016, P.L.273, No.39 and amended Nov. 15, 2016, P.L.1286, No.166)

(k) Notwithstanding the provisions of the act of August 26, 1971 (P.L.351, No.91), known as the State Lottery Law, the following shall apply if the board becomes a licensed lottery sales agent, as set forth in section 305 of the State Lottery Law:

(1) The Secretary of Revenue shall permit the board to operate and maintain Pennsylvania lottery instant ticket vending machines, player-activated terminals and technologies or systems subsequently approved by the Department of Revenue for the self-service sale of lottery tickets and games in Pennsylvania Liquor Stores. The board and the Secretary of Revenue shall mutually agree upon the number and location of the stores authorized to conduct self-service sales of lottery tickets and games.

(2) The board shall not be required to post any type of bond prior to conducting self-service sales of lottery tickets and games.

(3) Any commissions, compensation or any type of incentive award based upon the sale of lottery tickets and games shall be deposited by the board into the General Fund.

((k) added June 8, 2016, P.L.273, No.39)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsections (a) and (b) and added subsections (a.1), (b.1), (j) and (k), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 305.1. Confectionery Containing Alcohol or Liquor.--(a) Notwithstanding the prohibition against the manufacture of confectionery containing alcohol as set forth in the fifth clause of subsection (a) of section 3 of the act of May 13, 1909 (P.L.520, No.292), referred to as the Pure Food Law, the manufacture, storage, transportation and delivery to points out-of-State by manufacturers of confectionery containing alcohol or liquor is permitted.

(b) The sale of confectionery containing alcohol or liquor is prohibited within this Commonwealth.

(c) This section is not intended to cover, govern, nor control the sale of confectionery containing tinctures or extracts used for flavoring purposes or solvents for glazes.

(305.1 added July 13, 1987, P.L.331, No.61)

Section 306. Audits by Auditor General.--(a) It shall be the duty of the Department of the Auditor General to make all audits which may be necessary in connection with the administration of the financial affairs of the board and the Pennsylvania Liquor Stores operated and maintained by the board. Such audits shall be conducted in accordance with generally accepted accounting principles. Nothing herein shall be construed to require the Auditor General to conduct biannual inventories.

(b) At least one audit shall be made each year of the affairs of the board, and all collections made by the Pennsylvania Liquor Stores shall be audited quarterly. A copy of the annual audit of the affairs of the board shall be submitted to each member of the General Assembly.

(c) Special audits of the affairs of the board and the Pennsylvania Liquor Stores maintained and operated by the board may be made whenever they may, in the judgment of the Auditor General, appear necessary, and shall be made whenever the Governor shall call upon the Auditor General to make them.

(d) Copies of all audits made by the Department of the Auditor General shall be promptly submitted to the board and to the Governor.

(e) Unless the Department of the Auditor General shall neglect or refuse to make annual, quarterly or special Audits, as hereinabove required, it shall be unlawful for the board to expend any money appropriated to it by the General Assembly for any audit of its affairs, except for the payment of the compensation and expenses of such auditors as are regularly employed as part of the administrative staff of the board.

ARTICLE IV.

LICENSES AND REGULATIONS; LIQUOR, ALCOHOL AND

MALT AND BREWED BEVERAGES.

(A) Liquor and Alcohol (Not Including Manufacturers).

Section 401. Authority to Issue Liquor Licenses to Hotels, Restaurants and Clubs.--(a) Subject to the provisions of this act and regulations promulgated under this act, the board shall have authority to issue a retail liquor license for any premises kept or operated by a hotel, restaurant or club and specified in the license entitling the hotel, restaurant or club to purchase liquor from a Pennsylvania Liquor Store and to keep on the premises such liquor and, subject to the provisions of this act and the regulations made thereunder, to sell the same and also malt or brewed beverages to guests, patrons or members for consumption on the hotel, restaurant or club premises. Such licensees, other than clubs, shall be permitted to sell malt or brewed beverages for consumption off the premises where sold in quantities of not more than one hundred ninety-two fluid ounces in a single sale to one person as provided for in section 407. Such licenses shall be known as hotel liquor licenses, restaurant liquor licenses and club liquor licenses, respectively. No person who holds any public office that involves the duty to enforce any of the penal laws of the United States, this Commonwealth or of any political subdivision of this Commonwealth may have any interest in a hotel or restaurant liquor license. This prohibition applies to anyone with arrest authority, including, but not limited to, United States attorneys, State attorneys general, district attorneys, sheriffs and police officers. This prohibition shall also apply to magisterial district judges, judges or any other individuals who can impose a criminal sentence. This prohibition does not apply to members of the General Assembly, township supervisors, city councilpersons, mayors without arrest authority and any other public official who does not have the ability to arrest or the ability to impose a criminal sentence. This section does not apply if the proposed premises are located outside the jurisdiction of the individual in question. ((a) amended Dec. 22, 2011, P.L.530, No.113)

(b) The board may issue to any club which caters to groups of non-members, either privately or for functions, a catering license, and the board shall, by its rules and regulations, define what constitutes catering under this subsection except that any club which is issued a catering license shall not be prohibited from catering on Sundays during the hours which the club may lawfully serve liquor, malt or brewed beverages.

Section 402. License Districts; License Period; Hearings. (Hdg. amended Apr. 29, 1994, P.L.212, No.30)--(a) The board shall hold hearings on applications for licenses and renewals thereof, as it deems necessary, at such times as it shall fix for the purpose of hearing testimony for and against applications for new licenses and renewals thereof. The board shall hold a hearing on any application for a new hotel, club or restaurant liquor license or the transfer of any such license to a new location, upon the request of any person with standing to testify under subsection (b) if the request is filed with the board within the first fifteen days of posting of the notice of application pursuant to section 403(g). The board may provide for the holding of such hearings by hearing examiners learned in the law, to be appointed by the Governor, who shall not be subject to the act of August 5, 1941 (P.L.752, No.286), known as the "Civil Service Act." Such hearing examiners shall make a report to the board in each case with their recommendations. The board may fix the license period for each separate license so that the expiration dates shall be staggered as to the State. ((a) amended Apr. 29, 1994, P.L.212, No.30)

(b) Where a hearing is held in the case of an application for a new hotel, club or restaurant liquor license or an application for the transfer of a hotel, club or restaurant liquor license to a new location, the board shall permit residents residing within a radius of five hundred feet of the premises to testify at the hearing. The board and any hearing examiner thereof shall give appropriate evidentiary weight to any testimony of such residents given at the hearing.

(c) This section shall not be construed so as to grant standing to residents residing within five hundred (500) feet of a public venue or performing arts facility. ((c) added Dec. 20, 2000, P.L.992, No.141)

(d) This section shall not apply to licensees applying for a valid wine expanded permit under section 415. ((d) added June 8, 2016, P.L.273, No.39)

(402 amended June 30, 1992, P.L.327, No.66)

Compiler's Note: See section 28 of Act 39 of 2016, which added subsection (d), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 403. Applications for Hotel, Restaurant and Club Liquor Licenses.--(a) Every applicant for a hotel liquor license, restaurant liquor license or club liquor license or for the transfer of an existing license to another premises not then licensed or to another person shall file a written application with the board in such form and containing such information as the board shall from time to time prescribe, which shall be accompanied by a filing fee and an annual license fee as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." Every such application shall contain a description of that part of the hotel, restaurant or club for which the applicant desires a license and shall set forth such other material information, description or plan of that part of the hotel, restaurant or club where it is proposed to keep and sell liquor as may be required by the regulations of the board. The descriptions, information and plans referred to in this subsection shall show the hotel, restaurant, club, or the proposed location for the construction of a hotel, restaurant or club, at the time the application is made, and shall show any alterations proposed to be made thereto, or the new building proposed to be constructed after the approval by the board of the application for a license or for the transfer of an existing license to another premises not then licensed or to another person. No physical alterations, improvements or changes shall be required to be made to any hotel, restaurant or club, nor shall any new building for any such purpose, be required to be constructed until approval of the application for license or for the transfer of an existing license to another premises not then licensed or to another person by the board. After approval of the application, the licensee shall make the physical alterations, improvements and changes to the licensed premises, or shall construct the new building in the manner specified by the board at the time of approval, and the licensee shall not transact any business under the license until the board has approved the completed physical alterations, improvements and changes to the licensed premises, or the completed construction of the new building as conforming to the specifications required by the board at the time of issuance or transfer of the license, and is satisfied that the establishment is a restaurant, hotel or club as defined by this act. The board may require that all such alterations or construction or conformity to definition be completed within six months from the time of issuance or transfer of the license. The time between the approval of the initial application and issuance of operating authority to the licensee shall be considered as time in safekeeping. Failure to comply with these requirements shall be considered cause for revocation of the license. No such license shall be transferable between the time of issuance or transfer of the license and the approval of the completed alterations or construction by the board and full compliance by the licensee with the requirements of this act, unless the transfer application is accompanied by a surcharge. The surcharge shall be fifteen thousand dollars ($15,000) if the license is located in a county of the first through third class. The surcharge shall be five thousand dollars ($5,000) if the license is located in a county of the fourth through eighth class. ((a) amended Dec. 14, 2023, P.L.392, No.45)

(b) If the applicant is a natural person, his application must show that he is a citizen of the United States and has been a resident of this Commonwealth for at least two years immediately preceding his application.

(c) If the applicant is a corporation, the application must show that the corporation was created under the laws of Pennsylvania or holds a certificate of authority to transact business in Pennsylvania, that all officers, directors and stockholders are citizens of the United States, and that the manager of the hotel, restaurant or club is a citizen of the United States.

(d) Each application shall be signed and verified by oath or affirmation by the owner, if a natural person, or, in the case of an association, by a member or partner thereof, or, in the case of a corporation, by an executive officer thereof or any person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of his authority.

(e) If the applicant is an association, the application shall set forth the names and addresses of the persons constituting the association, and if a corporation, the names and addresses of the principal officers thereof. Every club applicant shall file with and as a part of its application a list of the names and addresses of its members, directors, officers, agents and employes, together with the dates of their admission, election or employment, and such other information with respect to its affairs as the board shall require.

(f) The board shall refuse to issue licenses to clubs when it appears that the operation of the licensed business would inure to the benefit of individual members, officers, agents or employes of the club, rather than to the benefit of the entire membership of the club.

(g) Every applicant for a new license or for the transfer of an existing license shall post, for a period of at least thirty days beginning with the day the application is filed with the board, in a conspicuous place on the outside of the premises or at the proposed new location for which the license is applied, a notice of such application. The notice shall indicate whether the applicant is applying for the amusement permit required by section 493(10). The notice shall be in such form, be of such size, and contain such provisions as the board may require by its regulations. Proof of the posting of such notice shall be filed with the board. The posting requirement imposed by this subsection shall not apply to license applications submitted for public venues. ((g) amended Dec. 9, 2002, P.L.1653, No.212)

(h) If any false statement is intentionally made in any part of the application, the affiant shall be deemed guilty of a misdemeanor and, upon conviction, shall be subject to the penalties provided by this article.

(i) Upon receipt of an application for a new license or transfer of an existing license to a new location, the board shall immediately notify, in writing, the municipality in which the premises proposed to be licensed are located.

Section 404. Issuance, Transfer or Extension of Hotel, Restaurant and Club Liquor Licenses.--(a) Upon receipt of the application and the proper fees, and upon being satisfied of the truth of the statements in the application that the applicant and management company or companies, if any, are the only persons in any manner pecuniarily interested in the business so asked to be licensed and that no other person will be in any manner pecuniarily interested therein during the continuance of the license, except as hereinafter permitted, and that the applicant is a person of good repute, that the premises applied for meet all the requirements of this act and the regulations of the board, that the applicant seeks a license for a hotel, restaurant or club, as defined in this act, and that the issuance of such license is not prohibited by any of the provisions of this act, the board shall, in the case of a hotel or restaurant, grant and issue to the applicant a liquor license, and in the case of a club may, in its discretion, issue or refuse a license: Provided, however, That in the case of any new license or the transfer of any license to a new location or the extension of an existing license to cover an additional area the board may, in its discretion, grant or refuse such new license, transfer or extension if such place proposed to be licensed is within three hundred feet of any church, hospital, charitable institution, school, or public playground, or if such new license, transfer or extension is applied for a place which is within two hundred feet of any other premises which is licensed by the board: And provided further, That the board's authority to refuse to grant a license because of its proximity to a church, hospital, charitable institution, public playground or other licensed premises shall not be applicable to license applications submitted for public venues or performing arts facilities: And provided further, That the board shall refuse any application for a new license, the transfer of any license to a new location or the extension of an existing license to cover an additional area if, in the board's opinion, such new license, transfer or extension would be detrimental to the welfare, health, peace and morals of the inhabitants of the neighborhood within a radius of five hundred feet of the place proposed to be licensed: And provided further, That the board shall have the discretion to refuse a license to any person or to any corporation, partnership or association if such person, or any officer or director of such corporation, or any member or partner of such partnership or association shall have been convicted or found guilty of a felony within a period of five years immediately preceding the date of application for the said license. The board may enter into an agreement with the applicant concerning additional restrictions on the license in question. If the board and the applicant enter into such an agreement, such agreement shall be binding on the applicant. Failure by the applicant to adhere to the agreement will be sufficient cause to form the basis for a citation under section 471 and for the nonrenewal of the license under section 470. If the board enters into an agreement with an applicant concerning additional restrictions, those restrictions shall be binding on subsequent holders of the license until the license is transferred to a new location or until the board enters into a subsequent agreement removing those restrictions. If the application in question involves a location previously licensed by the board, then any restrictions imposed by the board on the previous license at that location shall be binding on the applicant unless the board enters into a new agreement rescinding those restrictions. The board may, in its discretion, refuse an application for an economic development license under section 461(b.1) or an application for an intermunicipal transfer of a license if the board receives a protest from the governing body of the receiving municipality. The receiving municipality of an intermunicipal transfer or an economic development license under section 461(b.1) may file a protest against the transfer of a license into its municipality, and the receiving municipality shall have standing in a hearing to present testimony in support of or against the issuance or transfer of a license. Upon any opening in any quota, an application for a new license shall only be filed with the board for a period of six months following said opening. ((a) amended June 5, 2020, P.L.213, No.29)

(b) If the applicant intends to use a management company to operate, manage or supervise all or part of the operation of the licensed premises, the licensee must file a written application with the board on a form or forms as the board shall from time to time prescribe. The application shall be accompanied by a fee in an amount determined by the board. The board shall refuse the application if the management company or any person involved with the management company would be precluded from holding an interest in the underlying license.

(404 amended June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which amended section 404, in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 405. License Fees.--(a) License fees for hotel and restaurant liquor licenses shall be graduated according to the population of the municipality as determined by the last preceding decennial census of the United States in which the hotel or restaurant is located, 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."

(b) Every applicant for a club liquor license shall pay to the board a license fee, as prescribed in section 614-A of "The Administrative Code of 1929," except clubs to which catering licenses are issued, in which cases the license fees shall be the same as for hotels and restaurants located in the same municipality.

(c) All license fees authorized under this section shall be collected by the board for the use of the municipalities in which such fees were collected.

(d) 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, or upon notification to the board by the Department of Revenue or the Department of Labor and Industry of its objection, the license of such person shall immediately become invalid and shall remain invalid until payment and all charges are received by the board.

(e) Every application for a restaurant liquor license for a nonprimary pari-mutuel wagering location or a racetrack shall be accompanied by an applicant's fee of five thousand dollars ($5,000) for the first year of a licensing period. Thereafter, the nonprimary pari-mutuel wagering location or the racetrack shall be subject to the above stated fees for restaurant licenses for each year of a licensing period. ((e) amended Dec. 21, 1998, P.L.1202, No.155)

(405 amended Apr. 29, 1994, P.L.212, No.30)

Section 406. Sales by Liquor Licensees; Restrictions.--(a) (1) Every hotel, restaurant or club liquor licensee may sell liquor and malt or brewed beverages by the glass, open bottle or other container, and in any mixture, for consumption only in that part of the hotel or restaurant habitually used for the serving of food to guests or patrons, or in a bowling alley that is immediately adjacent to and under the same roof as a restaurant, and in the case of hotels, to guests, and in the case of clubs, to members, in their private rooms in the hotel or club. No club licensee nor its officers, servants, agents or employes, other than one holding a catering license, shall sell any liquor or malt or brewed beverages to any person except a member of the club. The holder of a restaurant license located in a hotel may sell liquor or malt or brewed beverages for consumption in that part of the restaurant habitually used for the serving of meals to patrons and also to guests in private guest rooms in the hotel. For the purpose of this paragraph, any person who is an active member of another club which is chartered by the same state or national organization shall have the same rights and privileges as members of the particular club. For the purpose of this paragraph, any person who is an active member of any volunteer firefighting company, association or group of this Commonwealth, whether incorporated or unincorporated, shall upon the approval of any club composed of volunteer firemen licensed under this act, have the same social rights and privileges as members of such licensed club. For the purposes of this paragraph, the term "active member" shall not include a social member. Any club licensee which is either an incorporated unit of a national veterans' organization or an affiliated organization as defined in section 461.1 shall be permitted to sell liquor or malt or brewed beverages to any active member of another unit which is chartered by the same national veterans' organization or to any member of a nationally chartered auxiliary associated with the same national veterans' organization.

(2) Hotel and restaurant liquor licensees, municipal golf course restaurant liquor licensees and privately-owned public golf course restaurant licensees may sell liquor and malt or brewed beverages only after seven o'clock antemeridian of any day until two o'clock antemeridian of the following day, except Sunday, and except as hereinafter provided, may sell liquor and malt or brewed beverages on Sunday between the hours of twelve o'clock midnight and two o'clock antemeridian.

(2.1) Airport restaurant liquor licensees may sell liquor and malt or brewed beverages only after five o'clock antemeridian of any day and until two o'clock antemeridian of the following day.

(3) Hotel and restaurant liquor licensees, municipal golf course restaurant liquor licensees and privately-owned public golf course restaurant licensees may sell liquor and malt or brewed beverages on Sunday between the hours of nine o'clock antemeridian and two o'clock antemeridian Monday upon purchase of a special permit from the board at an annual fee as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." Airport restaurant liquor licensees may sell liquor and malt or brewed beverages on Sunday between the hours of five o'clock antemeridian and two o'clock antemeridian Monday upon purchase of a special permit from the board at an annual fee as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." ((3) amended Nov. 15, 2016, P.L.1286, No.166)

(3.1) ((3.1) deleted by amendment Nov. 29, 2006, P.L.1421, No.155)

(4) Hotel and restaurant liquor licensees, municipal golf course restaurant liquor licensees and privately-owned public golf course restaurant licensees which do not qualify for and purchase such special permit, their servants, agents or employes may sell liquor and malt or brewed beverages only after seven o'clock antemeridian of any day and until two o'clock antemeridian of the following day, and shall not sell after two o'clock antemeridian on Sunday. No club licensee or its servants, agents or employes may sell liquor or malt or brewed beverages between the hours of three o'clock antemeridian and seven o'clock antemeridian on any day. No public service liquor licensee or its servants, agents, or employes may sell liquor or malt or brewed beverages between the hours of two o'clock antemeridian and seven o'clock antemeridian on any day.

