Section 5-505.4 - Limited Distilleries and Distilleries(a) The board may issue a distillery of historical significance license to any distillery which was established prior to January 1, 1875. The holder of the license may manufacture and sell liquor produced on the licensed premises to the board, to entities licensed by the board and to the public under such conditions and regulations as the board may enforce. Production at the distillery of historical significance shall be limited to an amount not to exceed twenty thousand (20,000) gallons per year. The distillery does not need to establish continuous operation since January 1, 1875, in order to qualify for a license under this section.(b)(i) Except as otherwise provided, the board may issue a limited distillery license that will allow the holder thereof to operate a distillery that shall not exceed production of one hundred thousand (100,000) gallons of distilled liquor per year. The holder of the license may manufacture and sell bottled liquors produced on the licensed premises to the board, to entities licensed by the board and to the public between the hours of nine o'clock antemeridian and twelve o'clock antemeridian Monday through Saturday and Sunday between the hours of nine o'clock antemeridian through eleven o'clock postmeridian so long as a specific code of distilled liquor which is listed for sale as a stock item by the board in State liquor stores may not be offered for sale at a licensed limited distillery location at a price which is lower than that charged by the board and under such conditions and regulations as the board may enforce. The holder of a limited distillery license may not sell a product or a substantially similar product which is listed for sale as a stock item by the board in State liquor stores to a licensee at a price which is lower than that charged by the board and under such conditions and regulations as the board may enforce. The holder of a limited distillery license may also sell wine, alcoholic cider and fermented fruit beverages produced by a licensed limited winery, liquor produced by a licensed distillery or limited distillery and malt or brewed beverages produced by a licensed brewery for on-premises consumption. The combined sales of wine, malt or brewed beverages and liquor produced by another licensed distillery or limited distillery may not, on a yearly basis, exceed fifty per centum of the on-premises sales of the limited distillery's own sales of liquor for the preceding calendar year: However, if a limited distillery did not operate for an entire calendar year during the preceding year, then its combined sales of wine, malt or brewed beverages and liquor produced by another licensed distillery or limited distillery may not, on a yearly basis, exceed fifty per centum of the on-premises sales of the limited distillery's own liquor for that year.(ii) A limited distillery may operate extended hours on December 31 of each calendar year until two o'clock antemeridian January 1 of the following calendar year.(iii) The board may issue an extended hours permit permitting the holder of a limited distillery license to remain open and sell alcohol until two o'clock antemeridian the following calendar day. Following a fifty-dollar ($50) fee, a holder of a limited distillery license must submit a written application for an extended hours permit under this subclause to the board in a form prescribed by the board. The following shall apply: (A) Only one extended hours permit may be issued to a holder of a limited distillery license per calendar year and may only be used for one day in that calendar year at all of the holder of a limited distillery license's locations.(B) The holder of a limited distillery license shall provide written notice to the local police department, or Pennsylvania State Police if no local police department is available, at least forty-eight hours prior to each use of the extended hours permit. Written notice shall include notifying the police of the date, time and place of the extended sale of alcoholic beverages.(2)(i) The holder of a limited distillery license may, separately or in conjunction with other limited distillery licensees, sell bottled liquors produced by the distillery at no more than five (5) board-approved locations other than the licensed premises, with no bottling or production requirement at those additional board-approved locations and under such conditions and regulations as the board may enforce to the board, to individuals and to entities licensed by the board.(ii) If two (2) or more limited distilleries apply to operate an additional board-approved location in conjunction with each other, the distilleries need only have one (1) board-approved manager for the location, need only pay one application fee and need not designate specific or distinct areas for each distillery's licensed area. A limited distillery must file an application for the additional board-approved location, and that location shall count as one (1) of the five (5) permitted for each limited distillery. A limited distillery is responsible for keeping only its own complete records. A limited distillery may be cited for a violation of the recordkeeping requirements of sections 512 and 513 pertaining to its own records only.(3) The holder of a limited distillery license may 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 limited distillery on the licensed distillery 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.(4) The holder of a limited distillery license may sell food for consumption on or off the licensed premises and at the limited distillery's additional board-approved locations, and may sell by the glass, at the licensed premises and at the limited distillery's additional board-approved locations, only liquor that may otherwise be sold by the bottle.(5) The holder of a limited distillery license may provide tasting samples of liquor that in total do not exceed one and one-half (1.5) fluid ounces per person on the licensed premises and at the two (2) board-approved locations. Samples may be sold or provided free of charge and may only be provided between the hours of nine o'clock antemeridian and twelve o'clock antemeridian Monday through Saturday and Sunday between the hours of nine o'clock antemeridian through eleven o'clock postmeridian.(6) The fee for the limited distillery license shall be in an amount to be determined by the board but shall not exceed one thousand five hundred dollars ($1,500).(7) The board may issue to the holder of a distillery license a limited distillery license in exchange for the distillery license provided that the applicant has not manufactured more than one hundred thousand (100,000) gallons of distilled liquor in the prior calendar year. The board may not charge a fee for this exchange. An applicant under this subsection shall surrender his distillery license for cancellation prior to the issuance of the new limited distillery license. The authority of the board to exchange a distillery license for a limited distillery license under this subsection and this subsection shall expire December 31, 2012.