THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BEYER, CALTAGIRONE, DALEY, KILLION, KORTZ, MANN, MILLARD AND MOUL, FEBRUARY 23, 2009

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, APRIL 21, 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 providing for definitions, for authority to issue

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liquor licenses, for applicants for wine auction permits, for

prohibitions against the grant of licenses and for

interlocking businesses prohibited.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 401(a) of the act of April 12, 1951

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(P.L.90, No.21), known as the Liquor Code, reenacted and amended

June 29, 1987 (P.L.32, No.14) and amended July 6, 2005 (P.L.135,

No.39), is amended to read:

Section 1.  The definition of "performing arts facility" in

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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.141), is

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:

* * *

"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.

* * *

Section 2.  Section 401(a) of the act, amended July 6, 2005

(P.L.135, No.39), is amended to read:

Section 401.  Authority to Issue Liquor Licenses to Hotels,

Restaurants and Clubs.--(a)  Subject to the provisions of this

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

kept or operated by a hotel, restaurant or club and specified in

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

premises such liquor and, subject to the provisions of this act

and the regulations made thereunder, to sell the same and also

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

licensees, other than clubs, shall be permitted to sell malt or

brewed beverages for consumption off the premises where sold in

quantities of not more than one hundred ninety-two fluid ounces

in a single sale to one person as provided for in section 407.

Such licenses shall be known as hotel liquor licenses,

restaurant liquor licenses and club liquor licenses,

respectively. [No person who holds, either by appointment or

election, any public office which involves the duty to enforce

any of the penal laws of the United States of America or the

penal laws of the Commonwealth of Pennsylvania or any penal

ordinance or resolution of any political subdivision of this

Commonwealth shall be issued any hotel or restaurant liquor

license, nor shall such a person have any interest, directly or

indirectly, in any such license.] No person who holds any public

office which involves the duty to enforce any of the penal laws

of the United States of America, this Commonwealth or of any

political subdivision of this Commonwealth shall have any

interest in any hotel or restaurant liquor license. This

prohibition applies to anyone with arrest authority, including,

but not limited to, police officers, sheriffs, district

attorneys, State attorneys general and United States attorneys.

This prohibition shall also apply to district justices, judges

or any other individuals who can impose a criminal sentence.

This prohibition does not apply to members of the General

Assembly, township supervisors, city councilpersons, mayors

without arrest authority and any other public office which does

not involve the ability to arrest or the ability to impose a

criminal sentence. This section also does not apply if the

proposed premises are located outside the jurisdiction of the

individual in question.

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Section 2 3.  Section 408.12(a) of the act, amended July 16,

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2007 (P.L.107, No.34), is amended to read:

Section 408.12.  Wine Auction Permits.--(a)  Upon application

of:

(1)  any nonprofit hospital;

(2)  any nonprofit public television station which is a

member of the Pennsylvania Public Television Network;

(3)  any orchestra located in a county of the first, second

or third class which is operated by a nonprofit corporation;

(4)  any museum located in a county of the first, second or

third class which is operated by a nonprofit corporation;

(5)  any nonprofit corporation located in any county of the

third class which trains and places dogs for people who are

physically handicapped;

(6)  any nationally recognized community-based voluntary

health organization committed to fighting cancer which has been

in existence for at least ninety years;

(7)  any nationally recognized emergency response

organization that offers humanitarian care to victims of war or

natural disaster and has been in existence for at least one

hundred twenty-five years;

(8)  any nationally recognized organization whose purpose is

to serve as an agent to collect funds for local charities, as

well as to coordinate relief services, counsel and refer clients

to cooperating agencies and make emergency assistance grants and

has been in existence for at least one hundred twenty years;

[or]

(9)  any hospice as defined under section 802.1 of the act of

July 19, 1979 (P.L.130, No.48), known as the "Health Care

Facilities Act"; or

(10)  any university which is a member of the Association of

Independent Colleges and Universities of Pennsylvania and which

is located in a township of the second class in a county of the

third class;

and upon payment of a fee of thirty dollars ($30) per day, the

board shall issue a wine auction permit good for a period of not

more than four consecutive or nonconsecutive days per calendar

year.

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Section 3 4.  Sections 411(e) and 437(d) of the act are

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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 in this section shall prohibit a person from having

an interest in a holder of a manufacturer, importer or

sacramental wine license and an interest in a holder of a hotel,

restaurant or club license so long as the person is not an

officer or director or either license holder, does not hold a

license of its own and does not exercise any control over any of

the licensed entities: And, provided further, That nothing in

this section shall prohibit a licensee, or its officers,

directors, shareholders, agents or employes from being an

officer, director or agent of an entity that has been issued a

restaurant liquor license under section 412 or 413 so long as

the licensee, or its officer, director, shareholder, agent or

employe does not have a financial interest in the license issued

under section 412 or 413.

Section 437.  Prohibitions Against the Grant of Licenses.--*

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(d)  [No person who holds, either by appointment or election,

any public office which involves the duty to enforce any of the

penal laws of the United States of America or any of the penal

laws of this Commonwealth or any penal ordinance or resolution

of any political subdivision of this Commonwealth shall be

issued any manufacturer's, importing distributor's,

distributor's or retail dispenser's license, nor shall such a

person have any interest, directly or indirectly, in any such

license.] No person who holds any public office which involves

the duty to enforce any of the penal laws of the United States

of America, this Commonwealth or of any political subdivision of

this Commonwealth, shall have any interest in any manufacturer,

distributor, importing distributor or restaurant liquor license.

This prohibition applies to anyone with arrest authority,

including, but not limited to, police officers, sheriffs,

district attorneys, State attorneys general and United States

attorneys. This prohibition shall also apply to district

justices, judges or any other individual who can impose a

criminal penalty. This prohibition does not apply to members of

the General Assembly, township supervisors, city councilpersons,

mayors without arrest authority and any other public office

which does not involve the ability to arrest or the ability to

impose a criminal sentence. This section also does not apply if

the proposed premises are located outside the jurisdiction of

the individual in question.

Section 4 5.  Section 443(g) of the act, amended May 31, 1996

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(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.

Notwithstanding any other provisions of this act, it shall be

lawful for a person to own an interest in a holder of a

manufacturing license and an interest in a holder of a

distributor, importing distributor or retail dispenser license

so long as the entity is not an officer or director of any of

the licensed entities, does not hold a license of its own and

does not exercise any control over any of the licensed entities.

Likewise, it shall be permissible for a person to have an

interest in a holder of a distributor or importing distributor

license and an interest in a holder of a retail dispenser

license so long as that person is not an officer or director of

either license holder, does not hold a license of its own and

does not exercise any control over any of the licensed entities.

Further, nothing in this section shall prohibit a licensee, or

its officers, directors, shareholders, agents or employes from

being an officer, director or agent of an entity that has been

issued a restaurant liquor license under section 412 or 413 so

long as the licensee, or its officer, director, shareholder,

agent or employe does not have a financial interest in the

license issued under section 412 or 413.

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 5 6.  This act shall take effect immediately.

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