PRINTER'S NO. 1693
No. 1158 Session of 2004
INTRODUCED BY CONTI, LOGAN, RAFFERTY, ERICKSON, EARLL, SCHWARTZ,
TARTAGLIONE AND M. WHITE, JUNE 14, 2004
REFERRED TO LAW AND JUSTICE, JUNE 14, 2004
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 definitions, for general powers of the
18 Pennsylvania Liquor Control Board, for when sales may be made
19 at Pennsylvania Liquor Stores, for sales by Pennsylvania
20 Liquor Stores, for malt and brewed beverages manufacturers',
21 distributors' and importing distributors' licenses, for
22 renewal of licenses, for temporary provisions for licensees
23 in armed service and for limited wineries.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
27 No.21), known as the Liquor Code, reenacted and amended June 29,
28 1987 (P.L.32, No.14), is amended by adding a definition to read:
1 Section 102. Definitions.--The following words or phrases,
2 unless the context clearly indicates otherwise, shall have the
3 meanings ascribed to them in this section:
4 * * *
5 "Holiday" shall mean the first day of January, commonly known
6 as New Year's Day; the third Monday of January, known as Dr.
7 Martin Luther King, Jr., Day; the third Monday in February,
8 known as Presidents Day; the last Monday in May, known as
9 Memorial Day; the fourth day of July, known as Independence Day;
10 the first Monday of September, known as Labor Day; the fourth
11 Thursday in November, known as Thanksgiving Day; and the twenty-
12 fifth day of December, known as Christmas Day.
13 * * *
14 Section 2. Section 207(a) of the act, amended December 30,
15 2003 (P.L.423, No.59), is amended to read:
16 Section 207. General Powers of Board.--Under this act, the
17 board shall have the power and its duty shall be:
18 (a) To buy, import or have in its possession for sale and
19 sell liquor, alcohol, corkscrews, wine and liquor accessories,
20 trade publications, gift cards, gift certificates and wine
21 glasses in the manner set forth in this act: Provided, however,
22 That all purchases shall be made subject to the approval of the
23 State Treasurer, or his designated deputy. The board shall buy
24 liquor and alcohol at the lowest price and in the greatest
25 variety reasonably obtainable.
26 * * *
27 Section 3. Section 304 of the act, amended December 9, 2002
28 (P.L.1653, No.212), is amended to read:
29 Section 304. When Sales May Be Made at Pennsylvania Liquor
30 Stores.--(a) Except as provided for in subsection (b), every
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1 Pennsylvania Liquor Store shall be open for business week days,
2 except [legal holidays or any day on which a general, municipal,
3 special or primary election is being held, during such hours as
4 the board, in its discretion, shall determine: Provided, That
5 the Pennsylvania Liquor Stores in the case of a special election
6 for members of the General Assembly or members of the Congress
7 of the United States, when such special election is held on
8 other than a primary, municipal or general election day, shall
9 be open in those Legislative or Congressional Districts as
10 though the day were not a special election day.] holidays as
11 that term is defined in section 102. The board may, with the
12 approval of the Governor, temporarily close any store in any
13 municipality.
14 (b) Certain Pennsylvania Liquor Stores operated by the board
15 [shall] may be open for Sunday retail sales [between the hours
16 of noon and five o'clock postmeridian] during such hours as the
17 board, in its discretion, shall determine, except that no Sunday
18 sales shall occur on Easter Sunday or Christmas [day. For a two-
19 year time period following the effective date of this
20 subsection, the] Day. The board shall open up to [ten] fifty per
21 centum of the total number of Pennsylvania Liquor Stores at its
22 discretion for Sunday sales as provided for in this subsection.
23 [At the expiration of the two-year time period, the board shall
24 conduct a review and determine whether the stores shall be
25 closed or whether additional stores shall be opened for these
26 Sunday sales.] The board shall submit yearly reports to the
27 Appropriations and the Law and Justice Committees of the Senate
28 and the Appropriations and the Liquor Control Committees of the
29 House of Representatives summarizing the total dollar value of
30 sales under this section.
