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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 103, 1393                PRINTER'S NO. 2742

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 111 Session of 2005


        INTRODUCED BY MUSTIO, BELFANTI, CALTAGIRONE, CRAHALLA,
           DENLINGER, J. EVANS, HENNESSEY, MANDERINO, O'NEILL, REICHLEY,
           SAINATO, T. STEVENSON, WASHINGTON, YOUNGBLOOD, HARPER, DALLY,
           RAYMOND AND MELIO, JANUARY 25, 2005

        SENATOR RAFFERTY, LAW AND JUSTICE, IN SENATE, AS AMENDED,
           SEPTEMBER 27, 2005

                                     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 "CASE" AND "ELIGIBLE ENTITY"; providing for   <--
    18     extension of existing license to cover additional area;
    19     authorizing an alcohol access control tax credit; and          <--
    20     imposing powers and duties on the Secretary of Revenue. AND    <--
    21     FURTHER PROVIDING FOR BREWERIES, FOR UNLAWFUL ACTS RELATIVE
    22     TO MALT OR BREWED BEVERAGES AND LICENSEES, FOR HOURS OF
    23     OPERATION RELATIVE TO MANUFACTURERS, IMPORTING DISTRIBUTORS
    24     AND DISTRIBUTORS AND FOR UNLAWFUL ACTS RELATIVE TO LIQUOR,
    25     MALT AND BREWED BEVERAGES AND LICENSEES.

    26     The General Assembly of the Commonwealth of Pennsylvania
    27  hereby enacts as follows:


     1     Section 1.  Sections 404, 406.1 and 432(d) of the act of       <--
     2  April 12, 1951 (P.L.90, No.21), known as the Liquor Code,
     3  reenacted and amended June 29, 1987 (P.L.32, No.14) and amended
     4  December 9, 2002 (P.L.1653, No.212), are amended to read:
     5     SECTION 1.  THE DEFINITIONS OF "CASE" AND "ELIGIBLE ENTITY"    <--
     6  IN SECTION 102 OF THE ACT OF APRIL 12, 1951 (P.L.90, NO.21),
     7  KNOWN AS THE LIQUOR CODE, REENACTED AND AMENDED JUNE 29, 1987
     8  (P.L.32, NO.14), AND AMENDED OR ADDED MAY 31, 1996 (P.L.312,
     9  NO.49) AND DECEMBER 30, 2003 (P.L.423, NO.59), ARE AMENDED TO
    10  READ:
    11     SECTION 102.  DEFINITIONS.--THE FOLLOWING WORDS OR PHRASES,
    12  UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE, SHALL HAVE THE
    13  MEANINGS ASCRIBED TO THEM IN THIS SECTION:
    14     * * *
    15     "CASE" SHALL MEAN A PACKAGE PREPARED BY THE MANUFACTURER FOR
    16  SALE OR DISTRIBUTION OF TWELVE OR MORE ORIGINAL CONTAINERS
    17  TOTALING [TWO HUNDRED EIGHTY-EIGHT] TWO HUNDRED SIXTY-FOUR OR
    18  MORE FLUID OUNCES OF MALT OR BREWED BEVERAGES EXCEPTING THOSE
    19  PACKAGES CONTAINING TWENTY-FOUR OR MORE ORIGINAL CONTAINERS EACH
    20  HOLDING SEVEN FLUID OUNCES OR MORE.
    21     * * *
    22     "ELIGIBLE ENTITY" SHALL MEAN A CITY OF THE THIRD CLASS, A
    23  HOSPITAL, A CHURCH, A SYNAGOGUE, A VOLUNTEER FIRE COMPANY, A
    24  VOLUNTEER AMBULANCE COMPANY, A VOLUNTEER RESCUE SQUAD, A UNIT OF
    25  A NATIONALLY CHARTERED CLUB WHICH HAS BEEN ISSUED A CLUB LIQUOR
    26  LICENSE, A CLUB IN A CITY OF THE THIRD CLASS WHICH HAS BEEN
    27  ISSUED A CLUB LIQUOR LICENSE AND WHICH, AS OF DECEMBER 31, 2002,
    28  HAS BEEN IN EXISTENCE FOR AT LEAST 100 YEARS, A LIBRARY, A
    29  NATIONALLY ACCREDITED PENNSYLVANIA NONPROFIT ZOOLOGICAL
    30  INSTITUTION LICENSED BY THE UNITED STATES DEPARTMENT OF
    20050H0111B2742                  - 2 -     

