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        PRIOR PRINTER'S NO. 3886                      PRINTER'S NO. 3950

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2721 Session of 2000


        INTRODUCED BY McILHINNEY, STEIL, REINARD, DONATUCCI,
           L. I. COHEN, CORRIGAN, McNAUGHTON AND STEVENSON,
           SEPTEMBER 14, 2000

        AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 26, 2000

                                     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 issuance of hotel, restaurant and club
    18     liquor licenses, for transfer of restaurant licenses to
    19     deteriorated areas, for malt and brewed beverages retail
    20     licenses, for limiting the number of retail licenses to be
    21     issued in each municipality, for incorporated units of
    22     national veterans' organizations, for hearings and appeals
    23     upon refusal of licenses, renewals or transfers, for licenses
    24     not assignable, for transfer of licenses, for local option
    25     and for granting of liquor licenses in certain
    26     municipalities.

    27     The General Assembly of the Commonwealth of Pennsylvania
    28  hereby enacts as follows:
    29     Section 1.  Section 404 of the act of April 12, 1951 (P.L.90,

     1  No.21), known as the Liquor Code, reenacted and amended June 29,
     2  1987 (P.L.32, No.14), and amended December 21, 1998 (P.L.1202,
     3  No.155), is amended to read:
     4     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
     5  Licenses.--Upon receipt of the application and the proper fees,
     6  and upon being satisfied of the truth of the statements in the
     7  application that the applicant is the only person in any manner
     8  pecuniarily interested in the business so asked to be licensed
     9  and that no other person will be in any manner pecuniarily
    10  interested therein during the continuance of the license, except
    11  as hereinafter permitted, and that the applicant is a person of
    12  good repute, that the premises applied for meet all the
    13  requirements of this act and the regulations of the board, that
    14  the applicant seeks a license for a hotel, restaurant or club,
    15  as defined in this act, and that the issuance of such license is
    16  not prohibited by any of the provisions of this act, the board
    17  shall, in the case of a hotel or restaurant, grant and issue to
    18  the applicant a liquor license, and in the case of a club may,
    19  in its discretion, issue or refuse a license: Provided, however,
    20  That in the case of any new license or the transfer of any
    21  license to a new location the board may, in its discretion,
    22  grant or refuse such new license or transfer if such place
    23  proposed to be licensed is within three hundred feet of any
    24  church, hospital, charitable institution, school, or public
    25  playground, or if such new license or transfer is applied for a
    26  place which is within two hundred feet of any other premises
    27  which is licensed by the board: And provided further, That the
    28  board shall refuse any application for a new license or the
    29  transfer of any license to a new location if, in the board's
    30  opinion, such new license or transfer would be detrimental to
    20000H2721B3950                  - 2 -

     1  the welfare, health, peace and morals of the inhabitants of the
     2  neighborhood within a radius of five hundred feet of the place
     3  proposed to be licensed: And provided further, That prior to
     4  July 1, 1996, in any license district in a city of the first
     5  class, the board may, in its opinion, refuse any application for
     6  a new license or for any person-to-person transfer which shall
     7  include a change in stockholders involving ten per centum or
     8  more of all outstanding voting stock and/or less than ten per
     9  centum of all outstanding voting stock when such change involves
    10  a majority or controlling interest, of any license if the
    11  licensed premises is or would be within three hundred feet of
    12  any church, hospital, charitable institution, school or public
    13  playground or within two hundred feet of any other premises
    14  licensed by the board and if, in the opinion of the board, the
    15  licensed premises is or would be detrimental to the welfare,
    16  health, peace and morals of such church, hospital, school,
    17  public playground and/or the inhabitants of the neighborhood
    18  within a radius of five hundred feet of the licensed premises.
    19  This authority to refuse a person-to-person transfer in a city
    20  of the first class is in addition to and not in derogation of
    21  the authority of the board generally stated for all areas of
    22  this Commonwealth: And provided further, That the board shall
    23  have the discretion to refuse a license to any person or to any
    24  corporation, partnership or association if such person, or any
    25  officer or director of such corporation, or any member or
    26  partner of such partnership or association shall have been
    27  convicted or found guilty of a felony within a period of five
    28  years immediately preceding the date of application for the said
    29  license. The board shall refuse any application for a new
    30  license or the transfer of any license to a location where the
    20000H2721B3950                  - 3 -

