PRINTER'S NO. 1184
No. 1074 Session of 1987
INTRODUCED BY FREIND, FOX, BOOK, REBER, BUNT, J. TAYLOR,
DISTLER, HECKLER, E. Z. TAYLOR, D. W. SNYDER, HAGARTY, MERRY,
REINARD AND S. H. SMITH, APRIL 8, 1987
REFERRED TO COMMITTEE ON LIQUOR CONTROL, APRIL 8, 1987
AN ACT
1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
2 act relating to alcoholic liquors, alcohol and malt and
3 brewed beverages; amending, revising, consolidating and
4 changing the laws relating thereto; regulating and
5 restricting the manufacture, purchase, sale, possession,
6 consumption, importation, transportation, furnishing, holding
7 in bond, holding in storage, traffic in and use of alcoholic
8 liquors, alcohol and malt and brewed beverages and the
9 persons engaged or employed therein; defining the powers and
10 duties of the Pennsylvania Liquor Control Board; providing
11 for the establishment and operation of State liquor stores,
12 for the payment of certain license fees to the respective
13 municipalities and townships, for the abatement of certain
14 nuisances and, in certain cases, for search and seizure
15 without warrant; prescribing penalties and forfeitures;
16 providing for local option, and repealing existing laws,"
17 abolishing the Pennsylvania Liquor Control Board;
18 establishing the Department of Liquor Control; providing for
19 a Liquor Hearing Commission; and imposing powers and duties.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. The definition of "board" in section 102 of the
23 act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code,
24 is amended and the section is amended by adding definitions to
25 read:
26 Section 102. Definitions.--The following words or phrases,
1 unless the context clearly indicates otherwise, shall have the
2 meanings ascribed to them in this section:
3 * * *
4 ["Board" shall mean the Pennsylvania Liquor Control Board.]
5 "Board," or "Pennsylvania Liquor Control Board" or "Liquor
6 Control Board" shall mean the Department of Liquor Control.
7 * * *
8 "Commission" shall mean the Liquor Hearing Commission.
9 * * *
10 "Department" shall mean the Department of Liquor Control.
11 * * *
12 "Secretary" shall mean the Secretary of Liquor Control.
13 * * *
14 Section 2. Sections 201, 202, 203, 204, 205 and 206 of the
15 act are repealed.
16 Section 3. The act is amended by adding sections to read:
17 Section 201.1. Department of Liquor Control.--(a) The
18 Department of Liquor Control is hereby established as an
19 executive department of the executive branch of the
20 Commonwealth.
21 (b) The Governor shall, in accordance with the provisions of
22 section 207.1 of the act of April 9, 1929 (P.L.177, No.175),
23 known as "The Administrative Code of 1929," appoint a Secretary
24 of Liquor Control who shall serve as a cabinet officer at his
25 pleasure.
26 (c) Except for the powers and duties conferred upon the
27 commission, the secretary shall, either personally or by deputy,
28 or by duly authorized agent or employe of the department,
29 exercise the powers and perform the duties by law heretofore
30 vested in and imposed upon the board and shall exercise any
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1 other powers and perform any other duties vested in and imposed
2 upon the department.
3 (d) The salary of the Secretary of Liquor Control shall be
4 sixty-five thousand dollars ($65,000) annually.
5 (e) Except as otherwise expressly provided by law, the
6 department shall be subject to all of the provisions of the act
7 of April 9, 1929 (P.L.177, No.175), known as "The Administrative
8 Code of 1929," which apply generally to administrative
9 departments.
10 (f) The department shall be deemed an executive agency for
11 purposes of the act of October 15, 1980 (P.L.950, No.164), known
12 as the "Commonwealth Attorneys Act."
13 Section 202.1. Liquor Hearing Commission.--(a) The Liquor
14 Hearing Commission shall consist of three persons, who shall be
15 appointed by the Governor with the advice and consent of a
16 majority of the members elected to the Senate. The Governor
17 shall designate the chairman of the commission. The
18 commissioners shall devote full-time to the work of the
19 commission.
