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        PRIOR PRINTER'S NO. 3713                      PRINTER'S NO. 4608

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2574 Session of 2002


        INTRODUCED BY DONATUCCI, REINARD, LEDERER, MANDERINO, SATHER,
           THOMAS, CLYMER, MELIO, KELLER, JAMES, PISTELLA, CASORIO,
           SCRIMENTI, CORRIGAN, CREIGHTON, WASHINGTON, YOUNGBLOOD,
           SHANER, J. WILLIAMS, CRUZ, HORSEY, JOSEPHS AND ROEBUCK,
           APRIL 17, 2002

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           NOVEMBER 18, 2002

                                     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 WHEN SALES MAY BE MADE AT PENNSYLVANIA   <--
    18     LIQUOR STORES; AUTHORIZING TASTING OF ALCOHOLIC BEVERAGES IN
    19     PENNSYLVANIA LIQUOR STORES AND ON PREMISES OF DISTRIBUTORS
    20     AND IMPORTING DISTRIBUTORS; FURTHER PROVIDING FOR HOTEL,
    21     RESTAURANT AND CLUB LIQUOR LICENSES AND FOR MALT AND BREWED
    22     BEVERAGES RETAIL LICENSES; providing for the entering into
    23     agreement by the board and license applicants regarding the
    24     pending application; AUTHORIZING ISSUANCE OF CERTAIN MULTIPLE  <--
    25     PUBLIC VENUE LICENSES; FURTHER PROVIDING FOR REVOCATION AND
    26     SUSPENSION OF LICENSES AND FOR FINES; PROVIDING FOR THE
    27     SURRENDER OF A LICENSE FOR BENEFIT OF THE LICENSEE; AND
    28     FURTHER PROVIDING FOR UNLAWFUL ACTS RELATIVE TO LIQUOR, MALT
    29     AND BREWED BEVERAGES AND LICENSEES.

    30     The General Assembly of the Commonwealth of Pennsylvania

     1  hereby enacts as follows:
     2     Section 1.  Section 404 of the act of April 12, 1951 (P.L.90,  <--
     3  No.21), known as the Liquor Code, reenacted and amended June 29,
     4  1987 (P.L.32, No.14) and amended December 20, 2000 (P.L.992,
     5  No.141), is amended to read:
     6     SECTION 1.  SECTIONS 304 AND 305(D) OF THE ACT OF APRIL 12,    <--
     7  1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, REENACTED AND
     8  AMENDED JUNE 29, 1987 (P.L.32, NO.14), ARE AMENDED TO READ:
     9     SECTION 304.  WHEN SALES MAY BE MADE AT PENNSYLVANIA LIQUOR
    10  STORES.--[EVERY] (A)  EXCEPT AS PROVIDED FOR IN SUBSECTION (B),
    11  EVERY PENNSYLVANIA LIQUOR STORE SHALL BE OPEN FOR BUSINESS WEEK
    12  DAYS, EXCEPT LEGAL HOLIDAYS OR ANY DAY ON WHICH A GENERAL,
    13  MUNICIPAL, SPECIAL OR PRIMARY ELECTION IS BEING HELD, DURING
    14  SUCH HOURS AS THE BOARD, IN ITS DISCRETION, SHALL DETERMINE:
    15  PROVIDED, THAT THE PENNSYLVANIA LIQUOR STORES IN THE CASE OF A
    16  SPECIAL ELECTION FOR MEMBERS OF THE GENERAL ASSEMBLY OR MEMBERS
    17  OF THE CONGRESS OF THE UNITED STATES, WHEN SUCH SPECIAL ELECTION
    18  IS HELD ON OTHER THAN A PRIMARY, MUNICIPAL OR GENERAL ELECTION
    19  DAY, SHALL BE OPEN IN THOSE LEGISLATIVE OR CONGRESSIONAL
    20  DISTRICTS AS THOUGH THE DAY WERE NOT A SPECIAL ELECTION DAY. THE
    21  BOARD MAY, WITH THE APPROVAL OF THE GOVERNOR, TEMPORARILY CLOSE
    22  ANY STORE IN ANY MUNICIPALITY.
    23     (B)  CERTAIN PENNSYLVANIA LIQUOR STORES OPERATED BY THE BOARD
    24  SHALL BE OPEN FOR SUNDAY RETAIL SALES BETWEEN THE HOURS OF NOON
    25  AND FIVE O'CLOCK POSTMERIDIAN, EXCEPT THAT NO SUNDAY SALES SHALL
    26  OCCUR ON EASTER SUNDAY OR CHRISTMAS DAY. FOR A TWO-YEAR TIME
    27  PERIOD FOLLOWING THE EFFECTIVE DATE OF THIS SUBSECTION, THE
    28  BOARD SHALL OPEN UP TO TEN PER CENTUM OF THE TOTAL NUMBER OF
    29  PENNSYLVANIA LIQUOR STORES AT ITS DISCRETION FOR SUNDAY SALES AS
    30  PROVIDED FOR IN THIS SUBSECTION. AT THE EXPIRATION OF THE TWO-
    20020H2574B4608                  - 2 -

