PRIOR PRINTER'S NO. 1693 PRINTER'S NO. 1740
No. 1158 Session of 2004
INTRODUCED BY CONTI, LOGAN, RAFFERTY, ERICKSON, EARLL, SCHWARTZ,
TARTAGLIONE, M. WHITE, COSTA AND LEMMOND, JUNE 14, 2004
SENATOR THOMPSON, APPROPRIATIONS, RE-REPORTED AS AMENDED,
JUNE 23, 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,
1 1987 (P.L.32, No.14), is amended by adding a definition to read:
2 Section 102. Definitions.--The following words or phrases,
3 unless the context clearly indicates otherwise, shall have the
4 meanings ascribed to them in this section:
5 * * *
6 "Holiday" shall mean the first day of January, commonly known
7 as New Year's Day; the third Monday of January, known as Dr.
8 Martin Luther King, Jr., Day; the third Monday in February,
9 known as Presidents Day; the last Monday in May, known as
10 Memorial Day; the fourth day of July, known as Independence Day;
11 the first Monday of September, known as Labor Day; the fourth
12 Thursday in November, known as Thanksgiving Day; and the twenty-
13 fifth day of December, known as Christmas Day.
14 * * *
15 Section 2. Section 207(a) of the act, amended December 30,
16 2003 (P.L.423, No.59), is amended to read:
17 Section 207. General Powers of Board.--Under this act, the
18 board shall have the power and its duty shall be:
19 (a) To buy, import or have in its possession for sale and
20 sell liquor, alcohol, corkscrews, wine and liquor accessories,
21 trade publications, gift cards, gift certificates and wine
22 glasses in the manner set forth in this act: Provided, however,
23 That all purchases shall be made subject to the approval of the
24 State Treasurer, or his designated deputy. The board shall buy
25 liquor and alcohol at the lowest price and in the greatest
26 variety reasonably obtainable.
27 * * *
28 Section 3. Section 304 of the act, amended December 9, 2002
29 (P.L.1653, No.212), is amended to read:
30 Section 304. When Sales May Be Made at Pennsylvania Liquor
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1 Stores.--(a) Except as provided for in subsection (b), every
2 Pennsylvania Liquor Store shall be open for business week days,
3 except [legal holidays or any day on which a general, municipal,
4 special or primary election is being held, during such hours as
5 the board, in its discretion, shall determine: Provided, That
6 the Pennsylvania Liquor Stores in the case of a special election
7 for members of the General Assembly or members of the Congress
8 of the United States, when such special election is held on
9 other than a primary, municipal or general election day, shall
10 be open in those Legislative or Congressional Districts as
11 though the day were not a special election day.] holidays as
12 that term is defined in section 102. The board may, with the
13 approval of the Governor, temporarily close any store in any
14 municipality.
15 (b) Certain Pennsylvania Liquor Stores operated by the board
16 [shall] may be open for Sunday retail sales [between the hours
17 of noon and five o'clock postmeridian] during such hours as the
18 board, in its discretion, shall determine, except that no Sunday
19 sales shall occur on Easter Sunday or Christmas [day. For a two-
20 year time period following the effective date of this
21 subsection, the] Day. The board shall open up to [ten] fifty per
22 centum of the total number of Pennsylvania Liquor Stores at its
23 discretion for Sunday sales as provided for in this subsection.
24 [At the expiration of the two-year time period, the board shall
25 conduct a review and determine whether the stores shall be
26 closed or whether additional stores shall be opened for these
27 Sunday sales.] The board shall submit yearly reports to the
28 Appropriations and the Law and Justice Committees of the Senate
29 and the Appropriations and the Liquor Control Committees of the
30 House of Representatives summarizing the total dollar value of
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1 sales under this section.
2 Section 4. Section 305(h) of the act, amended July 17, 2003
3 (P.L.63, No.15), is amended and the section is amended by adding
4 a subsection to read:
5 Section 305. Sales by Pennsylvania Liquor Stores.--* * *
6 * * *
7 (h) Every Pennsylvania Liquor Store shall sell gift
8 certificates and gift cards which may be redeemed for [liquor]
9 any product sold by the board. In addition, the board may sell
10 corkscrews, wine and liquor accessories, trade publications and
11 wine sleeves at Pennsylvania Liquor Stores.
12 (i) Notwithstanding any other provision of law to the
13 contrary, the board may sell wine in containers having a
14 capacity of six liters or less.
