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                                                      PRINTER'S NO. 2473

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1772 Session of 1990


        INTRODUCED BY SHUMAKER, GREENWOOD, FISHER, JUBELIRER, BELL,
           CORMAN, RHOADES, BAKER AND O'PAKE, SEPTEMBER 24, 1990

        REFERRED TO LAW AND JUSTICE, SEPTEMBER 24, 1990

                                     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 administrative law judges, licenses and
    18     licensing procedures.

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  Sections 212(c) and (h), 402, 433, 464 and 507 of
    22  the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
    23  Code, reenacted and amended June 29, 1987 (P.L.32, No.14), are
    24  amended to read:
    25     Section 212.  Office of Administrative Law Judge.--* * *


     1     (c)  Administrative law judges shall preside at all
     2  licensing, citation and other enforcement hearings required or
     3  permitted under this act.
     4     * * *
     5     (h)  [Nothing in this section or this act shall be construed
     6  or intended to change or affect the terms and conditions of
     7  employment or the employment security of hearing examiners
     8  employed by the board on the effective date of this section.]
     9  The chief administrative law judge shall designate as many
    10  administrative law judges as necessary to preside at licensing
    11  hearings. Administrative law judges designated under this
    12  subsection may not preside over citation or enforcement matters.
    13     Section 402.  License Districts; License Year; Hearings.--(a)
    14  The board shall, by regulation, divide the State into convenient
    15  license districts and shall hold hearings on applications for
    16  licenses and renewals thereof, as it deems necessary, at a
    17  convenient place or places in each of said districts, at such
    18  times as it shall fix, by regulation, for the purpose of hearing
    19  testimony for and against applications for new licenses and
    20  renewals thereof. The board shall hold a hearing on any
    21  application for a new hotel, club or restaurant liquor license
    22  or the transfer of any such license to a new location, upon the
    23  request of any person with standing to testify under subsection
    24  (b) if the request is filed with the board within the first
    25  fifteen days of posting of the notice of application pursuant to
    26  section 403(g). The board [may] shall provide for the holding of
    27  such hearings by [examiners learned in the law, to be appointed
    28  by the Governor, who shall not be subject to the "Civil Service
    29  Act." Such examiners] administrative law judges, who shall make
    30  a report to the board in each case with their recommendations.
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     1  The board shall, by regulation, fix the license year for each
     2  separate district so that the expiration dates shall be uniform
     3  in each of the several districts but staggered as to the State.
     4     (b)  Where a hearing is held in the case of an application
     5  for a new hotel, club or restaurant liquor license or an
     6  application for the transfer of a hotel, club or restaurant
     7  liquor license to a new location, the board shall permit
     8  residents residing within a radius of five hundred feet of the
     9  premises to testify at the hearing. The board and any [hearing
    10  officer] administrative law judge thereof shall give appropriate
    11  evidentiary weight to any testimony of such residents given at
    12  the hearing.
    13     Section 433.  Public Service Licenses.--The board may issue
    14  public service malt and brewed beverage licenses to a railroad,
    15  pullman or steamship company permitting malt or brewed beverages
    16  to be sold at retail in dining, club or buffet cars, or the
    17  dining compartments of steamships or vessels, for consumption on
    18  the trains, steamships or vessels wherever operated in the
    19  State, except when standing in stations or terminals within a
    20  municipality wherein retail sales are prohibited. Such licenses
    21  shall only be granted to reputable persons and for fit places.
    22  The board may issue a master license to railroad or pullman
    23  companies to cover the maximum number of cars which the company
    24  shall estimate that it will operate within the Commonwealth on
    25  any one day. Such licensees shall file monthly reports with the
    26  board showing the maximum number of cars operated at any time on
    27  any day during the preceding month, and if it appears that more
    28  cars have been operated than covered by its license it shall
    29  forthwith remit to the board the sum of ten dollars for each
    30  extra car so operated. The board shall have the power to suspend
    19900S1772B2473                  - 3 -

