SENATE AMENDED
        PRIOR PRINTER'S NOS. 257, 1120, 1161          PRINTER'S NO. 1639

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 224 Session of 1983


        INTRODUCED BY O'DONNELL, WAMBACH, ALDERETTE, HALUSKA, MICOZZIE,
           WOGAN, COY, KOSINSKI, STUBAN, PERZEL, VAN HORNE, PISTELLA,
           FARGO, VROON, CLYMER, LAUGHLIN, MILLER, CIVERA, FREIND,
           PRESTON, HARPER, MAYERNIK, JOHNSON, McINTYRE, MRKONIC,
           WESTON, WIGGINS, EVANS, CARN AND LEVIN, FEBRUARY 15, 1983

        AS AMENDED ON SECOND CONSIDERATION, IN SENATE, JULY 18, 1983

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
     2     act relating to alcoholic liquors, alcohol and malt and
     3     brewed beverages; amending, revising, consolidating and
     4     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 hearings on applications for new hotel
    18     and restaurant liquor licenses and the issuance of such
    19     licenses and for the surrender of club licenses; and
    20     requiring notices to certain municipalities.

    21     The General Assembly of the Commonwealth of Pennsylvania
    22  hereby enacts as follows:
    23     Section 1.  Section 402 of the act of April 12, 1951 (P.L.90,
    24  No.21), known as the Liquor Code, is amended to read:
    25     Section 402.  License Districts; License Year; Hearings.--(a)