15 Section 5. Section 431(d)(2) of the act, amended December <--
16 20, 1996 (P.L.1513, No.196), is amended to read:
17 SECTION 5. SECTION 431(A.1), (A.2), (B) AND (D)(2) OF THE <--
18 ACT, AMENDED OR ADDED DECEMBER 20, 1996 (P.L.1513, NO.196), JUNE
19 18, 1998 (P.L.664, NO.86) AND DECEMBER 9, 2002 (P.L.1653,
20 NO.212), ARE AMENDED TO READ:
21 Section 431. Malt and Brewed Beverages Manufacturers',
22 Distributors' and Importing Distributors' Licenses.--* * *
23 (A.1) ANY OUT OF STATE MANUFACTURER WHOSE PRODUCTS ARE SOLD <--
24 AND DELIVERED WITHIN THIS COMMONWEALTH AND WHOSE PRODUCTION
25 EXCEEDS 15,000 BARRELS PER YEAR SHALL BE AUTHORIZED: TO RENT,
26 LEASE OR OTHERWISE ACQUIRE SPACE FROM AN IMPORTING DISTRIBUTOR
27 OR BAILEE FOR HIRE AUTHORIZED BY THIS ACT AT NO MORE THAN TWO
28 LOCATIONS PER MANUFACTURER FOR USE OF A SEGREGATED PORTION OF A
29 WAREHOUSE OR OTHER STORAGE FACILITY OWNED OR OPERATED BY THE
30 IMPORTING DISTRIBUTOR OR BAILEE FOR HIRE AT WHICH THE OUT OF
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1 STATE MANUFACTURER MAY STORE, REPACKAGE AND SELL MALT OR BREWED
2 BEVERAGES TO ANY IMPORTING DISTRIBUTOR TO WHOM THE OUT OF STATE
3 MANUFACTURER HAS GRANTED DISTRIBUTION RIGHTS PURSUANT TO
4 SUBSECTION (B) OR TO ANY PURCHASER OUTSIDE THIS COMMONWEALTH FOR
5 DELIVERY OUTSIDE THIS COMMONWEALTH; OR TO SHIP TO ITS STORAGE
6 FACILITY OUTSIDE THIS COMMONWEALTH. SUCH MANUFACTURER MAY
7 COMPENSATE THE IMPORTING DISTRIBUTOR OR BAILEE FOR HIRE FOR ANY
8 RELATED STORAGE, REPACKAGING OR DELIVERY SERVICES. THE OUT OF
9 STATE MANUFACTURER MUST FILE WITH THE LIQUOR CONTROL BOARD THE
10 RATE OF COMPENSATION TO BE PAID. A SEPARATE WRITTEN APPLICATION
11 MUST BE FILED TO ACQUIRE STORAGE LICENSES, AND THE BOARD MAY
12 ESTABLISH THE INFORMATION THAT MUST BE PROVIDED ON THE
13 APPLICATION. THE INITIAL FILING MUST BE MADE PRIOR TO ANY
14 PAYMENTS BEING MADE, AND ANY SUBSEQUENT CHANGES IN THE RATE OF
15 COMPENSATION MUST BE FILED WITHIN THIRTY DAYS OF ANY SUCH
16 CHANGE. NOTHING IN THIS ACT AUTHORIZING STORAGE FACILITIES FOR
17 OUT OF STATE MANUFACTURERS IS INTENDED TO MAKE ANY CHANGE IN THE
18 MANNER MALT OR BREWED BEVERAGES ARE DISTRIBUTED THROUGH THE
19 THREE-TIER SYSTEM.
20 (A.2) THE BOARD SHALL ISSUE TO A HOLDER OF A MANUFACTURER'S
21 LICENSE WHOSE PRODUCTION EXCEEDS 15,000 BARRELS PER YEAR NO MORE
22 THAN TWO STORAGE LICENSES PER MANUFACTURER TO COVER STORAGE
23 FACILITIES SEPARATE FROM THE LOCATION OF THE MANUFACTURING
24 FACILITY. A MANUFACTURER MAY USE ITS STORAGE FACILITIES TO
25 RECEIVE, STORE, REPACKAGE, SELL AND DISTRIBUTE MALT OR BREWED
26 BEVERAGES IN THE SAME MANNER AS IT CAN AT ITS PLACE OF
27 MANUFACTURE OR IT MAY RENT, LEASE OR OTHERWISE ACQUIRE SPACE
28 FROM AN IMPORTING DISTRIBUTOR OR BAILEE FOR HIRE AUTHORIZED BY
29 THIS ACT IN THE SAME MANNER AS AN OUT OF STATE MANUFACTURER AS
30 SET FORTH IN SUBSECTION (A.1). A SEPARATE WRITTEN APPLICATION
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1 MUST BE FILED TO ACQUIRE STORAGE LICENSES, AND THE BOARD IS
