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| PRIOR PRINTER'S NOS. 64, 638 | PRINTER'S NO. 996 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY EARLL, JANUARY 29, 2009 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, MAY 5, 2009 |
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| AN ACT |
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1 | Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as |
2 | reenacted, "An act relating to alcoholic liquors, alcohol and |
3 | malt and brewed beverages; amending, revising, consolidating |
4 | and changing the laws relating thereto; regulating and |
5 | restricting the manufacture, purchase, sale, possession, |
6 | consumption, importation, transportation, furnishing, holding |
7 | in bond, holding in storage, traffic in and use of alcoholic |
8 | liquors, alcohol and malt and brewed beverages and the |
9 | persons engaged or employed therein; defining the powers and |
10 | duties of the Pennsylvania Liquor Control Board; providing |
11 | for the establishment and operation of State liquor stores, |
12 | for the payment of certain license fees to the respective |
13 | municipalities and townships, for the abatement of certain |
14 | nuisances and, in certain cases, for search and seizure |
15 | without warrant; prescribing penalties and forfeitures; |
16 | providing for local option, and repealing existing laws," |
17 | further defining for the definition of "eligible entity" and |
18 | adding definitions; further providing for general powers of |
19 | the board, for wine marketing and for Sunday retail sales by |
20 | Pennsylvania Liquor Stores; and, in licenses and regulations |
21 | relating to liquor, alcohol and malt and brewed beverages, |
22 | further providing for interlocking businesses prohibited, for |
23 | number and kinds of licenses allowed same licensee and for |
24 | unlawful acts relative to liquor, malt and brewed beverages |
25 | and licenses issued. |
26 | The General Assembly of the Commonwealth of Pennsylvania |
27 | hereby enacts as follows: |
28 | Section 1. The definition of "eligible entity" in section |
29 | 102 of the act of April 12, 1951 (P.L.90, No.21), known as the |
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1 | Liquor Code, reenacted and amended June 29, 1987 (P.L.32, |
2 | No.14), and amended November 29, 2006 (P.L.1421, No.155), is |
3 | amended and the section is amended by adding definitions to |
4 | read: |
5 | Section 102. Definitions.--The following words or phrases, |
6 | unless the context clearly indicates otherwise, shall have the |
7 | meanings ascribed to them in this section: |
8 | * * * |
9 | "Eligible entity" shall mean a city of the third class, a |
10 | hospital, a church, a synagogue, a volunteer fire company, a |
11 | volunteer ambulance company, a volunteer rescue squad, a unit of |
12 | a nationally chartered club which has been issued a club liquor |
13 | license, a club in a city of the third class which has been |
14 | issued a club liquor license and which, as of December 31, 2002, |
15 | has been in existence for at least 100 years, a library, a |
16 | nationally accredited Pennsylvania nonprofit zoological |
17 | institution licensed by the United States Department of |
18 | Agriculture, a nonprofit agricultural association in existence |
19 | for at least ten years, a bona fide sportsmen's club in |
20 | existence for at least ten years, a nationally chartered |
21 | veterans' organization and any affiliated lodge or subdivision |
22 | of such organization, a fraternal benefit society that is |
23 | licensed to do business in this Commonwealth and any affiliated |
24 | lodge or subdivision of such fraternal benefit society, a museum |
25 | operated by a nonprofit corporation in a city of the third class |
26 | or township of the first class, a nonprofit corporation engaged |
27 | in the performing arts in a city of the third class, borough or |
28 | in an incorporated town, an arts council, a nonprofit |
29 | corporation that operates an arts facility or museum in a city |
30 | of the third class in the county of the fourth class, a |
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1 | nonprofit organization as defined under section 501(c)(3) of the |
2 | Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § |
3 | 501(c)(3)) whose purpose is to protect the architectural |
4 | heritage of boroughs and which has been recognized as such by a |
5 | municipal resolution, a nonprofit organization as defined under |
6 | section 501(c)(3) of the Internal Revenue Code of 1986 (Public |
7 | Law 99-514, 26 U.S.C. § 501(c)(3)) conducting a regatta in a |
8 | city of the second class with the permit to be used on State |
9 | park grounds or conducting a family-oriented celebration as part |
10 | of Welcome America in a city of the first class on property |
11 | leased from that city for more than fifty years, a nonprofit |
12 | organization as defined under section 501(c)(3) of the Internal |
13 | Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to |
14 | raise funds for the research and treatment of cystic fibrosis, a |
15 | nonprofit organization as defined under section 501(c)(3) of the |
16 | Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose |
17 | purpose is to educate the public on issues dealing with |
18 | watershed conservation, a nonprofit organization as defined |
19 | under section 501(c)(3) of the Internal Revenue Code of 1986 |
