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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 2811, 3910, 4072         PRINTER'S NO. 4251

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2105 Session of 2003


        INTRODUCED BY MARSICO, CIVERA, DENLINGER, FABRIZIO, HARHAI,
           HENNESSEY, O'NEILL, SAINATO, TIGUE, WILT AND YOUNGBLOOD,
           OCTOBER 16, 2003

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 30, 2004

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
     2     reenacted, "An act relating to alcoholic liquors, alcohol and
     3     malt and brewed beverages; amending, revising, consolidating
     4     and 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 defining "public venue"; and further providing for     <--
    18     GENERAL POWERS OF THE PENNSYLVANIA LIQUOR CONTROL BOARD, FOR   <--
    19     SALES BY PENNSYLVANIA LIQUOR STORES, FOR unlawful acts
    20     relative to liquor, malt and brewed beverages and licensees
    21     AND FOR LIMITED WINERIES; AND PROVIDING FOR DISTILLERIES.      <--

    22     The General Assembly of the Commonwealth of Pennsylvania
    23  hereby enacts as follows:
    24     Section 1.  The definition of "public venue" in section 102
    25  of the act of April 12, 1951 (P.L.90, No.21), known as the
    26  Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14)


     1  and amended July 17, 2003 (P.L.63, No.15), is amended 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     "Public venue" shall mean a stadium, arena, convention center
     7  with permanent seating, museum, amphitheater or similar
     8  structure. If the public venue is a cruise terminal owned or
     9  leased by a port authority created under the act of June 12,
    10  1931 (P.L.575, No.200), entitled "An act providing for joint
    11  action by Pennsylvania and New Jersey in the development of the
    12  ports on the lower Delaware River, and the improvement of the
    13  facilities for transportation across the river; authorizing the
    14  Governor, for these purposes, to enter into an agreement with
    15  New Jersey; creating The Delaware River Joint Commission and
    16  specifying the powers and duties thereof, including the power to
    17  finance projects by the issuance of revenue bonds; transferring
    18  to the new commission all the powers of the Delaware River
    19  Bridge Joint Commission; and making an appropriation," it shall
    20  have no permanent seating requirement. If the public venue is an
    21  open-air amphitheater owned by a port authority created under
    22  the act of December 6, 1972 (P.L.1392, No.298), known as the
    23  "Third Class City Port Authority Act," it shall have no
    24  permanent seating requirement. If the public venue is owned by a
    25  political subdivision, a municipal authority, the Commonwealth,
    26  an authority created under the act of July 29, 1953 (P.L.1034,
    27  No.270), known as the "Public Auditorium Authorities Law," an
    28  authority created under Article XXV-A of the act of July 28,
    29  1953 (P.L.723, No.230), known as the "Second Class County Code,"
    30  an art museum established under the authority of the act of
    20030H2105B4251                  - 2 -     

     1  April 6, 1791 (3 Sm.L.20, No.1536), entitled "An act to confer
     2  on certain associations of the citizens of this commonwealth the
     3  powers and immunities of corporations, or bodies politic in
     4  law," or an authority created under Article XXIII (n) or (o) of
     5  the act of August 9, 1955 (P.L.323, No.130), known as "The
     6  County Code," it shall have permanent seating for at least one
     7  thousand (1,000) people; otherwise, it shall have permanent
     8  seating for at least three thousand (3,000) people. The term
     9  shall also mean any regional history center, multipurpose
    10  cultural and science facility [or], museum or convention or
    11  trade show center without permanent seating, regardless of owner  <--
    12  and seating capacity, that has a floor area of at least sixty
    13  thousand (60,000) square feet in one building. The term shall
    14  also mean a convention or conference center owned by a city of
    15  the third class, regardless of seating capacity, that has a
    16  floor area of at least fifteen thousand (15,000) square feet in
    17  one building.
    18     * * *
    19     SECTION 2.  SECTION 207(A) OF THE ACT, AMENDED DECEMBER 30,    <--
    20  2003 (P.L.423, NO.59), IS AMENDED TO READ:
    21     SECTION 207.  GENERAL POWERS OF BOARD.--UNDER THIS ACT, THE
    22  BOARD SHALL HAVE THE POWER AND ITS DUTY SHALL BE:
    23     (A)  TO BUY, IMPORT OR HAVE IN ITS POSSESSION FOR SALE AND
    24  SELL LIQUOR, ALCOHOL, CORKSCREWS, WINE AND LIQUOR ACCESSORIES,
    25  TRADE PUBLICATIONS, WINE OR LIQUOR-SCENTED CANDLES AND WINE
    26  GLASSES IN THE MANNER SET FORTH IN THIS ACT: PROVIDED, HOWEVER,
    27  THAT ALL PURCHASES SHALL BE MADE SUBJECT TO THE APPROVAL OF THE
    28  STATE TREASURER, OR HIS DESIGNATED DEPUTY. THE BOARD SHALL BUY
    29  LIQUOR AND ALCOHOL AT THE LOWEST PRICE AND IN THE GREATEST
    30  VARIETY REASONABLY OBTAINABLE.
    20030H2105B4251                  - 3 -     