     1  sale of liquid fuels or oil is conducted. The board may, in its
     2  discretion, refuse an application for an economic development
     3  license under section 461(b) of this act or an application for
     4  an inter-municipal transfer of a license if the board receives a
     5  protest from the receiving municipality. The receiving
     6  municipality of an inter-municipal transfer or economic
     7  development license under section 461(b)of this act may file a
     8  protest against the transfer of a license into its municipality
     9  and the receiving municipality shall have standing in a hearing
    10  to present testimony in support of or against the issuance or
    11  transfer of a license. Upon any opening in any quota, an
    12  application for a new license shall only be filed with the board
    13  for a period of six months following said opening.
    14     Section 2.  Section 408.13 of the act, amended May 31, 1996
    15  (P.L.312, No.49), is amended to read:
    16     [Section 408.13.  Transfer of Restaurant Licenses to
    17  Deteriorated Areas.--(a)  The board is hereby authorized to
    18  approve the transfer of restaurant liquor licenses from one
    19  municipality to another in the same county regardless of the
    20  quota limitations provided for in section 461, if sales of
    21  liquor and malt or brewed beverages are legal in such other
    22  municipality and if the place proposed to be licensed in the
    23  other municipality is located within a deteriorated area whose
    24  boundaries have been affixed pursuant to the criteria set forth
    25  in the act of December 1, 1977 (P.L.237, No.76), known as the
    26  "Local Economic Revitalization Tax Assistance Act," and as of
    27  the date of restaurant liquor license transfer is designated as
    28  a distressed community by the Department of Commerce pursuant to
    29  criteria set forth in the act of July 2, 1984 (P.L.520, No.105),
    30  known as the "Business Infrastructure Development Act," and in
    20000H2721B3950                  - 4 -

     1  which the cost of new construction must receive for real
     2  property at least five percentum tax exemption by more than one
     3  local taxing authority for a period of at least three years from
     4  the completion of the new construction and whose total area
     5  comprises at least fifty acres. Any such area in this section
     6  shall be referred to as a "LERTA zone." For purposes of this
     7  section, the board shall not, however, approve such a transfer
     8  if the license to be transferred is located in a municipality in
     9  which the number of licenses issued in the municipality does not
    10  exceed the quota limitations provided in section 461 or if such
    11  municipality has been designated as a resort area by either the
    12  board or any court. In addition, the board shall not approve the
    13  transfer of any license, if the license was issued under the
    14  resort area exception provided in section 461.
    15     (b)  For the purposes of this section, a local taxing
    16  authority shall mean a county, city, borough, incorporated town,
    17  township, institution district or school district having
    18  authority to levy real property taxes.
    19     (c)  For the purposes of this section, a municipal governing
    20  body shall mean a city, borough, incorporated town or township.
    21     (d)  Licenses approved for transfer under this section shall
    22  be limited to one licensed premises per one hundred thousand
    23  square feet of completed new construction in the LERTA zone
    24  which is climate-controlled and must receive at least five
    25  percentum for local property tax exemption by more than one
    26  taxing authority for a period of three years from the completion
    27  of construction, except that in no instance shall more than four
    28  restaurant liquor licenses be transferred to any single LERTA
    29  zone pursuant to this section. Licenses transferred pursuant to
    30  this section may be filed on a prior or final approval basis
    20000H2721B3950                  - 5 -

     1  pursuant to section 403.
     2     (e)  Before an application for transfer may be filed with the
     3  board under subsection (a) of this section, the applicant for
     4  transfer must receive the approval of the municipal governing
     5  body which specified the boundaries of the LERTA zone wherein
     6  the place proposed to be licensed is located. Within thirty days
     7  of a request for approval of a transfer of a restaurant liquor
     8  license to a LERTA zone by an applicant, at least one public
     9  hearing shall be held by the municipal governing body for the
    10  purpose of receiving the comments and recommendations of
    11  interested individuals residing within the LERTA zone concerning
    12  the applicant's intent to transfer a restaurant liquor license
    13  to the LERTA zone. The municipal governing body shall, within
    14  forty-five days of a request for approval, render a decision by
    15  ordinance or resolution to approve or disapprove the applicant's
    16  request to transfer a restaurant liquor license to the LERTA
    17  zone. A decision by the municipal governing body to approve the
    18  request is appealable to the board. A municipal governing body
    19  shall not approve any request to transfer a restaurant liquor
    20  license to a LERTA zone which does not meet the requirements
    21  relating to property tax exemption by more than one local taxing
    22  authority, total acreage of the LERTA zone, and the square
    23  footage of new construction receiving tax exemption contained in
    24  subsections (a) and (d) of this section.
    25     (f)  Every applicant for transfer of a restaurant liquor
    26  license under this section shall file a written application with
    27  the board and shall conform with the requirements of section
    28  102. Applications for transfer under this section must meet all
    29  the requirements of restaurant liquor license transfers not
    30  inconsistent with the provisions of this section but shall not
    20000H2721B3950                  - 6 -