     1  AGRICULTURE, A NONPROFIT AGRICULTURAL ASSOCIATION IN EXISTENCE
     2  FOR AT LEAST TEN YEARS, A BONA FIDE SPORTSMEN'S CLUB IN
     3  EXISTENCE FOR AT LEAST TEN YEARS, A NATIONALLY CHARTERED
     4  VETERANS' ORGANIZATION AND ANY AFFILIATED LODGE OR SUBDIVISION
     5  OF SUCH ORGANIZATION, A FRATERNAL BENEFIT SOCIETY THAT IS
     6  LICENSED TO DO BUSINESS IN THIS COMMONWEALTH AND ANY AFFILIATED
     7  LODGE OR SUBDIVISION OF SUCH FRATERNAL BENEFIT SOCIETY, A MUSEUM
     8  OPERATED BY A NONPROFIT CORPORATION IN A CITY OF THE THIRD CLASS
     9  OR TOWNSHIP OF THE FIRST CLASS, A NONPROFIT CORPORATION ENGAGED
    10  IN THE PERFORMING ARTS IN A CITY OF THE THIRD CLASS, BOROUGH OR
    11  IN AN INCORPORATED TOWN, AN ARTS COUNCIL, A NONPROFIT
    12  CORPORATION THAT OPERATES AN ARTS FACILITY OR MUSEUM IN A CITY
    13  OF THE THIRD CLASS IN THE COUNTY OF THE FOURTH CLASS, A
    14  NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE
    15  INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §
    16  501(C)(3)) WHOSE PURPOSE IS TO PROTECT THE ARCHITECTURAL
    17  HERITAGE OF BOROUGHS AND WHICH HAS BEEN RECOGNIZED AS SUCH BY A
    18  MUNICIPAL RESOLUTION, A NONPROFIT ORGANIZATION AS DEFINED UNDER
    19  SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC
    20  LAW 99-514, 26 U.S.C. § 501(C)(3)) CONDUCTING A REGATTA IN A
    21  CITY OF THE SECOND CLASS WITH THE PERMIT TO BE USED ON STATE
    22  PARK GROUNDS OR CONDUCTING A FAMILY-ORIENTED CELEBRATION AS PART
    23  OF WELCOME AMERICA IN A CITY OF THE FIRST CLASS ON PROPERTY
    24  LEASED FROM THAT CITY FOR MORE THAN FIFTY YEARS, [OR] A
    25  NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE
    26  INTERNAL REVENUE CODE OF 1986 (26 U.S.C. § 501(C)(3)) WHOSE
    27  PURPOSE IS TO RAISE FUNDS FOR THE RESEARCH AND TREATMENT OF
    28  CYSTIC FIBROSIS, A NONPROFIT ORGANIZATION AS DEFINED UNDER
    29  SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (26
    30  U.S.C. § 501(C)(3)) WHOSE PURPOSE IS TO EDUCATE THE PUBLIC ON
    20050H0111B2742                  - 3 -     

     1  ISSUES DEALING WITH WATERSHED CONSERVATION[.], A NONPROFIT
     2  ECONOMIC DEVELOPMENT AGENCY IN A CITY OF THE SECOND CLASS WITH
     3  THE PRIMARY FUNCTION TO SERVE AS AN ECONOMIC GENERATOR FOR THE
     4  GREATER SOUTHWESTERN PENNSYLVANIA REGION BY ATTRACTING AND
     5  SUPPORTING FILM, TELEVISION AND RELATED MEDIA INDUSTRY PROJECTS
     6  AND COORDINATING GOVERNMENT AND BUSINESS OFFICES IN SUPPORT OF A
     7  PRODUCTION OR A JUNIOR LEAGUE IN A THIRD CLASS COUNTY THAT IS A
     8  NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE
     9  INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1
    10  ET SEQ.) THAT IS COMPRISED OF WOMEN WHOSE PURPOSE IS EXCLUSIVELY
    11  EDUCATIONAL AND CHARITABLE IN PROMOTING THE VOLUNTEERISM OF
    12  WOMEN AND DEVELOPING AND PARTICIPATING IN COMMUNITY PROJECTS AND
    13  THAT HAS BEEN IN EXISTENCE FOR OVER SEVENTY YEARS.
    14     * * *
    15     SECTION 2.  SECTIONS 404, 406.1 AND 432(D) OF THE ACT,
    16  AMENDED DECEMBER 9, 2002 (P.L.1653, NO.212), ARE AMENDED TO
    17  READ:
    18     Section 404.  Issuance, Transfer or Extension of Hotel,
    19  Restaurant and Club Liquor Licenses.--Upon receipt of the
    20  application and the proper fees, and upon being satisfied of the
    21  truth of the statements in the application that the applicant is
    22  the only person in any manner pecuniarily interested in the
    23  business so asked to be licensed and that no other person will
    24  be in any manner pecuniarily interested therein during the
    25  continuance of the license, except as hereinafter permitted, and
    26  that the applicant is a person of good repute, that the premises
    27  applied for meet all the requirements of this act and the
    28  regulations of the board, that the applicant seeks a license for
    29  a hotel, restaurant or club, as defined in this act, and that
    30  the issuance of such license is not prohibited by any of the
    20050H0111B2742                  - 4 -     

