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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1007, 1505, 1532,        PRINTER'S NO. 1852
        1630, 1767

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 926 Session of 1997


        INTRODUCED BY BRIGHTBILL, AFFLERBACH, EARLL, PICCOLA, HART,
           THOMPSON, WOZNIAK, HECKLER AND O'PAKE, APRIL 16, 1997

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MARCH 30, 1998

                                     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     providing for alcoholic cider; further providing for
    18     breweries and for TRANSFERS OF CERTAIN LICENSES AND FOR        <--
    19     limited wineries; providing for construction and
    20     applicability; and making repeals.

    21     The General Assembly of the Commonwealth of Pennsylvania
    22  hereby enacts as follows:
    23     Section 1.  The definition of "malt or brewed beverages" in
    24  section 102 of the act of April 12, 1951 (P.L.90, No.21), known
    25  as the Liquor Code, reenacted and amended June 29, 1987 (P.L.32,

     1  No.14), is amended and the section is amended by adding a
     2  definition to read:
     3     Section 102.  Definitions.--The following words or phrases,
     4  unless the context clearly indicates otherwise, shall have the
     5  meanings ascribed to them in this section:
     6     * * *
     7     "Alcoholic cider" shall mean a beverage which may contain
     8  carbonation in an amount not to exceed three hundred ninety-two
     9  one thousandths (.392) of a gram per one hundred (100)
    10  milliliters and flavors, produced through alcoholic fermentation
    11  of only apples or apple juice, consisting of at least one-half
    12  of one (.5%) per centum, but not greater than five and one-half   <--
    13  (5.5%) NO MORE THAN SIX (6%) per centum, alcohol by volume and    <--
    14  sold or offered for sale as alcoholic cider and not as a wine, a
    15  wine product, or as a substitute for wine, in bottles, cases,
    16  kegs, cans or other suitable containers of the type used for the
    17  sale of malt or brewed beverages in this Commonwealth.
    18     * * *
    19     "Malt or Brewed Beverages" [means] shall mean any beer, lager
    20  beer, ale, porter or similar fermented malt beverage containing
    21  one-half of one (.5%) per centum or more of alcohol by volume,
    22  by whatever name such beverage may be called, and shall mean
    23  alcoholic cider.
    24     * * *
    25     Section 2.  Section 446(2) of the act is amended to read:      <--
    26     Section 446.  Breweries.--Holders of a brewery license may:
    27     * * *
    28     (2)  Operate a restaurant or brewery pub on the licensed
    29  premises under such conditions and regulations as the board may
    30  enforce[.]: Provided, however, That sales on Sunday may be made
    19970S0926B1852                  - 2 -

     1  between the hours of one o'clock postmeridian and ten o'clock
     2  postmeridian, irrespective of the volume of food sales if the
     3  licensed premises are at a stadium or arena location.
     4     * * *
     5     SECTION 2.  SECTION 468(A) AND (C) OF THE ACT ARE AMENDED TO   <--
     6  READ:
     7     SECTION 468.  LICENSES NOT ASSIGNABLE; TRANSFERS.--(A)  (1)
     8  LICENSES ISSUED UNDER THIS ARTICLE MAY NOT BE ASSIGNED. THE
     9  BOARD, UPON PAYMENT OF THE TRANSFER FILING FEE [AND THE
    10  EXECUTION OF A NEW BOND], IS HEREBY AUTHORIZED TO TRANSFER ANY
    11  LICENSE ISSUED BY IT UNDER THE PROVISIONS OF THIS ARTICLE FROM
    12  ONE PERSON TO ANOTHER OR FROM ONE PLACE TO ANOTHER, OR BOTH,
    13  WITHIN THE SAME MUNICIPALITY, AND IF THE APPLICANT IS A UNIT OF
    14  A NONPROFIT NATIONALLY CHARTERED CLUB, THE BOARD IS HEREBY
    15  AUTHORIZED TO TRANSFER SUCH LICENSE TO A PLACE IN ANY OTHER
    16  MUNICIPALITY WITHIN THE SAME COUNTY IF THE SALE OF LIQUOR OR
    17  MALT AND BREWED BEVERAGES ARE LEGAL IN SUCH OTHER MUNICIPALITY
    18  AS THE BOARD MAY DETERMINE. PRIOR TO THE APPROVAL OF AN
    19  APPLICATION FOR TRANSFER BY A UNIT OF A NONPROFIT NATIONALLY
    20  CHARTERED CLUB THE BOARD SHALL MAKE AN AFFIRMATIVE FINDING, UPON
    21  PROOF SUBMITTED BY THE APPLICANT, AND AFTER INVESTIGATION BY THE
    22  BOARD, THAT AT THE TIME THE APPLICATION FOR TRANSFER IS MADE THE
    23  CLUB CONTINUES TO HOLD A VALID NATIONAL CHARTER AND CONTINUES TO
    24  FUNCTION IN FACT AS A CLUB AS DEFINED IN SECTION 102. THE BOARD,
    25  IN ITS DISCRETION, MAY TRANSFER AN EXISTING RESTAURANT RETAIL
    26  DISPENSER OR CLUB LICENSE FROM ONE MUNICIPALITY TO ANOTHER IN
    27  THE SAME COUNTY REGARDLESS OF THE QUOTA LIMITATIONS PROVIDED FOR
    28  IN THIS ACT, IF SALES OF LIQUOR OR MALT AND BREWED BEVERAGES ARE
    29  LEGAL IN SUCH OTHER MUNICIPALITY AND IF THE RESTAURANT RETAIL
    30  DISPENSER OR CLUB LOST THE USE OF THE BUILDING IN WHICH IT WAS
    19970S0926B1852                  - 3 -