     1  be subject to the two hundred-foot restriction set forth in
     2  section 404.
     3     (g)  An application for transfer filed under this section
     4  shall contain a copy of the ordinance or resolution of the
     5  municipal governing body approving the transfer of a restaurant
     6  liquor license to a LERTA zone. The applicant shall submit such
     7  other information as the board may by regulation require.
     8     (h)  Upon receipt of an application in proper form and the
     9  filing fee and upon being satisfied that the requirements of
    10  this section have been met, the board shall approve the transfer
    11  of the license.
    12     (i)  After transfer of the license into a LERTA zone under
    13  this section, the license may not be transferred to a location
    14  outside of the LERTA zone or outside of the boundaries by which
    15  the LERTA zone was originally established, except as provided
    16  for in section 468 and the selling price of the license, if any,
    17  shall remain fixed at the price at which the license was
    18  transferred to the LERTA zone.
    19     (j)  For the purposes of this section, the term "new
    20  construction" shall mean a construction project of additional
    21  square footage where local ordinance requires the application
    22  and approval of a building permit and where the actual
    23  construction requires the existence of a foundation or an
    24  additional foundation. The term shall not include the internal
    25  renovation or cosmetic change to an existing structure.]
    26     Section 3.  Section 432(d) of the act, amended April 29, 1994
    27  (P.L.212, No.30), is amended to read:
    28     Section 432.  Malt and Brewed Beverages Retail Licenses.--* *
    29  *
    30     (d)  The board shall, in its discretion, grant or refuse any
    20000H2721B3950                  - 7 -

     1  new license or the transfer of any license to a new location if
     2  such place proposed to be licensed is within three hundred feet
     3  of any church, hospital, charitable institution, school, or
     4  public playground, or if such new license or transfer is applied
     5  for a place which is within two hundred feet of any other
     6  premises which is licensed by the board. The board shall refuse
     7  any application for a new license or the transfer of any license
     8  to a new location if, in the board's opinion, such new license
     9  or transfer would be detrimental to the welfare, health, peace
    10  and morals of the inhabitants of the neighborhood within a
    11  radius of five hundred feet of the place 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: And provided further, That the board
    15  shall have the discretion to refuse a license to any person or
    16  to any corporation, partnership or association if such person,
    17  or any officer or director of such corporation, or any member or
    18  partner of such partnership or association shall have been
    19  convicted or found guilty of a felony within a period of five
    20  years immediately preceding the date of application for the said
    21  license. The board may, in its discretion, refuse an application
    22  for an economic development license under section 461(b) of this
    23  act or an application for an inter-municipal transfer of a
    24  license if the board receives a protest from the receiving
    25  municipality. The receiving municipality of an inter-municipal
    26  transfer or an economic development license under section 461(b)
    27  of this act, may file a protest against the approval for
    28  issuance of a license for economic development or an inter-
    29  municipal transfer of a license into its municipality and such
    30  municipalities shall have standing in a hearing to present
    20000H2721B3950                  - 8 -

     1  testimony in support of or against the issuance or transfer of a
     2  license. Upon any opening in any quota, an application for a new
     3  license shall only be filed with the board for a period of six
     4  months following said opening.
     5     * * *
     6     Section 4.  Section 461 heading, (a) and (b) of the act are
     7  amended and the section is amended by adding subsections to
     8  read:
     9     Section 461.  Limiting Number of Retail Licenses To Be Issued
    10  In Each [Municipality] County.--(a)  [No licenses shall
    11  hereafter be granted by the board for the retail sale of malt or
    12  brewed beverages or the retail sale of liquor and malt or brewed
    13  beverages in excess of one of such licenses of any class for
    14  each three thousand inhabitants in any municipality, exclusive
    15  of licenses granted to airport restaurants, municipal golf
    16  courses, hotels, privately-owned public golf courses and units
    17  of nonprofit nationally chartered clubs, as defined in this
    18  section, whose applications are filed on or before June 30,
    19  2000, and except those units falling under section 461.1, and
    20  clubs; but at least one such license may be granted in each
    21  municipality and in each part of a municipality where such
    22  municipality is split so that each part thereof is separated by
    23  another municipality, except in municipalities where the
    24  electors have voted against the granting of any retail licenses
    25  and except in that part of a split municipality where the
    26  electors have voted against the granting of any retail licenses.
    27  Nothing contained in this section shall be construed as denying
    28  the right to the board to renew or to transfer existing retail
    29  licenses of any class notwithstanding that the number of such
    30  licensed places in a municipality shall exceed the limitation
    20000H2721B3950                  - 9 -

