Liquor Code Changes Pass Pennsylvania Legislature
Governor Josh Shapiro has two big liquor bills sitting on his desk after just signing the budget deal. Senate Bill 688 (“SB 688”) and House Bill 829 (“HB 829”) are expected to be signed and will continue Pennsylvania’s path toward increased consumer convenience.
SB 688 is the most significant as it now allows ready-to-drink (“RTD”) cocktails up to 12.5% ABV to be sold by retailers. Similar in the way wine is now available in retail outlets, RTDs will be available outside of the exclusive Pennsylvania State Store system. Unlike wine retail permits, beer distributors can partake in this reform and sell RTDs.
Retailers may now sell individual RTD cocktails, if the can or bottle does not exceed 16 ounces. Consumers can take the RTD cocktail off premises in total quantities of 192 ounces for restaurant and hotel licenses similar to Pennsylvania’s 2 6-pack of beer rule. Beer distributors can sell in unlimited quantities. All retailers must become RAMP-certified, and each transaction must be age-gated with an identification scanner by the retailer.
Retailers may purchase RTD’s from the State Store wholesale system. The State Store retail system will continue to sell RTDs. Also, retailers are allowed to purchase RTDs directly from Pennsylvania manufacturers. Pennsylvania manufacturers will now have to file quarterly written reports with the Pennsylvania Liquor Control Board (“PLCB”) regarding the volume of their sales of RTDs.
Pennsylvania HB 829 is what is referred to as an omnibus bill, a little bit of everything for everyone. The number of happy hours per week has increased from 14 to 24 and the temporary outdoor permits created during the COVID-19 pandemic are permanently extended. However, the licensee will have to renew those permits annually for the outside areas to remain licensed. Pennsylvania brewers and distillers can now sell after midnight on New Year’s Eve (Dec. 31 into Jan. 1) and one other night per year upon application. There were some modifications to the complicated conflicting interest rules to allow the owner of the retail license to work at a manufacturer; however, there is much more reform that needs to be continued in this area. Lastly, the Pennsylvania distillery industry got a boost with the formation of a promotional board with a $1 million annual budget.
All in all, this is a big win for consumers who want to enjoy expanded access to RTDs, extended happy hour discounts, and more access to Pennsylvania craft beverages in the state which is one of the leaders in the country of craft manufacturing. These new laws will go into effect sixty days after Governor Shapiro’s signature.
For information about national and state liquor law matters or general manufacturing and distribution advice, please contact our Liquor Law, Licensing, Manufacturing, and Distribution Practice Group: Liquor Law Department Chair Theodore J. Zeller III, Esquire; David C. Berger, Esquire, for Pennsylvania and New Jersey retail and manufacturing licensing; Anthony M. Brichta, Esquire, for federal manufacturing, distribution, formula, and labeling issues; or contact our office at (610) 391-1800.