     1  LOCATED DUE TO GOVERNMENTAL EXERCISE OF THE RIGHT OF EMINENT
     2  DOMAIN AND NO OTHER SUITABLE BUILDING CAN BE FOUND IN THE FIRST
     3  MUNICIPALITY.
     4     (2)  (I)  THE BOARD, IN ITS DISCRETION, MAY TRANSFER AN
     5  EXISTING RESTAURANT LIQUOR LICENSE OR A RETAIL DISPENSER LICENSE
     6  FROM ONE MUNICIPALITY TO ANOTHER MUNICIPALITY OF THE SAME COUNTY
     7  OR IN A CONTIGUOUS COUNTY REGARDLESS OF THE QUOTA LIMITATIONS
     8  PROVIDED FOR IN THIS ACT, IF:
     9     (A)  SALES OF LIQUOR OR MALT AND BREWED BEVERAGES ARE LEGAL
    10  IN SUCH OTHER MUNICIPALITY;
    11     (B)  THE LOCATION IN THE SAME COUNTY OR A CONTIGUOUS COUNTY
    12  IS AN INDOOR BOWLING CENTER; AND
    13     (C)  THE RESTAURANT LIQUOR LICENSE OR A RETAIL DISPENSER
    14  LICENSE IS CURRENTLY LOCATED IN AN AREA WHICH HAS BEEN
    15  DESIGNATED AS BLIGHTED.
    16     (II)  FOR PURPOSES OF THIS SUBSECTION, A PROPERTY SHALL BE
    17  DETERMINED TO BE BLIGHTED IF IT IS ANY OF THE FOLLOWING:
    18     (A)  REAL PROPERTY WITHIN OR OUTSIDE A CERTIFIED
    19  REDEVELOPMENT AREA DETERMINED TO BE BLIGHTED PROPERTY UNDER THE
    20  ACT OF MAY 24, 1945 (P.L.991, NO.385), KNOWN AS THE "URBAN
    21  REDEVELOPMENT LAW";
    22     (B)  ANY PROPERTY DECLARED TO BE BLIGHTED BY A PENNSYLVANIA
    23  LOCAL GOVERNMENT OR ITS AGENCY; OR
    24     (C)  ANY PROPERTY WHICH IS LOCATED WITHIN A REDEVELOPMENT
    25  AREA, WHEN ONE OF THE STATED PURPOSES OF DESIGNATION AS A
    26  REDEVELOPMENT AREA IS TO REMOVE BLIGHT, DESIGNATED BY A LOCAL
    27  GOVERNMENT OR ITS AGENCIES UNDER THE "URBAN REDEVELOPMENT LAW."
    28     (III)  A RESTAURANT LIQUOR LICENSE OR A RETAIL DISPENSER
    29  LICENSE WHICH IS TRANSFERRED TO AN INDOOR BOWLING CENTER MAY NOT
    30  BE TRANSFERRED AGAIN FOR FIVE YEARS UNLESS THAT TRANSFER IS IN
    19970S0926B1852                  - 4 -