     1  hereinbefore prescribed; but where such number exceeds the
     2  limitation prescribed by this section, no new license, except
     3  for hotels, municipal golf courses, airport restaurants,
     4  privately-owned public golf courses, privately-owned private
     5  golf course licensees and units of nonprofit nationally
     6  chartered clubs, as defined in this section, whose applications
     7  are filed on or before June 30, 2000, and except those units
     8  falling under section 461.1, shall be granted so long as said
     9  limitation is exceeded.]
    10     Except as provided in this section, no additional restaurant,
    11  eating place retail dispenser or club licenses shall be issued
    12  within the county if the total number of restaurant and eating
    13  place retail dispenser licenses is greater than one license for
    14  each three thousand inhabitants in the county. The board may
    15  issue liquor licenses to airport restaurants, municipal golf
    16  courses, hotels, privately owned private golf courses, privately
    17  owned public golf courses and to any other entity which the act
    18  specifically exempts from the limitations provided in this
    19  section. When determining the number of restaurant and eating
    20  place retail dispenser licenses issued in a county for the
    21  purposes of this section, licenses exempted from this limitation
    22  and club licenses shall not be considered. Inhabitants of dry
    23  municipalities shall be considered when determining the
    24  population in a county. Licenses shall not be issued or
    25  transferred into municipalities where such licenses are
    26  prohibited pursuant to local referendum in accordance with
    27  section 472 of this act.
    28     (a.1)  The following provisions shall apply to application
    29  for transfer from one municipality to another within the same
    30  county:
    20000H2721B3950                 - 10 -

     1     (1)  In the calendar year 2001, applications for inter-
     2  municipal transfer of licenses must be made to the board prior
     3  to March 1, 2001. In each county of the Commonwealth, the board,
     4  in its discretion, may approve one quarter of the number of
     5  applications for inter-municipal transfer or one application for
     6  inter-municipal transfer in each county, whichever is greater.
     7     (2)  In the calendar year 2002, applications for inter-
     8  municipal transfer of licenses must be made to the board prior
     9  to March 1, 2002. In each county in the Commonwealth, the board,
    10  in its discretion, may approve one third of the number of
    11  applications for inter-municipal transfer or two applications
    12  for inter-municipal transfer in each county, whichever is
    13  greater.
    14     (3)  In the calendar year 2003, applications for inter-
    15  municipal transfer of licenses shall be made to the board prior
    16  to March 1, 2003. In each county in the Commonwealth, the board,
    17  in its discretion, may approve half of the number of
    18  applications for inter-municipal transfer or three applications
    19  for inter-municipal transfer in each county, whichever is
    20  greater.
    21     (4)  When determining which application for inter-municipal    <--
    22  transfer to approve under subsection (a.1)(1), (2) and (3), the
    23  board shall consider the following factors in making a
    24  determination:
    25     (i)  The ratio of licenses to population in the receiving
    26  municipality.
    27     (ii)  Experience of the applicant in the restaurant or retail
    28  food service industry.
    29     (iii)  Any other relevant factor reasonably related to the
    30  transfer of a liquor license from one municipality to another.
    20000H2721B3950                 - 11 -

