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.

PRINTER'S NO.   563

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 559
                                               Session of
                                                 2025

     INTRODUCED BY ISAACSON, CEPEDA-FREYTIZ, GIRAL, GREEN, HILL-
        EVANS, HOHENSTEIN, OTTEN AND SANCHEZ, FEBRUARY 12, 2025

     REFERRED TO COMMITTEE ON LIQUOR CONTROL, FEBRUARY 12, 2025


                                    AN ACT
 1   Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
 2      act relating to alcoholic liquors, alcohol and malt and
 3      brewed beverages; amending, revising, consolidating and
 4      changing the laws relating thereto; regulating and
 5      restricting the manufacture, purchase, sale, possession,
 6      consumption, importation, transportation, furnishing, holding
 7      in bond, holding in storage, traffic in and use of alcoholic
 8      liquors, alcohol and malt and brewed beverages and the
 9      persons engaged or employed therein; defining the powers and
10      duties of the Pennsylvania Liquor Control Board; providing
11      for the establishment and operation of State liquor stores,
12      for the payment of certain license fees to the respective
13      municipalities and townships, for the abatement of certain
14      nuisances and, in certain cases, for search and seizure
15      without warrant; prescribing penalties and forfeitures;
16      providing for local option, and repealing existing laws," in
17      preliminary provisions, further providing for definitions;
18      and, in licenses and regulations and liquor, alcohol and malt
19      and brewed beverages, further providing for license
20      districts, license period and hearings, for issuance,
21      transfer or extension of hotel, restaurant and club liquor
22      licenses, for malt and brewed beverages manufacturers',
23      distributors' and importing distributors' licenses and for
24      malt and brewed beverages retail licenses.
25      The General Assembly of the Commonwealth of Pennsylvania
26   hereby enacts as follows:
27      Section 1.    Section 102 of the act of April 12, 1951 (P.L.90,
28   No.21), known as the Liquor Code, is amended by adding a
29   definition to read:
 1         Section 102.   Definitions.--The following words or phrases,
 2   unless the context clearly indicates otherwise, shall have the
 3   meanings ascribed to them in this section:
 4         * * *
 5         "Previously unlicensed location" shall mean a location that:
 6         (1)   has never held a retail liquor license, importing
 7   distributor license or distributor license; or
 8         (2)   previously held a retail liquor license, importing
 9   distributor license or distributor license which was not used
10   for a subsequent non-license-related purpose for a period of at
11   least three years.
12         * * *
13         Section 2.   Sections 402(a) and (b), 404(a), 431(b) and
14   432(d) and (e) of the act are amended to read:
15         Section 402.   License Districts; License Period; Hearings.--
16   (a)    The board shall hold hearings on applications for licenses
17   and renewals thereof, as it deems necessary, at such times as it
18   shall fix for the purpose of hearing testimony for and against
19   applications for new licenses and renewals thereof. The board
20   shall hold a hearing on any application for a new hotel, club or
21   restaurant liquor license or the transfer of any such license to
22   a [new] previously unlicensed location, upon the request of any
23   person with standing to testify under subsection (b) if the
24   request is filed with the board within the first fifteen days of
25   posting of the notice of application pursuant to section 403(g).
26   The board may provide for the holding of such hearings by
27   hearing examiners learned in the law, to be appointed by the
28   Governor, who shall not be subject to the act of August 5, 1941
29   (P.L.752, No.286), known as the "Civil Service Act." Such
30   hearing examiners shall make a report to the board in each case

