Trial Engrossment of Amendment A02209 to House Bill 1497 P.N. 2007, Regular Session 2017-2018

A02209

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1497

Session of

2017

INTRODUCED BY JOZWIAK, TALLMAN, ROTHMAN, BARBIN, M. K. KELLER,

MILLARD, A. HARRIS, GROVE, WENTLING, WARD, SONNEY AND

WHEELAND, JUNE 5, 2017

AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 13, 2017

AN ACT

Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An

act relating to alcoholic liquors, alcohol and malt and

brewed beverages; amending, revising, consolidating and

changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws," in

preliminary provisions, further defining "alcoholic cider."

CIDER" AND "PUBLIC VENUE"; AND, IN LICENSES AND REGULATIONS

FOR LIQUOR, ALCOHOL AND MALT AND BREWED BEVERAGES, FURTHER

PROVIDING FOR WINE AND SPIRITS AUCTION PERMITS., for

interlocking businesses prohibited and for unlawful acts

relative to liquor, malt and brewed beverages and licensees.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "alcoholic cider" in section

102 of the act of April 12, 1951 (P.L.90, No.21), known as the

Liquor Code, amended November 15, 2016 (P.L.1286, No.166), is

amended to read:

SECTION 1. THE DEFINITIONS OF "ALCOHOLIC CIDER" AND "PUBLIC

VENUE" IN SECTION 102 OF THE ACT OF APRIL 12, 1951 (P.L.90,

NO.21), KNOWN AS THE LIQUOR CODE, AMENDED NOVEMBER 15, 2016

(P.L.1286, NO.166), ARE AMENDED TO READ:

Section 102. Definitions.--The following words or phrases,

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Alcoholic cider" shall mean a beverage which may contain

carbonation in an amount not to exceed six and four tenths grams

per liter, produced through alcoholic fermentation [of any fruit

or fruit juice], which is primarily derived from apples, apple

juice concentrate and water, pears or pear juice concentrate and

water, consisting of at least one-half of one per centum, but

not greater than eight and one-half per centum, alcohol by

volume and sold or offered for sale as alcoholic cider and not

as a wine, a wine product or as a substitute for wine, in

bottles, cases, kegs, cans or other suitable containers of the

type used for the sale of malt or brewed beverages in this

Commonwealth.

* * *

"PUBLIC VENUE" SHALL MEAN A STADIUM, ARENA, CONVENTION

CENTER, MUSEUM, ZOO, AMPHITHEATER OR SIMILAR STRUCTURE. IF THE

PUBLIC VENUE IS A CRUISE TERMINAL OWNED OR LEASED BY A PORT

AUTHORITY CREATED UNDER THE ACT OF JUNE 12, 1931 (P.L.575,

NO.200), ENTITLED "AN ACT PROVIDING FOR JOINT ACTION BY

PENNSYLVANIA AND NEW JERSEY IN THE DEVELOPMENT OF THE PORTS ON

THE LOWER DELAWARE RIVER, AND THE IMPROVEMENT OF THE FACILITIES

FOR TRANSPORTATION ACROSS THE RIVER; AUTHORIZING THE GOVERNOR,

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FOR THESE PURPOSES, TO ENTER INTO AN AGREEMENT WITH NEW JERSEY;

