THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M. O'BRIEN, JANUARY 26, 2009

AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES, APRIL 20, 2010   

AN ACT

Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as

reenacted, "An act relating to alcoholic liquors, alcohol and

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws,"

further providing for definitions, for sacramental wine

licenses, fees, privileges and restrictions and, for

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interlocking businesses prohibited; providing for an enhanced

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restaurant license; and further providing for number and

kinds of licenses allowed same licensee and for limited

number of retail licenses to be issued in each county.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definitions of "eligible entity," "performing

arts facilities" and "public venue" in section 102 of the act of

April 12, 1951 (P.L.90, No.21), known as the Liquor Code,

reenacted and amended June 29, 1987 (P.L.32, No.14) and amended

December 20, 2000 (P.L.992, No.41), November 29, 2006 (P.L.1421,

No. 155) and July 16, 2007 (P.L.107, No.34), are amended to

read:

Section 102.  Definitions.--The following words or phrases,

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Eligible entity" shall mean a city of the third class, a

hospital, a church, a synagogue, a volunteer fire company, a

volunteer ambulance company, a volunteer rescue squad, a unit of

a nationally chartered club which has been issued a club liquor

license, a club in a city of the third class which has been

issued a club liquor license and which, as of December 31, 2002,

has been in existence for at least 100 years, a library, a

nationally accredited Pennsylvania nonprofit zoological

institution licensed by the United States Department of

Agriculture, a nonprofit agricultural association in existence

for at least ten years, a bona fide sportsmen's club in

existence for at least ten years, a nationally chartered

veterans' organization and any affiliated lodge or subdivision

of such organization, a fraternal benefit society that is

licensed to do business in this Commonwealth and any affiliated

lodge or subdivision of such fraternal benefit society, a museum

operated by a nonprofit corporation in a city of the third class

or township of the first class, a nonprofit corporation engaged

in the performing arts in a city of the third class, borough or

in an incorporated town, an arts council, a nonprofit

corporation that operates an arts facility or museum in a city

of the third class in the county of the fourth class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) whose purpose is to protect the architectural

heritage of boroughs and which has been recognized as such by a

municipal resolution, a nonprofit organization as defined under

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

Law 99-514, 26 U.S.C. § 501(c)(3)) conducting a regatta in a

city of the second class with the permit to be used on State

park grounds or conducting a family-oriented celebration as part

of Welcome America in a city of the first class on property

leased from that city for more than fifty years, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

raise funds for the research and treatment of cystic fibrosis, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose

purpose is to educate the public on issues dealing with

watershed conservation, a nonprofit organization as defined

under section 501(c)(3) of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to

provide equine assisted activities for children and adults with

special needs, a nonprofit economic development agency in a city

of the second class with the primary function to serve as an

economic generator for the greater southwestern Pennsylvania

region by attracting and supporting film, television and related

media industry projects and coordinating government and business

offices in support of a production, a county tourist promotion

agency as defined in section 3(1) of the act of April 28, 1961

(P.L.111, No.50), known as the "Tourist Promotion Law," and

located in a city of the third class in a county of the fourth

class or located in a township of the second class in a county

of the fifth class, a junior league in a third class county that

is a nonprofit organization as defined under section 501(c)(3)

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

that is comprised of women whose purpose is exclusively

educational and charitable in promoting the volunteerism of

women and developing and participating in community projects and

that has been in existence for over seventy years [or], a

nonprofit organization as defined under section 501(C)(6) of the

Internal Revenue Code of 1986 which is located in a city of the

third class in a county of the third class and whose purpose is

to support business and industry or a club recognized by Rotary

International which is located in a county of the fourth class

and whose purpose is to provide service to others, to promote

high ethical standards and to advance world understanding,

goodwill and peace through its fellowship of business,

professional and community leaders or a nonprofit organization

as defined under section 501(c)(3) of the Internal Revenue Code

of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is

located in a borough in a county of the third class and whose

purpose is to promote mushrooms while supporting local and

regional charities.

* * *

"Performing arts facilities" shall mean those halls or

theaters in which live musical, concert, dance, ballet and

legitimate play book-length productions are performed.

Performing arts facilities shall not mean those halls or

theaters in which burlesque shows or reviews are performed. If

the operator of the performing arts facility is a nonprofit

entity, the facility must have seating for at least [five

hundred (500)] two hundred fifty (250) people; otherwise, the

facility must have seating for at least twenty-five hundred

(2,500) people.

* * *

"Public venue" shall mean a stadium, arena, convention

center, museum, amphitheater or similar structure. If the public

venue is a cruise terminal owned or leased by a port authority

created under the act of June 12, 1931 (P.L.575, No.200),

entitled "An act providing for joint action by Pennsylvania and

New Jersey in the development of the ports on the lower Delaware

River, and the improvement of the facilities for transportation

across the river; authorizing the Governor, for these purposes,

to enter into an agreement with New Jersey; creating The

Delaware River Joint Commission and specifying the powers and

duties thereof, including the power to finance projects by the

issuance of revenue bonds; transferring to the new commission

all the powers of the Delaware River Bridge Joint Commission;

and making an appropriation," it shall have no permanent seating

requirement. If the public venue is an open-air amphitheater

owned by a port authority created under the act of December 6,

1972 (P.L.1392, No.298), known as the "Third Class City Port

Authority Act," it shall have no permanent seating requirement.

