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        PRIOR PRINTER'S NO. 1843                      PRINTER'S NO. 2613

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1519 Session of 2001


        INTRODUCED BY REINARD, LEH, MARSICO, McILHINNEY, WILT AND
           ADOLPH, MAY 3, 2001

        AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF
           REPRESENTATIVES, AS AMENDED, OCTOBER 3, 2001

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
     2     reenacted, "An act relating to alcoholic liquors, alcohol and
     3     malt and brewed beverages; amending, revising, consolidating
     4     and changing the laws relating thereto; regulating and
     5     restricting the manufacture, purchase, sale, possession,
     6     consumption, importation, transportation, furnishing, holding
     7     in bond, holding in storage, traffic in and use of alcoholic
     8     liquors, alcohol and malt and brewed beverages and the
     9     persons engaged or employed therein; defining the powers and
    10     duties of the Pennsylvania Liquor Control Board; providing
    11     for the establishment and operation of State liquor stores,
    12     for the payment of certain license fees to the respective
    13     municipalities and townships, for the abatement of certain
    14     nuisances and, in certain cases, for search and seizure
    15     without warrant; prescribing penalties and forfeitures;
    16     providing for local option, and repealing existing laws,"
    17     ADDING A DEFINITION; AND providing for malt and brewed         <--
    18     beverages alternating brewers' licenses.

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  Section 102 of the act of April 12, 1951 (P.L.90,
    22  No.21), known as the Liquor Code, reenacted and amended June 29,
    23  1987 (P.L.32, No.14), is amended by adding a definition to read:
    24     Section 102.  Definitions.--The following words or phrases,
    25  unless the context clearly indicates otherwise, shall have the

     1  meanings ascribed to them in this section:
     2     * * *
     3     "Alternating brewer" shall mean any person, association,
     4  corporation or other business entity licensed by the board to
     5  produce malt or brewed beverages at premises that are licensed
     6  by another entity under a Pennsylvania manufacturer's license.    <--
     7  and to sell such malt or brewed beverages from those premises.    <--
     8     * * *
     9     Section 2.  The act is amended by adding a section to read:
    10     Section 431.1.  Malt and Brewed Beverages Alternating
    11  Brewers' Licenses.--(a)  The board shall issue a malt and brewed  <--
    12  beverages alternating brewer's license to any person that (1)
    13  holds a Federal brewer's notice registration issued for a
    14  premises within this Commonwealth, and (2)  meets the
    15  qualifications imposed on a holder of a malt and brewed
    16  beverages manufacturer's license, provided that an alternating
    17  brewer shall not be required to maintain a premises.
    18  The holder of an alternating brewer's license shall be subject
    19  to the same conditions and qualifications as those imposed on
    20  the holder of a malt and brewed beverages manufacturer's
    21  license.
    22     (b)  The holder of an alternating brewer's license may
    23  produce beer at and sell beer from the premises of a
    24  Pennsylvania manufacturer and shall possess the same rights as a
    25  malt and brewed beverages manufacturer, except that an
    26  alternating brewer (1)  shall not be considered a Pennsylvania
    27  manufacturer for purposes of section 431(d)(5), and (2)  shall
    28  not be entitled to the limited tax credit available to
    29  Pennsylvania manufacturers under section 2010 of the act of
    30  March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
    20010H1519B2613                  - 2 -

     1  1971."
     2     (c)  The application, renewal and filing fees for a malt and
     3  brewed beverages alternating brewer's license shall be as
     4  prescribed in section 614-A(18) of the act of April 9, 1929
     5  (P.L.177, No.175), known as "The Administrative Code of 1929."
     6  BREWERS' LICENSES.--(A)  THE BOARD SHALL BE AUTHORIZED TO ISSUE   <--
     7  AN ALTERNATING BREWER'S LICENSE TO QUALIFIED ENTITIES. IN ORDER
     8  TO QUALIFY FOR THE ALTERNATING BREWER'S LICENSE, THE APPLICANT
     9  MUST DEMONSTRATE THAT IT HOLDS A FEDERAL BREWER'S NOTICE
    10  REGISTRATION ISSUED FOR A PREMISES WITHIN THIS COMMONWEALTH AND
    11  MEET ALL THE QUALIFICATIONS IMPOSED ON THE HOLDER OF A MALT AND
    12  BREWED BEVERAGE MANUFACTURER'S LICENSE.
    13     (B)  THE HOLDER OF AN ALTERNATING BREWER'S LICENSE SHALL HAVE
    14  ALL THE RIGHTS AND BE SUBJECT TO THE SAME CONDITIONS AND
    15  QUALIFICATIONS AS THOSE IMPOSED ON HOLDERS OF A MALT OR BREWED
    16  BEVERAGE MANUFACTURER'S LICENSE EXCEPT AS SET FORTH IN THIS
    17  SECTION.
    18     (C)  THE HOLDER OF AN ALTERNATING BREWER'S LICENSE IS NOT
    19  REQUIRED TO MAINTAIN SEPARATE MANUFACTURING PREMISES; RATHER,
    20  THE ALTERNATING BREWER'S LICENSE SHALL BE VALID AT PREMISES THAT
    21  ARE LICENSED BY ANOTHER ENTITY UNDER A PENNSYLVANIA
    22  MANUFACTURER'S LICENSE. THE HOLDER OF AN ALTERNATING BREWER'S
    23  LICENSE SHALL NOT BE ENTITLED TO THE LIMITED TAX CREDIT
    24  AVAILABLE UNDER SECTION 2010 OF THE ACT OF MARCH 4, 1971 (P.L.6,
    25  NO.2), KNOWN AS THE "TAX REFORM CODE OF 1971."
    26     (D)  MALT AND BREWED BEVERAGES MANUFACTURED UNDER THE
    27  AUTHORITY OF AN ALTERNATING BREWER'S LICENSE MUST BE DISTRIBUTED
    28  IN THIS COMMONWEALTH ONLY THROUGH SPECIFIC IMPORTING
    29  DISTRIBUTORS WHO SHALL FIRST HAVE BEEN GIVEN DISTRIBUTOR RIGHTS
    30  FOR SUCH PRODUCTS IN DESIGNATED GEOGRAPHICAL AREAS THROUGH THE
    20010H1519B2613                  - 3 -

     1  DISTRIBUTION SYSTEM REQUIRED FOR OUT-OF-STATE MANUFACTURERS
     2  UNDER SECTION 431(B) AS WELL AS ALL OTHER PERTINENT SECTIONS OF
     3  THIS ACT. THE ALTERNATING BREWER MUST COMPLY WITH SECTION 444.
     4     (E)  THE APPLICATION, RENEWAL AND FILING FEES FOR A MALT AND
     5  BREWED BEVERAGES ALTERNATING BREWER'S LICENSE SHALL BE AS
     6  PRESCRIBED IN SECTION 614-A(10) OF THE ACT OF APRIL 9, 1929
     7  (P.L.177, NO.175), KNOWN AS "THE ADMINISTRATIVE CODE OF 1929."
     8     Section 3.  This act shall take effect in 60 days.















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