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'S NO. 1697
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
AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 13, 2025
AN ACT
Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
act relating to alcoholic liquors, alcohol and malt and
brewed beverages; amending, revising, consolidating and
changing the laws relating thereto; regulating and
restricting the manufacture, purchase, sale, possession,
consumption, importation, transportation, furnishing, holding
in bond, holding in storage, traffic in and use of alcoholic
liquors, alcohol and malt and brewed beverages and the
persons engaged or employed therein; defining the powers and
duties of the Pennsylvania Liquor Control Board; providing
for the establishment and operation of State liquor stores,
for the payment of certain license fees to the respective
municipalities and townships, for the abatement of certain
nuisances and, in certain cases, for search and seizure
without warrant; prescribing penalties and forfeitures;
providing for local option, and repealing existing laws," in
preliminary provisions, further providing for definitions;
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
No.21), known as the Liquor Code, is amended by adding a
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definition to read:
Section 102. Definitions.--The following words or phrases,
unless the context clearly indicates otherwise, shall have the
meanings ascribed to them in this section:
* * *
"Previously unlicensed location" shall mean a location that:
(1) has never held a retail liquor license, importing
distributor license or distributor license; or
(2) previously held a retail liquor license, importing
distributor license or distributor license which was not used
for a subsequent non-license-related purpose for a period of at
least three years. 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.
* * *
Section 2. Sections 402(a) and (b), 404(a), 431(b) and
432(d) and (e) of the act are amended to read:
Section 402. License Districts; License Period; Hearings.--
(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] previously unlicensed location, upon the request of any
person with standing to testify under subsection (b) if the
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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.
(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] previously unlicensed 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.
* * *
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
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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] previously
unlicensed 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] previously unlicensed
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
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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] previously unlicensed 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,
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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.
* * *
Section 431. Malt and Brewed Beverages Manufacturers',
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. 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] previously
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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
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 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] previously unlicensed 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
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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
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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
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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
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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.
* * *
Section 432. 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
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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
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] previously unlicensed 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
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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.
(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] previously unlicensed
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
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notice shall be filed with the board.
* * *
Section 3. This act shall take effect in 60 days.
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