PRIOR PRINTER'S NO. 72                        PRINTER'S NO. 3425

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 68 Session of 1985


        INTRODUCED BY LLOYD, PRESTON, MORRIS, BELARDI, RYBAK, BATTISTO,
           MICHLOVIC, STABACK, KUKOVICH, REBER, SEVENTY, PISTELLA,
           NAHILL, VAN HORNE, D. R. WRIGHT, ITKIN, CAWLEY, BLAUM,
           BELFANTI, McVERRY AND TIGUE, JANUARY 23, 1985

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           MAY 5, 1986

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
     2     act relating to alcoholic liquors, alcohol and malt and
     3     brewed beverages; amending, revising, consolidating and
     4     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 providing FOR special occasion permits for local arts  <--
    18     agencies; CREATING THE PENNSYLVANIA GRAPE DEVELOPMENT AND      <--
    19     PROMOTION COMMITTEE AND DEFINING ITS POWERS AND DUTIES;
    20     IMPOSING A SPECIAL TAX ON WINE SOLD BY THE BOARD AND
    21     PROVIDING FOR THE COLLECTION AND PAYMENT OF SUCH TAX; AND
    22     IMPOSING FURTHER DUTIES UPON THE DEPARTMENT OF REVENUE AND
    23     THE BOARD.

    24     The General Assembly of the Commonwealth of Pennsylvania
    25  hereby enacts as follows:
    26     Section 1.  Section 102 of the act of April 12, 1951 (P.L.90,
    27  No.21), known as the Liquor Code, is amended by adding a

     1  definition to read:
     2     Section 102.  Definitions.--The following words or phrases,
     3  unless the context clearly indicates otherwise, shall have the
     4  meanings ascribed to them in this section:
     5     * * *
     6     "Local arts agency" shall mean a non-profit corporation which
     7  has been granted a tax-exempt status by the Internal Revenue
     8  Service, has as its primary purpose the developing and
     9  sustaining of the cultural life of the community, owns and
    10  operates a facility in which various arts and crafts classes and
    11  workshops are conducted and in which art is exhibited and
    12  musical performances are presented, employs a full-time
    13  professional staff, and annually sponsors at least one arts
    14  festival consisting of exhibits and demonstrations by artists
    15  and craftsmen and live performances by musicians.
    16     * * *
    17     Section 2.  Section 408.4(a) AND (C) of the act, amended July  <--
    18  9, 1984 (P.L.659, No.137), is AND JULY 3, 1985 (P.L.134, NO.36),  <--
    19  ARE amended to read:
    20     Section 408.4.  Special Occasion Permits.--(a)  Upon
    21  application of any hospital, church, synagogue, volunteer fire
    22  company, local arts agency or bona fide sportsmen's club in
    23  existence for at least ten years and upon payment of a fee of
    24  fifteen dollars ($15) per day, the board shall issue a special
    25  occasion permit good for a period of not more than five
    26  consecutive days. Special occasion permits may also be issued to
    27  a museum operated by a nonprofit corporation in a city of the
    28  third class or a nonprofit corporation engaged in the performing
    29  arts in a city of the third class for a period of not more than
    30  six nonconsecutive or ten consecutive days at a fee of fifteen
    19850H0068B3425                  - 2 -

