PRINTER'S NO. 1089
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
933
Session of
2017
INTRODUCED BY MOUL, JAMES, MILLARD, EVERETT, WARD, ORTITAY,
GABLER AND JOZWIAK, MARCH 23, 2017
REFERRED TO COMMITTEE ON LIQUOR CONTROL, MARCH 23, 2017
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, liquor, alcohol and malt and brewed
beverages, further providing for interlocking business
prohibited, for number and kinds of licenses allowed same
licensee and for interlocking business prohibited; and, in
distilleries, wineries, bonded warehouses, bailees for hire
and transporters for hire, further providing for limited
wineries.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 411(e) of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, amended November 15,
2016 (P.L.1286, No.166), is amended to read:
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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
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not prohibit any hotel, restaurant or club liquor licensee, or
any officer, director or stockholder of any such licensee, from
owning land or buildings which are leased to a holder of a
retail dispenser's license, a distillery license or a limited
distillery license: 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
prohibit an officer or member of a licensed privately owned
private golf course catering club from having an interest in a
limited winery 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: And, provided further, That,
nothing in this section may prohibit an employe of a hotel or
restaurant licensee from having an interest in any property used
by a limited winery licensee or in guaranteeing any loans, or
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lending any moneys, providing credit or giving anything of value
to a limited winery licensee or its officers, directors and
shareholders, provided that the person also is not an officer of
or does not have any interest in or exercise any control over
any other licensed entity that engages in any sales to or from
the licensee: And, provided further, That, notwithstanding any
other provision of this section, an entity may acquire both a
manufacturer's license or a limited winery license and a hotel,
restaurant or retail dispenser license for use at the same
location and more than one location may be so licensed[.]: And,
provided further, That, notwithstanding any other provision of
this section, the holder of a limited winery license may also
hold and operate under a hotel liquor license, a restaurant
liquor license or a retail dispenser license on premises other
than limited winery's licensed premises. And, provided further,
That, notwithstanding any other provision of this section, an
entity licensed as a limited winery may hold and operate a
restaurant liquor license at one of its additional, board-
approved locations instead of at its primary location where
manufacturing occurs. The licenses and a person's interest in
the licenses or in the entity holding the licenses shall not be
subject to this section. Provided further, That, a person who is
a holder of ten per centum (10%) or less of securities or other
interests in a publicly or privately held domestic or foreign
corporation, partnership, limited liability company or other
form of legal entity owning a retail license shall not be deemed
to possess a financial interest and is not subject to the
provisions of this section, provided that the person is not an
officer of, employe of or does not have any interest in or
exercise any control over any other licensed entity that engages
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in any sales to or from the retail licensee in which the person
holds the ten per centum (10%) or less interest.
* * *
Section 2. Sections 438(c) and 443(g) of the act are amended
to read:
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: And, provided further, That,
notwithstanding any other provision of this section, an entity
may acquire both a manufacturer's license or a limited winery
license and a hotel, restaurant or retail dispenser license for
use at the same location and more than one location may be so
licensed[.]: And, provided further, That, notwithstanding any
other provision of this section, the holder of a limited winery
license may also hold and operate under a hotel liquor license,
a restaurant liquor license or a retail dispenser license on
premises other than the limited winery's licensed premises. The
licenses and a person's interest in the licenses or in the
entity holding the licenses shall not be subject to this
section.
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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[.]: And, provided further, That,
notwithstanding any other provision of this section, the holder
of a limited winery license may also hold and operate under a
hotel liquor license, a restaurant liquor license or a retail
dispenser license on premises other than the 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
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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.
A person who is a holder of five per centum (5%) or less of
securities or other interests in a publicly or privately held
domestic or foreign corporation, partnership, limited liability
company or other form of legal entity owning a restaurant liquor
license or retail dispenser's license shall not be deemed to
possess a financial interest and is not subject to the
provisions of this section, provided that the person is not an
officer of, employe of or does not have any interest in or
exercise any control over any other licensed entity that engages
in any sales to or from the restaurant liquor or retail
dispenser licensee in which the person holds the five per centum
(5%) or less interest.
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. Section 505.2(a) of the act is amended by adding
a paragraph to read:
Section 505.2. Limited Wineries.--(a) In the interest of
promoting tourism and recreational development in Pennsylvania,
holders of a limited winery license may:
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* * *
(5.1) Notwithstanding any other provision of law to the
contrary, apply for and hold hotel liquor licenses, restaurant
liquor licenses or retail dispenser licenses for premises other
than the licensed limited winery premises under the same
conditions and regulations as any other hotel liquor license,
restaurant liquor license or retail dispenser license and
subject to the limitation on the issuance of those licenses
under sections 461 and 472.
* * *
Section 4. This act shall take effect in 60 days.
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