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                                                      PRINTER'S NO. 3101

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2170 Session of 2008


        INTRODUCED BY READSHAW, BENNINGTON, HORNAMAN, JOSEPHS, KORTZ,
           MELIO, M. O'BRIEN, WOJNAROSKI AND YOUNGBLOOD,
           JANUARY 17, 2008

        REFERRED TO COMMITTEE ON LIQUOR CONTROL, JANUARY 17, 2008

                                     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     providing for municipal authority to establish maximum
    18     saturation ratios for licensed establishments.

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  Section 404 of the act of April 12, 1951 (P.L.90,
    22  No.21), known as the Liquor Code, reenacted and amended June 29,
    23  1987 (P.L.32, No.14) and amended January 6, 2006 (P.L.1, No.1),
    24  is amended to read:
    25     Section 404.  Issuance, Transfer or Extension of Hotel,


     1  Restaurant and Club Liquor Licenses.--Upon receipt of the
     2  application and the proper fees, and upon being satisfied of the
     3  truth of the statements in the application that the applicant is
     4  the only person in any manner pecuniarily interested in the
     5  business so asked to be licensed and that no other person will
     6  be in any manner pecuniarily interested therein during the
     7  continuance of the license, except as hereinafter permitted, and
     8  that the applicant is a person of good repute, that the premises
     9  applied for meet all the requirements of this act and the
    10  regulations of the board, that the applicant seeks a license for
    11  a hotel, restaurant or club, as defined in this act, and that
    12  the issuance of such license is not prohibited by any of the
    13  provisions of this act, the board shall, in the case of a hotel
    14  or restaurant, grant and issue to the applicant a liquor
    15  license, and in the case of a club may, in its discretion, issue
    16  or refuse a license: Provided, however, That in the case of any
    17  new license or the transfer of any license to a new location or
    18  the extension of an existing license to cover an additional area
    19  the board may, in its discretion, grant or refuse such new
    20  license, transfer or extension if such place proposed to be
    21  licensed is within three hundred feet of any church, hospital,
    22  charitable institution, school, or public playground, or if such
    23  new license, transfer or extension is applied for a place which
    24  is within two hundred feet of any other premises which is
    25  licensed by the board: And provided further, That the board's
    26  authority to refuse to grant a license because of its proximity
    27  to a church, hospital, charitable institution, public playground
    28  or other licensed premises shall not be applicable to license
    29  applications submitted for public venues or performing arts
    30  facilities: And provided further, That the board shall refuse
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     1  any application for a new license, the transfer of any license
     2  to a new location or the extension of an existing license to
     3  cover an additional area if, in the board's opinion, such new
     4  license, transfer or extension would be detrimental to the
     5  welfare, health, peace and morals of the inhabitants of the
     6  neighborhood within a radius of five hundred feet of the place
     7  proposed to be licensed: And provided further, That the board
     8  shall have the discretion to refuse a license to any person or
     9  to any corporation, partnership or association if such person,
    10  or any officer or director of such corporation, or any member or
    11  partner of such partnership or association shall have been
    12  convicted or found guilty of a felony within a period of five
    13  years immediately preceding the date of application for the said
    14  license. The board shall refuse any application for a new
    15  license, the transfer of any license to a new location or the
    16  extension of any license to cover an additional area where the
    17  sale of liquid fuels or oil is conducted. All issuances,
    18  transfers or extensions under this section shall be subject to
    19  any maximum saturation ratio established under section 493.1(a).
    20  The board may enter into an agreement with the applicant
    21  concerning additional restrictions on the license in question.
    22  If the board and the applicant enter into such an agreement,
    23  such agreement shall be binding on the applicant. Failure by the
    24  applicant to adhere to the agreement will be sufficient cause to
    25  form the basis for a citation under section 471 and for the
    26  nonrenewal of the license under section 470. If the board enters
    27  into an agreement with an applicant concerning additional
    28  restrictions, those restrictions shall be binding on subsequent
    29  holders of the license until the license is transferred to a new
    30  location or until the board enters into a subsequent agreement
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     1  removing those restrictions. If the application in question
     2  involves a location previously licensed by the board, then any
     3  restrictions imposed by the board on the previous license at
     4  that location shall be binding on the applicant unless the board
     5  enters into a new agreement rescinding those restrictions. The
     6  board may, in its discretion, refuse an application for an
     7  economic development license under section 461(b.1) or an
     8  application for an intermunicipal transfer of a license if the
     9  board receives a protest from the governing body of the
    10  receiving municipality. The receiving municipality of an
    11  intermunicipal transfer or an economic development license under
    12  section 461(b.1) may file a protest against the transfer of a
    13  license into its municipality, and the receiving municipality
    14  shall have standing in a hearing to present testimony in support
    15  of or against the issuance or transfer of a license. Upon any
    16  opening in any quota, an application for a new license shall
    17  only be filed with the board for a period of six months
    18  following said opening.
    19     Section 2.  Section 461(b.3) of the act, amended November 29,
    20  2006 (P.L.1421, No.155), is amended to read:
    21     Section 461.  Limiting Number of Retail Licenses To Be Issued
    22  In Each County.--* * *
    23     (b.3)  An intermunicipal transfer of a license or issuance of
    24  a license for economic development under subsection (b.1)(2)(i)
    25  must first be approved by the governing body of the receiving
    26  municipality when the total number of existing restaurant liquor
    27  licenses and eating place retail dispenser licenses in the
    28  receiving municipality equal or exceed one license per three
    29  thousand inhabitants. An intramunicipal transfer of a license or
    30  issuance of a license for economic development under subsection
    20080H2170B3101                  - 4 -     

