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        PRIOR PRINTER'S NOS. 1402, 1610, 1998,        PRINTER'S NO. 2077
        2037

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1164 Session of 1997


        INTRODUCED BY THOMPSON, WAGNER, EARLL, STOUT, SALVATORE,
           WOZNIAK, HART AND MURPHY, OCTOBER 20, 1997

        SENATE AMENDMENTS TO HOUSE AMENDMENTS, JUNE 9, 1998

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
     2     reenacted, "An act relating to alcoholic liquors, alcohol and
     3     malt and brewed beverages; amending, revising, consolidating
     4     and changing the laws relating thereto; regulating and
     5     restricting the manufacture, purchase, sale, possession,
     6     consumption, importation, transportation, furnishing, holding
     7     in bond, holding in storage, traffic in and use of alcoholic
     8     liquors, alcohol and malt and brewed beverages and the
     9     persons engaged or employed therein; defining the powers and
    10     duties of the Pennsylvania Liquor Control Board; providing
    11     for the establishment and operation of State liquor stores,
    12     for the payment of certain license fees to the respective
    13     municipalities and townships, for the abatement of certain
    14     nuisances and, in certain cases, for search and seizure
    15     without warrant; prescribing penalties and forfeitures;
    16     providing for local option, and repealing existing laws,"
    17     further providing for sales by liquor licensees, for           <--
    18     secondary service areas of certain licensees, PROVIDING FOR    <--
    19     ALCOHOLIC CIDER; FURTHER PROVIDING for certain performing
    20     arts facilities, for wine auction permits, for malt and
    21     brewed beverages licenses, stadium or arena permits, for
    22     distributors and importing distributors restrictions, for
    23     interlocking business, for malt or brewed beverages
    24     manufactured outside this Commonwealth, for exceptions to
    25     limiting the number of retail licenses issued in each
    26     municipality, for incorporated units of National veterans
    27     organizations, for licenses not assignable, for application
    28     filing dates, for the filing of license renewal applications,
    29     for display of prices of alcoholic beverages, for licensee's
    30     outside advertisements, for special occasion permits and for
    31     licensees employed by others.

    32     The General Assembly of the Commonwealth of Pennsylvania

     1  hereby enacts as follows:
     2     Section 1.  Section 406(a) of the act of April 12, 1951        <--
     3  (P.L.90, No.21), known as the Liquor Code, reenacted and amended
     4  June 29, 1987 (P.L.32, No.14), is amended by adding a clause to
     5  read:
     6     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
     7  * * *
     8     (8)  Notwithstanding other provisions to the contrary, a
     9  catering club licensee that is a volunteer fire company may sell
    10  liquor or malt or brewed beverages to nonmembers who purchase
    11  tickets in advance or at the door for a catered function.
    12     * * *
    13     Section 2.  Section 406.1 of the act, amended July 1, 1994
    14  (P.L.402, No.61), is amended to read:
    15     Section 406.1.  Secondary Service Area.--[Upon application of
    16  any restaurant, hotel, club, any stadium as described in section
    17  408.9 or municipal golf course liquor licensee, and payment of
    18  the appropriate fee,] Upon application and payment of the
    19  appropriate fee by any golf course licensee prescribed in
    20  section 461, any class of retail licensee operating at and in
    21  conjunction with a golf course as defined in section 102 or ski
    22  facility, or any stadium as prescribed in section 408.9, the
    23  board may approve a secondary service area by extending the
    24  licensed premises to include one additional permanent structure
    25  with dimensions of at least one hundred seventy-five square
    26  feet, enclosed on at least three sides [and having adequate
    27  seating]. Such secondary service area must be located on
    28  property having a minimum area of one (1) acre, and must be on
    29  land which is immediate, abutting, adjacent or contiguous to the
    30  licensed premises [with no intervening public thoroughfare]. In
    19970S1164B2077                  - 2 -

     1  any stadium as described in section 408.9, only malt or brewed
     2  beverages may be served and there shall be no intervening public
     3  thoroughfare between the licensed premises and a secondary
     4  service area. There shall be no requirement that the secondary
     5  service area be physically connected to the original licensed
     6  premises. In addition, there shall be no requirement that the
     7  secondary service area be located in the same municipality as
     8  the original licensed premises, provided, however, that the
     9  board shall not approve a secondary service area in this case if
    10  that secondary service area is located in any municipality where
    11  the granting of liquor licenses has been prohibited as provided
    12  in this article. Notwithstanding 40 Pa. Code § 7.21(c)(3), the
    13  licensee shall be permitted to store, serve, sell or dispense
    14  food, liquor and malt or brewed beverages at the board approved
    15  secondary service area.
    16     SECTION 1.  THE DEFINITION OF "MALT OR BREWED BEVERAGES" IN    <--
    17  SECTION 102 OF THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN
    18  AS THE LIQUOR CODE, REENACTED AND AMENDED JUNE 29, 1987 (P.L.32,
    19  NO.14), IS AMENDED AND THE SECTION IS AMENDED BY ADDING A
    20  DEFINITION TO READ:
    21     SECTION 102.  DEFINITIONS.--THE FOLLOWING WORDS OR PHRASES,
    22  UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE, SHALL HAVE THE
    23  MEANINGS ASCRIBED TO THEM IN THIS SECTION:
    24     * * *
    25     "ALCOHOLIC CIDER" SHALL MEAN A BEVERAGE WHICH MAY CONTAIN
    26  CARBONATION IN AN AMOUNT NOT TO EXCEED THREE HUNDRED NINETY-TWO
    27  ONE THOUSANDTHS OF A GRAM PER ONE HUNDRED MILLILITERS AND
    28  FLAVORS, PRODUCED THROUGH ALCOHOLIC FERMENTATION OF ONLY APPLES
    29  OR APPLE JUICE, CONSISTING OF AT LEAST ONE-HALF OF ONE PER
    30  CENTUM, BUT NOT GREATER THAN FIVE AND ONE-HALF PER CENTUM,
    19970S1164B2077                  - 3 -

     1  ALCOHOL BY VOLUME AND SOLD OR OFFERED FOR SALE AS ALCOHOLIC
     2  CIDER AND NOT AS A WINE, A WINE PRODUCT, OR AS A SUBSTITUTE FOR
     3  WINE, IN BOTTLES, CASES, KEGS, CANS OR OTHER SUITABLE CONTAINERS
     4  OF THE TYPE USED FOR THE SALE OF MALT OR BREWED BEVERAGES IN
     5  THIS COMMONWEALTH.
     6     * * *
     7     "MALT OR BREWED BEVERAGES" [MEANS] SHALL MEAN ANY BEER, LAGER
     8  BEER, ALE, PORTER OR SIMILAR FERMENTED MALT BEVERAGE CONTAINING
     9  ONE-HALF OF ONE PER CENTUM OR MORE OF ALCOHOL BY VOLUME, BY
    10  WHATEVER NAME SUCH BEVERAGE MAY BE CALLED, AND SHALL MEAN
    11  ALCOHOLIC CIDER.
    12     * * *
    13     Section 3 2.  Section 408.4(a), (c) and (e) of the act,        <--
    14  amended April 29, 1994 (P.L.212, No.30), October 5, 1994
    15  (P.L.522, No.77), December 20, 1996 (P.L.1523, No.199) and
    16  February 18, 1998 (P.L.162, No.25), are amended and the section
    17  is amended by adding a subsection to read:
    18     Section 408.4.  Special Occasion Permits.--(a)  Upon
    19  application of any hospital, church, synagogue, volunteer fire
    20  company, volunteer ambulance company, volunteer rescue squad,
    21  nonprofit agricultural association in existence for at least ten
    22  years, bona fide sportsmen's club in existence for at least ten
    23  years, nationally chartered veterans' organization and any
    24  affiliated lodge or subdivision of such organization, fraternal
    25  benefit society that is licensed to do business in this
    26  Commonwealth and any affiliated lodge or subdivision of such
    27  fraternal benefit society, or one auxiliary of any of the
    28  foregoing, and upon payment of the prescribed fee for special
    29  occasion permits under section 614-A of the act of April 9, 1929
    30  (P.L.177, No.175), known as "The Administrative Code of 1929,"
    19970S1164B2077                  - 4 -