CREATING THE DELAWARE RIVER JOINT COMMISSION AND SPECIFYING THE

POWERS AND DUTIES THEREOF, INCLUDING THE POWER TO FINANCE

PROJECTS BY THE ISSUANCE OF REVENUE BONDS; TRANSFERRING TO THE

NEW COMMISSION ALL THE POWERS OF THE DELAWARE RIVER BRIDGE JOINT

COMMISSION; AND MAKING AN APPROPRIATION," IT SHALL HAVE NO

PERMANENT SEATING REQUIREMENT. IF THE PUBLIC VENUE IS AN OPEN-

AIR AMPHITHEATER OWNED BY A PORT AUTHORITY CREATED UNDER THE ACT

OF DECEMBER 6, 1972 (P.L.1392, NO.298), KNOWN AS THE "THIRD

CLASS CITY PORT AUTHORITY ACT," IT SHALL HAVE NO PERMANENT

SEATING REQUIREMENT. IF THE PUBLIC VENUE IS OWNED BY A POLITICAL

SUBDIVISION, A MUNICIPAL AUTHORITY, THE COMMONWEALTH, AN

AUTHORITY CREATED UNDER THE ACT OF JULY 29, 1953 (P.L.1034,

NO.270), KNOWN AS THE "PUBLIC AUDITORIUM AUTHORITIES LAW," AN

AUTHORITY CREATED UNDER ARTICLE XXV-A OF THE ACT OF JULY 28,

1953 (P.L.723, NO.230), KNOWN AS THE "SECOND CLASS COUNTY CODE,"

AN ART MUSEUM ESTABLISHED UNDER THE AUTHORITY OF THE ACT OF

APRIL 6, 1791 (3 SM.L.20, NO.1536), ENTITLED "AN ACT TO CONFER

ON CERTAIN ASSOCIATIONS OF THE CITIZENS OF THIS COMMONWEALTH THE

POWERS AND IMMUNITIES OF CORPORATIONS, OR BODIES POLITIC IN

LAW," [OR] AN AUTHORITY CREATED UNDER ARTICLE XXIII (N) OR (O)

OF THE ACT OF AUGUST 9, 1955 (P.L.323, NO.130), KNOWN AS "THE

COUNTY CODE," OR IT IS LOCATED IN A NEIGHBORHOOD IMPROVEMENT

ZONE CREATED UNDER ARTICLE XIX-B OF THE ACT OF MARCH 4, 1971

(P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, LOCATED IN

A CITY OF THE THIRD CLASS, IT SHALL HAVE PERMANENT SEATING FOR

AT LEAST ONE THOUSAND (1,000) PEOPLE; OTHERWISE, IT SHALL HAVE

PERMANENT SEATING FOR AT LEAST TWO THOUSAND (2,000) PEOPLE. THE

TERM SHALL ALSO MEAN ANY REGIONAL HISTORY CENTER, MULTIPURPOSE

CULTURAL AND SCIENCE FACILITY, MUSEUM OR CONVENTION OR TRADE

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SHOW CENTER, REGARDLESS OF OWNER AND SEATING CAPACITY, THAT HAS

A FLOOR AREA OF AT LEAST SIXTY THOUSAND (60,000) SQUARE FEET IN

ONE BUILDING. THE TERM SHALL ALSO MEAN A CONVENTION OR

CONFERENCE CENTER OWNED BY A CITY OF THE THIRD CLASS OR A

UNIVERSITY WHICH IS A MEMBER OF THE PENNSYLVANIA STATE SYSTEM OF

HIGHER EDUCATION WHICH IS OPERATED BY A UNIVERSITY FOUNDATION OR

ALUMNI ASSOCIATION, REGARDLESS OF SEATING CAPACITY, THAT HAS A

FLOOR AREA OF AT LEAST FIFTEEN THOUSAND (15,000) SQUARE FEET IN

ONE BUILDING. THE TERM SHALL ALSO MEAN A VISITOR CENTER,

REGARDLESS OF FLOOR AREA OR SEATING CAPACITY, THAT WAS

ESTABLISHED UNDER THE AUTHORITY OF THE GATEWAY VISITOR CENTER

AUTHORIZATION ACT OF 1999 (PUBLIC LAW 106-131, 113 STAT. 1678,

16 U.S.C. § 407M).

* * *

SECTION 2. SECTION Sections 408.12(6), (10), (11) AND (12)

and 411(d) and (e) OF THE ACT, AMENDED NOVEMBER 15, 2016

(P.L.1286, NO.166), ARE AMENDED TO READ:

SECTION 408.12. WINE AND SPIRITS AUCTION PERMITS.--(A) UPON

APPLICATION OF:

* * *

(6) ANY [NATIONALLY RECOGNIZED] COMMUNITY-BASED VOLUNTARY

HEALTH ORGANIZATION COMMITTED TO FIGHTING CANCER [WHICH HAS BEEN

IN EXISTENCE FOR AT LEAST NINETY YEARS];