     1  (b.1)(2)(i) must first be approved by the governing body of the
     2  municipality if the municipality has created a maximum
     3  saturation ratio pursuant to section 493.1(a) and the saturation
     4  level is met or exceeded. Upon request for approval of an
     5  intermunicipal transfer of a license or issuance of an economic
     6  development license by an applicant, at least one public hearing
     7  shall be held by the municipal governing body for the purpose of
     8  receiving comments and recommendations of interested individuals
     9  residing within the municipality concerning the applicant's
    10  intent to transfer a license into the municipality or acquire an
    11  economic development license from the Pennsylvania Liquor
    12  Control Board. The governing body shall, within forty-five days
    13  of a request for approval, render a decision by ordinance or
    14  resolution to approve or disapprove the applicant's request for
    15  an intermunicipal transfer of a license or issuance of an
    16  economic development license. The municipality may approve the
    17  request. A decision by the governing body of the municipality to
    18  deny the request may not be appealed. A copy of the approval
    19  must be submitted with the license application. The approval
    20  requirement shall not apply to licenses transferred into a tax
    21  increment district created pursuant to the act of July 11, 1990
    22  (P.L.465, No.113), known as the "Tax Increment Financing Act,"
    23  located in a township of the second class that is located within
    24  a county of the second class if the district was created prior
    25  to December 31, 2002, and the governing body of the township has
    26  adopted an agreement at a public meeting that consents to the
    27  transfer of licenses into the tax increment district. Failure by
    28  the governing body of the municipality to render a decision
    29  within forty-five days of the applicant's request for approval
    30  shall be deemed an approval of the application in terms as
    20080H2170B3101                  - 5 -     

     1  presented unless the governing body has notified the applicant
     2  in writing of their election for an extension of time not to
     3  exceed sixty days. Failure by the governing body of the
     4  municipality to render a decision within the extended time
     5  period shall be deemed an approval of the application in terms
     6  as presented.
     7     * * *
     8     Section 3.  Section 493.1(a) of the act, amended December 9,
     9  2002 (P.L.1653, No.212), is amended to read:
    10     Section 493.1.  Rights of Municipalities Preserved.--(a)
    11  Nothing in this act shall be construed to preempt the right of
    12  any municipality to regulate zoning and enforce any other local
    13  ordinances and codes dealing with health and welfare issues.
    14  Further, a municipality may, in any zoning district where
    15  licensed facilities are permitted, establish a maximum
    16  saturation ratio for licensed establishments taking into account
    17  one or more of the following: type of licensed use, type of
    18  zoning district, the current saturation rate and the size of the
    19  zoning district.
    20     * * *
    21     Section 4.  This act shall take effect in 60 days.






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