20 | (Public Law 99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to |
21 | provide equine assisted activities for children and adults with |
22 | special needs, a nonprofit economic development agency in a city |
23 | of the second class with the primary function to serve as an |
24 | economic generator for the greater southwestern Pennsylvania |
25 | region by attracting and supporting film, television and related |
26 | media industry projects and coordinating government and business |
27 | offices in support of a production, a county tourist promotion |
28 | agency as defined in section 3(1) of the act of April 28, 1961 |
29 | (P.L.111, No.50), known as the "Tourist Promotion Law," and |
30 | located in a city of the third class in a county of the fourth |
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1 | class or located in a township of the second class in a county |
2 | of the fifth class, a junior league in a third class county that |
3 | is a nonprofit organization as defined under section 501(c)(3) |
4 | of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) |
5 | that is comprised of women whose purpose is exclusively |
6 | educational and charitable in promoting the volunteerism of |
7 | women and developing and participating in community projects and |
8 | that has been in existence for over seventy years, a nonprofit |
9 | organization as defined under section 501(c)(3) of the Internal |
10 | Code of 1986 which is located in counties of the second class A |
11 | and of the third class and whose purpose is the education and |
12 | promotion of American history or a nonprofit organization as |
13 | defined under section [501(C)(6)] 501(c)(6) of the Internal |
14 | Revenue Code of 1986 which is located in a city of the third |
15 | class in a county of the third class and whose purpose is to |
16 | support business and industry. |
17 | * * * |
18 | "Satellite wine store" shall mean a wine kiosk operated by |
19 | the Pennsylvania Liquor Control Board, together with the space |
20 | in which it is located. |
21 | * * * |
22 | "Wine kiosk" shall mean an automated, self-service, bottled | <-- |
23 | wine kiosk operated by the Pennsylvania Liquor Control Board. |
24 | * * * |
25 | Section 2. Section 207 of the act is amended by adding a |
26 | subsection to read: |
27 | Section 207. General Powers of Board.--Under this act, the |
28 | board shall have the power and its duty shall be: |
29 | * * * |
30 | (l) To establish and implement a customer relations |
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1 | marketing program for the purpose of offering incentives, such |
2 | as coupons or discounts on certain products, to customers of the |
3 | board. |
4 | Section 3. Section 215 of the act, amended December 30, 2003 |
5 | (P.L.423, No.59), is amended to read: |
6 | Section 215. Wine and Spirits Marketing.-- |
7 | (e) The board is authorized to participate in or sponsor |
8 | wine and spirits events for the purpose of educating consumers |
9 | as to the wines and spirits available in this Commonwealth. The |
10 | wine and spirits to be used for the event may be acquired |
11 | through the State store system or may be donated from outside |
12 | this Commonwealth. Participation in the tastings may be |
13 | conditioned on the purchase of a ticket to the event. The event |
14 | may include events occurring on premises licensed by the board, |
15 | and the board may sell wine and spirits for off-premises |
16 | consumption in an area designated by the board for such sale. |
17 | Section 4. Section 304 of the act, amended December 8, 2004 |
18 | (P.L.1810, No.239), is amended to read: |
19 | Section 304. When Sales May Be Made at Pennsylvania Liquor |
20 | Stores.--(a) Except as provided for in subsection (b), every |
21 | Pennsylvania Liquor Store shall be open for business week days, |
22 | except holidays as that term is defined in section 102. The |
23 | board may, with the approval of the Governor, temporarily close |
24 | any store in any municipality. |
25 | (b) Certain Pennsylvania Liquor Stores operated by the board |
26 | shall be open for Sunday retail sales between the hours of noon |
27 | and five o'clock postmeridian, except that no Sunday sales shall |
28 | occur on Easter Sunday or Christmas day. The board shall open up |
29 | to twenty-five per centum of the total number of Pennsylvania |
30 | Liquor Stores, excluding any store designated as a satellite | <-- |
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1 | wine store in which a wine kiosk is utilized, at its discretion |
2 | for Sunday sales as provided for in this subsection. The twenty- | <-- |
3 | five per centum limitation shall not apply to the board's |
4 | operation of satellite wine kiosks. The board shall submit |
5 | yearly reports to the Appropriations and the Law and Justice |
6 | Committees of the Senate and the Appropriations and the Liquor |
7 | Control Committees of the House of Representatives summarizing |
8 | the total dollar value of sales under this section. |
9 | Section 5. Sections 411(e) and 438(c) of the act are amended |
10 | to read: |
11 | Section 411. Interlocking Business Prohibited.--* * * |
12 | (e) Except as herein provided, no hotel, restaurant, retail |
13 | dispenser or club licensee, and no officer, director or |
14 | stockholder, agent or employe of any such licensee shall in any |
15 | wise be interested, directly or indirectly, in the ownership or |