If the public venue is owned by a political subdivision, a

municipal authority, the Commonwealth, an authority created

under the act of July 29, 1953 (P.L.1034, No.270), known as the

"Public Auditorium Authorities Law," an authority created under

Article XXV-A of the act of July 28, 1953 (P.L.723, No.230),

known as the "Second Class County Code," an art museum

established under the authority of the act of April 6, 1791 (3

Sm.L.20, No.1536), entitled "An act to confer on certain

associations of the citizens of this commonwealth the powers and

immunities of corporations, or bodies politic in law," or an

authority created under Article XXIII (n) or (o) of the act of

August 9, 1955 (P.L.323, No.130), known as "The County Code," it

shall have permanent seating for at least one thousand (1,000)

people; otherwise, it shall have permanent seating for at least

two thousand (2,000) people. The term shall also mean any

regional history center, multipurpose cultural and science

facility, museum or convention or trade show center, regardless

of owner and seating capacity, that has a floor area of at least

sixty thousand (60,000) square feet in one building. The term

shall also mean a convention or conference center owned by a

city of the third class or a university which is a member of the

Pennsylvania State System of Higher Education which is operated

by a university foundation or alumni association, regardless of

seating capacity, that has a floor area of at least fifteen

thousand (15,000) square feet in one building. The term shall  

also mean a visitor center, regardless of floor area or seating

capacity, that was established under the authority of the

Gateway Visitor Center Authorization Act of 1999 (Public Law

106-131, 113 Stat. 1678, 16 U.S.C. § 407m)).

* * *

Section 2.  Section 409 of the act, amended December 21, 1998

(P.L.1202, No.155) and December 9, 2002 (P.L.1653, No.212), is

amended to read:

Section 409.  Sacramental Wine Licenses; Fees; Privileges;

Restrictions.--(a)  Subject to the provisions of this act in

general and more particularly to the following provisions of

this section, the board shall issue sacramental wine licenses to

qualified applicants.

(b)  Every applicant for a sacramental wine license shall

file a written application with the board in such form as the

board shall from time to time prescribe, which shall be

accompanied by a filing fee and a license fee as prescribed in

section 614-A of the act of April 9, 1929 (P.L.177, No.175),

known as "The Administrative Code of [1929," and a license fee

of one hundred dollars.] 1929." Every such application shall

contain a description of the premises for which the applicant

desires a license and shall set forth such other material

information as may be required by the board.

(c)  If the applicant is a natural person, his application

must show that he is a citizen of the United States or a

resident alien and a resident of this Commonwealth. If the

applicant is an association or partnership, each and every

member of the association or partnership must be a citizen of

the United States or a resident alien and a resident of this

Commonwealth. If the applicant is a corporation, the application

must show that the corporation was created under the laws of

Pennsylvania or holds a certificate of authority to transact

business in Pennsylvania, and that all officers, directors and

stockholders are citizens of the United States or resident

aliens.

(d)  [Holders] Except as otherwise provided under subsection

(d.1), holders of such licenses may purchase from manufacturers

or bring or import into this Commonwealth wine to be used for

sacramental or religious purposes only, and bottle and sell the

same to priests, clergymen and rabbis for use in the cathedral,

church, synagogue or temple, or for sustaining members of the

congregation or members of the faith who attend religious

services, duly certified by such priests, clergymen or rabbis.

The sale and use of wine for sacramental or religious purposes

shall be subject to and in accordance with the regulations of

the board.

(d.1)  In addition to the privileges conferred under

subsection (d), the holder of a sacramental wine license who

owns or operates an eating place or a restaurant may sell food

for consumption on or off the premises and sell for consumption

on the premises only the wine that it may acquire and sell

pursuant to its license. In addition, the holder of a

sacramental wine license may allow persons who have purchased

but only partially consumed a bottle of wine on the premises to

remove the bottle from the premises so long as the bottle was

purchased in conjunction with a meal that was consumed on the

premises and so long as the bottle is resealed.

(e)  [Any] Except as provided under subsection (d.1), any 

wine purchased under the authority of this section shall not be

used for any other than sacramental or religious purposes.

Sacramental wine may not be sold by any person except the holder

of a sacramental wine license.

(f)  Every sacramental wine licensee shall maintain on the

licensed premises such records as the board may prescribe. No

deliveries of sacramental wine shall be made unless and until an

order therefor is on file at the principal place of business in

Pennsylvania. All shipments into Pennsylvania of wine to be used

[for sacramental or religious purposes] as prescribed in this

section shall be consigned to the principal place of business

maintained by the licensee.

