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        PRIOR PRINTER'S NOS. 1821, 2366, 2405         PRINTER'S NO. 2412

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1365 Session of 2002


        INTRODUCED BY CONTI, BODACK, THOMPSON AND TARTAGLIONE,
           MARCH 20, 2002

        AS AMENDED ON THIRD CONSIDERATION, NOVEMBER 20, 2002

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
     2     reenacted, "An act relating to alcoholic liquors, alcohol and
     3     malt and brewed beverages; amending, revising, consolidating
     4     and changing the laws relating thereto; regulating and
     5     restricting the manufacture, purchase, sale, possession,
     6     consumption, importation, transportation, furnishing, holding
     7     in bond, holding in storage, traffic in and use of alcoholic
     8     liquors, alcohol and malt and brewed beverages and the
     9     persons engaged or employed therein; defining the powers and
    10     duties of the Pennsylvania Liquor Control Board; providing
    11     for the establishment and operation of State liquor stores,
    12     for the payment of certain license fees to the respective
    13     municipalities and townships, for the abatement of certain
    14     nuisances and, in certain cases, for search and seizure
    15     without warrant; prescribing penalties and forfeitures;
    16     providing for local option, and repealing existing laws,"
    17     defining "arts council," "eligible entity" and "pecuniary
    18     interest"; and further providing for the definitions of
    19     "eating place" and "restaurant," for bonds required of
    20     members and secretary, for board and enforcement bureau
    21     subject to State ethics and adverse interest acts, for         <--
    22     restrictions on members of the board and on certain employees
    23     of the Commonwealth for wine marketing, FOR WHEN SALES MAY BE  <--
    24     MADE AT PENNSYLVANIA LIQUOR STORES, for sales by Pennsylvania
    25     liquor stores, for authority to issue liquor licenses to       <--
    26     hotels, restaurants and clubs, for applications for hotel,
    27     restaurant and club liquor licenses, for issuance of hotel,
    28     restaurant and club liquor licenses, for sales by liquor
    29     licensees, for secondary service area, for special occasion
    30     permits, for sacramental wine licenses, for liquor importers'
    31     licenses, for malt and brewed beverages (excluding
    32     manufacturers), for malt and brewed beverages retail
    33     licenses, for application for distributors', importing


     1     distributors' and retail dispensers' licenses, for
     2     prohibitions against the grant of licenses, for retail
     3     dispensers' restrictions on purchases and sales, for hearings
     4     upon refusal of licenses, renewals or transfers, for renewal
     5     of licenses, for revocation and suspension of licenses, for
     6     local option and for exchange of certain licenses; providing
     7     for surrender of restaurant, eating place retail dispenser,
     8     hotel, importing distributor and distributor license for
     9     benefit of licensee; further providing for renewal of
    10     amusement permit, for unlawful acts relative to liquor,
    11     alcohol and liquor licensees, for unlawful acts relative to
    12     malt or brewed beverages and licensees, for unlawful acts
    13     relative to liquor, malt and brewed beverages and licensees,
    14     for unlawful advertising, for limited wineries, for            <--
    15     distilleries and for business hours.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  The definitions of "eating place" and
    19  "restaurant" in section 102 of the act of April 12, 1951
    20  (P.L.90, No.21), known as the Liquor Code, reenacted and amended
    21  June 29, 1987 (P.L.32, No.14), and amended February 21, 2002
    22  (P.L.103, No.10), are amended and the section is amended by
    23  adding definitions to read:
    24     Section 102.  Definitions.--The following words or phrases,
    25  unless the context clearly indicates otherwise, shall have the
    26  meanings ascribed to them in this section:
    27     * * *
    28     "Arts council" shall mean a tax-exempt organization which
    29  promotes the visual arts, performing arts, or both, and which
    30  receives funding under the Local Arts Services Program
    31  administered by the Pennsylvania Council of the Arts.
    32     * * *
    33     "Eating place" shall mean a premise where food is regularly
    34  and customarily prepared and sold, having a total area of not
    35  less than three hundred square feet available to the public in
    36  one or more rooms, other than living quarters, and equipped with
    37  tables and chairs, including bar seats, accommodating thirty
    20020S1365B2412                  - 2 -