16 | leasehold of any property or the equipment of any property or |
17 | any mortgage lien against the same, used by a distributor, |
18 | importing distributor, or by an importer or sacramental wine |
19 | licensee, in the conduct of his business; nor shall any hotel, |
20 | restaurant, retail dispenser or club licensee, or any officer, |
21 | director, stockholder, agent or employe of any such licensee, |
22 | either directly or indirectly, lend any moneys, credit, or give |
23 | anything of value or the equivalent thereof, to any distributor, |
24 | importing distributor, importer or sacramental wine licensee, |
25 | for equipping, fitting out, or maintaining and conducting, |
26 | either in whole or in part, an establishment used in the conduct |
27 | of his business. |
28 | The purpose of this section is to require a separation of the |
29 | financial and business interests between manufacturers and |
30 | holders of hotel or restaurant liquor licenses and, as herein |
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1 | provided, of club licenses, issued under this article, and no |
2 | person shall, by any device whatsoever, directly or indirectly, |
3 | evade the provisions of the section. But in view of existing |
4 | economic conditions, nothing contained in this section shall be |
5 | construed to prohibit the ownership of property or conflicting |
6 | interest by a manufacturer of any place occupied by a licensee |
7 | under this article after the manufacturer has continuously owned |
8 | and had a conflicting interest in such place for a period of at |
9 | least five years prior to July eighteenth, one thousand nine |
10 | hundred thirty-five: Provided, however, That this clause shall |
11 | not prohibit any hotel, restaurant or club liquor licensee from |
12 | owning land which is leased to, and the buildings thereon owned |
13 | by, a holder of a retail dispenser's license; and nothing in |
14 | this clause shall prevent the issuance of a retail dispenser's |
15 | license to a lessee of such lands who owns the buildings |
16 | thereon: And, provided further, That nothing contained in this |
17 | section shall be construed to prohibit any hotel, restaurant, |
18 | retail dispenser or club licensee or any officer, director or |
19 | stockholder, agent or employe of any such licensee from having a |
20 | financial or other interest, directly or indirectly in the |
21 | ownership or leasehold of any property or the equipment of any |
22 | property or any mortgage lien against same, used, leased by an |
23 | importer or sacramental wine licensee for the exclusive purpose |
24 | of maintaining commercial offices and on the condition that said |
25 | property is not used for the storage or sale of liquor or malt |
26 | or brewed beverages in any quantity[.]: And, provided further, |
27 | That nothing contained in this section shall be construed to |
28 | prohibit a member of the governing board of a public authority |
29 | created under subdivision (n) of Article XXIII of the act of |
30 | August 9, 1955 (P.L.323, No.130), known as "The County Code," |
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1 | from having an interest in a distributor or importing |
2 | distributor license notwithstanding the fact that the public |
3 | authority has an interest in one or more retail licenses or acts |
4 | as a landlord for one or more retail licenses: And, provided |
5 | further, That notwithstanding any other provision of this |
6 | section, an entity may acquire both a manufacturer's license or |
7 | a limited winery license and a hotel, restaurant or retail |
8 | dispenser license for use at the same location and more than one |
9 | location may be so licensed. The licenses and a person's |
10 | interest in the licenses or in the entity holding the licenses |
11 | shall not be subject to this section. |
12 | Section 438. Number and Kinds of Licenses Allowed Same |
13 | Licensee.--* * * |
14 | (c) No person shall possess more than one class of license, |
15 | except that a holder of a retail dispenser's license may also be |
16 | a holder of a retail liquor license[.]: Provided, however, That |
17 | nothing contained in this section shall be construed to prohibit |
18 | a member of the governing board of a public authority created |
19 | under subdivision (n) of Article XXIII of the act of August 9, |
20 | 1955 (P.L.323, No.130), known as "The County Code," from having |
21 | an interest in a distributor or importing distributor license |
22 | notwithstanding the fact that the public authority has an |
23 | interest in one or more retail licenses or acts as a landlord |
24 | for one or more retail licenses: And, provided further, That |
25 | notwithstanding any other provision of this section, an entity |
26 | may acquire both a manufacturer's license or a limited winery |
27 | license and a hotel, restaurant or retail dispenser license for |
28 | use at the same location and more than one location may be so |
29 | licensed. The licenses and a person's interest in the licenses |
30 | or in the entity holding the licenses shall not be subject to |
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1 | this section. |
2 | Section 6. Section 443(g) of the act, amended May 31, 1996 |
3 | (P.L.312, No.49), is amended to read: |
4 | Section 443. Interlocking Business Prohibited.--* * * |
5 | (g) The purpose of this section is to require a separation |