(5) ((5) deleted by amendment May 31, 1996, P.L.312, No.49)

(6) Notwithstanding any provisions to the contrary, whenever the thirty-first day of December falls on a Sunday, every hotel or restaurant liquor licensee, their servants, agents or employes may sell liquor and malt or brewed beverages on any such day after one o'clock postmeridian and until two o'clock antemeridian of the following day.

(6.1) Notwithstanding any provisions to the contrary, whenever Saint Patrick's Day falls on a Sunday, every hotel or restaurant liquor licensee, their servants, agents or employes may sell liquor and malt or brewed beverages on any such day after seven o'clock antemeridian and until two o'clock antemeridian of the following day.

(7) Notwithstanding any other provision of this act, if Groundhog Day falls on a Sunday, a hotel or restaurant licensee or the hotel or restaurant licensee's servants, agents or employes may sell liquor and malt or brewed beverages on that day after seven o'clock antemeridian and until two o'clock antemeridian of the following day.

((a) amended June 8, 2016, P.L.273, No.39)

(b) Such Sunday sales by hotel and restaurant liquor licensees which qualify for and purchase such special permit, their servants, agents and employes, shall be made subject to the restrictions imposed by the act on sales by hotels and restaurants for sales on weekdays as well as those restrictions set forth in this section. ((b) amended Apr. 29, 1994, P.L.212, No.30)

(c) Notwithstanding any provision of this act, on the Sunday on which the sporting event commonly referred to as the "Super Bowl" is conducted, licensees who do not possess the special annual permit provided for in subsection (a)(3), their servants, agents or employes may sell liquor and malt or brewed beverages on such Sunday after one o'clock postmeridian and until two o'clock antemeridian of the following day. ((c) added Dec. 20, 2000, P.L.992, No.141)

(d) Subject to section 412, licensed public venues may sell liquor and malt or brewed beverages on Sundays from eleven o'clock antemeridian until midnight without the need to acquire or qualify for a special permit. In addition, subject to section 413, licensed performing arts facilities may sell liquor and malt or brewed beverages on Sundays from ten o'clock antemeridian until ten o'clock postmeridian without the need to acquire or qualify for a special permit. ((d) amended Nov. 21, 2019, P.L.635, No.86)

(e) (1) The holder of a hotel license or the holder of a restaurant license located in a hotel may allow persons to transport liquor or malt or brewed beverages from the licensed portion of the premises to the unlicensed portion of the premises, so long as the liquor or malt or brewed beverages remain on the hotel property. In addition, a holder of a restaurant or club license located on a golf course may sell, furnish or give liquor or malt or brewed beverages on the unlicensed portion of the golf course so long as the liquor or malt or brewed beverages remain on the restaurant, club or golf course. The holder of a restaurant license located immediately adjacent to and under the same roof of a bowling center may allow persons to transport liquor or malt or brewed beverages from the licensed portion of the premises to the unlicensed portion of the premises, so long as the liquor or malt or brewed beverages remain within the bowling center. In addition, the holder of a hotel license or a restaurant license may allow persons who have purchased but only partially consumed a bottle of wine on the premises to remove the bottle from the premises so long as the bottle was purchased in conjunction with a meal which was consumed on the premises and so long as the bottle is resealed. For purposes of this subsection, "wine" shall have the meaning given to it under section 488(i). For purposes of this section and section 432, "meal" shall mean food prepared on the premises, sufficient to constitute breakfast, lunch or dinner; it shall not mean a snack, such as pretzels, popcorn, chips or similar food.

(2) A holder of a restaurant or club license located on a golf course may store liquor or malt or brewed beverages in a permanent facility on the unlicensed portion of the golf course so long as the liquor or malt or brewed beverages remain on the restaurant, club or golf course without regard to whether there is any intervening public thoroughfare.

((e) amended Dec. 22, 2011, P.L.530, No.113)

(f) The holder of a hotel or restaurant liquor license may obtain an off-premises catering permit subject to section 493(33) to hold a catered function off the licensed premises and on otherwise unlicensed premises where the licensee may sell wine, liquor and malt or brewed beverages by the glass, open bottle or other container, and in any mixture together with food, for consumption on those premises. Functions conducted under the authority of the permit shall be subject to the following:

(1) alcohol may be provided only during the days and hours that the license holder may otherwise sell alcohol;

(2) all servers at the off premises catered function shall be in compliance with the responsible alcohol management provisions under section 471.1;

(3) each catered function shall last no longer than one day and an unlimited number of catered functions may be held each calendar year by each license holder for use with a particular license; ((3) amended Dec. 14, 2023, P.L.421, No.51)

(4) a catered function shall not be held at a location that is already subject to the applicant's or another licensee's license;

(5) a permit shall not be issued to an applicant whose license is in safekeeping;

(6) a permit shall not be issued to a location that is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1);

(7) a permit shall not be issued to a location that is subject to a pending license suspension under section 471 or the one-year prohibition on the issuance or transfer of a license under section 471(b);

(8) no alcohol may be taken from the permitted location by any patron, but the applicant may transport alcohol to and from its licensed premises to the proposed premises;

(9) except as provided under paragraph (10.1), written notice of the catered function as enumerated in paragraph (10) shall be provided to the local police and the enforcement bureau at least seven days in advance of the event; ((9) amended Dec. 22, 2025, P.L.337, No.56)

(10) except as provided under paragraph (10.1), written notice shall be provided to the board at least fourteen days prior to a catered function. Written notice must include the location of the function, time of the function, host of the function, general information regarding the guests expected at the function as well as any information the board shall from time to time prescribe. The board may, in its discretion, accept notice in an electronic format. The board may, in its discretion, waive the fourteen-day notice period for a catered function if: (Intro. par. amended Dec. 22, 2025, P.L.337, No.56)

(i) the applicant has previously conducted functions that meet the requirements of this act;

(ii) the applicant is a licensee in good standing with the board;

(iii) notification was received at least seven days prior to the catered function; and

(iv) the applicant pays a late fee of one hundred dollars ($100);

(10.1) if the catered function is part of an end-of-life memorial event, notice to the local police, the enforcement bureau and the board shall not be required more than 24 hours before the catered event. For purposes of this paragraph, an "end-of-life memorial event" is a gathering of people where guests honor a person who died within the previous seven days; ((10.1) added Dec. 22, 2025, P.L.337, No.56)

(11) the board shall, in its discretion, approve or disapprove a catered function if the applicant fails to provide timely notice of the catered function, does not intend to conduct a function that meets the requirements of this act or has previously conducted a function that did not meet the requirements of this act;

(12) if a catered function is scheduled to occur on private property, the owner of that property is deemed to have submitted to the jurisdiction of the enforcement bureau, and the warrant required by section 211(a)(2) of this act shall not be necessary for the enforcement bureau to enter and search the premises during the function or any activities related to the function;

(13) no catered function may be held for more than six hours per day and must end by midnight unless the catered function occurs on December 31 of any calendar year on which date the catered function must end by two o'clock antemeridian; ((13) amended Dec. 14, 2023, P.L.421, No.51)

(14) neither the owner of the property nor the applicant may sell tickets to a catered function unless one of the following conditions is met:

(i) the applicant has contracted with an eligible entity for the function, and the function is being used to raise money for the eligible entity's organization;

(ii) the applicant has contracted with 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)), for an event which has the sole purpose of raising funds for that nonprofit organization; or

(iii) the applicant has contracted with an organization that holds tax-exempt status under section 527 of the Internal Revenue Code of 1986;

(15) the catered function location shall be subject to section 493(34) of this act;

(16) catered functions may not be held in locations that are subject to a pending, protested transfer application;

(17) a permit may not be issued to a license holder whose license is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1);

(18) a permit shall not be issued to a licensee for use in any location that is mobile; and

(19) a permit shall not be issued for use on any location used for parking at a sports event or concert event.

((f) amended June 8, 2016, P.L.273, No.39)

(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 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 twenty-four-hour per week limit. ((g) amended July 15, 2024, P.L.700, No.57)

(h) Notwithstanding any other provision of law or regulation, a catering club licensee may cater a self-sponsored event no more than twenty-four occasions during its licensed term with no more than two events in any calendar month. ((h) amended Dec. 14, 2023, P.L.421, No.51)

(i) Notwithstanding any other provision of law or regulation, a club that sanctions or sponsors an event between participants of its bona fide membership and the participants from any licensed entity may sell alcohol to those nonmembers provided the following:

(1) the event is scheduled more than twenty-four hours in advance; and

(2) the nonmember participants are listed on a roster or registration list provided by a league, organization or licensed entity prior to the beginning of the event.

((i) added June 8, 2016, P.L.237, No.39)

(j) Liquor and wine in the possession of a licensee at the time the licensed business closes permanently may be sold to another licensee qualified to sell such products. The licensee shall notify the board in writing advising the board of the name of the licensee and identifying any product sold to that licensee, as well as the description of the liquor, including brand names, sizes and numbers of containers sold to another licensee. ((j) added Nov. 5, 2021, P.L.424, No.81)

(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. ((k) added July 15, 2024, P.L.700, No.57)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsections (a), (f) and (g) and added subsections (h) and (i), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 406.1. Secondary Service Area.--(a) Upon application of any restaurant, hotel, club, municipal golf course liquor licensee or manufacturer of malt or brewed beverages, and payment of the appropriate fee, the board may approve a secondary service area by extending the licensed premises to include one additional permanent structure with dimensions of at least one hundred seventy-five square feet, enclosed on three sides and having adequate seating. Such secondary service area must be located on property having a minimum area of one (1) acre, and must be on land which is immediate, abutting, adjacent or contiguous to the licensed premises with no intervening public thoroughfare; however, the original licensed premises and the secondary service area must be located on the same tract of land. The board shall have discretion to refuse the application for a secondary service area in the same manner it has discretion to refuse an application for transfer of the license to a new location as set forth in section 404. There shall be no requirement that the secondary service area be physically connected to the original licensed premises. In addition, there shall be no requirement that the secondary service area be located in the same municipality as the original licensed premises, provided, however, that the board shall not approve a secondary service area in this case if that secondary service area is located in any municipality where the granting of liquor licenses has been prohibited as provided in this article. Notwithstanding 40 Pa. Code § 7.21, the licensee shall be permitted to store, serve, sell or dispense food, liquor and malt or brewed beverages at the board approved secondary service area.

(b) If the applicant is a manufacturer of malt or brewed beverages, the board may approve a secondary service area for use as a brewery pub pursuant to section 446, notwithstanding any intervening public thoroughfare, so long as the proposed secondary service area is within one thousand feet of the licensed premises. Notwithstanding any other provision of this act, the licensed premises and the secondary service area may be located on different tracts of lands.

(406.1 amended Jan. 6, 2006, P.L.1, No.1)

Section 407. Sale of Malt or Brewed Beverages by Liquor Licensees.--(a) (1) Every liquor license issued to a hotel, restaurant, club, or a railroad, pullman or steamship company under this subdivision (A) for the sale of liquor shall authorize the licensee to sell malt or brewed beverages at the same places but subject to the same restrictions and penalties as apply to sales of liquor, except that licensees other than clubs may sell malt or brewed beverages for consumption off the premises where sold in quantities of not more than one hundred ninety-two fluid ounces in a single sale to one person. The sales may be made in either open or closed containers, Provided, however, That a municipality may adopt an ordinance restricting open containers in public places. No licensee under this subdivision (A) shall at the same time be the holder of any other class of license, except a retail dispenser's license authorizing the sale of malt or brewed beverages only. Sales of malt or brewed beverages must occur on the licensed premises.

(2) If a restaurant liquor license holder has an interior connection to another business that it operates, the restaurant liquor license holder may use one or more of the registers in the other business to sell malt or brewed beverages for off-premises consumption under the following conditions:

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

(ii) the registers are located in the same building as the licensed premises;

(iii) the registers comply with the signage, staffing, training, carding, scanning and prohibition on the sharing of data provisions of section 415(a)(8) and (9); and

(iv) the board has been provided notice of compliance with this paragraph by the restaurant liquor license holder, including square footage of the building and the location of the specific registers to be used prior to their use.

(3) The registers used under paragraph (2) shall be deemed to be licensed areas but no formal application beyond notice to the board shall be required. The registers may be used by the other business.

((a) amended June 5, 2020, P.L.213, No.29)

(b) (1) Notwithstanding any other provision of law or any existing permit authorizing the sale of malt or brewed beverages for consumption off the premises, a restaurant licensee located in a city of the first class who is otherwise permitted to sell malt or brewed beverages for consumption off the premises may not do so after October 31, 2007, unless it acquires a permit from the board.

(2) The application for a permit to sell malt or brewed beverages for consumption off the premises shall be on forms designated by the board and contain such information as the board may require. The application and renewal fee shall be as prescribed in section 614-A(27) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." However, no applicant who currently has a permit shall be required to pay any additional fees under section 614-A(27) of "The Administrative Code of 1929" in order to continue selling malt or brewed beverages for consumption off the premises at its currently licensed location for the licensing term beginning November 1, 2007, and ending October 31, 2008.

(3) The application for a permit to sell malt or brewed beverages for consumption off the premises must be accompanied by a copy of the approval of such request by the hearing board authorized by this section.

(4) A city of the first class shall create a hearing board within its Department of Licenses and Inspections to hear requests from licensees who are seeking a permit from the hearing board authorizing the licensee to sell malt or brewed beverages for consumption off the premises. Each hearing board shall consist of three persons appointed by the mayor of the city of the first class, who are subject to approval by the city council of the city of the first class. Each person so appointed shall serve at the pleasure of the appointing authority. The hearing board may, in its discretion, hold hearings to adduce testimony regarding a request. The hearing board must render a decision within ninety days of receipt of a request for approval of a permit to sell malt or brewed beverages for consumption off the premises. The hearing board must approve the request unless it finds that doing so would adversely affect the welfare, health, peace and morals of the city or its residents. A decision by the hearing board to deny a request may be appealed to the court of common pleas in the county in which the city is located. The failure to render a decision by the hearing board within the required time period shall be deemed approval of the permit.

(5) Upon being satisfied that the applicant has fulfilled all the requirements of this act and the board's regulations, the board shall approve the application. Such permits shall expire upon the transfer of the license to a new entity or to a new location, or both; otherwise, such permits shall expire at the same time as the expiration of the underlying license.

((b) amended Nov. 29, 2006, P.L.1421, No.155)

(407 amended July 7, 2006, P.L.584, No.84)

Section 408. Public Service Liquor Licenses.--(a) Subject to the provisions of this act and regulations promulgated under this act, the board, upon application, shall issue retail liquor licenses to railroad or pullman companies permitting liquor and malt or brewed beverages to be sold in dining, club or buffet cars to passengers for consumption while enroute on such railroad, and may issue retail liquor licenses to steamship companies permitting liquor or malt or brewed beverages to be sold in the dining compartments of steamships or vessels wherever operated in the Commonwealth, except when standing or moored in stations, terminals or docks within a municipality wherein sales of liquor for consumption on the premises are prohibited, and may further issue retail liquor licenses to airline companies permitting liquor or malt or brewed beverages to be sold to passengers for consumption while enroute on such airline. Such licenses shall be known as public service liquor licenses. The board may issue a master license to railroad or pullman companies to cover the maximum number of cars which the company shall estimate that it will operate within the Commonwealth on any one day. Such licensees shall file monthly reports with the board showing the maximum number of cars operated in any one day during the preceding month, and if it appears that more cars have been operated than covered by its license it shall forthwith remit to the board the sum of twenty dollars for each extra car so operated.

(b) For the purpose of considering an application by a steamship or airline company for a public service liquor license, the board may cause an inspection of the steamship or vessel or aircraft for which a license is desired. The board may, in its discretion, grant or refuse the license applied for and there shall be no appeal from its decision, except that an action of mandamus may be brought against the board in the manner provided by law.

(c) Every applicant for a public service liquor license shall pay to the board for each of the maximum number of dining, club or buffet cars which the applicant estimates it will have in operation on any one day an annual fee as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." ((c) amended Dec. 21, 1998, P.L.1202, No.155)

(d) Unless previously revoked, every license issued by the board under this section shall expire if the annual fee is not timely paid or on the last day of the license period for which the license is issued. Licenses issued under the provisions of this section shall be renewed as herein provided, upon the filing of applications in such form as the board shall prescribe, but no license shall be renewed until the applicant shall pay the requisite license fee. ((d) amended Dec. 21, 1998, P.L.1202, No.155)

(e) Except as otherwise specifically provided, sales of liquor and malt or brewed beverages by the aforesaid public service company licensees shall be made in accordance with, and shall be subject to, the provisions of this act relating to the sale of liquors by restaurant licensees.

Section 408.1. Trade Show and Convention Licenses.--(408.1 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.2. City-Owned Stadia.--(408.2 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.3. Performing Arts Facilities.--(408.3 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.4. Special Occasion Permits.--

(a) ((a) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(a.1) ((a.1) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(b) ((b) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(d) ((d) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(d.1) ((d.1) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(d.2) ((d.2) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(e) ((e) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(e.1) ((e.1) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(f) ((f) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(g) ((g) deleted by amendment Dec. 9, 2002, P.L.1653, No.212)

(h) The board may issue a special occasion permit to an eligible entity. The board may also issue a special occasion permit to one auxiliary of any eligible entity. Any eligible entity that wishes to acquire a special occasion permit must submit a written application to the board in such form and containing such information as the board shall from time to time prescribe. The fee for special occasion permits shall be as set forth under section 614-A(24) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929."

(i) Only one special occasion permit shall be issued to each eligible entity per calendar year. Each permit may only be used for nine consecutive or nonconsecutive days and an additional ten consecutive days. ((i) amended Dec. 27, 2019, P.L.822, No.116)

(j) The eligible entity shall give the local police department or the Pennsylvania State Police if there is no local police department written notice at least forty-eight hours prior to each use of the special occasion permit. Written notice consists of notifying the police of the date, time and place of the impending sale of alcoholic beverages.

(k) Special occasion permit holders may sell alcoholic beverages during the same hours as restaurant liquor license holders. In addition, special occasion permit holders may sell any type of alcohol for consumption off the licensed premises.

(l) The issuance of a special occasion permit does not preclude the eligible entity from acquiring and retaining any other liquor license to which it may be entitled; however, the board shall not issue a special occasion permit for premises already licensed by the board unless the applicant owns the premises and is a volunteer fire company, volunteer rescue company or volunteer ambulance squad.

(m) The following apply:

(1) The purpose of a special occasion permit is to provide the eligible entity with a means of raising funds for itself. The permit may be used in conjunction with activities and events involving other entities; however, no one other than the holder of the special occasion permit may acquire a pecuniary interest in the permit.

