HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL AND FERLO, JANUARY 29, 2009

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 23, 2009   

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 defining for the definition of "eligible entity" and

adding definitions; further providing for general powers of

the board, for wine marketing and for Sunday retail sales by

Pennsylvania Liquor Stores; and, in licenses and regulations

relating to liquor, alcohol and malt and brewed beverages,

further providing for interlocking businesses prohibited, for

number and kinds of licenses allowed same licensee and, for

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unlawful acts relative to liquor, malt and brewed beverages

and licenses issued and for limited wineries.

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The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "eligible entity" 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 November 29, 2006 (P.L.1421, No.155), is

amended and the section is amended by adding definitions 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, a nonprofit

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

Code of 1986 which is located in counties of the second class A

and of the third class and whose purpose is the education and

promotion of American history [or], a nonprofit organization as

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defined under section [501(C)(6)] 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 brewery which has been issued

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a license to manufacture malt or brewed beverages and has been

in existence for at least 100 years.

* * *

"Satellite wine store" shall mean a wine kiosk operated by

the Pennsylvania Liquor Control Board, together with the space

in which it is located.

* * *

Section 2.  Section 207 of the act is amended by adding a

subsection to read:

Section 207.  General Powers of Board.--Under this act, the

board shall have the power and its duty shall be:

* * *

(l)  To establish and implement a customer relations

marketing program for the purpose of offering incentives, such

as coupons or discounts on certain products, to customers of the

board.

Section 3.  Section 215 of the act, amended December 30, 2003

(P.L.423, No.59), is amended to read:

Section 215.  Wine and Spirits Marketing.--

(e)  The board is authorized to participate in or sponsor

wine and spirits events for the purpose of educating consumers

as to the wines and spirits available in this Commonwealth. The

wine and spirits to be used for the event may be acquired

through the State store system or may be donated from outside

this Commonwealth. Participation in the tastings may be

conditioned on the purchase of a ticket to the event. The event

may include events occurring on premises licensed by the board,

and the board may sell wine and spirits for off-premises

consumption in an area designated by the board for such sale.

Section 3.1.  Section 301 of the act is amended to read:

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Section 301.  Board to Establish State Liquor Stores.--(a)  

The board shall establish, operate and maintain at such places

throughout the Commonwealth as it shall deem essential and

advisable, stores to be known as "Pennsylvania Liquor Stores,"

for the sale of liquor and alcohol in accordance with the

provisions of and the regulations made under this act; except

that no store not so already located shall be located within

three hundred feet of any elementary or secondary school, nor

within a dry municipality without there first having been a

referendum approving such location, nor shall any such store

have an interior connection or interior passageway with an

establishment that allows its patrons to bring their own liquor

or alcohol for consumption on the premises whether or not the

establishment possesses a license issued by the board. When the

board shall have determined upon the location of a liquor store

in any municipality, it shall give notice of such location by

public advertisement in two newspapers of general circulation.

In cities of the first class, the location shall also be posted

for a period of at least fifteen days following its

determination by the board as required in section 403(g) of this

act. The notice shall be posted in a conspicuous place on the

outside of the premises in which the proposed store is to

operate or, in the event that a new structure is to be built in

a similarly visible location. If, within five days after the

appearance of such advertisement, or of the last day upon which

the notice was posted, fifteen or more taxpayers residing within

a quarter of a mile of such location, or the City Solicitor of

the city of the first class, shall file a protest with the court

of common pleas of the county averring that the location is

objectionable because of its proximity to a church, a school, or

to private residences, the court shall forthwith hold a hearing

affording an opportunity to the protestants and to the board to

present evidence. The court shall render its decision

immediately upon the conclusion of the testimony and from the

decision there shall be no appeal. If the court shall determine

that the proposed location is undesirable for the reasons set

forth in the protest, the board shall abandon it and find

another location. The board may establish, operate and maintain

such establishments for storing and testing liquors as it shall

deem expedient to carry out its powers and duties under this

act.

(b)  The board may lease the necessary premises for such

stores or establishments, but all such leases shall be made

through the Department of General Services as agent of the

board. The board, through the Department of General Services,

shall have authority to purchase such equipment and appointments

as may be required in the operation of such stores or

establishments.

Section 4.  Section 304 of the act, amended December 8, 2004

(P.L.1810, No.239), is amended to read:

Section 304.  When Sales May Be Made at Pennsylvania Liquor

Stores.--(a)  Except as provided for in subsection (b), every

Pennsylvania Liquor Store shall be open for business week days,

except holidays as that term is defined in section 102. The

board may, with the approval of the Governor, temporarily close

any store in any municipality.