* * *

(10) INSTITUTION OF HIGHER EDUCATION; OR

(11) ANY NATIONALLY RECOGNIZED COMMUNITY-BASED HEALTH

ORGANIZATION COMMITTED TO FUNDING TYPE 1 DIABETES RESEARCH; [OR]

[(12) ANY NATIONALLY RECOGNIZED COMMUNITY-BASED VOLUNTARY

HEALTH ORGANIZATION COMMITTED TO FIGHTING CANCER WHICH HAS BEEN

IN EXISTENCE FOR AT LEAST TWENTY YEARS;]

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AND UPON PAYMENT OF A FEE OF THIRTY DOLLARS ($30) PER DAY, THE

BOARD SHALL ISSUE A WINE AND SPIRITS AUCTION PERMIT GOOD FOR A

PERIOD OF NOT MORE THAN FOUR CONSECUTIVE OR NONCONSECUTIVE DAYS

PER CALENDAR YEAR.

* * *

Section 411. Interlocking Business Prohibited.--* * *

(d) Excepting as herein provided, no hotel licensee,

restaurant licensee or club licensee, and no officer, director,

stockholder, agent or employe of any such licensee shall in any

wise be interested, either directly or indirectly, [in the

ownership or leasehold of any property or the equipment of any

property or any mortgage lien against the same, used by a

manufacturer in manufacturing liquor or malt or brewed

beverages; nor shall any hotel, restaurant or club licensee, or

any officer, director, stockholder, agent or employe of any such

licensee, either directly or indirectly,] lend any moneys,

credit, or give anything of value or the equivalent thereof, to

any manufacturer for equipping, fitting out, or maintaining and

conducting, either in whole or in part, an establishment used

for the manufacture of liquor or malt or brewed beverages.

(e) Except as herein provided, no hotel, restaurant, retail

dispenser or club licensee, and no officer, director or

stockholder, agent or employe of any such licensee shall in any

wise be interested, directly or indirectly, in the ownership or

leasehold of any property or the equipment of any property or

any mortgage lien against the same, used by a distributor,

importing distributor, or by an importer or sacramental wine

licensee, in the conduct of his business; nor shall any hotel,

restaurant, retail dispenser or club licensee, or any officer,

director, stockholder, agent or employe of any such licensee,

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either directly or indirectly, lend any moneys, credit, or give

anything of value or the equivalent thereof, to any distributor,

importing distributor, importer or sacramental wine licensee,

for equipping, fitting out, or maintaining and conducting,

either in whole or in part, an establishment used in the conduct

of his business.

The purpose of this section is to require a separation of the

financial and business interests between manufacturers and

holders of hotel or restaurant liquor licenses and, as herein

provided, of club licenses, issued under this article, and no

person shall, by any device whatsoever, directly or indirectly,

evade the provisions of the section. But in view of existing

economic conditions, nothing contained in this section shall be

construed to prohibit the ownership of property or conflicting

interest by a manufacturer of any place occupied by a licensee

under this article after the manufacturer has continuously owned

and had a conflicting interest in such place for a period of at

least five years prior to July eighteenth, one thousand nine

hundred thirty-five: Provided, however, That this clause shall

not prohibit any hotel, restaurant or club liquor licensee, or

any officer, director or stockholder of any such licensee, from

owning land or buildings which are leased to a holder of a

retail dispenser's license, [a distillery license or a limited

distillery license] or a manufacturer's license: And, provided

further, That nothing contained in this section shall be

construed to prohibit any hotel, restaurant, retail dispenser or

club licensee or any officer, director or stockholder, agent or

employe of any such licensee from having a financial or other

interest, directly or indirectly in [the ownership or leasehold

of any property or] the equipment of any property or any

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mortgage lien against same, used, leased by an importer or