(2) An entity operating in conjunction with a special occasion permit holder may collect and manage funds raised using a special occasion permit if:

(i) the special occasion permit holder is the primary host of the activity or event; and

(ii) the funds raised are used for the benefit of the special occasion permit holder.

((m) amended Dec. 27, 2019, P.L.822, No.116)

(n) The board may refuse to issue a special occasion permit if it finds that the applicant is not reputable or does not otherwise meet the requirements of this act. The right to refuse to issue a special occasion permit may be based in whole or in part on the applicant's prior operational history with either a special occasion permit or a license issued by the board.

(o) The holder of a special occasion permit is subject to the provisions of section 493(1).

(p) Notwithstanding any provision of law to the contrary, if the eligible entity is a regatta in a city of the second class held on the grounds of a State park, the regatta may install a security fence or similar enclosure around the boundary of the State park or a portion of the State park during the regatta and may charge an admittance fee not to exceed five dollars ($5) per day.

(q) ((q) expired January 1, 2007. See Act 85 of 2006.)

(r) Notwithstanding any provision of law to the contrary, the board may issue a special occasion permit to an eligible entity located in a dry municipality if the board is provided with a copy of a resolution adopted by the municipality's governing body confirming support for the issuance of the special occasion permit. ((r) added July 16, 2007, P.L.107, No.34)

(408.4 amended Dec. 9, 2002, P.L.1653, No.212)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (i), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Compiler's Note: Section 25 of Act 155 of 1998, which amended subsections (a) and (c), provided that the amendment shall apply to arts facilities or museums existing on the effective date Act 155.

Section 408.5. Licenses for City-owned Art Museums, Cities First Class; Art Museums Maintained by Certain Non-profit Corporations in Cities of the Second Class; Non-profit Science and Technology Museums in Cities of the First Class and in Cities of the Second Class; and Regional History Centers in Cities of the Second Class.--(408.5 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.6. Performing Arts Facilities in Certain Municipalities.--(408.6 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.7. Performing Arts Facilities in First and Second Class Cities.--(408.7 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.8. Trade Shows and Convention Licenses; Cities of the Third Class.--(408.8 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.9. Stadium and Restaurant Licenses in Third Class Cities.--(408.9 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.10. Recreation Facilities.--(408.10 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.11. Seasonal Outdoor Cafe.--(408.11 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.12. Wine and Spirits Auction Permits.--(a) Upon application of:

(1) any nonprofit hospital;

(2) any nonprofit public television station which is a member of the Pennsylvania Public Television Network;

(3) any orchestra located in a county of the first, second or third class which is operated by a nonprofit corporation;

(4) any museum located in a county of the first, second, third or fourth class which is operated by a nonprofit corporation;

(5) any nonprofit corporation located in any county of the third class which trains and places dogs for people who are physically handicapped;

(6) any nationally recognized community-based voluntary health organization committed to fighting cancer which has been in existence for at least ninety years;

(7) any nationally recognized emergency response organization that offers humanitarian care to victims of war or natural disaster and has been in existence for at least one hundred twenty-five years;

(8) any nationally recognized organization whose purpose is to serve as an agent to collect funds for local charities, as well as to coordinate relief services, counsel and refer clients to cooperating agencies and make emergency assistance grants and has been in existence for at least one hundred twenty years;

(9) any hospice as defined under section 802.1 of the act of July 19, 1979 (P.L.130, No.48), known as the "Health Care Facilities Act";

(10) institution of higher education;

(11) any nationally recognized community-based health organization committed to funding Type 1 Diabetes research;

(12) any nationally recognized community-based voluntary health organization committed to fighting cancer which has been in existence for at least twenty years;

(13) any nonprofit organization as defined in section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) and that is registered with the Bureau of Corporations and Charitable Organizations of the Department of State, recognized as a community-based voluntary organization committed to fighting cancer and has been in existence for at least five years; or

(14) any community-based voluntary health organization in a county of the second class which enriches the lives of children and young adults with disabilities and chronic illnesses;

and upon payment of a fee of thirty dollars ($30) per day, the board shall issue a wine and spirits auction permit good for a period of not more than four consecutive or nonconsecutive days per calendar year.

((a) amended Dec. 27, 2019, P.L.822, No.116)

(b) Subject to clause (1) of section 493 of this act, such wine and spirits auction permit shall authorize the permittee to sell, by auction, wine and spirits by the bottle or case to any person on any day for which the permit is issued, provided, however, that such permit shall only be issued in any city, borough, incorporated town or township in which the sale of liquor and/or malt or brewed beverages has been approved by the electorate. Any wine and spirits purchased under this section shall not be consumed at the place of purchase.

(d) Wine and spirits auction permits shall only be issued for use at an event which is used by the permittee as a means of raising funds for its operation.

(e) The hours during which the holder of a wine and spirits auction permit may sell wine and spirits shall be limited to the hours set forth in section 406 of this act which are applicable to hotel and restaurant licensees, provided, however, that wine and spirits auction permittees may sell wine and spirits on Sunday between the hours of seven o'clock antemeridian and until two o'clock antemeridian Monday.

(f) Wine and spirits auction permits may be issued for sales on premises which are either licensed or unlicensed under this act.

(g) Any wine and spirits sold under this section shall be purchased from a Pennsylvania Liquor Store, a Pennsylvania limited winery, limited distillery or any seller authorized to sell wine or spirits by the bottle or case in this Commonwealth or shall be donated by a person who has legally acquired the wine or spirits and legally possesses it in this Commonwealth. If the donated wine or spirits is from a location outside of this Commonwealth, the wine or spirits may be imported as a gift and subject to the procedures and fees imposed by the board. ((g) amended July 2, 2019, P.L.324, No.45)

(h) If any wine or spirits sold under this section is purchased from a seller other than a Pennsylvania Liquor Store or a Pennsylvania limited winery or limited distillery, the permittee shall provide thirty days' notice to the board of its intent to purchase such wine or spirits. The notice shall include a description of the wine or spirits to be purchased, the quantity to be purchased, the name of the seller and any other information which the board may require. The permittee shall comply with all board regulations regarding taxes and fees.

(i) If the wine or spirits is purchased from an entity other than the board, the permittee shall be responsible for paying to the board an amount equal to all taxes which would have been paid on such wine or spirits if it had been purchased from a Pennsylvania Liquor Store, together with a processing fee to be determined by the board. ((i) amended July 2, 2019, P.L.324, No.45)

(j) As a condition of the permit, the permittee shall not broadcast by way of radio or television or disseminate by print media nor cause the broadcast by way of radio, television or dissemination by the print media of the price of any wine or spirits sold or to be sold under this section.

(k) Any person selling wine or spirits in violation of this section shall, upon summary conviction, be sentenced to pay a fine of two hundred fifty dollars ($250) for the first offense and a fine of five hundred dollars ($500) for each subsequent offense. This fine shall be in addition to any other penalty imposed by law for the illegal sale of liquor or malt or brewed beverages.

(l) "Auction," as used in this section, shall mean the offer to sell wine and spirits by the permittee to the members of an audience congregated for the purpose of making bids for the purchase of the wine and spirits in an effort by the permittee to advance the amount of the bids to obtain the highest or most favorable offer.

(408.12 amended Nov. 15, 2016, P.L.1286, No.166)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (a), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 408.13. Transfer of Restaurant Licenses to Deteriorated Areas.--(408.13 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.14. Multipurpose Cultural and Science Facilities Licenses.--(408.14 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.15. Multipurpose County-owned Arena and Convention Center License.--(408.15 repealed Dec. 20, 2000, P.L.992, No.141)

Section 408.16. National Event Permit.--(408.16 expired August 31, 2000. See Act 47 of 1999)

Section 408.17. Philadelphia 250 Permits.--(408.17 expired July 20, 2026. See Act 8 of 2026.)

Section 409. Sacramental Wine Licenses; Fees; Privileges; Restrictions.--(a) Subject to the provisions of this act in general and more particularly to the following provisions of this section, the board shall issue sacramental wine licenses to qualified applicants.

(b) Every applicant for a sacramental wine license shall file a written application with the board in such form as the board shall from time to time prescribe, which shall be accompanied by a filing fee and a license fee as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." Every such application shall contain a description of the premises for which the applicant desires a license and shall set forth such other material information as may be required by the board.

(c) If the applicant is a natural person, his application must show that he is a citizen of the United States or a resident alien and a resident of this Commonwealth. If the applicant is an association or partnership, each and every member of the association or partnership must be a citizen of the United States or a resident alien and a resident of this Commonwealth. If the applicant is a corporation, the application must show that the corporation was created under the laws of Pennsylvania or holds a certificate of authority to transact business in Pennsylvania, and that all officers, directors and stockholders are citizens of the United States or resident aliens.

(d) Except as otherwise provided under subsection (d.1), holders of such licenses may purchase from manufacturers or bring or import into this Commonwealth wine to be used for sacramental or religious purposes only, and bottle and sell the same to priests, clergymen and rabbis for use in the cathedral, church, synagogue or temple, or for sustaining members of the congregation or members of the faith who attend religious services, duly certified by such priests, clergymen or rabbis. The sale and use of wine for sacramental or religious purposes shall be subject to and in accordance with the regulations of the board.

(d.1) In addition to the privileges conferred under subsection (d), the holder of a sacramental wine license who owns or operates an eating place or a restaurant may sell food for consumption on or off the premises and sell for consumption on the premises only the wine that it may acquire and sell pursuant to its license. In addition, the holder of a sacramental wine license may allow persons who have purchased but only partially consumed a bottle of wine on the premises to remove the bottle from the premises so long as the bottle was purchased in conjunction with a meal that was consumed on the premises and so long as the bottle is resealed.

(e) Except as provided under subsection (d.1), any wine purchased under the authority of this section shall not be used for any other than sacramental or religious purposes. Sacramental wine may not be sold by any person except the holder of a sacramental wine license.

(f) Every sacramental wine licensee shall maintain on the licensed premises such records as the board may prescribe. No deliveries of sacramental wine shall be made unless and until an order therefor is on file at the principal place of business in Pennsylvania. All shipments into Pennsylvania of wine to be used as prescribed in this section shall be consigned to the principal place of business maintained by the licensee.

(g) Any such license may be suspended or revoked by the board upon proof satisfactory to it that the licensee has violated any law of this Commonwealth or any regulation of the board relating to liquor and alcohol. The procedure in such cases shall be the same as for the revocation and suspension of hotel, restaurant and club licenses.

(h) For purposes of this section the term "sacramental wine" shall mean any wine that is clearly marked on the bottle by the manufacturer as being produced or manufactured in accordance with religious law, practice or custom.

(409 amended June 25, 2010, P.L.217, No.35)

Section 410. Liquor Importers' Licenses; Fees; Privileges; Restrictions.--(a) Subject to the provisions of this act in general and more particularly to the following provisions of this section, the board shall issue liquor importers' licenses to qualified applicants.

(b) Every applicant for an importer's license shall file a written application with the board in such form as the board shall from time to time prescribe. The filing and license fees 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." Every such application shall contain a description of the principal place of business for which the applicant desires a license and shall set forth such other material information as may be required by the board. ((b) amended Dec. 21, 1998, P.L.1202, No.155)

(c) The holder of an importer's license may have included in such license one warehouse wherein only his liquor may be kept and stored, located in the same municipality in which his licensed premises is situate, and not elsewhere, unless such licensee secures from the board a license for each additional storage warehouse desired. The board is authorized and empowered to issue to a holder of an importer's license a license for an additional storage warehouse or warehouses located in this Commonwealth, provided such licensed importer files with the board a separate application for each warehouse in such form and containing such information as the board may from time to time require. The filing and license fees shall be as prescribed in section 614-A of "The Administrative Code of 1929." ((c) amended Dec. 21, 1998, P.L.1202, No.155)

(d) If the applicant is a natural person, his application must show that he is a citizen of the United States or a resident alien and a resident of this Commonwealth. If the applicant is an association or partnership, each and every member of the association or partnership must be a citizen of the United States or a resident alien and a resident of this Commonwealth. If the applicant is a corporation, the application must show that the corporation was created under the laws of Pennsylvania or holds a certificate of authority to transact business in Pennsylvania, and that all officers, directors and stockholders are citizens of the United States or resident aliens. ((d) amended Dec. 9, 2002, P.L.1653, No.212)

(e) Importers' licenses shall permit the holders thereof to bring or import liquor and ready-to-drink cocktails from other states, foreign countries, or insular possessions of the United States, and purchase liquor from manufacturers located within this Commonwealth, to be sold outside of this Commonwealth or to Pennsylvania Liquor Stores within this Commonwealth, or when in original containers of ten gallons or greater capacity, to licensed manufacturers within this Commonwealth.

All importations of liquor into Pennsylvania by the licensed importer shall be consigned to the board or the principal place of business or authorized place of storage maintained by the licensee.

((e) amended July 17, 2024, P.L.924, No.86)

(f) Every importer shall maintain on the licensed premises such records as the board may prescribe. Any such license may be suspended or revoked by the board upon proof satisfactory to it that the licensee has violated any law of this Commonwealth or any regulation of the board relating to liquor and alcohol. The procedure in such cases shall be the same as for the revocation and suspension of hotel, restaurant and club licenses.

(g) The holder of an importer's license or a vendor's permit under section 208 may deliver liquor purchased from the board to a licensee as follows:

(1) The liquor may be stored at the licensed importer's or vendor's place of business or its authorized place of storage.

(2) The licensee must place a purchase order with the board and the order must be paid in full prior to delivery.

(3) The holder of an importer's license or vendor's permit may charge a fee for delivery.

((g) added June 8, 2016, P.L.273, No.39)

(h) The board may release liquor to the holder of an importer's license or the holder of a vendor's permit for delivery to a licensee as follows:

(1) The licensee must place a purchase order with the board and the order must be paid in full prior to delivery.

(2) The holder of an importer's license or vendor's permit may charge a fee for delivery.

((h) added June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which added subsections (g) and (h), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 411. Interlocking Business Prohibited.--(a) No manufacturer and no officer or director of any manufacturer shall at the same time be a holder of a hotel, restaurant or club liquor license, nor be the owner, proprietor or lessor of any place covered by any hotel, restaurant or club liquor license.

(b) No manufacturer, importer or sacramental wine licensee, and no officer or director of a manufacturer, importer or sacramental wine licensee shall own any stock or have any financial interest in any hotel or restaurant licensed under this act.

(c) Excepting as herein provided, no manufacturer, or officer, director, stockholder, agent or employe of a manufacturer shall in any wise be interested, either directly or indirectly, in the ownership or leasehold of any property or the equipment of any property or any mortgage lien against the same, for which a hotel, restaurant or club license is granted; nor shall a manufacturer, importer or sacramental wine licensee, or officer, director, stockholder, agent or employe of a manufacturer, importer or sacramental wine licensee, either directly or indirectly, lend any moneys, credit, or give anything of value or the equivalent thereof to, or guarantee the payment of any bond, mortgage, note or other obligation of, any hotel, restaurant or club licensee, his servant, agent or employe, for equipping, fitting out, or maintaining and conducting, either in whole or in part, a hotel, restaurant or club licensed for the selling of liquor for use and consumption upon the premises.

(d) Excepting as herein provided, no hotel licensee, restaurant licensee or club licensee, and no officer, director, stockholder, agent or employe of any such licensee shall, either directly or indirectly, lend any moneys, credit, or give anything of value or the equivalent thereof, to any manufacturer for equipping, fitting out, or maintaining and conducting, either in whole or in part, an establishment used for the manufacture of liquor or malt or brewed beverages. ((d) amended Dec. 22, 2017, P.L.1237, No.75)

(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, 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 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 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 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 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 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 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) amended Nov. 25, 2020, P.L.1222, No.125)

(e.1) ((e.1) deleted by amendment July 15, 2024, P.L.700, No.57).

(f) The following shall apply:

(1) Notwithstanding any other provision of law to the contrary, a manufacturer or licensee and its officers, directors, shareholders, servants, agents or employes may contribute, and a manufacturer or licensee and its officers, directors, shareholders, servants, agents or employes may accept money or other things of value solely for the administration of a responsible alcohol management training program for alcohol service personnel as provided for under this section. The money or other things of value may be provided by or to a manufacturer or licensee and its officers, directors, shareholders, servants, agents or employes directly or by or to a trade organization consisting, in whole or part, of a group of licensees.

(2) The manufacturer, licensee and trade organization associated with the person providing the money or other things of value must keep a record of the value of the money or other things of value provided, the date provided and the entity to whom it was provided, as part of the records required under section 493(12) of this act.

(3) The manufacturer, licensee and trade organization associated with the person receiving money or other things of value must keep a record of the value of the money or other things of value used, as part of the records required under section 493(12) of this act.

((f) added June 8, 2016, P.L.273, No.39)

(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. ((g) added July 15, 2024, P.L.700, No.57)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (e) and added subsection (f), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 412. Public Venue License.--(a) The board is authorized to issue a restaurant liquor license to public venues. Any facility licensed under former sections 408.1, 408.2, 408.5, 408.8, 408.9, 408.10, 408.11, 408.14, 408.15 and 433.1 as well as any facility that meets the definition of a public venue may apply for and receive a restaurant liquor license under this section. Facilities used primarily for interscholastic athletic events shall not be eligible for a license under this section. Racetracks and premises used primarily for holding automobile races shall also not be eligible for a license under this section.

(b) An application for a restaurant liquor license under this section may be made by the owner of the public venue, the operator of the public venue or by a concessionaire designated by the governing body of either the owner of the public venue or the operator. The application and issuance of the license is subject to sections 403 and 404 unless otherwise stated. The licensing period shall be as set forth by the board under section 402. The application, renewal and filing fees shall be as prescribed in section 614-A(25) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." ((b) amended Feb. 21, 2002, P.L.103, No.10)

(d) Licenses under this section shall expire upon: (1) revocation by an administrative law judge under section 471; (2) nonrenewal by the board under section 470; (3) nonrenewal of the license by the license holder; (4) termination of the contract between the owner of the public venue and its concessionaire; or (5) termination of the contract between an operator and its concessionaire. ((d) amended Feb. 21, 2002, P.L.103, No.10)

(e) The board may issue a license under this section at any time to a new applicant even if the previous license had: (1) been revoked by an administrative law judge under section 471; (2) not been renewed by the board under section 470; (3) not been renewed by the license holder; (4) expired because of the termination of the contract between the owner of the public venue and its concessionaire; or (5) expired because of the termination of the contract between an operator and its concessionaire. ((e) amended Feb. 21, 2002, P.L.103, No.10)

(f) Licenses issued under this section are to be considered restaurant liquor licenses. However, the following additional restrictions and privileges apply:

(1) Sales may only be made one hour before, during and one hour after any athletic performance, performing arts event, trade show, convention, banquet or any other performance at the facility; however, sales may not be made from two o'clock antemeridian to seven o'clock antemeridian. In addition, sales may not occur prior to eleven o'clock antemeridian on Sundays or seven o'clock antemeridian on Mondays. Notwithstanding this section:

(i) Facilities that had been licensed under former sections 408.9 and 408.14 may sell liquor and/or malt or brewed beverages anytime except from two o'clock antemeridian to seven o'clock antemeridian or prior to eleven o'clock antemeridian on Sundays or seven o'clock antemeridian on Mondays, regardless of whether there is a performance at the facility.

