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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
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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. ยง 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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