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| PRIOR PRINTER'S NOS. 606, 1396 | PRINTER'S NO. 1575 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY BEYER, CALTAGIRONE, DALEY, KILLION, KORTZ, MANN, MILLARD AND MOUL, FEBRUARY 23, 2009 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, APRIL 21, 2009 |
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| AN ACT |
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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 definitions, for authority to issue | <-- |
18 | liquor licenses, for applicants for wine auction permits, for |
19 | prohibitions against the grant of licenses and for |
20 | interlocking businesses prohibited. |
21 | The General Assembly of the Commonwealth of Pennsylvania |
22 | hereby enacts as follows: |
23 | Section 1. Section 401(a) of the act of April 12, 1951 | <-- |
24 | (P.L.90, No.21), known as the Liquor Code, reenacted and amended |
25 | June 29, 1987 (P.L.32, No.14) and amended July 6, 2005 (P.L.135, |
26 | No.39), is amended to read: |
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1 | Section 1. The definition of "performing arts facility" in | <-- |
2 | section 102 of the act of April 12, 1951 (P.L.90, No.21), known |
3 | as the Liquor Code, reenacted and amended June 29, 1987 (P.L.32, |
4 | No.14), and amended December 20, 2000 (P.L.992, No.141), is |
5 | amended to read: |
6 | Section 102. Definitions.--The following words or phrases, |
7 | unless the context clearly indicates otherwise, shall have the |
8 | meanings ascribed to them in this section: |
9 | * * * |
10 | "Performing arts facilities" shall mean those halls or |
11 | theaters in which live musical, concert, dance, ballet and |
12 | legitimate play book-length productions are performed. |
13 | Performing arts facilities shall not mean those halls or |
14 | theaters in which burlesque shows or reviews are performed. If |
15 | the operator of the performing arts facility is a nonprofit |
16 | entity, the facility must have seating for at least [five |
17 | hundred (500)] two hundred fifty (250) people; otherwise, the |
18 | facility must have seating for at least twenty-five hundred |
19 | (2,500) people. |
20 | * * * |
21 | Section 2. Section 401(a) of the act, amended July 6, 2005 |
22 | (P.L.135, No.39), is amended to read: |
23 | Section 401. Authority to Issue Liquor Licenses to Hotels, |
24 | Restaurants and Clubs.--(a) Subject to the provisions of this |
25 | act and regulations promulgated under this act, the board shall |
26 | have authority to issue a retail liquor license for any premises |
27 | kept or operated by a hotel, restaurant or club and specified in |
28 | the license entitling the hotel, restaurant or club to purchase |
29 | liquor from a Pennsylvania Liquor Store and to keep on the |
30 | premises such liquor and, subject to the provisions of this act |
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1 | and the regulations made thereunder, to sell the same and also |
2 | malt or brewed beverages to guests, patrons or members for |
3 | consumption on the hotel, restaurant or club premises. Such |
4 | licensees, other than clubs, shall be permitted to sell malt or |
5 | brewed beverages for consumption off the premises where sold in |
6 | quantities of not more than one hundred ninety-two fluid ounces |
7 | in a single sale to one person as provided for in section 407. |
8 | Such licenses shall be known as hotel liquor licenses, |
9 | restaurant liquor licenses and club liquor licenses, |
10 | respectively. [No person who holds, either by appointment or |
11 | election, any public office which involves the duty to enforce |
12 | any of the penal laws of the United States of America or the |
13 | penal laws of the Commonwealth of Pennsylvania or any penal |
14 | ordinance or resolution of any political subdivision of this |
15 | Commonwealth shall be issued any hotel or restaurant liquor |
16 | license, nor shall such a person have any interest, directly or |
17 | indirectly, in any such license.] No person who holds any public |
18 | office which involves the duty to enforce any of the penal laws |
19 | of the United States of America, this Commonwealth or of any |
20 | political subdivision of this Commonwealth shall have any |
21 | interest in any hotel or restaurant liquor license. This |
22 | prohibition applies to anyone with arrest authority, including, |
23 | but not limited to, police officers, sheriffs, district |
24 | attorneys, State attorneys general and United States attorneys. |
25 | This prohibition shall also apply to district justices, judges |
26 | or any other individuals who can impose a criminal sentence. |
27 | This prohibition does not apply to members of the General |
28 | Assembly, township supervisors, city councilpersons, mayors |
29 | without arrest authority and any other public office which does |
30 | not involve the ability to arrest or the ability to impose a |
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1 | criminal sentence. This section also does not apply if the |
2 | proposed premises are located outside the jurisdiction of the |
3 | individual in question. |
4 | * * * |
5 | Section 2 3. Section 408.12(a) of the act, amended July 16, | <-- |
6 | 2007 (P.L.107, No.34), is amended to read: |
7 | Section 408.12. Wine Auction Permits.--(a) Upon application |
8 | of: |
9 | (1) any nonprofit hospital; |
10 | (2) any nonprofit public television station which is a |
11 | member of the Pennsylvania Public Television Network; |
12 | (3) any orchestra located in a county of the first, second |
13 | or third class which is operated by a nonprofit corporation; |