(ii) Amusement parks may sell liquor and malt or brewed beverages from eleven o'clock antemeridian to eleven o'clock postmeridian.

((1) amended Dec. 14, 2023, P.L.414, No.49)

(2) Sales of alcoholic beverages before, during and after professional and amateur athletic events, performing arts events or other entertainment events may consist of liquor or malt or brewed beverages in shatterproof containers. Sales during trade shows, conventions, banquets or at other events, or sales made in the club seats or at a restaurant facility, may consist of liquor or malt or brewed beverages in any type of container; however, any liquor or malt or brewed beverages sold in the club seats or restaurant facility must remain in the club seating level or restaurant facility. For purposes of this section, a club seat is any seating located on the designated club seating level and partitioned from general seating by a wall, divider, partial wall or railing. The club seating level must not be accessible by the general public. Sales at zoos during private banquets and other events may be at any site within zoo property and may consist of any type of alcohol in any type of container. The board's records shall clearly delineate where the sale of liquor or malt or brewed beverages in any type of container may occur.

(3) Sales of malt or brewed beverages for off-premises consumption are prohibited.

(4) Licenses issued under this section shall not be subject to: (i) the proximity provisions of sections 402 and 404; (ii) the quota restrictions of section 461; (iv) the provisions of section 493(10) except as they relate to lewd, immoral or improper entertainment; (v) the prohibition against minors frequenting as described in section 493(14) and (vi) the cost and total display area limitations of section 493(20)(i). In addition, licenses issued under this section shall not be subject to the provisions defining "restaurant" in section 102.

((f) amended Nov. 15, 2016, P.L.1286, No.166)

(g) The board may issue multiple licenses under this section for use in a public venue with permanent seating of at least thirty-five thousand people. If the board does issue more than one license for a specific public venue, written notice of the event must be provided to the enforcement bureau at least forty-eight hours in advance of the dispensing of any liquor or malt or brewed beverages. The notice shall include the date, time and specific licensed areas to be used. No more than one license issued under this section shall be in effect at any location at any time of day at the same time. ((g) added Dec. 9, 2002, P.L.1653, No.212)

(h) An amusement park that holds a restaurant license before January 1, 2022, and seeks to obtain a public venue license shall exchange one existing restaurant license to the board in return for a public venue license at no cost. A restaurant license exchanged under this subsection shall be subject to a license auction under section 470.3. ((h) added Dec. 14, 2023, P.L.414, No.49)

(i) An amusement park that holds a public venue license shall utilize a transaction scan device to verify the age of an individual who appears to be under thirty-five years of age before making a sale of liquor and malt or brewed beverages, however, an acceptable form of identification under section 495(a) that cannot be scanned may be accepted by the licensee. An amusement park may not sell or share data from the use of a transaction scan device, provided that the licensee may use the data to show the enforcement bureau of the board that the licensee is in compliance with this act. As used in this subsection, the term "transaction scan device" means a device capable of deciphering, in an electronically readable format, the information encoded on the magnetic strip or bar code of an identification card under section 495(a). ((i) added Dec. 14, 2023, P.L.414, No.49)

(j) As used in this section, the term "amusement park" shall have the same meaning as defined in section 2 of the act of June 18, 1984 (P.L.384, No.81), known as the "Amusement Ride Inspection Act." ((j) added Dec. 14, 2023, P.L.414, No.49)

Section 412.1. Special Sporting Event Permits for Public Venue Licensees.--(a) Notwithstanding any law to the contrary, a public venue licensee hosting a special sporting event may apply for a special sporting event permit subject to the fees and privileges provided for in this section.

(b) The special sporting event permit, if approved by the board, shall authorize the public venue licensee to temporarily extend its regularly licensed premises beyond the public venue premises itself to an outside area that is immediately adjacent to the public venue or to a separate nonadjacent area being used, or both, with permission of the owner, by the public venue licensee for functions or activities in conjunction with the special sporting event, regardless of distance or any intervening public thoroughfares.

(c) Except as provided for under subsection (c.1), a permit issued under this section shall be valid for a period of no more than six days associated with the special sporting event. ((c) amended Mar. 27, 2026, P.L.182, No.8)

(c.1) Notwithstanding subsection (c), a permit issued in 2026 to a public venue licensee in a city of the first class for an international soccer tournament shall be valid for a period of no more than fifty days in association with the international soccer tournament. ((c.1) added Mar. 27, 2026, P.L.182, No.8)

(d) The permit shall authorize the holder of the permit to sell malt or brewed beverages and liquor for consumption within the special sporting event permitted area or areas on any day of the week and any time between the hours of ten o'clock antemeridian and two o'clock antemeridian the following day, so long as the beverages are sold in shatterproof containers or cups.

(e) No sales of alcoholic beverages for consumption off the permitted area or areas shall be permitted.

(f) The holder of the permit shall provide written notice of any functions or activities to be conducted under the authority of the special sporting event permit to the municipality, local police and the enforcement bureau at least seven days in advance of the function or activities and must include in the notice the location, time, host of the functions or activities, general information regarding the guests expected at the function or activities and any other information the board shall prescribe.

(g) A special sporting event permit holder shall verify the age of an individual who appears to be under thirty-five years of age before making a sale of alcohol and, in doing so, shall accept any valid form of identification as specified in section 495(a).

(h) All servers at any functions or activities conducted under the authority of the special sporting event permit shall be in compliance with the responsible alcohol management provisions of section 471.1.

(i) Notwithstanding the other provisions of this section, sales of alcoholic beverages occurring within the regularly licensed public venue premises shall at all times remain subject to the hours and other limitations specified in section 412(f).

(j) Notwithstanding any other provision of this act and to the extent permitted under Federal law, a manufacturer may temporarily provide furniture, equipment, fixtures and advertising materials to public venue licensees holding special sporting event permits without any cost or value restrictions, for purposes of operating under the permits.

(k) The application shall include a fee of ten thousand dollars ($10,000), which shall be deposited into The State Stores Fund.

(l) The application shall designate the specific location, areas, dates and times that the applicant intends to use the permit.

(m) The board shall issue a special sporting event permit to a public venue licensee applicant unless the board determines that issuing the permit would not be in the best interests of the public. Under no circumstances may the board issue a special sporting event permit for an area that is simultaneously being used for parking or for any area that is not properly separated from parking areas with fencing or other safety barriers.

(n) For purposes of this section, the term "special sporting event" shall mean a professional sports league draft, all-star game, playoff series or game, collegiate tournament, bowl game, playoff game or an international soccer tournament.

(412.1 added Dec. 22, 2025, P.L.337, No.56)

Section 413. Performing Arts Facility License.--(a) The board is authorized to issue a restaurant liquor license to performing arts facilities. Any facility which previously had been licensed under former sections 408.3, 408.6 and 408.7 as well as any facility that meets the definition of a performing arts facility as set forth in section 102 may apply for and receive a restaurant liquor license under this section. Facilities eligible to be licensed under section 412 and which are used primarily for athletic events shall not be eligible for a license under this section unless those facilities had previously been licensed under former sections 408.3, 408.6 and 408.7. Facilities used primarily for interscholastic athletic events shall not be eligible for a license under this section.

(b) An application for a restaurant liquor license under this section may be made by the operator of the performing arts facility or by a concessionaire designated by the governing body of the operator of the performing arts facility. The licensing period shall be as set forth by the board under section 402. The application and issuance of the license are subject to sections 403 and 404 unless otherwise stated. The application, renewal and filing fees shall be as prescribed in section 614-A(19) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929."

(d) Licenses under this section shall expire upon: (1) revocation by an administrative law judge under section 471; (2) nonrenewal by the board under section 470; (3) nonrenewal of the license by the license holder; or (4) termination of the contract between the operator of the performing arts facilities and its concessionaire. ((d) amended Feb. 21, 2002, P.L.103, No.10)

(e) The board may issue a license under this section at any time to a new applicant even if the previous license had: (1) been revoked by an administrative law judge under section 471; (2) not been renewed by the board under section 470; (3) not been renewed by the license holder; or (4) expired because of the termination of the contract between the operator of the performing arts facilities and its concessionaire. ((e) amended Feb. 21, 2002, P.L.103, No.10)

(f) Licenses issued under this section are to be considered restaurant liquor licenses. However, the following additional restrictions and privileges apply:

(1) Sales of liquor and malt or brewed beverages may be made two hours before, during and one hour after any performance at the facility; however, sales may not be made from two o'clock antemeridian to seven o'clock antemeridian. In addition, sales may not occur prior to ten o'clock antemeridian or after ten o'clock postmeridian on Sundays. However, facilities that had been licensed under former section 408.3(a) and 408.3(a.2) may sell liquor and malt or brewed beverages anytime except from two o'clock antemeridian to seven o'clock antemeridian or prior to one o'clock postmeridian or after ten o'clock postmeridian on Sundays, regardless of whether there is a performance at the facility. ((1) amended Nov. 21, 2019, P.L.635, No.86)

(2) Sales of malt or brewed beverages for off-premises consumption are prohibited.

(g) Licenses issued under this section shall not be subject to: (1) the proximity provisions of sections 402 and 404; (2) the quota restrictions of section 461; (4) the provisions of section 493(10) except as they relate to lewd, immoral or improper entertainment; and (5) the prohibitions against minors frequenting as described in section 493(14). In addition, licenses issued under this section shall not be subject to the provisions defining "restaurant" in section 102. ((g) amended Feb. 21, 2002, P.L.103, No.10)

(h) For the purpose of this section, a facility is used primarily for athletic events if the majority of the events that occur at the facility are athletic events or if the facility is the home facility of a professional sports team.

(413 added Dec. 20, 2000, P.L.992, No.141)

Section 414. Continuing Care Retirement Community Retail Licenses.--(a) The board is authorized to issue a restaurant liquor license to a continuing care retirement community, as that term is defined in this act, or its designated concessionaire. The licensing period shall be established under section 402. The application and issuance of the license is subject to sections 403 and 404 unless otherwise stated. The application, renewal and filing fee shall be as prescribed in section 614-A(1) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929."

(b) Licenses issued under this section are restaurant liquor licenses for all purposes except as provided herein. However, the following additional restrictions and privileges apply:

(1) Licenses issued under this section are not subject to the quota restrictions of section 461.

(2) Sales of liquor and malt or brewed beverages may not occur from two o'clock antemeridian to seven o'clock antemeridian. In addition, sales may not occur prior to one o'clock postmeridian or after ten o'clock postmeridian on Sunday.

(3) Liquor and malt or brewed beverages sold or furnished by the licensee may be possessed anywhere within the continuing care retirement community regardless of whether that portion of the premises is licensed. However, no liquor or malt or brewed beverages sold or furnished by the licensee may be taken beyond the confines of the continuing care retirement community.

(4) Sales of liquor or malt or brewed beverages may occur in those portions of the premises licensed by the board as well as in rooms that are lived in or used by residents of the continuing care retirement community. Sales of liquor and malt or brewed beverages are limited to residents of the continuing care retirement community and the guests of residents in conjunction with the normal, regularly scheduled dining, entertainment or social activities of the continuing care retirement community.

(5) Licenses issued under this section are not subject to the provisions defining "restaurant" in section 102.

(6) Licenses issued under this section are subject to section 493(13) relating to employment of minors, with the exception that the minimum age threshold for employment on licensed premises shall be reduced from sixteen (16) to fourteen (14) years of age. The prohibition against minors under the age of eighteen (18) dispensing or serving alcoholic beverages shall remain in effect.

((b) amended Dec. 8, 2004, P.L.1810, No.239)

(c) Licenses issued under this section are nontransferable and if issued to a concessionaire shall expire upon the termination of the contract between the continuing care retirement community and the concessionaire.

(d) The board may issue an eating place retail dispenser license to a continuing care retirement community located in a municipality that has voted to allow the issuance of eating place retail dispenser licenses but has not voted to allow the issuance of restaurant liquor licenses. Eating place retail dispenser licenses issued under this subsection shall be subject to the restrictions and privileges contained in subsections (b) and (c).

(414 added Feb. 21, 2002, P.L.103, No.10)

Section 415. Wine Expanded Permits.--(a) (1) The board shall issue a wine expanded permit to a person holding and possessing a valid restaurant liquor license or hotel liquor license.

(2) Nothing in this section may affect the ability of an existing licensee to operate within the scope of its current license as authorized by this act, except that no sales of wine for off-premises consumption may take place by a wine expanded permit holder after eleven o'clock postmeridian of any day until the licensee's permitted hours of operation under section 406 of the next day, including Sundays if the licensee has a permit authorized under section 406(a)(3). ((2) amended Nov. 15, 2016, P.L.1286, No.166)

(3) A wine expanded permit may not be issued to a license holder whose underlying license is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1), until the matter is decided, so long as the underlying license is authorized to operate. Notwithstanding any other provision of law, a holder of a wine expanded permit may continue to operate under the permit if its underlying license is objected to by the director of the Bureau of Licensing or the board under section 470(a.1), until the matter is decided.

(4) If the board has approved the operation of another business which has an inside passage or communication to or with the licensed premises, the sale and purchase of wine shall be confined strictly to the premises, in a specifically designated area covered by the license. The purchase of goods obtained from the unlicensed area of the premises shall be permitted in the licensed area.

(5) For purposes of selling wine for off-premises consumption, a holder of a wine expanded permit is not subject to section 493(14).

(6) A wine expanded permit holder shall comply with the responsible alcohol management provisions under section 471.1.

(7) A wine expanded permit holder may store wine in a noncontiguous area that is not accessible to the public and is:

(i) locked at all times when not being accessed by the licensees' employees;

(ii) not accessible to employees under eighteen years of age; and

(iii) identified by dimensions and locations on forms submitted to the board.

(8) A wine expanded permit holder shall utilize a transaction scan device to verify the age of an individual who appears to be under thirty-five years of age before making a sale of wine. A wine expanded permit holder may not sell or share data from the use of a transaction scan device, provided that the licensee may use the data to show the enforcement bureau of the board that the licensee is in compliance with this act. As used in this paragraph, the term "transaction scan device" means a device capable of deciphering, in an electronically readable format, the information encoded on the magnetic strip or bar code of an identification card under section 495(a).

(9) A sale of wine by a wine expanded permit holder shall be made through a register, which malt or brewed beverages and restaurant foods sales are made on the licensed premises, which is well designated with signage, which is staffed at all times when patrons are on the licensed premises. The actual sale shall be conducted by a sales clerk who is at least eighteen years of age and has been trained under section 471.1 and which utilizes a transaction scan device for the sale as set forth in paragraph (8). The sale of wine may not occur at a point of sale where the customer scans the customer's own purchases. Sales of wine must occur on the licensed premises. ((9) amended June 5, 2020, P.L.213, No.29)

(10) If a wine expanded permit holder has an interior connection to another business that it operates, the wine expanded permit holder may use one or more of the registers in the other business to sell wine for off-premises consumption under the following conditions:

(i) the building is eleven thousand (11,000) square feet or less;

(ii) the registers are located in the same building as the licensed premises;

(iii) the registers comply with the signage, staffing, training, carding, scanning and prohibition on the sharing of data provisions of paragraphs (8) and (9); and

(iv) the board has been provided notice of compliance with this paragraph by the wine expanded permit holder, including square footage of the building and the location of the specific registers to be used prior to their use.

((10) added June 5, 2020, P.L.213, No.29)

(11) The registers used under paragraph (10) shall be deemed to be licensed areas but no formal application beyond notice to the board shall be required. The registers may be used by the other business. ((11) added June 5, 2020, P.L.213, No.29)

(b) The application and renewal fee for a wine expanded permit shall be as follows:

(1) For a wine expanded permit issued to licensees, an initial application fee of two thousand dollars ($2,000).

(2) An annual renewal fee equal to two per centum of the total cost of wine purchased from the board for off-premises consumption.

((b) amended Nov. 15, 2016, P.L.1286, No.166)

(c) Notwithstanding the provisions of section 802, all fees paid to the board under this section shall be paid into the State Treasury for deposit as follows:

(1) All moneys shall be deposited in the State Stores Fund.

(2) Every June 1, all moneys deposited under paragraph (1) shall be transferred to the General Fund.

(d) A wine expanded permit holder may sell for off-premises consumption, in a single transaction, up to three thousand (3,000) milliliters of wine.

(e) (1) Wine expanded permit holders shall comply with the provisions of section 201(f), (k) and (o) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, regarding the purchase of wine from a Pennsylvania Liquor Store.

(2) The sale of wine by a wine expanded permit holder for off-premises consumption shall be considered a "purchase at retail" under section 201(f) of the Tax Reform Code of 1971, a "sale at retail" under section 201(k) of the Tax Reform Code of 1971 or a "use" under section 201(o) of the Tax Reform Code of 1971.

(3) A wine expanded permit holder may, when filing its required returns under Article II of the Tax Reform Code of 1971, request a credit of any taxes paid in accordance with paragraph (1) for wine sold for off-premises consumption and for which taxes were remitted to the department under paragraph (2). The department may promulgate rules or regulations and prescribe forms as may be necessary to implement the provisions of this subsection. ((3) amended Nov. 15, 2016, P.L.1286, No.166)

(4) ((4) deleted by amendment Nov. 15, 2016, P.L.1286, No.166)

(f) A wine expanded permit holder may not sell a wine product for off-premises consumption at a price less than the licensee's purchase price from the board of the wine product.

(g) A wine expanded permit holder may not sell a private label product.

(415 added June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which added section 415, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 415.1. Ready-to-Drink Cocktail Permit.--(a) (1) The holder of a restaurant, hotel, distributor or importing distributor license may apply for a ready-to-drink cocktail permit. The board shall issue a ready-to-drink cocktail permit to the applicant if the applicant meets the requirements set forth in this act and the board's regulations and pays the appropriate fees.

(2) Nothing in this section shall be construed to affect the ability of an existing licensee to operate within the scope of its current license as authorized by this act, except that no sales of ready-to-drink cocktails for off-premises consumption may take place by a ready-to-drink cocktail permit holder after eleven o'clock postmeridian. Sales by restaurant and hotel license holders may occur on Sundays from the time the licensee may legally begin to sell alcohol that day until eleven o'clock postmeridian if the licensee has a permit authorized under sections 406(a)(3) and 432(f). Sales by distributor and importing distributor license holders may occur on Sundays between the hours of nine o'clock antemeridian and nine o'clock postmeridian if the licensee has a permit authorized under section 492.1(c).

(3) A ready-to-drink cocktail permit may not be issued to a license holder whose underlying license is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1), until the matter is decided. Notwithstanding any other provision of law, a holder of a ready-to-drink cocktail permit may continue to normally operate under the permit if its underlying license is operational, notwithstanding if the underlying license is objected to by the director of the Bureau of Licensing or the board under section 470(a.1).