2 EMPOWERED TO ESTABLISH WHAT INFORMATION MUST BE PROVIDED ON THAT
3 APPLICATION. NOTHING IN THIS ACT AUTHORIZING OFF-SITE STORAGE
4 FACILITIES FOR MANUFACTURERS IS INTENDED TO MAKE ANY CHANGE IN
5 THE MANNER MALT OR BREWED BEVERAGES ARE DISTRIBUTED THROUGH THE
6 THREE-TIER SYSTEM.
7 (B) THE BOARD SHALL ISSUE TO ANY REPUTABLE PERSON WHO
8 APPLIES THEREFOR, AND PAYS THE LICENSE FEE HEREINAFTER
9 PRESCRIBED, A DISTRIBUTOR'S OR IMPORTING DISTRIBUTOR'S LICENSE
10 FOR THE PLACE WHICH SUCH PERSON DESIRES TO MAINTAIN FOR THE SALE
11 OF MALT OR BREWED BEVERAGES, NOT FOR CONSUMPTION ON THE PREMISES
12 WHERE SOLD, AND IN QUANTITIES OF NOT LESS THAN A CASE OR
13 ORIGINAL CONTAINERS CONTAINING ONE HUNDRED TWENTY-EIGHT OUNCES
14 OR MORE WHICH MAY BE SOLD SEPARATELY AS PREPARED FOR THE MARKET
15 BY THE MANUFACTURER AT THE PLACE OF MANUFACTURE. THE BOARD SHALL
16 HAVE THE DISCRETION TO REFUSE A LICENSE TO ANY PERSON OR TO ANY
17 CORPORATION, PARTNERSHIP OR ASSOCIATION IF SUCH PERSON, OR ANY
18 OFFICER OR DIRECTOR OF SUCH CORPORATION, OR ANY MEMBER OR
19 PARTNER OF SUCH PARTNERSHIP OR ASSOCIATION SHALL HAVE BEEN
20 CONVICTED OR FOUND GUILTY OF A FELONY WITHIN A PERIOD OF FIVE
21 YEARS IMMEDIATELY PRECEDING THE DATE OF APPLICATION FOR THE SAID
22 LICENSE: AND PROVIDED FURTHER, THAT, IN THE CASE OF ANY NEW
23 LICENSE OR THE TRANSFER OF ANY LICENSE TO A NEW LOCATION, THE
24 BOARD MAY, IN ITS DISCRETION, GRANT OR REFUSE SUCH NEW LICENSE
25 OR TRANSFER IF SUCH PLACE PROPOSED TO BE LICENSED IS WITHIN
26 THREE HUNDRED FEET OF ANY CHURCH, HOSPITAL, CHARITABLE
27 INSTITUTION, SCHOOL OR PUBLIC PLAYGROUND, OR IF SUCH NEW LICENSE
28 OR TRANSFER IS APPLIED FOR A PLACE WHICH IS WITHIN TWO HUNDRED
29 FEET OF ANY OTHER PREMISES WHICH IS LICENSED BY THE BOARD: AND
30 PROVIDED FURTHER, THAT THE BOARD SHALL REFUSE ANY APPLICATION
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1 FOR A NEW LICENSE OR THE TRANSFER OF ANY LICENSE TO A NEW
2 LOCATION IF, IN THE BOARD'S OPINION, SUCH NEW LICENSE OR
3 TRANSFER WOULD BE DETRIMENTAL TO THE WELFARE, HEALTH, PEACE AND
4 MORALS OF THE INHABITANTS OF THE NEIGHBORHOOD WITHIN A RADIUS OF
5 FIVE HUNDRED FEET OF THE PLACE PROPOSED TO BE LICENSED. THE
6 BOARD SHALL REFUSE ANY APPLICATION FOR A NEW LICENSE OR THE
7 TRANSFER OF ANY LICENSE TO A LOCATION WHERE THE SALE OF LIQUID
8 FUELS OR OIL IS CONDUCTED. THE BOARD MAY ENTER INTO AN AGREEMENT
9 WITH THE APPLICANT CONCERNING ADDITIONAL RESTRICTIONS ON THE
10 LICENSE IN QUESTION. IF THE BOARD AND THE APPLICANT ENTER INTO
11 SUCH AN AGREEMENT, SUCH AGREEMENT SHALL BE BINDING ON THE
12 APPLICANT. FAILURE BY THE APPLICANT TO ADHERE TO THE AGREEMENT
13 WILL BE SUFFICIENT CAUSE TO FORM THE BASIS FOR A CITATION UNDER
14 SECTION 471 AND FOR THE NONRENEWAL OF THE LICENSE UNDER SECTION
15 470. IF THE BOARD ENTERS INTO AN AGREEMENT WITH AN APPLICANT
16 CONCERNING ADDITIONAL RESTRICTIONS, THOSE RESTRICTIONS SHALL BE
17 BINDING ON SUBSEQUENT HOLDERS OF THE LICENSE UNTIL THE LICENSE
18 IS TRANSFERRED TO A NEW LOCATION OR UNTIL THE BOARD ENTERS INTO
