H0790B2139A03081 JKL:JSL 06/28/13 #90 A03081

 

 

 

 

AMENDMENTS TO HOUSE BILL NO. 790

Sponsor: SENATOR PILEGGI

Printer's No. 2139

 

1Amend Bill, page 2, line 27, by inserting after "Board, "

2providing for executive director of the board; and

3Amend Bill, page 2, line 33, by striking out the comma after
4"clubs" and inserting

5 and

6Amend Bill, page 2, line 33, by striking out ", hearings,"
7and inserting

8 and hearings; providing for restaurant food market liquor
9license; further providing for issuance and transfer or
10extension of hotel, restaurant and club liquor licenses, for

11Amend Bill, page 2, line 40, by inserting after "licenses,"

12 for malt and brewed beverage retail licenses,

13Amend Bill, page 2, lines 57 and 58, by striking out
14"PROVIDING FOR A TRANSFER FROM THE STATE STORES FUND;"

15Amend Bill, page 2, by inserting after line 60

16The General Assembly finds and declares as follows:

17(1) It is the purpose of this act to reform and
18modernize the system by which alcohol is dispensed and
19controlled within this Commonwealth to reflect changes in the
20marketplace while continuing to protect the welfare, health,
21peace and morals of the citizens of this Commonwealth.

22(2) The 21st amendment to the United States Constitution
23dictates that the laws of the states shall govern the
24transportation and importation of intoxicating liquors into
25the state for delivery and use within the state.

26(3) Further, the United States Supreme Court has opined
27in interpreting the 21st amendment that "the states'
28regulatory power over this segment of commerce is largely
29unfettered by the Constitution's commerce clause."

30(4) Revenues derived from the operation of a system for

1the manufacture, transportation, distribution and sale of
2alcohol are necessary to implement and sustain a regulated
3marketplace to continue to protect the welfare, health, peace
4and morals of the citizens of this Commonwealth and to
5contribute to the overall economic stability of the
6Commonwealth.

7(5) In order to adapt to the changing marketplace, this
8act will:

9(i) Permit private industry to offer additional 
10products for sale while ensuring that the laws of this 
11Commonwealth are thoroughly enforced.

12(ii) Ensure that the value of licenses held by small 
13businesses are not devalued, but are enhanced through the 
14opportunity to expand operations and sales.

15(iii) Provide for the operation of a retail system 
16that promotes competition and convenience to ensure that 
17the residents of this Commonwealth purchase products 
18within this Commonwealth.

19(iv) In recognition of the growing use of e-commerce 
20sales, permit consumers to purchase products online and 
21have those products shipped directly to them.

22(v) Establish a system by which these increased 
23opportunities will continue to contribute to overall 
24fiscal stability of the Commonwealth.

25(6) Recognition and furtherance of all these elements is 
26essential to the welfare, health, peace and morals of the 
27citizens of this Commonwealth.

28Amend Bill, page 192, by inserting between lines 10 and 11

29"Food market" shall mean a reputable place of business
30operated by a responsible person or persons of good reputation
31that meets all of the following:

32(1) Principally sells food, specifically dairy, fresh
33produce, fruit, eggs, food products for consumption off the
34premises and supplies for the table.

35(2) Has an area under one roof of two thousand five hundred
36square feet to thirty thousand square feet of which more than
37seventy-five per centum of its gross floor area is used in the
38preparation, purchase, service, consumption or storage of food,
39food products for consumption off the premises and supplies for
40the table.

41* * *

42Amend Bill, page 193, line 7, by striking out "four six-packs 
43or up to two twelve-packs" and inserting

44 three six-packs or up to one twelve-pack and one six-pack
45in a single transaction

46Amend Bill, page 194, by inserting between lines 2 and 3

1Section 1.1. The act is amended by adding a section to read:

2Section 204.1. Executive Director of Board.--The Governor
3shall, in accordance with the provisions of the Constitution of
4Pennsylvania, and by the advice and consent of a majority of the
5members of the Senate, nominate and appoint an executive
6director of the board. The executive director of the board shall
7serve at the pleasure of the Governor. The salary of the
8executive director shall be set by the executive board pursuant
9to section 709 of the act of April 9, 1929 (P.L.177, No.175), 
10known as "The Administrative Code of 1929."