     1  provisions of this act, the board shall, in the case of a hotel
     2  or restaurant, grant and issue to the applicant a liquor
     3  license, and in the case of a club may, in its discretion, issue
     4  or refuse a license: Provided, however, That in the case of any
     5  new license or the transfer of any license to a new location or
     6  the extension of an existing license to cover an additional area
     7  the board may, in its discretion, grant or refuse such new
     8  license [or], transfer or extension if such place proposed to be
     9  licensed is within three hundred feet of any church, hospital,
    10  charitable institution, school, or public playground, or if such
    11  new license [or], transfer or extension is applied for a place
    12  which is within two hundred feet of any other premises which is
    13  licensed by the board: And provided further, That the board's
    14  authority to refuse to grant a license because of its proximity
    15  to a church, hospital, charitable institution, public playground
    16  or other licensed premises shall not be applicable to license
    17  applications submitted for public venues or performing arts
    18  facilities: And provided further, That the board shall refuse
    19  any application for a new license [or], the transfer of any
    20  license to a new location, or the extension of an existing
    21  license to cover an additional area if, in the board's opinion,
    22  such new license [or], transfer or extension would be
    23  detrimental to the welfare, health, peace and morals of the
    24  inhabitants of the neighborhood within a radius of five hundred
    25  feet of the place proposed to be licensed: And provided further,
    26  That the board shall have the discretion to refuse a license to
    27  any person or to any corporation, partnership or association if
    28  such person, or any officer or director of such corporation, or
    29  any member or partner of such partnership or association shall
    30  have been convicted or found guilty of a felony within a period
    20050H0111B2742                  - 5 -     

     1  of five years immediately preceding the date of application for
     2  the said license. The board shall refuse any application for a
     3  new license [or], the transfer of any license to a new location
     4  or the extension of any license to cover an additional area
     5  where the sale of liquid fuels or oil is conducted. The board
     6  may enter into an agreement with the applicant concerning
     7  additional restrictions on the license in question. If the board
     8  and the applicant enter into such an agreement, such agreement
     9  shall be binding on the applicant. Failure by the applicant to
    10  adhere to the agreement will be sufficient cause to form the
    11  basis for a citation under section 471 and for the nonrenewal of
    12  the license under section 470. If the board enters into an
    13  agreement with an applicant concerning additional restrictions,
    14  those restrictions shall be binding on subsequent holders of the
    15  license until the license is transferred to a new location or
    16  until the board enters into a subsequent agreement removing
    17  those restrictions. If the application in question involves a
    18  location previously licensed by the board, then any restrictions
    19  imposed by the board on the previous license at that location
    20  shall be binding on the applicant unless the board enters into a
    21  new agreement rescinding those restrictions. The board may, in
    22  its discretion, refuse an application for an economic
    23  development license under section 461(b.1) or an application for
    24  an intermunicipal transfer of a license if the board receives a
    25  protest from the governing body of the receiving municipality.
    26  The receiving municipality of an intermunicipal transfer or an
    27  economic development license under section 461(b.1) may file a
    28  protest against the transfer of a license into its municipality,
    29  and the receiving municipality shall have standing in a hearing
    30  to present testimony in support of or against the issuance or
    20050H0111B2742                  - 6 -     

     1  transfer of a license. Upon any opening in any quota, an
     2  application for a new license shall only be filed with the board
     3  for a period of six months following said opening.
     4     Section 406.1.  Secondary Service Area.--(a)  Upon
     5  application of any restaurant, hotel, club, municipal golf
     6  course liquor licensee or manufacturer of malt or brewed
     7  beverages, and payment of the appropriate fee, the board may
     8  approve a secondary service area by extending the licensed
     9  premises to include one additional permanent structure with
    10  dimensions of at least one hundred seventy-five square feet,
    11  enclosed on three sides and having adequate seating. Such
    12  secondary service area must be located on property having a
    13  minimum area of one (1) acre, and must be on land which is
    14  immediate, abutting, adjacent or contiguous to the licensed
    15  premises with no intervening public thoroughfare; however, the
    16  original licensed premises and the secondary service area must
    17  be located on the same tract of land. The board shall have
    18  discretion to refuse the application for a secondary service
    19  area in the same manner it has discretion to refuse an
    20  application for transfer of the license to a new location as set
    21  forth in section 404. There shall be no requirement that the
    22  secondary service area be physically connected to the original
    23  licensed premises. In addition, there shall be no requirement
    24  that the secondary service area be located in the same
    25  municipality as the original licensed premises, provided,
    26  however, that the board shall not approve a secondary service
    27  area in this case if that secondary service area is located in
    28  any municipality where the granting of liquor licenses has been
    29  prohibited as provided in this article. Notwithstanding 40 Pa.
    30  Code § 7.21(c)(3), the licensee shall be permitted to store,
    20050H0111B2742                  - 7 -     

