SENATE AMENDED

 

PRIOR PRINTER'S NOS. 37, 1395, 1574, 2092

PRINTER'S NO.  2368

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

48

Session of

2009

  

  

INTRODUCED BY M. O'BRIEN, JANUARY 26, 2009

  

  

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 1, 2009   

  

  

  

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 providing for definitions, for special occasion

<--

18

permits, for sacramental wine licenses, fees, privileges and 

<--

19

restrictions and for interlocking businesses prohibited;

20

providing for an enhanced restaurant license; and further

21

providing for number and kinds of licenses allowed same

22

licensee and for limited number of retail licenses to be

23

issued in each county.

24

The General Assembly of the Commonwealth of Pennsylvania

25

hereby enacts as follows:

26

Section 1.  The definitions of "eligible entity" entity,"

<--

27

"performing arts facilities" and "public venue" in section 102

28

of the act of April 12, 1951 (P.L.90, No.21), known as the

 


1

Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14) 

2

and amended December 20, 2000 (P.L.992, No.41), November 29,

3

2006 (P.L.1421, No. 155) and July 16, 2007 (P.L.107, No.34), are 

4

amended to read:

5

Section 102.  Definitions.--The following words or phrases,

6

unless the context clearly indicates otherwise, shall have the

7

meanings ascribed to them in this section:

8

* * *

9

"Eligible entity" shall mean a city of the third class, a

10

hospital, a church, a synagogue, a volunteer fire company, a

11

volunteer ambulance company, a volunteer rescue squad, a unit of

12

a nationally chartered club which has been issued a club liquor

13

license, a club in a city of the third class which has been

14

issued a club liquor license and which, as of December 31, 2002,

15

has been in existence for at least 100 years, a library, a

16

nationally accredited Pennsylvania nonprofit zoological

17

institution licensed by the United States Department of

18

Agriculture, a nonprofit agricultural association in existence

19

for at least ten years, a bona fide sportsmen's club in

20

existence for at least ten years, a nationally chartered

21

veterans' organization and any affiliated lodge or subdivision

22

of such organization, a fraternal benefit society that is

23

licensed to do business in this Commonwealth and any affiliated

24

lodge or subdivision of such fraternal benefit society, a museum

25

operated by a nonprofit corporation in a city of the third class

26

or township of the first class, a nonprofit corporation engaged

27

in the performing arts in a city of the third class, borough or

28

in an incorporated town, an arts council, a nonprofit

29

corporation that operates an arts facility or museum in a city

30

of the third class in the county of the fourth class, a

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1

nonprofit organization as defined under section 501(c)(3) of the

2

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

3

501(c)(3)) whose purpose is to protect the architectural

4

heritage of boroughs and which has been recognized as such by a

5

municipal resolution, a nonprofit organization as defined under

6

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

7

Law 99-514, 26 U.S.C. § 501(c)(3)) conducting a regatta in a

8

city of the second class with the permit to be used on State

9

park grounds or conducting a family-oriented celebration as part

10

of Welcome America in a city of the first class on property

11

leased from that city for more than fifty years, a nonprofit

12

organization as defined under section 501(c)(3) of the Internal

13

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

14

raise funds for the research and treatment of cystic fibrosis, a

15

nonprofit organization as defined under section 501(c)(3) of the

16

Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose

17

purpose is to educate the public on issues dealing with

18

watershed conservation, a nonprofit organization as defined

19

under section 501(c)(3) of the Internal Revenue Code of 1986

20

(Public Law 99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to

21

provide equine assisted activities for children and adults with

22

special needs, a nonprofit economic development agency in a city

23

of the second class with the primary function to serve as an

24

economic generator for the greater southwestern Pennsylvania

25

region by attracting and supporting film, television and related

26

media industry projects and coordinating government and business

27

offices in support of a production, a county tourist promotion

28

agency as defined in section 3(1) of the act of April 28, 1961

29

(P.L.111, No.50), known as the "Tourist Promotion Law," and

30

located in a city of the third class in a county of the fourth

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1

class or located in a township of the second class in a county

2

of the fifth class, a junior league in a third class county that

3

is a nonprofit organization as defined under section 501(c)(3)

