AN ACT

 

1Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2reenacted, "An act relating to alcoholic liquors, alcohol and
3malt and brewed beverages; amending, revising, consolidating
4and changing the laws relating thereto; regulating and
5restricting the manufacture, purchase, sale, possession,
6consumption, importation, transportation, furnishing, holding
7in bond, holding in storage, traffic in and use of alcoholic
8liquors, alcohol and malt and brewed beverages and the
9persons engaged or employed therein; defining the powers and
10duties of the Pennsylvania Liquor Control Board; providing
11for the establishment and operation of State liquor stores,
12for the payment of certain license fees to the respective
13municipalities and townships, for the abatement of certain
14nuisances and, in certain cases, for search and seizure
15without warrant; prescribing penalties and forfeitures;
16providing for local option, and repealing existing laws," <-in 
17liquor and alcohol, further providing for interlocking 
18business prohibited; in malt and brewed beverages, further 
19providing for number and kinds of licenses allowed same 
20licensee and for interlocking business prohibited; and, in
21distilleries, wineries, bonded warehouses, bailees for hire
22and transporters for hire, further providing for limited
23wineries.

24The General Assembly of the Commonwealth of Pennsylvania
25hereby enacts as follows:

<-26Section 1. Section 505.2(a) of the act of April 12, 1951
27(P.L.90, No.21), known as the Liquor Code, reenacted and amended
28June 29, 1987 (P.L.32, No.14), is amended by adding a paragraph

1to read:

<-2Section 1. Section 411(e) of the act of April 12, 1951
3(P.L.90, No.21), known as the Liquor Code, reenacted and amended
4June 29, 1987 (P.L.32, No.14) and amended December 22, 2011
5(P.L.530, No.113), is amended to read:

6Section 411. Interlocking Business Prohibited.--* * *

7(e) Except as herein provided, no hotel, restaurant, retail
8dispenser or club licensee, and no officer, director or
9stockholder, agent or employe of any such licensee shall in any
10wise be interested, directly or indirectly, in the ownership or
11leasehold of any property or the equipment of any property or
12any mortgage lien against the same, used by a distributor,
13importing distributor, or by an importer or sacramental wine
14licensee, in the conduct of his business; nor shall any hotel,
15restaurant, retail dispenser or club licensee, or any officer,
16director, stockholder, agent or employe of any such licensee,
17either directly or indirectly, lend any moneys, credit, or give
18anything of value or the equivalent thereof, to any distributor,
19importing distributor, importer or sacramental wine licensee,
20for equipping, fitting out, or maintaining and conducting,
21either in whole or in part, an establishment used in the conduct
22of his business.

23The purpose of this section is to require a separation of the
24financial and business interests between manufacturers and
25holders of hotel or restaurant liquor licenses and, as herein
26provided, of club licenses, issued under this article, and no
27person shall, by any device whatsoever, directly or indirectly,
28evade the provisions of the section. But in view of existing
29economic conditions, nothing contained in this section shall be
30construed to prohibit the ownership of property or conflicting

1interest by a manufacturer of any place occupied by a licensee
2under this article after the manufacturer has continuously owned
3and had a conflicting interest in such place for a period of at
4least five years prior to July eighteenth, one thousand nine
5hundred thirty-five: Provided, however, That this clause shall
6not prohibit any hotel, restaurant or club liquor licensee from
7owning land which is leased to, and the buildings thereon owned
8by, a holder of a retail dispenser's license; and nothing in
9this clause shall prevent the issuance of a retail dispenser's
10license to a lessee of such lands who owns the buildings
11thereon: And, provided further, That nothing contained in this
12section shall be construed to prohibit any hotel, restaurant,
13retail dispenser or club licensee or any officer, director or
14stockholder, agent or employe of any such licensee from having a
15financial or other interest, directly or indirectly in the
16ownership or leasehold of any property or the equipment of any
17property or any mortgage lien against same, used, leased by an
18importer or sacramental wine licensee for the exclusive purpose
19of maintaining commercial offices and on the condition that said
20property is not used for the storage or sale of liquor or malt
21or brewed beverages in any quantity: And, provided further, That
22nothing contained in this section shall prohibit an officer or
23member of a licensed privately owned private golf course
24catering club from having an interest in a limited winery
25license: And, provided further, That nothing contained in this
26section shall be construed to prohibit a member of the governing
27board of a public authority created under subdivision (n) of
28Article XXIII of the act of August 9, 1955 (P.L.323, No.130),
29known as "The County Code," from having an interest in a
30distributor or importing distributor license notwithstanding the

1fact that the public authority has an interest in one or more
2retail licenses or acts as a landlord for one or more retail
3licenses: And, provided further, That, nothing in this section
4may prohibit an employe of a hotel or restaurant licensee from
5having an interest in any property used by a limited winery
6licensee or in guaranteeing any loans, or lending any moneys,
7providing credit or giving anything of value to a limited winery
8licensee or its officers, directors and shareholders, provided
9that the person also is not an officer of or does not have any
10interest in or exercise any control over any other licensed
11entity that engages in any sales to or from the licensee: And,
12provided further, That, notwithstanding any other provision of
13this section, an entity may acquire both a manufacturer's
14license or a limited winery license and a hotel, restaurant or
15retail dispenser license for use at the same location and more
16than one location may be so licensed[.]: And, provided further, 
17That, notwithstanding any other provision of this section, the 
18holder of a limited winery license may also hold and operate 
19under a hotel liquor license, a restaurant liquor license or a 
20retail dispenser license on premises other than the limited 
21winery's licensed premises. The licenses and a person's interest
22in the licenses or in the entity holding the licenses shall not
23be subject to this section. Provided further, That, a person who
24is a holder of five per centum (5%) or less of securities or
25other interests in a publicly or privately held domestic or
26foreign corporation, partnership, limited liability company or
27other form of legal entity owning a restaurant liquor license or
28retail dispenser's license shall not be deemed to possess a
29financial interest and is not subject to the provisions of this
30section, provided that the person is not an officer of, employe

1of or does not have any interest in or exercise any control over
2any other licensed entity that engages in any sales to or from
3the restaurant liquor or retail dispenser licensee in which the
4person holds the five per centum (5%) or less interest.