     1  The board shall, by regulation, divide the State into convenient
     2  license districts and shall hold hearings on applications for
     3  licenses and renewals thereof, as it deems necessary, at a
     4  convenient place or places in each of said districts, at such
     5  times as it shall fix, by regulation, BUT IN NO EVENT MORE THAN   <--
     6  THIRTY DAYS AFTER THE DATE OF RECEIPT OF THE APPLICATION BY THE
     7  BOARD, for the purpose of hearing testimony for and against
     8  applications for new licenses and renewals thereof. THE BOARD     <--
     9  SHALL ACT UPON ALL APPLICATIONS FOR LICENSES AND RENEWALS
    10  THEREOF WITHIN SIXTY DAYS AFTER THE DATE OF RECEIPT THEREOF BY
    11  THE BOARD. SHOULD THE BOARD FAIL TO ACT WITHIN SUCH SIXTY-DAY
    12  PERIOD, THE APPLICATION FOR LICENSE OR RENEWAL SHALL BE DEEMED
    13  TO HAVE BEEN APPROVED. The board may provide for the holding of
    14  such hearings by examiners learned in the law, to be appointed
    15  by the Governor, who shall not be subject to the "Civil Service
    16  Act." Such examiners shall make report to the board in each case
    17  with their recommendations. The board shall, by regulation, fix
    18  the license year for each separate district so that the
    19  expiration dates shall be uniform in each of the several
    20  districts but staggered as to the State.
    21     (b)  Where a hearing is held in the case of an application
    22  for a new hotel or restaurant liquor license or an application
    23  for the transfer of a hotel or restaurant liquor license or when
    24  the board is considering the renewal, suspension or revocation
    25  of a license after the premises have been cited as AND FOUND TO   <--
    26  BE a public nuisance BY A COURT OF COMPETENT JURISDICTION         <--
    27  pursuant to section 611, the board shall permit inhabitants of    <--
    28  the neighborhood within a radius of one thousand feet of the
    29  place proposed to be licensed to testify at the hearings. The
    30  board and any hearing officer thereof shall give substantial
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     1  weight to any testimony of such inhabitants given in connection
     2  with a public hearing. Decisions on applications shall conform
     3  to the preponderance of the evidence presented. INHABITANTS OF    <--
     4  THE MUNICIPALITY WITHIN WHICH THE PREMISES IS LOCATED WHO RESIDE
     5  WITHIN ONE THOUSAND FEET OF THE PLACE PROPOSED TO BE LICENSED TO
     6  TESTIFY AT THE HEARING. WHEN THE PLACE PROPOSED TO BE LICENSED
     7  IS LOCATED ON THE BORDER OF TWO MUNICIPALITIES, THE BOARD SHALL
     8  PERMIT INHABITANTS OF THE BORDERING MUNICIPALITY WHO RESIDE
     9  WITHIN FIVE HUNDRED FEET OF THE PLACE PROPOSED TO BE LICENSED TO
    10  TESTIFY AT THE HEARING.
    11     Section 2.  Section 403(g) of the act, amended November 19,
    12  1959 (P.L.1546, No.553), is amended to read:
    13     Section 403.  Applications for Hotel, Restaurant and Club
    14  Liquor Licenses.--* * *
    15     (g)  Every applicant for a new license or for the transfer of
    16  an existing license to another premises not then licensed shall
    17  post, for a period of at least fifteen days beginning with the
    18  day the application is filed with the board, in a conspicuous
    19  place on the outside of the premises or at the proposed new
    20  location for which the license is applied, a notice of such
    21  application, in such form, of such size, and containing such
    22  provisions as the board may require by its regulations.
    23  Simultaneous with posting of the notice of such application, the
    24  applicant shall send notice of the application to the governing
    25  body of the municipality in which the premises or proposed new
    26  location is located by certified mail, return receipt requested.
    27  Proof of the posting of such notice and mailing of notice to the
    28  municipality shall be filed with the board. Notwithstanding any
    29  other provision of law, the board shall take no action on an
    30  application until at least fifteen days have elapsed from the
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     1  date of receipt of notice by the municipality.
     2     * * *
     3     Section 3.  Section 404 of the act, amended September 2, 1971
     4  (P.L.429, No.103), is amended to read:
     5     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
     6  Licenses.--Upon receipt of the application, the proper fees and
     7  bond, and upon being satisfied of the truth of the statements in
     8  the application that the applicant is the only person in any
     9  manner pecuniarily interested in the business so asked to be
    10  licensed and that no other person will be in any manner
    11  pecuniarily interested therein during the continuance of the
    12  license, except as hereinafter permitted, and that the applicant
    13  is a person of good repute, that the premises applied for meet
    14  all the requirements of this act and the regulations of the
    15  board, that the applicant seeks a license for a hotel,
    16  restaurant or club, as defined in this act, and that the
    17  issuance of such license is not prohibited by any of the
    18  provisions of this act, the board shall, in the case of a hotel
    19  or restaurant, grant and issue to the applicant a liquor
    20  license, and in the case of a club may, in its discretion, issue
    21  or refuse a license: Provided, however, That in the case of any
    22  new license or the transfer of any license to a new location the
    23  board may, in its discretion, grant or refuse such new license
    24  or transfer if such place proposed to be licensed is within
    25  three hundred feet of any church, hospital, charitable
    26  institution, school, or public playground, or if such new
    27  license or transfer is applied for a place which is within two
    28  hundred feet of any other premises which is licensed by the
    29  board, or if such new license or transfer is applied for a place
    30  where the principal business is the sale of liquid fuels and
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     1  oil: And provided further, That the board shall refuse any
     2  application for a new license or the transfer of any license to
     3  a new location if, in the board's opinion, such new license or
     4  transfer would be detrimental to the welfare, health, peace and
     5  morals of the inhabitants of the neighborhood within a radius of
     6  [five hundred] one thousand feet of the place proposed to be
     7  licensed: And provided further, That the board shall not issue
     8  new licenses in any license district more than twice each
     9  license year, effective from specific dates fixed by the board,
    10  and new licenses shall not be granted, except for hotels as
    11  defined in this act, unless the application therefor shall have
    12  been filed at least thirty days before the effective date of the
    13  license: And provided further, That nothing herein contained
    14  shall prohibit the board from issuing a new license for the
    15  balance of any unexpired term in any license district to any
    16  applicant in such district, who shall have become eligible to
    17  hold such license as the result of legislative enactment, when
    18  such enactment shall have taken place during the license term of
    19  that district for which application is made or within the thirty
    20  days immediately preceding such term, nor shall anything herein
    21  contained prohibit the board from issuing at any time a new
    22  license for an airport restaurant, or municipal golf course, as
    23  defined in section 461 of this act, for the balance of the
    24  unexpired license term in any license district: And provided
    25  further, That the board shall have the discretion to refuse a
    26  license to any person or to any corporation, partnership or
    27  association if such person, or any officer or director of such
    28  corporation, or any member or partner of such partnership or
    29  association shall have been convicted or found guilty of a
    30  felony within a period of five years immediately preceding the
    19830H0224B1639                  - 5 -