4

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

5

that is comprised of women whose purpose is exclusively

6

educational and charitable in promoting the volunteerism of

7

women and developing and participating in community projects and

8

that has been in existence for over seventy years [or], a

9

nonprofit organization as defined under section 501(C)(6) of the

10

Internal Revenue Code of 1986 which is located in a city of the

11

third class in a county of the third class and whose purpose is

12

to support business and industry or a club recognized by Rotary

13

International which is located in a county of the fourth class

<--

14

and whose purpose is to provide service to others, to promote

15

high ethical standards and to advance world understanding,

16

goodwill and peace through its fellowship of business,

17

professional and community leaders or a nonprofit organization

<--

18

as defined under section 501(c)(3) of the Internal Revenue Code

19

of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is

20

located in a borough in a county of the third class and whose

21

purpose is to promote mushrooms while supporting local and

22

regional charities.

23

* * *

24

"Performing arts facilities" shall mean those halls or

<--

25

theaters in which live musical, concert, dance, ballet and

26

legitimate play book-length productions are performed.

27

Performing arts facilities shall not mean those halls or

28

theaters in which burlesque shows or reviews are performed. If

29

the operator of the performing arts facility is a nonprofit

30

entity, the facility must have seating for at least [five

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1

hundred (500)] two hundred fifty (250) people; otherwise, the

2

facility must have seating for at least twenty-five hundred

3

(2,500) people.

4

* * *

5

"Public venue" shall mean a stadium, arena, convention

6

center, museum, amphitheater or similar structure. If the public

7

venue is a cruise terminal owned or leased by a port authority

8

created under the act of June 12, 1931 (P.L.575, No.200),

9

entitled "An act providing for joint action by Pennsylvania and

10

New Jersey in the development of the ports on the lower Delaware

11

River, and the improvement of the facilities for transportation

12

across the river; authorizing the Governor, for these purposes,

13

to enter into an agreement with New Jersey; creating The

14

Delaware River Joint Commission and specifying the powers and

15

duties thereof, including the power to finance projects by the

16

issuance of revenue bonds; transferring to the new commission

17

all the powers of the Delaware River Bridge Joint Commission;

18

and making an appropriation," it shall have no permanent seating

19

requirement. If the public venue is an open-air amphitheater

20

owned by a port authority created under the act of December 6,

21

1972 (P.L.1392, No.298), known as the "Third Class City Port

22

Authority Act," it shall have no permanent seating requirement.

23

If the public venue is owned by a political subdivision, a

24

municipal authority, the Commonwealth, an authority created

25

under the act of July 29, 1953 (P.L.1034, No.270), known as the

26

"Public Auditorium Authorities Law," an authority created under

27

Article XXV-A of the act of July 28, 1953 (P.L.723, No.230),

28

known as the "Second Class County Code," an art museum

29

established under the authority of the act of April 6, 1791 (3

30

Sm.L.20, No.1536), entitled "An act to confer on certain

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1

associations of the citizens of this commonwealth the powers and

2

immunities of corporations, or bodies politic in law," or an

3

authority created under Article XXIII (n) or (o) of the act of

4

August 9, 1955 (P.L.323, No.130), known as "The County Code," it

5

shall have permanent seating for at least one thousand (1,000)

6

people; otherwise, it shall have permanent seating for at least

7

two thousand (2,000) people. The term shall also mean any

8

regional history center, multipurpose cultural and science

9

facility, museum or convention or trade show center, regardless

10

of owner and seating capacity, that has a floor area of at least

11

sixty thousand (60,000) square feet in one building. The term

12

shall also mean a convention or conference center owned by a

13

city of the third class or a university which is a member of the

14

Pennsylvania State System of Higher Education which is operated

15

by a university foundation or alumni association, regardless of

16

seating capacity, that has a floor area of at least fifteen

17

thousand (15,000) square feet in one building. The term shall

18

shall also mean a visitor center, regardless of floor area or 

<--

19

seating capacity, that was established under the authority of

20

the Gateway Visitor Center Authorization Act of 1999 (Public Law

21

106-131, 113 Stat. 1678; 16 USCA 1678, 16 U.S.C. § 407m)).