11Amend Bill, page 194, line 3, by striking out "1.1" and 
12inserting

13 1.2

14Amend Bill, page 194, line 19, by inserting after "(a.1) "

15(1)

16Amend Bill, page 194, by inserting between lines 28 and 29

17(2) Where the number of distributors and importing
18distributors operating with a wine and spirits enhanced permit
19exceed the number of Pennsylvania Liquor Stores in operation
20within a county as of the effective date of this section by a
21factor of two, the Pennsylvania Liquor Stores within a county
22must close within six months except when the provisions of
23paragraph (3) apply.

24(3) Before making a decision to close a Pennsylvania Liquor
25Store within a municipality without a distributor or importing
26distributor operating with a wine and spirits enhanced permit,
27the board shall take into consideration the term of the current
28lease, the availability of and accessibility of liquor to the
29public through the private retail market, the pricing of liquor
30in the area and the profitability of the Pennsylvania Liquor
31Store. If it is determined by the board that the private retail
32market is serving the needs of the public, and the economic
33viability of the Pennsylvania Liquor Store is unsustainable, the
34board shall close the Pennsylvania Liquor Store.

35Amend Bill, page 197, by inserting between lines 7 and 8

36(l) After the completion of studies of the wine and spirits
37wholesale system by the Pennsylvania Legislative Budget and
38Finance Committee and the board, if the findings of either study
39determine that leasing of the wine and spirits wholesale system
40would not have a significant negative impact on the annual
41fiscal stability of the Commonwealth, the board may issue a
42request for proposal for the lease of the wholesale liquor
43business for a period not to exceed ten years. A proposal may be
44awarded by a unanimous vote of the board if it is determined by
45the board that the lease would result in an increase in annual

1gross profits to the Commonwealth.

2Amend Bill, page 197, line 8, by striking out "1.2" and 
3inserting

4 1.3

5Amend Bill, page 198, line 3, by inserting after "act;"

6 and to eating places that hold an expanded permit as provided 
7for in section 415, distributors and importing distributors who 
8hold an enhanced permit as provided for in section 416

9Amend Bill, page 198, lines 9 and 10, by striking out all of
10said lines and inserting

11 price. Wine sales to licensees who hold a wine expanded permit 
12shall be made at a price that includes a discount of eighteen 
13per centum from the retail price, regardless of whether the 
14licensee offers the wine for consumption on or off the premises. 
15Special spirit sales to licensees who hold a special spirits 
16expanded permit shall be made at a price that includes a 
17discount of eighteen per centum from the retail price regardless 
18of whether the licensee offers the special spirits for 
19consumption on or off the premises. Sales to licensees who hold 
20a wine or spirits enhanced permit shall be made at a price that 
21includes a discount of eighteen per centum from the retail 
22price. The

23Amend Bill, page 199, line 22, by striking out "four six-
24packs and up to two twelve-packs" and inserting

25 three six-packs or up to one twelve-pack and one six-pack
26in a single transaction

27Amend Bill, page 200, by inserting between lines 23 and 24

28Section 2.3. The act is amended by adding a section to read:

29Section 403.1. Food Market Restaurant License.--(a) The
30board is authorized to issue a restaurant liquor license to a
31food market that is not within a radius three quarters of a mile
32of a distributor or importing distributor and if the board
33determines there is not sufficient availability and
34accessibility of malt or brewed beverages through the private
35market. The three-quarters-of-a-mile radius restriction shall
36not apply to a food market if all distributors or importing
37distributors within a radius of three quarters of a mile do not
38obtain an enhanced wine or spirits permit within six months of
39the effective date of this section. The licensing period shall
40be as established under section 402. The application and
41issuance of the license is subject to sections 403 and 404
42insofar as provisions of those sections are not contrary to the

1provisions of this section. The application, renewal and filing
2fee shall be as prescribed in section 614-A(1) of the act of 
3April 9, 1929 (P.L.177, No.175), known as "The Administrative 
4Code of 1929."

5(b) Licenses issued under this section are subject to the
6quota restrictions contained under section 461.