19 A SUBSEQUENT AGREEMENT REMOVING THOSE RESTRICTIONS. IF THE
20 APPLICATION IN QUESTION INVOLVES A LOCATION PREVIOUSLY LICENSED
21 BY THE BOARD, THEN ANY RESTRICTIONS IMPOSED BY THE BOARD ON THE
22 PREVIOUS LICENSE AT THAT LOCATION SHALL BE BINDING ON THE
23 APPLICANT UNLESS THE BOARD ENTERS INTO A NEW AGREEMENT
24 RESCINDING THOSE RESTRICTIONS. THE BOARD SHALL REQUIRE NOTICE TO
25 BE POSTED ON THE PROPERTY OR PREMISES UPON WHICH THE LICENSEE OR
26 PROPOSED LICENSEE WILL ENGAGE IN SALES OF MALT OR BREWED
27 BEVERAGES. THIS NOTICE SHALL BE SIMILAR TO THE NOTICE REQUIRED
28 OF HOTEL, RESTAURANT AND CLUB LIQUOR LICENSEES.
29 EXCEPT AS HEREINAFTER PROVIDED, SUCH LICENSE SHALL AUTHORIZE
30 THE HOLDER THEREOF TO SELL OR DELIVER MALT OR BREWED BEVERAGES
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1 IN QUANTITIES ABOVE SPECIFIED ANYWHERE WITHIN THE COMMONWEALTH
2 OF PENNSYLVANIA, WHICH, IN THE CASE OF DISTRIBUTORS, HAVE BEEN
3 PURCHASED ONLY FROM PERSONS LICENSED UNDER THIS ACT AS
4 MANUFACTURERS OR IMPORTING DISTRIBUTORS, AND IN THE CASE OF
5 IMPORTING DISTRIBUTORS, HAVE BEEN PURCHASED FROM MANUFACTURERS
6 OR PERSONS OUTSIDE THIS COMMONWEALTH ENGAGED IN THE LEGAL SALE
7 OF MALT OR BREWED BEVERAGES OR FROM MANUFACTURERS OR IMPORTING
8 DISTRIBUTORS LICENSED UNDER THIS ARTICLE. IN THE CASE OF AN
9 IMPORTING DISTRIBUTOR, THE HOLDER OF SUCH A LICENSE SHALL BE
10 AUTHORIZED TO STORE AND REPACKAGE MALT OR BREWED BEVERAGES OWNED
11 BY [AN OUT OF STATE] A MANUFACTURER AT A SEGREGATED PORTION OF A
12 WAREHOUSE OR OTHER STORAGE FACILITY AUTHORIZED BY SECTION 441(D)
13 AND OPERATED BY THE IMPORTING DISTRIBUTOR WITHIN ITS APPOINTED
14 TERRITORY AND DELIVER SUCH BEVERAGES TO ANOTHER IMPORTING
15 DISTRIBUTOR WHO HAS BEEN GRANTED DISTRIBUTION RIGHTS BY THE [OUT
16 OF STATE] MANUFACTURER AS PROVIDED HEREIN. THE IMPORTING
17 DISTRIBUTOR SHALL BE PERMITTED TO RECEIVE A FEE FROM THE [OUT OF
18 STATE] MANUFACTURER FOR ANY RELATED STORAGE, REPACKAGING OR
19 DELIVERY SERVICES. IN THE CASE OF A BAILEE FOR HIRE HIRED BY [AN
20 OUT OF STATE] A MANUFACTURER, THE HOLDER OF SUCH A PERMIT SHALL
21 BE AUTHORIZED: TO RECEIVE [OR], STORE AND REPACKAGE MALT OR
22 BREWED BEVERAGES [UNDER THE SAME CONDITIONS AS PERMITTED FOR A
23 DISTRIBUTOR OR IMPORTING DISTRIBUTOR UNDER SECTION 441(F)]
24 PRODUCED BY THAT [OUT OF STATE] MANUFACTURER FOR SALE BY THAT
25 MANUFACTURER TO IMPORTING DISTRIBUTORS TO WHOM THAT [OUT OF
26 STATE] MANUFACTURER HAS GIVEN DISTRIBUTION RIGHTS PURSUANT TO
27 THIS SUBSECTION OR TO PURCHASERS OUTSIDE THIS COMMONWEALTH FOR
28 DELIVERY OUTSIDE THIS COMMONWEALTH; OR TO SHIP TO THAT [OUT OF
29 STATE] MANUFACTURER'S STORAGE FACILITIES OUTSIDE THIS
30 COMMONWEALTH. THE BAILEE FOR HIRE SHALL BE PERMITTED TO RECEIVE
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1 A FEE FROM THE [OUT OF STATE] MANUFACTURER FOR ANY RELATED
2 STORAGE, REPACKAGING OR DELIVERY SERVICES. THE BAILEE FOR HIRE
3 SHALL, AS REQUIRED IN ARTICLE V OF THIS ACT, KEEP COMPLETE AND
4 ACCURATE RECORDS OF ALL TRANSACTIONS, INVENTORY, RECEIPTS AND