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 1   with their recommendations. The board may fix the license period
 2   for each separate license so that the expiration dates shall be
 3   staggered as to the State.
 4      (b)   Where a hearing is held in the case of an application
 5   for a new hotel, club or restaurant liquor license or an
 6   application for the transfer of a hotel, club or restaurant
 7   liquor license to a [new] previously unlicensed location, the
 8   board shall permit residents residing within a radius of five
 9   hundred feet of the premises to testify at the hearing. The
10   board and any hearing examiner thereof shall give appropriate
11   evidentiary weight to any testimony of such residents given at
12   the hearing.
13      * * *
14      Section 404.   Issuance, Transfer or Extension of Hotel,
15   Restaurant and Club Liquor Licenses.--(a)   Upon receipt of the
16   application and the proper fees, and upon being satisfied of the
17   truth of the statements in the application that the applicant
18   and management company or companies, if any, are the only
19   persons in any manner pecuniarily interested in the business so
20   asked to be licensed and that no other person will be in any
21   manner pecuniarily interested therein during the continuance of
22   the license, except as hereinafter permitted, and that the
23   applicant is a person of good repute, that the premises applied
24   for meet all the requirements of this act and the regulations of
25   the board, that the applicant seeks a license for a hotel,
26   restaurant or club, as defined in this act, and that the
27   issuance of such license is not prohibited by any of the
28   provisions of this act, the board shall, in the case of a hotel
29   or restaurant, grant and issue to the applicant a liquor
30   license, and in the case of a club may, in its discretion, issue

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 1   or refuse a license: Provided, however, That in the case of any
 2   new license or the transfer of any license to a [new] previously
 3   unlicensed location or the extension of an existing license to
 4   cover an additional area the board may, in its discretion, grant
 5   or refuse such new license, transfer or extension if such place
 6   proposed to be licensed is within three hundred feet of any
 7   church, hospital, charitable institution, school, or public
 8   playground, or if such new license, transfer or extension is
 9   applied for a place which is within two hundred feet of any
10   other premises which is licensed by the board: And provided
11   further, That the board's authority to refuse to grant a license
12   because of its proximity to a church, hospital, charitable
13   institution, public playground or other licensed premises shall
14   not be applicable to license applications submitted for public
15   venues or performing arts facilities: And provided further, That
16   the board shall refuse any application for a new license, the
17   transfer of any license to a [new] previously unlicensed
18   location or the extension of an existing license to cover an
19   additional area if, in the board's opinion, such new license,
20   transfer or extension would be detrimental to the welfare,
21   health, peace and morals of the inhabitants of the neighborhood
22   within a radius of five hundred feet of the place proposed to be
23   licensed: And provided further, That the board shall have the
24   discretion to refuse a license to any person or to any
25   corporation, partnership or association if such person, or any
26   officer or director of such corporation, or any member or
27   partner of such partnership or association shall have been
28   convicted or found guilty of a felony within a period of five
29   years immediately preceding the date of application for the said
30   license. The board may enter into an agreement with the

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 1   applicant concerning additional restrictions on the license in
 2   question. If the board and the applicant enter into such an
 3   agreement, such agreement shall be binding on the applicant.
 4   Failure by the applicant to adhere to the agreement will be
 5   sufficient cause to form the basis for a citation under section
 6   471 and for the nonrenewal of the license under section 470. If
 7   the board enters into an agreement with an applicant concerning
 8   additional restrictions, those restrictions shall be binding on
 9   subsequent holders of the license until the license is
10   transferred to a [new] previously unlicensed location or until
11   the board enters into a subsequent agreement removing those
12   restrictions. If the application in question involves a location
13   previously licensed by the board, then any restrictions imposed
14   by the board on the previous license at that location shall be
15   binding on the applicant unless the board enters into a new
16   agreement rescinding those restrictions. The board may, in its
17   discretion, refuse an application for an economic development
18   license under section 461(b.1) or an application for an
19   intermunicipal transfer of a license if the board receives a
20   protest from the governing body of the receiving municipality.
21   The receiving municipality of an intermunicipal transfer or an
22   economic development license under section 461(b.1) may file a
23   protest against the transfer of a license into its municipality,
24   and the receiving municipality shall have standing in a hearing
25   to present testimony in support of or against the issuance or
26   transfer of a license. Upon any opening in any quota, an
27   application for a new license shall only be filed with the board
28   for a period of six months following said opening.
29      * * *
30      Section 431.   Malt and Brewed Beverages Manufacturers',