     1  or revoke any such licenses for cause after granting a hearing
     2  before [a hearing examiner to the licensee] an administrative
     3  law judge. Any person aggrieved by the decision of the board in
     4  refusing, suspending or revoking any such license may appeal to
     5  the Commonwealth Court in the same manner as provided in this
     6  article for appeals from refusals of licenses.
     7     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
     8  Transfers; Appeals.--The board may of its own motion, and shall
     9  upon the written request of any applicant for club, hotel or
    10  restaurant liquor license, or any applicant for any malt or
    11  brewed beverage license other than a public service license, or
    12  for renewal or transfer thereof, whose application for such
    13  license, renewal or transfer has been refused, fix a time and
    14  place for hearing of such application for license or for renewal
    15  or transfer thereof, notice of which hearing shall be mailed to
    16  the applicant at the address given in his application. Such
    17  hearing shall be before [a hearing examiner designated by the
    18  board] an administrative law judge. At such hearing, the board
    19  shall present its reasons for its refusal or withholding of
    20  license, renewal or transfer thereof. The applicant may appear
    21  in person or by counsel, may cross-examine the witnesses for the
    22  board and may present evidence which shall likewise be subject
    23  to cross-examination by the board. Such hearing shall be
    24  stenographically recorded. The [examiner] administrative law
    25  judge shall thereafter report to the board upon such hearing.
    26  The board shall thereupon grant or refuse the license, renewal
    27  or transfer thereof. In considering the renewal of a license,
    28  the board shall not refuse any such renewal on the basis of the
    29  propriety of the original issuance or any prior renewal of such
    30  license. If the board shall refuse such license, renewal or
    19900S1772B2473                  - 4 -

     1  transfer following such hearing, notice in writing of such
     2  refusal shall be mailed to the applicant at the address given in
     3  his application. In all such cases, the board shall file of
     4  record at least a brief statement in the form of an opinion of
     5  the reasons for the ruling or order and furnish a copy thereof
     6  to the applicant. Any applicant who has appeared at any hearing,
     7  as above provided, who is aggrieved by the refusal of the board
     8  to issue any such license or to renew or transfer any such
     9  license may appeal, or any church, hospital, charitable
    10  institution, school or public playground located within three
    11  hundred feet of the premises applied for, aggrieved by the
    12  action of the board in granting the issuance of any such license
    13  or the transfer of any such license, may take an appeal limited
    14  to the question of such grievance, within twenty days from date
    15  of refusal or grant, to the court of common pleas of the county
    16  in which the premises applied for is located. Such appeal shall
    17  be upon petition of the aggrieved party, who shall serve a copy
    18  thereof upon the board, whereupon a hearing shall be held upon
    19  the petition by the court upon ten days' notice to the board.
    20  The said appeal shall act as a supersedeas unless upon
    21  sufficient cause shown the court shall determine otherwise. The
    22  court shall hear the application de novo on questions of fact,
    23  administrative discretion and such other matters as are
    24  involved, at such time as it shall fix, of which notice shall be
    25  given to the board. The court shall either sustain or over-rule
    26  the action of the board and either order or deny the issuance of
    27  a new license or the renewal or transfer of the license to the
    28  applicant.
    29     Section 507.  Hearings on Licenses and Refusals.--(a)  The
    30  board may of its own motion, and shall upon the written request
    19900S1772B2473                  - 5 -

     1  of the enforcement bureau or of any applicant for license or for
     2  renewal thereof whose application for such license or renewal
     3  has been refused, fix a time and place for hearing of such
     4  application or renewal, notice of which hearing shall be sent to
     5  the bureau and to the applicant, by registered mail, at the
     6  address given in his application. Such hearing shall be before
     7  [the board, a member thereof, or] an [examiner designated by the
     8  board] administrative law judge.
     9     (b)  At such hearing, the board shall present its reasons for
    10  its refusal or withholding of such license or renewal thereof or
    11  the bureau shall present its objections to the granting or
    12  renewal of the license, as the case may be. The applicant may
    13  appear in person or by counsel, may cross-examine the witnesses
    14  for the board or the bureau, and may present evidence which
    15  shall likewise be subject to cross-examination by the board or
    16  the bureau. Such hearing shall be stenographically recorded. The
    17  [examiner] administrative law judge shall thereafter report to
    18  the board. The board shall thereafter grant or refuse the
    19  license or renewal thereof.
    20     (c)  Hearings and adjudications pursuant to this section
    21  shall be in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating
    22  to practice and procedure of Commonwealth agencies).
    23     Section 2.  By November 21, 1990, the Pennsylvania Liquor
    24  Control Board shall deposit with the Legislative Reference
    25  Bureau a notice explaining the implementation of this act.
    26     Section 3.  Equipment, materials and funds utilized in
    27  connection with the functions of hearing examiners are
    28  transferred to the Office of Administrative Law Judge.
    29     Section 4.  Hearing examiners shall have 30 days following
    30  the effective date of this act to complete work on hearings
    19900S1772B2473                  - 6 -

     1  conducted prior to the effective date of this act.
     2     Section 5.  This act shall take effect as follows:
     3         (1)  Section 2 and this section shall take effect
     4     immediately.
     5         (2)  The remainder of this act shall take effect January
     6     1, 1991.
















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