(4) If the board has approved the operation of another business which has an inside passage or communication to or with the licensed premises, the sale and purchase of ready-to-drink cocktails shall be confined strictly to the areas covered by the license. The payment for the purchase of goods obtained from the unlicensed area of the premises shall be permitted in the licensed area.

(5) For purposes of selling ready-to-drink cocktails for off-premises consumption, a holder of a ready-to-drink cocktail permit is not subject to section 493(14).

(6) A ready-to-drink cocktail permit holder shall comply with the responsible alcohol management provisions under section 471.1.

(7) A ready-to-drink cocktail permit holder may store ready-to-drink cocktails in a noncontiguous area that is not accessible to the public and is:

(i) locked at all times when not being accessed by the licensees' employees;

(ii) not accessible to employees under eighteen years of age; and

(iii) identified by dimensions and locations on forms submitted to the board.

(8) A ready-to-drink cocktail permit holder shall utilize a transaction scan device to verify the age of an individual who appears to be under thirty-five years of age before making a sale of a ready-to-drink cocktail. A ready-to-drink cocktail permit holder may not sell or share data from the use of a transaction scan device, provided that the licensee may use the data to show the enforcement bureau of the board that the licensee is in compliance with this act. As used in this paragraph, the term "transaction scan device" means a device capable of deciphering, in an electronically readable format, the information encoded on the magnetic strip or bar code of an identification card under section 495(a).

(9) A sale of ready-to-drink cocktails by a ready-to-drink cocktail permit holder shall be made through a register, which is located on the licensed premises, which is well designated with signage, which is staffed at all times when patrons are on the licensed premises. The actual sale shall be conducted by a person who is at least eighteen years of age and has been trained under section 471.1 and which utilizes a transaction scan device for the sale as set forth in paragraph (8). The sale of ready-to-drink cocktails may not occur at a point of sale where the customer scans the customer's own purchases. Sales of ready-to-drink cocktails must occur on the licensed premises.

(10) If a ready-to-drink cocktail permit holder has an interior connection to another business that it operates, the permit holder may use one or more of the registers in the other business to sell ready-to-drink cocktails for off-premises consumption under the following conditions:

(i) the building is eleven thousand (11,000) square feet or less;

(ii) the registers are located in the same building as the licensed premises;

(iii) the registers comply with the signage, staffing, training, carding, scanning and prohibition on the sharing of data provisions of paragraphs (8) and (9); and

(iv) the board has been provided notice of compliance with this paragraph by the ready-to-drink cocktail permit holder, including square footage of the building and the location of the specific registers to be used prior to their use.

(b) The application and renewal fee for a ready-to-drink cocktail permit shall be as follows:

(1) An initial application fee of two thousand and five hundred dollars ($2,500).

(2) An annual renewal fee equal to two per centum of the cost of ready-to-drink cocktails purchased for off-premises consumption.

(c) Notwithstanding the provisions of section 802, all fees paid to the board under this section shall be paid into the State Treasury for deposit as follows:

(1) All moneys shall be deposited into the State Stores Fund.

(2) Beginning June 1, 2025, and every June 1 thereafter, all moneys deposited under paragraph (1) shall be transferred to the General Fund.

(d) A restaurant or hotel license holder that is also a ready-to-drink cocktail permit holder may sell for off-premises consumption, in a single transaction, up to one hundred ninety-two fluid ounces. Ounces of ready-to-drink cocktails shall not be combined with wine or malt or brewed beverages for the purpose of calculating the sale restrictions applicable to each of those beverages. A distributor or importing distributor license holder that is also a ready-to-drink cocktail permit holder may sell ready-to-drink cocktails in any quantity. No ready-to-drink cocktail permit holder may sell ready-to-drink cocktails to a permit or license holder.

(e) (1) Ready-to-drink cocktail permit holders shall comply with the provisions of section 201(f), (k) and (o) of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971," regarding the purchase of ready-to-drink cocktails from a Pennsylvania Liquor Store.

(2) The sale of ready-to-drink cocktails by a ready-to-drink cocktail permit holder for off-premises consumption shall be considered a "purchase at retail" under section 201(f) of the "Tax Reform Code of 1971," a "sale at retail" under section 201(k) of the "Tax Reform Code of 1971" or a "use" under section 201(o) of the "Tax Reform Code of 1971."

(3) A ready-to-drink cocktail permit holder may, when filing its required returns under Article II of the "Tax Reform Code of 1971," request a refund of any taxes paid in accordance with paragraph (1) for ready-to-drink cocktails sold for off-premises consumption and for which taxes were remitted to the department under paragraph (2). The request for a refund shall include the original receipt from a Pennsylvania Liquor Store showing the amount of taxes paid under paragraph (1) for which the taxpayer is requesting a refund.

(4) The department shall refund the amount of taxes paid to a Pennsylvania Liquor Store by a ready-to-drink cocktail permit holder under paragraph (1) for which the taxpayer remitted taxes imposed under paragraph (2). The department may promulgate rules or regulations and prescribe forms as may be necessary to implement the provisions of this subsection.

(f) A ready-to-drink cocktail permit holder may not sell a ready-to-drink cocktail for off-premises consumption at a price less than the licensee's purchase price.

(g) A ready-to-drink cocktail permit holder may not sell a private label product.

(h) Holders of a ready-to-drink cocktail permit may also purchase ready-to-drink cocktails directly from a licensed Pennsylvania manufacturer for the purpose of reselling the ready-to-drink cocktail for off-premises consumption.

(i) As used in this section, the term "licensed Pennsylvania manufacturer" shall mean an entity that holds an active limited distillery license or held an active limited distillery license prior to July 1, 2024, and subsequently acquired a distillery license.

(415.1 added July 17, 2024, P.L.924, No.86)

Section 416. Casino Liquor License.--(a) Notwithstanding any provision of law or regulation, a slot machine licensee or an affiliated designee holding a restaurant liquor or eating place retail dispenser license and which sells liquor or malt or brewed beverages at or adjacent to a gaming facility under this act may apply to the board for a casino liquor license. The board may issue a casino liquor license to a slot machine licensee for use at the casino liquor licensee's licensed facility in accordance with this section.

(b) Each application for a casino license under this section shall be accompanied by a fee of one million dollars ($1,000,000).

(b.1) Each restaurant licensee that does not hold a slot machine license but operates within or adjacent to the gaming facility must pay a one-time fee of ten thousand dollars ($10,000).

(1) A casino liquor license must be renewed on an annual basis.

(2) For the first four years after the initial issue of the casino liquor license, the casino liquor license shall be subject to an annual renewal fee of one million dollars ($1,000,000).

(3) After the period under paragraph (2), the casino liquor license shall be subject to an annual renewal fee of two hundred and fifty thousand dollars ($250,000).

(4) Notwithstanding the provisions of section 802, all fees collected or received by the board under this subsection shall be paid into the State Treasury through the Department of Revenue for deposit into the General Fund.

(d) The following shall apply to disposition of restaurant liquor or eating place retail dispenser licenses:

(1) An applicant under this section that currently holds a restaurant liquor or eating place retail dispenser license may continue to utilize the license until the casino liquor license is issued by the board. Upon issuance of a casino liquor license, the applicant must surrender the restaurant liquor or eating place retail dispenser license to the board.

(2) An applicant under this section that currently holds a restaurant liquor or eating place retail dispenser license that is subject to the quota restrictions under section 461(a) may continue to utilize that license until the casino liquor license is issued by the board. Upon issuance of a casino liquor license, the applicant may sell the restaurant liquor or eating place retail dispenser license.

(e) Notwithstanding any other provision of law, a holder of a casino liquor license may sell or serve liquor and malt or brewed beverages twenty-four (24) hours a day, seven (7) days a week.

(f) A casino liquor license shall be nontransferable, except that nothing in this subsection shall preclude a transfer of ownership of a casino liquor license to another eligible person to be used at the same licensed facility.

(g) A casino liquor license shall expire under the following circumstances:

(1) revocation by an administrative law judge under section 471;

(2) nonrenewal by the board under section 470;

(3) nonrenewal of the license by a slot machine licensee or its designee; or

(4) upon request by the slot machine licensee.

(h) The board may issue a casino liquor license at any time to a new applicant even if the previous license had:

(1) been revoked by an administrative law judge under section 471;

(2) not been renewed by the board under section 470;

(3) not been renewed by the slot machine licensee; or

(4) expired upon request by the slot machine licensee.

(i) In addition to any other restrictions and privileges, a casino liquor license shall be subject to the following:

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

(2) Liquor or malt or brewed beverages may be transported and consumed off the gaming floor if the liquor or malt or brewed beverage remains within the premises of the licensed facility.

(3) Sales of malt or brewed beverages for off-premises consumption are prohibited.

(4) In addition to the provisions of section 493(24)(ii), the holder of a casino liquor license may give liquor and malt or brewed beverages free of charge to any person attending an invitation-only event held anywhere on the premises of the licensed facility.

(5) Licenses issued under this section shall not be subject to:

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

(ii) the restrictions on discount pricing practices set forth in sections 406(g) and 442(g);

(iii) the quota restrictions under section 461;

(iv) the provisions of section 493(10);

(v) the prohibition against minors frequenting as described in section 493(14);

(vi) the cost and total display area limitations of section 493(20)(i);

(vii) the restrictions on events, tournaments or contests in 40 Pa. Code § 5.32 (relating to restrictions/exceptions) or any successor regulation; and

(viii) the restrictions on the awarding of trophies, prizes or premiums set forth in 40 Pa. Code § 5.32 or any successor regulation.

(j) More than one casino liquor license issued by the board may be in effect at a licensed facility at any one time, except that no more than one casino liquor license shall be in effect at a specific location within the premises of a licensed facility at the same time.

(416 added June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which added section 416, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 417. Extension of Licensed Service Area and Issuance of Off-premises Catering Permits. (Hdg. amended Nov. 5, 2021, P.L.424, No.81)--(a) The following shall apply:

(1) Notwithstanding any provision of this act, a person holding and possessing a valid restaurant or hotel liquor license that lost more than twenty-five per centum (25%) of the person's average monthly total sales, including alcohol sales, as a result of restrictions imposed during the COVID-19 disaster emergency, may sell prepared beverages and mixed drinks for off-premises consumption where meals prepared for pickup or curbside pickup are also available.

(2) Except as provided in this paragraph and paragraph (4), nothing in this section shall affect the ability of a licensee to operate within the scope of its current license as authorized by this act, provided, however, that no sales of prepared beverages and mixed drinks for off-premises consumption shall take place after eleven o'clock postmeridian of any day until the licensee's permitted hours of operation under section 406 of the next day, including Sundays if the licensee has a permit authorized under sections 406(a)(3) and 432(f).

(3) The following licensees are prohibited from selling prepared beverages and mixed drinks for off-premises consumption under this section:

(i) A licensee whose underlying license is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1), until the matter is decided.

(ii) A licensee whose underlying license has been suspended under section 1799.6-E of the act of April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code."

(4) For purposes of selling prepared beverages and mixed drinks for off-premises consumption, a licensed premises shall not be subject to section 493(14).

(5) Within sixty (60) days of the effective date of this section, a licensee selling prepared beverages and mixed drinks for off-premises consumption shall begin utilizing a transaction scan device to verify the age of an individual who appears to be under thirty-five (35) years of age before making a sale of prepared beverages and mixed drinks for off-premises consumption. A licensee may not sell or share consumers' personal data from the use of a transaction scan device, provided that the licensee may share the data with the enforcement bureau of the board as evidence that the licensee is in compliance with this paragraph.

(6) A licensee selling prepared beverages or mixed drinks for off-premises consumption shall prominently post a warning sign in a manner that puts consumers on notice of the restrictions on alcoholic beverages under 75 Pa.C.S. § 3809 (relating to restriction on alcoholic beverages), and that the prepared beverages and mixed drinks packaged for sale by the licensee are open containers and may only be transported by the driver of a motor vehicle in the vehicle's trunk or in some other area of the vehicle that is not occupied by the driver or passengers.

(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 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.1) amended July 15, 2024, P.L.700, No.57)

(a.2) ((a.2) expired December 31, 2024. See Act 57 of 2024.)

(a.3) Subsection (a.2) shall expire December 31, 2024. ((a.3) amended July 15, 2024, P.L.700, No.57)

(b) Notwithstanding any other provision of this section or provision of law to the contrary, a licensee selling prepared beverages and mixed drinks for off-premises consumption may only do so during the COVID-19 disaster emergency and during the mitigation period after the termination of the disaster emergency in which a licensee is operating at less than sixty per centum (60%) capacity.

(c) A licensee may sell liquor to another licensee qualified to sell prepared beverages and mixed drinks under this section. The licensee shall notify the board in writing advising it of the name of the licensee and identifying any product sold to that licensee, as well as the description of the liquor, including brand names, sizes and numbers of containers sold to another licensee. The sales may only occur during the COVID-19 disaster emergency and during the mitigation period after the termination of the disaster emergency in which a licensee is operating at less than sixty per centum (60%) capacity.

(d) As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

"COVID-19 disaster emergency" shall mean the proclamation of disaster emergency issued by the Governor on March 6, 2020, published at 50 Pa.B. 1644 (March 21, 2020), and any renewal of the state of disaster emergency.

"Licensee" shall mean a person holding and possessing a valid restaurant or hotel liquor license authorized to sell prepared beverages or mixed drinks for off-premise consumption under subsection (a)(1).

"Transaction scan device" shall mean a device capable of deciphering, in an electronically readable format, the information encoded on the magnetic strip, chip or bar code of an identification card under section 495(a).

(417 added May 21, 2020, P.L.149, No.21)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

(B) Malt and Brewed Beverages and Ready-to-Drink Cocktails (Including Manufacturers).

(Subdiv. hdg. amended July 17, 2024, P.L.924, No.86)

Section 431. Malt and Brewed Beverages Manufacturers', Distributors' and Importing Distributors' Licenses.--(a) The board shall issue to any person a resident of this Commonwealth of good repute who applies therefor, and pays the license fee hereinafter prescribed, a manufacturer's license to produce and manufacture malt or brewed beverages, and to transport, sell and deliver malt or brewed beverages from the place of manufacture only in original containers, in quantities of not less than a case or original containers containing one hundred twenty-eight ounces or more which may be sold separately anywhere within the Commonwealth. The application for such license shall be in such form and contain such information as the board shall require. All such licenses shall be granted for a license period to be determined by the board. Every manufacturer shall keep at his or its principal place of business, within the Commonwealth daily permanent records which shall show, (1) the quantities of raw materials received and used in the manufacture of malt or brewed beverages and the quantities of malt or brewed beverages manufactured and stored, (2) the sales of malt or brewed beverages, (3) the quantities of malt or brewed beverages stored for hire or transported for hire by or for the licensee, and (4) the names and addresses of the purchasers or other recipients thereof. Every place licensed as a manufacturer shall be subject to inspection by members of the board or by persons duly authorized and designated by the board, at any and all times of the day or night, as they may deem necessary, for the detection of violations of this act or of the rules and regulations of the board, or for the purpose of ascertaining the correctness of the records required to be kept by licensees. The books and records of such licensees shall at all times be open to inspection by members of the board or by persons duly authorized and designated by the board. Members of the board and its duly authorized agents shall have the right, without hindrance, to enter any place which is subject to inspection hereunder or any place where such records are kept for the purpose of making such inspections and making transcripts thereof. 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 or upon notification to the board by the Department of Revenue or the Department of Labor and Industry of its objection, the license of such person shall immediately become invalid and shall remain invalid until payment and all charges are received by the board. ((a) amended Dec. 21, 1998, P.L.1202, No.155)

(a.1) Any out of State manufacturer whose products are sold and delivered within this Commonwealth shall be authorized: to rent, lease or otherwise acquire space from an importing distributor or bailee for hire authorized by this act at no more than two locations per manufacturer for use of a segregated portion of a warehouse or other storage facility owned or operated by the importing distributor or bailee for hire at which the out of State manufacturer may store, repackage and sell malt or brewed beverages to any importing distributor to whom the out of State manufacturer has granted distribution rights pursuant to subsection (b) or to any purchaser outside this Commonwealth for delivery outside this Commonwealth; or to ship to its storage facility outside this Commonwealth. Such manufacturer may compensate the importing distributor or bailee for hire for any related storage, repackaging or delivery services. The out of State manufacturer must file with the Liquor Control Board the rate of compensation to be paid. A separate written application must be filed to acquire storage licenses, and the board may establish the information that must be provided on the application. The initial filing must be made prior to any payments being made, and any subsequent changes in the rate of compensation must be filed within thirty days of any such change. Nothing in this act authorizing storage facilities for out of State manufacturers is intended to make any change in the manner malt or brewed beverages are distributed through the three-tier system. ((a.1) amended Dec. 8, 2004, P.L.1810, No.239)

(a.2) The board shall issue to a holder of a manufacturer's license no more than two storage licenses per manufacturer to cover storage facilities separate from the location of the manufacturing facility. A manufacturer may use its storage facilities to receive, store, repackage, sell and distribute malt or brewed beverages in the same manner as it can at its place of manufacture or it may rent, lease or otherwise acquire space from an importing distributor or bailee for hire authorized by this act in the same manner as an out of State manufacturer as set forth in subsection (a.1). A separate written application must be filed to acquire storage licenses, and the board is empowered to establish what information must be provided on that application. Nothing in this act authorizing off-site storage facilities for manufacturers is intended to make any change in the manner malt or brewed beverages are distributed through the three-tier system. ((a.2 amended Dec. 8, 2004, P.L.1810, No.239)

(b) The board shall issue to any reputable person who applies therefor, and pays the license fee hereinafter prescribed, a distributor's or importing distributor's license for the place which such person desires to maintain for the sale of malt or brewed beverages, not for consumption on the premises where sold, and in quantities of not less than a case or original containers containing one hundred twenty-eight ounces or more which may be sold separately as prepared for the market by the manufacturer at the place of manufacture. In addition, a distributor license holder may sell malt or brewed beverages in any amount to a person not licensed by the board for off-premises consumption. The sales shall not be required to be in the package configuration designated by the manufacturer and may be sold in refillable growlers. The board shall have the discretion to refuse a license to any person or to any corporation, partnership or association if such person, or any officer or director of such corporation, or any member or partner of such partnership or association shall have been convicted or found guilty of a felony within a period of five years immediately preceding the date of application for the said license: And provided further, That, in the case of any new license or the transfer of any license to a new location, the board may, in its discretion, grant or refuse such new license or transfer if such place proposed to be licensed is within three hundred feet of any church, hospital, charitable institution, school or public playground, or if such new license or transfer is applied for a place which is within two hundred feet of any other premises which is licensed by the board: And provided further, That the board shall refuse any application for a new license or the transfer of any license to a new location if, in the board's opinion, such new license or transfer would be detrimental to the welfare, health, peace and morals of the inhabitants of the neighborhood within a radius of five hundred feet of the place proposed to be licensed. The board may enter into an agreement with the applicant concerning additional restrictions on the license in question. If the board and the applicant enter into such an agreement, such agreement shall be binding on the applicant. Failure by the applicant to adhere to the agreement will be sufficient cause to form the basis for a citation under section 471 and for the nonrenewal of the license under section 470. If the board enters into an agreement with an applicant concerning additional restrictions, those restrictions shall be binding on subsequent holders of the license until the license is transferred to a new location or until the board enters into a subsequent agreement removing those restrictions. If the application in question involves a location previously licensed by the board, then any restrictions imposed by the board on the previous license at that location shall be binding on the applicant unless the board enters into a new agreement rescinding those restrictions. The board shall require notice to be posted on the property or premises upon which the licensee or proposed licensee will engage in sales of malt or brewed beverages. This notice shall be similar to the notice required of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize the holder thereof to sell or deliver malt or brewed beverages in quantities above specified anywhere within the Commonwealth of Pennsylvania, which, in the case of distributors, have been purchased only from persons licensed under this act as manufacturers or importing distributors, and in the case of importing distributors, have been purchased from manufacturers or persons outside this Commonwealth engaged in the legal sale of malt or brewed beverages or from manufacturers or importing distributors licensed under this article. In the case of an importing distributor, the holder of such a license shall be authorized to store and repackage malt or brewed beverages owned by a manufacturer at a segregated portion of a warehouse or other storage facility authorized by section 441(d) and operated by the importing distributor within its appointed territory and deliver such beverages to another importing distributor who has been granted distribution rights by the manufacturer as provided herein. The importing distributor shall be permitted to receive a fee from the manufacturer for any related storage, repackaging or delivery services. In the case of a bailee for hire hired by a manufacturer, the holder of such a permit shall be authorized: to receive, store and repackage malt or brewed beverages produced by that manufacturer for sale by that manufacturer to importing distributors to whom that manufacturer has given distribution rights pursuant to this subsection or to purchasers outside this Commonwealth for delivery outside this Commonwealth; or to ship to that manufacturer's storage facilities outside this Commonwealth. The bailee for hire shall be permitted to receive a fee from the manufacturer for any related storage, repackaging or delivery services. The bailee for hire shall, as required in Article V of this act, keep complete and accurate records of all transactions, inventory, receipts and shipments and make all records and the licensed areas available for inspection by the board and for the Pennsylvania State Police, Bureau of Liquor Control Enforcement, during normal business hours.