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 1   Distributors' and Importing Distributors' Licenses.--* * *
 2      (b)   The board shall issue to any reputable person who
 3   applies therefor, and pays the license fee hereinafter
 4   prescribed, a distributor's or importing distributor's license
 5   for the place which such person desires to maintain for the sale
 6   of malt or brewed beverages, not for consumption on the premises
 7   where sold, and in quantities of not less than a case or
 8   original containers containing one hundred twenty-eight ounces
 9   or more which may be sold separately as prepared for the market
10   by the manufacturer at the place of manufacture. In addition, a
11   distributor license holder may sell malt or brewed beverages in
12   any amount to a person not licensed by the board for off-
13   premises consumption. The sales shall not be required to be in
14   the package configuration designated by the manufacturer and may
15   be sold in refillable growlers. The board shall have the
16   discretion to refuse a license to any person or to any
17   corporation, partnership or association if such person, or any
18   officer or director of such corporation, or any member or
19   partner of such partnership or association shall have been
20   convicted or found guilty of a felony within a period of five
21   years immediately preceding the date of application for the said
22   license: And provided further, That, in the case of any new
23   license or the transfer of any license to a [new] previously
24   unlicensed location, the board may, in its discretion, grant or
25   refuse such new license or transfer if such place proposed to be
26   licensed is within three hundred feet of any church, hospital,
27   charitable institution, school or public playground, or if such
28   new license or transfer is applied for a place which is within
29   two hundred feet of any other premises which is licensed by the
30   board: And provided further, That the board shall refuse any

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 1   application for a new license or the transfer of any license to
 2   a [new] previously unlicensed location if, in the board's
 3   opinion, such new license or transfer would be detrimental to
 4   the welfare, health, peace and morals of the inhabitants of the
 5   neighborhood within a radius of five hundred feet of the place
 6   proposed to be licensed. The board may enter into an agreement
 7   with the applicant concerning additional restrictions on the
 8   license in question. If the board and the applicant enter into
 9   such an agreement, such agreement shall be binding on the
10   applicant. Failure by the applicant to adhere to the agreement
11   will be sufficient cause to form the basis for a citation under
12   section 471 and for the nonrenewal of the license under section
13   470. If the board enters into an agreement with an applicant
14   concerning additional restrictions, those restrictions shall be
15   binding on subsequent holders of the license until the license
16   is transferred to a [new] previously unlicensed location or
17   until the board enters into a subsequent agreement removing
18   those restrictions. If the application in question involves a
19   location previously licensed by the board, then any restrictions
20   imposed by the board on the previous license at that location
21   shall be binding on the applicant unless the board enters into a
22   new agreement rescinding those restrictions. The board shall
23   require notice to be posted on the property or premises upon
24   which the licensee or proposed licensee will engage in sales of
25   malt or brewed beverages. This notice shall be similar to the
26   notice required of hotel, restaurant and club liquor licensees.
27      Except as hereinafter provided, such license shall authorize
28   the holder thereof to sell or deliver malt or brewed beverages
29   in quantities above specified anywhere within the Commonwealth
30   of Pennsylvania, which, in the case of distributors, have been

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 1   purchased only from persons licensed under this act as
 2   manufacturers or importing distributors, and in the case of
 3   importing distributors, have been purchased from manufacturers
 4   or persons outside this Commonwealth engaged in the legal sale
 5   of malt or brewed beverages or from manufacturers or importing
 6   distributors licensed under this article. In the case of an
 7   importing distributor, the holder of such a license shall be
 8   authorized to store and repackage malt or brewed beverages owned
 9   by a manufacturer at a segregated portion of a warehouse or
10   other storage facility authorized by section 441(d) and operated
11   by the importing distributor within its appointed territory and
12   deliver such beverages to another importing distributor who has
13   been granted distribution rights by the manufacturer as provided
14   herein. The importing distributor shall be permitted to receive
15   a fee from the manufacturer for any related storage, repackaging
16   or delivery services. In the case of a bailee for hire hired by
17   a manufacturer, the holder of such a permit shall be authorized:
18   to receive, store and repackage malt or brewed beverages
19   produced by that manufacturer for sale by that manufacturer to
20   importing distributors to whom that manufacturer has given
21   distribution rights pursuant to this subsection or to purchasers
22   outside this Commonwealth for delivery outside this
23   Commonwealth; or to ship to that manufacturer's storage
24   facilities outside this Commonwealth. The bailee for hire shall
25   be permitted to receive a fee from the manufacturer for any
26   related storage, repackaging or delivery services. The bailee
27   for hire shall, as required in Article V of this act, keep
28   complete and accurate records of all transactions, inventory,
29   receipts and shipments and make all records and the licensed
30   areas available for inspection by the board and for the