6 | of the financial and business interests between the various |
7 | classes of business regulated by subdivision (B) of this |
8 | article, and no person or corporation shall, by any device |
9 | whatsoever, directly or indirectly, evade the provisions of this |
10 | section. But in view of existing economic conditions, nothing |
11 | contained in this section shall be construed to prohibit the |
12 | ownership of property or conflicting interest by a malt or |
13 | brewed beverage manufacturer of any place occupied by a |
14 | distributor, importing distributor or retail dispenser after the |
15 | manufacturer has continuously owned and had a conflicting |
16 | interest in such place for a period of at least five years prior |
17 | to the eighteenth day of July, one thousand nine hundred thirty- |
18 | five: Provided, however, That a holder of a manufacturer's |
19 | license under section 431(a) who is eligible to operate a |
20 | brewery pub under section 446(2) or a limited winery as provided |
21 | for under section 505.2 may also hold and operate under a hotel |
22 | liquor license, a restaurant liquor license or a malt and brewed |
23 | beverages retail license on the manufacturer's or limited |
24 | winery's licensed premises. The hotel liquor license or |
25 | restaurant liquor license or the malt and brewed beverages |
26 | retail license shall be acquired by the manufacturer or limited |
27 | winery subject to section 461 and shall satisfy all requirements |
28 | for each respective license[.]: And, provided further, That |
29 | nothing contained in this section shall be construed to prohibit |
30 | a member of the governing board of a public authority created |
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1 | under subdivision (n) of Article XXIII of the act of August 9, |
2 | 1955 (P.L.323, No.130), known as "The County Code," from having |
3 | an interest in a distributor or importing distributor license |
4 | notwithstanding the fact that the public authority has an |
5 | interest in one or more retail licenses or acts as a landlord |
6 | for one or more retail licenses. |
7 | The term "manufacturer" as used in this section shall include |
8 | manufacturers of malt or brewed beverages as defined in this act |
9 | and any person manufacturing any malt or brewed beverages |
10 | outside of this Commonwealth. |
11 | Section 7. Section 493(24)(ii) of the act, amended November |
12 | 29, 2006 (P.L.1421, No.155), is amended to read: |
13 | Section 493. Unlawful Acts Relative to Liquor, Malt and |
14 | Brewed Beverages and Licensees.--The term "licensee," when used |
15 | in this section, shall mean those persons licensed under the |
16 | provisions of Article IV, unless the context clearly indicates |
17 | otherwise. |
18 | It shall be unlawful-- |
19 | * * * |
20 | (24) * * * |
21 | (ii) Notwithstanding subclause (i) or any other provision of |
22 | law, a holder of a restaurant license that is also approved to |
23 | hold a slot machine license or a conditional slot machine |
24 | license under 4 Pa.C.S. Part II (relating to gaming) may give |
25 | liquor and malt or brewed beverages free of charge to any person |
26 | actively engaged in playing a slot machine. Further, | <-- |
27 | notwithstanding subclause (i) or any other provision of law, the | <-- |
28 | (iii) notwithstanding subclause (i) or any other provision | <-- |
29 | of law, the board may establish and implement a customer |
30 | relations marketing program for the purpose of offering |
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1 | incentives, such as coupons or discounts on certain products |
2 | which may be conditioned upon the purchase of liquor, to |
3 | customers of the board. |
4 | * * * |
5 | Section 8. Section 505 of the act, amended December 21, 1998 |
6 | (P.L.1202, No.155), is amended to read: |
7 | Section 505. Licenses Issued.--Upon receipt of the |
8 | application in the form herein provided and the proper fees, the |
9 | board may grant to such applicant a license to engage in, (a) |
10 | the operation of a limited winery or a winery; or, (b) the |
11 | manufacturing, producing, distilling, developing, or using in |
12 | the process of manufacturing, denaturing, redistilling, |
13 | recovering, rectifying, blending and reusing of alcohol and |
14 | liquor; or, (c) the holding in bond of alcohol and liquor; or, |
15 | (d) the holding in storage, as bailee for hire, of alcohol, |
16 | liquor and malt or brewed beverages; or, (e) the transporting |
17 | for hire of alcohol, liquor and malt or brewed beverages. Such |
18 | licenses may be transferred from one person to another or from |
19 | one place location to another, or both. Every applicant for a | <-- |
20 | transfer of such licenses shall file a written application with |
21 | the board, together with a filing fee of five hundred fifty |
22 | dollars ($550) if the transfer is to a new location, six hundred |
23 | fifty dollars ($650) if the transfer is to a new person, or |
24 | seven hundred dollars ($700) if the transfer is to a new person |
25 | for use at a new location. Whenever such a license is |
26 | transferred, no license or other fees shall be required from the |
27 | persons to whom such transfer is made for the portion of the |
28 | license period for which the license fee has been paid by the |
29 | transferor. |
30 | Section 9. This act shall take effect in 60 days. |
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