5 SHIPMENTS AND MAKE ALL RECORDS AND THE LICENSED AREAS AVAILABLE
6 FOR INSPECTION BY THE BOARD AND FOR THE PENNSYLVANIA STATE
7 POLICE, BUREAU OF LIQUOR CONTROL ENFORCEMENT, DURING NORMAL
8 BUSINESS HOURS.
9 EACH OUT OF STATE MANUFACTURER OF MALT OR BREWED BEVERAGES
10 WHOSE PRODUCTS ARE SOLD AND DELIVERED IN THIS COMMONWEALTH SHALL
11 GIVE DISTRIBUTING RIGHTS FOR SUCH PRODUCTS IN DESIGNATED
12 GEOGRAPHICAL AREAS TO SPECIFIC IMPORTING DISTRIBUTORS, AND SUCH
13 IMPORTING DISTRIBUTOR SHALL NOT SELL OR DELIVER MALT OR BREWED
14 BEVERAGES MANUFACTURED BY THE OUT OF STATE MANUFACTURER TO ANY
15 PERSON ISSUED A LICENSE UNDER THE PROVISIONS OF THIS ACT WHOSE
16 LICENSED PREMISES ARE NOT LOCATED WITHIN THE GEOGRAPHICAL AREA
17 FOR WHICH HE HAS BEEN GIVEN DISTRIBUTING RIGHTS BY SUCH
18 MANUFACTURER. SHOULD A LICENSEE ACCEPT THE DELIVERY OF SUCH MALT
19 OR BREWED BEVERAGES IN VIOLATION OF THIS SECTION, SAID LICENSEE
20 SHALL BE SUBJECT TO A SUSPENSION OF HIS LICENSE FOR AT LEAST
21 THIRTY DAYS: PROVIDED, THAT THE IMPORTING DISTRIBUTOR HOLDING
22 SUCH DISTRIBUTING RIGHTS FOR SUCH PRODUCT SHALL NOT SELL OR
23 DELIVER THE SAME TO ANOTHER IMPORTING DISTRIBUTOR WITHOUT FIRST
24 HAVING ENTERED INTO A WRITTEN AGREEMENT WITH THE SAID SECONDARY
25 IMPORTING DISTRIBUTOR SETTING FORTH THE TERMS AND CONDITIONS
26 UNDER WHICH SUCH PRODUCTS ARE TO BE RESOLD WITHIN THE TERRITORY
27 GRANTED TO THE PRIMARY IMPORTING DISTRIBUTOR BY THE
28 MANUFACTURER.
29 WHEN A PENNSYLVANIA MANUFACTURER OF MALT OR BREWED BEVERAGES
30 LICENSED UNDER THIS ARTICLE NAMES OR CONSTITUTES A DISTRIBUTOR
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1 OR IMPORTING DISTRIBUTOR AS THE PRIMARY OR ORIGINAL SUPPLIER OF
2 HIS PRODUCT, HE SHALL ALSO DESIGNATE THE SPECIFIC GEOGRAPHICAL
3 AREA FOR WHICH THE SAID DISTRIBUTOR OR IMPORTING DISTRIBUTOR IS
4 GIVEN DISTRIBUTING RIGHTS, AND SUCH DISTRIBUTOR OR IMPORTING
5 DISTRIBUTOR SHALL NOT SELL OR DELIVER THE PRODUCTS OF SUCH
6 MANUFACTURER TO ANY PERSON ISSUED A LICENSE UNDER THE PROVISIONS
7 OF THIS ACT WHOSE LICENSED PREMISES ARE NOT LOCATED WITHIN THE
8 GEOGRAPHICAL AREA FOR WHICH DISTRIBUTING RIGHTS HAVE BEEN GIVEN
9 TO THE DISTRIBUTOR AND IMPORTING DISTRIBUTOR BY THE SAID
10 MANUFACTURER: PROVIDED, THAT THE IMPORTING DISTRIBUTOR HOLDING
11 SUCH DISTRIBUTING RIGHTS FOR SUCH PRODUCT SHALL NOT SELL OR
12 DELIVER THE SAME TO ANOTHER IMPORTING DISTRIBUTOR WITHOUT FIRST
13 HAVING ENTERED INTO A WRITTEN AGREEMENT WITH THE SAID SECONDARY
14 IMPORTING DISTRIBUTOR SETTING FORTH THE TERMS AND CONDITIONS
15 UNDER WHICH SUCH PRODUCTS ARE TO BE RESOLD WITHIN THE TERRITORY
16 GRANTED TO THE PRIMARY IMPORTING DISTRIBUTOR BY THE
17 MANUFACTURER. NOTHING HEREIN CONTAINED SHALL BE CONSTRUED TO
18 PREVENT ANY MANUFACTURER FROM AUTHORIZING THE IMPORTING
19 DISTRIBUTOR HOLDING THE DISTRIBUTING RIGHTS FOR A DESIGNATED
20 GEOGRAPHICAL AREA FROM SELLING THE PRODUCTS OF SUCH MANUFACTURER
21 TO ANOTHER IMPORTING DISTRIBUTOR ALSO HOLDING DISTRIBUTING
22 RIGHTS FROM THE SAME MANUFACTURER FOR ANOTHER GEOGRAPHICAL AREA,