7(c) Licenses issued under this section are restaurant liquor
8licenses for all purposes, except as provided herein. The
9following additional restrictions and privileges apply:

10(1) A license issued under this section shall license the
11premises of a food market located under one roof.

12(2) Malt or brewed beverages, or wine sold pursuant to an
13authorized expanded permit, sold within a licensed food market
14shall be placed under the roof of a licensed premises, in a
15specifically designated area on the inside perimeter and not in
16the aisle of the premises, as approved by the board.

17(3) Notwithstanding any other provisions of law, malt or
18brewed beverages or wine sold pursuant to an authorized expanded
19permit, sold within a food market shall not be available for
20consumption on the licensed premises.

21(4) Licenses issued under this section shall not be required
22to meet the requirements defining a restaurant contained in
23section 102.

24(d) Licenses issued under this section are subject to
25section 493(13).

26Section 2.4. Section 404 of the act, amended January 6, 2006
27(P.L.1, No.1), is amended to read:

28Section 404. Issuance, Transfer or Extension of Hotel,
29Restaurant and Club Liquor Licenses.--Upon receipt of the
30application and the proper fees, and upon being satisfied of the
31truth of the statements in the application that the applicant is
32the only person in any manner pecuniarily interested in the
33business so asked to be licensed and that no other person will
34be in any manner pecuniarily interested therein during the
35continuance of the license, except as hereinafter permitted, and
36that the applicant is a person of good repute, that the premises
37applied for meet all the requirements of this act and the
38regulations of the board, that the applicant seeks a license for
39a hotel, restaurant or club, as defined in this act, and that
40the issuance of such license is not prohibited by any of the
41provisions of this act, the board shall, in the case of a hotel
42or restaurant, grant and issue to the applicant a liquor
43license, and in the case of a club may, in its discretion, issue
44or refuse a license: Provided, however, That in the case of any
45new license or the transfer of any license to a new location or
46the extension of an existing license to cover an additional area
47the board may, in its discretion, grant or refuse such new
48license, transfer or extension if such place proposed to be
49licensed is within three hundred feet of any church, hospital,
50charitable institution, school, or public playground, or if such
51new license, transfer or extension is applied for a place which

1is within two hundred feet of any other premises which is
2licensed by the board: And provided further, That the board's
3authority to refuse to grant a license because of its proximity
4to a church, hospital, charitable institution, public playground
5or other licensed premises shall not be applicable to license
6applications submitted for public venues or performing arts
7facilities: And provided further, That the board shall refuse
8any application for a new license, the transfer of any license
9to a new location or the extension of an existing license to
10cover an additional area if, in the board's opinion, such new
11license, transfer or extension would be detrimental to the
12welfare, health, peace and morals of the inhabitants of the
13neighborhood within a radius of five hundred feet of the place
14proposed to be licensed: And provided further, That the board
15shall have the discretion to refuse a license to any person or
16to any corporation, partnership or association if such person,
17or any officer or director of such corporation, or any member or
18partner of such partnership or association shall have been
19convicted or found guilty of a felony within a period of five
20years immediately preceding the date of application for the said
21license. [The board shall refuse any application for a new
22license, the transfer of any license to a new location or the
23extension of any license to cover an additional area where the
24sale of liquid fuels or oil is conducted.] The board may enter
25into an agreement with the applicant concerning additional
26restrictions on the license in question. If the board and the
27applicant enter into such an agreement, such agreement shall be
28binding on the applicant. Failure by the applicant to adhere to
29the agreement will be sufficient cause to form the basis for a
30citation under section 471 and for the nonrenewal of the license
31under section 470. If the board enters into an agreement with an
32applicant concerning additional restrictions, those restrictions
33shall be binding on subsequent holders of the license until the
34license is transferred to a new location or until the board
35enters into a subsequent agreement removing those restrictions.
36If the application in question involves a location previously
37licensed by the board, then any restrictions imposed by the
38board on the previous license at that location shall be binding
39on the applicant unless the board enters into a new agreement
40rescinding those restrictions. The board may, in its discretion,
41refuse an application for an economic development license under
42section 461(b.1) or an application for an intermunicipal
43transfer of a license if the board receives a protest from the
44governing body of the receiving municipality. The receiving
45municipality of an intermunicipal transfer or an economic
46development license under section 461(b.1) may file a protest
47against the transfer of a license into its municipality, and the
48receiving municipality shall have standing in a hearing to
49present testimony in support of or against the issuance or
50transfer of a license. Upon any opening in any quota, an
51application for a new license shall only be filed with the board

1for a period of six months following said opening.

