SB 688 (Act 2024-86) Explained: New Liquor Code Regulations for Ready-to-Drink Cocktails and ID Verification

Pennsylvania has recently passed significant amendments to its Liquor Code with the enactment of SB 688 (Act 2024-86). This legislation, signed into law by Governor Josh Shapiro on July 17, 2024, introduces stricter guidelines for the sale and distribution of these beverages, especially emphasizing the prevention of underage sales through robust identity verification processes. 

For businesses in the liquor industry, this law not only alters operational procedures but also underscores the importance of reliable ID verification solutions to mitigate the risks associated with fraudulent documents and underage drinking.

Key Provisions of the New Law:

1. Definition and Licensing of Ready-to-Drink Cocktails: The legislation officially defines RTD cocktails as beverages containing distilled liquor mixed with non-alcoholic ingredients, capped at 12.5% alcohol by volume. The law requires that these drinks be sold only by license holders who obtain a specific RTD cocktail permit. This permit dictates various operational aspects, including permissible sales hours and the amount that can be sold in a single transaction.
2. Retail Sales and Distribution: The law introduces a structure where RTD cocktails can only be sold at wholesale by Pennsylvania Liquor Stores to other licensed entities and at retail by permit holders. These provisions are designed to streamline the sales process and ensure that RTD cocktails are handled responsibly, with particular attention to off-premises consumption.
3. Transaction Scan Devices for Age Verification: One of the standout features of the new law is the requirement for RTD cocktail permit holders to utilize transaction scan devices to verify the age of customers who appear to be under 35. This move is a critical step in preventing underage alcohol sales and aligns with broader efforts to modernize age verification processes across the industry.

Ensuring Compliance: The Role of Microblink’s BlinkID and BlinkID Verify

With the new emphasis on age verification, businesses across Pennsylvania will need to adopt reliable and efficient solutions to comply with these regulations beyond that of simple ID Scanning. Microblink offers a suite of advanced identity verification solutions—BlinkID and BlinkID Verify—that work together to meet these stringent compliance demands.

1. Comprehensive Age Verification: BlinkID efficiently captures and extracts data from various ID documents, while BlinkID Verify adds a critical layer of security by performing real-time checks for document authenticity. This dual approach ensures that businesses can confidently verify customer age, preventing the use of fake IDs and reducing the risk of serving minors​.
   
2. Reducing Compliance Risks: Non-compliance with SB 688 could result in severe penalties, making it essential for businesses to implement a comprehensive identity verification solution. BlinkID and BlinkID Verify together offer document capture, data extraction, classification, and verification, ensuring that every RTD cocktail sale meets the legal requirements. By performing detailed checks to detect fraudulent documents—especially those often used by minors—this solution minimizes the risk of serving alcohol to underage customers while automating the verification process to maintain high compliance standards
   
3. Enhancing Customer Experience: Compliance doesn’t have to come at the cost of customer satisfaction. Microblink’s solutions, including BlinkID and BlinkID Verify, offer fast and accurate scanning, ensuring quick transactions at the point of sale. This efficiency is particularly valuable in high-volume environments, where maintaining a smooth customer experience is crucial​
   

SB 688 (Act 2024-86) is set to change how ready-to-drink cocktails are sold and regulated in Pennsylvania, with the new rules going into effect on September 15, 2024. For businesses, compliance isn’t just a legal obligation—it’s essential to avoid severe penalties and protect against the risks of underage drinking. By integrating comprehensive identity verification solutions like Microblink’s BlinkID and BlinkID Verify, businesses can confidently meet these requirements, ensuring they only serve age-appropriate customers. These tools not only help prevent the sale of alcohol to minors but also streamline the verification process, allowing businesses to maintain efficiency without sacrificing compliance.

As the deadline approaches, it’s crucial to ensure your systems are ready to meet these new standards. We are available to help you navigate these changes and ensure your business is fully compliant.