     1  CONJUNCTION WITH THE SALE OF THE BOWLING BUSINESS. IN THE CASE
     2  OF DISTRIBUTOR AND IMPORTING DISTRIBUTOR LICENSES, THE BOARD MAY
     3  TRANSFER ANY SUCH LICENSE FROM ITS PLACE IN A MUNICIPALITY TO A
     4  PLACE IN ANY OTHER MUNICIPALITY WITHIN THE SAME COUNTY, OR FROM
     5  ONE PLACE TO ANOTHER PLACE WITHIN THE SAME MUNICIPALITY, OR
     6  EXCHANGE A DISTRIBUTOR LICENSE FOR AN IMPORTING DISTRIBUTOR
     7  LICENSE OR AN IMPORTING DISTRIBUTOR LICENSE FOR A DISTRIBUTOR
     8  LICENSE, IF THE BUILDING FOR WHICH THE LICENSE IS TO BE ISSUED
     9  HAS, IN THE CASE OF AN IMPORTING DISTRIBUTOR LICENSE, AN AREA
    10  UNDER ONE ROOF OF TWO THOUSAND FIVE HUNDRED SQUARE FEET AND, IN
    11  THE CASE OF A DISTRIBUTOR LICENSE, AN AREA UNDER ONE ROOF OF ONE
    12  THOUSAND SQUARE FEET: AND PROVIDED, THAT, IN THE CASE OF ALL
    13  TRANSFERS OF DISTRIBUTOR OR IMPORTING DISTRIBUTOR LICENSES,
    14  WHETHER FROM A PLACE WITHIN THE SAME MUNICIPALITY TO ANOTHER
    15  PLACE WITHIN THE SAME MUNICIPALITY OR FROM A PLACE IN A
    16  MUNICIPALITY TO A PLACE IN ANY OTHER MUNICIPALITY WITHIN THE
    17  SAME COUNTY, AND, IN THE CASE OF AN EXCHANGE OF A DISTRIBUTOR
    18  LICENSE FOR AN IMPORTING DISTRIBUTOR LICENSE OR AN IMPORTING
    19  DISTRIBUTOR LICENSE FOR A DISTRIBUTOR LICENSE, THE PREMISES TO
    20  BE AFFECTED BY THE TRANSFER OR EXCHANGE SHALL CONTAIN AN OFFICE
    21  SEPARATE AND APART FROM THE REMAINDER OF THE PREMISES TO BE
    22  LICENSED FOR THE PURPOSE OF KEEPING RECORDS, REQUIRED BY THE
    23  BOARD, ADEQUATE TOILET FACILITIES FOR EMPLOYES OF THE LICENSEE
    24  AND AN ENTRANCE ON A PUBLIC THOROUGHFARE: PROVIDED, HOWEVER,
    25  THAT IN THE EVENT THAT THE MAJORITY OF THE VOTING ELECTORS OF A
    26  MUNICIPALITY, AT AN ELECTION HELD UNDER THE PROVISIONS OF ANY
    27  LAW SO EMPOWERING THEM TO DO, SHALL VOTE AGAINST THE ISSUANCE OF
    28  DISTRIBUTOR OR IMPORTING DISTRIBUTOR LICENSES IN SUCH
    29  MUNICIPALITY, THE BOARD IS HEREBY AUTHORIZED TO TRANSFER ANY
    30  SUCH DISTRIBUTOR OR IMPORTING DISTRIBUTOR LICENSE FROM ITS PLACE
    19970S0926B1852                  - 5 -