2Amend Bill, page 200, line 24, by striking out "2.3" and 
3inserting

4 2.5

5Amend Bill, page 201, line 15, by striking out "Sections" and 
6inserting

7 Section

8Amend Bill, page 201, line 27, by striking out "four six-
9packs or up to two twelve-packs" and inserting

10 three six-packs or up to one twelve-pack and one six-pack
11in a single transaction

12Amend Bill, page 203, line 26, by striking out the period 
13after "license" and inserting

14: Provided, That a restaurant liquor licensee who obtained a
15license through section 403.1 shall file a written application
16with the board for a wine expanded permit and the board shall
17approve the application if it determines there is not sufficient
18availability and accessibility of wine through the private
19retail market.

20Amend Bill, page 204, line 1, by inserting after "and "

21special

22Amend Bill, page 204, line 6, by inserting after "and "

23special

24Amend Bill, page 205, by inserting between lines 8 and 9

25(7) An expanded permit holder shall utilize a transaction
26scan device to verify the age of an individual who appears to be
27under thirty-five years of age before making a sale of liquor.
28An expanded permit holder may not sell or share data from the
29use of a transaction scan device provided that the licensee may
30use the data to show the enforcement bureau of the board that
31the licensee is in compliance with this act. As used in this
32paragraph, the term "transaction scan device" means a device
33capable of deciphering, in an electronically readable format,
34the information encoded on the magnetic strip or bar code of an
35identification card under section 495(a).

36Amend Bill, page 205, lines 11 through 18, by striking out
37all of said lines and inserting

1(1) For a wine expanded permit:

2(i) Two thousand dollars ($2,000) for licensees whose total
3annual alcohol purchase from the board is less than one hundred
4thousand dollars ($100,000) in the prior calendar year.

5(ii) Four thousand dollars ($4,000) for licensees whose
6total annual alcohol purchase from the board is between one
7hundred thousand and one dollar ($100,001) and two hundred
8thousand dollars ($200,000) in the prior calendar year.

9(iii) Six thousand dollars ($6,000) for licensees whose
10total annual purchase from the board is greater than two hundred
11thousand and one dollar ($200,001) in the prior calendar year.

12(2) For a special spirits expanded permit, a fee of two
13thousand dollars ($2,000).

14Amend Bill, page 205, lines 24 through 30; page 206, lines 1 
15and 2, by striking out all of lines 24 through 30 on page 205 
16and all of line 1 and "(II) A WINE EXPANDED PERMIT" in line 2 
17on page 206 and inserting

18(1) A wine expanded permit holder may sell in a single
19transaction

20Amend Bill, page 206, lines 6 through 10, by striking out all 
21of lines 6 through 9 and "(iv)" in line 10 and inserting

22 (2)

23Amend Bill, page 206, line 10, by striking out the comma 
24after "permit" and inserting

25 holder may sell in a single transaction

26Amend Bill, page 206, line 14, by striking out "(2)" and 
27inserting

28 (3)

29Amend Bill, page 207, line 17, by inserting after "or "

30special

31Amend Bill, page 208, lines 16 and 17, by striking out " 
32eight" in line 16 and all of line 17 and inserting

33:

34(A) Four thousand dollars ($4,000) for licensees whose total
35annual alcohol purchase from the board is less than two hundred
36thousand dollars ($200,000) in the prior calendar year.

37(B)  Eight thousand dollars ($8,000) for licensees whose
38total annual alcohol purchase from the board is between two

1hundred thousand and one dollar ($200,001) and four hundred
2thousand dollars ($400,000) in the prior calendar year.