     1  the board shall issue a special occasion permit good for a
     2  period of not more than six consecutive or nonconsecutive days
     3  during a calendar year. Special occasion permits may also be
     4  issued to a museum operated by a nonprofit corporation [in a      <--
     5  city of the third class or township of the first class or], a     <--
     6  nonprofit corporation engaged in the performing arts [in a city   <--
     7  of the third class or in an incorporated town], or an arts        <--
     8  council for a period of not more than six nonconsecutive or ten
     9  consecutive days at the prescribed fee for special occasion
    10  permits under section 614-A of "The Administrative Code of
    11  1929."
    12     * * *
    13     (c)  Such special occasion permit shall only be valid for the
    14  number of days stated in the permit. Only one permit may be
    15  issued to any permittee during the year. Provided, that a museum
    16  operated by a nonprofit corporation [in a city of the third       <--
    17  class or township of the first class and], a nonprofit            <--
    18  corporation engaged in the performing arts [in a city of the      <--
    19  third class], or an arts council may be issued no more than six   <--
    20  permits during the year, each permit being valid for only one
    21  day, or in the alternative, one permit valid for no more than a
    22  total of ten consecutive days per year[, which may be issued      <--
    23  only during the month of August].                                 <--
    24     * * *
    25     (e)  The provisions of this section shall not be applicable
    26  to any of the following:
    27     (1)  A licensee now or hereafter possessing a caterer's
    28  license, [nor to any] other than a volunteer fire company,
    29  volunteer ambulance company or volunteer rescue squad, which
    30  owns its own facility and wishes to use its special occasion
    19970S1164B2077                  - 5 -

     1  permit at that facility.
     2     (2)  A professional fund raiser.
     3     * * *
     4     (g)  For the purposes of this section "arts council" means a
     5  tax-exempt organization which promotes the visual arts,
     6  performing arts, or both, and which receives funding under the
     7  Local Arts Services Program administered by the Pennsylvania
     8  Council on the Arts.
     9     Section 4 3.  Section 408.6(a) of the act, amended February    <--
    10  18, 1998 (P.L.162, No.25), is amended to read:
    11     Section 408.6.  Performing Arts Facilities in Second Class A
    12  Cities, Third Class Cities, boroughs and Townships of the Second
    13  Class Located in Fourth Class Counties.--(a)  The board is
    14  authorized to issue a restaurant liquor license to a nonprofit
    15  corporation or to a concessionaire selected by such nonprofit
    16  corporation in any city of the second class A, any city of the
    17  third class or any borough for the retail sale of liquor and
    18  malt or brewed beverages by the glass, open bottles or other
    19  container or in any mixture for consumption on any city-owned
    20  premises utilized as a nonprofit performing arts facility or any
    21  other premises utilized as a nonprofit performing arts facility
    22  where there is an available seating capacity within the premises
    23  of [six hundred fifty] five hundred or more: Provided, however,
    24  That no sale or consumption of such beverages shall take place
    25  on any portions of such premises other than service areas
    26  approved by the board.
    27     * * *
    28     Section 5 4.  Section 408.12(a) of the act added July 1, 1994  <--
    29  (P.L.402, No.61), is amended to read:
    30     Section 408.12.  Wine Auction Permits.--(a)  Upon application
    19970S1164B2077                  - 6 -

     1  of any nonprofit public television station which is a member of
     2  the Pennsylvania Public Television Network, any orchestra
     3  located in a county of the first or second class which is
     4  operated by a nonprofit corporation [or], any museum located in
     5  a county of the first or second class which is operated by a
     6  nonprofit corporation or any nonprofit corporation located in
     7  any county of the third class which trains and places dogs for
     8  people who are physically handicapped and upon payment of a fee
     9  of thirty dollars ($30) per day, the board shall issue a wine
    10  auction permit good for a period of not more than four
    11  consecutive or nonconsecutive days per calendar year.
    12     * * *
    13     Section 6 5.  Section 431(a) and (b) of the act, amended May   <--
    14  31, 1996 (P.L.312, No.49), are amended and the section is
    15  amended by adding subsections to read:
    16     Section 431.  Malt and Brewed Beverages Manufacturers',
    17  Distributors' and Importing Distributors' Licenses.--(a)  The
    18  board shall issue to any person a resident of this Commonwealth
    19  of good repute who applies therefor, pays the license fee
    20  hereinafter prescribed, and files the bond hereinafter required,
    21  a manufacturer's license to produce and manufacture malt or
    22  brewed beverages, and to transport, sell and deliver malt or
    23  brewed beverages [at or from one or more places of manufacture
    24  or storage,] from the place of manufacture only in original
    25  containers, in quantities of not less than a case or original
    26  containers containing one hundred twenty-eight ounces or more
    27  which may be sold separately anywhere within the Commonwealth.
    28  [Licenses for places of storage shall be limited to those
    29  maintained by manufacturers on July eighteenth, one thousand
    30  nine hundred thirty-five, and the board shall issue no licenses
    19970S1164B2077                  - 7 -

     1  for places of storage in addition to those maintained on July
     2  eighteenth, one thousand nine hundred thirty-five.] The
     3  application for such license shall be in such form and contain
     4  such information as the board shall require. All such licenses
     5  shall be granted for a license period to be determined by the
     6  board. Every manufacturer shall keep at his or its principal
     7  place of business, within the Commonwealth daily permanent
     8  records which shall show, (1) the quantities of raw materials
     9  received and used in the manufacture of malt or brewed beverages
    10  and the quantities of malt or brewed beverages manufactured and
    11  stored, (2) the sales of malt or brewed beverages, (3) the
    12  quantities of malt or brewed beverages stored for hire or
    13  transported for hire by or for the licensee, and (4) the names
    14  and addresses of the purchasers or other recipients thereof.
    15  Every place licensed as a manufacturer shall be subject to
    16  inspection by members of the board or by persons duly authorized
    17  and designated by the board, at any and all times of the day or
    18  night, as they may deem necessary, for the detection of
    19  violations of this act or of the rules and regulations of the
    20  board, or for the purpose of ascertaining the correctness of the
    21  records required to be kept by licensees. The books and records
    22  of such licensees shall at all times be open to inspection by
    23  members of the board or by persons duly authorized and
    24  designated by the board. Members of the board and its duly
    25  authorized agents shall have the right, without hindrance, to
    26  enter any place which is subject to inspection hereunder or any
    27  place where such records are kept for the purpose of making such
    28  inspections and making transcripts thereof. Whenever any checks
    29  issued in payment of filing and/or license fees shall be
    30  returned to the board as dishonored, the board shall charge a
    19970S1164B2077                  - 8 -