20 (b) The members of the commission shall serve for a term of
21 six years or until their respective successors are duly
22 appointed and qualified, but commission members may not hold
23 over for more than six months beyond the expiration of their
24 term of office unless such members are again appointed and
25 qualified in the manner prescribed by the act. Of the persons
26 initially appointed, the chairman shall serve for a term of six
27 years and the other two members for terms of four years and two
28 years respectively.
29 (c) The commission is hereby placed and made a departmental
30 administrative commission in the department and, except as
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1 otherwise provided by law, shall be subject to all the
2 provisions of the act of April 9, 1929 (P.L.177, No.175), known
3 as "The Administrative Code of 1929," which apply generally to
4 departmental administrative commissions.
5 (d) The commission, with the approval of the Governor, shall
6 appoint a secretary to the commission who shall receive such
7 salary as the commission, with the approval of the Governor,
8 shall determine.
9 (e) In addition to any powers and duties conferred by this
10 amendatory act, the commission shall have the power and its duty
11 shall be to hold hearings and issue adjudications heretofore
12 possessed by the Liquor Control Board in regard to the
13 suspension and revocation of all licenses and permits authorized
14 to be issued under this act and the regulations of the
15 department and the imposition of all fines on licensees and
16 permittees under this act. Such hearing shall be before the
17 commission or a department hearing examiner designated by the
18 commission for this purpose. The hearing examiner shall
19 thereafter report to the commission upon such hearing. The
20 commission shall thereupon adjudicate the matter.
21 (f) The commission may employ, with the concurrence of the
22 secretary, such other personnel, as are necessary in the
23 exercise of its functions. Nothing in this section shall
24 authorize the commission to appoint hearing examiners.
25 Section 202.2. Appointment of Hearing Examiners.--All
26 hearing examiners shall be appointed by the Governor. Every
27 person appointed to the position of hearing examiner after the
28 effective date of this section shall be a person qualified and
29 authorized to practice law in the Commonwealth. Any hearing
30 examiner holding the position or appointed to the position of
19870H1074B1184 - 4 -
1 hearing examiner on and after the effective date of this act
2 shall only be removed as a hearing examiner for cause or for
3 reasons of economy.
4 Section 4. Section 207(d) and (e) of the act, amended
5 January 13, 1966 (1965 P.L.1301, No.518), are amended and the
6 section is amended by adding a subsection to read:
7 Section 207. General Powers of Board.--Under this act, the
8 board shall have the power and its duty shall be:
9 * * *
10 (d) To grant[, issue, suspend and revoke] and issue all
11 licenses and permits authorized to be issued under this act and
12 the regulations of the board and impose fines on licensees
13 licensed under this act.
14 (e) Through the Department of [Property and Supplies]
15 General Services as agent, to lease and furnish and equip such
16 buildings, rooms and other accommodations as shall be required
17 for the operation of this act.
18 * * *
19 (k) To investigate violations and, if the investigation
20 produces sufficient evidence of a violation that falls within
21 the jurisdiction of the commission, to bring an action before
22 the commission.
23 Section 5. Section 210 of the act is amended to read:
24 Section 210. Restrictions on Members of the [Board]
25 Department and Employes of Commonwealth.--(a) [A member or
26 employe] The Secretary of Liquor Control and the officers and
27 employes of the [board] department, including the commission,
28 shall not be directly or indirectly interested or engaged in any
29 other business or undertaking dealing in liquor, alcohol, or
30 malt or brewed beverages, whether as owner, part owner, partner,
19870H1074B1184 - 5 -
1 member of syndicate, shareholder, agent or employe, and whether
2 for his own benefit or in a fiduciary capacity for some other
3 person.