     1     (4)  FOR INTER-MUNICIPAL TRANSFERS UNDER SUBSECTION (A.1)(1),  <--
     2  (2) AND (3), THE BOARD SHALL APPROVE LICENSE APPLICATIONS FOR
     3  INTER-MUNICIPAL TRANSFER BY WAY OF RANDOM DRAWING FROM THE
     4  APPLICATIONS RECEIVED DURING THE FILING PERIOD.
     5     (5)  In calendar year 2004 and thereafter, applications for
     6  inter-municipal transfer of licenses may be made at any time.
     7     (6)  Licenses approved for inter-municipal transfer may not
     8  be transferred from the receiving municipality for a period of
     9  five years after the date that the licenses LICENSED premises     <--
    10  are operational in the receiving municipality.
    11     (b)  [The board shall have the power to increase the number
    12  of licenses in any such municipality which in the opinion of the
    13  board is located within a resort area.] The board may issue
    14  restaurant and eating place retail dispenser licenses and renew
    15  licenses issued under this subsection without regard to the
    16  quota restrictions set forth in subsection (a) for the purpose
    17  of economic development in a municipality under the following
    18  conditions:
    19     (1)  A license may only be issued under this subsection if
    20  the applicant has exhausted reasonable means for obtaining a
    21  suitable liquor license within the county.
    22     (2)  The proposed licensed premises must be within an area in  <--
    23  which any of the following apply:
    24     (i)  The seasonal influx of transients causes the population
    25  within a two and one-half mile radius of the proposed licensed
    26  establishment to increase to the extent that existing licenses
    27  within the area do not adequately meet the needs of the
    28  population and the proposed facilities are used primarily by
    29  temporary transients or tourists, not by area residents.
    30     (ii)  The proposed licensed premises is located within a
    20000H2721B3950                 - 12 -

     1  municipality which has experienced an average annual growth in
     2  population of more than one and one-quarter per centum (1.25%)
     3  over the previous five years and is also located within a county
     4  which has experienced an average annual growth of more than
     5  seventy-five one hundredths per centum (0.75%) over the previous
     6  five years and existing licenses within the municipality do not
     7  adequately meet the needs of the population. For the purposes of
     8  this clause only, official population estimates provided by the
     9  United States Census Bureau to the Commonwealth shall be used to
    10  determine population growth.
    11     (iii) (2)  The proposed licensed premises is to MUST be        <--
    12  located within a keystone opportunity zone established under the
    13  authority of the act of October 6, 1998 (P.L.705, No.92), known
    14  as the Pennsylvania Keystone Opportunity Zone Act, or is located
    15  within an area designated as an enterprise zone by the
    16  Department of Community and Economic Development, and existing
    17  licenses within the municipality do not adequately meet the
    18  needs of the population.
    19     (3)  The board may issue no more than two licenses total in
    20  each county of the first through third class and no more than
    21  one license total in each county of the fourth through eighth
    22  class, per year.
    23     (4)  An applicant under this subsection shall be required to
    24  sell food and non-alcoholic beverages equal to seventy per
    25  centum (70%) or more of its combined gross sales of food and
    26  alcoholic beverages.
    27     (5)  In addition to license fees provided under existing law
    28  for the type of license issued, an applicant shall be required
    29  to pay an initial application surcharge as follows:
    30     (i)  Fifty thousands dollars ($50,000) if the licensed
    20000H2721B3950                 - 13 -

     1  premises is located in a county of the first through third
     2  class.
     3     (ii)  Twenty-five thousand dollars ($25,000) if the licensed
     4  premises is located in a county of the fourth through eighth
     5  class.
     6  The initial application surcharge shall be refunded to the
     7  applicant if the board refuses to issue a provisional license
     8  under subsection (b.1).
     9     (6)  A license issued under this subsection and a provisional
    10  license issued under subsection (b.1) shall be nontransferable
    11  with regard to ownership or location.
    12     (7)  An appeal of the board's decision refusing to grant or
    13  renew a license under this subsection shall not act as a
    14  supersedeas of decision of the board if the decision is based,
    15  in whole or in part, on the licensee's failure to demonstrate
    16  that its food and non-alcoholic beverages were at least seventy
    17  per centum (70%) of its combined gross sales of food and
    18  alcoholic beverages.
    19     (b.1)  Qualified applicants under subsection (b) shall
    20  receive a provisional license for one hundred twenty days,
    21  exclusive of period of safekeeping. After ninety days from the
    22  date of issuance, the licensee may file an application for a
    23  permanent license. A license shall be issued if the licensee
    24  establishes that for ninety consecutive days from the date of
    25  initial issue, its sales of food and non-alcoholic beverages
    26  equal at least seventy per centum (70%) of its combined gross
    27  sales of food and alcoholic beverages. Licensees shall not be
    28  subject to citation by the Enforcement Bureau for a violation of
    29  the requirement that food and non-alcoholic beverages equal at
    30  lease seventy (70%) of the combined gross sales of food and
    20000H2721B3950                 - 14 -

