Regular Session 2019-2020 House Bill 0763 P.N. 4472

SENATE AMENDED

PRIOR PRINTER'S NOS. 813, 1328

PRINTER'S NO. 4472

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

763

Session of

2019

INTRODUCED BY O'NEAL, PYLE, ROTHMAN, IRVIN, BERNSTINE, MULLERY,

HILL-EVANS AND KENYATTA, MARCH 8, 2019

SENATOR STEFANO, LAW AND JUSTICE, IN SENATE, AS AMENDED,

OCTOBER 5, 2020

AN ACT

Amending the act of April 12, 1951 (P.L.90, No.21), entitled "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 and liquor, alcohol and malt and

brewed beverages, further providing for authority to issue

liquor licenses to hotels, restaurants and clubs, for sales

by liquor licensees and restrictions, for sale of malt or

brewed beverages by liquor licensees, FOR INTERLOCKING

BUSINESS PROHIBITED, for retail dispensers' restrictions on

purchases and sales, for unlawful acts relative to malt or

brewed beverages and licensees, FOR UNLAWFUL ACTS RELATIVE TO

LIQUOR, MALT AND BREWED BEVERAGES AND LICENSEES and for

premises to be vacated by patrons.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 401(a), 406(a)(4), 407(a), 442(a)(1),

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492(7) and 499(a.1)(4) of the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code, are amended to read:

SECTION 1. SECTIONS 401(A), 406(A)(4) AND 407(A) OF THE ACT

OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, ARE

AMENDED TO READ:

Section 401. Authority to Issue Liquor Licenses to Hotels,

Restaurants and Clubs.--(a) Subject to the provisions of this

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

kept or operated by a hotel, restaurant or club and specified in

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

premises such liquor and, subject to the provisions of this act

and the regulations made thereunder, to sell the same and also

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

licensees[, other than clubs,] shall be permitted to sell malt

or brewed beverages for consumption off the premises where sold

in quantities of not more than one hundred ninety-two fluid

ounces in a single sale to one person as provided for in section

407. Such licenses shall be known as hotel liquor licenses,

restaurant liquor licenses and club liquor licenses,

respectively. No person who holds any public office that

involves the duty to enforce any of the penal laws of the United

States, this Commonwealth or of any political subdivision of

this Commonwealth may have any interest in a hotel or restaurant

liquor license. This prohibition applies to anyone with arrest

authority, including, but not limited to, United States

attorneys, State attorneys general, district attorneys, sheriffs

and police officers. This prohibition shall also apply to

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magisterial district judges, judges or any other individuals who

can impose a criminal sentence. This prohibition does not apply

to members of the General Assembly, township supervisors, city

councilpersons, mayors without arrest authority and any other

public official who does not have the ability to arrest or the

ability to impose a criminal sentence. This section does not

apply if the proposed premises are located outside the

jurisdiction of the individual in question.

* * *

Section 406. Sales by Liquor Licensees; Restrictions.--(a)

* * *

(4) (i) Hotel and restaurant liquor licensees, municipal

golf course restaurant liquor licensees and privately-owned

public golf course restaurant licensees which do not qualify for

and purchase such special permit, their servants, agents or

employes may sell liquor and malt or brewed beverages only after

seven o'clock antemeridian of any day and until two o'clock

antemeridian of the following day, and shall not sell after two

o'clock antemeridian on Sunday. No club licensee or its

servants, agents or employes may sell liquor or malt or brewed

beverages between the hours of three o'clock antemeridian and

seven o'clock antemeridian on any day. No public service liquor

licensee or its servants, agents, or employes may sell liquor or

malt or brewed beverages between the hours of two o'clock

antemeridian and seven o'clock antemeridian on any day.

(ii) No club licensee or its servants, agents or employes

may sell liquor or malt or brewed beverages for off-premises

consumption between the hours of two o'clock antemeridian and

seven o'clock antemeridian on any day.

* * *

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Section 407. Sale of Malt or Brewed Beverages by Liquor

Licensees.--(a) Every liquor license issued to a hotel,

restaurant, club, or a railroad, pullman or steamship company

under this subdivision (A) for the sale of liquor shall

authorize the licensee to sell malt or brewed beverages at the

same places but subject to the same restrictions and penalties

as apply to sales of liquor, except that licensees [other than

clubs] may sell malt or brewed beverages for consumption off the

premises where sold in quantities of not more than one hundred

ninety-two fluid ounces in a single sale to one person. The

sales may be made in either open or closed containers, Provided,

however, That a municipality may adopt an ordinance restricting

open containers in public places. No licensee under this

subdivision (A) shall at the same time be the holder of any

other class of license, except a retail dispenser's license

authorizing the sale of malt or brewed beverages only.

