How to Get a Liquor License in PA

Understanding Pennsylvania’s Licensing System

The PLCB regulates the sale and distribution of alcohol throughout the Commonwealth of Pennsylvania. The Board operates its own stores to dispense wine and spirits. Any business that wishes to sell alcohol has to obtain the appropriate liquor license, pay applicable fees, and comply with ongoing rules.

Each county in Pennsylvania has a limited number of each type of license that is set by quota. As a general rule, quotas are set to one license for every 3,000 citizens in the county. Each of the various types of Pennsylvania liquor licenses has its own requirements, demand, availability, and pricing. 

Understanding which type of license you need to obtain for your business will require answering a few basic questions.

Will Your Business Be Serving Food?

Selling alcohol on your business premises, as opposed to selling it for off-site consumption (see the section below for this), requires one of several licenses. Businesses that acquire one of these licenses must regularly serve “sufficient and acceptable food provisions” to 30 or more customers. These businesses must separately follow Pennsylvania health code regulations that pertain to food services.

If your business serves alcohol and food, it should obtain one of the following licenses:

Restaurant (R) Liquor License

This is the most common type of liquor license in Pennsylvania and allows an establishment that regularly serves food to also sell beer, wine, and liquor. A business must meet these requirements to obtain an R Liquor License:

• A minimum of 400 square feet
• A health license
• At least 30 seats available to customers
• Enough food and dishware for at least 30 customers

This license allows:

• Alcohol sales for consumption on the premises of the business
• Sales of alcohol from 7:00 a.m. to 2:00 a.m. the next day, Monday through Saturday
• Patrons to remain on the premises until 2:30 a.m.

Eating Place (E) Liquor License

Businesses that regularly make and serve food to patrons may obtain this license, which allows them to sell beer (malted and brewed alcoholic beverages). The requirements are slightly different than those of the R Liquor License, and include:

• A minimum of 300 square feet
• A health license
• At least 30 seats available to customers
• Enough food and dishware for at least 30 customers
• A functioning kitchen or food preparation site on the premises

The license allows:

• Beer sales for consumption on the premises of the business
• Beer sales from 7:00 a.m. to 2:00 a.m. the next day, Monday through Saturday
• Patrons to remain on the premises until 2:30 a.m.

Hotel (H) Liquor License

Hotels and other establishments that provide temporary housing for travelers often serve alcohol and food. For this reason, the H Liquor License combines aspects of the R and E Liquor Licenses, with the additional requirement of providing hotel rooms for guests. This license requires:

• A minimum of 400 square feet
• A health license
• At least 30 seats available to customers
• Enough food and dishware for at least 30 customers
• A functioning kitchen or food preparation site on the premises
• A minimum number of available hotel rooms

With an H Liquor License, the hotel can provide its guests with:

• Alcohol sales for consumption on the premises of the hotel
• Sales of alcohol from 7:00 a.m. to 2:00 a.m. the next day, Monday through Saturday

Additional Permits

R, E, and H license holders can acquire additional permits from the PLCB that grant them extended alcohol privileges. These may include:

• Sunday Sales Permit: Businesses with this permit may sell alcohol from 11:00 a.m. Sunday through 2:00 a.m. Monday.
• Wine Expanded Permit: This allows the sale of up to three liters of wine per transaction.
• Extended Hours Food Permit: Establishments with this permit may remain open past 2:30 am, but alcohol sales must still end at 2:00 am.
• Amusement Permit: This is for businesses that dispense alcohol but also wish to allow live entertainment or dancing.

State Preemption of Liquor Regulation: The Sawdey Liquor License Case

In, Sawdey Liquor License Case, 369 Pa. 19 (1951), the court case addressed whether a municipality could use a zoning ordinance to prohibit the sale of liquor in a commercial area where the underlying business (a hotel) was a permitted use.

The owners of a new hotel, constructed in an area of Erie zoned for commercial use, were prevented from operating a bar because a local ordinance prohibited the sale of alcoholic beverages as an accessory use in that zone. The hotel owners challenged the ordinance, arguing that since hotels were a permitted business, the city could not selectively prohibit a customary and integral part of that business.

The Supreme Court of Pennsylvania agreed with the hotel owners and reversed the lower court decisions. The Court held that the state legislature, through its comprehensive Liquor Control Act, had completely occupied the field of liquor regulation. Therefore, a municipality could not invade that field and regulate the business of dispensing liquor under the guise of a zoning ordinance [9.4]. The Court memorably stated, “A municipality may not in the guise of a zoning ordinance regulate the business of dispensing liquor”.

The Sawdey case is exceptionally prominent because it establishes the foundational principle of state preemption in liquor regulation. It prevents municipalities from using local zoning laws to micromanage or prohibit aspects of a state-licensed liquor business that are otherwise permitted by state law. 

Will Your Business Be Distributing Alcohol?

The sale of alcohol for off-site consumption puts a business in a distinct category of licenses compared to the R, E, and H license holders. These licenses allow their holders to remain open continuously from Monday at 2:00 a.m. to midnight Saturday. Two types of liquor licenses in Pennsylvania are available:

Distributor (D) Liquor License

Alcohol distributors that sell directly to the public need to have a D Liquor License. The business must have at least 1,000 square feet, along with accessible bathrooms for employees.

Importing Distributor (ID) Liquor License

If your business is a large alcohol distributor that sells to other distributors, rather than the public, it would likely hold this license. Warehouse operations generally obtain an ID license, which requires them to have a minimum of 2,500 square feet and bathrooms for employees.