     1  serve, sell or dispense food, liquor and malt or brewed
     2  beverages at the board approved secondary service area.
     3     (b)  If the applicant is a manufacturer of malt or brewed
     4  beverages, the board may approve a secondary service area for
     5  use as a brewery pub pursuant to section 446, notwithstanding
     6  any intervening public thoroughfare, so long as the proposed
     7  secondary service area is within one thousand feet of the
     8  licensed premises. Notwithstanding any other provision of this
     9  act, the licensed premises and the secondary service area may be
    10  located on different tracts of lands.
    11     Section 432.  Malt and Brewed Beverages Retail Licenses.--* *
    12  *
    13     (d)  The board shall, in its discretion, grant or refuse any
    14  new license [or], the transfer of any license to a new location
    15  or the extension of an existing license to cover an additional
    16  area if such place proposed to be licensed is within three
    17  hundred feet of any church, hospital, charitable institution,
    18  school, or public playground, or if such new license [or],
    19  transfer or extension is applied for a place which is within two
    20  hundred feet of any other premises which is licensed by the
    21  board. The board shall refuse any application for a new license
    22  [or], the transfer of any license to a new location or the
    23  extension of an existing license to cover an additional area if,
    24  in the board's opinion, such new license [or], transfer or
    25  extension would be detrimental to the welfare, health, peace and
    26  morals of the inhabitants of the neighborhood within a radius of
    27  five hundred feet of the place to be licensed. The board may
    28  enter into an agreement with the applicant concerning additional
    29  restrictions on the license in question. If the board and the
    30  applicant enter into such an agreement, such agreement shall be
    20050H0111B2742                  - 8 -     

     1  binding on the applicant. Failure by the applicant to adhere to
     2  the agreement will be sufficient cause to form the basis for a
     3  citation under section 471 and for the nonrenewal of the license
     4  under section 470. If the board enters into an agreement with an
     5  applicant concerning additional restrictions, those restrictions
     6  shall be binding on subsequent holders of the license until the
     7  license is transferred to a new location or until the board
     8  enters into a subsequent agreement removing those restrictions.
     9  If the application in question involves a location previously
    10  licensed by the board, then any restrictions imposed by the
    11  board on the previous license at that location shall be binding
    12  on the applicant unless the board enters into a new agreement
    13  rescinding those restrictions. The board shall refuse any
    14  application for a new license [or], the transfer of any license
    15  to a location where the sale of liquid fuels or oil is conducted
    16  or the extension of an existing license to cover an additional
    17  area: And provided further, That the board shall have the
    18  discretion to refuse a license to any person or to any
    19  corporation, partnership or association if such person, or any
    20  officer or director of such corporation, or any member or
    21  partner of such partnership or association shall have been
    22  convicted or found guilty of a felony within a period of five
    23  years immediately preceding the date of application for the said
    24  license. The board may, in its discretion, refuse an application
    25  for an economic development license under section 461(b.1) or an
    26  application for an intermunicipal transfer or a license if the
    27  board receives a protest from the governing body of the
    28  receiving municipality. The receiving municipality of an
    29  intermunicipal transfer or an economic development license under
    30  section 461(b.1) may file a protest against the approval for
    20050H0111B2742                  - 9 -     

     1  issuance of a license for economic development or an
     2  intermunicipal transfer of a license into its municipality, and
     3  such municipality shall have standing in a hearing to present
     4  testimony in support of or against the issuance or transfer of a
     5  license. Upon any opening in any quota, an application for a new
     6  license shall only be filed with the board for a period of six
     7  months following said opening.
     8     * * *
     9     Section 2.  The act is amended by adding an article to read:   <--
    10                           ARTICLE VIII-A
    11                 ALCOHOL ACCESS CONTROL TAX CREDITS
    12  Section 801-A.  Scope.
    13     This article authorizes alcohol access control tax credits.
    14  Section 802-A.  Definitions.
    15     The following words and phrases when used in this article
    16  shall have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     "Alcohol access control tax credit."  The credit provided
    19  under this article.
    20     "Department."  The Department of Revenue of the Commonwealth.
    21     "Qualified alcohol access control expense."  That expense
    22  incurred by a taxpayer for the purchase and use of technology or
    23  software intended to control the access of minors to alcohol and
    24  which is capable of:
    25         (1)  Capturing the information from a magnetic strip on a
    26     Pennsylvania driver's license or identification card issued
    27     by the Department of Transportation.
    28         (2)  Producing a declaration of age in print, audible or
    29     visual form.
    30         (3)  Prompting a cashier for age verification when a
    20050H0111B2742                 - 10 -     