* * *

SECTION 2. SECTION 411(E) OF THE ACT IS AMENDED AND THE

SECTION IS AMENDED BY ADDING A SUBSECTION 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,

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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, 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 OR A MANUFACTURER'S 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

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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 GUARANTEEING ANY

LOANS, OR 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, AN ENTITY LICENSED AS A LIMITED

WINERY MAY HOLD AND OPERATE A RESTAURANT LIQUOR LICENSE AT ONE

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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 IN ANY SALES TO OR FROM THE RETAIL LICENSEE

IN WHICH THE PERSON HOLDS THE TEN PER CENTUM (10%) OR LESS

INTEREST.[: AND, PROVIDED FURTHER, THAT NOTHING IN THIS SECTION

SHALL PROHIBIT A PERSON WHO HAS AN OWNERSHIP INTEREST IN A

LIMITED WINERY LICENSE FROM BEING EMPLOYED BY AN ENTITY THAT

HOLDS A HOTEL, RESTAURANT, EATING PLACE OR CLUB LICENSE IF THE

PERSON IS NOT EMPLOYED AS ALCOHOL SERVICE PERSONNEL OR AS

MANAGER.]

(E.1) NOTHING IN SUBSECTION (E) SHALL PROHIBIT ANY OF THE

FOLLOWING:

(1) A PERSON WHO HAS AN OWNERSHIP INTEREST IN A LIMITED

WINERY LICENSE FROM BEING EMPLOYED BY AN ENTITY THAT HOLDS A

HOTEL, RESTAURANT, EATING PLACE OR CLUB LICENSE IF THE PERSON IS

NOT EMPLOYED AS ALCOHOL SERVICE PERSONNEL OR AS MANAGER.

(2) A PERSON WHO HAS AN OWNERSHIP INTEREST IN A BREWERY

LICENSE FROM BEING EMPLOYED BY AN ENTITY THAT HOLDS A HOTEL,

RESTAURANT, EATING PLACE OR CLUB LICENSE IF THE PERSON HAS NO

JOB DUTIES OR RESPONSIBILITIES ON, OR CONNECTED WITH, THE

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LICENSED PREMISES IN ANY CAPACITY.

* * *

SECTION 3. SECTION 442(A)(1), 492(7), 493(11) AND 499(A.1)

(4) OF THE ACT ARE AMENDED TO READ:

Section 442. Retail Dispensers' Restrictions on Purchases

and Sales.--(a) (1) No retail dispenser shall purchase or

receive any malt or brewed beverages except in original

containers as prepared for the market by the manufacturer at the

place of manufacture. The retail dispenser may thereafter break

the bulk upon the licensed premises and sell or dispense the

same for consumption on or off the premises so licensed. No

retail dispenser may sell malt or brewed beverages for

consumption off the premises in quantities in excess of one

hundred ninety-two fluid ounces. Sales may be made in open or

closed containers, Provided, however, That a municipality may

adopt an ordinance restricting open containers in public places.

No club licensee may sell any malt or brewed beverages for

consumption off the premises [where sold or] to persons not

members of the club.

* * *

Section 492. Unlawful Acts Relative to Malt or Brewed

Beverages and Licensees.--

It shall be unlawful--

* * *

(7) (i) Clubs Selling Between Three O'Clock Antemeridian

and Seven O'Clock Antemeridian. For any club retail dispenser,

or its servants, agents or employes, to sell malt or brewed

beverages between the hours of three o'clock antemeridian and

seven o'clock antemeridian on any day.

(ii) Clubs Selling Malt or Brewed Beverages for Off-Premises

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Consumption between Two O'Clock Antemeridian and Seven O'Clock

Antemeridian. For any club retail dispenser or its servants,

agents or employes, to sell malt or brewed beverages for off-

premises consumption between the hours of two o'clock

antemeridian and seven o'clock antemeridian on any day.

* * *

SECTION 493. UNLAWFUL ACTS RELATIVE TO LIQUOR, MALT AND

BREWED BEVERAGES AND LICENSEES.--THE TERM "LICENSEE," WHEN USED

IN THIS SECTION, SHALL MEAN THOSE PERSONS LICENSED UNDER THE

PROVISIONS OF ARTICLE IV, UNLESS THE CONTEXT CLEARLY INDICATES

OTHERWISE.