     1  YEAR TIME PERIOD, THE BOARD SHALL CONDUCT A REVIEW AND DETERMINE
     2  WHETHER THE STORES SHALL BE CLOSED OR WHETHER ADDITIONAL STORES
     3  SHALL BE OPENED FOR THESE SUNDAY SALES. THE BOARD SHALL SUBMIT
     4  YEARLY REPORTS TO THE APPROPRIATIONS AND THE LAW AND JUSTICE
     5  COMMITTEES OF THE SENATE AND THE APPROPRIATIONS AND THE LIQUOR
     6  CONTROL COMMITTEES OF THE HOUSE OF REPRESENTATIVES SUMMARIZING
     7  THE TOTAL DOLLAR VALUE OF SALES UNDER THIS SECTION.
     8     SECTION 305.  SALES BY PENNSYLVANIA LIQUOR STORES.--* * *
     9     (D)  NO LIQUOR OR ALCOHOL PACKAGE SHALL BE OPENED ON THE
    10  PREMISES OF A PENNSYLVANIA LIQUOR STORE. NO MANAGER OR OTHER
    11  EMPLOYE OF THE BOARD EMPLOYED IN A PENNSYLVANIA LIQUOR STORE
    12  SHALL ALLOW ANY LIQUOR OR ALCOHOL TO BE CONSUMED ON THE STORE
    13  PREMISES, NOR SHALL ANY PERSON CONSUME ANY LIQUOR OR ALCOHOL ON
    14  SUCH PREMISES EXCEPT LIQUOR AND ALCOHOL WHICH ARE PART OF A
    15  TASTING CONDUCTED PURSUANT TO THE BOARD'S REGULATIONS.
    16     * * *
    17     SECTION 2.  SECTIONS 403(G) AND 404 OF THE ACT, AMENDED
    18  DECEMBER 20, 2000 (P.L.992, NO.141), ARE AMENDED TO READ:
    19     SECTION 403.  APPLICATIONS FOR HOTEL, RESTAURANT AND CLUB
    20  LIQUOR LICENSES.--* * *
    21     (G)  EVERY APPLICANT FOR A NEW LICENSE OR FOR THE TRANSFER OF
    22  AN EXISTING LICENSE SHALL POST, FOR A PERIOD OF AT LEAST
    23  [FIFTEEN] THIRTY DAYS BEGINNING WITH THE DAY THE APPLICATION IS
    24  FILED WITH THE BOARD, IN A CONSPICUOUS PLACE ON THE OUTSIDE OF
    25  THE PREMISES OR AT THE PROPOSED NEW LOCATION FOR WHICH THE
    26  LICENSE IS APPLIED, A NOTICE OF SUCH APPLICATION[,]. THE NOTICE
    27  SHALL INDICATE WHETHER THE APPLICANT IS APPLYING FOR THE
    28  AMUSEMENT PERMIT REQUIRED BY SECTION 493(10). THE NOTICE SHALL
    29  BE IN SUCH FORM, BE OF SUCH SIZE, AND [CONTAINING] CONTAIN SUCH
    30  PROVISIONS AS THE BOARD MAY REQUIRE BY ITS REGULATIONS. PROOF OF
    20020H2574B4608                  - 3 -

     1  THE POSTING OF SUCH NOTICE SHALL BE FILED WITH THE BOARD. THE
     2  POSTING REQUIREMENT IMPOSED BY THIS SUBSECTION SHALL NOT APPLY
     3  TO LICENSE APPLICATIONS SUBMITTED FOR PUBLIC VENUES.
     4     * * *
     5     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
     6  Licenses.--Upon receipt of the application and the proper fees,
     7  and upon being satisfied of the truth of the statements in the
     8  application that the applicant is the only person in any manner
     9  pecuniarily interested in the business so asked to be licensed
    10  and that no other person will be in any manner pecuniarily
    11  interested therein during the continuance of the license, except
    12  as hereinafter permitted, and that the applicant is a person of
    13  good repute, that the premises applied for meet all the
    14  requirements of this act and the regulations of the board, that
    15  the applicant seeks a license for a hotel, restaurant or club,
    16  as defined in this act, and that the issuance of such license is
    17  not prohibited by any of the provisions of this act, the board
    18  shall, in the case of a hotel or restaurant, grant and issue to
    19  the applicant a liquor license, and in the case of a club may,
    20  in its discretion, issue or refuse a license: Provided, however,
    21  That in the case of any new license or the transfer of any
    22  license to a new location the board may, in its discretion,
    23  grant or refuse such new license or transfer if such place
    24  proposed to be licensed is within three hundred feet of any
    25  church, hospital, charitable institution, school, or public
    26  playground, or if such new license or transfer is applied for a
    27  place which is within two hundred feet of any other premises
    28  which is licensed by the board: And provided further, That the
    29  board's authority to refuse to grant a license because of its
    30  proximity to a church, hospital, charitable institution, public
    20020H2574B4608                  - 4 -

     1  playground or other licensed premises shall not be applicable to
     2  license applications submitted for public venues or performing
     3  arts facilities: And provided further, That the board shall
     4  refuse any application for a new license or the transfer of any
     5  license to a new location if, in the board's opinion, such new
     6  license or transfer would be detrimental to the welfare, health,
     7  peace and morals of the inhabitants of the neighborhood within a
     8  radius of five hundred feet of the place proposed to be
     9  licensed: And provided further, That prior to July 1, 1996, in
    10  any license district in a city of the first class, the board
    11  may, in its opinion, refuse any application for a new license or
    12  for any person-to-person transfer which shall include a change
    13  in stockholders involving ten per centum or more of all
    14  outstanding voting stock and/or less than ten per centum of all
    15  outstanding voting stock when such change involves a majority or
    16  controlling interest, of any license if the licensed premises is
    17  or would be within three hundred feet of any church, hospital,
    18  charitable institution, school or public playground or within
    19  two hundred feet of any other premises licensed by the board and
    20  if, in the opinion of the board, the licensed premises is or
    21  would be detrimental to the welfare, health, peace and morals of
    22  such church, hospital, school, public playground and/or the
    23  inhabitants of the neighborhood within a radius of five hundred
    24  feet of the licensed premises. The board may enter into an
    25  agreement with the applicant concerning additional restrictions
    26  on the license in question. If the board and the applicant enter
    27  into such an agreement, such agreement shall be binding on the
    28  applicant. Failure by the applicant to adhere to the agreement
    29  will be sufficient cause to form the basis for a citation under
    30  section 471 and for the nonrenewal of the license under section
    20020H2574B4608                  - 5 -