     1  fee of five dollars ($5.00) per hundred dollars or fractional
     2  part thereof, plus all protest fees, to the maker of such check
     3  submitted to the board. Failure to make full payment or pay the
     4  face amount of the check in full and all charges thereon as
     5  herein required within ten days after demand has been made by
     6  the board upon the maker of the check or upon notification to
     7  the board by the Department of Revenue or the Department of
     8  Labor and Industry of its objection, the license of such person
     9  shall immediately become invalid and shall remain invalid until
    10  payment and all charges are received by the board.
    11     (a.1)  Any out of State manufacturer whose products are sold
    12  and delivered within this Commonwealth and whose production
    13  exceeds 15,000 barrels per year shall be authorized to rent,
    14  lease or otherwise acquire space from an importing distributor
    15  or bailee for hire authorized by this act at no more than two
    16  locations per manufacturer for use of a segregated portion of a
    17  warehouse or other storage facility owned or operated by the
    18  importing distributor or bailee for hire at which the out of
    19  State manufacturer may store and sell malt or brewed beverages
    20  to any importing distributor to whom the out of State
    21  manufacturer has granted distribution rights pursuant to
    22  subsection (b) or to any purchaser outside this Commonwealth for
    23  delivery outside this Commonwealth; or to ship to its storage
    24  facility outside this Commonwealth. Such manufacturer may
    25  compensate the importing distributor or bailee for hire for any
    26  related storage or delivery services. The out of State
    27  manufacturer must file with the Liquor Control Board the rate of
    28  compensation to be paid. A separate written application must be
    29  filed to acquire storage licenses and the board may establish
    30  the information that must be provided on the application. The
    19970S1164B2077                  - 9 -

     1  initial filing must be made prior to any payments being made,
     2  and any subsequent changes in the rate of compensation must be
     3  filed within thirty days of any such change. Nothing in this act
     4  authorizing storage facilities for out of State manufacturers is
     5  intended to make any change in the manner malt or brewed
     6  beverages is distributed through the three-tier system.
     7     (a.2)  The board shall issue to a holder of a manufacturer's
     8  license whose production exceeds 15,000 barrels per year no more
     9  than two storage licenses per manufacturer to cover storage
    10  facilities separate from the location of the manufacturing
    11  facility. A manufacturer may use its storage facilities to
    12  receive, store, sell and distribute malt or brewed beverages in
    13  the same manner as it can at its place of manufacture. A
    14  separate written application must be filed to acquire storage
    15  licenses and the board is empowered to establish what
    16  information must be provided on that application. The filing and  <--
    17  license fees shall be prescribed in section 614-A of the act of
    18  April 9, 1929 (P.L.177, No.175), known as "The Administrative
    19  Code of 1929." Nothing in this act authorizing off-site storage
    20  facilities for manufacturers is intended to make any change in
    21  the manner malt or brewed beverages is distributed through the
    22  three-tier system.
    23     (b)  The board shall issue to any reputable person who
    24  applies therefor, pays the license fee hereinafter prescribed,
    25  and files the bond hereinafter required, a distributor's or
    26  importing distributor's license for the place which such person
    27  desires to maintain for the sale of malt or brewed beverages,
    28  not for consumption on the premises where sold, and in
    29  quantities of not less than a case or original containers
    30  containing one hundred twenty-eight ounces or more which may be
    19970S1164B2077                 - 10 -

     1  sold separately as prepared for the market by the manufacturer
     2  at the place of manufacture. The board shall have the discretion
     3  to refuse a license to any person or to any corporation,
     4  partnership or association if such person, or any officer or
     5  director of such corporation, or any member or partner of such
     6  partnership or association shall have been convicted or found
     7  guilty of a felony within a period of five years immediately
     8  preceding the date of application for the said license: And
     9  provided further, That, in the case of any new license or the
    10  transfer of any license to a new location, the board may, in its
    11  discretion, grant or refuse such new license or transfer if such
    12  place proposed to be licensed is within three hundred feet of
    13  any church, hospital, charitable institution, school or public
    14  playground, or if such new license or transfer is applied for a
    15  place which is within two hundred feet of any other premises
    16  which is licensed by the board: And provided further, That the
    17  board shall refuse any application for a new license or the
    18  transfer of any license to a new location if, in the board's
    19  opinion, such new license or transfer would be detrimental to
    20  the welfare, health, peace and morals of the inhabitants of the
    21  neighborhood within a radius of five hundred feet of the place
    22  proposed to be licensed. The board shall refuse any application
    23  for a new license or the transfer of any license to a location
    24  where the sale of liquid fuels or oil is conducted. The board
    25  shall require notice to be posted on the property or premises
    26  upon which the licensee or proposed licensee will engage in
    27  sales of malt or brewed beverages. This notice shall be similar
    28  to the notice required of hotel, restaurant and club liquor
    29  licensees.
    30     Except as hereinafter provided, such license shall authorize
    19970S1164B2077                 - 11 -

     1  the holder thereof to sell or deliver malt or brewed beverages
     2  in quantities above specified anywhere within the Commonwealth
     3  of Pennsylvania, which, in the case of distributors, have been
     4  purchased only from persons licensed under this act as
     5  manufacturers or importing distributors, and in the case of
     6  importing distributors, have been purchased from manufacturers
     7  or persons outside this Commonwealth engaged in the legal sale
     8  of malt or brewed beverages or from manufacturers or importing
     9  distributors licensed under this article. In the case of an
    10  importing distributor, the holder of such a license shall be
    11  authorized to store malt or brewed beverages owned by an out of
    12  State manufacturer at a segregated portion of a warehouse or
    13  other storage facility authorized by section 441(d) and operated
    14  by the importing distributor within its appointed territory, and
    15  deliver such beverages to another importing distributor who has
    16  been granted distribution rights by the out of State
    17  manufacturer as provided herein. The importing distributor shall
    18  be permitted to receive a fee from the out of State manufacturer
    19  for any related storage or delivery services. In the case of a
    20  bailee for hire hired by an out of State manufacturer, the
    21  holder of such a permit shall be authorized to receive or store
    22  malt or brewed beverages under the same conditions as permitted
    23  for a distributor or importing distributor under section 441(f),
    24  produced by that out of State manufacturer for sale by that
    25  manufacturer to importing distributors to whom that out of State
    26  manufacturer has given distribution rights pursuant to this
    27  subsection or to purchasers outside this Commonwealth for
    28  delivery outside this Commonwealth; or to ship to that out of
    29  State manufacturer's storage facilities outside this
    30  Commonwealth. The bailee for hire shall be permitted to receive
    19970S1164B2077                 - 12 -

     1  a fee from the out of State manufacturer for any related storage
     2  or delivery services. The bailee for hire shall, as required in
     3  Article V of this act, keep complete and accurate records of all
     4  transactions, inventory, receipts and shipments and make all
     5  records and the licensed areas available for inspection by the
     6  board and for the Pennsylvania State Police, Bureau of Liquor
     7  Control Enforcement during normal business hours.
     8     Each out of State manufacturer of malt or brewed beverages
     9  whose products are sold and delivered in this Commonwealth shall
    10  give distributing rights for such products in designated
    11  geographical areas to specific importing distributors, and such
    12  importing distributor shall not sell or deliver malt or brewed
    13  beverages manufactured by the out of State manufacturer to any
    14  person issued a license under the provisions of this act whose
    15  licensed premises are not located within the geographical area
    16  for which he has been given distributing rights by such
    17  manufacturer. Should a licensee accept the delivery of such malt
    18  or brewed beverages in violation of this section, said licensee
    19  shall be subject to a suspension of his license for at least
    20  thirty days: Provided, That the importing distributor holding
    21  such distributing rights for such product shall not sell or
    22  deliver the same to another importing distributor without first
    23  having entered into a written agreement with the said secondary
    24  importing distributor setting forth the terms and conditions
    25  under which such products are to be resold within the territory
    26  granted to the primary importing distributor by the
    27  manufacturer.
    28     When a Pennsylvania manufacturer of malt or brewed beverages
    29  licensed under this article names or constitutes a distributor
    30  or importing distributor as the primary or original supplier of
    19970S1164B2077                 - 13 -