Each out of State manufacturer of malt or brewed beverages whose products are sold and delivered in this Commonwealth shall give distributing rights for such products in designated geographical areas to specific importing distributors, and such importing distributor shall not sell or deliver malt or brewed beverages manufactured by the out of State manufacturer to any person issued a license under the provisions of this act whose licensed premises are not located within the geographical area for which he has been given distributing rights by such manufacturer. In addition, the holder of a distributor license may not sell or deliver malt or brewed beverages to any licensee whose licensed premises is located within the designated geographical area granted to an importing distributor other than the importing distributor that sold the malt or brewed beverages to the distributor. If the licensee purchasing the malt or brewed beverages from the distributor license holder holds multiple licenses or operates at more than one location, then the malt or brewed beverages may not be consumed or sold at licensed premises located within the designated geographical area granted to an importing distributor other than the importing distributor that sold the malt or brewed beverages to the distributor. Should a licensee accept the delivery of malt or brewed beverages or transfer malt or brewed beverages in violation of this section, said licensee shall be subject to a suspension of his license for at least thirty days: Provided, That the importing distributor holding such distributing rights for such product shall not sell or deliver the same to another importing distributor without first having entered into a written agreement with the said secondary importing distributor setting forth the terms and conditions under which such products are to be resold within the territory granted to the primary importing distributor by the manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverages licensed under this article names or constitutes a distributor or importing distributor as the primary or original supplier of his product, he shall also designate the specific geographical area for which the said distributor or importing distributor is given distributing rights, and such distributor or importing distributor shall not sell or deliver the products of such manufacturer to any person issued a license under the provisions of this act whose licensed premises are not located within the geographical area for which distributing rights have been given to the distributor and importing distributor by the said manufacturer. In addition, the holder of a distributor license may not sell or deliver malt or brewed beverages to a licensee whose licensed premises is located within the designated geographical area granted to an importing distributor other than the importing distributor that sold the malt or brewed beverages to the distributor. If the licensee purchasing the malt or brewed beverages from the distributor license holder holds multiple licenses or operates at more than one location, the malt or brewed beverages may not be consumed or sold at licensed premises located within the designated geographical area granted to an importing distributor other than the importing distributor that sold the malt or brewed beverages to the distributor. If a licensee accepts the delivery of malt or brewed beverages or transfers malt or brewed beverages in violation of this section, the licensee shall be subject to suspension of his license for at least thirty days: Provided, That the importing distributor holding such distributing rights for such product shall not sell or deliver the same to another importing distributor without first having entered into a written agreement with the said secondary importing distributor setting forth the terms and conditions under which such products are to be resold within the territory granted to the primary importing distributor by the manufacturer. Nothing herein contained shall be construed to prevent any manufacturer from authorizing the importing distributor holding the distributing rights for a designated geographical area from selling the products of such manufacturer to another importing distributor also holding distributing rights from the same manufacturer for another geographical area, providing such authority be contained in writing and a copy thereof be given to each of the importing distributors so affected.

((b) amended June 5, 2020, P.L.213, No.29)

(b.1) (1) Any person in this Commonwealth or elsewhere who shall purchase or in any manner whatsoever acquire or otherwise succeed to the business of a manufacturer, assets or rights to import, market, ship into this Commonwealth or distribute a brand of beer, or to use and exploit any trademark incorporated as part of a brand of beer produced by such a manufacturer shall be obligated to all terms of the manufacturer's franchise agreements in effect on the effective date of the purchase, acquisition or succession, or, if earlier, at the time the agreement contemplating the purchase, acquisition or succession is actually made.

(2) "Purchase" or "acquisition," for purposes of this section, includes, but is not limited to, a purchase, acquisition, lease, license or assignment of all or a controlling interest in the capital stock or operating assets, including brand trademarks rights; merger; any corporate reorganization or consolidation; and also, without limitation, any license, cross-license, joint venture or other agreement or arrangement, directly or indirectly, transferring, substituting or materially changing the person or persons authorized by the one owning or controlling a brand or any trademark as part of a brand, to produce, import, ship, market or distribute the brand of beer into or within this Commonwealth.

(3) "Manufacturer," as used in this subsection, shall mean any person, including any agent of such person, who (i) is licensed as a manufacturer of malt or brewed beverages located within the Commonwealth of Pennsylvania, (ii) holds a distributor or importing distributor license, or (iii) manufactures any malt beverage, has title to any malt beverage products or has the contractual right to distribute any malt beverage product, whether licensed in this Commonwealth or not, who enters into an "agreement" with any importing distributor licensed to do business in this Commonwealth.

(c) The aforesaid licenses shall be issued only to reputable individuals, partnerships and associations who are, or whose members are, citizens of the United States and are residents of the Commonwealth of Pennsylvania or to reputable corporations organized or duly registered under the laws of the Commonwealth of Pennsylvania. Such licenses shall be issued to corporations duly organized or registered under the laws of the Commonwealth of Pennsylvania only when it appears that all of the officers and directors of the corporation are citizens of the United States and are residents of the Commonwealth of Pennsylvania, and that at least fifty-one per centum of the capital stock of such corporation is actually owned by individuals who are citizens of the United States and are residents of the Commonwealth of Pennsylvania: Provided, That the provisions of this subsection with respect to residence requirements shall not apply to individuals, partners, officers, directors and owners of capital stock, of corporations licensed or applying for licenses as manufacturers of malt or brewed beverages, nor shall the provisions of this subsection with respect to stockholder requirements apply to corporations licensed or applying for licenses as manufacturers of malt or brewed beverages. ((c) amended June 28, 2011, P.L.55, No.11)

(d) (1) All distributing rights as hereinabove required shall be in writing, shall be equitable in their provisions and shall be substantially similar as to terms and conditions with all other distributing rights agreements between the manufacturer giving such agreement and its other importing distributors and distributors shall not be modified, cancelled, terminated or rescinded by the manufacturer without good cause, and shall contain a provision in substance or effect as follows: "The manufacturer recognizes that the importing distributor and distributor are free to manage their business in the manner the importing distributor and distributor deem best and that this prerogative vests in the importing distributor and distributor the exclusive right to establish a selling price, to select the brands of malt or brewed beverages they wish to handle and to determine the efforts and resources which the importing distributor and distributor will exert to develop and promote the same of the manufacturer's products handled by the importing distributor and distributor. However, the manufacturer expects that the importing distributor and distributor will price competitively the products handled by them, devote reasonable effort and resources to the sale of such products and maintain a reasonable sales level." "Good cause" shall mean the failure by any party to an agreement, without reasonable excuse or justification, to comply substantially with an essential, reasonable and commercially acceptable requirement imposed by the other party under the terms of an agreement.

(2) After January 1, 1980, no manufacturer shall enter into any agreement with more than one distributor or importing distributor for the purpose of establishing more than one agreement for designated brand or brands of malt or brewed beverages in any one territory. Each franchise territory which is granted by a manufacturer shall be geographically contiguous or in counties which are contiguous with one another. All importing distributors shall maintain sufficient records to evidence compliance of this section. With regard to any territorial distribution authority granted to an importing distributor by a manufacturer of malt or brewed beverages after January 1, 1996, the records shall establish that each and every case of a brand of malt or brewed beverages for which the importing distributor is assigned was sold, resold, stored, delivered or transported by the importing distributor, either from a point or to a point with the assigned geographically contiguous territory or in counties which are contiguous with one another, to any person or persons, whether such person or persons are licensed by this act or not licensed by this act. ((2) amended June 8, 2016, P.L.273, No.39 and reenacted and carried without amendment Nov. 15, 2016, P.L.1286, No.166)

(3) Except for discontinuance of a brand or a valid termination for good cause, the purchaser of the assets of the manufacturer as defined in this act shall become obligated to all the territorial and brand designations of the agreement in effect on the date of purchase. Purchase of assets as defined for the purposes of this act shall include, but not be limited to, the sale of stock, sale of assets, merger, lease, transfer or consolidation.

(4) The court of common pleas of the county wherein the licensed premises of the importing distributor or distributor are located is hereby vested with jurisdiction and power to enjoin the modification, rescission, cancellation or termination of a franchise or agreement between a manufacturer and an importing distributor or distributor at the instance of such importing distributor or distributor who is or might be adversely affected by such modification, rescission, cancellation or termination, and in granting an injunction the court shall provide that no manufacturer shall supply the customers or territory of the importing distributor or distributor by servicing the territory or customers through other importing distributors or distributors or any other means while the injunction is in effect: Provided, however, That any injunction issued under this subsection shall require the posting of sufficient bond against damages arising from an injunction improvidently granted and a showing that the danger of irrevocable loss or damage is immediate and that during the pendency of such injunction the importing distributor or distributor shall continue to service the accounts of the manufacturer in good faith.

(5) The provisions of this subsection shall not apply to Pennsylvania manufacturers whose principal place of business is located in Pennsylvania unless they name or constitute a distributor or importing distributor as a primary or original supplier of their products subsequent to the effective date of this act, or unless such Pennsylvania manufacturers have named or constituted a distributor or importing distributor as a primary or original supplier of their products prior to the effective date of this act, and which status is continuing when this act becomes effective.

(e) In addition to the fees under section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929," the board shall assess a fee surcharge of ninety-five dollars ($95.00) for a distributor's license and a fee surcharge of four hundred seventy dollars ($470.00) for an importing distributor's license and a fee surcharge of seventy-five dollars ($75.00) for brand registration. Money collected under this subsection shall be placed in a restricted account in The State Stores Fund. The board may use the money in this account to implement section 216. In the event the provisions of section 447(a)(2) and/or (c) are held invalid, then this subsection shall be void and shall not apply. ((e) amended December 21, 1998, P.L.1202, No.155)

(f) (1) Any malt or brewed beverage produced outside this Commonwealth that is repackaged by a bailee for hire or importing distributor on behalf of an out of State manufacturer must be returned to the out of State manufacturer and come to rest out of State before it may reenter this Commonwealth. Such repackaged malt or brewed beverages must be distributed through the three-tier system. Any malt or brewed beverage that is repackaged by a bailee for hire or importing distributor on behalf of an in State manufacturer must be returned to the in State manufacturer and come to rest at the in State manufacturer's licensed facility.

(2) For purposes of this section, "repackage" shall mean any change or alteration to the containers or container configuration of a case.

((f) added Dec. 8, 2004, P.L.1810, No.239)

(g) (1) Any nonalcoholic malt or brewed beverage produced by an out-of-State manufacturer of malt or brewed beverages or a Pennsylvania manufacturer of malt or brewed beverages which has designated an importing distributor pursuant to this section shall be distributed in accordance with the provisions of this section notwithstanding that it is not a malt or brewed beverage as defined in section 102.

(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. ((2) amended July 15, 2024, P.L.700, No.57)

((g) added July 2, 2019, P.L.324, No.45)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsections (b) and (d)(2), for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 431.1. Malt and Brewed Beverages Alternating Brewers' Licenses.--(a) The board shall be authorized to issue an alternating brewer's license to qualified entities. In order to qualify for the alternating brewer's license, the applicant must demonstrate that it holds a Federal brewer's notice registration issued for a premises within this Commonwealth and meet all the qualifications imposed on the holder of a malt and brewed beverage manufacturer's license.

(b) The holder of an alternating brewer's license shall have all the rights and be subject to the same conditions and qualifications as those imposed on holders of a malt or brewed beverage manufacturer's license except as set forth in this section.

(c) The holder of an alternating brewer's license is not required to maintain separate manufacturing premises; rather, the alternating brewer's license shall be valid at premises that are licensed by another entity under a Pennsylvania manufacturer's license. The holder of an alternating brewer's license shall not be entitled to the limited tax credit available under section 2010 of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971."

(d) Malt and brewed beverages manufactured under the authority of an alternating brewer's license must be distributed in this Commonwealth only through specific importing distributors who shall first have been given distributor rights for such products in designated geographical areas through the distribution system required for out-of-State manufacturers under section 431(b) as well as all other pertinent sections of this act. The alternating brewer must comply with section 444.

(e) The application, renewal and filing fees for a malt and brewed beverages alternating brewer's license shall be as prescribed in section 614-A(10) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929."

(431.1 added Feb. 21, 2002, P.L.103, No.10)

Section 431.2. Authority to Acquire Ready-to-Drink Cocktail Permits.--The holder of a distributor or importing distributor license may acquire a ready-to-drink cocktail permit as set forth in section 415.1. The holder of a ready-to-drink cocktail permit may conduct tastings of ready-to-drink cocktails in accordance with the board's regulations pertaining to tastings for liquor. The ready-to-drink cocktails shall not be subject to the prohibitions set forth in section 492(13) and (14) which would otherwise prohibit distributors and importing distributors from selling, storing, possessing or interacting with liquor.

(431.2 added July 17, 2024, P.L.924, No.86)

Section 432. Malt and Brewed Beverages Retail Licenses.--(a) Subject to the restrictions hereinafter provided in this act, and upon being satisfied of the truth of the statements in the application, that the premises and the applicant meet all the requirements of this act and the regulations of the board, that the applicant seeks a license for a reputable hotel, eating place or club, as defined in this act, the board shall, in the case of a hotel or eating place, grant and issue, and in the case of a club may, in its discretion, issue or refuse the applicant a retail dispenser's license.

(b) In the case of hotels and eating places, licenses shall be issued only to reputable persons who are citizens of the United States and have for two years been residents of the Commonwealth of Pennsylvania at the date of their application, or to reputable corporations organized or duly registered under the laws of the Commonwealth of Pennsylvania, all of whose officers and directors are citizens of the United States. In the case of incorporated clubs, licenses shall be issued only to those incorporated under the laws of Pennsylvania.

(c) No retail dispenser's licenses shall be granted or renewed upon their expiration in any municipality in which the electors shall vote, as hereinafter provided, against the licensing therein of places where malt or brewed beverages may be sold for consumption on the premises where sold.

(d) The board shall, in its discretion, grant or refuse any new license, the transfer of any license to a new location or the extension of an existing license to cover an additional area if such place proposed to be licensed is within three hundred feet of any church, hospital, charitable institution, school, or public playground, or if such new license, transfer or extension is applied for a place which is within two hundred feet of any other premises which is licensed by the board. The board shall refuse any application for a new license, the transfer of any license to a new location or the extension of an existing license to cover an additional area if, in the board's opinion, such new license, transfer or extension would be detrimental to the welfare, health, peace and morals of the inhabitants of the neighborhood within a radius of five hundred feet of the place to be licensed. The board may enter into an agreement with the applicant concerning additional restrictions on the license in question. If the board and the applicant enter into such an agreement, such agreement shall be binding on the applicant. Failure by the applicant to adhere to the agreement will be sufficient cause to form the basis for a citation under section 471 and for the nonrenewal of the license under section 470. If the board enters into an agreement with an applicant concerning additional restrictions, those restrictions shall be binding on subsequent holders of the license until the license is transferred to a new location or until the board enters into a subsequent agreement removing those restrictions. If the application in question involves a location previously licensed by the board, then any restrictions imposed by the board on the previous license at that location shall be binding on the applicant unless the board enters into a new agreement rescinding those restrictions. The board shall have the discretion to refuse a license to any person or to any corporation, partnership or association if such person, or any officer or director of such corporation, or any member or partner of such partnership or association shall have been convicted or found guilty of a felony within a period of five years immediately preceding the date of application for the said license. The board may, in its discretion, refuse an application for an economic development license under section 461(b.1) or an application for an intermunicipal transfer or a license if the board receives a protest from the governing body of the receiving municipality. The receiving municipality of an intermunicipal transfer or an economic development license under section 461(b.1) may file a protest against the approval for issuance of a license for economic development or an intermunicipal transfer of a license into its municipality, and such municipality shall have standing in a hearing to present testimony in support of or against the issuance or transfer of a license. Upon any opening in any quota, an application for a new license shall only be filed with the board for a period of six months following said opening. ((d) amended June 5, 2020, P.L.213, No.29)

(e) Every applicant for a new or for the transfer of an existing license to another premises not then licensed shall post, for a period of at least thirty days beginning with the day the application is filed with the board, in a conspicuous place on the outside of the premises or in a window plainly visible from the outside of the premises for which the license is applied or at the proposed new location, a notice of such application. The notice shall indicate whether the applicant is applying for the amusement permit required by section 493(10). The notice shall be in such form, be of such size, and contain such provisions as the board may require by its regulations. Proof of the posting of such notice shall be filed with the board. ((e) amended Dec. 9, 2002, P.L.1653, No.212)

(f) Hotel, eating places, or municipal golf course retail dispenser licensees may sell malt or brewed beverages between the hours of eleven o'clock antemeridian on Sunday and two o'clock antemeridian on Monday upon purchase of a special permit from the board at an annual fee as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929," which shall be in addition to any other license fees. Notwithstanding this provision, a licensee holding such a special permit may begin selling malt or brewed beverages on Sunday between the hours of nine o'clock antemeridian and eleven o'clock antemeridian provided that the licensee offers a meal, as that term is defined in section 406, beginning at nine o'clock antemeridian. ((f) amended Dec. 22, 2011, P.L.530, No.113)

(g) ((g) deleted by amendment Nov. 29, 2006, P.L.1421, No.155)

(h) In a municipality which has approved the granting of liquor licenses and upon application to the board and payment of a fee of thirty thousand dollars ($30,000), the board shall convert an eating place retail dispensing license to a restaurant license without regard to the quota restrictions set forth in section 461(a). The converted restaurant license shall be subject to the provisions of this act governing restaurant liquor licenses. The provisions of this subsection allowing a holder of an eating place retail dispensing license to convert the license to a restaurant liquor license shall only apply to a license holder whose license is not subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1), until the matter is decided. A conversion under this subsection shall be considered a transfer or issuance of a new license for the purposes of section 402. This subsection does not apply to licenses in a city of the first class. ((h) added June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (d) and added subsection (h), for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 433. Public Service Licenses.--The board may issue public service malt and brewed beverage licenses to a railroad, pullman or steamship company permitting malt or brewed beverages to be sold at retail in dining, club or buffet cars, or the dining compartments of steamships or vessels, for consumption on the trains, steamships or vessels wherever operated in the State, except when standing in stations or terminals within a municipality wherein retail sales are prohibited. Such licenses shall only be granted to reputable persons and for fit places. The board may issue a master license to railroad or pullman companies to cover the maximum number of cars which the company shall estimate that it will operate within the Commonwealth on any one day. Such licensees shall file monthly reports with the board showing the maximum number of cars operated at any time on any day during the preceding month, and if it appears that more cars have been operated than covered by its license it shall forthwith remit to the board the sum of ten dollars for each extra car so operated. The board shall have the power to suspend or revoke any such licenses for cause after granting to the licensee a hearing before a hearing examiner. Any person aggrieved by the decision of the board in refusing, suspending or revoking any such license may appeal to the Commonwealth Court in the same manner as provided in this article for appeals from refusals of licenses.