     1  470. IN THE EVENT THAT A LICENSEE VIOLATES THE AGREEMENT ON       <--
     2  THREE SEPARATE OCCASIONS, THE LICENSE SHALL BE REVOKED. IF THE
     3  BOARD ENTERS INTO AN AGREEMENT WITH AN APPLICANT CONCERNING
     4  ADDITIONAL RESTRICTIONS, THOSE RESTRICTIONS SHALL BE BINDING ON
     5  SUBSEQUENT OWNERS OF THE LICENSE UNTIL THE LICENSE IS
     6  TRANSFERRED TO A NEW LOCATION OR UNTIL THE BOARD ENTERS INTO A
     7  SUBSEQUENT AGREEMENT REMOVING THOSE RESTRICTIONS. IF THE
     8  APPLICATION IN QUESTION INVOLVES A LOCATION PREVIOUSLY LICENSED
     9  BY THE BOARD THEN ANY RESTRICTIONS IMPOSED BY THE BOARD ON THE
    10  PREVIOUS LICENSE AT THAT LOCATION SHALL BE BINDING ON THE
    11  APPLICANT UNLESS THE BOARD ENTERS INTO A NEW AGREEMENT
    12  RESCINDING THOSE RESTRICTIONS. This authority to refuse a
    13  person-to-person transfer in a city of the first class is in
    14  addition to and not in derogation of the authority of the board
    15  generally stated for all areas of this Commonwealth: And
    16  provided further, That the board shall have the discretion to
    17  refuse a license to any person or to any corporation,
    18  partnership or association if such person, or any officer or
    19  director of such corporation, or any member or partner of such
    20  partnership or association shall have been convicted or found
    21  guilty of a felony within a period of five years immediately
    22  preceding the date of application for the said license. The
    23  board shall refuse any application for a new license or the
    24  transfer of any license to a location where the sale of liquid
    25  fuels or oil is conducted. The board may, in its discretion,
    26  refuse an application for an economic development license under
    27  section 461(b.1) or an application for an intermunicipal
    28  transfer of a license if the board receives a protest from the
    29  governing body of the receiving municipality. The receiving
    30  municipality of an intermunicipal transfer or an economic
    20020H2574B4608                  - 6 -

     1  development license under section 461(b.1) may file a protest
     2  against the transfer of a license into its municipality, and the
     3  receiving municipality shall have standing in a hearing to
     4  present testimony in support of or against the issuance or
     5  transfer of a license. Upon any opening in any quota, an
     6  application for a new license shall only be filed with the board
     7  for a period of six months following said opening.
     8     SECTION 3.  SECTION 412 OF THE ACT IS AMENDED BY ADDING A      <--
     9  SUBSECTION TO READ:
    10     SECTION 412.  PUBLIC VENUE LICENSE.--* * *
    11     (G)  THE BOARD IS AUTHORIZED TO ISSUE MULTIPLE LICENSES UNDER
    12  THIS SECTION FOR USE IN A PUBLIC VENUE WITH PERMANENT SEATING OF
    13  AT LEAST THIRTY-FIVE THOUSAND (35,000) PEOPLE. IF THE BOARD DOES
    14  ISSUE MORE THAN ONE LICENSE FOR A SPECIFIC PUBLIC VENUE, WRITTEN
    15  NOTICE OF THE EVENT MUST BE PROVIDED TO THE ENFORCEMENT BUREAU
    16  AT LEAST FORTY-EIGHT HOURS IN ADVANCE OF THE DISPENSING OF ANY
    17  LIQUOR OR MALT OR BREWED BEVERAGES. THE NOTICE SHALL INCLUDE THE
    18  DATE, TIME AND SPECIFIC LICENSED AREAS TO BE USED. NO MORE THAN
    19  ONE LICENSE ISSUED UNDER THIS SECTION SHALL BE IN EFFECT AT ANY
    20  LOCATION AT ANY TIME OF DAY AT THE SAME TIME.
    21     Section 2 4.  Section 431(b) of the act, amended December 21,  <--
    22  1998 (P.L.1202, No.155), is amended to read:
    23     Section 431.  Malt and Brewed Beverages Manufacturers',
    24  Distributors' and Importing Distributors' Licenses.--* * *
    25     (b)  The board shall issue to any reputable person who
    26  applies therefor, and pays the license fee hereinafter
    27  prescribed, a distributor's or importing distributor's license
    28  for the place which such person desires to maintain for the sale
    29  of malt or brewed beverages, not for consumption on the premises
    30  where sold, and in quantities of not less than a case or
    20020H2574B4608                  - 7 -

     1  original containers containing one hundred twenty-eight ounces
     2  or more which may be sold separately as prepared for the market
     3  by the manufacturer at the place of manufacture. The board may
     4  enter into an agreement with the applicant concerning additional
     5  restrictions on the license in question. If the board and the
     6  applicant enter into such an agreement, such agreement shall be
     7  binding on the applicant. Failure by the applicant to adhere to
     8  the agreement will be sufficient cause to form the basis for a
     9  citation under section 471 and for the nonrenewal of the license
    10  under section 470. IN THE EVENT THAT A LICENSEE VIOLATES THE      <--
    11  AGREEMENT ON THREE SEPARATE OCCASIONS, THE LICENSE SHALL BE
    12  REVOKED. IF THE BOARD ENTERS INTO AN AGREEMENT WITH AN APPLICANT
    13  CONCERNING ADDITIONAL RESTRICTIONS, THOSE RESTRICTIONS SHALL BE
    14  BINDING ON SUBSEQUENT OWNERS OF THE LICENSE UNTIL THE LICENSE IS
    15  TRANSFERRED TO A NEW LOCATION OR UNTIL THE BOARD ENTERS INTO A
    16  SUBSEQUENT AGREEMENT REMOVING THOSE RESTRICTIONS. IF THE
    17  APPLICATION IN QUESTION INVOLVES A LOCATION PREVIOUSLY LICENSED
    18  BY THE BOARD THEN ANY RESTRICTIONS IMPOSED BY THE BOARD ON THE
    19  PREVIOUS LICENSE AT THAT LOCATION SHALL BE BINDING ON THE
    20  APPLICANT UNLESS THE BOARD ENTERS INTO A NEW AGREEMENT
    21  RESCINDING THOSE RESTRICTIONS. The board shall have the
    22  discretion to refuse a license to any person or to any
    23  corporation, partnership or association if such person, or any
    24  officer or director of such corporation, or any member or
    25  partner of such partnership or association shall have been
    26  convicted or found guilty of a felony within a period of five
    27  years immediately preceding the date of application for the said
    28  license: And provided further, That, in the case of any new
    29  license or the transfer of any license to a new location, the
    30  board may, in its discretion, grant or refuse such new license
    20020H2574B4608                  - 8 -