     1  date of application for the said license.
     2     Section 4.  Section 471 of the act, amended January 13, 1966
     3  (1965 P.L.1301, No.518) and repealed in part June 3, 1971
     4  (P.L.118, No.6), is amended to read:
     5     Section 471.  Revocation and Suspension of Licenses; Fines.--
     6  (a)  Upon learning of any violation of this act or any laws of
     7  this Commonwealth relating to liquor, alcohol or malt or brewed
     8  beverages, or of any regulations of the board adopted pursuant
     9  to such laws, of any violation of any laws of this Commonwealth
    10  or of the United States of America relating to the tax-payment
    11  of liquor or malt or brewed beverages by any licensee within the
    12  scope of this article, his officers, servants, agents or
    13  employes, or upon any other sufficient cause shown, the board
    14  may, within one year from the date of such violation or cause
    15  appearing, cite such licensee to appear before it or its
    16  examiner, not less than ten nor more than sixty days from the
    17  date of sending such licensee, by registered mail, a notice
    18  addressed to him at his licensed premises, to show cause why
    19  such license should not be suspended or revoked or a fine
    20  imposed. The board shall also send a copy of the hearing notice
    21  to the municipality in which the premises is located.
    22     (b)  Hearings on such citations shall be held in the same
    23  manner as provided herein for hearings on applications for
    24  license. Upon such hearing, if satisfied that any such violation
    25  has occurred or for other sufficient cause, the board shall
    26  immediately suspend or revoke the license, or impose a fine of
    27  not less than fifty dollars ($50) nor more than one thousand
    28  dollars ($1,000), notifying the licensee by registered letter
    29  addressed to his licensed premises. In the event the fine is not
    30  paid within twenty days of the order the board shall suspend or
    19830H0224B1639                  - 6 -

     1  revoke the license, notifying the licensee by registered mail
     2  addressed to his licensed premises. Suspensions and revocations
     3  shall not go into effect until twenty days have elapsed from the
     4  date of notice of issuance of the board's order, during which
     5  time the licensee may take an appeal as provided for in this
     6  act. When a license is revoked, the licensee's bond may be
     7  forfeited by the board. Any licensee whose license is revoked
     8  shall be ineligible to have a license under this act until the
     9  expiration of three years from the date such license was
    10  revoked. In the event the board shall revoke a license, no
    11  license shall be granted for the premises or transferred to the
    12  premises in which the said license was conducted for a period of
    13  at least one year after the date of the revocation of the
    14  license conducted in the said premises, except in cases where
    15  the licensee or a member of his immediate family is not the
    16  owner of the premises, in which case the board may, in its
    17  discretion, issue or transfer a license within the said year. In
    18  all such cases, the board shall file of record at least a brief
    19  statement in the form of an opinion of the reasons for the
    20  ruling or order. In the event the person who was fined or whose
    21  license was suspended or revoked by the board shall feel
    22  aggrieved by the action of the board, he shall have the right to
    23  appeal to the court of quarter sessions or the county court of
    24  Allegheny County in the same manner as herein provided for
    25  appeals from refusals to grant licenses. Upon appeal, the court
    26  so appealed to shall, in the exercise of its discretion,
    27  sustain, reject, alter or modify the findings, conclusions and
    28  penalties of the board, based on the findings of fact and
    29  conclusions of law as found by the court. The aforesaid appeal
    30  shall act as a supersedeas unless upon sufficient cause shown
    19830H0224B1639                  - 7 -