Less Common Liquor Licenses

The above liquor licenses are the most common, but there are others for unique circumstances. Your business may wish to obtain the following:

• Limited Winery (LK) License: This license is for wineries, in- or out-of-state, that produce less than 200,000 gallons annually of alcoholic ciders, wines, meads, wine coolers, and fermented fruit beverages.
• Limited Distillery (AL) License: The AL License allows distilleries to produce up to 100,000 gallons of distilled liquor each year.
• Brewery (G) License: The G license is specifically for brewing beer (malt and brewed beverages) at the business.
• Club (C) and Catering Club (CC) Liquor License: Alcohol must be secondary to the purpose of the club or catering club, which primarily operates for the mutual benefit, entertainment, fellowship, or lawful convenience of its members.

How Does the Application Process Work to Get a Liquor License in Pennsylvania?

Pennsylvania allows businesses to obtain liquor licenses in one of four ways. A business attorney can review your establishment’s unique considerations to help you determine which of these is the most suitable for you:

• New license: The license you wish to obtain may be limited by quota, as mentioned above. New applicants should apply to the PLCB Bureau of Licensing.
• Person-to-person transfer: This is for someone with an existing license to transfer it to someone else for use at the same business (licensed premises). These transfers are only valid for changes of business ownership.
• Place-to-place transfer: An existing liquor license holder can also apply to transfer their license to a different location. This applies where there is no change in the business ownership.
• Double transfer (person-to-person and place-to-place): In this scenario, both the ownership of the business and the licensed premises will change.

How Much Does a Liquor License Cost in Pennsylvania?

The PLCB states that new liquor license fees range from $125 to $700. However, these figures can be misleading. Due to Pennsylvania’s quota system, most licenses are purchased from existing holders. The true cost can therefore range anywhere from $50,000 to over $500,000, depending on such factors as the type of license and the population of the area in which the licensed business will operate.

The PLCB will often auction off expired liquor licenses to the public. The minimum bid of $25,000 requires a surety of $5,000 or 5% of the total bid amount, whichever is higher. Bidders should be prepared to pay well above the $25,000 minimum, however. Competition for licenses in a crowded market can easily bump the total bid amount to over $100,000 in some counties.

How Long Does It Take to Get a Liquor License?

Applying for a liquor license is a process that can take several months. The PLCB will usually take 60 to 90 days to review the application and investigate the business. But approval requires additional steps. After the PLCB approves the request, the applicant will need to complete other obligations, like passing an inspection and attending a training course.

What Happens if a Business Violates the Law Regarding Alcoholic Beverages?

The regulation of liquor licenses in Pennsylvania is nothing to take lightly. Violators can expect serious penalties such as fines, suspensions, seizure of their alcohol, and revocations in some cases. Misdemeanor and even felony charges are possible depending on the severity of the violation.

Conditional licensing agreements are possible in some cases. These allow the business to pay a fine but maintain its liquor license with certain conditions. As with any agreement reached with the state, a licensee must consider the potential legal and financial ramifications of conditional licensing.

Once a business is licensed, it needs to be concerned with ongoing compliance. This is where the Pennsylvania Bureau of Liquor Control Enforcement (BLCE) comes in. The BLCE is actually a branch of the State Police and provides oversight of licensed establishments. Put simply, it is the enforcement arm of Pennsylvania’s alcohol system. 

What Happens if the BLCE Cites a Business for Distributing Alcohol to People with Fake IDs?

Officers can cite businesses for breaking the state’s liquor laws, with common infractions including:

• Serving alcohol to minors
• Visibly intoxicated patrons
• Serving alcohol after 2:00 am
• Sanitation issues, such as improper beer tap cleaning
• Bookkeeping errors

After a business is cited, the PLCB’s Office of the Administrative Law Judge (ALJ) will need to adjudicate the matter. The licensee can either admit guilt and waive appeal or request a hearing. Hearings operate like court proceedings, with counsel for the BLCE presenting evidence and witnesses related to the alleged infractions. 

The licensee can present its own evidence and witnesses, and challenge the BLCE by questioning its witnesses. Ultimately, the ALJ will make a decision that could include license revocation. The BLCE will sometimes offer to settle the matter via an Admission and Waiver, which avoids the need for a hearing. 

This is akin to a guilty plea, except that these matters are civil in nature. When both the licensee and the BLCE approve of the settlement, the ALJ will usually agree to it. 

How Can an Attorney Help Me Get an Alcohol License?

Having a Pennsylvania attorney is important not only to acquire but to keep your liquor license, comply with the law, and avoid penalties that could have major legal and financial repercussions for your business. AttorneyX can assist you with:

• Reviewing your business for health and safety issues before the license application
• Liquor license application and renewal
• Obtaining additional permits for your license
• License transfers, whether you are the licensee or the transferee
• Understanding Pennsylvania liquor laws and regulations
• Helping you comply with the law and remain up to date with important changes
• Defending your license and resolving citations in your favor

Contact AttorneyX for Help with Obtaining Your Pennsylvania Liquor License

We are proud to provide comprehensive legal services to businesses seeking to apply for, maintain, transfer, and protect their liquor licenses. Find out how we can represent your organization before the PLCB and assist with all legal matters so you can focus on making your business a success. Contact AttorneyX today to learn more and get started.