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