     1  persons at one time. The board shall, by regulation, set forth
     2  what constitutes tables and chairs sufficient to accommodate
     3  thirty persons at one time.
     4     "Eligible entity" shall mean a city of the third class, a
     5  hospital, a church, a synagogue, a volunteer fire company, a
     6  volunteer ambulance company, a volunteer rescue squad, a unit of
     7  a nationally chartered club which has been issued a club liquor
     8  license, a library, a nationally accredited Pennsylvania
     9  nonprofit zoological institution licensed by the United States
    10  Department of Agriculture, a nonprofit agricultural association
    11  in existence for at least ten years, a bona fide sportsmen's
    12  club in existence for at least ten years, a nationally chartered
    13  veterans' organization and any affiliated lodge or subdivision
    14  of such organization, a fraternal benefit society that is
    15  licensed to do business in this Commonwealth and any affiliated
    16  lodge or subdivision of such fraternal benefit society, a museum
    17  operated by a nonprofit corporation in a city of the third class
    18  or township of the first class, a nonprofit corporation engaged
    19  in the performing arts in a city of the third class or in an
    20  incorporated town, an arts council, a nonprofit corporation that
    21  operates an arts facility or museum in a city of the third class
    22  in the county of the fourth class, a nonprofit organization as
    23  defined under section 501(c)(3) of the Internal Revenue Code of
    24  1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) whose purpose is
    25  to protect the architectural heritage of boroughs and which has
    26  been recognized as such by a municipal resolution, or a
    27  nonprofit organization as defined under section 501(c)(3) of the
    28  Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
    29  501(c)(3)) conducting a regatta in a city of the second class
    30  with the permit to be used on State park grounds or conducting a
    20020S1365B2412                  - 3 -

     1  family-oriented celebration as part of Welcome America in a city
     2  of the first class on property leased from that city for more
     3  than fifty years.
     4     * * *
     5     "Restaurant" shall mean a reputable place operated by
     6  responsible persons of good reputation and habitually and
     7  principally used for the purpose of providing food for the
     8  public, the place to have an area within a building of not less
     9  than four hundred square feet, equipped with tables and chairs,
    10  including bar seats, accommodating at least thirty persons at
    11  one time. The board shall, by regulation, set forth what
    12  constitutes tables and chairs sufficient to accommodate thirty
    13  persons at one time.
    14     * * *
    15     "Tract" shall mean a contiguous expanse of land under the
    16  control of one person.
    17     Section 3.  Sections 205 and 206.1(a) and (b) of the act are
    18  amended to read:
    19     [Section 205.  Bonds Required of Members and Secretary.--
    20  Before entering upon the duties of their respective offices or
    21  positions, each member of the board and the secretary shall
    22  execute and file with the State Treasurer a bond in such penal
    23  sum as shall be fixed by the Executive Board of this
    24  Commonwealth upon recommendation of the Governor, but the amount
    25  of any such bond shall not be less than ten thousand dollars
    26  ($10,000). Bonds in such penal sums as shall be fixed by the
    27  Executive Board likewise shall be executed and filed with the
    28  State Treasurer by such employes of the board as the head of
    29  such board shall, with the approval of the Executive Board,
    30  prescribe. Such bonds shall be payable to the Commonwealth of
    20020S1365B2412                  - 4 -

     1  Pennsylvania and shall be conditioned for the faithful
     2  performance of the members', secretary's or employes' duties
     3  imposed by law or by lawful authority and that the person bonded
     4  will not knowingly violate the provisions of this act. All bonds
     5  required to be given under this section shall, before being
     6  accepted by the State Treasurer, be approved by the Attorney
     7  General, and unless the Commonwealth shall establish its own
     8  indemnity fund, all such bonds shall be given with security
     9  approved by the Attorney General. If the Commonwealth shall
    10  establish its own indemnity fund, the Executive Board may,
    11  nevertheless, require any bond given hereunder to be executed by
    12  a surety or sureties satisfactory to the Attorney General. The
    13  cost of such bonds required to be executed by a surety or
    14  sureties shall be borne by the board as part of its operating
    15  expense.]
    16     Section 206.1.  Board and Enforcement Bureau Subject to State
    17  Ethics and Adverse Interest Acts.--(a)  Except to the extent
    18  that the penalties provided in section 210 of this act for
    19  violations are more stringent, the board, its members and all of
    20  its employes and employes of the enforcement bureau shall be
    21  subject to the act of October 4, 1978 (P.L.883, No.170),
    22  referred to as the Public Official and Employee Ethics Law, and
    23  the act of July 19, 1957 (P.L.1017, No.451), known as the "State
    24  Adverse Interest Act."
    25     (b)  Membership on the board and employment or continued
    26  employment as an employe of the board or enforcement bureau is
    27  conditioned upon compliance with all of the provisions of the
    28  acts specified in subsection (a), including, but not limited to,
    29  the filing of statements of financial interests required by
    30  section 5 of the Public Official and Employee Ethics Law.
    20020S1365B2412                  - 5 -

