ude the Chem. I ed simi 934, he follow hall be a ng treat the app5, with th ICKES y of the i AMENDING ALCOHOLIC BEVERAGE CONTROL ACT MAY 10, 1935.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed the Mr. PALMISANO, from the Committee on the District of Columbia, submitted the following REPORT [To accompany H. R. 6510] The Committee on the District of Columbia, to whom was referred the bill (H. R. 6510) to amend an act entitled "An Act to control the manufacture, transportation, possession, and sale of alcoholic beverages in the District of Columbia", having considered the same, report it back to the House with the following amendments and recommend that the amendments be agreed to and the bill do pass. On page 2, line 13, insert "SEC. 6" at the beginning of the paragraph before the words "The right". On page 3, line 9, insert the words "receivers or other representatives of a court" after the word "thereof,”. On page 3, line 11, insert the word "such" between the words "have" and "other". On page 4, line 14, strike out the word "beverage", and insert in lieu thereof the word "nonbeverage". On page 9, line 7, insert the words "SEC. 17" at the beginning of the paragraph, before the words "if any licensee". On page 12, line 17, insert the words "SEC. 25" at the beginning of the paragraph, before the words "No licensee". On page 13, line 7, change the two commas in that line to semicolons. On page 13, line 10, change the comma at the end of that line to & semicolon. The bill is further amended by the addition of four new sections, namely, sections 16, 17, 18, and 19: SEC. 16. That section 18 of the said Act is amended to read as follows: "SEC. 18. If any manufacturer of beverages, whether licensed hereunder or not, by direct ownership, stock ownership, interlocking directors, mortgage, or lien, or by any other means shall have such a substantial interest, whether direct or indirect, in the business of any wholesale or retail licensee or in the premises on which said business is conducted as in the judgment of the Board may tend to influence such licensee to purchase beverages from such manufacturer, the Board may, in its discretion, revoke the license issued in respect of the business in which such manufacturer is interested, subject to review by the Commissioners as herein provided. No such manufacturer of beverages shall loan or give any money to any wholesale or retail licensee or sell, rent, loan, or give to such licensee any equipment, furniture, fixtures, or property, or give or sell any service to such licensee: Provided, however, That with the prior approval of the Board, a manufacturer may sell, give, rent, or loan to a wholesale or retail licensee any service or article of property costing such manufacturer not more than $10. No wholesale or retail licensee shall receive or accept any loan or gift of money from any such manufacturer or purchase from, rent from, borrow, or receive by gift from such manufacturer any equipment, furniture, fixtures, or property, or accept or receive any service from such manufacturer: Provided, however, That, with the prior approval of the Board, a wholesale or retail licensee may purchase from, rent from, borrow, or receive by gift from such manufacturer any service or article of property costing such manufacturer not more than $10. Nothing herein contained, however, shall prohibit the sale of alcoholic and nonalcoholic beverages and the reasonable extension of credit therefor by a manufacturer to a wholesale or retail licensee. When used in this section the word "manufacturer" shall include any stockholder holding directly or indirectly 25 per centum or more of the common stock or any officer of a manufacturer of beverages, if a corporation, whether licensed hereunder or not. This section shall not apply to retail licenses, class E, or to the wholesale license held by a person not licensed as a manufacturer hereunder owning an establishment for the manufacture of beverages outside of the District of Columbia." SEC. 17. That section 19 of the said Act is amended to read as follows: "SEC. 19. If any wholesaler of beverages, whether licensed hereunder or not, by direct ownership, stock ownership, interlocking directors, mortgage, or lien, or by any other means shall have such a substantial interest either direct or indirect in the business of any retail licensee or in the premises on which said business is conducted as in the judgment of the Board may tend to influence such licensee to purchase beverages from such wholesaler, the Board may, in its discretion, revoke the license issued in respect of the business in which such wholesaler is interested, subject to review by the Commissioners as herein provided. No such wholesaler of beverages shall lend or give any money to any retail licensee or sell to such licensee, any equipment, furniture, fixtures, or property, except merchandise sold at the fair market value for resale by such licensee, or rent, loan, or give to such licensee any equipment, furniture, fixtures, or property, or give or