4 (b) [No member or employe of the board nor] The Secretary of
5 Liquor Control and the officers and employes of the department,
6 including the commission, and any employe of the Commonwealth
7 shall not solicit or receive, directly or indirectly, any
8 commission, remuneration or gift whatsoever, from any person
9 having sold, selling or offering liquor or alcohol for sale to
10 the [board] department for use in Pennsylvania Liquor Stores.
11 Section 6. Section 404 of the act, amended September 2, 1971
12 (P.L.429, No.103), is amended to read:
13 Section 404. Issuance of Hotel, Restaurant and Club Liquor
14 Licenses.--(a) Upon receipt of the application, the proper fees
15 and bond, and upon being satisfied of the truth of the
16 statements in the application that the applicant is the only
17 person in any manner pecuniarily interested in the business so
18 asked to be licensed and that no other person will be in any
19 manner pecuniarily interested therein during the continuance of
20 the license, except as hereinafter permitted, and that the
21 applicant is a person of good repute, that the premises applied
22 for meet all the requirements of this act and the regulations of
23 the board, that the applicant seeks a license for a hotel,
24 restaurant or club, as defined in this act, and that the
25 issuance of such license is not prohibited by any of the
26 provisions of this act, the board shall, in the case of a hotel
27 or restaurant, grant and issue to the applicant a liquor
28 license, and in the case of a club may, in its discretion, issue
29 or refuse a license: Provided, however, That in the case of any
30 new license or the transfer of any license to a new location the
19870H1074B1184 - 6 -
1 board may, in its discretion, grant or refuse such new license
2 or transfer if such place proposed to be licensed is within
3 three hundred feet of any church, hospital, charitable
4 institution, school, or public playground, or if such new
5 license or transfer is applied for a place which is within two
6 hundred feet of any other premises which is licensed by the
7 board, or if such new license or transfer is applied for a place
8 where the principal business is the sale of liquid fuels and
9 oil: And provided further, That the board shall refuse any
10 application for a new license or the transfer of any license to
11 a new location if, in the board's opinion, such new license or
12 transfer would be detrimental to the welfare, health, peace and
13 morals of the inhabitants of the neighborhood within a radius of
14 five hundred feet of the place proposed to be licensed: And
15 provided further, That the board shall not issue new licenses in
16 any license district more than twice each license year,
17 effective from specific dates fixed by the board, and new
18 licenses shall not be granted, except for hotels as defined in
19 this act, unless the application therefor shall have been filed
20 at least thirty days before the effective date of the license:
21 And provided further, That nothing herein contained shall
22 prohibit the board from issuing a new license for the balance of
23 any unexpired term in any license district to any applicant in
24 such district, who shall have become eligible to hold such
25 license as the result of legislative enactment, when such
26 enactment shall have taken place during the license term of that
27 district for which application is made or within the thirty days
28 immediately preceding such term, nor shall anything herein
29 contained prohibit the board from issuing at any time a new
30 license for an airport restaurant, or municipal golf course, as
19870H1074B1184 - 7 -
1 defined in section 461 of this act, for the balance of the
2 unexpired license term in any license district: And provided
3 further, That the board shall have the discretion to refuse a
4 license to any person or to any corporation, partnership or
5 association if such person, or any officer or director of such
6 corporation, or any member or partner of such partnership or
7 association shall have been convicted or found guilty of a
8 felony within a period of five years immediately preceding the
9 date of application for the said license.
10 (b) No application for a new license or the transfer of an
11 existing license to a new location shall be approved unless
12 satisfactory evidence is received that the applicant has caused
13 notice to be published once a week for three consecutive weeks
14 in a newspaper of general circulation as defined by 45 Pa.C.S. §
15 101 (relating to definitions), published and circulated in the
16 affected municipality or published in a newspaper of general
17 circulation which has a bona fide paid circulation in the
18 municipality equal to or greater than any newspaper published
19 therein. In addition, such notice shall be published once in the
20 legal journal, if any, designated by the court for the
21 publication of legal notices. The legal journal publication and
22 the first newspaper advertised publication shall be published at
23 least thirty days prior to and within three months immediately
24 preceding the filing of the application. In addition, such
25 notice of intention to apply shall be posted prominently on the
26 premises for which licensure is sought at least ten days but not
27 more than thirty days preceding the filing of the application.