<--

22

* * *

23

Section 2.  Section 408.4(h) and (j) of the act, amended

<--

24

December 9, 2002 (P.L.1653, No.212), are amended to read:

25

Section 408.4.  Special Occasion Permits.--

26

(h)  The board may issue a special occasion permit to an

27

eligible entity. The board may also issue a special occasion

28

permit to one auxiliary of any eligible entity. Any eligible

29

entity that wishes to acquire a special occasion permit must

30

submit [a] an original written application to the board in such

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1

form and containing such information as the board shall from

2

time to time prescribe. The application shall include a

3

resolution by the eligible entity setting forth its current

4

officers and approving the application. Upon approval of the

5

application by the board, the special occasion permit shall be

6

sent to the eligible entity only. The fee for special occasion

7

permits shall be as set forth under section 614-A(24) of the act

8

of April 9, 1929 (P.L.177, No.175), known as "The Administrative

9

Code of 1929."

10

* * *

11

(j)  The eligible entity shall give the local police

12

department or the Pennsylvania State Police if there is no local

13

police department written notice at least forty-eight hours

14

prior to each use of the special occasion permit. Written notice

15

consists of notifying the police of the date, time and place of

16

the impending sale of alcoholic beverages. Prior to use of the

17

special occasion permit, the eligible entity shall submit to the

18

board written proof of notification of the police.

19

* * *

20

Section 2.  Section 409 of the act, amended December 21, 1998 

<--

21

(P.L.1202, No.155) and December 9, 2002 (P.L.1653, No.212), is

22

amended to read:

23

Section 409.  Sacramental Wine Licenses; Fees; Privileges;

24

Restrictions.--(a)  Subject to the provisions of this act in

25

general and more particularly to the following provisions of

26

this section, the board shall issue sacramental wine licenses to

27

qualified applicants.

28

(b)  Every applicant for a sacramental wine license shall

29

file a written application with the board in such form as the

30

board shall from time to time prescribe, which shall be

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1

accompanied by a filing fee and a license fee as prescribed in

2

section 614-A of the act of April 9, 1929 (P.L.177, No.175),

3

known as "The Administrative Code of [1929," and a license fee

4

of one hundred dollars.] 1929." Every such application shall

5

contain a description of the premises for which the applicant

6

desires a license and shall set forth such other material

7

information as may be required by the board.

8

(c)  If the applicant is a natural person, his application

9

must show that he is a citizen of the United States or a

10

resident alien and a resident of this Commonwealth. If the

11

applicant is an association or partnership, each and every

12

member of the association or partnership must be a citizen of

13

the United States or a resident alien and a resident of this

14

Commonwealth. If the applicant is a corporation, the application

15

must show that the corporation was created under the laws of

16

Pennsylvania or holds a certificate of authority to transact

17

business in Pennsylvania, and that all officers, directors and

18

stockholders are citizens of the United States or resident

19

aliens.

20

(d)  [Holders] Except as otherwise provided under subsection

21

(d.1), holders of such licenses may purchase from manufacturers

22

or bring or import into this Commonwealth wine to be used for

23

sacramental or religious purposes only, and bottle and sell the

24

same to priests, clergymen and rabbis for use in the cathedral,

25

church, synagogue or temple, or for sustaining members of the

26

congregation or members of the faith who attend religious

27

services, duly certified by such priests, clergymen or rabbis.

28

The sale and use of wine for sacramental or religious purposes

29

shall be subject to and in accordance with the regulations of

30

the board.

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1

(d.1)  In addition to the privileges conferred under

2

subsection (d), the holder of a sacramental wine license who

3

owns or operates an eating place or a restaurant may sell food

4

for consumption on or off the premises and sell for consumption

5

on the premises only the wine that it may acquire and sell

6

pursuant to its license. In addition, the holder of a

7

sacramental wine license may allow persons who have purchased

8

but only partially consumed a bottle of wine on the premises to

9

remove the bottle from the premises so long as the bottle was

10

purchased in conjunction with a meal that was consumed on the

11

premises and so long as the bottle is resealed.

12

(e)  [Any] Except as provided under subsection (d.1), any 

13

wine purchased under the authority of this section shall not be

14

used for any other than sacramental or religious purposes.

15

Sacramental wine may not be sold by any person except the holder

16

of a sacramental wine license.

17

(f)  Every sacramental wine licensee shall maintain on the

18

licensed premises such records as the board may prescribe. No

19

deliveries of sacramental wine shall be made unless and until an

20

order therefor is on file at the principal place of business in

21

Pennsylvania. All shipments into Pennsylvania of wine to be used

22

[for sacramental or religious purposes] as prescribed in this

23

section shall be consigned to the principal place of business

24

maintained by the licensee.