sell any service to such licensee: Provided, however, That with the prior approval of the Board, a wholesaler may sell, give, rent, or loan to such licensee any service or article or property costing such wholesaler not more than $10. No retail licensee shall receive or accept any loan or gift of money from such wholesaler or purchase from any such wholesaler any equipment, furniture, fixtures, or property, except merchandise purchased at the fair market value for resale, or rent from, borrow, or receive by gift from such wholesaler any equipment, furniture, fixtures, or property, or receive any service from such wholesaler: Provided, however. That with the prior approval of the Board, a retail licensee may purchase from, rent from, borrow, or receive by gift from such wholesaler any service or article of property costing such wholesaler not more than $10. Nothing herein contained, however, shall prohibit the reasonable extension of credit by a wholesaler for merchandise sold to a retail licensee for resale as herein permitted. When used in this section the word "wholesaler" shall include any stockholder holding directly or indirectly 25 per centum or more of the common stock or any officer of a wholesaler of beverages, if a corporation, whether licensed hereunder or not. This section shall not apply to retail licenses, class E." SEC. 18. That section 23 of the said Act is amended by striking therefrom the words "35 cents" immediately preceding the words "for every wine gallon of wine", and inserting in lieu thereof the words "10 cents". SEC. 19. That section 25 of the said Act is amended to read as follows: "SEC. 25. No licensee under this Act shall allow any person who has, within ten years prior thereto, been convicted of any felony, to sell, give, furnish, or distribute any beverage, nor allow any minor under the age of twenty-one years of age, to sell, give, furnish, or distribute any beverage, except beer, or any minor under the age of eighteen years of age to sell, give, furnish, or distribute beer." In compliance with paragraph 2a of rule XIII of the rules of the House of Representatives, changes in existing law are shown as follows: Subsection (c) of section 3 of the act entitled "An act to control the manufacture, transportation, possession, and sale of alcoholic beverages in the District of Columbia" reads as follows: (c) The word "wine" means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling, artificially carbonated and fortified wine. No other product obtained by the fermentation of the natural sugar content of fruits or other agricultural products containing sugar shall be called "wine" unless designated by the appropriate prefix descriptions of the fruit or other product from which the same was predominently produced, or as artificial or imitation wine. Light wines shall mean wines containing 14 per centum or less of alcohol by volume, other than champagne. And is amended by adding at the end thereof the following sentence: The word "champagne” means any effervescent wine. Subsection (q) of section 3 reads as follows: (q) The word "tavern" means a suitable space in a suitable building approved by the Board, including such suitable space outside of the building and adjoining it, as may be approved by the Board, kept, used, maintained, advertised, or held out to the public to be a place where sandwiches or light lunches are prepared and served for consumption on the premises in such quantities as to satisfy the Board that the sale of beer intended is no more than an incident to and is not the prime source of revenue of such "tavern.” And is amended to read: (q) The word "tavern" means a suitable space in a suitable building approved by the Board, including such suitable space outside of the building and adjoining it, as may be approved by the Board, kept, used, maintained, advertised, or held out to the public to be a place where sandwiches or light lunches are prepared and served for consumption on the premises in such quantities as to satisfy the Board that the sale of beer and light wines intended is no more than an incident to and not the prime source of revenue of such "tavern." Section 6 of said act reads as follows: SEC. 6. The right, power, and jurisdiction to issue, transfer, and revoke all licenses under this Act shall be vested solely in the Board, and the action of the Board on any question of fact shall be final and conclusive; except that, in case a license is revoked by the Board, the licensee may, within ten days after the order of revocation is entered, appeal in writing to the Commissioners to review said action of the Board, the hearings on said appeal to be submitted either orally or in writing at the discretion of the Commissioners, and the Commissioners shall not be required to take evidence, either oral, written, or documentary. The decision of the Commissioners on any question of fact involved in such appeal shall be final and conclusive. Pending such appeal the license shall stand suspended unless the Commissioners shall otherwise