     1     * * *
     2     SECTION 3.  SECTION 305(F) AND (H) OF THE ACT, AMENDED JULY
     3  17, 2003(P.L.63, NO.15) AND DECEMBER 30, 2003 (P.L.423, NO.59),
     4  ARE AMENDED TO READ:
     5     SECTION 305.  SALES BY PENNSYLVANIA LIQUOR STORES.--* * *
     6     (F)  EVERY PURCHASER OF LIQUOR, ALCOHOL, CORKSCREWS, WINE OR
     7  LIQUOR ACCESSORIES, TRADE PUBLICATIONS, WINE OR LIQUOR-SCENTED
     8  CANDLES OR WINE GLASSES FROM A PENNSYLVANIA LIQUOR STORE SHALL
     9  RECEIVE A NUMBERED RECEIPT WHICH SHALL SHOW THE PRICE PAID
    10  THEREFOR AND SUCH OTHER INFORMATION AS THE BOARD MAY PRESCRIBE.
    11  COPIES OF ALL RECEIPTS ISSUED BY A PENNSYLVANIA LIQUOR STORE
    12  SHALL BE RETAINED BY AND SHALL FORM PART OF THE RECORDS OF SUCH
    13  STORE.
    14     * * *
    15     (H)  EVERY PENNSYLVANIA LIQUOR STORE SHALL SELL GIFT
    16  CERTIFICATES WHICH MAY BE REDEEMED FOR LIQUOR. IN ADDITION, THE
    17  BOARD MAY SELL CORKSCREWS, WINE AND LIQUOR ACCESSORIES, WINE OR
    18  LIQUOR-SCENTED CANDLES, TRADE PUBLICATIONS AND WINE SLEEVES AT
    19  PENNSYLVANIA LIQUOR STORES.
    20     Section 2 4.  Section 493(24) of the act is amended to read:   <--
    21     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    22  Brewed Beverages and Licensees.--The term "licensee," when used
    23  in this section, shall mean those persons licensed under the
    24  provisions of Article IV, unless the context clearly indicates
    25  otherwise.
    26     It shall be unlawful--
    27     * * *
    28     (24)  Things of Value Offered as Inducement. For any licensee
    29  under the provisions of this article, or the board or any
    30  manufacturer, or any employe or agent of a manufacturer,
    20030H2105B4251                  - 4 -     

     1  licensee or of the board, to offer to give anything of value or
     2  to solicit or receive anything of value as a premium for the
     3  return of caps, stoppers, corks, stamps or labels taken from any
     4  bottle, case, barrel or package containing liquor or malt or
     5  brewed beverage, or to offer or give or solicit or receive
     6  anything of value as a premium or present to induce directly the
     7  purchase of liquor or malt or brewed beverage, or for any
     8  licensee, manufacturer or other person to offer or give to trade
     9  or consumer buyers any prize, premium, gift or other inducement
    10  to purchase liquor or malt or brewed beverages, except
    11  advertising novelties of nominal value which the board shall
    12  define. This section shall not prevent any manufacturer or any
    13  agent of a manufacturer from offering [only on licensed           <--
    14  premises] and honoring coupons which offer monetary rebates on    <--
    15  purchases of wines and spirits through State Liquor Stores [and   <--
    16  purchases of malt or brewed beverages] in accordance with         <--
    17  conditions or regulations established by the board. Further, no   <--
    18  manufacturer or any agent of a manufacturer shall honor any
    19  coupons without proof of purchase [in the form of a sales slip
    20  or receipt attached to the coupons]. [FURTHER, NO MANUFACTURER    <--
    21  OR ANY AGENT OF A MANUFACTURER SHALL HONOR ANY COUPONS WITHOUT
    22  PROOF OF PURCHASE IN THE FORM OF A SALES SLIP OR RECEIPT
    23  ATTACHED TO THE COUPONS.] THE BOARD MAY REDEEM COUPONS OFFERED
    24  BY A MANUFACTURER OR AN AGENT OF A MANUFACTURER AT THE TIME OF
    25  PURCHASE. COUPONS OFFERED BY A MANUFACTURER OR AN AGENT OF A
    26  MANUFACTURER SHALL NOT BE REDEEMED WITHOUT PROOF OF PURCHASE.
    27  This section shall not apply to the return of any monies
    28  specifically deposited for the return of the original container
    29  to the owners thereof.
    30     * * *
    20030H2105B4251                  - 5 -     