28 The notice shall be in the form and contain the information
29 prescribed by the department.
30 Section 7. Section 464 of the act, repealed in part June 3,
19870H1074B1184 - 8 -
1 1971 (P.L.118, No.6), is amended to read:
2 Section 464. Hearings Upon Refusal of Licenses, Renewals or
3 Transfers; Appeals.--(a) The board may of its own motion, and
4 shall upon the written request of any applicant for club, hotel
5 or restaurant liquor license, or any applicant for any malt or
6 brewed beverage license other than a public service license, or
7 for renewal or transfer thereof, whose application for such
8 license, renewal or transfer has been refused, fix a time and
9 place for hearing of such application for license or for renewal
10 or transfer thereof, notice of which hearing shall be mailed to
11 the applicant at the address given in his application. Such
12 hearing shall be before the board, a member thereof, or an
13 examiner designated by the board. At such hearing, the board
14 shall present its reasons for its refusal or withholding of
15 license, renewal or transfer thereof. The applicant may appear
16 in person or by counsel, may cross-examine the witnesses for the
17 board and may present evidence which shall likewise be subject
18 to cross-examination by the board. Such hearing shall be
19 stenographically recorded. The examiner shall thereafter report
20 to the board upon such hearing. The board shall thereupon grant
21 or refuse the license, renewal or transfer thereof. In
22 considering the renewal of a license, the board shall not refuse
23 any such renewal on the basis of the propriety of the original
24 issuance or any prior renewal of such license. If the board
25 shall refuse such license, renewal or transfer following such
26 hearing, notice in writing of such refusal shall be mailed to
27 the applicant at the address given in his application. In all
28 such cases, the board shall file of record at least a brief
29 statement in the form of an opinion of the reasons for the
30 ruling or order and furnish a copy thereof to the applicant. Any
19870H1074B1184 - 9 -
1 applicant who has appeared before the board or any agent thereof
2 at any hearing, as above provided, who is aggrieved by the
3 refusal of the board to issue any such license or to renew or
4 transfer any such license may appeal, or any church, hospital,
5 charitable institution, school or public playground or parents
6 or guardians of minors under twenty-one years of age attending a
7 school located within three hundred feet of the premises applied
8 for, aggrieved by the action of the board in granting the
9 issuance of any such license or the transfer of any such
10 license, may take an appeal limited to the question of such
11 grievance, within twenty days from date of refusal or grant, to
12 the court of quarter sessions of the county in which the
13 premises applied for is located or the county court of Allegheny
14 County. Such appeal shall be upon petition of the aggrieved
15 party, who shall serve a copy thereof upon the board, whereupon
16 a hearing shall be held upon the petition by the court upon ten
17 days' notice to the board, which shall be represented in the
18 proceeding by the Department of Justice. The said appeal shall
19 act as a supersedeas unless upon sufficient cause shown the
20 court shall determine otherwise. The court shall hear the
21 application de novo on questions of fact, administrative
22 discretion and such other matters as are involved, at such time
23 as it shall fix, of which notice shall be given to the board.
24 The court shall either sustain or over-rule the action of the
25 board and either order or deny the issuance of a new license or
26 the renewal or transfer of the license to the applicant.
27 The jurisdiction of the county court of Allegheny County
28 conferred hereby shall be exclusive within the territorial
29 limits of its jurisdiction.