     1  IN SUCH MUNICIPALITY TO A PLACE IN ANY OTHER MUNICIPALITY WITHIN
     2  THE SAME COUNTY, UPON APPLICATION PRIOR TO THE EXPIRATION OF ANY
     3  SUCH LICENSE AND UPON PAYMENT OF THE TRANSFER FILING FEE [AND
     4  THE EXECUTION OF A NEW BOND]; BUT NO TRANSFER SHALL BE MADE TO A
     5  PERSON WHO WOULD NOT HAVE BEEN ELIGIBLE TO RECEIVE THE LICENSE
     6  ORIGINALLY NOR FOR THE TRANSACTION OF BUSINESS AT A PLACE FOR
     7  WHICH THE LICENSE COULD NOT LAWFULLY HAVE BEEN ISSUED
     8  ORIGINALLY, NOR, EXCEPT AS HEREIN PROVIDED, TO A PLACE AS TO
     9  WHICH A LICENSE HAS BEEN REVOKED.
    10     (3)  NO LICENSE SHALL BE TRANSFERRED TO ANY PLACE OR PROPERTY
    11  UPON WHICH IS LOCATED AS A BUSINESS THE SALE OF LIQUID FUELS AND
    12  OIL. EXCEPT IN CASES OF EMERGENCY SUCH AS DEATH, SERIOUS
    13  ILLNESS, OR CIRCUMSTANCES BEYOND THE CONTROL OF THE LICENSEE, AS
    14  THE BOARD MAY DETERMINE SUCH CIRCUMSTANCES TO JUSTIFY ITS
    15  ACTION, TRANSFERS OF LICENSES MAY BE MADE ONLY AT TIMES FIXED BY
    16  THE BOARD. IN THE CASE OF THE DEATH OF A LICENSEE, THE BOARD MAY
    17  TRANSFER THE LICENSE TO THE SURVIVING SPOUSE OR PERSONAL
    18  REPRESENTATIVE OR TO A PERSON DESIGNATED BY HIM. FROM ANY
    19  REFUSAL TO GRANT A TRANSFER OR UPON THE GRANT OF ANY TRANSFER,
    20  THE PARTY AGGRIEVED SHALL HAVE THE RIGHT OF APPEAL TO THE PROPER
    21  COURT IN THE MANNER HEREINBEFORE PROVIDED.
    22     * * *
    23     (C) (1)  THE TERM "NONPROFIT NATIONALLY CHARTERED CLUB" SHALL
    24  MEAN ANY CLUB WHICH DOES NOT CONTEMPLATE PECUNIARY GAIN OR
    25  PROFIT, INCIDENTAL OR OTHERWISE, HAVING A NATIONAL CHARTER.
    26     (2)  THE TERM "UNIT OF A NONPROFIT NATIONALLY CHARTERED CLUB"
    27  SHALL MEAN ANY POST, BRANCH, LODGE OR OTHER SUBORDINATE UNIT OF
    28  A NONPROFIT NATIONALLY CHARTERED CLUB.
    29     (3)  THE TERM "INDOOR BOWLING CENTER" SHALL MEAN AN ENCLOSED
    30  FACILITY OF AT LEAST TWELVE THOUSAND SQUARE FEET WITH A MINIMUM
    19970S0926B1852                  - 6 -

     1  OF EIGHTEEN BOWLING LANES AND WHICH HAS AS ITS PRIMARY FOCUS THE
     2  OFFERING OF BOWLING AS A RECREATIONAL ACTIVITY TO THE GENERAL
     3  PUBLIC.
     4     * * *
     5     Section 3 2 3.  Section 505.2 of the act, amended April 29,    <--
     6  1994 (P.L.212, No.30) and May 31, 1996 (P.L.312, No.49), is
     7  amended to read:
     8     Section 505.2.  Limited Wineries.--In the interest of
     9  promoting tourism and recreational development in Pennsylvania,
    10  holders of a limited winery license may:
    11     (1)  Produce alcoholic ciders, wines and wine coolers only
    12  from fruits grown in Pennsylvania in an amount not to exceed two
    13  hundred thousand (200,000) gallons per year.
    14     (2)  Sell alcoholic cider, wine and wine coolers produced by
    15  the limited winery or purchased in bulk in bond from another
    16  Pennsylvania limited winery on the licensed premises, under such
    17  conditions and regulations as the board may enforce, to the
    18  board, to individuals and to hotel, restaurant, club and public
    19  service liquor licensees, and to Pennsylvania winery licensees:
    20  Provided, That a limited winery shall not, in any calendar year,
    21  purchase alcoholic cider or wine produced by other limited
    22  wineries in an amount in excess of fifty (50%) per centum of the
    23  alcoholic cider or wine produced by the purchasing limited
    24  winery in the preceding calendar year.
    25     (3)  Separately or in conjunction with other limited
    26  wineries, sell alcoholic cider, wine and wine coolers produced
    27  by the limited winery on no more than five (5) board-approved
    28  locations other than the licensed premises, with no bottling or
    29  production requirement at those additional board-approved
    30  locations and under such conditions and regulations as the board
    19970S0926B1852                  - 7 -