5Section 2. Section 438(c) of the act, amended June 25, 2010
6(P.L.217, No.35), is amended to read:

7Section 438. Number and Kinds of Licenses Allowed Same
8Licensee.--* * *

9(c) No person shall possess more than one class of license,
10except that a holder of a retail dispenser's license may also be
11a holder of a retail liquor license: Provided, however, That
12nothing contained in this section shall be construed to prohibit
13a member of the governing board of a public authority created
14under subdivision (n) of Article XXIII of the act of August 9,
151955 (P.L.323, No.130), known as "The County Code," from having
16an interest in a distributor or importing distributor license
17notwithstanding the fact that the public authority has an
18interest in one or more retail licenses or acts as a landlord
19for one or more retail licenses: And, provided further, That,
20notwithstanding any other provision of this section, an entity
21may acquire both a manufacturer's license or a limited winery
22license and a hotel, restaurant or retail dispenser license for
23use at the same location and more than one location may be so
24licensed[.]: And, provided further, That, notwithstanding any 
25other provision of this section, the holder of a limited winery 
26license may also hold and operate under a hotel liquor license, 
27a restaurant liquor license or a retail dispenser license on 
28premises other than the limited winery's licensed premises. The
29licenses and a person's interest in the licenses or in the
30entity holding the licenses shall not be subject to this

1section.

2Section 3. Section 443(g) of the act, amended December 22,
32011 (P.L.530, No.113), is amended to read:

4Section 443. Interlocking Business Prohibited.--* * *

5(g) The purpose of this section is to require a separation
6of the financial and business interests between the various
7classes of business regulated by subdivision (B) of this
8article, and no person or corporation shall, by any device
9whatsoever, directly or indirectly, evade the provisions of this
10section. But in view of existing economic conditions, nothing
11contained in this section shall be construed to prohibit the
12ownership of property or conflicting interest by a malt or
13brewed beverage manufacturer of any place occupied by a
14distributor, importing distributor or retail dispenser after the
15manufacturer has continuously owned and had a conflicting
16interest in such place for a period of at least five years prior
17to the eighteenth day of July, one thousand nine hundred thirty-
18five: Provided, however, That a holder of a manufacturer's
19license under section 431(a) who is eligible to operate a
20brewery pub under section 446(2) or a limited winery as provided
21for under section 505.2 may also hold and operate under a hotel
22liquor license, a restaurant liquor license or a malt and brewed
23beverages retail license on the manufacturer's or limited
24winery's licensed premises[.]: And, provided further, That, 
25notwithstanding any other provision of this section, the holder 
26of a limited winery license may also hold and operate under a 
27hotel liquor license, a restaurant liquor license or a retail 
28dispenser license on premises other than the limited winery's 
29licensed premises. The hotel liquor license or restaurant liquor
30license or the malt and brewed beverages retail license shall be

1acquired by the manufacturer or limited winery subject to
2section 461 and shall satisfy all requirements for each
3respective license: And, provided further, That nothing 
4contained in this section shall be construed to prohibit a 
5member of the governing board of a public authority created 
6under subdivision (n) of Article XXIII of the act of August 9, 
71955 (P.L.323, No.130), known as "The County Code," from having 
8an interest in a distributor or importing distributor license 
9notwithstanding the fact that the public authority has an 
10interest in one or more retail licenses or acts as a landlord 
11for one or more retail licenses.

12A person who is a holder of five per centum (5%) or less of
13securities or other interests in a publicly or privately held
14domestic or foreign corporation, partnership, limited liability
15company or other form of legal entity owning a restaurant liquor
16license or retail dispenser's license shall not be deemed to
17possess a financial interest and is not subject to the
18provisions of this section, provided that the person is not an
19officer of, employe of or does not have any interest in or
20exercise any control over any other licensed entity that engages
21in any sales to or from the restaurant liquor or retail
22dispenser licensee in which the person holds the five per centum
23(5%) or less interest.

24The term "manufacturer" as used in this section shall include
25manufacturers of malt or brewed beverages as defined in this act
26and any person manufacturing any malt or brewed beverages
27outside of this Commonwealth.

28Section 4. Section 505.2(a) of the act is amended by adding
29a paragraph to read:

30Section 505.2. Limited Wineries.--(a) In the interest of

1promoting tourism and recreational development in Pennsylvania,
2holders of a limited winery license may:

3* * *

4(5.1) <-Apply for and hold a hotel liquor license, a
5restaurant liquor license or a malt and brewed beverages retail
6license for a premises not located on or near the licensed
7limited winery premises under the same conditions and
8regulations as any other hotel liquor license, restaurant liquor
9license or malt and brewed beverages retail license and subject
10to the limitation on the issuance of such licenses pursuant to
11section 461. <-Notwithstanding any other provision of law to the
12contrary, apply for and hold hotel liquor licenses, restaurant
13liquor licenses or retail dispenser licenses for premises other
14than the licensed limited winery premises under the same
15conditions and regulations as any other hotel liquor license,
16restaurant liquor license or retail dispenser license and
17subject to the limitation on the issuance of such licenses
18pursuant to sections 461 and 472.

19* * *

20Section <-2 5. This act shall take effect in 60 days.