     1  his product, he shall also designate the specific geographical
     2  area for which the said distributor or importing distributor is
     3  given distributing rights, and such distributor or importing
     4  distributor shall not sell or deliver the products of such
     5  manufacturer to any person issued a license under the provisions
     6  of this act whose licensed premises are not located within the
     7  geographical area for which distributing rights have been given
     8  to the distributor and importing distributor by the said
     9  manufacturer: Provided, That the importing distributor holding
    10  such distributing rights for such product shall not sell or
    11  deliver the same to another importing distributor without first
    12  having entered into a written agreement with the said secondary
    13  importing distributor setting forth the terms and conditions
    14  under which such products are to be resold within the territory
    15  granted to the primary importing distributor by the
    16  manufacturer. Nothing herein contained shall be construed to
    17  prevent any manufacturer from authorizing the importing
    18  distributor holding the distributing rights for a designated
    19  geographical area from selling the products of such manufacturer
    20  to another importing distributor also holding distributing
    21  rights from the same manufacturer for another geographical area,
    22  providing such authority be contained in writing and a copy
    23  thereof be given to each of the importing distributors so
    24  affected.
    25     * * *
    26     Section 7 6.  Section 433.1(a) and (b) of the act, amended     <--
    27  April 29, 1994 (P.L.212, No.30) and February 18, 1998 (P.L.162,
    28  No.25), are amended to read:
    29     Section 433.1.  Stadium or Arena Permits.--(a)  The board is
    30  hereby authorized to issue, in cities of the first, second and
    19970S1164B2077                 - 14 -

     1  third class, in counties of the third class, in school districts
     2  in counties of the third class and in townships of the second
     3  class in counties of the fifth class, special permits allowing
     4  the holders thereof to make retail sales of malt or brewed
     5  beverages in shatterproof containers at all events on premises
     6  principally utilized for competition of professional and amateur
     7  athletes and other types of entertainment having an available
     8  seating capacity of; (1) twelve thousand or more in cities of
     9  the first and second class; (2) four thousand or more and owned
    10  by the county or the city in cities of the third class; (3) four
    11  thousand two hundred or more and owned by counties of the third
    12  class; (4) two thousand five hundred or more in school districts
    13  in counties of the third class; and (5) five thousand or more in
    14  townships of the second class in counties of the fifth class:
    15  Provided, however, That in cities of the second class this
    16  section shall be applicable only to premises owned, leased or
    17  operated by any authority created under the act of July 29, 1953
    18  (P.L.1034, No.270), known as the "Public Auditorium Authorities
    19  Law." Such sales may be made only to adults and only on days
    20  when the premises are so used and only during the period from
    21  one hour before the start of and ending one-half hour after the
    22  close of the event on the premises: Provided, however, That in
    23  school districts in counties of the third class sales may not be
    24  made [only] during [professional] high school and
    25  intercollegiate athletic competition.
    26     Section 8 7.  Section 441(a) of the act, amended May 31, 1996  <--
    27  (P.L.312, No.49), is amended to read:
    28     Section 441.  Distributors' and Importing Distributors'
    29  Restrictions on Sales, Storage, Etc.--(a)  No distributor or
    30  importing distributor shall purchase, receive or resell any malt
    19970S1164B2077                 - 15 -

     1  or brewed beverages except:
     2     (1)  in the original containers as prepared for the market by
     3  the manufacturer at the place of manufacture; [or]
     4     (2)  in the case of identical containers repackaged in the
     5  manner described by subsection (f)[.]; or
     6     (3)  as provided in section 431(b).
     7     * * *
     8     Section 9 8.  Section 443(e) and (f) of the act are amended    <--
     9  to read:
    10     Section 443.  Interlocking Business Prohibited.--* * *
    11     (e)  Excepting as hereinafter provided, no manufacturer of
    12  malt or brewed beverages shall in any wise be interested, either
    13  directly or indirectly, in the ownership or leasehold of any
    14  property or any mortgage lien against the same, for which a
    15  distributor's or importing distributor's license is granted; nor
    16  shall any such manufacturer, either directly or indirectly, lend
    17  any moneys, credit, or their equivalent to, or guarantee the
    18  payment of any bond, mortgage, note or other obligation of, any
    19  distributor or importing distributor, in equipping, fitting out,
    20  or maintaining and conducting, either in whole or in part, an
    21  establishment or business where malt or brewed beverages are
    22  licensed for sale by a distributor or importing distributor,
    23  excepting only the usual credits allowed for the return of
    24  original containers in which malt or brewed beverages were
    25  originally packaged for the market by the manufacturer at the
    26  place of manufacture: Provided, however, That a holder of a
    27  manufacturer's license under section 431(a) who is eligible to
    28  operate a brewery pub under section 446(2) or a limited winery
    29  as provided for under section 505.2 may also hold and operate
    30  under a hotel liquor license, a restaurant liquor license or a
    19970S1164B2077                 - 16 -

     1  malt and brewed beverages retail license on the manufacturer's
     2  or limited winery's licensed premises. The hotel liquor license
     3  or restaurant liquor license or the malt and brewed beverages
     4  retail license shall be acquired by the manufacturer or limited
     5  winery subject to section 461 and shall satisfy all requirements
     6  for each respective license. Nothing in this section shall be
     7  construed to prohibit an out of State manufacturer from engaging
     8  in a transaction or making payments authorized by section
     9  431(a.1).
    10     (f)  No distributor, importing distributor or retail
    11  dispenser shall in anywise receive, either directly or
    12  indirectly, any credit, loan, moneys or the equivalent thereof
    13  from any other licensee, or from any officer, director or firm
    14  member of any other licensee, or from or through a subsidiary or
    15  affiliate of another licensee, or from any firm, association or
    16  corporation, except banking institutions, in which another
    17  licensee or any officer, director or firm member of another
    18  licensee has a substantial interest or exercises a control of
    19  its business policy, for equipping, fitting out, payment of
    20  license fee, maintaining and conducting, either in whole or in
    21  part, an establishment or business operated under a
    22  distributor's, importing distributor's or retail dispenser's
    23  license, excepting only the usual and customary credits allowed
    24  for the return of original containers in which malt or brewed
    25  beverages were packaged for the market by the manufacturer at
    26  the place of manufacture: Provided, however, That a holder of a
    27  manufacturer's license under section 431(a) who is eligible to
    28  operate a brewery pub under section 446(2) or a limited winery
    29  as provided for under section 505.2 may also hold and operate
    30  under a hotel liquor license, a restaurant liquor license or a
    19970S1164B2077                 - 17 -