     1     purchase of alcohol is recorded by the point-of-sale system.
     2     "Qualified tax liability."  The liability for taxes imposed
     3  under Article III, IV or VI of the act of March 4, 1971 (P.L.6,
     4  No.2), known as the Tax Reform Code of 1971.
     5     "Secretary."  The Secretary of Revenue of the Commonwealth.
     6     "Taxpayer."  An entity licensed by the Liquor Control Board
     7  to sell alcohol to a consumer.
     8  Section 803-A.  Credit for alcohol access control expenses.
     9     (a)  Application for credit by taxpayer.--A taxpayer who
    10  incurs a qualified alcohol access control expense in a taxable
    11  year may apply for an alcohol access control tax credit as
    12  provided in this article. In order to receive the credit, the
    13  taxpayer must submit an application to the department by
    14  September 15 for a qualified alcohol access control expense
    15  incurred in the taxable year that ended in the prior calendar
    16  year.
    17     (b)  Amount of credit.--A taxpayer that timely applies under
    18  subsection (a) shall receive an alcohol access control tax
    19  credit for the taxable year up to the amount of $500 per license
    20  per location.
    21     (c)  Notification of approval from department.--By December
    22  15 of the calendar year following the close of the taxable year
    23  during which the qualified alcohol access control expense was
    24  incurred, the department shall notify the taxpayer of the amount
    25  of the taxpayer's alcohol access control tax credit approved by
    26  the department.
    27  Section 804-A.  Use of credit.
    28     (a)  Carryover.--
    29         (1)  The amount of the alcohol access control tax credit
    30     that a taxpayer may use against any one qualified tax
    20050H0111B2742                 - 11 -     

     1     liability during any year may not exceed 50% of the qualified
     2     tax liability for that taxable year.
     3         (2)  If the taxpayer cannot use the entire amount of the
     4     alcohol access control tax credit for the taxable year in
     5     which the alcohol access control tax credit is first
     6     approved, then the excess may be carried over to succeeding
     7     taxable years and used as a credit against the qualified tax
     8     liability of the taxpayer for those taxable years.
     9         (3)  Each time that the alcohol access control tax credit
    10     is carried over to a succeeding taxable year, it shall be
    11     reduced by the amount that was used as a credit during the
    12     immediately preceding taxable year.
    13         (4)  The alcohol access control tax credit may be carried
    14     over and applied to succeeding taxable years for not more
    15     than four taxable years following the first taxable year for
    16     which the taxpayer was entitled to claim the credit.
    17     (b)  Taxable year to which applied.--An alcohol access
    18  control tax credit approved by the department for qualified
    19  alcohol access control expense in a taxable year first shall be
    20  applied against the taxpayer's qualified tax liability for the
    21  current taxable year as of the date on which the credit was
    22  approved before the alcohol access control tax credit is applied
    23  against any tax liability under subsection (a).
    24     (c)  Limitations.--A taxpayer may not carry back, obtain a
    25  refund of or assign an unused alcohol access control tax credit.
    26  Section 805-A.  Determination of qualified alcohol access
    27                     control expenses.
    28     In prescribing standards for determining which alcohol access
    29  control expense is to be deemed a qualified alcohol access
    30  control expense for purposes of computing the credit provided by
    20050H0111B2742                 - 12 -     

     1  this article, the department shall require:
     2         (1)  A copy of the technology or software specifications
     3     demonstrating that the specifications meet the definition of
     4     a qualified alcohol access control expense.
     5         (2)  A copy of an invoice to the taxpayer for the
     6     technology or software purchased for qualification as a
     7     qualified alcohol access control expense.
     8         (3)  A copy of the check or checks and paid receipts for
     9     technology or software purchased for qualifications as
    10     qualified alcohol access control expense.
    11  Section 806-A.  Time limitation.
    12     A taxpayer is not entitled to an alcohol access control tax
    13  credit for qualified alcohol access control expenses incurred in
    14  taxable years ending after December 31, 2009.
    15  Section 807-A.  Limitation on credits.
    16     The cumulative amount of alcohol access control tax credits
    17  approved by the department under this article shall not exceed
    18  $5,000,000. If the amount of alcohol access control tax credits
    19  applied for by taxpayers in any taxable year exceeds the
    20  remaining authorized amount for such credits under this section,
    21  then the alcohol access control tax credit to be received by
    22  each applicant for that taxable year shall be the product of the
    23  remaining authorized amount multiplied by the quotient of the
    24  alcohol access control tax credit applied for by the applicant
    25  divided by the total of all alcohol access control tax credits
    26  applied for by all applicants.
    27  Section 808-A.  Pennsylvania S corporation shareholder pass-
    28                     through.
    29     (a)  General rule.--If a Pennsylvania S corporation does not
    30  have an eligible tax liability against which the alcohol access
    20050H0111B2742                 - 13 -     