     1  dollars ($15) per day.
     2     * * *
     3     (C)  SUCH SPECIAL OCCASION PERMIT SHALL ONLY BE VALID FOR THE  <--
     4  NUMBER OF DAYS STATED IN THE PERMIT. ONLY [ONE PERMIT] TWO
     5  PERMITS MAY BE ISSUED TO ANY PERMITTEE DURING THE YEAR.
     6  PROVIDED, THAT A MUSEUM OPERATED BY A NONPROFIT CORPORATION IN A
     7  CITY OF THE THIRD CLASS AND A NONPROFIT CORPORATION ENGAGED IN
     8  THE PERFORMING ARTS IN A CITY OF THE THIRD CLASS MAY BE ISSUED
     9  NO MORE THAN SIX PERMITS DURING THE YEAR, EACH PERMIT BEING
    10  VALID FOR ONLY ONE DAY, OR IN THE ALTERNATIVE, ONE PERMIT VALID
    11  FOR NO MORE THAN A TOTAL OF TEN CONSECUTIVE DAYS PER YEAR, WHICH
    12  MAY BE ISSUED ONLY DURING THE MONTH OF AUGUST.
    13     * * *
    14     SECTION 3.  THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
    15                           ARTICLE IV-A.
    16    THE PENNSYLVANIA GRAPE DEVELOPMENT AND PROMOTION COMMITTEE.
    17     SECTION 401-A.  INTENTION OF LEGISLATURE.--WITH RESPECT TO
    18  THE PROVISIONS OF THIS ACT, IT IS THE PURPOSE OF THIS ARTICLE TO
    19  PROMOTE AND FOSTER THE GROWTH OF THE PENNSYLVANIA GRAPE AND WINE
    20  INDUSTRY.
    21     SECTION 402-A.  THE PENNSYLVANIA GRAPE DEVELOPMENT AND
    22  PROMOTION COMMITTEE.--(A)  THERE IS HEREBY CREATED THE
    23  PENNSYLVANIA GRAPE DEVELOPMENT AND PROMOTION COMMITTEE,
    24  HEREINAFTER REFERRED TO AS THE COMMITTEE, CONSISTING OF NINE
    25  MEMBERS. THE MEMBERS SHALL BE THE SECRETARY OF AGRICULTURE, OR
    26  HIS DESIGNEE, WHO SHALL BE THE CHAIRMAN OF THE COMMITTEE; THE
    27  SECRETARY OF COMMERCE, OR HIS DESIGNEE; TWO PENNSYLVANIA GRAPE
    28  PROCESSORS WHO RECEIVE A MAJOR PORTION OF THEIR INCOME FROM THE
    29  PRODUCTION OF GRAPE PRODUCTS OTHER THAN WINE, SUCH AS, JUICES,
    30  JAMS AND JELLIES; TWO HOLDERS OF A PENNSYLVANIA WINERY LICENSE;
    19850H0068B3425                  - 3 -

     1  TWO PENNSYLVANIA GRAPE GROWERS WHO RECEIVE THE MAJOR PORTION OF
     2  THEIR FARM INCOME FROM THE PRODUCTION OF GRAPES; AND ONE PUBLIC
     3  MEMBER, ALL TO BE APPOINTED BY THE SECRETARY OF AGRICULTURE. IN
     4  ADDITION, THERE SHALL BE TWO EX OFFICIO MEMBERS WHO SHALL BE
     5  APPOINTED BY THE DEAN OF THE COLLEGE OF AGRICULTURE OF THE
     6  COMMONWEALTH'S LAND GRANT UNIVERSITY IN EXISTENCE ON THE
     7  EFFECTIVE DATE OF THIS ACT.
     8     (B)  ONE GRAPE GROWER, ONE GRAPE PROCESSOR AND ONE HOLDER OF
     9  A LIMITED WINERY LICENSE SHALL EACH SERVE AN INITIAL TERM OF TWO
    10  YEARS. THE REMAINING MEMBERS SHALL SERVE FOR A TERM OF FOUR
    11  YEARS. THEREAFTER, ALL MEMBERS SHALL SERVE A TERM OF FOUR YEARS.
    12  NO MEMBER SHALL SERVE MORE THAN TWO CONSECUTIVE TERMS. THE
    13  COMMITTEE MAY REMOVE ANY MEMBER FOR CAUSE.
    14     (C)  MEMBERS SHALL BE APPOINTED TO FILL VACANCIES CAUSED BY
    15  DEATH, RESIGNATION OR REMOVAL IN THE SAME MANNER PRESCRIBED FOR
    16  REGULAR APPOINTMENT TO THE COMMITTEE. ANY MEMBER APPOINTED TO
    17  FILL A VACANCY OCCURRING PRIOR TO THE EXPIRATION OF THE TERM FOR
    18  WHICH HIS PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE FOR THE
    19  REMAINDER OF THE TERM. ANY MEMBER SHALL CONTINUE IN OFFICE
    20  SUBSEQUENT TO THE EXPIRATION DATE OF HIS TERM UNTIL A SUCCESSOR
    21  TAKES OFFICE OR UNTIL A PERIOD OF ONE YEAR HAS ELAPSED,
    22  WHICHEVER OCCURS FIRST.
    23     (D)  ALL MEMBERS OF THE COMMITTEE SHALL BE ENTITLED TO THEIR
    24  ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF
    25  THEIR DUTIES AS MEMBERS, PAYABLE FROM MONEYS RECEIVED FROM THE
    26  COMMITTEE'S SPECIAL ACCOUNT CREATED UNDER SECTION 405-A.
    27     (E)  A MAJORITY OF THE COMMITTEE SHALL CONSTITUTE A QUORUM.
    28     SECTION 403-A.  POWERS AND DUTIES OF PENNSYLVANIA GRAPE
    29  DEVELOPMENT AND PROMOTION COMMITTEE.--THE PENNSYLVANIA GRAPE
    30  DEVELOPMENT AND PROMOTION COMMITTEE SHALL:
    19850H0068B3425                  - 4 -