     1  malt and brewed beverages retail license on the manufacturer's
     2  or limited winery's licensed premises. The hotel liquor license
     3  or restaurant liquor license or the malt and brewed beverages
     4  retail license shall be acquired by the manufacturer or limited
     5  winery subject to section 461 and shall satisfy all requirements
     6  for each respective license. Nothing in this section shall be
     7  construed to prohibit an importing distributor from receiving
     8  payment from an out of State manufacturer for engaging in a
     9  transaction or performing services authorized by section 431(b)
    10  or 444(a.1).
    11     * * *
    12     Section 10 9.  Section 444(e) of the act is amended and the    <--
    13  section is amended by adding a subsection to read:
    14     Section 444.  Malt or Brewed Beverages Manufactured Outside
    15  This Commonwealth.--* * *
    16     (a.1)  Any out of State manufacturer of malt or brewed
    17  beverages may appoint an importing distributor or bailee for
    18  hire to perform the services prescribed in section 431(b) and
    19  provide a fee to an importing distributor or bailee for hire who
    20  performs such services.
    21     * * *
    22     (e)  Upon such hearing, whether or not an appearance was made
    23  by such outside manufacturer, if satisfied that any such
    24  violation has occurred, the board is specifically empowered and
    25  directed to issue an order imposing a fine upon such outside
    26  manufacturer of not less than five hundred dollars ($500) or
    27  more than ten thousand dollars ($10,000), or prohibiting the
    28  importation of malt or brewed beverages manufactured by such
    29  [outside] out of State manufacturer into this Commonwealth for a
    30  period not exceeding three years, or both. Such fine or
    19970S1164B2077                 - 18 -

     1  prohibition shall not go into effect until twenty days have
     2  elapsed from the date of notice of issuance of the board's
     3  order.
     4     * * *
     5     Section 11 10.  Section 461(a) of the act, amended October 5,  <--
     6  1994 (P.L.522, No.77), is amended to read:
     7     Section 461.  Limiting Number of Retail Licenses To Be Issued
     8  In Each Municipality.--(a)  No licenses shall hereafter be
     9  granted by the board for the retail sale of malt or brewed
    10  beverages or the retail sale of liquor and malt or brewed
    11  beverages in excess of one of such licenses of any class for
    12  each three thousand inhabitants in any municipality, exclusive
    13  of licenses granted to airport restaurants, municipal golf
    14  courses, hotels, privately-owned public golf courses and units
    15  of nonprofit nationally chartered clubs, as defined in this
    16  section, whose applications are filed on or before December 31,
    17  [1994] 1998, and except those units falling under section 461.1,
    18  and clubs; but at least one such license may be granted in each
    19  municipality and in each part of a municipality where such
    20  municipality is split so that each part thereof is separated by
    21  another municipality, except in municipalities where the
    22  electors have voted against the granting of any retail licenses
    23  and except in that part of a split municipality where the
    24  electors have voted against the granting of any retail licenses.
    25  Nothing contained in this section shall be construed as denying
    26  the right to the board to renew or to transfer existing retail
    27  licenses of any class notwithstanding that the number of such
    28  licensed places in a municipality shall exceed the limitation
    29  hereinbefore prescribed; but where such number exceeds the
    30  limitation prescribed by this section, no new license, except
    19970S1164B2077                 - 19 -

     1  for hotels, municipal golf courses, airport restaurants,
     2  privately-owned public golf courses, privately-owned private
     3  golf course licensees and units of nonprofit nationally
     4  chartered clubs, as defined in this section, whose applications
     5  are filed on or before December 31, [1994] 1998, and except
     6  those units falling under section 461.1, shall be granted so
     7  long as said limitation is exceeded.
     8     * * *
     9     Section 12 11.  Section 461.1 of the act, amended June 30,     <--
    10  1992 (P.L.327, No.66), is amended to read:
    11     Section 461.1.  Incorporated Units of National Veterans'
    12  Organizations.--(a)  The board shall have the authority to issue
    13  new licenses to incorporated units of national veterans'
    14  organizations, as defined herein, in municipalities where the
    15  number of licenses exceeds the limitation prescribed by section
    16  461.
    17     (b)  The term "national veterans' organization" shall mean
    18  any veterans' organization having a national charter.
    19     The term "incorporated unit of a national veterans'
    20  organization" shall mean any incorporated post, branch, camp,
    21  detachment, lodge or other subordinate unit of a national
    22  veterans' organization having one hundred or more paid up
    23  members and organized for a period of at least one year prior to
    24  filing the application for a license. The term does not include
    25  auxiliaries, "sons of" or other similar organization.
    26     The term "affiliated organization" shall mean home
    27  associations, home corporations, auxiliaries, "sons of" or
    28  similar organizations which are directly affiliated with an
    29  incorporated unit or a national veterans' organization. An
    30  affiliated organization must meet the definition of a club set
    19970S1164B2077                 - 20 -

     1  forth in section 102, except that:
     2     (1)  if incorporated, the affiliated organization need not
     3  have been in continuous existence for at least one year prior to
     4  its application; or
     5     (2)  if unincorporated, the affiliated organization need not
     6  have been in continuous existence for at least ten years prior
     7  to its application.
     8     (c)  When the charter of an incorporated unit of a national
     9  veterans' organization is suspended or revoked, the [retail]
    10  club license of the organization shall also be suspended or
    11  [revoked] rescinded. The [retail] club license of an
    12  incorporated unit of a national veterans' organization is not
    13  transferable to any other organization or person[.], except as
    14  provided in this section.
    15     (d)  An incorporated unit of a national veterans'
    16  organization may transfer its club license to its affiliated
    17  organization as long as, in addition to fulfilling all the
    18  requirements pertaining to the transfer of club licenses, the
    19  state department of the national veterans' organization provides
    20  the board with written approval for such a transfer. The license
    21  shall be suspended or rescinded upon the suspension or
    22  revocation of the charter of the affiliated incorporated unit of
    23  the national veterans' organization. The license shall also be
    24  rescinded upon request of the state department of the national
    25  veterans' organization or if the affiliated organization's
    26  affiliation with the incorporated unit of the national veterans'
    27  organization is severed.
    28     (e)  Only one club license may be issued to the incorporated
    29  unit of the national veterans' organization, and the board may
    30  not issue a license to an incorporated unit of a national
    19970S1164B2077                 - 21 -

     1  veterans' organization if any of the unit's affiliated
     2  organizations holds a club license.
     3     (f)  For purposes of this section, a municipality which
     4  permits the issuance of club liquor licenses to incorporated
     5  units of national veterans' organizations also permits the
     6  transfer of such licenses to an affiliated organization of the
     7  incorporated unit of the national veterans' organization.
     8     (g)  An incorporated unit of a national veterans' association
     9  or an affiliated organization which has its license suspended or
    10  rescinded or its request for transfer denied under this section
    11  may request a hearing before a hearing examiner under section
    12  464. The board may not consider the propriety of the state
    13  department of the national veterans' organization's decision to
    14  suspend the charter, revoke the charter or refuse to approve the
    15  transfer. The written request from the state department of the
    16  national veterans' organization, standing alone, is admissible
    17  evidence at the board hearing. An appeal of the board's decision
    18  may be taken under section 464, except that the appeal shall not
    19  act as a supersedeas of the board's decision.
    20     Section 13 12.  Section 468(a) and (c) of the act, amended or  <--
    21  added June 24, 1982 (P.L.624, No.176), are amended to read:
    22     Section 468.  Licenses Not Assignable; Transfers.--(a)  (1)
    23  Licenses issued under this article may not be assigned. The
    24  board, upon payment of the transfer filing fee and the execution
    25  of a new bond, is hereby authorized to transfer any license
    26  issued by it under the provisions of this article from one
    27  person to another or from one place to another, or both, within
    28  the same municipality, and if the applicant is a unit of a
    29  nonprofit nationally chartered club, the board is hereby
    30  authorized to transfer such license to a place in any other
    19970S1164B2077                 - 22 -