(g)  Any such license may be suspended or revoked by the

board upon proof satisfactory to it that the licensee has

violated any law of this Commonwealth or any regulation of the

board relating to liquor and alcohol. The procedure in such

cases shall be the same as for the revocation and suspension of

hotel, restaurant and club licenses.

(h)  For purposes of this section the term "sacramental wine"

shall mean any wine that is clearly marked on the bottle by the

manufacturer as being produced or manufactured in accordance

with religious law, practice or custom.

Section 3.  Section 411(e) of the act is amended 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,

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 from

owning land which is leased to, and the buildings thereon owned

by, a holder of a retail dispenser's license; and nothing in

this clause shall prevent the issuance of a retail dispenser's

license to a lessee of such lands who owns the buildings

thereon: 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 be construed to

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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.

Section 4.  The act is amended by adding a section to read:

Section 415.  Enhanced Restaurant License.--(a)

Notwithstanding any other provision of law, a person holding a

slot machine license who also holds a restaurant license issued

by the Pennsylvania Liquor Control Board shall be eligible to

receive an enhanced restaurant license by registering with the

Liquor Control Board and paying an enhanced license fee of

$250,000. The holder of an enhanced restaurant license shall pay

an annual fee of $30,000.

(b)  An enhanced restaurant license shall not be subject to

section 471(c).

(c)  If the holder of an enhanced restaurant license is cited

and found to have violated a provision of this act, the enhanced

restaurant license shall be subject to a fine of not less than

$250 nor more than $25,000. The prior citation history of the

enhanced restaurant licensee shall be considered in determining

the amount of the fine.

Section 5.  Section 438(c) of the act is amended to read:

Section 438.  Number and Kinds of Licenses Allowed Same

Licensee.--* * *

(c)  No person shall possess more than one class of license,

except that a holder of a retail dispenser's license may also be

a holder of a retail liquor license[.]: Provided, however, That

nothing contained in this section shall be construed to prohibit

a member of the governing board of a public authority created

under subdivision (n) of Article XXIII of the act of August 9,

1955 (P.L.323, No.130), known as "The County Code," from having

an interest in a distributor or importing distributor license

notwithstanding the fact that the public authority has an

interest in one or more retail licenses or acts as a landlord

for one or more retail licenses.

Section 6.  Section 443(g) of the act, amended May 31, 1996

(P.L.312, No.49), is amended to read:

Section 443.  Interlocking Business Prohibited.--* * *

(g)  The purpose of this section is to require a separation

of the financial and business interests between the various

classes of business regulated by subdivision (B) of this

article, and no person or corporation shall, by any device

whatsoever, directly or indirectly, evade the provisions of this

section. But in view of existing economic conditions, nothing

contained in this section shall be construed to prohibit the

ownership of property or conflicting interest by a malt or

brewed beverage manufacturer of any place occupied by a

distributor, importing distributor or retail dispenser after the

manufacturer has continuously owned and had a conflicting

interest in such place for a period of at least five years prior

to the eighteenth day of July, one thousand nine hundred thirty-

five: Provided, however, That a holder of a manufacturer's

license under section 431(a) who is eligible to operate a

brewery pub under section 446(2) or a limited winery as provided

for under section 505.2 may also hold and operate under a hotel

liquor license, a restaurant liquor license or a malt and brewed

beverages retail license on the manufacturer's or limited

winery's licensed premises. The hotel liquor license or

restaurant liquor license or the malt and brewed beverages

retail license shall be acquired by the manufacturer or limited

winery subject to section 461 and shall satisfy all requirements

for each respective license[.]: And, provided further, That

nothing 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.

The term "manufacturer" as used in this section shall include

manufacturers of malt or brewed beverages as defined in this act

and any person manufacturing any malt or brewed beverages

outside of this Commonwealth. prohibit an officer or member of a

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licensed privately owned private golf course catering club from

having an interest in a limited winery license.

Section 7 4.  Section 461(c)(9) of the act, amended July 16,

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2007 (P.L.107, No.34), is amended to read:

Section 461.  Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

(c)  The word "hotel" as used in this section shall mean any

reputable place operated by a responsible person of good

reputation where the public may, for a consideration, obtain

sleeping accommodations, and which shall have the following

number of bedrooms and requirements in each case--at least one-

half of the required number of bedrooms shall be regularly

available to transient guests seven days weekly, except in

resort areas; at least one-third of such bedrooms shall be

equipped with hot and cold water, a lavatory, commode, bathtub

or shower and a clothes closet; and an additional one-third of

the total of such required rooms shall be equipped with lavatory

and commode:

* * *

(9)  Upon application to and subject to inspection by the

board, hotel licensees under clause (8) of this subsection shall

no longer be required to maintain bedrooms for public

accommodation. [However, areas required and designated as

bedrooms for public accommodation prior to the effective date of

this clause may not subsequently be used as licensed serving

area.] Such area may be used as licensed storage area or serving

area consistent with this act and existing regulations.

* * *

Section 8 5.  This act shall take effect in 60 days.

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