     1  or transfer if such place proposed to be licensed is within
     2  three hundred feet of any church, hospital, charitable
     3  institution, school or public playground, or if such new license
     4  or transfer is applied for a place which is within two hundred
     5  feet of any other premises which is licensed by the board: And
     6  provided further, That the board shall refuse any application
     7  for a new license or the transfer of any license to a new
     8  location if, in the board's opinion, such new license or
     9  transfer would be detrimental to the welfare, health, peace and
    10  morals of the inhabitants of the neighborhood within a radius of
    11  five hundred feet of the place proposed to be licensed. The
    12  board shall refuse any application for a new license or the
    13  transfer of any license to a location where the sale of liquid
    14  fuels or oil is conducted. The board shall require notice to be
    15  posted on the property or premises upon which the licensee or
    16  proposed licensee will engage in sales of malt or brewed
    17  beverages. This notice shall be similar to the notice required
    18  of hotel, restaurant and club liquor licensees.
    19     Except as hereinafter provided, such license shall authorize
    20  the holder thereof to sell or deliver malt or brewed beverages
    21  in quantities above specified anywhere within the Commonwealth
    22  of Pennsylvania, which, in the case of distributors, have been
    23  purchased only from persons licensed under this act as
    24  manufacturers or importing distributors, and in the case of
    25  importing distributors, have been purchased from manufacturers
    26  or persons outside this Commonwealth engaged in the legal sale
    27  of malt or brewed beverages or from manufacturers or importing
    28  distributors licensed under this article. In the case of an
    29  importing distributor, the holder of such a license shall be
    30  authorized to store malt or brewed beverages owned by an out of
    20020H2574B4608                  - 9 -

     1  State manufacturer at a segregated portion of a warehouse or
     2  other storage facility authorized by section 441(d) and operated
     3  by the importing distributor within its appointed territory and
     4  deliver such beverages to another importing distributor who has
     5  been granted distribution rights by the out of State
     6  manufacturer as provided herein. The importing distributor shall
     7  be permitted to receive a fee from the out of State manufacturer
     8  for any related storage or delivery services. In the case of a
     9  bailee for hire hired by an out of State manufacturer, the
    10  holder of such a permit shall be authorized: to receive or store
    11  malt or brewed beverages under the same conditions as permitted
    12  for a distributor or importing distributor under section 441(f)
    13  produced by that out of State manufacturer for sale by that
    14  manufacturer to importing distributors to whom that out of State
    15  manufacturer has given distribution rights pursuant to this
    16  subsection or to purchasers outside this Commonwealth for
    17  delivery outside this Commonwealth; or to ship to that out of
    18  State manufacturer's storage facilities outside this
    19  Commonwealth. The bailee for hire shall be permitted to receive
    20  a fee from the out of State manufacturer for any related storage
    21  or delivery services. The bailee for hire shall, as required in
    22  Article V of this act, keep complete and accurate records of all
    23  transactions, inventory, receipts and shipments and make all
    24  records and the licensed areas available for inspection by the
    25  board and for the Pennsylvania State Police, Bureau of Liquor
    26  Control Enforcement, during normal business hours.
    27     Each out of State manufacturer of malt or brewed beverages
    28  whose products are sold and delivered in this Commonwealth shall
    29  give distributing rights for such products in designated
    30  geographical areas to specific importing distributors, and such
    20020H2574B4608                 - 10 -

     1  importing distributor shall not sell or deliver malt or brewed
     2  beverages manufactured by the out of State manufacturer to any
     3  person issued a license under the provisions of this act whose
     4  licensed premises are not located within the geographical area
     5  for which he has been given distributing rights by such
     6  manufacturer. Should a licensee accept the delivery of such malt
     7  or brewed beverages in violation of this section, said licensee
     8  shall be subject to a suspension of his license for at least
     9  thirty days: Provided, That the importing distributor holding
    10  such distributing rights for such product shall not sell or
    11  deliver the same to another importing distributor without first
    12  having entered into a written agreement with the said secondary
    13  importing distributor setting forth the terms and conditions
    14  under which such products are to be resold within the territory
    15  granted to the primary importing distributor by the
    16  manufacturer.
    17     When a Pennsylvania manufacturer of malt or brewed beverages
    18  licensed under this article names or constitutes a distributor
    19  or importing distributor as the primary or original supplier of
    20  his product, he shall also designate the specific geographical
    21  area for which the said distributor or importing distributor is
    22  given distributing rights, and such distributor or importing
    23  distributor shall not sell or deliver the products of such
    24  manufacturer to any person issued a license under the provisions
    25  of this act whose licensed premises are not located within the
    26  geographical area for which distributing rights have been given
    27  to the distributor and importing distributor by the said
    28  manufacturer: Provided, That the importing distributor holding
    29  such distributing rights for such product shall not sell or
    30  deliver the same to another importing distributor without first
    20020H2574B4608                 - 11 -