sacramental wine licensee for the exclusive purpose of

maintaining commercial offices and on the condition that said

property is not used for the storage or sale of liquor or malt

or brewed beverages in any quantity: And, provided further, That

nothing contained in this section shall prohibit an officer or

member of a licensed privately owned private golf course

catering club from having an interest in a limited winery

license: And, provided further, That nothing contained in this

section shall be construed to prohibit a member of the governing

board of a public authority created under subdivision (n) of

Article XXIII of the act of August 9, 1955 (P.L.323, No.130),

known as "The County Code," from having an interest in a

distributor or importing distributor license notwithstanding the

fact that the public authority has an interest in one or more

retail licenses or acts as a landlord for one or more retail

licenses: And, provided further, That, nothing in this section

may prohibit an employe of a hotel or restaurant licensee from

having an interest in any property used by a limited winery

licensee or in guaranteeing any loans, or lending any moneys,

providing credit or giving anything of value to a limited winery

licensee or its officers, directors and shareholders, provided

that the person also is not an officer of or does not have any

interest in or exercise any control over any other licensed

entity that engages in any sales to or from the licensee: And,

provided further, That, notwithstanding any other provision of

this section, an entity may acquire both a manufacturer's

license or a limited winery license and a hotel, restaurant or

retail dispenser license for use at the same location and more

than one location may be so licensed. And, provided further,

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That, notwithstanding any other provision of this section, an

entity licensed as a limited winery may hold and operate a

restaurant liquor license at one of its additional, board-

approved locations instead of at its primary location where

manufacturing occurs. The licenses and a person's interest in

the licenses or in the entity holding the licenses shall not be

subject to this section. Provided further, That, a person who is

a holder of ten per centum (10%) or less of securities or other

interests in a publicly or privately held domestic or foreign

corporation, partnership, limited liability company or other

form of legal entity owning a retail license shall not be deemed

to possess a financial interest and is not subject to the

provisions of this section, provided that the person is not an

officer of, employe of or does not have any interest in or

exercise any control over any other licensed entity that engages

in any sales to or from the retail licensee in which the person

holds the ten per centum (10%) or less interest[.]: And,

provided further, That nothing in this section shall prohibit a

person who has an ownership interest in a limited winery license

from being employed by an entity that holds a hotel, restaurant,

eating place or club license so long as the person is not

employed as an alcohol service personnel or as manager.

* * *

Section 3. Section 493(11) of the act is amended to read:

Section 493. Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

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* * *

(11) Licensees Employed by Others. For any hotel, restaurant

or club liquor licensee, or any malt or brewed beverage

licensee, or any officer, servant, agent or employe of such

licensee, to be at the same time employed, directly or

indirectly, by any distributor, importing distributor,

manufacturer, importer or vendor licensee or any out of State

manufacturer. It shall also be unlawful for any distributor or

importing distributor, or any officer, servant, agent or employe

of such licensee, to be at the same time employed, directly or

indirectly, by any other distributor, importing distributor,

manufacturer, importer, vendor, out of State manufacturer, hotel

restaurant, malt or brewed beverage licensee, or club liquor

licensee. It shall also be unlawful for any manufacturer,

importer, or vendor licensee, or any out of State manufacturer,

or any officer, servant, agent or employe of such licensee or

manufacturer, to be at the same time employed, directly or

indirectly, by any hotel, restaurant or club liquor licensee or

any malt or brewed beverage licensee or any distributor or

importing distributor licensee. Nothing in this subsection shall

be construed to prohibit a manufacturer or limited winery

licensee, or any officer, servant, agent or employe of such

licensee, to be employed at the same time by a hotel, restaurant

or retail dispenser licensee if the hotel, restaurant or retail

dispenser licensee is located at the manufacturer or limited

winery premises pursuant to section 443. For the purposes of

this subsection, an officer, servant, agent or employe of a

licensee or manufacturer is an individual who has either an

ownership interest in the licensee or manufacturer or who

receives compensation for his or her work on behalf of the

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licensee or manufacturer[.]: Provided further, That nothing in

this section shall prohibit a person who has an ownership

interest in a limited winery license from being employed by an

entity that holds a hotel, restaurant, eating place or club

license so long as the person is not employed as an alcohol

service personnel or as manager.

* * *

Section 2 3 4. This act shall take effect in 60 days.

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