(433 amended June 30, 1992, P.L.327, No.66)

Section 433.1. Stadium or Arena Permits.--(433.1 repealed Dec. 20, 2000, P.L.992, No.141)

Section 434. License Period.--(a) Licenses issued under this article to distributors, importing distributors and retail dispensers shall, unless revoked in the manner provided in this act, be valid for the license period which may be established by the board for each particular license.

(b) Malt or brewed beverage licenses issued under this article to manufacturers and public service companies shall, unless revoked in the manner herein provided, be valid for the license period for which they are issued.

(c) 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 or upon notification to the board by the Department of Revenue or the Department of Labor and Industry of its objection, the license of such person shall immediately become invalid and shall remain invalid until payment and all charges are received by the board.

(434 amended Apr. 29, 1994, P.L.212. No.30)

Section 435. Filing of Applications for Distributors', Importing Distributors' and Retail Dispensers' Licenses; Filing Fee.--Every person intending to apply for a distributor's, importing distributor's or retail dispenser's license, as aforesaid, in any municipality of this Commonwealth, shall file with the board his or its application. All such applications shall be filed at a time to be fixed by the board. The applicant shall file with the board fees 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."

(435 amended Dec. 21, 1998, P.L.1202, No.155)

Section 436. Application for Distributors', Importing Distributors' and Retail Dispensers' Licenses.--Application for distributors', importing distributors' and retail dispensers' licenses, or for the transfer of an existing license to another premises not then licensed or to another person, shall contain or have attached thereto the following information and statements: (Intro. par amended Feb. 21, 2002, P.L.103, No.10)

(a) The name and residence of the applicant and how long he has resided there, and if an association, partnership or corporation, the residences of the members, officers and directors for the period of two years next preceding the date of such application.

(b) The particular place for which the license is desired and a detailed description thereof. The description, information and plans referred to in this subsection shall show the premises or the proposed location for the construction of the premises at the time the application is made, and shall show any alterations proposed to be made thereto, or the new building proposed to be constructed after the approval by the board of the application for a license, or for the transfer of an existing license to another premises not then licensed or to another person. No physical alterations, improvements or changes shall be required to be made to any hotel, eating place or club, nor shall any new building for any such purpose be required to be constructed until approval of the application for license or for the transfer of an existing license to another premises not then licensed or to another person by the board. After approval of the application, the licensee shall make the physical alterations, improvements and changes to the licensed premises, or shall construct the new building in the manner specified by the board at the time of approval. The licensee shall not transact any business under the license until the board has approved the completed physical alterations, improvements and changes of the licensed premises or the completed construction of the new building as conforming to the specifications required by the board at the time of issuance or transfer of the license and is satisfied that the premises meet the requirements for a distributor's or importing distributor's license as set forth in this act or that the establishment is an eating place, hotel or club as defined by this act. The board may require that all such alterations or construction or conformity to definition be completed within six months from the time of issuance or transfer of the license. The time between the approval of the initial application and issuance of operating authority to the licensee shall be considered as time in safekeeping. Failure to comply with these requirements shall be considered cause for revocation of the license. No such license shall be transferable between the time of issuance or transfer of the license and the approval of the completed alterations or construction by the board and full compliance by the licensee with the requirements of this act, unless the transfer application is accompanied by a surcharge. The surcharge shall be fifteen thousand dollars ($15,000) if the license is located in a county of the first through third class. The surcharge shall be five thousand dollars ($5,000) if the license is located in a county of the fourth through eighth class. ((b) amended Dec. 14, 2023, P.L.392, No.45)

(c) Place of birth of applicant, and if a naturalized citizen, where and when naturalized, and if a corporation organized or registered under the laws of the Commonwealth, when and where incorporated, with the names and addresses of each officer and director, all of whom shall be citizens of the United States; if the application is for a distributor's or importing distributor's license and the applicant therefor is a corporation, the application shall also contain a statement of facts showing the qualifications of the corporation, as hereinbefore required, together with the names and addresses of all stockholders.

(d) Name of owner of premises and his residence.

(e) That the applicant is not, or in case of a partnership or association, that the members or partners are not, and in the case of a corporation, that the officers and directors are not, in any manner pecuniarily interested, either directly or indirectly, in the profits of any other class of business regulated under this article, except as hereinafter permitted.

(f) That applicant and management company or companies, if any, are the only persons in any manner pecuniarily interested in the business so asked to be licensed, and that no other person shall be in any manner pecuniarily interested therein during the continuance of the license, except as hereinafter permitted. ((f) amended June 8, 2016, P.L.273, No.39)

(g) Whether applicant, or in case of a partnership or association, any member or partner thereof, or in case of a corporation, any officer or director thereof, has during the three years immediately preceding the date of said application had a license for the sale of malt or brewed beverages or spirituous and vinous liquors revoked, or has during the same period been convicted of any criminal offense, and if so, a detailed history thereof.

(h) A full description of that portion of the premises for which license is asked, and if any other business is to be conducted concurrently with the sale and distribution of malt or brewed beverages, a full history of such business, relating the nature thereof, the length of time it has so previously been conducted by the applicant or his predecessor at such location, and such additional information as the board may require.

(i) Every club applicant shall file with and as a part of its application a list of the names and addresses of its members, directors, officers, agents and employes, together with the dates of their admission, election or employment, and such other information with respect to its affairs as the board shall require.

(j) The application must be verified by affidavit of applicant, and if any false statement is intentionally made in any part of the application, the affiant shall be deemed guilty of a misdemeanor and, upon conviction, shall be subject to the penalties provided by this article.

(k) If the licensee in question has a retail dispenser license, and the applicant intends to use a management company to operate, manage or supervise all or part of the operation of the licensed premises, the applicant must file a written application with the board on the form or forms as the board shall, from time to time, prescribe. The application shall be accompanied by a fee in an amount to be determined by the board. The board shall refuse the application if the management company or any person involved with the management would be precluded from holding an interest in the underlying license. ((k) added June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (f) and added subsection (k), for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 437. Prohibitions Against the Grant of Licenses.--(a) The board shall refuse to grant any licenses unless the application therefor contains the information required by this act, and the premises meet such reasonable sanitary requirements as the board, by regulation, shall prescribe.

(b) The board shall refuse to grant a license to any club when it appears that the operation of such license would inure to the benefit of individual members, officers, agents or employes of the club, rather than to the benefit of the entire membership of the club.

(c) Licenses shall be granted by the board only to reputable individuals, or to associations, partnerships and corporations whose members or officers and directors are reputable individuals.

(d) No person who holds any public office that involves the duty to enforce any of the penal laws of the United States, this Commonwealth or of any political subdivision of this Commonwealth may have any interest in a manufacturer's, importing distributor's, distributor's or retail dispenser's license. This prohibition applies to anyone with arrest authority, including, but not limited to, United States attorneys, State attorneys general, district attorneys, sheriffs and police officers. This prohibition shall also apply to magisterial district judges, judges or any other individuals who can impose a criminal sentence. This prohibition does not apply to members of the General Assembly, township supervisors, city councilpersons, mayors without arrest authority and any other public official who does not have the ability to arrest or the ability to impose a criminal sentence. This section does not apply if the proposed premises are located outside the jurisdiction of the individual in question. ((d) amended Dec. 22, 2011, P.L.530, No.113)

(e) No distributor's or importing distributor's license shall be issued for any premises in any part of which there is operated any retail license for the sale of liquor or malt or brewed beverages.

(f) No new distributor's or importing distributor's license shall hereafter be granted by the board in any county of the Commonwealth where the combined number of distributor and importing distributor licenses exceeds one license for each thirty thousand inhabitants of the county in which the license is to be issued: Provided, That a combined total of five such licenses may be granted in any county of the Commonwealth.

Nothing in this subsection shall be construed as denying the right of the board to renew or to transfer existing distributors' or importing distributors' licenses or to exchange a distributor's license for an importing distributor's license or to exchange an importing distributor's license for a distributor's license, upon adjustment of the applicable fee, notwithstanding that the number of such licensed places in the county shall exceed the limitation hereinbefore prescribed: Provided, That no distributor's license or importing distributor's license shall be transferred from one county to another county so long as the quota is filled in the county to which the license is proposed to be transferred.

((f) amended Dec. 7, 1990, P.L.622, No.160)

Section 438. Number and Kinds of Licenses Allowed Same Licensee.--(a) Any retail dispenser may be granted licenses to maintain, operate or conduct any number of places for the sale of malt or brewed beverages, but a separate license must be secured for each place where malt or brewed beverages are sold.

(b) No person shall possess or be issued more than one distributor's or importing distributor's license.

(c) No person shall possess more than one class of license, 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 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 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. ((c) amended June 25, 2010, P.L.217, No.35)

Section 439. Malt or Brewed Beverage License Fees.--No public service license and no license to any manufacturer, distributor, importing distributor or retail dispenser shall be issued, renewed or validated under the provisions of this subdivision (B) until the licensee shall have first paid an annual license fee, as prescribed in section 614-A of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." 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 or upon notification to the board by the Department of Revenue or the Department of Labor and Industry of its objection, the license of such person shall immediately become invalid and shall remain invalid until payment and all charges are received by the board.

(439 amended Apr. 29, 1994, P.L.212, No.30)

Section 440. Sales by Manufacturers of Malt or Brewed Beverages; Minimum Quantities.--A manufacturer may sell malt or brewed beverages produced and owned by the manufacturer to individuals on the licensed premises for consumption on the licensed premises where sold only if it complies with the conditions and regulations placed upon holders of brewery licenses under section 446(a)(1). A manufacturer also may sell any malt or brewed beverages produced and owned by the manufacturer to individuals on the licensed premises for consumption off the licensed premises in containers or packages of unlimited quantity and of any volume. No manufacturer may maintain or operate within the Commonwealth any place or places other than the place or places covered by his or its license where malt or brewed beverages are sold or where orders are taken.

(440 amended July 5, 2012, P.L.1007, No.116)

Section 441. Distributors' and Importing Distributors' Restrictions on Sales, Storage, Etc.--(a) No distributor or importing distributor shall purchase, receive or resell any malt or brewed beverages and ready-to-drink cocktails, if a ready-to-drink cocktail permit is obtained, except:

(1) in the original containers as prepared for the market by the manufacturer at the place of manufacture;

(2) in the case of identical containers repackaged in the manner described by subsection (f); or

(3) as provided in section 431(b).

(b) (1) No distributor or importing distributor shall sell any malt or brewed beverages in quantities of less than a case or original containers containing one hundred twenty-eight ounces or more which may be sold separately: Provided, That no malt or brewed beverages sold or delivered shall be consumed upon the premises of the distributor or importing distributor, or in any place provided for such purpose by such distributor or importing distributor. Notwithstanding any other provision of this section or act, malt or brewed beverages and ready-to-drink cocktails which are part of a tasting conducted pursuant to the board's regulations may be consumed on licensed premises.

(2) Distributors and importing distributors that hold a ready-to-drink cocktail permit shall be permitted to sell ready-to-drink cocktails in any quantity, and all sales must be in original containers. Sales of ready-to-drink cocktails are limited to sales to nonlicensees, and sales of ready-to-drink cocktails for subsequent resale are prohibited.

(c) No distributor or importing distributor shall maintain or operate any place where sales are made other than that for which the license is granted.

(d) (1) No distributor shall maintain any place for the storage of malt or brewed beverages and ready-to-drink cocktails, except in the same municipality in which the licensed premises is located and unless the same has been approved by the board. In the event there is no place of cold storage in the same municipality, the board may approve a place of cold storage in the nearest municipality.

(2) No importing distributor shall maintain any place for the storage of malt or brewed beverages and ready-to-drink cocktails, except in the franchise territory in which the licensed premises is located and unless the same has been approved by the board. The board shall issue no more than four storage facilities license to an importing distributor. The storage location shall be designated solely as a storage facility, from which only sales to other licensees are permitted. Retail sales may be made at the licensed location pursuant to subsection (c). If the importing distributor maintains a storage location for cold storage in the same municipality in which the importing distributor is licensed or a nearby municipality, the importing distributor may continue to maintain that cold storage location in addition to another storage location within their franchise territory.

(e) No distributor or importing distributor shall purchase, sell, resell, receive or deliver any malt or brewed beverages, except in strict compliance with the provisions of subsection (b) of section 431 of this act.

(f) (1) To salvage one or more salable cases from one or more damaged cases, cartons or packages of malt or brewed beverages and ready-to-drink cocktails, a distributor or importing distributor may repackage consequent to inadvertent damage and sell a case, carton or package of identical units of malt or brewed beverages or ready-to-drink cocktails.

(2) Repackaging is permissible only to the extent made necessary by inadvertent damage. Repackaging not consequent to damage is prohibited.

(3) The term "identical units" as used in this subsection means undamaged bottles or cans of identical brand, package and volume.

(g) All malt or brewed beverages purchased by an importing distributor from a Pennsylvania manufacturer of malt or brewed beverages or from any person located outside this Commonwealth for resale shall be invoiced to the importing distributor, shall come physically into the possession of such importing distributor and shall be unloaded into and distributed from the licensed premises of such importing distributor. The board may act to further define and control the storage and distribution of malt or brewed beverages and ready-to-drink cocktails in conformity with this section and this act.

(h) As used in this section, the term "franchise territory" shall mean the geographically contiguous area in which an importing distributor has been given rights for the sale or resale of malt or brewed beverages.

(i) Notwithstanding any other provision to the contrary, when making a sale of malt or brewed beverages and ready-to-drink cocktails to a private individual, no distributor or importing distributor may be required to collect the name, address or any other identifying information of the private individual for the purpose of keeping a record of the quantity of cases or volume of malt or brewed beverages or ready-to-drink cocktails purchased.

(441 amended July 17, 2024, P.L.924, No.86)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsection (d)(2), for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 442. Retail Dispensers' Restrictions on Purchases and Sales.--(a) (1) (i) No retail dispenser shall purchase or receive any malt or brewed beverages except in original containers as prepared for the market by the manufacturer at the place of manufacture. The retail dispenser may thereafter break the bulk upon the licensed premises and sell or dispense the same for consumption on or off the premises so licensed. No retail dispenser may sell malt or brewed beverages for consumption off the premises in quantities in excess of one hundred ninety-two fluid ounces. Sales may be made in open or closed containers, Provided, however, That a municipality may adopt an ordinance restricting open containers in public places. No club licensee may sell any malt or brewed beverages for consumption off the premises where sold or to persons not members of the club. Sales of malt or brewed beverages must occur on the licensed premises.

(ii) If a retail dispenser license holder has an interior connection to another business that it operates, the retail dispenser license holder may use one or more of the registers in the other business to sell malt or brewed beverages for off-premises consumption under the following conditions:

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

(B) the registers are located in the same building as the licensed premises;

(C) the registers comply with the signage, staffing, training, carding, scanning and prohibition on the sharing of data provisions of section 415(a)(8) and (9); and

(D) the board has been provided notice of compliance with this subparagraph by the retail dispenser license holder, including square footage of the building and the location of the specific registers to be used prior to their use.

(iii) The registers used under subparagraph (ii) shall be deemed to be licensed areas but no formal application beyond notice to the board shall be required. The registers may be used by the other business.

((1) amended June 5, 2020, P.L.213, No.29)

(2) Notwithstanding any other provision of law or any existing permit authorizing the sale of malt or brewed beverages for consumption off the premises, a retail dispenser licensee located in a city of the first class who is otherwise permitted to sell malt or brewed beverages for consumption off the premises may not do so after October 31, 2007, unless it acquires a permit from the board.

(3) The application for a permit to sell malt or brewed beverages for consumption off the premises shall be on forms designated by the board and contain such information as the board may require. The application and renewal fee shall be as prescribed in section 614-A(28) of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." However, no applicant who currently has a permit shall be required to pay any additional fees under section 614-A(28) of "The Administrative Code of 1929" in order to continue selling malt or brewed beverages for consumption off the premises at its currently licensed location for the licensing term beginning November 1, 2007, and ending October 31, 2008.

(4) The application for a permit to sell malt or brewed beverages for consumption off the premises must be accompanied by a copy of the approval of such request by the hearing board authorized by this section.

(5) A city of the first class shall create a hearing board within its Department of Licenses and Inspections to hear requests from licensees who are seeking a permit from the hearing board authorizing the licensee to sell malt or brewed beverages for consumption off the premises. Each hearing board shall consist of three persons appointed by the mayor of the city of the first class, who are subject to approval by the city council of the city of the first class. Each person so appointed shall serve at the pleasure of the appointing authority. The hearing board may, in its discretion, hold hearings to adduce testimony regarding a request. The hearing board must render a decision within ninety days of receipt of a request for approval of a permit to sell malt or brewed beverages for consumption off the premises. The hearing board must approve the request unless it finds that doing so would adversely affect the welfare, health, peace and morals of the city or its residents. A decision by the hearing board to deny a request may be appealed to the court of common pleas in the county in which the city is located. The failure to render a decision by the hearing board within the required time period shall be deemed approval of the permit.