14 | (4) any museum located in a county of the first, second or |
15 | third class which is operated by a nonprofit corporation; |
16 | (5) any nonprofit corporation located in any county of the |
17 | third class which trains and places dogs for people who are |
18 | physically handicapped; |
19 | (6) any nationally recognized community-based voluntary |
20 | health organization committed to fighting cancer which has been |
21 | in existence for at least ninety years; |
22 | (7) any nationally recognized emergency response |
23 | organization that offers humanitarian care to victims of war or |
24 | natural disaster and has been in existence for at least one |
25 | hundred twenty-five years; |
26 | (8) any nationally recognized organization whose purpose is |
27 | to serve as an agent to collect funds for local charities, as |
28 | well as to coordinate relief services, counsel and refer clients |
29 | to cooperating agencies and make emergency assistance grants and |
30 | has been in existence for at least one hundred twenty years; |
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1 | [or] |
2 | (9) any hospice as defined under section 802.1 of the act of |
3 | July 19, 1979 (P.L.130, No.48), known as the "Health Care |
4 | Facilities Act"; or |
5 | (10) any university which is a member of the Association of |
6 | Independent Colleges and Universities of Pennsylvania and which |
7 | is located in a township of the second class in a county of the |
8 | third class; |
9 | and upon payment of a fee of thirty dollars ($30) per day, the |
10 | board shall issue a wine auction permit good for a period of not |
11 | more than four consecutive or nonconsecutive days per calendar |
12 | year. |
13 | * * * |
14 | Section 3 4. Sections 411(e) and 437(d) of the act are | <-- |
15 | amended to read: |
16 | Section 411. Interlocking Business Prohibited.--* * * |
17 | (e) Except as herein provided, no hotel, restaurant, retail |
18 | dispenser or club licensee, and no officer, director or |
19 | stockholder, agent or employe of any such licensee shall in any |
20 | wise be interested, directly or indirectly, in the ownership or |
21 | leasehold of any property or the equipment of any property or |
22 | any mortgage lien against the same, used by a distributor, |
23 | importing distributor, or by an importer or sacramental wine |
24 | licensee, in the conduct of his business; nor shall any hotel, |
25 | restaurant, retail dispenser or club licensee, or any officer, |
26 | director, stockholder, agent or employe of any such licensee, |
27 | either directly or indirectly, lend any moneys, credit, or give |
28 | anything of value or the equivalent thereof, to any distributor, |
29 | importing distributor, importer or sacramental wine licensee, |
30 | for equipping, fitting out, or maintaining and conducting, |
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1 | either in whole or in part, an establishment used in the conduct |
2 | of his business. |
3 | The purpose of this section is to require a separation of the |
4 | financial and business interests between manufacturers and |
5 | holders of hotel or restaurant liquor licenses and, as herein |
6 | provided, of club licenses, issued under this article, and no |
7 | person shall, by any device whatsoever, directly or indirectly, |
8 | evade the provisions of the section. But in view of existing |
9 | economic conditions, nothing contained in this section shall be |
10 | construed to prohibit the ownership of property or conflicting |
11 | interest by a manufacturer of any place occupied by a licensee |
12 | under this article after the manufacturer has continuously owned |
13 | and had a conflicting interest in such place for a period of at |
14 | least five years prior to July eighteenth, one thousand nine |
15 | hundred thirty-five: Provided, however, That this clause shall |
16 | not prohibit any hotel, restaurant or club liquor licensee from |
17 | owning land which is leased to, and the buildings thereon owned |
18 | by, a holder of a retail dispenser's license; and nothing in |
19 | this clause shall prevent the issuance of a retail dispenser's |
20 | license to a lessee of such lands who owns the buildings |
21 | thereon: And, provided further, That nothing contained in this |
22 | section shall be construed to prohibit any hotel, restaurant, |
23 | retail dispenser or club licensee or any officer, director or |
24 | stockholder, agent or employe of any such licensee from having a |
25 | financial or other interest, directly or indirectly in the |
26 | ownership or leasehold of any property or the equipment of any |
27 | property or any mortgage lien against same, used, leased by an |
28 | importer or sacramental wine licensee for the exclusive purpose |
29 | of maintaining commercial offices and on the condition that said |
30 | property is not used for the storage or sale of liquor or malt |
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1 | or brewed beverages in any quantity[.]: And, provided further, |
2 | That nothing in this section shall prohibit a person from having |
3 | an interest in a holder of a manufacturer, importer or |
4 | sacramental wine license and an interest in a holder of a hotel, |
5 | restaurant or club license so long as the person is not an |
6 | officer or director or either license holder, does not hold a |
7 | license of its own and does not exercise any control over any of |
8 | the licensed entities: And, provided further, That nothing in |
9 | this section shall prohibit a licensee, or its officers, |
10 | directors, shareholders, agents or employes from being an |