3(C)  Twelve thousand dollars ($12,000) for licensees whose
4total annual purchase from the board is greater than four
5hundred thousand and one dollar ($400,001) in the prior calendar
6year.

7Amend Bill, page 208, lines 18 and 19, by striking out " four 
8thousand" in line 18 and all of line 19 and inserting

9:

10(A) Two thousand dollars ($2,000) for licensees whose total
11annual alcohol purchase from the board is less than one hundred
12thousand dollars ($100,000) in the prior calendar year.

13(B) Four thousand dollars ($4,000) for licensees whose total
14annual alcohol purchase from the board is between one hundred
15thousand and one dollar ($100,001) and two hundred thousand
16dollars ($200,000) in the prior calendar year.

17(C) Six thousand dollars ($6,000) for licensees whose total
18annual purchase from the board is greater than two hundred
19thousand and one dollar ($200,001) in the prior calendar year.

20Amend Bill, page 208, lines 20 and 21, by striking out " four 
21thousand" in line 20 and all of line 21 and inserting

22:

23(A) Two thousand dollars ($2,000) for licensees whose total
24annual alcohol purchase from the board is less than one hundred
25thousand dollars ($100,000) in the prior calendar year.

26(B) Four thousand dollars ($4,000) for licensees whose total
27annual alcohol purchase from the board is between one hundred
28thousand and one dollar ($100,001) and two hundred thousand
29dollars ($200,000) in the prior calendar year.

30(C) Six thousand dollars ($6,000) for licensees whose total
31annual purchase from the board is greater than two hundred
32thousand and one dollar ($200,001) in the prior calendar year.

33Amend Bill, page 209, line 19, by striking out ".750" and 
34inserting

35 750

36Amend Bill, page 210, line 8, by striking out "(Reserved)." 
37and inserting

38 An enhanced permit holder shall utilize a transaction scan
39device to verify the age of an individual who appears to be less
40than thirty-five years of age before making a sale of liquor. An
41expanded permit holder may not sell or share data from the use
42of a transaction scan device provided that the licensee may use
43the data to show the enforcement bureau of the board that the

1licensee is in compliance with this act. As used in this
2paragraph, the term "transaction scan device" means a device
3capable of deciphering, in an electronically readable format,
4the information encoded on the magnetic strip or bar code of an
5identification card under section 495(a).

6Amend Bill, page 212, line 5, by inserting a bracket before 
7"The"

8Amend Bill, page 212, line 7, by inserting a bracket after 
9"conducted."

10Amend Bill, page 215, by inserting between lines 21 and 22

11Section 6.1. Section 432(d) of the act, amended January 6,
122006 (P.L.1, No.1), is amended to read:

13Section 432. Malt and Brewed Beverages Retail Licenses.--

14* * *

15(d) The board shall, in its discretion, grant or refuse any
16new license, the transfer of any license to a new location or
17the extension of an existing license to cover an additional area
18if such place proposed to be licensed is within three hundred
19feet of any church, hospital, charitable institution, school, or
20public playground, or if such new license, transfer or extension
21is applied for a place which is within two hundred feet of any
22other premises which is licensed by the board. The board shall
23refuse any application for a new license, the transfer of any
24license to a new location or the extension of an existing
25license to cover an additional area if, in the board's opinion,
26such new license, transfer or extension would be detrimental to
27the welfare, health, peace and morals of the inhabitants of the
28neighborhood within a radius of five hundred feet of the place
29to be licensed. The board may enter into an agreement with the
30applicant concerning additional restrictions on the license in
31question. If the board and the applicant enter into such an
32agreement, such agreement shall be binding on the applicant.
33Failure by the applicant to adhere to the agreement will be
34sufficient cause to form the basis for a citation under section
35471 and for the nonrenewal of the license under section 470. If
36the board enters into an agreement with an applicant concerning
37additional restrictions, those restrictions shall be binding on
38subsequent holders of the license until the license is
39transferred to a new location or until the board enters into a
40subsequent agreement removing those restrictions. If the
41application in question involves a location previously licensed
42by the board, then any restrictions imposed by the board on the
43previous license at that location shall be binding on the
44applicant unless the board enters into a new agreement
45rescinding those restrictions. The [board shall refuse any
46application for a new license, the transfer of any license to a