(8) At the discretion of the board the holder of a limited distillery license may obtain a special permit to participate in liquor 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 (30) consecutive days. The total number of days for all the special permits may not exceed one hundred (100) days in any calendar year. A special permit shall entitle the holder to engage in the sale by the glass, by the bottle or in case lots of liquor produced by the permittee under the authority of a limited distillery license. Holders of special permits may provide tasting samples of liquor in individual portions not to exceed one and one-half (1.5) fluid ounces. Samples at liquor and food expositions may be sold or offered free of charge. Except as provided in this clause, limited distilleries 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 the purposes of this clause, "liquor and food expositions" are defined as affairs held indoors or outdoors with the intent of promoting Pennsylvania products by educating those in attendance of the availability, nature and quality of Pennsylvania-produced liquors in conjunction with suitable food displays, demonstrations and sales. Liquor and food expositions may also include activities other than liquor and food displays, including arts and crafts, musical activities, cultural exhibits, agricultural exhibits and farmers markets. (9) At the discretion of the board, the holder of a limited distillery license may obtain a farmers market permit. The permit shall entitle the holder to participate in more than one (1) farmers market at any given time and an unlimited number throughout the year and sell liquor produced under the authority of the underlying limited distillery license by the bottle or in case lots. Samples not to exceed one and one-half (1.5) fluid ounces per brand of liquor 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 (1) 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, limited distilleries 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.(c)(1)(i) Except as otherwise provided, the holder of a distillery license as issued under section 505 may sell bottled liquors produced on the licensed premises to the board, to entities licensed by the board and to the public between the hours of nine o'clock antemeridian and twelve o'clock antemeridian Monday through Saturday and Sunday between the hours of nine o'clock antemeridian through eleven o'clock postmeridian so long as a specific code of distilled liquor which is listed for sale as a stock item by the board in State liquor stores may not be offered for sale at a licensed distillery location at a price which is lower than that charged by the board and under such conditions and regulations as the board may enforce. The holder of a distillery license may not sell a product or a substantially similar product which is listed for sale as a stock item by the board in State liquor stores to a licensee at a price which is lower than that charged by the board and under such conditions and regulations as the board may enforce. The holder of a distillery license may also sell its liquor, wine, alcoholic cider and fermented fruit beverages produced by a licensed limited winery, liquor produced by a licensed distillery or limited distillery and malt or brewed beverages produced by a licensed brewery for on-premises consumption. The combined sales of wine, malt or brewed beverages and liquor produced by another licensed distillery or limited distillery may not, on a yearly basis, exceed fifty per centum of the on-premises sales of the distillery's own sales of liquor for the preceding calendar year: However, if a distillery did not operate for an entire calendar year during the preceding year, then its combined sales of wine, malt or brewed beverages and liquor produced by another licensed distillery or limited distillery may not, on a yearly basis, exceed fifty per centum of the on-premises sales of the distillery's own liquor for that year.(ii) A distillery may operate extended hours on December 31 of each calendar year until two o'clock antemeridian January 1 of the following calendar year.(iii) The board may issue an extended hours permit permitting the holder of a distillery license to remain open and sell alcohol until two o'clock antemeridian the following calendar day. Following a fifty-dollar ($50) fee, a holder of a distillery license must submit a written application for an extended hours permit under this subclause to the board in a form prescribed by the board. The following shall apply: (A) Only one extended hours permit may be issued to a holder of a distillery license per calendar year and may only be used for one day in that calendar year at all of the holder of a distillery license's locations.(B) The holder of a distillery license shall provide written notice to the local police department, or Pennsylvania State Police if no local police department is available, at least forty-eight hours prior to each use of the extended hours permit. Written notice shall include notifying the police of the date, time and place of the extended sale of alcoholic beverages.(2) The holder of a distillery license as issued under section 505 may provide tasting samples of liquor that in total do not exceed one and one-half (1.5) fluid ounces. Samples may be sold or provided free of charge between the hours of nine o'clock antemeridian and twelve o'clock antemeridian Monday through Saturday and Sunday between the hours of nine o'clock antemeridian through eleven o'clock postmeridian.(d) An entity that meets the definition of a "licensed Pennsylvania manufacturer" under section 415.1(I) must, upon request, offer to sell to the board any ready-to-drink cocktail the licensed Pennsylvania manufacturer sells. (e) An entity that meets the definition of a "licensed Pennsylvania manufacturer" under section 415.1(I) that sells ready-to-drink cocktails to licensees that hold a ready-to-drink cocktail permit shall report quarterly in writing to the board the following: (I) The quantity of product sold to each permittee.(II) The purchase price to permittees.(III) The name or brand of the product sold.Amended by P.L. (number not assigned at time of publication) 2024 No. 86,§ 9, eff. 9/16/2024.Amended by P.L. (number not assigned at time of publication) 2024 No. 57,§ 11, eff. 9/13/2024.Amended by P.L. TBD 2019 No. 86, § 4.2, eff. 11/21/2019.Amended by P.L. TBD 2019 No. 45, § 6, eff. 8/31/2019.Amended by P.L. TBD 2016 No. 166, § 15, eff. 1/14/2017.Amended by P.L. TBD 2016 No. 39, § 26, eff. 8/7/2016.1951, April 12, P.L. 90, art. V, § 505.4, added 2004, Dec. 8, P.L. 1810, No. 239, § 11, effective 2/7/2005. Amended 2011, Dec. 22, P.L. 530, No. 113, §21, effective in 60 days [ 2/21/2012].