     1  municipality within the same county if the sale of liquor or
     2  malt and brewed beverages are legal in such other municipality
     3  as the board may determine. Prior to the approval of an
     4  application for transfer by a unit of a nonprofit nationally
     5  chartered club the board shall make an affirmative finding, upon
     6  proof submitted by the applicant, and after investigation by the
     7  board, that at the time the application for transfer is made the
     8  club continues to hold a valid national charter and continues to
     9  function in fact as a club as defined in section 102. The board,
    10  in its discretion, may transfer an existing restaurant retail
    11  dispenser or club license from one municipality to another in
    12  the same county regardless of the quota limitations provided for
    13  in this act, if sales of liquor or malt and brewed beverages are
    14  legal in such other municipality and if the restaurant retail
    15  dispenser or club lost the use of the building in which it was
    16  located due to governmental exercise of the right of eminent
    17  domain and no other suitable building can be found in the first
    18  municipality.
    19     (2)  (i)  The board, in its discretion, may transfer an
    20  existing restaurant liquor license from one municipality to
    21  another municipality of the same county or in a contiguous
    22  county regardless of the quota limitations provided for in this
    23  act, if:
    24     (A)  sales of liquor or malt and brewed beverages are legal
    25  in such other municipality;
    26     (B)  the location in the same county or a contiguous county
    27  is an indoor bowling center; and
    28     (C)  the restaurant liquor license is currently located in an
    29  area which has been designated as blighted.
    30     (ii)  For purposes of this subsection, a property shall be
    19970S1164B2077                 - 23 -

     1  determined to be blighted if it is any of the following:
     2     (A)  real property within or outside a certified
     3  redevelopment area determined to be blighted property under the
     4  act of May 24, 1945 (P.L.991, No.385), known as the "Urban
     5  Redevelopment Law";
     6     (B)  any property declared to be blighted, under the "Urban
     7  Redevelopment Law," by a Pennsylvania local government or its
     8  agency; or
     9     (C)  any property which is located within a redevelopment
    10  area, when one of the stated purposes of designation as a
    11  redevelopment area is to remove blight, designated by a local
    12  government or its agencies under the "Urban Redevelopment Law."
    13     (iii)  If a restaurant liquor license is transferred to an
    14  indoor bowling center located outside of the municipality in
    15  which the license was originally issued, that restaurant liquor
    16  license may not be transferred within five years of the date of
    17  initial transfer unless the subsequent transfer is for use in an
    18  indoor bowling center. In the case of distributor and importing
    19  distributor licenses, the board may transfer any such license
    20  from its place in a municipality to a place in any other
    21  municipality within the same county, or from one place to
    22  another place within the same municipality, or exchange a
    23  distributor license for an importing distributor license or an
    24  importing distributor license for a distributor license, if the
    25  building for which the license is to be issued has, in the case
    26  of an importing distributor license, an area under one roof of
    27  two thousand five hundred square feet and, in the case of a
    28  distributor license, an area under one roof of one thousand
    29  square feet: And provided, That, in the case of all transfers of
    30  distributor or importing distributor licenses, whether from a
    19970S1164B2077                 - 24 -

     1  place within the same municipality to another place within the
     2  same municipality or from a place in a municipality to a place
     3  in any other municipality within the same county, and, in the
     4  case of an exchange of a distributor license for an importing
     5  distributor license or an importing distributor license for a
     6  distributor license, the premises to be affected by the transfer
     7  or exchange shall contain an office separate and apart from the
     8  remainder of the premises to be licensed for the purpose of
     9  keeping records, required by the board, adequate toilet
    10  facilities for employes of the licensee and an entrance on a
    11  public thoroughfare: Provided, however, That in the event that
    12  the majority of the voting electors of a municipality, at an
    13  election held under the provisions of any law so empowering them
    14  to do, shall vote against the issuance of distributor or
    15  importing distributor licenses in such municipality, the board
    16  is hereby authorized to transfer any such distributor or
    17  importing distributor license from its place in such
    18  municipality to a place in any other municipality within the
    19  same county, upon application prior to the expiration of any
    20  such license and upon payment of the transfer filing fee and the
    21  execution of a new bond; but no transfer shall be made to a
    22  person who would not have been eligible to receive the license
    23  originally nor for the transaction of business at a place for
    24  which the license could not lawfully have been issued
    25  originally, nor, except as herein provided, to a place as to
    26  which a license has been revoked.
    27     (3)  No license shall be transferred to any place or property
    28  upon which is located as a business the sale of liquid fuels and
    29  oil. Except in cases of emergency such as death, serious
    30  illness, or circumstances beyond the control of the licensee, as
    19970S1164B2077                 - 25 -

     1  the board may determine such circumstances to justify its
     2  action, transfers of licenses may be made only at times fixed by
     3  the board. In the case of the death of a licensee, the board may
     4  transfer the license to the surviving spouse or personal
     5  representative or to a person designated by him. From any
     6  refusal to grant a transfer or upon the grant of any transfer,
     7  the party aggrieved shall have the right of appeal to the proper
     8  court in the manner hereinbefore provided.
     9     * * *
    10     (c) (1)  The term "nonprofit nationally chartered club" shall
    11  mean any club which does not contemplate pecuniary gain or
    12  profit, incidental or otherwise, having a national charter.
    13     (2)  The term "unit of a nonprofit nationally chartered club"
    14  shall mean any post, branch, lodge or other subordinate unit of
    15  a nonprofit nationally chartered club.
    16     (3)  The term "indoor bowling center" shall mean an enclosed
    17  facility of at least twelve thousand square feet with a minimum
    18  of eighteen bowling lanes and which has as its primary focus the
    19  offering of bowling as a recreational activity to the general
    20  public.
    21     * * *
    22     Section 14 13.  Section 470(a) of the act, amended April 29,   <--
    23  1994 (P.L.212, No.30), is amended to read:
    24     Section 470.  Renewal of Licenses; Temporary Provisions for
    25  Licensees in Armed Service.--(a)  All applications for renewal
    26  of licenses under the provisions of this article shall be filed
    27  with a new bond, tax clearance from the Department of Revenue
    28  and the Department of Labor and Industry and requisite license
    29  and filing fees at least sixty days before the expiration date
    30  of same: Provided, however, That the board, in its discretion,
    19970S1164B2077                 - 26 -

     1  may accept nunc pro tunc a renewal application filed less than
     2  sixty days before the expiration date of the license with the
     3  required bond and fees, upon reasonable cause shown and the
     4  payment of an additional filing fee of one hundred dollars
     5  ($100.00) for late filing: And provided further, That except
     6  where the failure to file a renewal application on or before the
     7  expiration date has created a license quota vacancy after said
     8  expiration date which has been filled by the issuance of a new
     9  license, after such expiration date, but before the board has
    10  received a renewal application nunc pro tunc within the time
    11  prescribed herein the board, in its discretion, may, after
    12  hearing, accept a renewal application filed within [ten months]
    13  two years after the expiration date of the license with the
    14  required bond and fees upon the payment of an additional filing
    15  fee of two hundred fifty dollars ($250.00) for late filing.
    16  Where any such renewal application is filed less than sixty days
    17  before the expiration date, or subsequent to the expiration
    18  date, no license shall issue upon the filing of the renewal
    19  application until the matter is finally determined by the board
    20  and if an appeal is taken from the board's action the courts
    21  shall not order the issuance of the renewal license until final
    22  determination of the matter by the courts. A renewal application
    23  will not be considered filed unless accompanied by a new bond
    24  and the requisite filing and license fees and any additional
    25  filing fee required by this section. Unless the board shall have
    26  given ten days' previous notice to the applicant of objections
    27  to the renewal of his license, based upon violation by the
    28  licensee or his servants, agents or employes of any of the laws
    29  of the Commonwealth or regulations of the board relating to the
    30  manufacture, transportation, use, storage, importation,
    19970S1164B2077                 - 27 -

