Bill Text: PA HB48 | 2009-2010 | Regular Session | Amended

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Bill Title: Further providing for definitions, for wine marketing, for sacramental wine licenses, fees, privileges and restrictions, for interlocking businesses prohibited, for number and kinds of licenses allowed same licensee, for limited number of retail licenses to be issued in each county, for unlawful acts relative to liquor, malt and brewed beverages and licensees, for licenses issued and for limited wineries.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-06-25 - Act No. 35 [HB48 Detail]

Download: Pennsylvania-2009-HB48-Amended.html

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PRIOR PRINTER'S NOS. 37, 1395, 1574, 2092, 2368, 3578 PRINTER'S NO. 3850
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 48 Session of2009
INTRODUCED BY M. O'BRIEN, JANUARY 26, 2009
SENATE AMENDMENTS TO HOUSE AMENDMENTS, JUNE 7, 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 wine marketing, for <--
sacramental wine licenses, fees, privileges and restrictions,
for interlocking businesses prohibited and, for number and <--
kinds of licenses allowed same licensee, for limited number
of retail licenses to be issued in each county, for unlawful <--
acts relative to liquor, malt and brewed beverages and
licensees, for licenses issued and for limited wineries.
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
20090HB0048PN3850 - 2 -
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 or a township of the second class 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
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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)(3) of the
Internal Revenue Code of 1986 which is located in counties of
the second class A or of the third class and whose purpose is
the education and promotion of American history, a nonprofit
organization as 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, a brewery which has been <--
issued a license to manufacture malt or brewed beverages and has
been in existence for at least 100 years 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.
* * *
20090HB0048PN3850 - 4 -
"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
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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 215 of the act, amended December 30, 2003 <--
20090HB0048PN3850 - 6 -
(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 2 3. 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.
20090HB0048PN3850 - 7 -
(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
20090HB0048PN3850 - 8 -
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 4. Sections 411(e) and 438(c) of the act are amended <--
to read:
20090HB0048PN3850 - 9 -
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
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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 prohibit an officer
or member of a licensed privately owned private golf course
catering club from having an interest in a limited winery
license.: And, provided further, That nothing contained in this <--
section shall be construed to prohibit a member of the governing
board of a public authority created under subdivision (n) of
Article XXIII of the act of August 9, 1955 (P.L.323, No.130),
known as "The County Code," from having an interest in a
distributor or 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,
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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 5. 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
20090HB0048PN3850 - 12 -
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.
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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 4 6. Section 461(c)(9) of the act, amended July 16, <--
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.
* * *
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Section 7. 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 8. Section 505.2(a) of the act is amended by adding
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:
* * *
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(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 5 9. This act shall take effect in 60 days <--
immediately. <--
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