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 1   Pennsylvania State Police, Bureau of Liquor Control Enforcement,
 2   during normal business hours.
 3      Each out of State manufacturer of malt or brewed beverages
 4   whose products are sold and delivered in this Commonwealth shall
 5   give distributing rights for such products in designated
 6   geographical areas to specific importing distributors, and such
 7   importing distributor shall not sell or deliver malt or brewed
 8   beverages manufactured by the out of State manufacturer to any
 9   person issued a license under the provisions of this act whose
10   licensed premises are not located within the geographical area
11   for which he has been given distributing rights by such
12   manufacturer. In addition, the holder of a distributor license
13   may not sell or deliver malt or brewed beverages to any licensee
14   whose licensed premises is located within the designated
15   geographical area granted to an importing distributor other than
16   the importing distributor that sold the malt or brewed beverages
17   to the distributor. If the licensee purchasing the malt or
18   brewed beverages from the distributor license holder holds
19   multiple licenses or operates at more than one location, then
20   the malt or brewed beverages may not be consumed or sold at
21   licensed premises located within the designated geographical
22   area granted to an importing distributor other than the
23   importing distributor that sold the malt or brewed beverages to
24   the distributor. Should a licensee accept the delivery of malt
25   or brewed beverages or transfer malt or brewed beverages in
26   violation of this section, said licensee shall be subject to a
27   suspension of his license for at least thirty days: Provided,
28   That the importing distributor holding such distributing rights
29   for such product shall not sell or deliver the same to another
30   importing distributor without first having entered into a

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 1   written agreement with the said secondary importing distributor
 2   setting forth the terms and conditions under which such products
 3   are to be resold within the territory granted to the primary
 4   importing distributor by the manufacturer.
 5      When a Pennsylvania manufacturer of malt or brewed beverages
 6   licensed under this article names or constitutes a distributor
 7   or importing distributor as the primary or original supplier of
 8   his product, he shall also designate the specific geographical
 9   area for which the said distributor or importing distributor is
10   given distributing rights, and such distributor or importing
11   distributor shall not sell or deliver the products of such
12   manufacturer to any person issued a license under the provisions
13   of this act whose licensed premises are not located within the
14   geographical area for which distributing rights have been given
15   to the distributor and importing distributor by the said
16   manufacturer. In addition, the holder of a distributor license
17   may not sell or deliver malt or brewed beverages to a licensee
18   whose licensed premises is located within the designated
19   geographical area granted to an importing distributor other than
20   the importing distributor that sold the malt or brewed beverages
21   to the distributor. If the licensee purchasing the malt or
22   brewed beverages from the distributor license holder holds
23   multiple licenses or operates at more than one location, the
24   malt or brewed beverages may not be consumed or sold at licensed
25   premises located within the designated geographical area granted
26   to an importing distributor other than the importing distributor
27   that sold the malt or brewed beverages to the distributor. If a
28   licensee accepts the delivery of malt or brewed beverages or
29   transfers malt or brewed beverages in violation of this section,
30   the licensee shall be subject to suspension of his license for

