SENATEH1617B2737A07700 AMENDEDDMS:JMT PRIOR10/19/20 PRINTER'S#90 NOS.A07700 AMENDMENTS TO HOUSE BILL NO.

2101,1617 2737,Sponsor: 4544 PRINTER'S NO.

4572SENATOR THESTEFANO GENERALPrinter's ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

16172737 2019Amend INTRODUCEDBill, BYpage STAATS,1, CAUSER,line ROTHMAN,18, YOUNGBLOOD,by STEPHENS,inserting DOWLING,after RADER,"for" JAMES,interlocking PYLE,business OTTEN,prohibited, MALAGARI,for EVERETT,Amend MACKENZIE,Bill, SAINATO,page GAYDOS,1, JOZWIAK,line FARRY,19, IRVIN,by STRUZZIstriking ANDout WHEELAND, JUNE 11, 2019 AS AMENDED ON THIRD CONSIDERATION, IN SENATE, OCTOBER 20, 2020 AN ACT Amending the actperiod ofafter April"county" 12,and 1951inserting (P.L.90,and No.21),for entitledunlawful "Anacts actrelative relating to alcoholicliquor, liquors, alcohol and malt and brewed beverages;beverages and licensees.

amending,Amend revising,Bill, consolidatingpage and1, changinglines the22 lawsthrough relating24, thereto;by striking out all of said lines and inserting Section 1.

regulatingSection and411(e) restrictingof the manufacture,act purchase,of sale,April possession,12, consumption,1951 importation,(P.L.90, transportation,No.21), furnishing,known holdingas inthe bond,Liquor holdingCode, inis storage,amended traffic in and usethe ofsection alcoholicis liquors,amended alcoholby andadding malta andsubsection brewedto beveragesread: and the persons engaged or employed therein;

definingSection the411. powers and duties of the Pennsylvania Liquor Control Board;

providingInterlocking forBusiness theProhibited.--* payment* * (e) Except as herein provided, no hotel, restaurant, retail dispenser or club licensee, and no officer, director or stockholder, agent or employe of certainany licensesuch feeslicensee toshall in any wise be interested, directly or indirectly, in the respectives,ownership municipalitiesor andleasehold townships,of forany property or the abatementequipment of certainany nuisancesproperty and,or inany certainmortgage cases,lien foragainst searchthe andsame, seizureused withoutby warrant;a distributor, importing distributor, or by an importer or sacramental wine licensee, in the conduct of his business;

prescribingnor penaltiesshall 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 forfeitures;conducting, either in whole or in part, an establishment used in the conduct of his business.

providingThe forpurpose localof option,this section is to require a separation of the financial and repealingbusiness existinginterests laws,"between INmanufacturers <--and PRELIMINARYholders PROVISIONS,of FURTHERhotel PROVIDINGor FORrestaurant DEFINITIONS;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.

AND,But in generalview provisionsof applyingexisting economic conditions, nothing contained in this section shall be 2020/90DMS/HB1617A07700 - 1 - construed to bothprohibit liquorthe andownership maltof andproperty brewedor beverages,conflicting furtherinterest providingby fora INTERLOCKINGmanufacturer <--of BUSINESSany PROHIBITED,place FORoccupied BRANDby REGISTRATION,a FORlicensee limitingunder <--this numberarticle after the manufacturer has continuously owned and had a conflicting interest in such place for a period of retailat licensesleast five years prior to beJuly issuedeighteenth, inone eachthousand county.nine hundred thirty-five:

ANDProvided, <--however, FORThat UNLAWFULthis ACTSclause RELATIVEshall TOnot LIQUOR,prohibit MALTany ANDhotel, BREWEDrestaurant BEVERAGESor ANDclub LICENSEES.liquor licensee, or any officer, director or stockholder of any such licensee, from owning land or buildings which are leased to a holder of a retail dispenser's license or a manufacturer's license:

TheAnd, Generalprovided Assemblyfurther, 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 Commonwealthownership or leasehold of Pennsylvaniaany herebyproperty enactsor asthe follows: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:

SectionAnd, 1.provided further, That nothing contained in this section shall prohibit an officer or member of a licensed privately owned private golf course catering club from having an interest in a limited winery license:

SectionAnd, 461(c)provided further, That nothing contained in this section shall be construed to prohibit a member of the actgoverning board of Aprila 12,public 1951authority <--created (P.L.90,under No.21),subdivision (n) of Article XXIII of the act of August 9, 1955 (P.L.323, No.130), known as "The County Code," from having an interest in a distributor or importing distributor license notwithstanding the Liquorfact Code,that isthe amendedpublic byauthority addinghas an interest in one or more retail licenses or acts as a clauselandlord tofor read:one or more retail licenses:

SECTIONAnd, 1.provided further, That, nothing in this section may prohibit an employe of a hotel or restaurant licensee from guaranteeing any loans, or lending any moneys, providing credit or giving anything of value to a limited winery licensee or its officers, directors and shareholders, provided that the person also is not an officer of or does not have any interest in or exercise any control over any other licensed entity that engages in any sales to or from the licensee:

SECTIONAnd, 411(E)provided OFfurther, THEThat, ACTnotwithstanding OFany APRILother 12,provision 1951of <--this (P.L.90,section, NO.21),an KNOWNentity ASmay THEacquire LIQUORboth CODE,a ISmanufacturer's AMENDEDlicense ANDor THEa SECTIONlimited ISwinery AMENDEDlicense BYand ADDINGa Ahotel, SUBSECTIONrestaurant TOor READ:retail dispenser license for use at the same location and more than one location may be so licensed.

SECTIONAnd, 1.provided further, That, notwithstanding any other provision of this section, an entity licensed as a limited winery may hold and operate a restaurant liquor license at one of its additional, board-approved locations instead of at its primary location where manufacturing occurs.

THEThe DEFINITIONSlicenses OFand "ALCOHOLICa CIDER,"person's "FERMENTEDinterest <--in FRUITthe BEVERAGE,"licenses "MALTor ORin BREWEDthe BEVERAGES"entity ANDholding "MEAD"the INlicenses SECTIONshall 102not OFbe THEsubject ACTto OFthis APRILsection. 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, AMENDED OR ADDED JULY 2, 2019 (P.L.324, NO.45), ARE AMENDED TO READ:

SECTIONProvided 102.further, 2020/90DMS/HB1617A07700 - 2 - That, a person who is a holder of ten per centum (10%) or less of securities or other interests in a publicly or privately held domestic or foreign corporation, partnership, limited liability company or other form of legal entity owning a retail license shall not be deemed to possess a financial interest and is not subject to the provisions of this section, provided that the person is not an officer of, employe of or does not have any interest in or exercise any control over any other licensed entity that engages in any sales to or from the retail licensee in which the person holds the ten per centum (10%) or less interest.[:

DEFINITIONS.--THEAnd, FOLLOWINGprovided WORDSfurther, ORThat PHRASES,nothing UNLESSin THEthis CONTEXTsection CLEARLYshall INDICATESprohibit OTHERWISE,a SHALLperson HAVEwho THEhas MEANINGSan ASCRIBEDownership TOinterest THEMin INa THISlimited SECTION:winery license from being employed by an entity that holds a hotel, restaurant, eating place or club license if the person is not employed as alcohol service personnel or as manager.] (e.1) Nothing in subsection (e) shall prohibit any of the following:

*(1) * * "ALCOHOLIC CIDER" SHALL MEAN A BEVERAGEperson WHICHwho MAYhas CONTAINan CARBONATIONownership INinterest ANin AMOUNTa NOTlimited TOwinery EXCEEDlicense SIXfrom ANDbeing FOURemployed TENTHSby GRAMSan PERentity LITER,that PRODUCEDholds THROUGHa ALCOHOLIChotel, FERMENTATION,restaurant, WHICHeating ISplace PRIMARILYor DERIVEDclub FROMlicense APPLES,if APPLEthe JUICEperson CONCENTRATEis ANDnot WATERemployed ORas PEARS,alcohol PEARservice JUICEpersonnel CONCENTRATEor ANDas WATER,manager. CONSISTING OF AT LEAST ONE-HALF OF ONE PER CENTUM, BUT NOT GREATER THAN EIGHT AND ONE-HALF PER CENTUM, ALCOHOL BY VOLUME AND SOLD OR OFFERED FOR SALE AS ALCOHOLIC CIDER AND NOT AS A WINE[, A WINE PRODUCT] OR AS A SUBSTITUTE FOR WINE, IN BOTTLES, CASES, KEGS, CANS OR OTHER SUITABLE CONTAINERS OF THE TYPE USED FOR THE SALE OF MALT OR BREWED BEVERAGES IN THIS COMMONWEALTH.