25

(g)  Any such license may be suspended or revoked by the

26

board upon proof satisfactory to it that the licensee has

27

violated any law of this Commonwealth or any regulation of the

28

board relating to liquor and alcohol. The procedure in such

29

cases shall be the same as for the revocation and suspension of

30

hotel, restaurant and club licenses.

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1

(h)  For purposes of this section the term "sacramental wine"

2

shall mean any wine that is clearly marked on the bottle by the

3

manufacturer as being produced or manufactured in accordance

4

with religious law, practice or custom.

5

Section 3.  Section 411(e) of the act is amended to read:

6

Section 411.  Interlocking Business Prohibited.--* * *

7

(e)  Except as herein provided, no hotel, restaurant, retail

8

dispenser or club licensee, and no officer, director or

9

stockholder, agent or employe of any such licensee shall in any

10

wise be interested, directly or indirectly, in the ownership or

11

leasehold of any property or the equipment of any property or

12

any mortgage lien against the same, used by a distributor,

13

importing distributor, or by an importer or sacramental wine

14

licensee, in the conduct of his business; nor shall any hotel,

15

restaurant, retail dispenser or club licensee, or any officer,

16

director, stockholder, agent or employe of any such licensee,

17

either directly or indirectly, lend any moneys, credit, or give

18

anything of value or the equivalent thereof, to any distributor,

19

importing distributor, importer or sacramental wine licensee,

20

for equipping, fitting out, or maintaining and conducting,

21

either in whole or in part, an establishment used in the conduct

22

of his business.

23

The purpose of this section is to require a separation of the

24

financial and business interests between manufacturers and

25

holders of hotel or restaurant liquor licenses and, as herein

26

provided, of club licenses, issued under this article, and no

27

person shall, by any device whatsoever, directly or indirectly,

28

evade the provisions of the section. But in view of existing

29

economic conditions, nothing contained in this section shall be

30

construed to prohibit the ownership of property or conflicting

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1

interest by a manufacturer of any place occupied by a licensee

2

under this article after the manufacturer has continuously owned

3

and had a conflicting interest in such place for a period of at

4

least five years prior to July eighteenth, one thousand nine

5

hundred thirty-five: Provided, however, That this clause shall

6

not prohibit any hotel, restaurant or club liquor licensee from

7

owning land which is leased to, and the buildings thereon owned

8

by, a holder of a retail dispenser's license; and nothing in

9

this clause shall prevent the issuance of a retail dispenser's

10

license to a lessee of such lands who owns the buildings

11

thereon: And, provided further, That nothing contained in this

12

section shall be construed to prohibit any hotel, restaurant,

13

retail dispenser or club licensee or any officer, director or

14

stockholder, agent or employe of any such licensee from having a

15

financial or other interest, directly or indirectly in the

16

ownership or leasehold of any property or the equipment of any

17

property or any mortgage lien against same, used, leased by an

18

importer or sacramental wine licensee for the exclusive purpose

19

of maintaining commercial offices and on the condition that said

20

property is not used for the storage or sale of liquor or malt

21

or brewed beverages in any quantity[.]: And, provided further,

22

That nothing contained in this section shall be construed to

23

prohibit a member of the governing board of a public authority

24

created under subdivision (n) of Article XXIII of the act of

25

August 9, 1955 (P.L.323, No.130), known as "The County Code,"

26

from having an interest in a distributor or importing

27

distributor license notwithstanding the fact that the public

28

authority has an interest in one or more retail licenses or acts

29

as a landlord for one or more retail licenses.

30

Section 4.  The act is amended by adding a section to read:

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1

Section 415.  Enhanced Restaurant License.--(a)

2

Notwithstanding any other provision of law, a person holding a

3

slot machine license who also holds a restaurant license issued

4

by the Pennsylvania Liquor Control Board shall be eligible to

5

receive an enhanced restaurant license by registering with the

6

Liquor Control Board and paying an enhanced license fee of

7

$250,000. The holder of an enhanced restaurant license shall pay

8

an annual fee of $30,000.

9

(b)  An enhanced restaurant license shall not be subject to

10

section 471(c).

11

(c)  If the holder of an enhanced restaurant license is cited

12

and found to have violated a provision of this act, the enhanced

13

restaurant license shall be subject to a fine of not less than

14

$250 nor more than $25,000. The prior citation history of the

15

enhanced restaurant licensee shall be considered in determining

16

the amount of the fine.