1location where the sale of liquid fuels or oil is conducted or
2the extension of an existing license to cover an additional
3area: And provided further, That the] board shall have the
4discretion to refuse a license to any person or to any
5corporation, partnership or association if such person, or any
6officer or director of such corporation, or any member or
7partner of such partnership or association shall have been
8convicted or found guilty of a felony within a period of five
9years immediately preceding the date of application for the said
10license. The board may, in its discretion, refuse an application
11for an economic development license under section 461(b.1) or an
12application for an intermunicipal transfer or a license if the
13board receives a protest from the governing body of the
14receiving municipality. The receiving municipality of an
15intermunicipal transfer or an economic development license under
16section 461(b.1) may file a protest against the approval for
17issuance of a license for economic development or an
18intermunicipal transfer of a license into its municipality, and
19such municipality shall have standing in a hearing to present
20testimony in support of or against the issuance or transfer of a
21license. Upon any opening in any quota, an application for a new
22license shall only be filed with the board for a period of six
23months following said opening.

24* * *

25Amend Bill, page 217, lines 23 and 24, by striking out "four 
26six-packs and up to two twelve-packs" and inserting

27 three six-packs or up to one twelve-pack and one six-pack
28in a single transaction

29Amend Bill, page 219, line 1, by inserting after "amended"

30 and the section is amended by adding subsections

31Amend Bill, page 219, by inserting between lines 27 and 28

32(c) (1) The holder of a brewery license may, at the
33discretion of the board, obtain a farmers market permit. The
34permit shall entitle the holder to participate in more than one
35farmers market at any given time and an unlimited number
36throughout the year and sell malt or brewed beverages produced
37under the authority of the underlying brewery license by the
38bottle or in a package not to exceed one hundred forty-four
39ounces. Samples not to exceed four fluid ounces per brand of
40malt or brewed beverages may be offered free of charge. A
41farmers market permit shall be issued upon proper application
42and payment of an annual fee of two hundred fifty dollars
43($250). A permit holder may participate in more than one farmers
44market at any given time. Sales by permit holders shall take
45place during the standard hours of operation of the farmers
46market. Written notice of the date, times and location the

1permit is to be used shall be provided by the permit holder to
2the enforcement bureau at least two weeks prior to the event.
3Except as provided in this subsection, breweries utilizing
4farmers market permits shall be governed by all applicable
5provisions of this act as well as by all applicable regulations
6adopted by the board.

7(2) The term "farmers market" as used in this subsection
8shall include any building, structure or other place:

9(i) owned, leased or otherwise in the possession of a
10person, municipal corporation or public or private organization;

11(ii) used or intended to be used by two or more farmers or
12an association of farmers, who are certified by the Department
13of Agriculture to participate in the Farmers Market Nutrition
14Program subject to 7 CFR Pt. 249 (relating to Senior Farmers'
15Market Nutrition Program (SFMNP)), for the purpose of selling
16agricultural commodities produced in this Commonwealth directly
17to consumers;

18(iii) which is physically located within this Commonwealth;
19and

20(iv) which is not open for business more than twelve hours
21each day.

22(3) The permit, as authorized by this subsection, is only
23available to breweries who produce less than one hundred
24thousand barrels per year. All brands of malt or brewed
25beverages sold or provided under the farmers market permit must
26be registered as set forth by this act.

27(d) The holder of a brewery license may also sell wines
28produced by a licensed limited winery or distilled liquor
29produced by a licensed limited distillery.

30Amend Bill, page 222, line 9, by striking out "468(e) of the 
31act, added" and inserting

32 468(a) and (e) of the act, amended or added December 20, 2000 
33(P.L.992, No.141), February 21, 2002 (P.L.103, No.10), June 28, 
342011 (P.L.55, No.11) and

35Amend Bill, page 222, line 11, by striking out "Transfers.--* 
36* *" and inserting

37 Transfers.--(a) (1) Licenses issued under this article may 
38not be assigned. The board, upon payment of the transfer filing 
39fee, is hereby authorized to transfer any license issued by it 
40under the provisions of this article from one person to another 
41or from one place to another, or both. Except for restaurant 
42liquor and eating place retail dispenser licenses transferred 
43under section 461(b.4), if the license is a retail license, the 
44new location must be within the same county as the existing 
45location or, if the municipality is located in more than one 
46county, within the same municipality as the existing location.