*(2) * * "FERMENTED FRUIT BEVERAGE" SHALL MEAN A BEVERAGEperson WHICHwho MAYhas CONTAINan CARBONATIONownership INinterest ANin AMOUNTa NOTbrewery TOlicense EXCEEDfrom SIXbeing ANDemployed FOURby TENTHSan GRAMSentity PERthat LITER,holds PRODUCEDa THROUGHhotel, ALCOHOLICrestaurant, FERMENTATIONeating OFplace FRUIT,or FRUITclub JUICE,license FRUITif JUICEthe CONCENTRATEperson ANDhas WATERno WITHjob ORduties WITHOUTor FLAVORINGS,responsibilities CONSISTINGon, OFor ATconnected LEASTwith, ONE-HALFthe OFlicensed ONEpremises PERin 20190HB1617PN4572any -capacity. 2 - CENTUM, BUT NOT GREATER THAN EIGHT AND ONE-HALF PER CENTUM, ALCOHOL BY VOLUME AND SOLD OR OFFERED FOR SALE NOT AS A WINE[, A WINE PRODUCT] OR A SUBSTITUTE FOR WINE, IN BOTTLES, CASES, KEGS, CANS OR OTHER SUITABLE CONTAINERS OF THE TYPE USED FOR THE SALE OF MALT OR BREWED BEVERAGES IN THIS COMMONWEALTH.

* * * "MALTSection OR2. BREWED BEVERAGES" SHALL MEAN ANY BEER, LAGER BEER, ALE, PORTER OR SIMILAR FERMENTED MALT BEVERAGE CONTAINING ONE- HALF OF ONE PER CENTUM OR MORE OF ALCOHOL BY VOLUME, BY WHATEVER NAME SUCH BEVERAGE MAY BE CALLED, AND SHALL MEAN ALCOHOLIC CIDER, FERMENTED FRUIT BEVERAGE AND MEAD.

*Section *461(c) *of "MEAD"the SHALLact MEANis ANamended ALCOHOLICby BEVERAGEadding PRODUCEDa BYclause FERMENTINGto Aread: SOLUTION OF AT LEAST FIFTY-ONE PER CENTUM HONEY, WATER AND OTHER AGRICULTURAL PRODUCTS AND CONTAINING NOT MORE THAN EIGHT AND ONE-HALF PER CENTUM ALCOHOL BY VOLUME AND SOLD OR OFFERED FOR SALE AS MEAD AND NOT AS A WINE[, A WINE PRODUCT] OR AS A SUBSTITUTE FOR WINE, IN BOTTLES, CASES, KEGS, CANS OR OTHER SUITABLE CONTAINERS OF THE TYPE USED FOR THE SALE OF MALT OR BREWED BEVERAGES IN THIS COMMONWEALTH.

*Amend *Bill, *page SECTION3, 1.1.by inserting between lines 8 and 9 Section 3.

SECTIONSection 411(E)493(11) OFof THEthe ACTact ISis AMENDEDamended ANDto THEread: SECTION IS AMENDED BY ADDING SUBSECTION TO READ:

SECTIONSection 411.493.

INTERLOCKINGUnlawful BUSINESSActs PROHIBITED.--*Relative *to *Liquor, (E)Malt EXCEPTand ASBrewed HEREINBeverages PROVIDED,and NOLicensees.--The HOTEL,term RESTAURANT,"licensee," RETAILwhen DISPENSERused ORin CLUBthis LICENSEE,section, ANDshall NOmean OFFICER,those DIRECTORpersons ORlicensed STOCKHOLDER,under AGENTthe ORprovisions EMPLOYEof OFArticle ANYIV, SUCHunless LICENSEEthe SHALLcontext INclearly ANYindicates WISEotherwise. 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, 20190HB1617PN4572 - 3 - IMPORTING DISTRIBUTOR, OR BY AN IMPORTER OR SACRAMENTAL WINE LICENSEE, IN THE CONDUCT OF HIS BUSINESS;

NORIt SHALLshall ANYbe HOTEL,unlawful-- RESTAURANT,* RETAIL* DISPENSER* OR(11) CLUBLicensees LICENSEE,Employed ORby ANYOthers. 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.

