Section 4-446 - 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).(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 a manufacturer 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 produced by another manufacturer and liquor must be consumed at the licensed premises. In addition, the combined sales of wine, malt or brewed beverages produced by another manufacturer and liquor may not, on a yearly basis, exceed fifty per centum (50%) of the on-premises sales of the brewery's own malt or brewed beverages for 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 produced by another manufacturer and liquor may not, on a yearly basis, exceed fifty per centum (50%) of the on-premises sales of the brewery's own malt or brewed beverages for that year.(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.(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.(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;(3) each catered function shall last no longer than one day and not more than fifty-two catered functions may be held each calendar year by each license holder for use with a particular license;(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) 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 ;(10) 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: (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);(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 five 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;(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 99-114, 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.(c)(1) Holders of a brewery license may obtain a special permit to participate in malt or brewed beverages and food expositions off the licensed premises. A special permit shall be issued upon proper application and payment of a fee of thirty dollars ($30) per day for each day of permitted use, not to exceed thirty consecutive days. The total number of days for all the special permits may not exceed one hundred days in any calendar year. A special permit shall entitle the holder to engage in the sale by the glass, growler, bottle or package not to exceed one hundred ninety-two fluid ounces in a single sale of malt or brewed beverages produced by the permittee under the authority of its brewery license. Holders of special permits may provide tasting samples of malt or brewed beverages in individual portions not to exceed four fluid ounces. Samples at malt or brewed beverages and food expositions may be sold or offered free of charge. Except as provided herein, breweries utilizing special permits shall be governed by all applicable provisions of this act as well as by all applicable regulations or conditions adopted by the board. For purposes of this paragraph, "malt or brewed beverages and food expositions" are defined as affairs held indoors or outdoors with the intent of educating those in attendance of the availability, nature and quality of malt or brewed beverages in conjunction with suitable food displays, demonstrations and sales. Malt or brewed beverages and food expositions may also include activities other than malt or brewed beverages and food displays, including arts and crafts, musical activities, cultural exhibits, agricultural exhibits and farmers markets.(2) The holder of a brewery license may, at the discretion of the board, obtain a farmers market permit. The permit shall entitle the holder to participate in more than one farmers market at any given time and an unlimited number throughout the year and sell malt or brewed beverages produced under the authority of the underlying brewery license by the growler, bottle or package not to exceed one hundred ninety-two fluidounces in a single sale. Samples not to exceed four fluid ounces per brand of malt or brewed beverages may be offered free of charge. A farmers market permit shall be issued upon proper application and payment of an annual fee of two hundred fifty dollars ($250). A permit holder may participate in more than one farmers market at any given time. Sales by permit holders shall take place during the standard hours of operation of the farmers market. Written notice of the date, times and location the permit is to be used shall be provided by the permit holder to the enforcement bureau at least two (2) weeks prior to the event. Except as provided in this subsection, breweries utilizing farmers market permits shall be governed by all applicable provisions of this act as well as by all applicable regulations adopted by the board. The term "farmers market" as used in this section shall include any building, structure or other place:
(i) owned, leased or otherwise in the possession of a person, municipal corporation or public or private organization;(ii) used or intended to be used by two or more farmers or an association of farmers, who are certified by the Department of Agriculture to participate in the farmers market nutrition program subject to 7 CFR Pt. 249 (relating to senior farmers' market nutrition program (SFMNP)), for the purpose of selling agricultural commodities produced in this Commonwealth directly to consumers;(iii) which is physically located within this Common wealth; and(iv) which is not open for business more than twelve hours each day.(3) These permits shall only be available to a brewery that qualifies as a manufacturer as authorized under section 431(a) and may be used anywhere in Pennsylvania regardless of whether the manufacturer has named or constituted a distributor or importing distributor as a primary or original supplier of the product under section 431(b). Only malt or brewed beverages for which the brewery is responsible for paying the malt beverage tax shall be considered in calculating the total number of barrels produced each year. All brands of malt or brewed beverages sold or provided under the authority of the special permit as well as the farmers market permit must be registered as set forth by this act. The term "growler" as used in this section shall mean a refillable container that holds a minimum of sixty-four fluid ounces of malt or brewed beverages.
Amended by P.L. TBD 2022 No. 67, § 1, eff. 7/11/2022.Amended by P.L. TBD 2019 No. 45, § 4, eff. 8/31/2019.Amended by P.L. TBD 2017 No. 75, § 3, eff. 12/22/2017.Amended by P.L. TBD 2016 No. 166, § 11, eff. 1/14/2017.Amended by P.L. TBD 2016 No. 39, § 14, eff. 8/7/2016.Amended by P.L. 1007 2012 No. 116, § 6, eff. 9/3/2012.1951, April 12, P.L. 90, No. 21, § 446, added 1987, June 29, P.L. 32, No. 14, § 58, effective July 1, 1987. Amended 1992, June 30, P.L. 327, No. 66, § 5, imd. effective; 1996, May 31, P.L. 312, No. 49, § 13, imd. effective; 1998, Feb. 18, P.L. 162, No. 25, § 4, imd. effective; 1999, Nov. 10, P.L. 514, No. 47, § 6, imd. effective; 2006, Jan. 6, P.L. 1, No. 1, § 3, imd. effective; 2011, Dec. 22, P.L. 530, No. 113, § 12, effective in 60 days [Feb. 21, 2012].