IT SHALL BE UNLAWFUL--

* * *

(11) LICENSEES EMPLOYED BY OTHERS. FOR ANY HOTEL, RESTAURANT

OR CLUB LIQUOR LICENSEE, OR ANY MALT OR BREWED BEVERAGE

LICENSEE, OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE OF SUCH

LICENSEE, TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR

INDIRECTLY, BY ANY DISTRIBUTOR, IMPORTING DISTRIBUTOR,

MANUFACTURER, IMPORTER OR VENDOR LICENSEE OR ANY OUT OF STATE

MANUFACTURER. IT SHALL ALSO BE UNLAWFUL FOR ANY DISTRIBUTOR OR

IMPORTING DISTRIBUTOR, OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE

OF SUCH LICENSEE, TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR

INDIRECTLY, BY ANY OTHER DISTRIBUTOR, IMPORTING DISTRIBUTOR,

MANUFACTURER, IMPORTER, VENDOR, OUT OF STATE MANUFACTURER, HOTEL

RESTAURANT, MALT OR BREWED BEVERAGE LICENSEE, OR CLUB LIQUOR

LICENSEE. IT SHALL ALSO BE UNLAWFUL FOR ANY MANUFACTURER,

IMPORTER, OR VENDOR LICENSEE, OR ANY OUT OF STATE MANUFACTURER,

OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE OF SUCH LICENSEE OR

MANUFACTURER, TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR

INDIRECTLY, BY ANY HOTEL, RESTAURANT OR CLUB LIQUOR LICENSEE OR

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ANY MALT OR BREWED BEVERAGE LICENSEE OR ANY DISTRIBUTOR OR

IMPORTING DISTRIBUTOR LICENSEE. NOTHING IN THIS SUBSECTION SHALL

BE CONSTRUED TO PROHIBIT A MANUFACTURER OR LIMITED WINERY

LICENSEE, OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE OF SUCH

LICENSEE, TO BE EMPLOYED AT THE SAME TIME BY A HOTEL, RESTAURANT

OR RETAIL DISPENSER LICENSEE IF THE HOTEL, RESTAURANT OR RETAIL

DISPENSER LICENSEE IS LOCATED AT THE MANUFACTURER OR LIMITED

WINERY PREMISES PURSUANT TO SECTION 443. FOR THE PURPOSES OF

THIS SUBSECTION, AN OFFICER, SERVANT, AGENT OR EMPLOYE OF A

LICENSEE OR MANUFACTURER IS AN INDIVIDUAL WHO HAS EITHER AN

OWNERSHIP INTEREST IN THE LICENSEE OR MANUFACTURER OR WHO

RECEIVES COMPENSATION FOR HIS OR HER WORK ON BEHALF OF THE

LICENSEE OR MANUFACTURER: PROVIDED FURTHER, THAT NOTHING IN THIS

SECTION SHALL PROHIBIT A PERSON WHO HAS AN OWNERSHIP INTEREST IN

A LIMITED WINERY LICENSE FROM BEING EMPLOYED BY AN ENTITY THAT

HOLDS A HOTEL, RESTAURANT, EATING PLACE OR CLUB LICENSE IF THE

PERSON IS NOT EMPLOYED AS ALCOHOL SERVICE PERSONNEL OR AS A

MANAGER[.]: AND, PROVIDED FURTHER, THAT NOTHING IN THIS SECTION

SHALL PROHIBIT A PERSON WHO HAS AN OWNERSHIP INTEREST IN A

BREWERY LICENSE FROM BEING EMPLOYED BY AN ENTITY THAT HOLDS A

HOTEL, RESTAURANT, EATING PLACE OR CLUB LICENSE IF THE PERSON

HAS NO JOB DUTIES OR RESPONSIBILITIES ON, OR CONNECTED WITH, THE

LICENSED PREMISES IN ANY CAPACITY.

* * *

Section 499. Premises to be Vacated by Patrons.--* * *

(a.1) Subsection (a) shall not apply to sales of malt and

brewed beverages for consumption off the premises when the

following conditions are met:

* * *

(4) no club licensee may sell any malt or brewed beverage

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for consumption off the premises [where sold or] to any persons

who are not members of the club.

* * *

Section 2 4. This act shall take effect in 30 days.

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