THEFor PURPOSEany OFhotel, THISrestaurant SECTIONor ISclub TOliquor REQUIRElicensee, Aor SEPARATIONany OFmalt THEor FINANCIALbrewed ANDbeverage BUSINESSlicensee, INTERESTSor BETWEENany MANUFACTURERSofficer, ANDservant, HOLDERSagent OFor HOTELemploye ORof RESTAURANTsuch LIQUORlicensee, LICENSESto AND,be ASat HEREINthe PROVIDED,same OFtime CLUBemployed, LICENSES,directly ISSUEDor UNDERindirectly, THISby ARTICLE,any ANDdistributor, NOimporting PERSONdistributor, SHALL,manufacturer, BYimporter ANYor DEVICEvendor WHATSOEVER,licensee DIRECTLYor ORany INDIRECTLY,out EVADEof THEState PROVISIONSmanufacturer. OF THE SECTION.

BUTIt INshall VIEWalso OFbe EXISTINGunlawful ECONOMICfor CONDITIONS,any NOTHINGdistributor CONTAINEDor INimporting THISdistributor, SECTIONor SHALLany BEofficer, CONSTRUEDservant, TOagent PROHIBITor THEemploye OWNERSHIPof OFsuch PROPERTYlicensee, ORto CONFLICTINGbe INTERESTat BYthe Asame MANUFACTURERtime OFemployed, ANYdirectly PLACEor OCCUPIEDindirectly, BYby Aany LICENSEEother UNDERdistributor, THISimporting ARTICLEdistributor, AFTER2020/90DMS/HB1617A07700 THE- MANUFACTURER3 HAS- CONTINUOUSLYmanufacturer, OWNEDimporter, ANDvendor, HADout Aof CONFLICTINGState INTERESTmanufacturer, INhotel SUCHrestaurant, PLACEmalt FORor Abrewed PERIODbeverage OFlicensee, ATor LEASTclub FIVEliquor YEARSlicensee. PRIOR TO JULY EIGHTEENTH, ONE THOUSAND NINE HUNDRED THIRTY-FIVE:

PROVIDED,It HOWEVER,shall THATalso THISbe CLAUSEunlawful SHALLfor NOTany PROHIBITmanufacturer, ANYimporter, HOTEL,or RESTAURANTvendor ORlicensee, CLUBor LIQUORany LICENSEE,out ORof ANYState OFFICER,manufacturer, DIRECTORor ORany STOCKHOLDERofficer, OFservant, ANYagent SUCHor LICENSEE,employe FROMof OWNINGsuch LANDlicensee ORor BUILDINGSmanufacturer, WHICHto AREbe LEASEDat TOthe Asame HOLDERtime OFemployed, Adirectly RETAILor DISPENSER'Sindirectly, LICENSEby ORany Ahotel, MANUFACTURER'Srestaurant LICENSE:or club liquor licensee or any malt or brewed beverage licensee or any distributor or importing distributor licensee.

AND,Nothing PROVIDEDin FURTHER,this THATsubsection NOTHINGshall CONTAINEDbe INconstrued THISto SECTIONprohibit SHALLa BEmanufacturer CONSTRUEDor TOlimited PROHIBITwinery ANYlicensee, HOTEL,or RESTAURANT,any RETAILofficer, DISPENSERservant, ORagent CLUBor LICENSEEemploye ORof ANYsuch OFFICER,licensee, DIRECTORto ORbe STOCKHOLDER,employed AGENTat 20190HB1617PN4572the -same 4time -by ORa EMPLOYEhotel, OFrestaurant ANYor SUCHretail LICENSEEdispenser FROMlicensee HAVINGif Athe FINANCIALhotel, ORrestaurant OTHERor INTEREST,retail DIRECTLYdispenser ORlicensee INDIRECTLYis INlocated THEat OWNERSHIPthe ORmanufacturer LEASEHOLDor OFlimited ANYwinery PROPERTYpremises ORpursuant THEto EQUIPMENTsection OF443. 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,For PROVIDEDthe FURTHER,purposes THATof NOTHINGthis CONTAINEDsubsection, INan THISofficer, SECTIONservant, SHALLagent PROHIBITor ANemploye OFFICERof ORa MEMBERlicensee OFor Amanufacturer LICENSEDis PRIVATELYan OWNEDindividual PRIVATEwho GOLFhas COURSEeither CATERINGan CLUBownership FROMinterest HAVINGin ANthe INTERESTlicensee INor Amanufacturer LIMITEDor WINERYwho LICENSE:receives compensation for his or her work on behalf of the licensee or manufacturer:

AND,Provided PROVIDEDfurther, FURTHER,That THATnothing NOTHINGin CONTAINEDthis INsection THISshall SECTIONprohibit SHALLa BEperson CONSTRUEDwho TOhas PROHIBITan Aownership MEMBERinterest OFin THEa GOVERNINGlimited BOARDwinery OFlicense Afrom PUBLICbeing AUTHORITYemployed CREATEDby UNDERan SUBDIVISIONentity (N)that OFholds ARTICLEa XXIIIhotel, OFrestaurant, THEeating ACTplace OFor AUGUSTclub 9,license 1955if (P.L.323,the NO.130),person KNOWNis ASnot "THEemployed COUNTYas CODE,"alcohol FROMservice HAVINGpersonnel ANor INTERESTas INa Amanager[.]: DISTRIBUTOR OR IMPORTING DISTRIBUTOR LICENSE NOTWITHSTANDING THE FACT THAT THE PUBLIC AUTHORITY HAS AN INTEREST IN ONE OR MORE RETAIL LICENSES OR ACTS AS A LANDLORD FOR ONE OR MORE RETAIL LICENSES:

AND,And, PROVIDEDprovided FURTHER,further, THAT,That NOTHINGnothing INin THISthis SECTIONsection MAYshall PROHIBITprohibit ANa EMPLOYEperson OFwho Ahas HOTELan ORownership RESTAURANTinterest LICENSEEin FROMa GUARANTEEINGbrewery ANYlicense LOANS,from ORbeing LENDINGemployed ANYby MONEYS,an PROVIDINGentity CREDITthat ORholds GIVINGa ANYTHINGhotel, OFrestaurant, VALUEeating TOplace Aor LIMITEDclub WINERYlicense LICENSEEif ORthe ITSperson OFFICERS,has DIRECTORSno ANDjob SHAREHOLDERS,duties PROVIDEDor THATresponsibilities THEon, PERSONor ALSOconnected ISwith, NOTthe ANlicensed OFFICERpremises OFin ORany DOEScapacity. NOT HAVE ANY INTEREST IN OR EXERCISE ANY CONTROL OVER ANY OTHER LICENSED ENTITY THAT ENGAGES IN ANY SALES TO OR FROM THE LICENSEE:

AND,* PROVIDED* FURTHER,* THAT,Amend NOTWITHSTANDINGBill, ANYpage OTHER3, PROVISIONline OF9, THISby SECTION,striking ANout ENTITY"2" MAYand ACQUIREinserting BOTH4 A2020/90DMS/HB1617A07700 MANUFACTURER'S LICENSE OR A LIMITED WINERY LICENSE AND A HOTEL, RESTAURANT OR RETAIL DISPENSER LICENSE FOR 20190HB1617PN4572 - 54 - USE AT THE SAME LOCATION AND MORE THAN ONE LOCATION MAY BE SO LICENSED.

AND, PROVIDED FURTHER, THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN ENTITY LICENSED AS A LIMITED WINERY MAY HOLD AND OPERATE A RESTAURANT LIQUOR LICENSE AT ONE OF ITS ADDITIONAL, BOARD-APPROVED LOCATIONS INSTEAD OF AT ITS PRIMARY LOCATION WHERE MANUFACTURING OCCURS.

THE LICENSES AND A PERSON'S INTEREST IN THE LICENSES OR IN THE ENTITY HOLDING THE LICENSES SHALL NOT BE SUBJECT TO THIS SECTION.