     1  control tax credit may be applied, a shareholder of the
     2  Pennsylvania S corporation is entitled to an alcohol access
     3  control tax credit equal to the alcohol access control tax
     4  credit determined for the Pennsylvania S corporation for the
     5  taxable year multiplied by the percentage of the Pennsylvania S
     6  corporation's distributive income to which the shareholder is
     7  entitled.
     8     (b)  Double use of credit prohibited.--A Pennsylvania S
     9  corporation and a shareholder of a Pennsylvania S corporation
    10  may not claim a credit under this article for the same qualified
    11  alcohol access control expense.
    12  Section 809-A.  Report to General Assembly.
    13     The secretary shall submit an annual report to the General
    14  Assembly indicating the effectiveness of the credit provided by
    15  this article not later than March 15 following the year in which
    16  the credits are approved. The report shall include the number of
    17  taxpayers utilizing the credit as of the date of the report and
    18  the amount of credits approved and utilized. The report may also
    19  include any recommendations for changes in the calculation or
    20  administration of the credit.
    21  Section 810-A.  Expiration.
    22     The department may not approve an alcohol access control tax
    23  credit under this article for taxable years ending after
    24  December 31, 2009.
    25  Section 811-A.  Regulations.
    26     The secretary shall promulgate regulations necessary for the
    27  implementation and administration of this article.
    28     SECTION 3.  SECTION 446(2) OF THE ACT, AMENDED NOVEMBER 10,    <--
    29  1999 (P.L.514, NO.47), IS AMENDED TO READ:
    30     SECTION 446.  BREWERIES.--HOLDERS OF A BREWERY LICENSE MAY:
    20050H0111B2742                 - 14 -     

     1     * * *
     2     (2)  OPERATE A RESTAURANT OR BREWERY PUB ON THE LICENSED
     3  PREMISES UNDER SUCH CONDITIONS AND REGULATIONS AS THE BOARD MAY
     4  ENFORCE: PROVIDED, HOWEVER, THAT SALES ON SUNDAY MAY BE MADE
     5  IRRESPECTIVE OF THE VOLUME OF FOOD SALES IF THE LICENSED
     6  PREMISES ARE AT A [STADIUM OR ARENA] PUBLIC VENUE LOCATION. THE
     7  HOLDER OF A BREWERY LICENSE MAY SELL AT ITS BREWERY PUB PREMISES
     8  PENNSYLVANIA WINES IT HAS PURCHASED FROM EITHER THE HOLDER OF A
     9  PENNSYLVANIA LIMITED WINERY LICENSE OR FROM THE BOARD: PROVIDED,
    10  HOWEVER, THAT SAID WINES MUST BE CONSUMED AT THE LICENSED
    11  BREWERY PUB PREMISES.
    12     * * *
    13     SECTION 4.  SECTIONS 492(4) AND 492.1 OF THE ACT, AMENDED OR
    14  ADDED JULY 6, 2005 (P.L.135, NO.39), ARE AMENDED TO READ:
    15     SECTION 492.  UNLAWFUL ACTS RELATIVE TO MALT OR BREWED
    16  BEVERAGES AND LICENSEES.--
    17     IT SHALL BE UNLAWFUL--
    18     * * *
    19     (4)  ACTIVITIES OF MANUFACTURERS, IMPORTING DISTRIBUTORS OR
    20  DISTRIBUTORS ON SUNDAY. FOR ANY MANUFACTURER OF MALT OR BREWED
    21  BEVERAGES, IMPORTING DISTRIBUTOR OR DISTRIBUTOR, OR THE
    22  SERVANTS, AGENTS OR EMPLOYES OF THE SAME, TO SELL MALT OR BREWED
    23  BEVERAGES BETWEEN THE HOURS OF ELEVEN O'CLOCK POSTMERIDIAN OF
    24  ANY SATURDAY AND EIGHT O'CLOCK IN THE FORENOON OF THE FOLLOWING
    25  MONDAY, EXCEPT THAT A DISTRIBUTOR OR IMPORTING DISTRIBUTOR MAY
    26  SELL MALT OR BREWED BEVERAGES ON SUNDAY BETWEEN THE HOURS OF
    27  TWELVE O'CLOCK NOON AND FIVE O'CLOCK POSTMERIDIAN. UPON PURCHASE
    28  OF A PERMIT FROM THE BOARD AT AN ANNUAL FEE OF ONE HUNDRED
    29  DOLLARS ($100), MANUFACTURERS, IMPORTING DISTRIBUTORS AND
    30  DISTRIBUTORS, OR THE SERVANTS, AGENTS OR EMPLOYES OF THE SAME,
    20050H0111B2742                 - 15 -     