47(2) In the case of distributor and importing distributor

1licenses, the board may transfer any such license from its place
2in a municipality to a place in any other municipality within
3the same county, or from one place to another place within the
4same municipality, or exchange a distributor license for an
5importing distributor license or an importing distributor
6license for a distributor license, if the building for which the
7license is to be issued has, in the case of an importing
8distributor license, an area under one roof of two thousand five
9hundred square feet and, in the case of a distributor license,
10an area under one roof of one thousand square feet: And
11provided, That, in the case of all transfers of distributor or
12importing distributor licenses, whether from a place within the
13same municipality to another place within the same municipality
14or from a place in a municipality to a place in any other
15municipality within the same county, and, in the case of an
16exchange of a distributor license for an importing distributor
17license or an importing distributor license for a distributor
18license, the premises to be affected by the transfer or exchange
19shall contain an office separate and apart from the remainder of
20the premises to be licensed for the purpose of keeping records,
21required by the board, adequate toilet facilities for employes
22of the licensee and an entrance on a public thoroughfare:
23Provided, however, That in the event that the majority of the
24voting electors of a municipality, at an election held under the
25provisions of any law so empowering them to do, shall vote
26against the issuance of distributor or importing distributor
27licenses in such municipality, the board is hereby authorized to
28transfer any such distributor or importing distributor license
29from its place in such municipality to a place in any other
30municipality within the same county, upon application prior to
31the expiration of any such license and upon payment of the
32transfer filing fee and the execution of a new bond; but no
33transfer shall be made to a person who would not have been
34eligible to receive the license originally nor for the
35transaction of business at a place for which the license could
36not lawfully have been issued originally, nor, except as herein
37provided, to a place as to which a license has been revoked.

38(3) [No license shall be transferred to any place or
39property upon which is located as a business the sale of liquid
40fuels and oil.] Except in cases of emergency such as death,
41serious illness, or circumstances beyond the control of the
42licensee, as the board may determine such circumstances to
43justify its action, transfers of licenses may be made only at
44times fixed by the board. In the case of the death of a
45licensee, the board may transfer the license to the surviving
46spouse or personal representative or to a person designated by
47him. From any refusal to grant a transfer or upon the grant of
48any transfer, the party aggrieved shall have the right of appeal
49to the proper court in the manner hereinbefore provided.

50(4) In the event the license to be transferred has been
51ordered to serve a suspension under section 471 and has not

1served the suspension at the time the board considers the
2application and all appeals regarding the suspension have been
3exhausted, the board may require the transferee to serve the
4suspension as a condition for approval of the transfer. Further,
5the board may convert the outstanding suspension into a fine and
6require the transferee to pay the fine as a condition for
7approval of the transfer. If the board converts the outstanding
8suspension to a fine, the fine need not comply with the minimum
9and maximum amounts set forth in section 471 for the underlying
10citation.

11* * *

12Amend Bill, page 235, by inserting between lines 4 and 5

13(D) The sales and use tax imposed under section 1003 of the
14act of December 18, 1984 (P.L.1005, No.205), known as the 
15"Municipal Pension Plan Funding Standard and Recovery Act."

16Amend Bill, page 235, line 5, by striking out "(D)" and 
17inserting

18 (E)

19Amend Bill, page 235, line 9, by striking out all of said
20line

21Amend Bill, page 240, line 13, by inserting after "and "

22special 

23Amend Bill, page 244, lines 28 and 29, by striking out "four 
24six-packs or up to two twelVE-PACKS" and inserting

25 three six-packs or up to one twelve-pack and one six-pack
26in a single transaction

27Amend Bill, page 248, line 15, by striking out "sections" and
28inserting

29 a section

30Amend Bill, page 248, lines 25 through 30; page 249, line 1,
31by striking out all of said lines on said pages

32Amend Bill, page 249, by inserting between lines 1 and 2

33Section 1002. Small Brewers Tax Credits.--(a) A tax credit 
34or credits shall be allowed for each calendar year to a 
35taxpayer, not to exceed in total amount the amount of qualifying 
36capital expenditures made by the taxpayer and certified by the 
37secretary.

