PRINTER'S NO. 2340
No. 1547 Session of 2008
INTRODUCED BY EARLL, SEPTEMBER 5, 2008
REFERRED TO LAW AND JUSTICE, SEPTEMBER 5, 2008
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," in 17 licenses and regulations relating to liquor, alcohol and malt 18 and brewed beverages, further providing for interlocking 19 businesses prohibited and for number and kinds of licenses 20 allowed same licensee. 21 The General Assembly of the Commonwealth of Pennsylvania 22 hereby enacts as follows: 23 Section 1. Sections 411(e) and 438(c) of the act of April 24 12, 1951 (P.L.90, No.21), known as the Liquor Code, reenacted 25 and amended June 29, 1987 (P.L.32, No.14), are amended to read: 26 Section 411. Interlocking Business Prohibited.--* * *
1 (e) Except as herein provided, no hotel, restaurant, retail 2 dispenser or club licensee, and no officer, director or 3 stockholder, agent or employe of any such licensee shall in any 4 wise be interested, directly or indirectly, in the ownership or 5 leasehold of any property or the equipment of any property or 6 any mortgage lien against the same, used by a distributor, 7 importing distributor, or by an importer or sacramental wine 8 licensee, in the conduct of his business; nor shall any hotel, 9 restaurant, retail dispenser or club licensee, or any officer, 10 director, stockholder, agent or employe of any such licensee, 11 either directly or indirectly, lend any moneys, credit, or give 12 anything of value or the equivalent thereof, to any distributor, 13 importing distributor, importer or sacramental wine licensee, 14 for equipping, fitting out, or maintaining and conducting, 15 either in whole or in part, an establishment used in the conduct 16 of his business. 17 The purpose of this section is to require a separation of the 18 financial and business interests between manufacturers and 19 holders of hotel or restaurant liquor licenses and, as herein 20 provided, of club licenses, issued under this article, and no 21 person shall, by any device whatsoever, directly or indirectly, 22 evade the provisions of the section. But in view of existing 23 economic conditions, nothing contained in this section shall be 24 construed to prohibit the ownership of property or conflicting 25 interest by a manufacturer of any place occupied by a licensee 26 under this article after the manufacturer has continuously owned 27 and had a conflicting interest in such place for a period of at 28 least five years prior to July eighteenth, one thousand nine 29 hundred thirty-five: Provided, however, That this clause shall 30 not prohibit any hotel, restaurant or club liquor licensee from 20080S1547B2340 - 2 -
1 owning land which is leased to, and the buildings thereon owned 2 by, a holder of a retail dispenser's license; and nothing in 3 this clause shall prevent the issuance of a retail dispenser's 4 license to a lessee of such lands who owns the buildings 5 thereon: And, provided further, That nothing contained in this 6 section shall be construed to prohibit any hotel, restaurant, 7 retail dispenser or club licensee or any officer, director or 8 stockholder, agent or employe of any such licensee from having a 9 financial or other interest, directly or indirectly in the 10 ownership or leasehold of any property or the equipment of any 11 property or any mortgage lien against same, used, leased by an 12 importer or sacramental wine licensee for the exclusive purpose 13 of maintaining commercial offices and on the condition that said 14 property is not used for the storage or sale of liquor or malt 15 or brewed beverages in any quantity[.]: And, provided further, 16 That nothing contained in this section shall be construed to 17 prohibit a member of the governing board of a public authority 18 created under subdivision (n) of Article XXIII of the act of 19 August 9, 1955 (P.L.323, No.130), known as "The County Code," 20 from having an interest in a distributor or importing 21 distributor license notwithstanding the fact that the public 22 authority has an interest in one or more retail licenses or acts 23 as a landlord for one or more retail licenses. 24 Section 438. Number and Kinds of Licenses Allowed Same 25 Licensee.--* * * 26 (c) No person shall possess more than one class of license, 27 except that a holder of a retail dispenser's license may also be 28 a holder of a retail liquor license[.]: Provided, however, That 29 nothing contained in this section shall be construed to prohibit 30 a member of the governing board of a public authority created 20080S1547B2340 - 3 -
1 under subdivision (n) of Article XXIII of the act of August 9, 2 1955 (P.L.323, No.130), known as "The County Code," from having 3 an interest in a distributor or importing distributor license 4 notwithstanding the fact that the public authority has an 5 interest in one or more retail licenses or acts as a landlord 6 for one or more retail licenses. 7 Section 2. Section 443(g) of the act, amended May 31, 1996 8 (P.L.312, No.49), is amended to read: 9 Section 443. Interlocking Business Prohibited.--* * * 10 (g) The purpose of this section is to require a separation 11 of the financial and business interests between the various 12 classes of business regulated by subdivision (B) of this 13 article, and no person or corporation shall, by any device 14 whatsoever, directly or indirectly, evade the provisions of this 15 section. But in view of existing economic conditions, nothing 16 contained in this section shall be construed to prohibit the 17 ownership of property or conflicting interest by a malt or 18 brewed beverage manufacturer of any place occupied by a 19 distributor, importing distributor or retail dispenser after the 20 manufacturer has continuously owned and had a conflicting 21 interest in such place for a period of at least five years prior 22 to the eighteenth day of July, one thousand nine hundred thirty- 23 five: Provided, however, That a holder of a manufacturer's 24 license under section 431(a) who is eligible to operate a 25 brewery pub under section 446(2) or a limited winery as provided 26 for under section 505.2 may also hold and operate under a hotel 27 liquor license, a restaurant liquor license or a malt and brewed 28 beverages retail license on the manufacturer's or limited 29 winery's licensed premises. The hotel liquor license or 30 restaurant liquor license or the malt and brewed beverages 20080S1547B2340 - 4 -
1 retail license shall be acquired by the manufacturer or limited 2 winery subject to section 461 and shall satisfy all requirements 3 for each respective license[.]: And, provided further, That 4 nothing contained in this section shall be construed to prohibit 5 a member of the governing board of a public authority created 6 under subdivision (n) of Article XXIII of the act of August 9, 7 1955 (P.L.323, No.130), known as "The County Code," from having 8 an interest in a distributor or importing distributor license 9 notwithstanding the fact that the public authority has an 10 interest in one or more retail licenses or acts as a landlord 11 for one or more retail licenses. 12 The term "manufacturer" as used in this section shall include 13 manufacturers of malt or brewed beverages as defined in this act 14 and any person manufacturing any malt or brewed beverages 15 outside of this Commonwealth. 16 Section 3. This act shall take effect in 60 days. H14L47DMS/20080S1547B2340 - 5 -