23 PROVIDING SUCH AUTHORITY BE CONTAINED IN WRITING AND A COPY
24 THEREOF BE GIVEN TO EACH OF THE IMPORTING DISTRIBUTORS SO
25 AFFECTED.
26 * * *
27 (d) * * *
28 (2) After January 1, 1980, no manufacturer shall enter into
29 any agreement with more than one distributor or importing
30 distributor for the purpose of establishing more than one
20040S1158B1740 - 10 -
1 agreement for designated brand or brands of malt or brewed
2 beverages in any one territory. Each franchise territory which
3 is granted by a manufacturer shall not be required to be
4 geographically contiguous. All importing distributors shall
5 maintain sufficient records to evidence compliance of this
6 section. With regard to any territorial distribution authority
7 granted to an importing distributor by a manufacturer of malt or
8 brewed beverages after January 1, 1996, the records shall
9 establish that each and every case of a brand of malt or brewed
10 beverages for which the importing distributor is assigned was
11 sold, resold, stored, delivered or transported by the importing
12 distributor, either from a point or to a point with the assigned
13 [geographically contiguous] geographical territory, to any
14 person or persons, whether such person or persons are licensed
15 by this act or not licensed by this act.
16 * * *
17 Section 6. Section 470(a.1) and (b) of the act, amended
18 December 21, 1998 (P.L.1202, No.155), are amended and the
19 section is amended by adding a subsection to read:
20 Section 470. Renewal of Licenses; Temporary Provisions for
21 Licensees in Armed Service.--* * *
22 (a.1) The Director of the Bureau of Licensing may object to
23 and the board may refuse a properly filed license application:
24 (1) if the licensee, its shareholders, directors, officers,
25 association members, servants, agents or employes have violated
26 any of the laws of this Commonwealth or any of the regulations
27 of the board;
28 [(2) if the licensee has one or more adjudicated citations;]
29 (2) if the licensee, its shareholders, directors, officers,
30 association members, servants, agents or employes have one or
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1 more adjudicated citations under this or any other license
2 issued by the board or were involved in a license whose renewal
3 was objected to by the Bureau of Licensing under this section;
4 (3) if the licensed premises no longer meets the
5 requirements of this act or the board's regulations; or
6 [(4) due to the manner in which the licensed premises is
7 being operated, the board can consider activity occurring on or
8 about the licensed premises or in areas under licensee's control
9 if the activity occurs when the premises is open for operation
10 and if there is a relationship between the activity outside the
11 premises and the manner in which the licensed premises is
12 operated. The board may take into consideration whether the
13 licensee has taken any substantial steps to address the activity
14 occurring on or about the premises when the premises is open for
15 operation.]