     1     SECTION 5.  SECTION 505.2 OF THE ACT, AMENDED NOVEMBER 10,     <--
     2  1999 (P.L.514, NO.47), DECEMBER 9, 2002 (P.L.1653, NO.212),
     3  DECEMBER 16, 2002 (P.L.1806, NO.221) AND JULY 17, 2003 (P.L.63,
     4  NO.15), IS AMENDED TO READ:
     5     SECTION 505.2.  LIMITED WINERIES.--(A)  IN THE INTEREST OF
     6  PROMOTING TOURISM AND RECREATIONAL DEVELOPMENT IN PENNSYLVANIA,
     7  HOLDERS OF A LIMITED WINERY LICENSE MAY:
     8     (1)  PRODUCE ALCOHOLIC CIDERS, WINES AND WINE COOLERS,
     9  SUBJECT TO THE EXCEPTIONS PROVIDED UNDER THIS SECTION, ONLY FROM
    10  FRUITS GROWN IN PENNSYLVANIA.
    11     (2)  SELL ALCOHOLIC CIDER, WINE AND WINE COOLERS PRODUCED BY
    12  THE LIMITED WINERY OR PURCHASED IN BULK IN BOND FROM ANOTHER
    13  PENNSYLVANIA LIMITED WINERY ON THE LICENSED PREMISES, UNDER SUCH
    14  CONDITIONS AND REGULATIONS AS THE BOARD MAY ENFORCE, TO THE
    15  BOARD, TO INDIVIDUALS AND TO BREWERY, HOTEL, RESTAURANT, CLUB
    16  AND PUBLIC SERVICE LIQUOR LICENSEES, AND TO PENNSYLVANIA WINERY
    17  LICENSEES: PROVIDED, THAT A LIMITED WINERY SHALL NOT, IN ANY
    18  CALENDAR YEAR, PURCHASE ALCOHOLIC CIDER OR WINE PRODUCED BY
    19  OTHER LIMITED WINERIES IN AN AMOUNT IN EXCESS OF FIFTY PER
    20  CENTUM OF THE ALCOHOLIC CIDER OR WINE PRODUCED BY THE PURCHASING
    21  LIMITED WINERY IN THE PRECEDING CALENDAR YEAR. IN ADDITION, THE
    22  HOLDER OF A LIMITED WINERY LICENSE MAY PURCHASE WINE IN BOTTLES
    23  FROM ANOTHER PENNSYLVANIA LIMITED WINERY IF THESE WINES UNDERGO
    24  A SECOND FERMENTATION PROCESS. SUCH WINE MAY BE SOLD IN BOTTLES
    25  BEARING THE PURCHASING LIMITED WINERY'S LABEL OR THE PRODUCING
    26  LIMITED WINERY'S LABEL. SUCH WINES, IF SOLD BY THE BOARD, MAY BE
    27  SOLD BY THE PRODUCING LIMITED WINERY TO THE PURCHASING LIMITED
    28  WINERY AT A PRICE LOWER THAN THE PRICE CHARGED BY THE BOARD.
    29     (3)  SEPARATELY OR IN CONJUNCTION WITH OTHER LIMITED
    30  WINERIES, SELL ALCOHOLIC CIDER, WINE AND WINE COOLERS PRODUCED
    20030H2105B4251                  - 6 -     