     1  possession or sale of liquors, alcohol or malt or brewed
     2  beverages, or the conduct of a licensed establishment, or unless
     3  the applicant has by his own act become a person of ill repute,
     4  or unless the premises do not meet the requirements of this act
     5  or the regulations of the board, the license of a licensee shall
     6  be renewed.
     7     * * *
     8     Section 15 14.  Section 493(11) of the act is amended to       <--
     9  read:
    10     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    11  Brewed Beverages and Licensees.--The term "licensee," when used
    12  in this section, shall mean those persons licensed under the
    13  provisions of Article IV, unless the context clearly indicates
    14  otherwise.
    15     It shall be unlawful--
    16     * * *
    17     (11)  Licensees Employed by Others. [For any hotel,
    18  restaurant or club liquor licensee, or any malt or brewed
    19  beverage licensee, or any servant, agent or employe of such
    20  licensee, to be at the same time employed, directly or
    21  indirectly, by any other person engaged in the manufacture,
    22  sale, transportation or storage of liquor, malt or brewed
    23  beverages or alcohol: Provided, That any person (except a
    24  licensee or the manager, officer or director of a licensee) who
    25  is employed by a retail licensee to prepare or serve food and
    26  beverages may be employed in the same capacity by another retail
    27  licensee during other hours or on other days.] For any hotel,
    28  restaurant or club liquor licensee, or any malt or brewed
    29  beverage licensee, or any officer, servant, agent or employe of
    30  such licensee, to be at the same time employed, directly or
    19970S1164B2077                 - 28 -

     1  indirectly, by any distributor, importing distributor,
     2  manufacturer, importer or vendor licensee or any out-of-State
     3  manufacturer. It shall also be unlawful for any distributor or
     4  importing distributor, or any officer, servant, agent or employe
     5  of such licensee to be at the same time employed, directly or
     6  indirectly, by any other distributor, importing distributor,
     7  manufacturer, importer, vendor, out-of-State manufacturer, hotel
     8  restaurant, malt or brewed beverage licensee, or club liquor
     9  licensee. It shall also be unlawful for any manufacturer,
    10  importer, or vendor licensee, or any out-of-State manufacturer
    11  or any officer, servant, agent or employe of such licensee, or
    12  manufacturer, to be at the same time employed, directly or
    13  indirectly, by any hotel, restaurant or club liquor licensee or
    14  any malt or brewed beverage licensee or any distributor or
    15  importing distributor licensee. Nothing in this subsection shall
    16  be construed to prohibit a manufacturer or limited winery
    17  licensee or any officer, servant, agent or employe of such
    18  licensee to be employed at the same time by a hotel, restaurant
    19  or retail dispenser licensee, if the hotel, restaurant or retail
    20  dispenser licensee is located at the manufacturer or limited
    21  winery premises pursuant to section 443. For the purposes of
    22  this subsection, an officer, servant, agent or employe of a
    23  licensee or manufacturer is an individual who has either an
    24  ownership interest in the licensee or manufacturer or who
    25  receives compensation for his or HER work on behalf of the        <--
    26  licensee or manufacturer.
    27     * * *
    28     Section 16 15.  Section 493(18) and (19) of the act are        <--
    29  repealed.
    30     Section 17.  The amendment of section 406.1 of the act         <--
    19970S1164B2077                 - 29 -

     1  relating to secondary service areas shall only apply to
     2  applications on file on or after the effective date of this
     3  section.
     4     Section 18.  This act shall take effect as follows:
     5         (1)  The addition of section 406(a)(8) of the act and
     6     this section shall take effect immediately.
     7         (2)  The remainder of this act shall take effect in 60
     8     days.
     9     SECTION 16.  SECTION 505.2 OF THE ACT, AMENDED APRIL 29, 1994  <--
    10  (P.L.212, NO.30) AND MAY 31, 1996 (P.L.312, NO.49), IS AMENDED
    11  TO READ:
    12     SECTION 505.2.  LIMITED WINERIES.--IN THE INTEREST OF
    13  PROMOTING TOURISM AND RECREATIONAL DEVELOPMENT IN PENNSYLVANIA,
    14  HOLDERS OF A LIMITED WINERY LICENSE MAY:
    15     (1)  PRODUCE ALCOHOLIC CIDERS, WINES AND WINE COOLERS ONLY
    16  FROM FRUITS GROWN IN PENNSYLVANIA IN AN AMOUNT NOT TO EXCEED TWO
    17  HUNDRED THOUSAND (200,000) GALLONS PER YEAR.
    18     (2)  SELL ALCOHOLIC CIDER, WINE AND WINE COOLERS PRODUCED BY
    19  THE LIMITED WINERY OR PURCHASED IN BULK IN BOND FROM ANOTHER
    20  PENNSYLVANIA LIMITED WINERY ON THE LICENSED PREMISES, UNDER SUCH
    21  CONDITIONS AND REGULATIONS AS THE BOARD MAY ENFORCE, TO THE
    22  BOARD, TO INDIVIDUALS AND TO HOTEL, RESTAURANT, CLUB AND PUBLIC
    23  SERVICE LIQUOR LICENSEES, AND TO PENNSYLVANIA WINERY LICENSEES:
    24  PROVIDED, THAT A LIMITED WINERY SHALL NOT, IN ANY CALENDAR YEAR,
    25  PURCHASE ALCOHOLIC CIDER OR WINE PRODUCED BY OTHER LIMITED
    26  WINERIES IN AN AMOUNT IN EXCESS OF FIFTY PER CENTUM OF THE
    27  ALCOHOLIC CIDER OR WINE PRODUCED BY THE PURCHASING LIMITED
    28  WINERY IN THE PRECEDING CALENDAR YEAR.
    29     (3)  SEPARATELY OR IN CONJUNCTION WITH OTHER LIMITED
    30  WINERIES, SELL ALCOHOLIC CIDER, WINE AND WINE COOLERS PRODUCED
    19970S1164B2077                 - 30 -