16 (4) due to the manner in which this or another licensed
17 premises was operated while the licensee, its shareholders,
18 directors, officers, association members, servants, agents or
19 employes were involved with that license. When considering the
20 manner in which this or another licensed premises was being
21 operated, the board may consider activity that occurred on or
22 about the licensed premises or in areas under licensee's control
23 if the activity occurred when the premises was open for
24 operation and if there was a relationship between the activity
25 outside the premises and the manner in which the licensed
26 premises was operated. The board may take into consideration
27 whether any substantial steps were taken to address the activity
28 occurring on or about the premises.
29 * * *
30 (a.3) If the objection to the application is based on the
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1 reputation, criminal history, citation history or activity of
2 one or more of the applicant's shareholders, directors,
3 officers, association members, servants, agents or employes, and
4 not on the reputation, criminal history, citation history or
5 activity attributable to the applicant, the board shall order
6 the divestiture of the shareholders, directors, officers,
7 association members, servants, agents or employes in question,
8 in lieu of refusing the application. If such divestiture does
9 not occur within thirty (30) days of the board's order, then the
10 board may refuse the application.
11 (b) [In cases where a licensee or his servants, agents or
12 employes are arrested, charged with violating any of the laws of
13 this Commonwealth relating to liquor, alcohol or malt or brewed
14 beverages, and where the board has on file in such cases reports
15 of enforcement officers or investigators of the enforcement
16 bureau or from other sources that a licensee or his servants,
17 agents or employes have violated any of the aforementioned laws
18 and a proceeding to revoke such licensee's license is or is
19 about to be instituted, and such arrest occurs or report of
20 violations is received or revocation proceeding instituted or
21 about to be instituted during the time a renewal application of
22 such license is pending before the board, the board may, in its
23 discretion, renew the license, notwithstanding such alleged
24 violations, but such renewal license may be revoked if and when
25 the licensee or any of his servants, agents or employes are
26 convicted of or plead guilty to violations under the previous
27 license, as aforesaid, or if and when such previous license is
28 for any reason revoked.] In cases where a licensee or its
29 servants, agents or employes are arrested or charged with
30 violating any of the laws of this Commonwealth or if a licensee
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1 has one or more unadjudicated citations pending against the
2 licensee at the time a renewal application for the license is
3 pending before the board, the board may, in its discretion,
4 renew the license; however, the renewed license may be
5 subsequently revoked by the board if and when the licensee or
6 its servants, agents or employes are convicted of the pending
7 criminal charges or when the citation issued against the license
8 is adjudicated by the Office of Administrative Law Judge.
9 In the event [such] the renewal license is revoked by the
10 board, neither the license fee paid for [such] the license nor
11 any part thereof shall be returned to the licensee.
12 * * *
13 Section 7. Section 505.2 of the act, amended November 10,
14 1999 (P.L.514, No.47), December 9, 2002 (P.L.1653, No.212),
15 December 16, 2002 (P.L.1806, No.221) and July 17, 2003 (P.L.63,
16 No.15), is amended to read:
17 Section 505.2. Limited Wineries.--(a) In the interest of
18 promoting tourism and recreational development in Pennsylvania,
19 holders of a limited winery license may:
20 (1) Produce alcoholic ciders, wines and wine coolers,
21 subject to the exceptions provided under this section, only from
22 fruits grown in Pennsylvania.
23 (2) Sell alcoholic cider, wine and wine coolers produced by
24 the limited winery or purchased in bulk in bond from another
25 Pennsylvania limited winery on the licensed premises, under such
26 conditions and regulations as the board may enforce, to the
27 board, to individuals and to brewery, hotel, restaurant, club
28 and public service liquor licensees, and to Pennsylvania winery
29 licensees: Provided, That a limited winery shall not, in any
30 calendar year, purchase alcoholic cider or wine produced by
20040S1158B1740 - 14 -
1 other limited wineries in an amount in excess of fifty per
2 centum of the alcoholic cider or wine produced by the purchasing
3 limited winery in the preceding calendar year. In addition, the
4 holder of a limited winery license may purchase wine in bottles
5 from another Pennsylvania limited winery if these wines undergo
6 a second fermentation process. Such wine may be sold in bottles
7 bearing the purchasing limited winery's label or the producing
8 limited winery's label. Such wines, if sold by the board, may be
9 sold by the producing limited winery to the purchasing limited
10 winery at a price lower than the price charged by the board.