order. Said Board shall have such other authority and perform such other duties as the Commissioners may, by regulation, prescribe. And is amended to read: The right, power, and jurisdiction to issue, transfer, revoke, and suspend all licenses under this Act shall be vested solely in the Board, and the action of the Board on any question of fact shall be final and conclusive; except that, in case a license is revoked or is suspended for a period of more than thirty days by the Board, the licensee may, within ten days after the order of revocation, or the order of suspension for a period of more than thirty days is entered, appeal in writing to the Commissioners to review said action of the Board, the hearings on said appeal to be submitted either orally or in writing at the discretion of the Commissioners, and the Commissioners shall not be required to take evidence, either oral, written, or documentary. The decision of the Commissioners on any question of fact involved in such appeal shall be final and conclusive. Pending such appeal the license shall stand suspended unless the Commissioners shall otherwise order. That the right and power be vested in the Board, for good cause shown, to issue permits for the sales of stocks of beverages located in the District of Columbia by individuals, corporations or associations, partnerships, executors, administrators, being owners thereof, to persons licensed under this Act. Said Board shall have other authority and perform such other duties as the Commissioners may, by regulation, prescribe. Subsection (a) of section 11 of said act reads as follows: (a) MANUFACTURER'S LICENSE, CLASS A.-To operate a rectifying plant, a distillery, or a winery. Such a license shall authorize the holder thereof to operate a rectifying plant for the manufacture of the products of rectification by purifying or combining alcohol, spirits, wine, or beer; a distillery for the manufacture of alcohol or spirits by distillation or redistillation; or a winery for the manufacture of wine; at the place therein described, but such license shall not authorize more than one of said activities, namely, that of a rectifying plant, a distillery or a winery, and a separate license shall be required for each such plant. Such a license shall also authorize the sale from the licensed place of the products manufactured under such license by the licensee to another license holder for resale or to a dealer outside of the District of Columbia for resale. It shall not authorize the sale of beverages to any other person except as may be provided by regulations promulgated by the Commissioners under this Act. The annual fee for such license for a rectifying plant shall be $3,500; for a distillery shall be $3,500; and for a winery shall be $500: Provided, however, That if a manufacturer shall operate a distillery only for the manufacture of alcohol and more than 50 per centum of such alcohol is sold for nonbeverage purposes, the annual fee shall be $1,000. If said manufacturer holding a license issued at the rate last mentioned shall sell during any license period 50 per centum or more of said alcohol for beverage purposes, he shall pay to the Collector of Taxes the difference between the license fee paid and the license fee for a distiller of spirits. And is amended to read: (a) MANUFACTURERS' LICENSE, CLASS A.-To operate a rectifying plant, a distillery, or a winery. Such a license shall authorize the holder thereof to operate a rectifying plant for the manufacture of the products of rectification by purifying or combining alcohol, spirits, wine, or beer; a distillery for the manufacture of alcohol or spirits by distillation or redistillation; or a winery for the manufacture of wine; at the place therein described, but such license shall not authorize more than one of said activities, namely, that of a rectifying plant, a distillery, or a winery, and a separate license shall be required for each such plant. Such a license shall also authorize the sale from the licensed place of the products manufactured under such license by the licensee to another license holder under this Act for resale or to a dealer licensed under the laws of any State or Territory of the United States for resale. It shall not authorize the sale of beverages to any other person except as may be provided by regulations promulgated by the Commissioners under this Act. The annual fee for such license for a rectifying plant shall be $3,500; for a distillery shall be $3,500; and for a winery shall be $500: Provided, however, That if a manufacturer shall operate a distillery only for the manufacture of alcohol and more than 50 per centum of such alcohol is sold for beverage purposes, the annual fee shall be $1,000. If said manufacturer holding a license issued at the rate last mentioned shall sell during any license period 30 per centum or more of said alcohol for beverage purposes, he shall pay to the Collector of Taxes the difference between the license fee paid and the license fee for a distiller of spirits. Subsection (b) of section 11 of said act reads as follows: (b) MANUFACTURER'S LICENSE, CLASS B.