     1  alcoholic beverages during the provisional licensing period.
     2     (b.2)  Neither a license for economic development nor an
     3  inter-municipal transfer of a license may be approved in a
     4  municipality where the total number of restaurant liquor
     5  licenses and eating place retail dispenser licenses in the
     6  receiving municipality exceeds one license per one thousand
     7  inhabitants without the approval of the municipal governing body
     8  for the receiving municipality by ordinance or resolution.
     9     Section 5.  Section 461.1(a) of the act is amended to read:
    10     Section 461.1.  Incorporated Units of National Veterans'
    11  Organizations.--(a)  The board shall have the authority to issue
    12  new licenses to incorporated units of national veterans'
    13  organizations, as defined herein, in [municipalities] counties
    14  where the number of licenses exceeds the limitation prescribed
    15  by section 461.
    16     * * *
    17     Section 6.  Section 464 of the act, amended October 5, 1994
    18  (P.L.522, No.77), is amended to read:
    19     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
    20  Transfers; Appeals.--The board may of its own motion, and shall
    21  upon the written request of any applicant for club, hotel or
    22  restaurant liquor license, or any applicant for any malt or
    23  brewed beverage license other than a public service license, or
    24  for renewal or transfer thereof, or for the renewal of an
    25  amusement permit, whose application for such license, renewal or
    26  transfer, or the renewal of an amusement permit, has been
    27  refused, fix a time and place for hearing of such application
    28  for license or for renewal or transfer thereof, or the renewal
    29  of an amusement permit, notice of which hearing shall be mailed
    30  to the applicant at the address given in his application. Such
    20000H2721B3950                 - 15 -

     1  hearing shall be before a hearing examiner designated by the
     2  board. At such hearing, the board shall present its reasons for
     3  its refusal or withholding of license, renewal or transfer
     4  thereof, or its refusal for renewal of an amusement permit. The
     5  applicant may appear in person or by counsel, may cross-examine
     6  the witnesses for the board and may present evidence which shall
     7  likewise be subject to cross-examination by the board. Such
     8  hearing shall be stenographically recorded. The hearing examiner
     9  shall thereafter report, with the examiner's recommendation, to
    10  the board in each case. The board shall thereupon grant or
    11  refuse the license, renewal or transfer thereof or the renewal
    12  of an amusement permit. In considering the renewal of a license
    13  or amusement permit, the board shall not refuse any such renewal
    14  on the basis of the propriety of the original issuance or any
    15  prior renewal of such license or amusement permit. If the board
    16  shall refuse such license, renewal or transfer or the renewal of
    17  an amusement permit, following such hearing, notice in writing
    18  of such refusal shall be mailed to the applicant at the address
    19  given in his application. In all such cases, the board shall
    20  file of record at least a brief statement in the form of an
    21  opinion of the reasons for the ruling or order and furnish a
    22  copy thereof to the applicant. Any applicant who has appeared at
    23  any hearing, as above provided, who is aggrieved by the refusal
    24  of the board to issue any such license or to renew or transfer
    25  any such license or to renew any amusement permit may appeal, or
    26  any church, hospital, charitable institution, school or public
    27  playground located within three hundred feet of the premises
    28  applied for, aggrieved by the action of the board in granting
    29  the issuance of any such license or the transfer of any such
    30  license, may take an appeal limited to the question of such
    20000H2721B3950                 - 16 -

