H1033B1702A02408 BIL:JSL 06/28/17 #90 A02408
AMENDMENTS TO HOUSE BILL NO. 1033
Sponsor: SENATOR McILHINNEY
Printer's No. 1702
Amend Bill, page 1, lines 18 and 19, by striking out
"providing for wine or spirits enhanced" in line 18 and all of
line 19 and inserting
further providing for interlocking business prohibited and for
unlawful acts relative to liquor, malt and brewed beverages
and licensees.
Amend Bill, page 1, lines 22 through 26; page 2, lines 1
through 30; page 3, lines 1 through 27; by striking out all of
said lines on said pages and inserting
Section 1. Section 411(d) and (e) of the act of April 12,
1951 (P.L.90, No.21), known as the Liquor Code, amended June 8,
2016 (P.L.273, No.39) and November 15, 2016 (P.L.1286, No.166),
are amended to read:
Section 411. Interlocking Business Prohibited.--* * *
(d) Excepting as herein provided, no [hotel licensee,
restaurant licensee or club licensee, and no officer, director,
stockholder, agent or employe of any such licensee shall in any
wise be interested, either 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
manufacturer in manufacturing liquor or malt or brewed
beverages; nor shall any] hotel, restaurant 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 manufacturer for equipping, fitting out, or maintaining and
conducting, either in whole or in part, an establishment used
for the manufacture of liquor or malt or brewed beverages.
Notwithstanding any other provision of this section, a hotel,
restaurant or club licensee, or any officer, director,
stockholder, agent or employe of any such licensee, may act as
landlord or lessor to a manufacturer licensee.
(e) Except as herein provided, no hotel, restaurant, retail
dispenser or club licensee, and no officer, director or
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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, 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] 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
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
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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 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 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. 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 so long
as the person is not employed as alcohol service personnel or as
a manager.
* * *
Section 2. Section 493(11) of the act is amended to read:
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
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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
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. 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 so long as the person
is not employed as alcohol service personnel or as a manager.
* * *
Section 3. This act shall take effect in 60 days.
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See A02408 in
the context
of HB1033