THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL, JANUARY 29, 2009

REFERRED TO LAW AND JUSTICE, JANUARY 29, 2009  

AN ACT

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

reenacted, "An act relating to alcoholic liquors, alcohol and

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws," in

licenses and regulations relating to liquor, alcohol and malt

and brewed beverages, further providing for interlocking

businesses prohibited and for number and kinds of licenses

allowed same licensee.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 411(e) and 438 of the act of April 12,

1951 (P.L.90, No.21), known as the Liquor Code, reenacted and

amended June 29, 1987 (P.L.32, No.14), are amended to read:

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

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

dispenser or club licensee, and no officer, director or

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

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

leasehold of any property or the equipment of any property or

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

importing distributor, or by an importer or sacramental wine

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

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

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

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

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

importing distributor, importer or sacramental wine licensee,

for equipping, fitting out, or maintaining and conducting,

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

of his business.

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

financial and business interests between manufacturers and

holders of hotel or restaurant liquor licenses and, as herein

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

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

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

economic conditions, nothing contained in this section shall be

construed to prohibit the ownership of property or conflicting

interest by a manufacturer of any place occupied by a licensee

under this article after the manufacturer has continuously owned

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

least five years prior to July eighteenth, one thousand nine

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

not prohibit any hotel, restaurant or club liquor licensee from

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

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

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

license to a lessee of such lands who owns the buildings

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

section shall be construed to prohibit any hotel, restaurant,

retail dispenser or club licensee or any officer, director or

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

financial or other interest, directly or indirectly in the

ownership or leasehold of any property or the equipment of any

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

importer or sacramental wine licensee for the exclusive purpose

of maintaining commercial offices and on the condition that said

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

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

That nothing contained in this section shall be construed to

prohibit a member of the governing board of a public authority

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

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

from having an interest in a distributor or importing

distributor license notwithstanding the fact that the public

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

as a landlord for one or more retail licenses.

Section 438.  Number and Kinds of Licenses Allowed Same

Licensee.--* * *

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

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

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

nothing contained in this section shall be construed to prohibit

a member of the governing board of a public authority created

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

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

an interest in a distributor or importing distributor license

notwithstanding the fact that the public authority has an

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

for one or more retail licenses.

Section 2.  Section 443(g) of the act, amended May 31, 1996

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

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

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

of the financial and business interests between the various

classes of business regulated by subdivision (B) of this

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

whatsoever, directly or indirectly, evade the provisions of this

section. But in view of existing economic conditions, nothing

contained in this section shall be construed to prohibit the

ownership of property or conflicting interest by a malt or

brewed beverage manufacturer of any place occupied by a

distributor, importing distributor or retail dispenser after the

manufacturer has continuously owned and had a conflicting

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

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

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

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

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

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

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

beverages retail license on the manufacturer's or limited

winery's licensed premises. The hotel liquor license or

restaurant liquor license or the malt and brewed beverages

retail license shall be acquired by the manufacturer or limited

winery subject to section 461 and shall satisfy all requirements

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

nothing contained in this section shall be construed to prohibit

a member of the governing board of a public authority created

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

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

an interest in a distributor or importing distributor license

notwithstanding the fact that the public authority has an

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

for one or more retail licenses.

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

manufacturers of malt or brewed beverages as defined in this act

and any person manufacturing any malt or brewed beverages

outside of this Commonwealth.

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