11 (3) Separately or in conjunction with other limited
12 wineries, sell alcoholic cider, wine and wine coolers produced
13 by the limited winery on no more than five (5) board-approved
14 locations other than the licensed premises, with no bottling or
15 production requirement at those additional board-approved
16 locations and under such conditions and regulations as the board
17 may enforce, to the board, to individuals and to brewery, hotel,
18 restaurant, club and public service liquor licensees. If two or
19 more limited wineries apply to operate an additional board-
20 approved location in conjunction with each other, the wineries
21 need only have one board-approved manager for the location, need
22 only pay one application fee and need not designate specific or
23 distinct areas for each winery's licensed area. Each limited
24 winery must file an application for such an additional board-
25 approved location, and such location shall count as one of the
26 five permitted for each limited winery. Each limited winery is
27 responsible for keeping only its own complete records. A limited
28 winery may be cited for a violation of the recordkeeping
29 requirements of sections 512 and 513 pertaining to its own
30 records only.
20040S1158B1740 - 15 -
1 (4) At the discretion of the board, obtain a special permit
2 to participate in alcoholic cider, wine and food expositions off
3 the licensed premises. A special permit shall be issued upon
4 proper application and payment of a fee of thirty dollars ($30)
5 per day for each day of permitted use, not to exceed five (5)
6 consecutive days. The total number of days for all the special
7 permits may not exceed forty (40) days in any calendar year. A
8 special permit shall entitle the holder to engage in the sale by
9 the glass, by the bottle or in case lots of alcoholic cider or
10 wine produced [by the bottle or in case lots] by the permittee
11 under the authority of a limited winery license. Holders of
12 special permits may provide tasting samples of wines in
13 individual portions not to exceed one fluid ounce. Samples at
14 alcoholic cider, wine and food expositions may be sold or
15 offered free of charge. Except as provided herein, limited
16 wineries utilizing special permits shall be governed by all
17 applicable provisions of this act as well as by all applicable
18 regulations or conditions adopted by the board.
19 For the purposes of this clause, "alcoholic cider, wine and
20 food expositions" are defined as affairs held indoors or
21 outdoors with the primary intent of educating those in
22 attendance of the availability, nature and quality of
23 Pennsylvania-produced alcoholic ciders and wines in conjunction
24 with suitable food displays, demonstrations and sales. Alcoholic
25 cider, wine and food expositions may also include activities
26 other than alcoholic cider, wine and food displays, including
27 arts and crafts, musical activities, cultural exhibits,
28 agricultural exhibits and similar activities.
29 (5) Apply for and hold a hotel liquor license, a restaurant
30 liquor license or a malt and brewed beverages retail license to
20040S1158B1740 - 16 -
1 sell for consumption at the restaurant or limited winery on the
2 licensed winery premises, liquor, wine and malt or brewed
3 beverages regardless of the place of manufacture under the same
4 conditions and regulations as any other hotel liquor license,
5 restaurant liquor license or malt and brewed beverages retail
6 license.
7 (6) (i) Secure a permit from the board to allow the holder
8 of a limited winery license to use up to twenty-five per centum
9 permitted fruit, not wine, in the current year's production.
10 Each permit is valid only for the calendar year in which it is
11 issued.
12 (ii) The fee for a permit to import and use permitted fruit
13 shall be in an amount to be determined by the board.
14 (iii) The purpose of this section is to increase the
15 productivity of limited wineries while at the same time
16 protecting the integrity and unique characteristics of wine
17 produced from fruit primarily grown in this Commonwealth.
18 Prevailing climatic conditions have a significant impact on the
19 character of the fruit. Accordingly, "permitted fruit" shall
20 mean fruit grown or juice derived from fruit grown within three
21 hundred fifty (350) miles of the winery.
22 (iv) The department is authorized to promulgate regulations
23 requiring the filing of periodic reports by limited wineries to
24 ensure compliance with the provisions of this section.
25 (v) This clause shall expire on December 31, 2004.
26 (6.1) Operate a restaurant on SELL FOOD FOR CONSUMPTION ON <--
27 OR OFF the licensed premises and sell by the glass only wine and
28 alcoholic ciders that may otherwise be sold by the bottle.
29 (6.2) SELL CANDLES ACQUIRED OR PRODUCED BY THE LIMITED <--
30 WINERY.
20040S1158B1740 - 17 -
1 [(7)] (b) The total production of alcoholic ciders, wine and
2 wine coolers by a limited winery may not exceed two hundred
3 thousand (200,000) gallons per year.
4 Section 8. This act shall take effect in 60 days.
F9L47BIL/20040S1158B1740 - 18 -