H0763B1328A07551 MSP:JMT 10/05/20 #90 A07551
AMENDMENTS TO HOUSE BILL NO. 763
Sponsor: SENATOR STEFANO
Printer's No. 1328
Amend Bill, page 1, line 21, by inserting after "licensees,"
for interlocking business prohibited,
Amend Bill, page 1, line 23, by inserting after "LICENSEES"
, for unlawful acts relative to liquor, malt and brewed
beverages and licensees
Amend Bill, page 2, lines 2 through 4, by striking out all of
said lines and inserting
Section 1. Sections 401(a), 406(a)(4) and 407(a) of the act
of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, are
amended to read:
Amend Bill, page 3, line 26, by striking out "LIQUOR OR"
Amend Bill, page 4, by inserting between lines 16 and 17
Section 2. Section 411(e) of the act is amended and the
section is amended by adding a subsection to read:
Section 411. Interlocking Business Prohibited.--* * *
(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,
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
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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 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 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 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, That, notwithstanding any other
provision of this section, an entity licensed as a limited
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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 if the
person is not employed as alcohol service personnel or as
manager.]
(e.1) Nothing in subsection (e) shall prohibit any of the
following:
(1) 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 if the person is
not employed as alcohol service personnel or as manager.
(2) A person who has an ownership interest in a brewery
license from being employed by an entity that holds a hotel,
restaurant, eating place or club license if the person has no
job duties or responsibilities on, or connected with, the
licensed premises in any capacity.
* * *
Section 3. Section 442(a)(1), 492(7), 493(11) and 499(a.1)
(4) of the act are amended to read:
Amend Bill, page 5, by inserting between lines 18 and 19
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--
* * *
(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
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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
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 if the
person is not employed as alcohol service personnel or as a
manager[.]: And, provided further, That nothing in this section
shall prohibit a person who has an ownership interest in a
brewery license from being employed by an entity that holds a
hotel, restaurant, eating place or club license if the person
has no job duties or responsibilities on, or connected with, the
licensed premises in any capacity.
* * *
Amend Bill, page 5, line 28, by striking out "2" and
inserting
4
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