(b)  Certain Pennsylvania Liquor Stores operated by the board

shall be open for Sunday retail sales between the hours of noon

and five o'clock postmeridian, except that no Sunday sales shall

occur on Easter Sunday or Christmas day. The board shall open up

to twenty-five per centum of the total number of Pennsylvania

Liquor Stores at its discretion for Sunday sales as provided for

in this subsection. The twenty-five per centum limitation shall

not apply to the board's operation of satellite wine kiosks. The

board shall submit yearly reports to the Appropriations and the

Law and Justice Committees of the Senate and the Appropriations

and the Liquor Control Committees of the House of

Representatives summarizing the total dollar value of sales

under this section.

Section 5.  Sections 411(e) and 438(c) of the act are 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

prohibit a member of the governing board of a public authority

created under subdivision (n) of Article XXIII of the act of

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

from having an interest in a distributor or importing

distributor license notwithstanding the fact that the public

authority has an interest in one or more retail licenses or acts

as a landlord for one or more retail licenses: And, provided

further, That notwithstanding any other provision of this

section, an entity may acquire both a manufacturer's license or

a limited winery license and a hotel, restaurant or retail

dispenser license for use at the same location and more than one

location may be so licensed. The licenses and a person's

interest in the licenses or in the entity holding the licenses

shall not be subject to this section.

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: And, provided further, That

notwithstanding any other provision of this section, an entity

may acquire both a manufacturer's license or a limited winery

license and a hotel, restaurant or retail dispenser license for

use at the same location and more than one location may be so

licensed. The licenses and a person's interest in the licenses

or in the entity holding the licenses shall not be subject to

this section.

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.

Section 7.  Section 493(24)(ii) of the act, amended November

29, 2006 (P.L.1421, No.155), is amended to read:

Section 493.  Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(24)  * * *

(ii)  Notwithstanding subclause (i) or any other provision of

law, a holder of a restaurant license that is also approved to

hold a slot machine license or a conditional slot machine

license under 4 Pa.C.S. Part II (relating to gaming) may give

liquor and malt or brewed beverages free of charge to any person

actively engaged in playing a slot machine.

(iii)  Notwithstanding subclause (i) or any other provision

of law, the board may establish and implement a customer

relations marketing program for the purpose of offering

incentives, such as coupons or discounts on certain products

which may be conditioned upon the purchase of liquor, to

customers of the board.

* * *

Section 8.  Section 505 of the act, amended December 21, 1998

(P.L.1202, No.155), is amended to read:

Section 505.  Licenses Issued.--Upon receipt of the

application in the form herein provided and the proper fees, the

board may grant to such applicant a license to engage in, (a)

the operation of a limited winery or a winery; or, (b) the

manufacturing, producing, distilling, developing, or using in

the process of manufacturing, denaturing, redistilling,

recovering, rectifying, blending and reusing of alcohol and

liquor; or, (c) the holding in bond of alcohol and liquor; or,

(d) the holding in storage, as bailee for hire, of alcohol,

liquor and malt or brewed beverages; or, (e) the transporting

for hire of alcohol, liquor and malt or brewed beverages. Such

licenses may be transferred from one person to another or from

one location to another, or both. Every applicant for a transfer

of such licenses shall file a written application with the

board, together with a filing fee of five hundred fifty dollars

($550) if the transfer is to a new location, six hundred fifty

dollars ($650) if the transfer is to a new person, or seven

hundred dollars ($700) if the transfer is to a new person for

use at a new location. Whenever such a license is transferred,

no license or other fees shall be required from the persons to

whom such transfer is made for the portion of the license period

for which the license fee has been paid by the transferor.

Section 9.  Section 505.2(a) of the act is amended by adding

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a clause to read:

Section 505.2.  Limited Wineries.--(a)  In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

* * *

(6.4)  Store alcoholic cider, wine and wine coolers produced

by the limited winery at no more than two (2) board-approved

locations other than the licensed premises and those premises

referenced in clause (3) pertaining to the five (5) board-

approved locations for the sale of wine, with no bottling or

production requirement at those additional locations and under

such conditions and regulations as the board may enforce. If two

(2) or more businesses will operate out of the same storage

facility, the limited winery must designate specific and

distinct areas for its storage. The limited winery's designated

storage area must be secured and no one other than the licensee

and his employees may be allowed access to the storage area. No

board-approved manager will be necessary for the storage

facility. The limited winery must fill out an application for

such an additional board-approved storage location, and such

location shall count as one of the two permitted for each

limited winery. The limited winery is responsible for keeping

only its own complete records. A limited winery may be cited for

a violation of the recordkeeping requirements of sections 512

and 513 pertaining to its own records only.

* * *

Section 9 10.  This act shall take effect in 60 days.

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