     1     (1)  PROMOTE THE SALE OF WINES PRODUCED FROM GRAPES, FRUITS,
     2  HONEY AND OTHER AGRICULTURAL PRODUCTS GROWN WITHIN THE
     3  COMMONWEALTH OF PENNSYLVANIA FOR THE PURPOSE OF MAINTAINING AND
     4  EXPANDING PRESENT MARKETS AND CREATING NEW AND LARGER
     5  INTRASTATE, INTERSTATE AND FOREIGN MARKETS FOR PENNSYLVANIA
     6  WINES.
     7     (2)  PROMOTE THE SALE OF GRAPES AND GRAPE PRODUCTS GROWN AND
     8  PRODUCED WITHIN THE COMMONWEALTH.
     9     (3)  CONDUCT AND CONTRACT WITH THE COMMONWEALTH'S PRESENT
    10  LAND GRANT UNIVERSITY REFERRED TO IN SECTION 402-A TO CONDUCT
    11  RESEARCH AND EXTENSION PROGRAMS CONCERNING WINE, GRAPES AND
    12  GRAPE PRODUCTS. THE COMMITTEE SHALL EXPEND NO LESS THAN THIRTY
    13  PER CENTUM AND NO MORE THAN SEVENTY PER CENTUM OF ALL OF THE
    14  FUNDS IT RECEIVES FROM THE SPECIAL ACCOUNT FOR CONDUCTING
    15  RESEARCH AND EXTENSION PROGRAMS CONCERNING WINE, GRAPES AND
    16  GRAPE PRODUCTS.
    17     (4)  KEEP ACCURATE BOOKS, RECORDS AND ACCOUNTS WHICH SHALL BE
    18  OPEN TO INSPECTION AND AUDIT BY THE AUDITOR GENERAL.
    19     (5)  DO AND PERFORM ALL ACTS AND EXERCISE ALL POWERS
    20  INCIDENTAL TO, IN CONNECTION WITH, OR CONSIDERED REASONABLY
    21  NECESSARY, PROPER OR ADVISABLE IN EFFECTUATING THE PURPOSES OF
    22  THIS ARTICLE.
    23     SECTION 404-A.  MONITORING OF COMMITTEE.--(A)  THE CHAIRMAN
    24  OF THE COMMITTEE SHALL MONITOR THE CONDUCT OF THE COMMITTEE TO
    25  INSURE THAT:
    26     (1)  THE COMMITTEE IS OPERATING WITHIN THE REQUIREMENTS OF
    27  SECTIONS 401-A, 402-A AND 403-A.
    28     (2)  THE COMMITTEE'S PROGRAM IS SELF-SUPPORTING.
    29     (3)  THE COMMITTEE KEEPS ALL RECORDS THAT ARE REQUIRED BY
    30  AGENCIES OF THE COMMONWEALTH.
    19850H0068B3425                  - 5 -