11 | officer, director or agent of an entity that has been issued a |
12 | restaurant liquor license under section 412 or 413 so long as |
13 | the licensee, or its officer, director, shareholder, agent or |
14 | employe does not have a financial interest in the license issued |
15 | under section 412 or 413. |
16 | Section 437. Prohibitions Against the Grant of Licenses.--* |
17 | * * |
18 | (d) [No person who holds, either by appointment or election, |
19 | any public office which involves the duty to enforce any of the |
20 | penal laws of the United States of America or any of the penal |
21 | laws of this Commonwealth or any penal ordinance or resolution |
22 | of any political subdivision of this Commonwealth shall be |
23 | issued any manufacturer's, importing distributor's, |
24 | distributor's or retail dispenser's license, nor shall such a |
25 | person have any interest, directly or indirectly, in any such |
26 | license.] No person who holds any public office which involves |
27 | the duty to enforce any of the penal laws of the United States |
28 | of America, this Commonwealth or of any political subdivision of |
29 | this Commonwealth, shall have any interest in any manufacturer, |
30 | distributor, importing distributor or restaurant liquor license. |
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1 | This prohibition applies to anyone with arrest authority, |
2 | including, but not limited to, police officers, sheriffs, |
3 | district attorneys, State attorneys general and United States |
4 | attorneys. This prohibition shall also apply to district |
5 | justices, judges or any other individual who can impose a |
6 | criminal penalty. This prohibition does not apply to members of |
7 | the General Assembly, township supervisors, city councilpersons, |
8 | mayors without arrest authority and any other public office |
9 | which does not involve the ability to arrest or the ability to |
10 | impose a criminal sentence. This section also does not apply if |
11 | the proposed premises are located outside the jurisdiction of |
12 | the individual in question. |
13 | Section 4 5. Section 443(g) of the act, amended May 31, 1996 | <-- |
14 | (P.L.312, No.49), is amended to read: |
15 | Section 443. Interlocking Business Prohibited.--* * * |
16 | (g) The purpose of this section is to require a separation |
17 | of the financial and business interests between the various |
18 | classes of business regulated by subdivision (B) of this |
19 | article, and no person or corporation shall, by any device |
20 | whatsoever, directly or indirectly, evade the provisions of this |
21 | section. But in view of existing economic conditions, nothing |
22 | contained in this section shall be construed to prohibit the |
23 | ownership of property or conflicting interest by a malt or |
24 | brewed beverage manufacturer of any place occupied by a |
25 | distributor, importing distributor or retail dispenser after the |
26 | manufacturer has continuously owned and had a conflicting |
27 | interest in such place for a period of at least five years prior |
28 | to the eighteenth day of July, one thousand nine hundred thirty- |
29 | five: Provided, however, That a holder of a manufacturer's |
30 | license under section 431(a) who is eligible to operate a |
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1 | brewery pub under section 446(2) or a limited winery as provided |
2 | for under section 505.2 may also hold and operate under a hotel |
3 | liquor license, a restaurant liquor license or a malt and brewed |
4 | beverages retail license on the manufacturer's or limited |
5 | winery's licensed premises. The hotel liquor license or |
6 | restaurant liquor license or the malt and brewed beverages |
7 | retail license shall be acquired by the manufacturer or limited |
8 | winery subject to section 461 and shall satisfy all requirements |
9 | for each respective license. |
10 | Notwithstanding any other provisions of this act, it shall be |
11 | lawful for a person to own an interest in a holder of a |
12 | manufacturing license and an interest in a holder of a |
13 | distributor, importing distributor or retail dispenser license |
14 | so long as the entity is not an officer or director of any of |
15 | the licensed entities, does not hold a license of its own and |
16 | does not exercise any control over any of the licensed entities. |
17 | Likewise, it shall be permissible for a person to have an |
18 | interest in a holder of a distributor or importing distributor |
19 | license and an interest in a holder of a retail dispenser |
20 | license so long as that person is not an officer or director of |
21 | either license holder, does not hold a license of its own and |
22 | does not exercise any control over any of the licensed entities. |
23 | Further, nothing in this section shall prohibit a licensee, or |
24 | its officers, directors, shareholders, agents or employes from |
25 | being an officer, director or agent of an entity that has been |
26 | issued a restaurant liquor license under section 412 or 413 so |
27 | long as the licensee, or its officer, director, shareholder, |
28 | agent or employe does not have a financial interest in the |
29 | license issued under section 412 or 413. |
30 | The term "manufacturer" as used in this section shall include |
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1 | manufacturers of malt or brewed beverages as defined in this act |
2 | and any person manufacturing any malt or brewed beverages |
3 | outside of this Commonwealth. |
4 | Section 5 6. This act shall take effect immediately. | <-- |
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