     1  grievance, within twenty days from date of refusal or grant, to
     2  the court of common pleas of the county in which the premises or
     3  permit applied for is located. If the application is for an
     4  economic development license under section 461(b) or the inter-
     5  municipal transfer of a license, the governing body of the
     6  municipality receiving the new license or the transferred
     7  license may file an appeal of the board decision granting the
     8  license, within twenty days of the date of the board's decision,
     9  to the court of common pleas of the county in which the proposed
    10  premises is located. Such appeal shall be upon petition of the
    11  aggrieved party, who shall serve a copy thereof upon the board,
    12  whereupon a hearing shall be held upon the petition by the court
    13  upon ten days' notice to the board. The said appeal shall act as
    14  a supersedeas unless upon sufficient cause shown the court shall
    15  determine otherwise. The court shall hear the application de
    16  novo on questions of fact, administrative discretion and such
    17  other matters as are involved, at such time as it shall fix, of
    18  which notice shall be given to the board. The court shall either
    19  sustain or over-rule the action of the board and either order or
    20  deny the issuance of a new license or the renewal or transfer of
    21  the license or the renewal of an amusement permit to the
    22  applicant.
    23     Section 7.  Section 468(a) of the act is amended to read:
    24     Section 468.  Licenses Not Assignable; Transfers.--(a)  (1)
    25  Licenses issued under this article may not be assigned. The
    26  board, upon payment of the transfer filing fee, is hereby
    27  authorized to transfer any license issued by it under the
    28  provisions of this article from one person to another or from
    29  one place to another, or both, within the same [municipality,
    30  and if the applicant is a unit of a nonprofit nationally
    20000H2721B3950                 - 17 -

     1  chartered club or a volunteer fire company or an affiliated
     2  organization of a volunteer fire company, the board is hereby
     3  authorized to transfer such license to a place in any other
     4  municipality within the same county if the sale of liquor or
     5  malt and brewed beverages are legal in such other municipality
     6  as the board may determine. Prior to the approval of an
     7  application for transfer by a unit of a nonprofit nationally
     8  chartered club the board shall make an affirmative finding, upon
     9  proof submitted by the applicant, and after investigation by the
    10  board, that at the time the application for transfer is made the
    11  club continues to hold a valid national charter and continues to
    12  function in fact as a club as defined in section 102. The board,
    13  in its discretion, may transfer an existing restaurant retail
    14  dispenser or club license from one municipality to another in
    15  the same county regardless of the quota limitations provided for
    16  in this act, if sales of liquor or malt and brewed beverages are
    17  legal in such other municipality and if the restaurant retail
    18  dispenser or club lost the use of the building in which it was
    19  located due to governmental exercise of the right of eminent
    20  domain and no other suitable building can be found in the first
    21  municipality] county.
    22     [(2)  (i)  The board, in its discretion, may transfer an
    23  existing restaurant liquor license from one municipality to
    24  another municipality of the same county or in a contiguous
    25  county regardless of the quota limitations provided for in this
    26  act if:
    27     (A)  sales of liquor or malt and brewed beverages are legal
    28  in such other municipality;
    29     (B)  the location in the same county or a contiguous county
    30  is an indoor bowling center; and
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     1     (C)  the restaurant liquor license is currently located in an
     2  area which has been designated as blighted.
     3     (ii)  For purposes of this subsection, a property shall be
     4  determined to be blighted if it is any of the following:
     5     (A)  real property within or outside a certified
     6  redevelopment area determined to be blighted property under the
     7  act of May 24, 1945 (P.L.991, No.385), known as the "Urban
     8  Redevelopment Law";
     9     (B)  any property declared to be blighted under the "Urban
    10  Redevelopment Law" by a Pennsylvania local government or its
    11  agency; or
    12     (C)  any property which is located within a redevelopment
    13  area, when one of the stated purposes of designation as a
    14  redevelopment area is to remove blight, designated by a local
    15  government or its agencies under the "Urban Redevelopment Law."
    16     (iii)  If a restaurant liquor license is transferred to an
    17  indoor bowling center located outside of the municipality in
    18  which the license was originally issued, that restaurant liquor
    19  license may not be transferred within five years of the date of
    20  initial transfer unless the subsequent transfer is for use in an
    21  indoor bowling center. In the case of distributor and importing
    22  distributor licenses, the board may transfer any such license
    23  from its place in a municipality to a place in any other
    24  municipality within the same county, or from one place to
    25  another place within the same municipality, or exchange a
    26  distributor license for an importing distributor license or an
    27  importing distributor license for a distributor license, if the
    28  building for which the license is to be issued has, in the case
    29  of an importing distributor license, an area under one roof of
    30  two thousand five hundred square feet and, in the case of a
    20000H2721B3950                 - 19 -