     1  BY THE LIMITED WINERY ON NO MORE THAN FIVE (5) BOARD-APPROVED
     2  LOCATIONS OTHER THAN THE LICENSED PREMISES, WITH NO BOTTLING OR
     3  PRODUCTION REQUIREMENT AT THOSE ADDITIONAL BOARD-APPROVED
     4  LOCATIONS AND UNDER SUCH CONDITIONS AND REGULATIONS AS THE BOARD
     5  MAY ENFORCE, TO THE BOARD, TO INDIVIDUALS AND TO HOTEL,
     6  RESTAURANT, CLUB AND PUBLIC SERVICE LIQUOR LICENSEES.
     7     (4)  AT THE DISCRETION OF THE BOARD, OBTAIN A SPECIAL [WINE]
     8  PERMIT TO PARTICIPATE IN ALCOHOLIC CIDER, WINE AND FOOD
     9  EXPOSITIONS OFF THE LICENSED PREMISES. A SPECIAL [WINE] PERMIT
    10  SHALL BE ISSUED UPON PROPER APPLICATION AND PAYMENT OF A FEE OF
    11  THIRTY DOLLARS ($30) PER DAY FOR EACH DAY OF PERMITTED USE, NOT
    12  TO EXCEED FIVE (5) CONSECUTIVE DAYS. A LIMITED WINERY MAY NOT
    13  OBTAIN MORE THAN FIVE (5) SPECIAL [WINE] PERMITS IN ANY CALENDAR
    14  YEAR. THE TOTAL NUMBER OF DAYS FOR ALL THE SPECIAL PERMITS MAY
    15  NOT EXCEED TEN (10) DAYS IN ANY CALENDAR YEAR. A SPECIAL [WINE]
    16  PERMIT SHALL ENTITLE THE HOLDER TO ENGAGE IN THE SALE OF
    17  ALCOHOLIC CIDER OR WINE PRODUCED BY THE BOTTLE OR IN CASE LOTS
    18  BY THE PERMITTEE UNDER THE AUTHORITY OF A LIMITED WINERY
    19  LICENSE. HOLDERS OF SPECIAL [WINE] PERMITS MAY PROVIDE TASTING
    20  SAMPLES OF WINES IN INDIVIDUAL PORTIONS NOT TO EXCEED ONE (1)
    21  FLUID OUNCE. SAMPLES AT ALCOHOLIC CIDER, WINE AND FOOD
    22  EXPOSITIONS MAY BE SOLD OR OFFERED FREE OF CHARGE. EXCEPT AS
    23  PROVIDED HEREIN, LIMITED WINERIES UTILIZING SPECIAL [WINE]
    24  PERMITS SHALL BE GOVERNED BY ALL APPLICABLE PROVISIONS OF THIS
    25  ACT AS WELL AS BY ALL APPLICABLE REGULATIONS OR CONDITIONS
    26  ADOPTED BY THE BOARD.
    27     FOR THE PURPOSES OF THIS CLAUSE, "ALCOHOLIC CIDER, WINE AND
    28  FOOD EXPOSITIONS" ARE DEFINED AS AFFAIRS HELD INDOORS OR
    29  OUTDOORS WITH THE PRIMARY INTENT OF EDUCATING THOSE IN
    30  ATTENDANCE OF THE AVAILABILITY, NATURE AND QUALITY OF
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     1  PENNSYLVANIA-PRODUCED ALCOHOLIC CIDERS AND WINES IN CONJUNCTION
     2  WITH SUITABLE FOOD DISPLAYS, DEMONSTRATIONS AND SALES. [WINE]
     3  ALCOHOLIC CIDER, WINE AND FOOD EXPOSITIONS MAY ALSO INCLUDE
     4  ACTIVITIES OTHER THAN ALCOHOLIC CIDER, WINE AND FOOD DISPLAYS,
     5  INCLUDING ARTS AND CRAFTS, MUSICAL ACTIVITIES, CULTURAL
     6  EXHIBITS, AGRICULTURAL EXHIBITS AND SIMILAR ACTIVITIES.
     7     (5)  APPLY FOR AND HOLD A HOTEL LIQUOR LICENSE, A RESTAURANT
     8  LIQUOR LICENSE OR A MALT AND BREWED BEVERAGES RETAIL LICENSE TO
     9  SELL FOR CONSUMPTION AT THE RESTAURANT OR LIMITED WINERY ON THE
    10  LICENSED WINERY PREMISES, LIQUOR, WINE AND MALT OR BREWED
    11  BEVERAGES REGARDLESS OF THE PLACE OF MANUFACTURE UNDER THE SAME
    12  CONDITIONS AND REGULATIONS AS ANY OTHER HOTEL LIQUOR LICENSE,
    13  RESTAURANT LIQUOR LICENSE OR MALT AND BREWED BEVERAGES RETAIL
    14  LICENSE.
    15     SECTION 17.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
    16                             ARTICLE X.
    17                     MISCELLANEOUS PROVISIONS.
    18     SECTION 1001.  CONSTRUCTION AND APPLICABILITY.--(A)  EXCEPT
    19  AS PROVIDED IN SUBSECTION (B), UNLESS THE CONTEXT CLEARLY
    20  INDICATES OTHERWISE, A REFERENCE TO "MALT OR BREWED BEVERAGES"
    21  IN A STATUTE SHALL BE CONSTRUED TO INCLUDE ALCOHOLIC CIDER.
    22     (B)  REGARDLESS OF CONTEXT, A REFERENCE TO "MALT OR BREWED
    23  BEVERAGES" IN ARTICLE XX OF THE ACT OF MARCH 4, 1971 (P.L.6,
    24  NO.2), KNOWN AS THE "TAX REFORM CODE OF 1971," SHALL BE
    25  CONSTRUED TO INCLUDE ALCOHOLIC CIDER.
    26     (C)  EXCEPT AS PROVIDED IN SUBSECTION (D), UNLESS THE CONTEXT
    27  CLEARLY INDICATES OTHERWISE, A REFERENCE TO "WINE" IN A STATUTE
    28  SHALL BE CONSTRUED TO EXCLUDE ALCOHOLIC CIDER.
    29     (D)  REGARDLESS OF CONTEXT, A REFERENCE TO "WINE" IN THE ACT
    30  OF DECEMBER 5, 1933 (SP.SESS., P.L.38, NO.6), KNOWN AS THE
    19970S1164B2077                 - 32 -

     1  "SPIRITUOUS AND VINOUS LIQUOR TAX LAW," SHALL BE CONSTRUED TO
     2  EXCLUDE ALCOHOLIC CIDER.
     3     SECTION 18.  THE FOLLOWING ACTS AND PARTS OF ACTS ARE
     4  REPEALED INSOFAR AS THEY ARE INCONSISTENT WITH THE AMENDMENT OR
     5  ADDITION OF SECTIONS 102 AND 505.2 AND ARTICLE X OF THE ACT:
     6     ACT OF DECEMBER 5, 1933 (SP.SESS., P.L.38, NO.6), KNOWN AS
     7  THE SPIRITUOUS AND VINOUS LIQUOR TAX LAW.
     8     ARTICLE XX OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN
     9  AS THE TAX REFORM CODE OF 1971.
    10     SECTION 19.  PENNSYLVANIA LIQUOR STORES MAY CONTINUE TO SELL
    11  ALCOHOLIC CIDER WITHIN ITS INVENTORY AFTER THE EFFECTIVE DATE OF
    12  THIS SECTION, UNTIL THE ALCOHOLIC CIDER WITHIN ITS CURRENT
    13  INVENTORY IS DEPLETED. THE PENNSYLVANIA LIQUOR CONTROL BOARD
    14  SHALL NOT PURCHASE ADDITIONAL ALCOHOLIC CIDER AFTER THE
    15  EFFECTIVE DATE OF THIS SECTION.
    16     SECTION 20.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    17         (1)  THE AMENDMENT OR ADDITION OF SECTIONS 102, 505.2 AND
    18     ARTICLE X OF THE ACT SHALL TAKE EFFECT IMMEDIATELY.
    19         (2)  SECTIONS 17 AND 18 OF THIS ACT AND THIS SECTION
    20     SHALL TAKE EFFECT IMMEDIATELY.
    21         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    22     DAYS.






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