     1  BY THE LIMITED WINERY ON NO MORE THAN FIVE (5) BOARD-APPROVED
     2  LOCATIONS OTHER THAN THE LICENSED PREMISES, WITH NO BOTTLING OR
     3  PRODUCTION REQUIREMENT AT THOSE ADDITIONAL BOARD-APPROVED
     4  LOCATIONS AND UNDER SUCH CONDITIONS AND REGULATIONS AS THE BOARD
     5  MAY ENFORCE, TO THE BOARD, TO INDIVIDUALS AND TO BREWERY, HOTEL,
     6  RESTAURANT, CLUB AND PUBLIC SERVICE LIQUOR LICENSEES. IF TWO OR
     7  MORE LIMITED WINERIES APPLY TO OPERATE AN ADDITIONAL BOARD-
     8  APPROVED LOCATION IN CONJUNCTION WITH EACH OTHER, THE WINERIES
     9  NEED ONLY HAVE ONE BOARD-APPROVED MANAGER FOR THE LOCATION, NEED
    10  ONLY PAY ONE APPLICATION FEE AND NEED NOT DESIGNATE SPECIFIC OR
    11  DISTINCT AREAS FOR EACH WINERY'S LICENSED AREA. EACH LIMITED
    12  WINERY MUST FILE AN APPLICATION FOR SUCH AN ADDITIONAL BOARD-
    13  APPROVED LOCATION, AND SUCH LOCATION SHALL COUNT AS ONE OF THE
    14  FIVE PERMITTED FOR EACH LIMITED WINERY. EACH LIMITED WINERY IS
    15  RESPONSIBLE FOR KEEPING ONLY ITS OWN COMPLETE RECORDS. A LIMITED
    16  WINERY MAY BE CITED FOR A VIOLATION OF THE RECORDKEEPING
    17  REQUIREMENTS OF SECTIONS 512 AND 513 PERTAINING TO ITS OWN
    18  RECORDS ONLY.
    19     (4)  AT THE DISCRETION OF THE BOARD, OBTAIN A SPECIAL PERMIT
    20  TO PARTICIPATE IN ALCOHOLIC CIDER, WINE AND FOOD EXPOSITIONS OFF
    21  THE LICENSED PREMISES. A SPECIAL PERMIT SHALL BE ISSUED UPON
    22  PROPER APPLICATION AND PAYMENT OF A FEE OF THIRTY DOLLARS ($30)
    23  PER DAY FOR EACH DAY OF PERMITTED USE, NOT TO EXCEED FIVE (5)
    24  CONSECUTIVE DAYS. THE TOTAL NUMBER OF DAYS FOR ALL THE SPECIAL
    25  PERMITS MAY NOT EXCEED FORTY (40) DAYS IN ANY CALENDAR YEAR. A
    26  SPECIAL PERMIT SHALL ENTITLE THE HOLDER TO ENGAGE IN THE SALE OF
    27  ALCOHOLIC CIDER OR WINE PRODUCED BY THE BOTTLE OR IN CASE LOTS
    28  BY THE PERMITTEE UNDER THE AUTHORITY OF A LIMITED WINERY
    29  LICENSE. HOLDERS OF SPECIAL PERMITS MAY PROVIDE TASTING SAMPLES
    30  OF WINES IN INDIVIDUAL PORTIONS NOT TO EXCEED ONE FLUID OUNCE.
    20030H2105B4251                  - 7 -     