-To operate brewery. Such a license shall authorize the holder thereof to operate a brewery for the manufacture of beer at the place therein described. It shall also authorize the sale from the licensed place of the beer manufactured under such license to another license holder for resale or to a dealer outside of the District of Columbia for resale, or to a consumer. Said manufacturer may sell beer to the consumer only in barrels, kegs, and sealed bottles, and said barrels, kegs, and bottles shall not be opened after sale, nor the contents consumed, on the premises where sold. The annual fee for such license shall be $2,500. And is amended to read: (b) MANUFACTURERS' LICENSE, CLASS B.-To operate a brewery. Such a license shall authorize the holder thereof to operate a brewery for the manufacture of beer at the place therein described. It shall also authorize the sale from the licensed place of the beer manufactured under such license to another license holder under this Act for resale or to a dealer licensed under the laws of any State or Territory of the United States for resale, or to a consumer. Said manufacturer may sell beer to the consumer only in barrels, kegs, and sealed bottles and said barrels, kegs, and bottles shall not be opened after sale, nor the contents consumed, on the premises where sold. The annual fee for such license shall be $2,500. Subsection (c) of section 11 of said act reads as follows: (c) WHOLESALERS' LICENSE, CLASS A.-Such a license shall authorize the holder thereof to sell beverages from the place therein described to another license holder for resale or to a dealer outside of the District of Columbia for resale and, in addition, in the case of beer or light wines, to a consumer, said beverages to be sold only in barrels, kegs, sealed bottles, and other closed containers, which said barrels, kegs, sealed bottles, and other closed containers shall not be opened after sale, nor the contents consumed, on the premises where sold. No holder of such a license except a wholesale druggist or a wholesale grocer shall be engaged in any business on the premises for which the license is issued other than the sale of alcoholic and nonalcoholic beverages. The annual fee for such license shall be $1,500. And is amended to read: (c) WHOLESALERS' LICENSE, CLASS A.-Such a license shall authorize the holder thereof to sell beverages from the place therein described to another license holder under this Act for resale or to a dealer licensed under the laws of any State or Territory of the United States for resale, and, in addition, in the case of beer or light wines, to a consumer, said beverages to be sold only in barrels, kegs, sealed bottles, and other closed containers, which said barrels, kegs, sealed bottles, and other closed containers shall not be opened after sale, nor the contents consumed, on the premises where sold, It shall not authorize the sale of beverages to any other person except as may be provided by regulations promulgated by the Commissioners under this Act. No holder of such a license except a wholesale druggist or a wholesale grocer shall be engaged in any business on the premises for which the license is issued other than the sale of alcoholic and nonalcoholic beverages. The annual fee for such license shall be $1,500. Subsection (d) of section 11 of said act reads as follows: (d) WHOLESALER'S LICENSE, CLASS B.-Such a license shall authorize the holder thereof to sell beer and light wines from the place therein described to another license holder for resale or to a dealer outside of the District of Columbia for resale or to a consumer in barrels, kegs, sealed bottles, and other closed containers, which said barrels, kegs, sealed bottles, and other closed containers shall not be opened after sale nor the contents consumed on the premises where sold. The annual fee for such license shall be $750. And is amended to read: (d) WHOLESALERS' LICENSE, CLASS B.-Such a license shall authorize the holder thereof to sell beer and light wines from the place therein described to another license holder under this Act for resale or to a dealer licensed under the laws of any State or Territory of the United States for resale, or to a consumer in barrels, kegs, sealed bottles, and other closed containers, which said barrels, kegs, sealed bottles, and other closed containers shall not be opened after sale nor the contents consumed on the premises where sold. The annual fee for such license shall be $750. Subsection (h) of section 11 of said act reads as follows: (h) RETAILER'S LICENSE, CLASS D.-Such a license shall be issued only for a bona fide restaurant, tavern, hotel, or club, or a passenger-carrying marine vessel serving meals, light lunches, or sandwiches, or a club car or a dining car on a railroad. Such a license shall authorize the holder thereof to sell beer and light wines at the place therein described for consumption only in said place. H. Repts., 74-1, vol. 2-47 |