HB 559 — An Act amending the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, in preliminary provisions, further providing for definitions; and, in licenses and regulations and liquor, alcohol and malt and brewed beverages, further providing for license districts, license period and hearings, for issuance, transfer or extension of hotel, restaurant and club liquor licenses, for malt and brewed beverages manufacturers', distributors' and importing distributors' licenses and for malt and brewed beverages retail licenses.

PRIOR PRINTER'S NO.

563 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1697559 THE2025 GENERALINTEVANS, ASSEMBLYHOHENSTEIN, OFOTTEN PENNSYLVANIAAND HOUSESANCHEZ, BILLFEBRUARY Session12, 2025- REFERRED TO COMMITTEE ON LIQUOR CONTROL, FEBRUARY 12, 2025 AN ACT Amending the act of No.April 12, 1951 (P.L.90, No.21), entitled "An act relating to alcoholic liquors, alcohol and malt and brewed beverages;

559amending, 2025revising, INTEVANS,consolidating HOHENSTEIN,and OTTENchanging AND SANCHEZ, FEBRUARY 12, 2025- AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 13, 2025 AN ACT Amending the actlaws of April 12, 1951 (P.L.90, No.21), entitled "An act relating tothereto; alcoholic liquors, alcohol and malt and brewed beverages;

amending,regulating revising, consolidating 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;

and, in licenses and regulations and liquor, alcohol and malt and brewed beverages, further providing for license transferdistricts, orlicense extensionperiod of hotel, restaurant and clubhearings, liquorfor issuance, licenses, for malt and brewed beverages manufacturers',manufacturers',uor distributors' and importing distributors' licenses and for malt and brewed beverages retail licenses.

<-- (1) has never held a retail liquor license, importing distributor license or distributor license;

LOCATION:

<-- (1) AT WHICH A RESTAURANT, HOTEL, CLUB, RETAIL DISPENSER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR LICENSE HAS NEVER BEEN ISSUED;

OR (2) AT WHICH A RESTAURANT, HOTEL, CLUB, RETAIL DISPENSER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR LICENSE HAS NOT BEEN USED WITHIN THE PREVIOUS THREE YEARS PRECEDING THE APPLICATION.

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] previously unlicensed location, upon the request of any person with standing to testify under subsection (b) if the 20250HB0559PN1697 - 2 - 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 20250HB0559PN0563 - 2 - with their recommendations.

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 20250HB0559PN1697 - 3 - 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 20250HB0559PN0563 - 3 - or refuse a license:

And provided further, That the board shall have the 20250HB0559PN1697 - 4 - 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 20250HB0559PN0563 - 4 - applicant concerning additional restrictions on the license in question.

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, 20250HB0559PN1697 - 5 - 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.

Malt and Brewed Beverages Manufacturers', 20250HB0559PN0563 - 5 - Distributors' and Importing Distributors' Licenses.--* * * (b) The board shall issue to any reputable person who applies therefor, and pays the license fee hereinafter prescribed, a distributor's or importing distributor's license for the place which such person desires to maintain for the sale of malt or brewed beverages, 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.

And provided further, That, in the case of any new license or the transfer of any license to a [new] previously 20250HB0559PN1697 - 6 - unlicensed 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 20250HB0559PN0563 - 6 - application for a new license or the transfer of any license to a [new] previously unlicensed 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 shall require notice to be posted on the property or premises upon 20250HB0559PN1697 - 7 - which the licensee or proposed licensee will engage in sales of malt or brewed beverages.

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 20250HB0559PN0563 - 7 - 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.

or to ship to that manufacturer's storage 20250HB0559PN1697 - 8 - facilities outside this Commonwealth.

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 20250HB0559PN0563 - 8 - Pennsylvania State Police, Bureau of Liquor Control Enforcement, during normal business hours.

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 20250HB0559PN1697 - 9 - the distributor.

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 20250HB0559PN0563 - 9 - 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.

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 20250HB0559PN1697 - 10 - 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 20250HB0559PN0563 - 10 - at least thirty days:

Malt and Brewed Beverages Retail Licenses.--* * * (d) The board shall, in its discretion, grant or refuse any new license, the transfer of any license to a [new] previously unlicensed location or the extension of an existing license to cover an additional area if such place proposed to be licensed 20250HB0559PN1697 - 11 - 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] previously unlicensed location or the extension of an existing license to 20250HB0559PN0563 - 11 - 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 shall have the discretion to refuse a license to any person or to any corporation, partnership or association if such person, or any 20250HB0559PN1697 - 12 - 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 20250HB0559PN0563 - 12 - board receives a protest from the governing body of the receiving municipality.

Proof of the posting of such 20250HB0559PN1697 - 13 - notice shall be filed with the board.

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