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1 Section 4. Section 305(h) of the act, amended July 17, 2003
2 (P.L.63, No.15), is amended and the section is amended by adding
3 a subsection to read:
4 Section 305. Sales by Pennsylvania Liquor Stores.--* * *
5 * * *
6 (h) Every Pennsylvania Liquor Store shall sell gift
7 certificates and gift cards which may be redeemed for [liquor]
8 any product sold by the board. In addition, the board may sell
9 corkscrews, wine and liquor accessories, trade publications and
10 wine sleeves at Pennsylvania Liquor Stores.
11 (i) Notwithstanding any other provision of law to the
12 contrary, the board may sell wine in containers having a
13 capacity of six liters or less.
14 Section 5. Section 431(d)(2) of the act, amended December
15 20, 1996 (P.L.1513, No.196), is amended to read:
16 Section 431. Malt and Brewed Beverages Manufacturers',
17 Distributors' and Importing Distributors' Licenses.--* * *
18 (d) * * *
19 (2) After January 1, 1980, no manufacturer shall enter into
20 any agreement with more than one distributor or importing
21 distributor for the purpose of establishing more than one
22 agreement for designated brand or brands of malt or brewed
23 beverages in any one territory. Each franchise territory which
24 is granted by a manufacturer shall not be required to be
25 geographically contiguous. All importing distributors shall
26 maintain sufficient records to evidence compliance of this
27 section. With regard to any territorial distribution authority
28 granted to an importing distributor by a manufacturer of malt or
29 brewed beverages after January 1, 1996, the records shall
30 establish that each and every case of a brand of malt or brewed
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1 beverages for which the importing distributor is assigned was
2 sold, resold, stored, delivered or transported by the importing
3 distributor, either from a point or to a point with the assigned
4 [geographically contiguous] geographical territory, to any
5 person or persons, whether such person or persons are licensed
6 by this act or not licensed by this act.
7 * * *
8 Section 6. Section 470(a.1) and (b) of the act, amended
9 December 21, 1998 (P.L.1202, No.155), are amended and the
10 section is amended by adding a subsection to read:
11 Section 470. Renewal of Licenses; Temporary Provisions for
12 Licensees in Armed Service.--* * *
13 (a.1) The Director of the Bureau of Licensing may object to
14 and the board may refuse a properly filed license application:
15 (1) if the licensee, its shareholders, directors, officers,
16 association members, servants, agents or employes have violated
17 any of the laws of this Commonwealth or any of the regulations
18 of the board;
19 [(2) if the licensee has one or more adjudicated citations;]
20 (2) if the licensee, its shareholders, directors, officers,
21 association members, servants, agents or employes have one or
22 more adjudicated citations under this or any other license
23 issued by the board or were involved in a license whose renewal
24 was objected to by the Bureau of Licensing under this section;
25 (3) if the licensed premises no longer meets the
26 requirements of this act or the board's regulations; or
27 [(4) due to the manner in which the licensed premises is
28 being operated, the board can consider activity occurring on or
29 about the licensed premises or in areas under licensee's control
30 if the activity occurs when the premises is open for operation
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1 and if there is a relationship between the activity outside the
2 premises and the manner in which the licensed premises is
3 operated. The board may take into consideration whether the
4 licensee has taken any substantial steps to address the activity
5 occurring on or about the premises when the premises is open for
6 operation.]
7 (4) due to the manner in which this or another licensed
8 premises was operated while the licensee, its shareholders,
9 directors, officers, association members, servants, agents or
10 employes were involved with that license. When considering the
11 manner in which this or another licensed premises was being
12 operated, the board may consider activity that occurred on or
13 about the licensed premises or in areas under licensee's control
14 if the activity occurred when the premises was open for
15 operation and if there was a relationship between the activity
16 outside the premises and the manner in which the licensed
17 premises was operated. The board may take into consideration
18 whether any substantial steps were taken to address the activity
19 occurring on or about the premises.