     1  distributor license, an area under one roof of one thousand
     2  square feet: And provided, That, in the case of all transfers of
     3  distributor or importing distributor licenses, whether from a
     4  place within the same municipality to another place within the
     5  same municipality or from a place in a municipality to a place
     6  in any other municipality within the same county, and, in the
     7  case of an exchange of a distributor license for an importing
     8  distributor license or an importing distributor license for a
     9  distributor license, the premises to be affected by the transfer
    10  or exchange shall contain an office separate and apart from the
    11  remainder of the premises to be licensed for the purpose of
    12  keeping records, required by the board, adequate toilet
    13  facilities for employes of the licensee and an entrance on a
    14  public thoroughfare: Provided, however, That in the event that
    15  the majority of the voting electors of a municipality, at an
    16  election held under the provisions of any law so empowering them
    17  to do, shall vote against the issuance of distributor or
    18  importing distributor licenses in such municipality, the board
    19  is hereby authorized to transfer any such distributor or
    20  importing distributor license from its place in such
    21  municipality to a place in any other municipality within the
    22  same county, upon application prior to the expiration of any
    23  such license and upon payment of the transfer filing fee and the
    24  execution of a new bond; but no transfer shall be made to a
    25  person who would not have been eligible to receive the license
    26  originally nor for the transaction of business at a place for
    27  which the license could not lawfully have been issued
    28  originally, nor, except as herein provided, to a place as to
    29  which a license has been revoked.]
    30     (3)  No license shall be transferred to any place or property
    20000H2721B3950                 - 20 -

     1  upon which is located as a business the sale of liquid fuels and
     2  oil. Except in cases of emergency such as death, serious
     3  illness, or circumstances beyond the control of the licensee, as
     4  the board may determine such circumstances to justify its
     5  action, transfers of licenses may be made only at times fixed by
     6  the board. In the case of the death of a licensee, the board may
     7  transfer the license to the surviving spouse or personal
     8  representative or to a person designated by him. From any
     9  refusal to grant a transfer or upon the grant of any transfer,
    10  the party aggrieved shall have the right of appeal to the proper
    11  court in the manner hereinbefore provided.
    12     * * *
    13     Section 8.  Section 472 of the act is amended by adding a
    14  subsection to read:
    15     Section 472.  Local Option.--* * *
    16     (d)  Nothing in this section shall prohibit the board from
    17  approving the transfer of a retail license from a municipality
    18  which has voted to prohibit the issuance of such a license to a
    19  location in another municipality in the same county which allows
    20  the issuance of that type of license.
    21     Section 9.  Section 472.2 of the act, amended November 10,
    22  1999 (P.L.514, No.47), is amended to read:
    23     Section 472.2.  Granting of Liquor Licenses in Certain
    24  Municipalities.--[(a)  In any municipality which has by
    25  referendum approved the granting of malt and brewed beverage
    26  retail dispensers' licenses and has also thereafter, in a
    27  separate and subsequent referendum approved the granting of
    28  liquor licenses,  the board may issue to an applicant holding a
    29  malt and brewed beverage retail dispenser's license, a liquor
    30  license: Provided, That the applicant surrenders for
    20000H2721B3950                 - 21 -

     1  cancellation the malt and brewed beverage retail dispenser's
     2  license. The board shall not issue such a liquor license in
     3  excess of one for each three thousand residents in said
     4  municipality.
     5     (b)  Nothing in this section shall otherwise affect any
     6  existing malt and brewed beverage retail dispenser's license.
     7     (c)  The board may not accept, act upon, or grant an
     8  application for a liquor license under this section, when such
     9  application, if granted, would cause an excess in the aforesaid
    10  quota of one liquor license for each three thousand residents in
    11  said municipality. Nor shall an applicant under this section be
    12  required to surrender his malt and brewed beverage retail
    13  dispenser's license until and unless the board has granted his
    14  application for a liquor license.] The board may issue a
    15  restaurant liquor license to an applicant holding an eating
    16  place retail dispenser's license in a municipality which, by
    17  referendum, approved the granting of eating place retail
    18  dispenser licenses and, in a subsequent referendum, approved the
    19  granting of restaurant liquor licenses. This subsection applies
    20  to eating place retail dispenser licenses which were issued in
    21  the municipality prior to the referendum that allowed the
    22  issuance of restaurant liquor licenses. If the board grants the
    23  restaurant liquor license, the applicant must immediately
    24  surrender for cancellation its eating place retail dispenser
    25  license.
    26     Section 10.  This act shall take effect as follows:
    27         (1)  The amendment of section 468(a)(2) of the act shall
    28     take effect July 1, 2001.
    29         (2)  This section shall take effect immediately.
    30         (3)  The remainder of this act shall take effect January
    20000H2721B3950                 - 22 -

     1     1, 2001.




















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