     1  having entered into a written agreement with the said secondary
     2  importing distributor setting forth the terms and conditions
     3  under which such products are to be resold within the territory
     4  granted to the primary importing distributor by the
     5  manufacturer. Nothing herein contained shall be construed to
     6  prevent any manufacturer from authorizing the importing
     7  distributor holding the distributing rights for a designated
     8  geographical area from selling the products of such manufacturer
     9  to another importing distributor also holding distributing
    10  rights from the same manufacturer for another geographical area,
    11  providing such authority be contained in writing and a copy
    12  thereof be given to each of the importing distributors so
    13  affected.
    14     * * *
    15     Section 3 5.  Section 432(d) AND (E) of the act, amended       <--
    16  December 20, 2000 (P.L.992, No.141), is ARE amended to read:      <--
    17     Section 432.  Malt and Brewed Beverages Retail Licenses.--* *
    18  *
    19     (d)  The board shall, in its discretion, grant or refuse any
    20  new license or the transfer of any license to a new location if
    21  such place proposed to be licensed is within three hundred feet
    22  of any church, hospital, charitable institution, school, or
    23  public playground, or if such new license or transfer is applied
    24  for a place which is within two hundred feet of any other
    25  premises which is licensed by the board. The board may enter
    26  into an agreement with the applicant concerning additional
    27  restrictions on the license in question. If the board and the
    28  applicant enter into such an agreement, such agreement shall be
    29  binding on the applicant. Failure by the applicant to adhere to
    30  the agreement will be sufficient cause to form the basis for a
    20020H2574B4608                 - 12 -

     1  citation under section 471 and for the nonrenewal of the license
     2  under section 470. IN THE EVENT THAT A LICENSEE VIOLATES THE      <--
     3  AGREEMENT ON THREE SEPARATE OCCASIONS, THE LICENSE SHALL BE
     4  REVOKED. IF THE BOARD ENTERS INTO AN AGREEMENT WITH AN APPLICANT
     5  CONCERNING ADDITIONAL RESTRICTIONS, THOSE RESTRICTIONS SHALL BE
     6  BINDING ON SUBSEQUENT OWNERS OF THE LICENSE UNTIL THE LICENSE IS
     7  TRANSFERRED TO A NEW LOCATION OR UNTIL THE BOARD ENTERS INTO A
     8  SUBSEQUENT AGREEMENT REMOVING THOSE RESTRICTIONS. IF THE
     9  APPLICATION IN QUESTION INVOLVES A LOCATION PREVIOUSLY LICENSED
    10  BY THE BOARD THEN ANY RESTRICTIONS IMPOSED BY THE BOARD ON THE
    11  PREVIOUS LICENSE AT THAT LOCATION SHALL BE BINDING ON THE
    12  APPLICANT UNLESS THE BOARD ENTERS INTO A NEW AGREEMENT
    13  RESCINDING THOSE RESTRICTIONS. The board shall refuse any
    14  application for a new license or the transfer of any license to
    15  a new location if, in the board's opinion, such new license or
    16  transfer would be detrimental to the welfare, health, peace and
    17  morals of the inhabitants of the neighborhood within a radius of
    18  five hundred feet of the place to be licensed. The board shall
    19  refuse any application for a new license or the transfer of any
    20  license to a location where the sale of liquid fuels or oil is
    21  conducted: And provided further, That the board shall have the
    22  discretion to refuse a license to any person or to any
    23  corporation, partnership or association if such person, or any
    24  officer or director of such corporation, or any member or
    25  partner of such partnership or association shall have been
    26  convicted or found guilty of a felony within a period of five
    27  years immediately preceding the date of application for the said
    28  license. The board may, in its discretion, refuse an application
    29  for an economic development license under section 461(b.1) or an
    30  application for an intermunicipal transfer or a license if the
    20020H2574B4608                 - 13 -

     1  board receives a protest from the governing body of the
     2  receiving municipality. The receiving municipality of an
     3  intermunicipal transfer or an economic development license under
     4  section 461(b.1) may file a protest against the approval for
     5  issuance of a license for economic development or an
     6  intermunicipal transfer of a license into its municipality, and
     7  such municipality shall have standing in a hearing to present
     8  testimony in support of or against the issuance or transfer of a
     9  license. Upon any opening in any quota, an application for a new
    10  license shall only be filed with the board for a period of six
    11  months following said opening.
    12     (E)  EVERY APPLICANT FOR A NEW OR FOR THE TRANSFER OF AN       <--
    13  EXISTING LICENSE TO ANOTHER PREMISES NOT THEN LICENSED SHALL
    14  POST, FOR A PERIOD OF AT LEAST [FIFTEEN] THIRTY DAYS BEGINNING
    15  WITH THE DAY THE APPLICATION IS FILED WITH THE BOARD, IN A
    16  CONSPICUOUS PLACE ON THE OUTSIDE OF THE PREMISES OR IN A WINDOW
    17  PLAINLY VISIBLE FROM THE OUTSIDE OF THE PREMISES FOR WHICH THE
    18  LICENSE IS APPLIED OR AT THE PROPOSED NEW LOCATION, A NOTICE OF
    19  SUCH APPLICATION[,]. THE NOTICE SHALL INDICATE WHETHER THE
    20  APPLICANT IS APPLYING FOR THE AMUSEMENT PERMIT REQUIRED BY
    21  SECTION 493(10). THE NOTICE SHALL BE IN SUCH FORM, BE OF SUCH
    22  SIZE, AND [CONTAINING] CONTAIN SUCH PROVISIONS AS THE BOARD MAY
    23  REQUIRE BY ITS REGULATIONS. PROOF OF THE POSTING OF SUCH NOTICE
    24  SHALL BE FILED WITH THE BOARD.
    25     * * *
    26     SECTION 6.  SECTION 441(B) OF THE ACT, AMENDED MAY 31, 1996    <--
    27  (P.L.312, NO.49), IS AMENDED TO READ:
    28     SECTION 441.  DISTRIBUTORS' AND IMPORTING DISTRIBUTORS'
    29  RESTRICTIONS ON SALES, STORAGE, ETC.--* * *
    30     (B)  NO DISTRIBUTOR OR IMPORTING DISTRIBUTOR SHALL SELL ANY
    20020H2574B4608                 - 14 -