20 * * *
21 (a.3) If the objection to the application is based on the
22 reputation, criminal history, citation history or activity of
23 one or more of the applicant's shareholders, directors,
24 officers, association members, servants, agents or employes, and
25 not on the reputation, criminal history, citation history or
26 activity attributable to the applicant, the board shall order
27 the divestiture of the shareholders, directors, officers,
28 association members, servants, agents or employes in question,
29 in lieu of refusing the application. If such divestiture does
30 not occur within thirty (30) days of the board's order, then the
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1 board may refuse the application.
2 (b) [In cases where a licensee or his servants, agents or
3 employes are arrested, charged with violating any of the laws of
4 this Commonwealth relating to liquor, alcohol or malt or brewed
5 beverages, and where the board has on file in such cases reports
6 of enforcement officers or investigators of the enforcement
7 bureau or from other sources that a licensee or his servants,
8 agents or employes have violated any of the aforementioned laws
9 and a proceeding to revoke such licensee's license is or is
10 about to be instituted, and such arrest occurs or report of
11 violations is received or revocation proceeding instituted or
12 about to be instituted during the time a renewal application of
13 such license is pending before the board, the board may, in its
14 discretion, renew the license, notwithstanding such alleged
15 violations, but such renewal license may be revoked if and when
16 the licensee or any of his servants, agents or employes are
17 convicted of or plead guilty to violations under the previous
18 license, as aforesaid, or if and when such previous license is
19 for any reason revoked.] In cases where a licensee or its
20 servants, agents or employes are arrested or charged with
21 violating any of the laws of this Commonwealth or if a licensee
22 has one or more unadjudicated citations pending against the
23 licensee at the time a renewal application for the license is
24 pending before the board, the board may, in its discretion,
25 renew the license; however, the renewed license may be
26 subsequently revoked by the board if and when the licensee or
27 its servants, agents or employes are convicted of the pending
28 criminal charges or when the citation issued against the license
29 is adjudicated by the Office of Administrative Law Judge.
30 In the event [such] the renewal license is revoked by the
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1 board, neither the license fee paid for [such] the license nor
2 any part thereof shall be returned to the licensee.
3 * * *
4 Section 7. Section 505.2 of the act, amended November 10,
5 1999 (P.L.514, No.47), December 9, 2002 (P.L.1653, No.212),
6 December 16, 2002 (P.L.1806, No.221) and July 17, 2003 (P.L.63,
7 No.15), is amended to read:
8 Section 505.2. Limited Wineries.--(a) 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,
12 subject to the exceptions provided under this section, only from
13 fruits grown in Pennsylvania.
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 brewery, hotel, restaurant, club
19 and public service liquor licensees, and to Pennsylvania winery
20 licensees: Provided, That a limited winery shall not, in any
21 calendar year, purchase alcoholic cider or wine produced by
22 other limited wineries in an amount in excess of fifty per
23 centum of the alcoholic cider or wine produced by the purchasing
24 limited winery in the preceding calendar year. In addition, the
25 holder of a limited winery license may purchase wine in bottles
26 from another Pennsylvania limited winery if these wines undergo
27 a second fermentation process. Such wine may be sold in bottles
28 bearing the purchasing limited winery's label or the producing
29 limited winery's label. Such wines, if sold by the board, may be
30 sold by the producing limited winery to the purchasing limited
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1 winery at a price lower than the price charged by the board.