     1     (B)  THE CHAIRMAN OF THE COMMITTEE SHALL CAUSE TO BE
     2  ACCOMPLISHED AN AUDIT OF THE BOOKS AND RECORDS OF THE COMMITTEE
     3  AT LEAST ONCE ANNUALLY.
     4     SECTION 405-A.  SPECIAL ACCOUNT.--(A)  THERE IS HEREBY
     5  ESTABLISHED A SEPARATE ACCOUNT WITHIN THE STATE TREASURY TO BE
     6  KNOWN AS THE PENNSYLVANIA GRAPE DEVELOPMENT AND PROMOTION
     7  SPECIAL ACCOUNT. ALL MONEYS IN THIS SPECIAL ACCOUNT SHALL BE
     8  DISBURSED THROUGH THE DEPARTMENT OF AGRICULTURE TO THE
     9  PENNSYLVANIA GRAPE DEVELOPMENT COMMITTEE AND THE COLLEGE OF
    10  AGRICULTURE OF THE COMMONWEALTH'S PRESENT LAND GRANT UNIVERSITY
    11  TO CARRY OUT THE PURPOSES OF THIS ARTICLE.
    12     (B)  THE COMMITTEE SHALL PUBLISH ANNUALLY AN ACTIVITY AND
    13  FINANCIAL REPORT OF THE PRECEDING FISCAL YEAR.
    14                            ARTICLE V-A.
    15                  GRAPE INDUSTRY DEVELOPMENT TAX.
    16     SECTION 501-A.  DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES
    17  WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM
    18  IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
    19     "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF REVENUE OF THE
    20  COMMONWEALTH.
    21     "FISCAL MONTH" SHALL MEAN THE MONTHLY PERIOD ESTABLISHED,
    22  FROM TIME TO TIME, BY THE BOARD FOR THE PURPOSE OF CONDUCTING
    23  BUSINESS.
    24     "WINE" SHALL MEAN ANY BEVERAGE CONTAINING MORE THAN ONE-HALF
    25  OF ONE PERCENTUM AND NOT MORE THAN TWENTY-FOUR PERCENTUM
    26  ABSOLUTE ALCOHOL BY VOLUME, OBTAINED BY THE FERMENTATION OF THE
    27  NATURAL SUGAR CONTENTS OF FRUITS, HONEY OR OTHER AGRICULTURAL
    28  PRODUCTS CONTAINING SUGAR, INCLUDING ALL NATURAL WINES AND
    29  FORTIFIED WINES WITHIN THE ABOVE LIMITS, BUT NOT INCLUDING ANY
    30  BEVERAGE KNOWN AS BEER, LAGER BEER, ALE, PORTER OR SIMILAR
    19850H0068B3425                  - 6 -

     1  FERMENTED MALT LIQUOR OBTAINED BY ALCOHOLIC FERMENTATION OF AN
     2  INFUSION OR DECOCTION OF BARLEY, MALT AND HOPS IN WATER.
     3     SECTION 502-A.  IMPOSITION OF TAX.--A SPECIAL STATE TAX IS
     4  HEREBY IMPOSED AND ASSESSED AT THE RATE OF FIVE CENTS (5¢) PER
     5  GALLON ON ALL WINE SOLD AT RETAIL IN PENNSYLVANIA. THE TAX
     6  HEREIN IMPOSED SHALL BE COLLECTED BY THE BOARD AND BY LIMITED
     7  WINERIES. THE AMOUNT OF THE TAX COLLECTED UNDER THE PROVISIONS
     8  OF THIS ACT SHALL BE PAID INTO THE STATE TREASURY, THROUGH THE
     9  DEPARTMENT, IN THE MANNER AND WITHIN THE TIMES HEREIN SPECIFIED
    10  AND, WITHIN TEN DAYS THEREAFTER, SHALL BE PAID INTO AND CREDITED
    11  TO THE PENNSYLVANIA GRAPE DEVELOPMENT AND PROMOTION SPECIAL
    12  ACCOUNT.
    13     SECTION 503-A.  RECEIPTS.--IT SHALL BE THE DUTY OF THE BOARD
    14  AND LIMITED WINERIES TO TRANSMIT TO THE DEPARTMENT, ON OR BEFORE
    15  THE FIFTEENTH DAY OF EACH FISCAL MONTH, A STATEMENT OF THEIR
    16  RECEIPTS FROM SALES OF WINE AND THE SPECIAL TAX COLLECTED DURING
    17  THE PRECEDING MONTH AND SUCH OTHER INFORMATION AS MAY BE
    18  NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION. AT THAT
    19  TIME IT SHALL BE THE DUTY OF THE BOARD AND LIMITED WINERIES TO
    20  PAY TO THE DEPARTMENT THE TAX IMPOSED UPON THE WINE BY THE
    21  PROVISIONS OF THIS ARTICLE.
    22     (B)  THE BOARD AND LIMITED WINERIES MAY, IN THEIR DISCRETION,
    23  ADD THE TAX IMPOSED BY THIS ARTICLE TO THE RETAIL PRICE AT WHICH
    24  WINES ARE SOLD AND ELIMINATE ANY ACCOUNTING OF SUCH SPECIAL TAX
    25  SEPARATE FROM SALES PRICES. THE AMOUNT OF TAX COLLECTED BY THE
    26  BOARD AND LIMITED WINERIES SHALL BE PAYABLE AS PROVIDED IN THIS
    27  ARTICLE.
    28     SECTION 504-A.  EXPIRATION.--THIS ARTICLE SHALL EXPIRE
    29  FIFTEEN (15) YEARS AFTER ENACTMENT UNLESS EXTENDED BY STATUTE.
    30     Section 3 4.  This act shall take effect in 60 days.           <--
    A4L47JRW/19850H0068B3425         - 7 -