     1  MALT OR BREWED BEVERAGES IN QUANTITIES OF LESS THAN A CASE OR
     2  ORIGINAL CONTAINERS CONTAINING ONE HUNDRED TWENTY-EIGHT OUNCES
     3  OR MORE WHICH MAY BE SOLD SEPARATELY: PROVIDED, THAT NO MALT OR
     4  BREWED BEVERAGES SOLD OR DELIVERED SHALL BE CONSUMED UPON THE
     5  PREMISES OF THE DISTRIBUTOR OR IMPORTING DISTRIBUTOR, OR IN ANY
     6  PLACE PROVIDED FOR SUCH PURPOSE BY SUCH DISTRIBUTOR OR IMPORTING
     7  DISTRIBUTOR. NOTWITHSTANDING THIS SECTION OR ANY OTHER SECTION
     8  OF THIS ACT, MALT OR BREWED BEVERAGES WHICH ARE PART OF A
     9  TASTING CONDUCTED PURSUANT TO THE BOARD'S REGULATIONS MAY BE
    10  CONSUMED ON LICENSED PREMISES.
    11     Section 4 7.  Section 470(a) of the act, amended December 21,  <--
    12  1998 (P.L.1202, No.155), is amended to read:
    13     Section 470.  Renewal of Licenses; Temporary Provisions for
    14  Licensees in Armed Service.--(a)  All applications for renewal
    15  of licenses under the provisions of this article shall be filed
    16  with tax clearance from the Department of Revenue and the
    17  Department of Labor and Industry and requisite license and
    18  filing fees at least sixty days before the expiration date of
    19  same: Provided, however, That the board, in its discretion, may
    20  accept nunc pro tunc a renewal application filed less than sixty
    21  days before the expiration date of the license with the required
    22  fees, upon reasonable cause shown and the payment of an
    23  additional filing fee of one hundred dollars ($100.00) for late
    24  filing: And provided further, That except where the failure to
    25  file a renewal application on or before the expiration date has
    26  created a license quota vacancy after said expiration date which
    27  has been filled by the issuance of a new license, after such
    28  expiration date, but before the board has received a renewal
    29  application nunc pro tunc within the time prescribed herein the
    30  board, in its discretion, may, after hearing, accept a renewal
    20020H2574B4608                 - 15 -

     1  application filed within two years after the expiration date of
     2  the license with the required fees upon the payment of an
     3  additional filing fee of two hundred fifty dollars ($250.00) for
     4  late filing. Where any such renewal application is filed less
     5  than sixty days before the expiration date, or subsequent to the
     6  expiration date, no license shall issue upon the filing of the
     7  renewal application until the matter is finally determined by
     8  the board and if an appeal is taken from the board's action the
     9  courts shall not order the issuance of the renewal license until
    10  final determination of the matter by the courts. The board may
    11  enter into an agreement with the applicant concerning additional
    12  restrictions on the license in question. If the board and the
    13  applicant enter into such an agreement, such agreement shall be
    14  binding on the applicant. Failure by the applicant to adhere to
    15  the agreement will be sufficient cause to form the basis for a
    16  citation under section 471 and for the nonrenewal of the license
    17  under this section. IN THE EVENT THAT A LICENSEE VIOLATES THE     <--
    18  AGREEMENT ON THREE SEPARATE OCCASIONS, THE LICENSE SHALL BE
    19  REVOKED. A renewal application will not be considered filed
    20  unless accompanied by the requisite filing and license fees and
    21  any additional filing fee required by this section. Unless the
    22  board shall have given ten days' previous notice to the
    23  applicant of objections to the renewal of his license, based
    24  upon violation by the licensee or his servants, agents or
    25  employes of any of the laws of the Commonwealth or regulations
    26  of the board relating to the manufacture, transportation, use,
    27  storage, importation, possession or sale of liquors, alcohol or
    28  malt or brewed beverages, or the conduct of a licensed
    29  establishment, or unless the applicant has by his own act become
    30  a person of ill repute, or unless the premises do not meet the
    20020H2574B4608                 - 16 -

     1  requirements of this act or the regulations of the board, the
     2  license of a licensee shall be renewed.
     3     * * *
     4     SECTION 8.  SECTION 471(C) OF THE ACT, AMENDED FEBRUARY 21,    <--
     5  2002 (P.L.103, NO.10), IS AMENDED TO READ:
     6     SECTION 471.  REVOCATION AND SUSPENSION OF LICENSES; FINES.--
     7  * * *
     8     (C)  THE ADMINISTRATIVE LAW JUDGE MAY CONSIDER THE LICENSEE'S
     9  PRIOR CITATION HISTORY WHEN IMPOSING A PENALTY. IF THE VIOLATION
    10  IN QUESTION IS A THIRD OR SUBSEQUENT VIOLATION OF [THIS ACT] ANY
    11  OFFENSE REFERRED TO IN SUBSECTION (B) OR TITLE 18 OF THE
    12  PENNSYLVANIA CONSOLIDATED STATUTES (RELATING TO CRIMES AND
    13  OFFENSES), OCCURRING WITHIN A PERIOD OF FOUR YEARS, THE
    14  ADMINISTRATIVE LAW JUDGE SHALL IMPOSE A SUSPENSION OR
    15  REVOCATION.
    16     * * *
    17     SECTION 9.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    18     SECTION 474.1.  SURRENDER OF RESTAURANT, EATING PLACE RETAIL
    19  DISPENSER, HOTEL, IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSE
    20  FOR BENEFIT OF LICENSEE.--(A)  A RESTAURANT, EATING PLACE RETAIL
    21  DISPENSER, HOTEL, IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSEE
    22  WHOSE LICENSED ESTABLISHMENT IS NOT IN OPERATION FOR FIFTEEN
    23  CONSECUTIVE DAYS SHALL RETURN ITS LICENSE FOR SAFEKEEPING WITH
    24  THE BOARD NO LATER THAN AT THE EXPIRATION OF THE FIFTEEN-DAY
    25  PERIOD. THE LICENSE MAY ONLY BE REISSUED FROM SAFEKEEPING IN THE
    26  MANNER SET FORTH BY THE BOARD THROUGH REGULATION.
    27     (B)  THE BOARD MAY HOLD THE LICENSE IN SAFEKEEPING FOR A
    28  PERIOD NOT TO EXCEED THREE CONSECUTIVE YEARS. ANY LICENSE
    29  REMAINING IN SAFEKEEPING FOR MORE THAN THREE CONSECUTIVE YEARS
    30  SHALL BE IMMEDIATELY REVOKED BY THE BUREAU OF LICENSING UNLESS A
    20020H2574B4608                 - 17 -