     1  the court shall determine otherwise. No penalty provided by this
     2  section shall be imposed by the board or any court for any
     3  violations provided for in this act unless the enforcement
     4  officer or the board notifies the licensee of its nature and of
     5  the date of the alleged violation within ten days of the
     6  completion of the investigation which in no event shall exceed
     7  ninety days.
     8     (c)  If the violation in question is a third or subsequent
     9  violation of this act or [the act of June 24, 1939 (P.L.872),
    10  known as "The Penal Code,"] Title 18 of the Pennsylvania
    11  Consolidated Statutes (relating to crimes and offenses),
    12  occurring within a period of four years the board shall impose a
    13  suspension or revocation.
    14     (d)  The jurisdiction of the county court of Allegheny County
    15  conferred hereby shall be exclusive within the territorial
    16  limits of its jurisdiction.
    17     Section 5.  Section 474 of the act, added July 20, 1968
    18  (P.L.429, No.201), is amended to read:
    19     Section 474.  Surrender of Club Licenses for Benefit of
    20  Licensees.--[Whenever a club license has been returned to the
    21  board for the benefit of the licensee due to the licensed
    22  establishment not having been in operation for any reason
    23  whatsoever for a period of time not exceeding fifteen days, the
    24  license shall be held by the board for the benefit of the
    25  licensee for a period of time not exceeding one year, or, upon
    26  proper application to the board, for an additional year, and the
    27  license shall be revoked at the termination of the period, and
    28  transfer of the license shall not be permitted after the
    29  termination of the period.] (a)  Any club licensee whose
    30  licensed establishment is not in operation for a period of
    19830H0224B1639                  - 8 -

     1  fifteen consecutive days for any reason shall return its license
     2  and, if a liquor license, its wholesale purchase permit card, to
     3  the board not later than the expiration of the fifteen-day
     4  period. The return of such license and card will not invalidate
     5  the license, which will be held for the benefit of the licensee
     6  and be available for its use when operations are resumed at the
     7  licensed premises, or for transfer.
     8     (b)  Where the club license is returned because the licensee
     9  no longer has a lease for the licensed premises, or removes
    10  therefrom, or is dispossessed by legal process, the license will
    11  be invalidated as to the premises for which issued but will not
    12  be invalidated generally nor cancelled, and will be held for the
    13  benefit of the licensee for transfer only.
    14     (c)  Where the club license and wholesale liquor purchase
    15  permit card are not surrendered and returned voluntarily by the
    16  licensee, enforcement officers of the board will lift and return
    17  such license and card to the board.
    18     (d)  No club license surrendered to the board, nor any
    19  renewal thereof in possession of the board, will be held for the
    20  benefit of the licensee for a period exceeding one year from the
    21  date of surrender, except where, in the opinion of the board,
    22  circumstances beyond the control of the licensee prevent
    23  reactivation. The board shall reconsider the revocation of any
    24  such club license during the last five years to ascertain if
    25  circumstances beyond the control of the licensee prevented
    26  timely reactivation of the license. Failure of the licensee to
    27  lift the license and resume operation of the licensed business
    28  or to effect a transfer of the license within the one-year
    29  period may be sufficient cause for revocation of the license if
    30  timely reactivation was not due to circumstances beyond the
    19830H0224B1639                  - 9 -

     1  control of the licensee.
     2     (e)  In the case of any club license which is reactivated
     3  under this section, the board shall determine no sooner than
     4  eighteen months after such reactivation, and no later than
     5  twenty-four months after reactivation, that the club has
     6  actually resumed operation and is functioning in fact as a club
     7  as defined in section 102. If the board finds that the club is
     8  not so functioning the license shall be immediately revoked.
     9     Section 6.  This act shall take effect in 60 days.














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