(6) Upon being satisfied that the applicant has fulfilled all the requirements of this act and the board's regulations, the board shall approve the application. Such permits shall expire upon the transfer of the license to a new entity or to a new location, or both; otherwise, such permits shall expire at the same time as the expiration of the underlying license.

((a) amended Nov. 29, 2006, P.L.1421, No.155)

(b) No retail dispenser shall sell any malt or brewed beverages for consumption on the licensed premises except in a room or rooms or place on the licensed premises at all times accessible to the use and accommodation of the general public, but this section shall not be interpreted to prohibit a retail dispenser from selling malt or brewed beverages in a hotel or club house in any room of such hotel or club house occupied by a bona fide registered guest or member entitled to purchase the same or to prohibit a retail dispenser from selling malt or brewed beverages in a bowling alley where the licensed premises and bowling alley are immediately adjacent and under the same roof. ((b) amended July 17, 2003, P.L.63, No.15)

(c) For the purpose of this section any person who is an active member of another club which is chartered by the same state or national organization shall have the same rights and privileges as members of the particular club.

(d) For the purposes of this section, any person who is an active member of any volunteer firefighting company, association or group of this Commonwealth, whether incorporated or unincorporated, shall upon the approval of any club composed of volunteer firemen licensed under this act, have the same social rights and privileges as members of such licensed club.

(e) (1) The holder of a retail dispenser license located in a hotel may allow persons to transport malt or brewed beverages from the licensed portion of the premises to the unlicensed portion of the premises so long as the malt or brewed beverages remain on the hotel property.

(2) In addition, the holder of a retail dispenser license located on a golf course may allow its patrons to order malt or brewed beverages on licensed premises for subsequent delivery by the licensee on nonlicensed portions of the premises, including the golf course.

(3) In addition, a holder of a restaurant or club license located on a golf course may sell, furnish or give liquor or malt or brewed beverages on the unlicensed portion of the golf course so long as the liquor or malt or brewed beverages remain on the restaurant, club or golf course. ((3) amended May 8, 2003, P.L.1, No.1)

(4) The holder of a restaurant license located immediately adjacent to and under the same roof of a bowling center may allow persons to transport liquor or malt or brewed beverages from the licensed portion of the premises to the unlicensed portion of the premises so long as the liquor or malt or brewed beverages remain within the bowling center.

((e) added Dec. 9, 2002, P.L.1653, No.212 and Dec. 16, 2002, P.L.1806, No.221)

(f) The holder of an eating place retail dispenser license may obtain an off-premises catering permit under section 493(33) to hold a catered function off of the licensed premises and on otherwise unlicensed premises where the licensee may sell malt or brewed beverages by the glass, open bottle or any other container, together with food, for consumption on those premises solely used for catering premises. Functions conducted under the authority of the permit shall be subject to the following:

(1) malt or brewed beverages may only be provided during the days and hours that the license holder may otherwise sell malt or brewed beverages;

(2) each catered function shall last no longer than one day and an unlimited number of catered functions may be held each calendar year by each license holder for use with a particular license; ((2) amended Dec. 14, 2023, P.L.421, No.51)

(3) a catered function shall not be held at a location that is already subject to the applicant's or another licensee's license;

(4) a permit shall not be issued to an applicant whose license is in safekeeping;

(5) a permit shall not be issued to a location that is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1);

(6) a permit shall not be issued to a location that is subject to a pending license suspension under section 471 or the one-year prohibition on the issuance or transfer of a license under section 471(b);

(7) no malt or brewed beverages may be taken from the permitted location by a patron, but the applicant may transport malt or brewed beverages to and from its licensed premises to the proposed premises;

(8) written notice of the catered function as enumerated in paragraph (9) shall be provided to the local police and the enforcement bureau at least seven days in advance of the event;

(9) except as provided under paragraph (10.1), written notice shall be provided to the board at least fourteen days prior to a catered function. Written notice must include the location of the function, time of the function, host of the function, general information regarding the guests expected at the function as well as any information the board shall from time to time prescribe. The board may, in its discretion, accept notice in an electronic format. The board may, in its discretion, waive the fourteen-day notice period for a catered function if: (Intro. par. amended Dec. 22, 2025, P.L.337, No.56)

(i) the applicant has previously conducted functions that meet the requirements of this act;

(ii) the applicant is a licensee in good standing with the board; of

(iii) notification was received at least seven days prior to the catered function; and

(iv) the applicant pays a late fee of one hundred dollars ($100);

(10) except as provided under paragraph (10.1), the board shall, in its discretion, approve or disapprove a catered function if the applicant fails to provide timely notice of the catered function, does not intend to conduct a function that meets the requirements of this act or has previously conducted a function that did not meet the requirements of this act; ((10) amended Dec. 22, 2025, P.L.337, No.56)

(11) if a catered function is scheduled to occur on private property, the owner of that property is deemed to have submitted to the jurisdiction of the enforcement bureau, and the warrant required by section 211(a)(2) of this act shall not be necessary for the enforcement bureau to enter and search the premises during the function or any activities related to the function;

(12) all servers at the off-premises catered function shall be in compliance with the responsible alcohol management provisions under section 471.1 of this act;

(13) no catered function may be held for more than six hours per day and must end by midnight unless the catered function occurs on December 31 of any calendar year on which the date the catered function must end by two o'clock antemeridian; ((13) amended Dec. 14, 2023, P.L.421, No.51)

(14) neither the owner of the property nor the applicant may sell tickets to a catered function unless one of the following conditions is met:

(i) the applicant has contracted with an eligible entity for the function, and the function is being used to raise money for the eligible entity's organization;

(iii) the applicant has contracted with an organization that holds tax-exempt status under section 527 of the Internal Revenue Code of 1986;

(15) catered functions held on unlicensed premises shall be subject to section 493(34) of this act;

(16) catered functions may not be held in locations that are subject to a pending, protested transfer application;

(17) a permit may not be issued to a licensee who is subject to objection under the board's nuisance bar program;

(18) a permit shall not be issued to a licensee for use in any location that is mobile; and

(19) a permit shall not be issued for use on any location used for parking at a sports event or concert event.

((f) amended June 8, 2016, P.L.273, No.39)

(g) Notwithstanding any other provision of law or regulation, the holder of a retail dispenser license may hold happy hours up to four consecutive or nonconsecutive hours per day and up to fourteen hours per week during which the holder discounts the price of alcoholic beverages. 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-hours per day or fourteen-hours per week. ((g) amended June 8, 2016, P.L.273, No.39)

Compiler's Note: See section 28 of Act 39 of 2016, which amended subsections (f) and (g), in the appendix to this act, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Compiler's Note: Acts 212 and 221 of 2002 added subsec. (e). Act 221 overlooked the amendment by Act 212, but the amendments do not conflict in substance and have both been given effect in setting forth the text of subsec. (e). Pars. (1), (3) and (4) took effect on December 16, 2002. Par. (2) took effect on February 7, 2003.

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 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.

(b) No distributor or importing distributor and no officer or director of any distributor or importing distributor shall at the same time be a manufacturer, a retail dispenser or a liquor licensee, or be an officer, director, stockholder or creditor of a manufacturer, a retail dispenser or a liquor licensee, or, directly or indirectly, own any stock of, or have any financial interest in, or be the owner, proprietor or lessor of, any place covered by any other malt or brewed beverage or liquor license.

(c) No licensee licensed under this subdivision (B) of 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 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.

(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. ((d) amended July 15, 2024, P.L.700, No.57)

(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, 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 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. 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). ((e) amended June 18, 1998, P.L.664, No.86)

(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 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 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. 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). ((f) amended June 18, 1998, P.L.664, No.86)

(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 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 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: 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 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.

((g) amended Dec. 22, 2011, P.L.530, No.113)

(h) The following shall apply:

((h) added June 8, 2016, P.L.273, No.39)

(443 amended May 31, 1996, P.L.312, No.49)

Compiler's Note: Section 13 of Act 57 of 2024 provided that all regulations and parts of regulations are abrogated to the extent of any inconsistency with Act 57.

Compiler's Note: See section 28 of Act 39 of 2016, which added subsection (h), for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.

Section 444. Malt or Brewed Beverages Manufactured Outside This Commonwealth.--(a) In addition to compliance with all other provisions of this act, the board shall require each person desiring to sell any malt or brewed beverages manufactured outside this Commonwealth to Pennsylvania licensees, and shall require each Pennsylvania licensee who desires to purchase and resell any such malt or brewed beverages, to pay to the board the same fees as are required to be paid by Pennsylvania licensees or by persons or licensees in any state, territory or country outside of Pennsylvania who desires to sell malt or brewed beverages manufactured in Pennsylvania to licensees in such other state, territory or country of origin of such malt or brewed beverages not manufactured in Pennsylvania, and to observe and comply with the same regulations, prohibitions and restrictions as are required of or enforced against Pennsylvania licensees or persons who desire to purchase and resell malt or brewed beverages manufactured in Pennsylvania in such other state, territory or country of origin.

(a.1) Any out of State manufacturer of malt or brewed beverages may appoint an importing distributor or bailee for hire to perform the services prescribed in section 431(b) and provide a fee to an importing distributor or bailee for hire who performs such services. ((a.1) added June 18, 1998, P.L.664, No.86)

(b) In all cases where the board shall have issued any reciprocal regulations or orders concerning malt or brewed beverages manufactured in any state, territory or country other than Pennsylvania, no Pennsylvania licensee shall purchase any such malt or brewed beverages if their importation has been prohibited, or if not entirely prohibited, unless such regulations or orders have been observed and complied with by the Pennsylvania licensee and by the person from or through whom the Pennsylvania licensee desires to purchase.

(c) Any malt or brewed beverages manufactured outside of Pennsylvania which are sold, transported or possessed in Pennsylvania contrary to any such regulations or orders of the board, or without the payment of the fees herein required, shall be considered contraband and shall be confiscated by the board and disposed of in the same manner as any other illegal liquor or malt or brewed beverages, provided that, if the potential violation is of section 445 or any associated regulation, such malt or brewed beverages shall be left on the licensed premises where found under orders not to sell such contraband until such time as the malt or brewed beverage manufacturer comes into compliance with Pennsylvania's regulations or until the licensee holding the contraband can return it to the manufacturer and be fully reimbursed. ((c) amended June 28, 2011, P.L.55, No.11)

(d) Upon learning of the commission by a manufacturer of malt or brewed beverages whose principal place of business is outside this Commonwealth, or by any servant, agent, employe or representative of such manufacturer, within or partly within and partly outside this Commonwealth, of any violation of this act or any laws of this Commonwealth relating to liquor, alcohol or malt or brewed beverages, or of any regulation of the board adopted pursuant thereto, or of any violation of any laws of this Commonwealth or of the United States of America relating to the tax payment of liquor or malt or brewed beverages, the board shall cite such manufacturer to appear before it or an administrative law judge not less than ten nor more than fifteen days from the date of mailing such manufacturer at his principal place of business, wherever located, by registered mail, a notice to show cause why the further importation into this Commonwealth of malt or brewed beverages manufactured by him should not be prohibited.

(e) Upon such hearing, whether or not an appearance was made by such outside manufacturer, if satisfied that any such violation has occurred, the board is specifically empowered and directed to issue an order imposing a fine upon such outside manufacturer of not less than five hundred dollars ($500) or more than ten thousand dollars ($10,000), or prohibiting the importation of malt or brewed beverages manufactured by such out of State manufacturer into this Commonwealth for a period not exceeding three years, or both. Such fine or prohibition shall not go into effect until twenty days have elapsed from the date of notice of issuance of the board's order. ((e) amended June 18, 1998, P.L.664, No.86)

(f) If, after hearing, the board prohibits the importation of malt or brewed beverages manufactured by such outside manufacturer into this Commonwealth, notice of such board action shall be given immediately to such manufacturer and to all persons licensed to import malt or brewed beverages within this Commonwealth by mailing a copy of such order to such manufacturer at its principal place of business, wherever located, and to such licensees at their licensed premises. Thereafter, it shall be unlawful for any person licensed to import malt or brewed beverages within this Commonwealth to purchase any malt or brewed beverages manufactured by such outside manufacturer during the term of such prohibition.

(g) Any violation of such prohibitory order shall be a misdemeanor and shall be punished in the same manner as herein provided for any other violation of this act, and shall also constitute grounds for revocation or suspension of a license to import malt or brewed beverages.

(h) In all such cases, the board shall file of record at least a brief statement in the form of an opinion of the reasons for the ruling or order.

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 beverages, together with an annual filing fee not to exceed seventy-five dollars ($75) for each brand registration requested as set forth 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 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 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 register the involved brand before offering the same for sale in 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 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. ((b) amended Dec. 22, 2011, P.L.530, No.113)

(c) Any person selling malt or brewed beverages at wholesale, and any person selling at retail malt or brewed beverages that were not sold at wholesale, shall report to the Pennsylvania Liquor Control Board the volume of such packaged and draft malt or brewed beverages sold. The report, in the form and manner determined by the board, shall be made for each calendar month no later than sixty days after the end of each calendar month and shall show product volumes, broken down by brewer. All volumes shall be reported in thirty-one-gallon barrel equivalents, regardless of package size. The board shall, within fourteen days of the receipt of the report, place the reports on the Internet in a manner accessible to the general public. The board shall maintain the reports on the Internet in a manner accessible to the general public for a period of at least two years and shall archive the reports for a period of at least ten years. ((c) added Nov. 15, 2016, P.L.1286, No.166)

(d) The label, product packaging and marketing materials for alcoholic cider, fermented fruit beverage and mead that are used in connection with the sale and distribution of alcoholic cider, fermented fruit beverage and mead may refer to the product as "wine-based," a "wine product" or in a similar manner or by a similar name with the product still treated as a malt or brewed beverage provided that the product is registered with the board as a malt or brewed beverage as provided under this section. No product that was sold in any Pennsylvania Liquor Store after January 1, 2018, may be designated as a malt or brewed beverage. ((d) added Nov. 25, 2020, P.L.1222, No.125)

(445 amended June 28, 2011, P.L.55, No.11)

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

(1) Sell malt or brewed beverages as provided in this section under such conditions and regulations as the board may enforce as follows:

(i) Malt or brewed beverages produced by a brewery at the brewery location or under a contract brewing agreement or alternating proprietorship with an in-State manufacturer may be sold by the brewery to nonlicensees for on-premises or off-premises consumption and to licensees who are authorized to resell malt or brewed beverages. Sales to licensees under this paragraph shall comply with the provisions of this act. Malt or brewed beverages produced for the brewery under a contract brewing agreement or alternating proprietorship with an out-of-State manufacturer may only be distributed as provided under paragraph (3).

(ii) A brewery with a contract brewing agreement with an out-of-State manufacturer prior to the effective date of this paragraph may sell malt or brewed beverages to nonlicensees for on-premises or off-premises consumption. These sales are in addition to the sales authorized by this paragraph and are not subject to the distribution requirements set forth in paragraph (3). If the brewery uses storage locations granted to the brewery under section 431(a.2) for distribution or retail sales beyond those storage locations already used for distribution or retail sales prior to the effective date of this paragraph, the brewery may only sell malt or brewed beverages as provided under paragraph (3).

((1) amended July 11, 2022, P.L.747, No.67)

(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 license, malt or brewed beverages produced by another brewery licensed by the board and liquor produced by a limited distillery or distillery licensed by the board: Provided, however, That said wines, malt or brewed beverages, or liquor produced by another manufacturer and sold at the licensed premises must be consumed at the licensed premises or at an unlicensed premises that is immediate, abutting, adjacent or contiguous to the licensed premises, contained within the same building as the licensed premises, and for which shared use has been granted by the owner to no more than three licensees. In addition, the combined sales of wine, malt or brewed beverages, and liquor produced by another manufacturer 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, malt or brewed beverages, and liquor produced by another manufacturer 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. ((2) amended Dec. 22, 2025, P.L.337, No.56)

(3) Use brewery storage and distribution facilities for the purpose of receiving, storing and distributing malt or brewed beverages manufactured outside this Commonwealth, including malt or brewed beverages produced for the brewery under a contract brewing agreement or alternating proprietorship with an out-of-State manufacturer, so long as the beverages are distributed in this Commonwealth only through specific importing distributors who shall have first been given distributing rights for such products in designated geographical areas through the distribution system required for out-of-State manufacturers under section 431 as well as all other pertinent sections of this act. The manufacturer of the beverages must comply with section 444. ((3) amended July 11, 2022, P.L.747, No.67)

(4) 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 brewery pub on the licensed brewery premises, liquor, 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, but must brew at least two hundred fifty barrels per year. Each holder of a brewery license who receives a hotel liquor license, a restaurant liquor license or a malt or brewed beverages retail license to operate a brew pub shall not sell directly to any person licensed by this act, except if any malt or brewed beverage is to be distributed in this Commonwealth it shall be only through specific importing distributors who shall have first been given distributing rights for such products in designated geographical areas through the distribution system required for out-of-State manufacturers under section 431(b) as well as all other pertinent sections of this act.

(5) Nothing in paragraphs (2) and (3) shall be construed to impact the status of existing or future distribution contracts or rights under this act. ((5) added July 11, 2022, P.L.747, No.67)

((a) amended Nov. 15, 2016, P.L.1286, No.166)

(b) The holder of a brew pub license may obtain an off-premises catering permit subject to section 493(33) to hold a catered function off the licensed premises and on otherwise unlicensed premises where the licensee may sell wine produced by a licensed limited winery and malt or brewed beverages produced by the brewery by the glass, open bottle or other container together with food, and in any mixture, for consumption on those premises. Functions conducted under the authority of the permit shall be subject to the following:

(1) alcohol may be provided only during the days and hours that the license holder may otherwise sell alcohol;

(2) all servers at the off premises catered function shall be in compliance with the responsible alcohol management provisions under section 471.1;

(4) a catered function shall not be held at a location that is already subject to the applicant's or another licensee's license;

(5) a permit shall not be issued to an applicant whose license is in safekeeping;

(6) a permit shall not be issued to a location that is subject to a pending objection by the director of the Bureau of Licensing or the board under section 470(a.1);

(8) no alcohol may be taken from the permitted location by any patron, but the applicant may transport alcohol to and from its licensed premises to the proposed premises;

(10) except as provided under paragraph (10.1), written notice shall be provided to the board at least fourteen days prior to a catered function. Written notice must include the location of the function, time of the function, host of the function, general information regarding the guests expected at the function as well as any information the board shall from time to time prescribe. The board may, in its discretion, waive the fourteen-day notice period for a catered function if: (Intro. par. amended Dec. 22, 2025, P.L.337, No.56)