     1  MAY SELL MALT OR BREWED BEVERAGES TO ANYONE NOT LICENSED UNDER
     2  THIS ACT OR TO A HOLDER OF A SPECIAL OCCASION PERMIT ON SUNDAY
     3  BETWEEN THE HOURS OF NOON AND FIVE O'CLOCK POSTMERIDIAN.
     4  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, DELIVERY OR
     5  RECEIVING OF MALT OR BREWED BEVERAGES SHALL BE PERMISSIBLE ON
     6  SUNDAY AFTER PRIOR ARRANGEMENT AS FOLLOWS:
     7     (I)  A MANUFACTURER MAY, AT ANY TIME, DELIVER TO ANY
     8  IMPORTING DISTRIBUTOR OR DISTRIBUTOR TO WHICH THE MANUFACTURER
     9  HAS GRANTED WHOLESALE DISTRIBUTION RIGHTS FOR THE MANUFACTURER'S
    10  PRODUCT.
    11     (II)  AN IMPORTING DISTRIBUTOR OR DISTRIBUTOR MAY DELIVER TO
    12  ANY ORGANIZATION TO WHICH A SPECIAL OCCASION PERMIT HAS BEEN
    13  ISSUED BETWEEN THE HOURS OF NINE O'CLOCK ANTEMERIDIAN AND TWELVE
    14  O'CLOCK NOON.
    15     (III)  AN IMPORTING DISTRIBUTOR OR DISTRIBUTOR MAY DELIVER TO
    16  ANYONE NOT LICENSED UNDER THIS ACT BETWEEN THE HOURS OF NINE
    17  O'CLOCK ANTEMERIDIAN AND TWELVE O'CLOCK NOON.
    18  THE TERM "PRIOR ARRANGEMENT" SHALL MEAN THAT MALT OR BREWED
    19  BEVERAGES HAVING A TOTAL SALE PRICE, EXCLUDING ANY DEPOSITS OR
    20  CREDITS, EXCEEDING TWO HUNDRED FIFTY DOLLARS ($250) HAVE BEEN
    21  ORDERED, INVOICED AND PAID FOR IN FULL AT THE SELLER'S LICENSED
    22  PREMISES BEFORE THE SUNDAY OF DELIVERY.
    23     * * *
    24     SECTION 492.1.  HOURS OF OPERATION RELATIVE TO MANUFACTURERS,
    25  IMPORTING DISTRIBUTORS AND DISTRIBUTORS.--MANUFACTURERS MAY SELL
    26  MALT OR BREWED BEVERAGES BETWEEN TWO O'CLOCK ANTEMERIDIAN OF ANY
    27  MONDAY AND TWELVE O'CLOCK MIDNIGHT OF THE FOLLOWING SATURDAY.
    28  NOTWITHSTANDING THIS SECTION, MANUFACTURERS OPERATING A BREWERY
    29  PUB UNDER SECTION 446 SHALL BE SUBJECT TO THE HOURS OF OPERATION
    30  SET FORTH BY THE BOARD THROUGH REGULATION. IMPORTING
    20050H0111B2742                 - 16 -     

     1  DISTRIBUTORS AND DISTRIBUTORS MAY SELL MALT OR BREWED BEVERAGES
     2  BETWEEN [TWO] EIGHT O'CLOCK ANTEMERIDIAN OF ANY MONDAY AND
     3  [TWELVE O'CLOCK MIDNIGHT] ELEVEN O'CLOCK POSTMERIDIAN OF THE
     4  FOLLOWING SATURDAY TO HOLDERS OF A LIQUOR OR MALT AND BREWED
     5  BEVERAGE LICENSE OR PERMIT ISSUED BY THE BOARD. IMPORTING
     6  DISTRIBUTORS AND DISTRIBUTORS MAY SELL MALT OR BREWED BEVERAGES
     7  BETWEEN EIGHT O'CLOCK ANTEMERIDIAN AND ELEVEN O'CLOCK
     8  POSTMERIDIAN OF ANY DAY, EXCEPT SUNDAY, TO PERSONS NOT LICENSED
     9  OR PERMITTED BY THIS ACT.
    10     SECTION 5.  SECTION 493(13) AND (24) OF THE ACT, AMENDED
    11  DECEMBER 16, 2002 (P.L.1806, NO.221) AND NOVEMBER 30, 2004
    12  (P.L.1727, NO.221), ARE AMENDED TO READ:
    13     SECTION 493.  UNLAWFUL ACTS RELATIVE TO LIQUOR, MALT AND
    14  BREWED BEVERAGES AND LICENSEES.--THE TERM "LICENSEE," WHEN USED
    15  IN THIS SECTION, SHALL MEAN THOSE PERSONS LICENSED UNDER THE
    16  PROVISIONS OF ARTICLE IV, UNLESS THE CONTEXT CLEARLY INDICATES
    17  OTHERWISE.
    18     IT SHALL BE UNLAWFUL--
    19     * * *
    20     (13)  RETAIL LICENSEES EMPLOYING MINORS. FOR ANY HOTEL,
    21  RESTAURANT OR CLUB LIQUOR LICENSEE, OR ANY RETAIL DISPENSER, TO
    22  EMPLOY OR TO PERMIT ANY MINOR UNDER THE AGE OF EIGHTEEN TO SERVE
    23  ANY ALCOHOLIC BEVERAGES OR TO EMPLOY OR PERMIT ANY MINOR UNDER
    24  THE AGE OF SIXTEEN TO RENDER ANY SERVICE WHATEVER IN THE
    25  LICENSED PREMISES, NOR SHALL ANY ENTERTAINER UNDER THE AGE OF
    26  EIGHTEEN BE EMPLOYED OR PERMITTED TO PERFORM IN ANY LICENSED
    27  PREMISES IN VIOLATION OF THE LABOR LAWS OF THIS COMMONWEALTH:
    28  PROVIDED, THAT IN ACCORDANCE WITH BOARD REGULATIONS MINORS
    29  BETWEEN THE AGES OF SIXTEEN AND EIGHTEEN MAY BE EMPLOYED TO
    30  SERVE FOOD, CLEAR TABLES AND PERFORM OTHER SIMILAR DUTIES, NOT
    20050H0111B2742                 - 17 -     