30 (b) Whenever one or more inhabitants of a neighborhood
19870H1074B1184 - 10 -
1 within a radius of five hundred feet of the place proposed to be
2 licensed make a request, in writing, that the department conduct
3 a public hearing on whether the issuance of a new license or the
4 transfer of any license to a new location would be detrimental
5 to the welfare, health, peace and morals of the neighborhood,
6 the department shall conduct a public hearing thereon within the
7 county where the place proposed to be licensed is situated.
8 Whenever a school or the parents or guardians of minors under
9 twenty-one years of age attending a school situated within three
10 hundred feet of the place proposed to be licensed make a
11 request, in writing, that the department conduct a public
12 hearing on whether the issuance of a new license or transfer of
13 any license to a new location would be detrimental to the
14 welfare, health, peace and morals of the minors attending the
15 school, the department shall conduct a public hearing thereon
16 within the county where the place proposed to be licensed is
17 situated. Such public hearing shall be in addition to any other
18 hearing the department may conduct on the application.
19 Section 8. (a) All personnel, allocations, appropriations,
20 equipment, files, records, contracts, agreements, obligations
21 and other materials which are used, employed or expended in
22 connection with the powers, duties or functions of the
23 Pennsylvania Liquor Control Board are hereby transferred to the
24 Department of Liquor Control established by this act with the
25 same force and effect as if the allocations and appropriations
26 had been made to and said items had been the personnel and
27 property of the Department of Liquor Control in the first
28 instance and as if the contracts, agreements and obligations had
29 been incurred or entered into by the Department of Liquor
30 Control.
19870H1074B1184 - 11 -
1 (b) All present employees of the Pennsylvania Liquor Control
2 Board are hereby transferred to the Department of Liquor Control
3 established by this act. All such employees shall continue in
4 their employment with the same pay scales, salaries, wages,
5 seniority benefits, pension rights and other incidents of
6 employment, including, but not limited to, civil service status
7 and collective bargaining status, as if this act had not been
8 enacted.
9 (c) Except where the context indicates that the reference is
10 intended as applying to the Liquor Hearing Commission, all
11 references in statutes to the Pennsylvania Liquor Control Board
12 abolished by section 2 of this act (repealing sections 201
13 through 206) shall be deemed to be references to the Department
14 of Liquor Control established by this act.
15 Section 9. All orders, licenses, regulations, decisions and
16 other actions of the Pennsylvania Liquor Control Board shall
17 remain in full force and effect until modified, repealed,
18 suspended, superseded or otherwise changed by duly authorized
19 action.
20 Section 10. (a) All powers granted by this act to the
21 Department of Liquor Control shall be exercised by the
22 Pennsylvania Liquor Control Board until the Secretary of Liquor
23 Control has been appointed by the Governor and confirmed by the
24 Senate.
25 (b) All powers granted by this act to the Liquor Hearing
26 Commission shall be exercised by the Pennsylvania Liquor Control
27 Board until the Governor has issued his proclamation stating
28 that the Liquor Hearing Commission is authorized and ready to
29 perform the powers, duties and responsibilities prescribed by
30 this act.
19870H1074B1184 - 12 -
1 Section 11. Each rule, regulation or fee of the Pennsylvania
2 Liquor Control Board in effect on the effective date of this act
3 shall remain in effect after such date until repealed or
4 modified by the Department of Liquor Control.
5 Section 12. The Department of Liquor Control shall be funded
6 to the same extent as is the Pennsylvania Liquor Control Board
7 by and from The State Stores Fund.
8 Section 13. (a) Section 2 of this act shall take effect on
9 the effective date of this act except to the extent necessary to
10 carry out the provisions of section 10 of this act.
11 (b) The Pennsylvania Liquor Control Board is continued in
12 existence to the extent necessary to carry out the provisions of
13 section 10 of this act.
14 Section 14. All acts and parts of acts are repealed insofar
15 as they are inconsistent with this act.
16 Section 15. This act shall be retroactive to December 31,
17 1986.
18 Section 16. This act shall take effect immediately.
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