2 (3) Separately or in conjunction with other limited
3 wineries, sell alcoholic cider, wine and wine coolers produced
4 by the limited winery on no more than five (5) board-approved
5 locations other than the licensed premises, with no bottling or
6 production requirement at those additional board-approved
7 locations and under such conditions and regulations as the board
8 may enforce, to the board, to individuals and to brewery, hotel,
9 restaurant, club and public service liquor licensees. If two or
10 more limited wineries apply to operate an additional board-
11 approved location in conjunction with each other, the wineries
12 need only have one board-approved manager for the location, need
13 only pay one application fee and need not designate specific or
14 distinct areas for each winery's licensed area. Each limited
15 winery must file an application for such an additional board-
16 approved location, and such location shall count as one of the
17 five permitted for each limited winery. Each limited winery is
18 responsible for keeping only its own complete records. A limited
19 winery may be cited for a violation of the recordkeeping
20 requirements of sections 512 and 513 pertaining to its own
21 records only.
22 (4) At the discretion of the board, obtain a special permit
23 to participate in alcoholic cider, wine and food expositions off
24 the licensed premises. A special permit shall be issued upon
25 proper application and payment of a fee of thirty dollars ($30)
26 per day for each day of permitted use, not to exceed five (5)
27 consecutive days. The total number of days for all the special
28 permits may not exceed forty (40) days in any calendar year. A
29 special permit shall entitle the holder to engage in the sale by
30 the glass, by the bottle or in case lots of alcoholic cider or
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1 wine produced [by the bottle or in case lots] by the permittee
2 under the authority of a limited winery license. Holders of
3 special permits may provide tasting samples of wines in
4 individual portions not to exceed one fluid ounce. Samples at
5 alcoholic cider, wine and food expositions may be sold or
6 offered free of charge. Except as provided herein, limited
7 wineries utilizing special permits shall be governed by all
8 applicable provisions of this act as well as by all applicable
9 regulations or conditions adopted by the board.
10 For the purposes of this clause, "alcoholic cider, wine and
11 food expositions" are defined as affairs held indoors or
12 outdoors with the primary intent of educating those in
13 attendance of the availability, nature and quality of
14 Pennsylvania-produced alcoholic ciders and wines in conjunction
15 with suitable food displays, demonstrations and sales. Alcoholic
16 cider, wine and food expositions may also include activities
17 other than alcoholic cider, wine and food displays, including
18 arts and crafts, musical activities, cultural exhibits,
19 agricultural exhibits and similar activities.
20 (5) Apply for and hold a hotel liquor license, a restaurant
21 liquor license or a malt and brewed beverages retail license to
22 sell for consumption at the restaurant or limited winery on the
23 licensed winery premises, liquor, wine and malt or brewed
24 beverages regardless of the place of manufacture under the same
25 conditions and regulations as any other hotel liquor license,
26 restaurant liquor license or malt and brewed beverages retail
27 license.
28 (6) (i) Secure a permit from the board to allow the holder
29 of a limited winery license to use up to twenty-five per centum
30 permitted fruit, not wine, in the current year's production.
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1 Each permit is valid only for the calendar year in which it is
2 issued.
3 (ii) The fee for a permit to import and use permitted fruit
4 shall be in an amount to be determined by the board.
5 (iii) The purpose of this section is to increase the
6 productivity of limited wineries while at the same time
7 protecting the integrity and unique characteristics of wine
8 produced from fruit primarily grown in this Commonwealth.
9 Prevailing climatic conditions have a significant impact on the
10 character of the fruit. Accordingly, "permitted fruit" shall
11 mean fruit grown or juice derived from fruit grown within three
12 hundred fifty (350) miles of the winery.
13 (iv) The department is authorized to promulgate regulations
14 requiring the filing of periodic reports by limited wineries to
15 ensure compliance with the provisions of this section.
16 (v) This clause shall expire on December 31, 2004.
17 (6.1) Operate a restaurant on the licensed premises and sell
18 by the glass only wine and alcoholic ciders that may otherwise
19 be sold by the bottle.
20 [(7)] (b) The total production of alcoholic ciders, wine and
21 wine coolers by a limited winery may not exceed two hundred
22 thousand (200,000) gallons per year.
23 Section 8. This act shall take effect in 60 days.
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