Pennsylvania is the second-largest craft beer-producing state. The state is home to over 500 breweries that generate over $5 billion in economic impact per year. Despite the high number of brewers, it’s quite challenging to operate in the alcohol industry. You need to have the appropriate documentation at both the state and federal levels, and any slip-ups can delay the opening of a brewery for months. So here are 10 of the most important compliance tasks for breweries in Pennsylvania:
1. File Your TTB Brewer’s Notice
All beer must be legally brewed after you have been approved by the federal Alcohol and Tobacco Tax and Trade Bureau. These filings are part of an interlocking regulatory process where several requirements must be met and can be a weeks- or months-long process. Therefore, it makes sense to work with a compliance lawyer to make sure each agency is handled correctly.
2. Secure Your PLCB Brewery License
You must obtain a Manufacturing “G” license from the Pennsylvania Liquor Control Board. To get it right, know the types of licenses and the restrictive zoning requirements before construction begins. A detailed guide to building a brewery in PA can help you plan the sequence, because the state review often runs around six months, and a late or incomplete filing could set your operation back by half a year.
3. Set Up Excise Tax and Bonding
The federal excise levy for small brewers is $3.50 per barrel, with the first 60,000 barrels of beer being excused taxes. Most new breweries are being exempted from the bond requirement of old (under $50,000 in annual excise tax).
4. Complete RAMP Training
Pennsylvania’s Responsible Alcohol Management Program trains staff to serve alcohol responsibly. Importantly for breweries, it helps protect you under the state’s dram shop liability law.
5. Get COLA Label Approvals
Beer packaged and shipped out of state must be accompanied by a Certificate of Label Approval (COLA) issued by the TTB, and must have approval in place before labels can be printed and product distributed.
6. Obtain Wastewater and Stormwater Permits
Brewery wastewater is far stronger than anything that comes from a household, and managing these brewery issues means you can’t just send it into the municipal system. The state’s DEP may require a discharge permit.
7. Build Your OSHA Safety Programs
Breweries are full of hazards. Brewers need to work in confined spaces with heavy equipment. Hazard communication and monitoring plans need to be ready from day one.
8. Meet ADA Accessibility Standards
A public taproom is considered a place of public accommodation and thus MUST comply with the 2010 ADA Standards by having accessible routes throughout and accessible entrances and restroom facilities.
9. Nail Down Wage and Tip Rules
Taproom staff fall under federal and state wage law, with Pennsylvania’s minimum at $7.25 and a tipped cash wage of $2.83 before tips make up the difference. Make sure your business plan accounts for the minimum wage. New employees should also understand how their wages and tips work.
10. Cover Music Licensing
Playing recorded or live music in your taproom requires public performance licenses from bodies such as ASCAP and BMI. These bodies can take action against breweries that lack proper licensing. No one wants to drink in a silent room, so make sure your licenses are in order.
Before You Open
Opening a brewery in Pennsylvania takes passion, and many PA breweries will tell you that you’ll need plenty of it to get through the paperwork. Line up these federal and state approvals early and work through them. Play by the rules; if they get complicated, cooperate with professionals. Be compliant from the get-go, and then it’s time to concentrate on what really counts: good beer to drink! If you’re interested in learning more about similar topics, see our article archives.