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 1   at least thirty days: Provided, That the importing distributor
 2   holding such distributing rights for such product shall not sell
 3   or deliver the same to another importing distributor without
 4   first having entered into a written agreement with the said
 5   secondary importing distributor setting forth the terms and
 6   conditions under which such products are to be resold within the
 7   territory granted to the primary importing distributor by the
 8   manufacturer. Nothing herein contained shall be construed to
 9   prevent any manufacturer from authorizing the importing
10   distributor holding the distributing rights for a designated
11   geographical area from selling the products of such manufacturer
12   to another importing distributor also holding distributing
13   rights from the same manufacturer for another geographical area,
14   providing such authority be contained in writing and a copy
15   thereof be given to each of the importing distributors so
16   affected.
17       * * *
18       Section 432.   Malt and Brewed Beverages Retail Licenses.--* *
19   *
20       (d)   The board shall, in its discretion, grant or refuse any
21   new license, the transfer of any license to a [new] previously
22   unlicensed location or the extension of an existing license to
23   cover an additional area if such place proposed to be licensed
24   is within three hundred feet of any church, hospital, charitable
25   institution, school, or public playground, or if such new
26   license, transfer or extension is applied for a place which is
27   within two hundred feet of any other premises which is licensed
28   by the board. The board shall refuse any application for a new
29   license, the transfer of any license to a [new] previously
30   unlicensed location or the extension of an existing license to

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 1   cover an additional area if, in the board's opinion, such new
 2   license, transfer or extension would be detrimental to the
 3   welfare, health, peace and morals of the inhabitants of the
 4   neighborhood within a radius of five hundred feet of the place
 5   to be licensed. The board may enter into an agreement with the
 6   applicant concerning additional restrictions on the license in
 7   question. If the board and the applicant enter into such an
 8   agreement, such agreement shall be binding on the applicant.
 9   Failure by the applicant to adhere to the agreement will be
10   sufficient cause to form the basis for a citation under section
11   471 and for the nonrenewal of the license under section 470. If
12   the board enters into an agreement with an applicant concerning
13   additional restrictions, those restrictions shall be binding on
14   subsequent holders of the license until the license is
15   transferred to a [new] previously unlicensed location or until
16   the board enters into a subsequent agreement removing those
17   restrictions. If the application in question involves a location
18   previously licensed by the board, then any restrictions imposed
19   by the board on the previous license at that location shall be
20   binding on the applicant unless the board enters into a new
21   agreement rescinding those restrictions. The board shall have
22   the discretion to refuse a license to any person or to any
23   corporation, partnership or association if such person, or any
24   officer or director of such corporation, or any member or
25   partner of such partnership or association shall have been
26   convicted or found guilty of a felony within a period of five
27   years immediately preceding the date of application for the said
28   license. The board may, in its discretion, refuse an application
29   for an economic development license under section 461(b.1) or an
30   application for an intermunicipal transfer or a license if the

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 1   board receives a protest from the governing body of the
 2   receiving municipality. The receiving municipality of an
 3   intermunicipal transfer or an economic development license under
 4   section 461(b.1) may file a protest against the approval for
 5   issuance of a license for economic development or an
 6   intermunicipal transfer of a license into its municipality, and
 7   such municipality shall have standing in a hearing to present
 8   testimony in support of or against the issuance or transfer of a
 9   license. Upon any opening in any quota, an application for a new
10   license shall only be filed with the board for a period of six
11   months following said opening.
12      (e)   Every applicant for a new or for the transfer of an
13   existing license to another premises not then licensed shall
14   post, for a period of at least thirty days beginning with the
15   day the application is filed with the board, in a conspicuous
16   place on the outside of the premises or in a window plainly
17   visible from the outside of the premises for which the license
18   is applied or at the proposed [new] previously unlicensed
19   location, a notice of such application. The notice shall
20   indicate whether the applicant is applying for the amusement
21   permit required by section 493(10). The notice shall be in such
22   form, be of such size, and contain such provisions as the board
23   may require by its regulations. Proof of the posting of such
24   notice shall be filed with the board.
25      * * *
26      Section 3.   This act shall take effect in 60 days.




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