17

Section 5.  Section 438(c) of the act is amended to read:

18

Section 438.  Number and Kinds of Licenses Allowed Same

19

Licensee.--* * *

20

(c)  No person shall possess more than one class of license,

21

except that a holder of a retail dispenser's license may also be

22

a holder of a retail liquor license[.]: Provided, however, That

23

nothing contained in this section shall be construed to prohibit

24

a member of the governing board of a public authority created

25

under subdivision (n) of Article XXIII of the act of August 9,

26

1955 (P.L.323, No.130), known as "The County Code," from having

27

an interest in a distributor or importing distributor license

28

notwithstanding the fact that the public authority has an

29

interest in one or more retail licenses or acts as a landlord

30

for one or more retail licenses.

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1

Section 6.  Section 443(g) of the act, amended May 31, 1996

2

(P.L.312, No.49), is amended to read:

3

Section 443.  Interlocking Business Prohibited.--* * *

4

(g)  The purpose of this section is to require a separation

5

of the financial and business interests between the various

6

classes of business regulated by subdivision (B) of this

7

article, and no person or corporation shall, by any device

8

whatsoever, directly or indirectly, evade the provisions of this

9

section. But in view of existing economic conditions, nothing

10

contained in this section shall be construed to prohibit the

11

ownership of property or conflicting interest by a malt or

12

brewed beverage manufacturer of any place occupied by a

13

distributor, importing distributor or retail dispenser after the

14

manufacturer has continuously owned and had a conflicting

15

interest in such place for a period of at least five years prior

16

to the eighteenth day of July, one thousand nine hundred thirty-

17

five: Provided, however, That a holder of a manufacturer's

18

license under section 431(a) who is eligible to operate a

19

brewery pub under section 446(2) or a limited winery as provided

20

for under section 505.2 may also hold and operate under a hotel

21

liquor license, a restaurant liquor license or a malt and brewed

22

beverages retail license on the manufacturer's or limited

23

winery's licensed premises. The hotel liquor license or

24

restaurant liquor license or the malt and brewed beverages

25

retail license shall be acquired by the manufacturer or limited

26

winery subject to section 461 and shall satisfy all requirements

27

for each respective license[.]: And, provided further, That

28

nothing contained in this section shall be construed to prohibit

29

a member of the governing board of a public authority created

30

under subdivision (n) of Article XXIII of the act of August 9,

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1

1955 (P.L.323, No.130), known as "The County Code," from having

2

an interest in a distributor or importing distributor license

3

notwithstanding the fact that the public authority has an

4

interest in one or more retail licenses or acts as a landlord

5

for one or more retail licenses.

6

The term "manufacturer" as used in this section shall include

7

manufacturers of malt or brewed beverages as defined in this act

8

and any person manufacturing any malt or brewed beverages

9

outside of this Commonwealth.

10

Section 3 2 7.  Section 461(c)(9) of the act, amended July 

<--

11

16, 2007 (P.L.107, No.34), is amended to read:

12

Section 461.  Limiting Number of Retail Licenses To Be Issued

13

In Each County.--* * *

14

(c)  The word "hotel" as used in this section shall mean any

15

reputable place operated by a responsible person of good

16

reputation where the public may, for a consideration, obtain

17

sleeping accommodations, and which shall have the following

18

number of bedrooms and requirements in each case--at least one-

19

half of the required number of bedrooms shall be regularly

20

available to transient guests seven days weekly, except in

21

resort areas; at least one-third of such bedrooms shall be

22

equipped with hot and cold water, a lavatory, commode, bathtub

23

or shower and a clothes closet; and an additional one-third of

24

the total of such required rooms shall be equipped with lavatory

25

and commode:

26

* * *

27

(9)  Upon application to and subject to inspection by the

28

board, hotel licensees under clause (8) of this subsection shall

29

no longer be required to maintain bedrooms for public

30

accommodation. [However, areas required and designated as

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1

bedrooms for public accommodation prior to the effective date of

2

this clause may not subsequently be used as licensed serving

3

area.] Such area may be used as licensed storage area or serving

4

area consistent with this act and existing regulations.

5

* * *

6

Section 4 3 8.  This act shall take effect in 60 days.

<--

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