     1  TO INCLUDE THE DISPENSING OR SERVING OF ALCOHOLIC BEVERAGES. A
     2  SKI RESORT, GOLF COURSE OR AMUSEMENT PARK LICENSEE MAY EMPLOY
     3  MINORS FOURTEEN AND FIFTEEN YEARS OF AGE TO PERFORM DUTIES IN
     4  ROOMS OR AREAS OF THE LICENSED PREMISES; HOWEVER, SUCH MINORS
     5  MAY NOT PERFORM DUTIES IN ROOMS OR AREAS IN WHICH ALCOHOL IS
     6  BEING CONCURRENTLY DISPENSED OR SERVED OR IN WHICH ALCOHOL IS
     7  BEING CONCURRENTLY STORED IN AN UNSECURED MANNER.
     8  NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE CONTRARY, A HOTEL,
     9  RESTAURANT OR CLUB LIQUOR LICENSEE OR ANY RETAIL DISPENSER MAY
    10  ALLOW STUDENTS RECEIVING INSTRUCTION IN A PERFORMING ART TO
    11  PERFORM AN EXHIBITION IN OBSERVANCE OF ETHNIC HERITAGE IF THE
    12  STUDENTS ARE NOT COMPENSATED AND ARE UNDER PROPER SUPERVISION.
    13  WRITTEN NOTICE OF THE PERFORMANCE MUST BE PROVIDED TO THE
    14  ENFORCEMENT BUREAU PRIOR TO THE PERFORMANCE.
    15     * * *
    16     (24)  THINGS OF VALUE OFFERED AS INDUCEMENT. FOR ANY LICENSEE
    17  UNDER THE PROVISIONS OF THIS ARTICLE, OR THE BOARD OR ANY
    18  MANUFACTURER, OR ANY EMPLOYE OR AGENT OF A MANUFACTURER,
    19  LICENSEE OR OF THE BOARD, TO OFFER TO GIVE ANYTHING OF VALUE OR
    20  TO SOLICIT OR RECEIVE ANYTHING OF VALUE AS A PREMIUM FOR THE
    21  RETURN OF CAPS, STOPPERS, CORKS, STAMPS OR LABELS TAKEN FROM ANY
    22  BOTTLE, CASE, BARREL OR PACKAGE CONTAINING LIQUOR OR MALT OR
    23  BREWED BEVERAGE, OR TO OFFER OR GIVE OR SOLICIT OR RECEIVE
    24  ANYTHING OF VALUE AS A PREMIUM OR PRESENT TO INDUCE DIRECTLY THE
    25  PURCHASE OF LIQUOR OR MALT OR BREWED BEVERAGE, OR FOR ANY
    26  LICENSEE, MANUFACTURER OR OTHER PERSON TO OFFER OR GIVE TO TRADE
    27  OR CONSUMER BUYERS ANY PRIZE, PREMIUM, GIFT OR OTHER INDUCEMENT
    28  TO PURCHASE LIQUOR OR MALT OR BREWED BEVERAGES, EXCEPT
    29  ADVERTISING NOVELTIES OF NOMINAL VALUE WHICH THE BOARD SHALL
    30  DEFINE. THIS SECTION SHALL NOT PREVENT ANY MANUFACTURER OR ANY
    20050H0111B2742                 - 18 -     

     1  AGENT OF A MANUFACTURER FROM OFFERING AND HONORING COUPONS WHICH
     2  OFFER MONETARY REBATES ON PURCHASES OF WINES AND SPIRITS THROUGH
     3  STATE LIQUOR STORES OR PURCHASES OF MALT OR BREWED BEVERAGES
     4  THROUGH DISTRIBUTORS AND IMPORTING DISTRIBUTORS IN ACCORDANCE
     5  WITH CONDITIONS OR REGULATIONS ESTABLISHED BY THE BOARD. THE
     6  BOARD MAY REDEEM COUPONS OFFERED BY A MANUFACTURER OR AN AGENT
     7  OF A MANUFACTURER AT THE TIME OF PURCHASE. COUPONS OFFERED BY A
     8  MANUFACTURER OR AN AGENT OF A MANUFACTURER SHALL NOT BE REDEEMED
     9  WITHOUT PROOF OF PURCHASE. THIS SECTION SHALL NOT APPLY TO THE
    10  RETURN OF ANY MONIES SPECIFICALLY DEPOSITED FOR THE RETURN OF
    11  THE ORIGINAL CONTAINER TO THE OWNERS THEREOF.
    12     * * *
    13     Section 3 6.  This act shall take effect in 60 days.           <--












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