     1  TRANSFER APPLICATION OR REQUEST FOR REISSUE FROM SAFEKEEPING HAS
     2  BEEN FILED PRIOR TO THE EXPIRATION OF THE THREE-YEAR PERIOD. THE
     3  BOARD SHALL EXTEND THE PERIOD FOR AN ADDITIONAL YEAR IF AT THE
     4  END OF THE THREE-YEAR PERIOD, THE LICENSED PREMISES ARE
     5  UNAVAILABLE DUE TO FIRE, FLOOD OR OTHER SIMILAR NATURAL
     6  DISASTER.
     7     (C)  IN THE EVENT A TRANSFER APPLICATION FILED PRIOR TO THE
     8  EXPIRATION OF THE THREE-YEAR PERIOD IS DISAPPROVED BY THE BOARD,
     9  THROUGH ITS EXERCISE OF DISCRETION, THEN THE LICENSE MAY REMAIN
    10  IN SAFEKEEPING FOR AN ADDITIONAL PERIOD OF THREE CONSECUTIVE
    11  MONTHS AFTER THE BOARD'S DECISION TO REFUSE THE TRANSFER
    12  APPLICATION. FAILURE TO REMOVE THE LICENSE FROM SAFEKEEPING OR
    13  TO FILE ANOTHER TRANSFER APPLICATION PRIOR TO THE EXPIRATION OF
    14  THE THREE-MONTH PERIOD OF TIME SHALL RESULT IN REVOCATION OF THE
    15  LICENSE.
    16     (D)  ANY PERIOD OF TIME IN WHICH THE LICENSEE ALLOWS THE
    17  LICENSE TO LAPSE BY NOT FILING A TIMELY LICENSE RENEWAL OR
    18  LICENSE VALIDATION SHALL BE CONSIDERED TIME IN WHICH THE LICENSE
    19  WAS HELD IN SAFEKEEPING, FOR PURPOSES OF THIS SECTION.
    20     (E)  A LICENSE PLACED IN SAFEKEEPING PRIOR TO THE EFFECTIVE
    21  DATE OF THIS ACT WILL BE DEEMED TO HAVE BEEN PLACED IN
    22  SAFEKEEPING ON THE EFFECTIVE DATE OF THIS ACT, FOR PURPOSES OF
    23  THIS SECTION.
    24     SECTION 10.  SECTION 493(13), (17) AND (20)(I) OF THE ACT,
    25  AMENDED MAY 31, 1996 (P.L.312, NO.49) AND NOVEMBER 10, 1999
    26  (P.L.514, NO.47), ARE AMENDED TO READ:
    27     SECTION 493.  UNLAWFUL ACTS RELATIVE TO LIQUOR, MALT AND
    28  BREWED BEVERAGES AND LICENSEES.--THE TERM "LICENSEE," WHEN USED
    29  IN THIS SECTION, SHALL MEAN THOSE PERSONS LICENSED UNDER THE
    30  PROVISIONS OF ARTICLE IV, UNLESS THE CONTEXT CLEARLY INDICATES
    20020H2574B4608                 - 18 -

     1  OTHERWISE.
     2     IT SHALL BE UNLAWFUL--
     3     * * *
     4     (13)  RETAIL LICENSEES EMPLOYING MINORS. FOR ANY HOTEL,
     5  RESTAURANT OR CLUB LIQUOR LICENSEE, OR ANY RETAIL DISPENSER, TO
     6  EMPLOY OR TO PERMIT ANY MINOR UNDER THE AGE OF EIGHTEEN TO SERVE
     7  ANY ALCOHOLIC BEVERAGES OR TO EMPLOY OR PERMIT ANY MINOR UNDER
     8  THE AGE OF SIXTEEN TO RENDER ANY SERVICE WHATEVER IN THE
     9  LICENSED PREMISES, NOR SHALL ANY ENTERTAINER UNDER THE AGE OF
    10  EIGHTEEN BE EMPLOYED OR PERMITTED TO PERFORM IN ANY LICENSED
    11  PREMISES IN VIOLATION OF THE LABOR LAWS OF THIS COMMONWEALTH:
    12  PROVIDED, THAT IN ACCORDANCE WITH BOARD REGULATIONS MINORS
    13  BETWEEN THE AGES OF SIXTEEN AND EIGHTEEN MAY BE EMPLOYED TO
    14  SERVE FOOD, CLEAR TABLES AND PERFORM OTHER SIMILAR DUTIES, NOT
    15  TO INCLUDE THE DISPENSING OR SERVING OF ALCOHOLIC BEVERAGES.
    16  [NOTWITHSTANDING ANY PROVISION OF THIS ACT TO THE CONTRARY, IT
    17  SHALL BE LAWFUL] IT SHALL BE UNLAWFUL FOR ANY SKI RESORT, GOLF
    18  COURSE OR AMUSEMENT PARK LICENSEE TO EMPLOY MINORS FOURTEEN AND
    19  FIFTEEN YEARS OF AGE TO PERFORM DUTIES [ONLY] IN ROOMS OR AREAS
    20  OF THE LICENSED PREMISES WHEN AND WHERE ALCOHOLIC BEVERAGES ARE
    21  [NOT] DISPENSED, SERVED OR STORED [DURING THE TIME IN WHICH THE
    22  MINOR IS PERFORMING SUCH DUTIES] IN UNSECURED STORAGE.
    23     * * *
    24     (17)  LICENSEES, ETC., INTERESTED OR EMPLOYED IN
    25  MANUFACTURING OR SALE OF EQUIPMENT OR FIXTURES. FOR ANY
    26  LICENSEE, OR ANY OFFICER, DIRECTOR, STOCKHOLDER, SERVANT, AGENT
    27  OR EMPLOYE OF ANY LICENSEE, TO OWN ANY INTEREST, DIRECTLY OR
    28  INDIRECTLY, IN OR BE EMPLOYED OR ENGAGED IN ANY BUSINESS WHICH
    29  INVOLVES THE MANUFACTURE OR SALE OF ANY EQUIPMENT, FURNISHINGS
    30  OR FIXTURES TO ANY HOTEL, RESTAURANT OR CLUB LICENSEES, OR TO
    20020H2574B4608                 - 19 -