     1  SAMPLES AT ALCOHOLIC CIDER, WINE AND FOOD EXPOSITIONS MAY BE
     2  SOLD OR OFFERED FREE OF CHARGE. EXCEPT AS PROVIDED HEREIN,
     3  LIMITED WINERIES UTILIZING SPECIAL PERMITS SHALL BE GOVERNED BY
     4  ALL APPLICABLE PROVISIONS OF THIS ACT AS WELL AS BY ALL
     5  APPLICABLE REGULATIONS OR CONDITIONS ADOPTED BY THE BOARD.
     6     FOR THE PURPOSES OF THIS CLAUSE, "ALCOHOLIC CIDER, WINE AND
     7  FOOD EXPOSITIONS" ARE DEFINED AS AFFAIRS HELD INDOORS OR
     8  OUTDOORS WITH THE PRIMARY INTENT OF EDUCATING THOSE IN
     9  ATTENDANCE OF THE AVAILABILITY, NATURE AND QUALITY OF
    10  PENNSYLVANIA-PRODUCED ALCOHOLIC CIDERS AND WINES IN CONJUNCTION
    11  WITH SUITABLE FOOD DISPLAYS, DEMONSTRATIONS AND SALES. ALCOHOLIC
    12  CIDER, WINE AND FOOD EXPOSITIONS MAY ALSO INCLUDE ACTIVITIES
    13  OTHER THAN ALCOHOLIC CIDER, WINE AND FOOD DISPLAYS, INCLUDING
    14  ARTS AND CRAFTS, MUSICAL ACTIVITIES, CULTURAL EXHIBITS,
    15  AGRICULTURAL EXHIBITS AND SIMILAR ACTIVITIES.
    16     (5)  APPLY FOR AND HOLD A HOTEL LIQUOR LICENSE, A RESTAURANT
    17  LIQUOR LICENSE OR A MALT AND BREWED BEVERAGES RETAIL LICENSE TO
    18  SELL FOR CONSUMPTION AT THE RESTAURANT OR LIMITED WINERY ON THE
    19  LICENSED WINERY PREMISES, LIQUOR, WINE AND MALT OR BREWED
    20  BEVERAGES REGARDLESS OF THE PLACE OF MANUFACTURE UNDER THE SAME
    21  CONDITIONS AND REGULATIONS AS ANY OTHER HOTEL LIQUOR LICENSE,
    22  RESTAURANT LIQUOR LICENSE OR MALT AND BREWED BEVERAGES RETAIL
    23  LICENSE.
    24     (6)  (I)  SECURE A PERMIT FROM THE BOARD TO ALLOW THE HOLDER
    25  OF A LIMITED WINERY LICENSE TO USE UP TO TWENTY-FIVE PER CENTUM
    26  PERMITTED FRUIT, NOT WINE, IN THE CURRENT YEAR'S PRODUCTION.
    27  EACH PERMIT IS VALID ONLY FOR THE CALENDAR YEAR IN WHICH IT IS
    28  ISSUED.
    29     (II)  THE FEE FOR A PERMIT TO IMPORT AND USE PERMITTED FRUIT
    30  SHALL BE IN AN AMOUNT TO BE DETERMINED BY THE BOARD.
    20030H2105B4251                  - 8 -     

     1     (III)  THE PURPOSE OF THIS SECTION IS TO INCREASE THE
     2  PRODUCTIVITY OF LIMITED WINERIES WHILE AT THE SAME TIME
     3  PROTECTING THE INTEGRITY AND UNIQUE CHARACTERISTICS OF WINE
     4  PRODUCED FROM FRUIT PRIMARILY GROWN IN THIS COMMONWEALTH.
     5  PREVAILING CLIMATIC CONDITIONS HAVE A SIGNIFICANT IMPACT ON THE
     6  CHARACTER OF THE FRUIT. ACCORDINGLY, "PERMITTED FRUIT" SHALL
     7  MEAN FRUIT GROWN OR JUICE DERIVED FROM FRUIT GROWN WITHIN THREE
     8  HUNDRED FIFTY (350) MILES OF THE WINERY.
     9     (IV)  THE DEPARTMENT IS AUTHORIZED TO PROMULGATE REGULATIONS
    10  REQUIRING THE FILING OF PERIODIC REPORTS BY LIMITED WINERIES TO
    11  ENSURE COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
    12     (V)  THIS CLAUSE SHALL EXPIRE ON DECEMBER 31, 2004.
    13     (6.1)  SELL WINE OR LIQUOR-SCENTED CANDLES ACQUIRED OR
    14  PRODUCED BY THE LIMITED WINERY.
    15     [(7)] (B)  THE TOTAL PRODUCTION OF ALCOHOLIC CIDERS, WINE AND
    16  WINE COOLERS BY A LIMITED WINERY MAY NOT EXCEED TWO HUNDRED
    17  THOUSAND (200,000) GALLONS PER YEAR.
    18     SECTION 3 6.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    19     SECTION 505.3.  DISTILLERIES.--THE BOARD MAY ISSUE A
    20  DISTILLERY OF HISTORICAL SIGNIFICANCE LICENSE TO ANY DISTILLERY
    21  WHICH WAS ESTABLISHED PRIOR TO JANUARY 1, 1875. THE HOLDER OF
    22  THE LICENSE MAY MANUFACTURE AND SELL LIQUOR PRODUCED ON THE
    23  LICENSED PREMISES TO THE BOARD, TO ENTITIES LICENSED BY THE
    24  BOARD AND TO THE PUBLIC UNDER SUCH CONDITIONS AND REGULATIONS AS
    25  THE BOARD MAY ENFORCE. THE DISTILLERY DOES NOT NEED TO ESTABLISH
    26  CONTINUOUS OPERATION SINCE JANUARY 1, 1875, IN ORDER TO QUALIFY
    27  FOR A LICENSE UNDER THIS SECTION.
    28     Section 3 4 7.  This act shall take effect in 60 days.


    G17L47JLW/20030H2105B4251        - 9 -