     1  may enforce, to the board, to individuals and to hotel,
     2  restaurant, club and public service liquor licensees.
     3     (4)  At the discretion of the board, obtain a special [wine]
     4  permit to participate in alcoholic cider, wine and food
     5  expositions off the licensed premises. A special [wine] permit
     6  shall be issued upon proper application and payment of a fee of
     7  thirty dollars ($30) per day for each day of permitted use, not
     8  to exceed five (5) consecutive days. A limited winery may not
     9  obtain more than five (5) special [wine] permits in any calendar
    10  year. The total number of days for all the special permits may
    11  not exceed ten (10) days in any calendar year. A special [wine]
    12  permit shall entitle the holder to engage in the sale of
    13  alcoholic cider or wine produced by the bottle or in case lots
    14  by the permittee under the authority of a limited winery
    15  license. Holders of special [wine] permits may provide tasting
    16  samples of wines in individual portions not to exceed one (1)
    17  fluid ounce. Samples at alcoholic cider, wine and food
    18  expositions may be sold or offered free of charge. Except as
    19  provided herein, limited wineries utilizing special [wine]
    20  permits shall be governed by all applicable provisions of this
    21  act as well as by all applicable regulations or conditions
    22  adopted by the board.
    23     For the purposes of this clause, "alcoholic cider, wine and
    24  food expositions" are defined as affairs held indoors or
    25  outdoors with the primary intent of educating those in
    26  attendance of the availability, nature and quality of
    27  Pennsylvania-produced alcoholic ciders and wines in conjunction
    28  with suitable food displays, demonstrations and sales. [Wine]
    29  Alcoholic cider, wine and food expositions may also include
    30  activities other than alcoholic cider, wine and food displays,
    19970S0926B1852                  - 8 -

     1  including arts and crafts, musical activities, cultural
     2  exhibits, agricultural exhibits and similar activities.
     3     (5)  Apply for and hold a hotel liquor license, a restaurant
     4  liquor license or a malt and brewed beverages retail license to
     5  sell for consumption at the restaurant or limited winery on the
     6  licensed winery premises, liquor, wine and malt or brewed
     7  beverages regardless of the place of manufacture under the same
     8  conditions and regulations as any other hotel liquor license,
     9  restaurant liquor license or malt and brewed beverages retail
    10  license.
    11     Section 4 3 4.  The act is amended by adding an article to     <--
    12  read:
    13                             ARTICLE X.
    14                     MISCELLANEOUS PROVISIONS.
    15     Section 1001.  Construction and Applicability.--(a)  Except
    16  as provided in subsection (b), unless the context clearly
    17  indicates otherwise, a reference to "malt or brewed beverages"
    18  in a statute shall be construed to include alcoholic cider.
    19     (b)  Regardless of context, a reference to "malt or brewed
    20  beverages" in Article XX of the act of March 4, 1971 (P.L.6,
    21  No.2), known as the "Tax Reform Code of 1971," shall be
    22  construed to include alcoholic cider.
    23     (c)  Except as provided in subsection (d), unless the context
    24  clearly indicates otherwise, a reference to "wine" in a statute
    25  shall be construed to exclude alcoholic cider.
    26     (d)  Regardless of context, a reference to "wine" in the act
    27  of December 5, 1933 (Sp.Sess., P.L.38, No.6), known as the
    28  "Spirituous and Vinous Liquor Tax Law," shall be construed to
    29  exclude alcoholic cider.
    30     Section 5 4 5.  The following acts and parts of acts are       <--
    19970S0926B1852                  - 9 -

     1  repealed insofar as they are inconsistent with this act:
     2     Act of December 5, 1933 (Sp.Sess., P.L.38, No.6), known as
     3  the Spirituous and Vinous Liquor Tax Law.
     4     Article XX of the act of March 4, 1971 (P.L.6, No.2), known
     5  as the Tax Reform Code of 1971.
     6     Section 6 5 6.  Pennsylvania Liquor Stores may continue to     <--
     7  sell alcoholic cider within its inventory after the effective
     8  date of this act, until the alcoholic cider within its current
     9  inventory is depleted. The Pennsylvania Liquor Control Board
    10  shall not purchase additional alcoholic cider after the
    11  effective date of this act.
    12     Section 7 6 7.  This act shall take effect in 60 days.         <--












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