1(b) A taxpayer desiring to claim a tax credit or credits
2under this section shall, within one year of the date of the
3original purchase of the qualifying capital expenditures, in
4accordance with regulations promulgated by the secretary, report
5annually to the secretary the nature, amounts and dates of
6qualifying capital expenditures made by him and such other
7information as the secretary shall require. If satisfied as to
8the correctness of such a report, the secretary shall issue to
9the taxpayer a certificate establishing the amount of qualifying
10capital expenditures made by the taxpayer and included within
11said report. The taxpayer shall also provide to the secretary
12the number of employes, total production of malt or brewed
13beverages and the amount of capital expenditures made by the
14taxpayer at each location operated by the taxpayer or a parent
15corporation, subsidiary, joint venture or affiliate. The
16taxpayer shall notify the secretary of any contract for
17production held with another manufacturer. The secretary shall
18file a report annually with the Chief Clerk of the House of
19Representatives and with the Secretary of the Senate outlining
20the employment, production, expenditures and tax credits
21authorized under this section.

22(c) Upon receipt from a taxpayer of a certificate from the
23secretary issued under subsection (a), the secretary shall grant
24a tax credit or credits in the amount certified against any tax
25due under Article XX of the act of March 4, 1971 (P.L.6, No.2), 
26known as the "Tax Reform Code of 1971," in the calendar year in
27which the expenditures were incurred or against any tax becoming
28due from the taxpayer under Article XX of the "Tax Reform Code
29of 1971," in the following three calendar years. No credit shall
30be allowed against any tax due for any taxable period ending
31before January 1, 2013, and no taxpayer shall be eligible to
32receive a tax credit for a qualifying expenditure made on or
33before December 31, 2009.

34(d) (1) As used in this section, the following words and
35phrases shall have the meanings given to them in this subsection
36unless the context clearly indicates otherwise:

37"Amounts paid." The phrase means:

38(i) amounts actually paid; or

39(ii) at the taxpayer's election, amounts promised to be paid
40under firm purchase contracts actually executed during any
41calendar year: Provided, however, That there shall be no
42duplication of "amounts paid" under this definition.

43"Qualifying capital expenditures." Amounts paid by a
44taxpayer for the purchase of items of plant, machinery or
45equipment for use by the taxpayer within this Commonwealth in
46the manufacture and sale of malt or brewed beverages: Provided,
47however, That the total amount of qualifying capital
48expenditures made by a taxpayer within a single calendar year
49shall not exceed two hundred thousand dollars ($200,000) and
50must have been made on or after January 1, 2010.

51"Secretary." The Secretary of Revenue of the Commonwealth of

1Pennsylvania where not otherwise qualified.

2"Taxpayer." A manufacturer of malt or brewed beverages
3claiming a tax credit or credits under this section after making
4a qualifying capital expenditure.

5(2) Except as otherwise provided in clause (1), the
6definitions in section 2002 of the "Tax Reform Code of 1971," 
7shall apply to this section.

8Amend Bill, page 249, by inserting between lines 27 and 28

9(vii) Determine whether the current quota system in
10each individual county is meeting consumer demand.

11Amend Bill, page 250, by inserting between lines 21 and 22

12(vii) Determine whether the current quota system in
13each individual county is meeting consumer demand.

14Amend Bill, page 251, by inserting between lines 2 and 3

15Section 29. The regulations of the board at 40 Pa. Code §§
163.52 (relating to connection with other business), 3.53
17(relating to restriction on storage and sales where board has
18approved connection with other business), 3.54 (relating to
19separation between licensed premises and other business) and
203.56 (relating to licensed premises operated in conjunction with
21other business) are abrogated to the extent the regulations are
22inconsistent with this act.

23Amend Bill, page 251, line 3, by striking out "29" and 
24inserting

25 30

26Amend Bill, page 251, line 14, by striking out "30" and 
27inserting

28 31