     1  ANY IMPORTING DISTRIBUTORS, DISTRIBUTORS OR RETAIL DISPENSERS:
     2  PROVIDED, HOWEVER, THAT AS TO MALT OR BREWED BEVERAGE LICENSEES,
     3  THE PROVISIONS OF THIS SUBSECTION SHALL NOT APPLY TO SUCH A
     4  CONFLICTING INTEREST IF IT HAS EXISTED FOR A PERIOD OF NOT LESS
     5  THAN THREE YEARS PRIOR TO THE FIRST DAY OF JANUARY, ONE THOUSAND
     6  NINE HUNDRED THIRTY-SEVEN, AND THE BOARD SHALL APPROVE.
     7  NOTWITHSTANDING THIS PROVISION OR ANY OTHER PROVISION OF THIS
     8  ACT, IT SHALL BE PERMISSIBLE FOR LICENSEES TO SELL GLASSES AT
     9  NOT LESS THAN COST AND TO PROVIDE BEER BUCKETS, COASTERS, METAL
    10  KEG CONNECTORS AND TAP KNOBS TO OTHER LICENSEES AND TO HOLDERS
    11  OF SPECIAL OCCASION PERMITS.
    12     * * *
    13     (20)  (I)  RETAIL LIQUOR AND RETAIL MALT OR BREWED BEVERAGES
    14  LICENSEE'S INSIDE ADVERTISEMENTS. FOR ANY RETAIL LIQUOR OR
    15  RETAIL MALT OR BREWED BEVERAGES LICENSEE, TO DISPLAY OR PERMIT
    16  THE DISPLAY IN THE SHOW WINDOW OR DOORWAYS OF HIS LICENSED
    17  PREMISES, ANY PLACARD OR SIGN ADVERTISING THE BRANDS OF LIQUOR
    18  OR MALT OR BREWED BEVERAGES, IF THE TOTAL DISPLAY AREA OF ANY
    19  SUCH PLACARD OR SIGN ADVERTISING THE PRODUCT OR PRODUCTS EXCEEDS
    20  SIX HUNDRED SQUARE INCHES. NOTHING HEREIN SHALL PROHIBIT A
    21  LICENSEE FROM DISPLAYING INSIDE HIS LICENSED PREMISES POINT OF
    22  SALE DISPLAYS ADVERTISING BRAND NAMES OF PRODUCTS SOLD BY HIM,
    23  OTHER THAN A WINDOW OR DOOR DISPLAY: PROVIDED, THAT THE TOTAL
    24  COST OF ALL SUCH POINT OF SALE ADVERTISING MATTER RELATING TO
    25  ANY ONE BRAND SHALL [NOT EXCEED THE SUM OF ONE HUNDRED FORTY
    26  DOLLARS ($140) AT ANY ONE TIME, AND NO SINGLE PIECE OF
    27  ADVERTISING SHALL EXCEED A COST OF SEVENTY DOLLARS ($70). THE
    28  BOARD IS AUTHORIZED TO MAKE ANNUAL ADJUSTMENTS TO THE COST
    29  LIMITATIONS ON POINT OF DISPLAY ADVERTISING TO REFLECT ANY
    30  CHANGES IN SUCH LIMITATIONS BY THE UNITED STATES BUREAU OF
    20020H2574B4608                 - 20 -

     1  ALCOHOL, TOBACCO AND FIREARMS OR ITS SUCCESSORS IN ACCORDANCE
     2  WITH 27 CFR 6.83 (RELATING TO PRODUCT DISPLAYS) AND 27 CFR 6.85
     3  (RELATING TO RETAILER ADVERTISING SPECIALTIES).] NOT EXCEED THE
     4  DOLLAR AMOUNT SET FORTH BY THE BOARD THROUGH REGULATION. ALL
     5  SUCH ADVERTISING MATERIAL, INCLUDING THE WINDOW AND DOOR SIGNS,
     6  MAY BE FURNISHED BY A MANUFACTURER, DISTRIBUTOR OR IMPORTING
     7  DISTRIBUTOR. THE RESTRICTIONS ON ADVERTISING SET FORTH IN
     8  SUBCLAUSE (II) AND IN CLAUSES (20.1) AND (20.2) SHALL ALSO APPLY
     9  TO THIS SUBCLAUSE.
    10     * * *
    11     Section 5 11.  This act shall take effect immediately.         <--













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