PRINTER'S NO. 1053
No. 892 Session of 2001
INTRODUCED BY TOMLINSON AND THOMPSON, MAY 25, 2001
REFERRED TO LAW AND JUSTICE, MAY 25, 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 further providing for interlocking business prohibited, for
18 unlawful acts relative to liquor, malt and brewed beverages
19 and licensees and for reporting of worthless checks.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Sections 411 and 443 of the act of April 12, 1951
23 (P.L.90, No.21), known as the Liquor Code, reenacted and amended
24 June 29, 1987 (P.L.32, No.14), are amended by adding subsections
25 to read:
26 Section 411. Interlocking Business Prohibited.--* * *
1 (f) Nothing in this section shall be construed to limit the
2 provisions of section 493(2) allowing extension of credit under
3 certain circumstances for the purchase of liquor or malt or
4 brewed beverages.
5 Section 443. Interlocking Business Prohibited.--* * *
6 (f.1) Nothing in this section shall be construed to limit
7 the provisions of section 493(2) allowing extension of credit
8 under certain circumstances for the purchase of liquor or malt
9 or brewed beverages.
10 * * *
11 Section 2. Section 493(2) and (26) of the act, amended or
12 added June 15, 1961 (P.L.423, No.211) and February 18, 1998
13 (P.L.162, No.25), are amended to read:
14 Section 493. Unlawful Acts Relative to Liquor, Malt and
15 Brewed Beverages and Licensees.--The term "licensee," when used
16 in this section, shall mean those persons licensed under the
17 provisions of Article IV, unless the context clearly indicates
18 otherwise.
19 It shall be unlawful--
20 * * *
21 (2) Purchase or Sale of Liquor or Malt or Brewed Beverages
22 on Credit. For any licensee, his agent, servant or employe, to
23 sell or offer to sell or purchase or receive any liquor or malt
24 or brewed beverages except for cash, excepting the following:
25 (i) credit extended by a hotel or club to a bona fide guest
26 or member[, or by];
27 (ii) credit extended by railroad or pullman companies in
28 dining, club or buffet cars to passengers, for consumption while
29 enroute, holding authorized credit cards issued by railroad or
30 railroad credit bureaus [or by];
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1 (iii) credit extended by hotel, restaurant, retail dispenser
2 eating place, club and public service licensees, importing
3 distributors or distributors [to customers not possessing a
4 license under this article and holding] to customers who hold
5 credit cards issued in accordance with regulations of the board
6 or credit cards [issued by banking institutions] subject to
7 State or Federal regulation[:]; or
8 (iv) credit extended from one licensee to another:
9 Provided further, That nothing herein contained shall be
10 construed to prohibit the use of checks or drafts drawn on a
11 bank, banking institution, trust company or similar depository,
12 organized and existing under the laws of the United States of
13 America or the laws of any state, territory or possession
14 thereof, in payment for any liquor or malt or brewed beverages
15 if the purchaser is the payor of the check or draft and the
16 licensee is the payee. No right of action shall exist to collect
17 any claim for credit extended contrary to the provisions of this
18 clause. Nothing herein contained shall prohibit a licensee from
19 crediting to a purchaser the actual price charged for original
20 containers returned by the original purchaser as a credit on any
21 sale, or from refunding to any purchaser the amount paid by such
22 purchaser for such containers or as a deposit on containers when
23 title is retained by the vendor, if such original containers
24 have been returned to the licensee. Nothing herein contained
25 shall prohibit a manufacturer from extending usual and customary
26 credit for liquor or malt or brewed beverages sold to customers
27 or purchasers who live or maintain places of business outside of
28 the Commonwealth of Pennsylvania, when the liquor or malt or
29 brewed beverages so sold are actually transported and delivered
30 to points outside of the Commonwealth: Provided, however, That
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1 as to all transactions affecting malt or brewed beverages to be
2 resold or consumed within this Commonwealth, every licensee
3 shall pay and shall require cash deposits on all returnable
4 original containers and all such cash deposits shall be refunded
5 upon return of the original containers.
6 * * *
7 (26) Worthless Checks. For any retail liquor licensee or any
8 retail dispenser, distributor or importing distributor, to make,
9 draw, utter, issue or deliver, or cause to be made, drawn,
10 uttered, issued or delivered, any check, draft or similar order,
11 for the payment of money in payment for any purchase of malt or
12 brewed beverages, when such retail liquor licensee, retail
13 dispenser, distributor or importing distributor, has not
14 sufficient funds in, or credit with, such bank, banking
15 institution, trust company or other depository, for the payment
16 of such check. Any person who is a licensee under the provisions
17 of this article, who shall receive in payment for malt or brewed
18 beverages sold by him any check, draft or similar order for the
19 payment of money, which is subsequently dishonored by the bank,
20 banking institution, trust company or other depository, upon
21 which drawn, for any reason whatsoever, shall, within five days
22 of receipt of notice of such dishonor, notify by certified mail
23 the person who presented the said worthless check, draft or
24 similar order. This clause shall not be deemed to have been
25 violated if the check, draft or similar order is honored within
26 twenty days of the date on which it was made, drawn, issued or
27 presented.
28 * * *
29 Section 3. Section 496 of the act is amended to read:
30 Section 496. Reporting of Worthless Checks.--Any person who
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1 is a licensee under the provisions of this article, who shall
2 receive in payment for malt or brewed beverages sold by him any
3 check, draft or similar order, for the payment of money, which
4 is subsequently dishonored by the bank, banking institution,
5 trust company or other depository, upon which drawn, for any
6 reason whatsoever, and which violates the provisions of section
7 493(26), shall, within [twenty days of receipt of notice of such
8 dishonor] thirty days of the date on which the check, draft or
9 similar order was made, drawn, issued or presented, notify the
10 board thereof. Such notification to the board shall be in such
11 manner and form as the board shall direct.
12 Section 4. This act shall take effect in 60 days.
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