     1  Acceptance or retention of employment shall be deemed as
     2  voluntary consent to submit to the financial reporting
     3  requirements of the Public Official and Employee Ethics Law as a
     4  condition of employment. Failure to timely comply with the
     5  requirements shall result in immediate termination of
     6  employment. Both the board and the enforcement bureau are
     7  subject to the provisions of 65 Pa.C.S. Ch. 11 (relating to
     8  ethics standards and financial disclosure).
     9     Section 4.  Section 210 of the act, amended December 21, 1988  <--
    10  (P.L.1879, No.183), is amended to read:
    11     [Section 210.  Restrictions on Members of the Board and
    12  Certain Employes of Commonwealth.--(a)  A member or employe of
    13  the board or enforcement bureau or a member of the immediate
    14  family of a member or employe of the board or enforcement bureau
    15  shall not be directly or indirectly interested or engaged in any
    16  other business or undertaking within the Commonwealth dealing in
    17  liquor, alcohol, or malt or brewed beverages, whether as owner,
    18  part owner, partner, member of syndicate, holder of stock
    19  exceeding five percent (5%) of the equity at fair market value
    20  of the business, independent contractor or manager of a licensed
    21  establishment required under 40 Pa. Code § 5.23 (relating to
    22  appointment of managers), and whether for his own benefit or in
    23  a fiduciary capacity for some other person. For the purpose of
    24  this subsection only, "employe of the board or Enforcement
    25  Bureau" shall mean any individual employed by the board or
    26  Enforcement Bureau who is responsible for taking or recommending
    27  official action of a nonministerial nature with regard to:
    28     (1)  contracting or procurement;
    29     (2)  administering or monitoring grants or subsidies;
    30     (3)  planning or zoning;
    20020S1365B2412                  - 6 -

     1     (4)  inspecting, licensing, regulating or auditing any
     2  person; or
     3     (5)  any other activity where the official action has an
     4  economic impact of greater than a de minimis nature on the
     5  interests of any person.
     6     (b)  No member or employe of the board or enforcement bureau
     7  or a member of the immediate family of a member or employe of
     8  the board or enforcement bureau nor any employe of the
     9  Commonwealth shall solicit or receive, directly or indirectly,
    10  any commission, remuneration or gift whatsoever, from any person
    11  having sold, selling or offering liquor or alcohol for sale to
    12  the board for use in Pennsylvania Liquor Stores.
    13     (c)  No person convicted of an infamous crime may be employed
    14  as a member or employe by the board or enforcement bureau.
    15     (d)  No member or employe of the board or enforcement bureau
    16  may use his position with the board or enforcement bureau, or
    17  any confidential information received through his position with
    18  the board or enforcement bureau, to obtain financial gain, other
    19  than compensation provided by law, for himself, a member of his
    20  immediate family or a business with which he is associated.
    21     (e)  No person may offer or give to a member or employe of
    22  the board or enforcement bureau or a member of his immediate
    23  family or a business with which he is associated, and no member
    24  or employe of the board or enforcement bureau may solicit or
    25  accept anything of value, including a gift, loan, political
    26  contribution, reward or promise of future employment, based on
    27  an understanding that the vote, official action or judgment of
    28  the member or employe of the board or enforcement bureau would
    29  be influenced thereby.
    30     (f)  No member or employe of the board or enforcement bureau
    20020S1365B2412                  - 7 -

     1  or a member of his immediate family or any business in which the
     2  member or employe or a member of his immediate family is a
     3  director, officer or owner or holder of stock exceeding five
     4  percent (5%) of the equity at fair market value of the business
     5  may enter into any contract valued at five hundred dollars
     6  ($500) or more to provide goods or services to the board or
     7  enforcement bureau unless the contract has been awarded to the
     8  lowest responsible bidder through an open and public process,
     9  including prior public notice and subsequent public disclosure
    10  of all proposals considered and contracts awarded.
    11     (g)  No former member or employe of the board or enforcement
    12  bureau may represent a person, with or without compensation, on
    13  any matter before the board or enforcement bureau for one year
    14  after leaving the board or enforcement bureau.
    15     (h)  No member or employe of the board or enforcement bureau
    16  or an advisor or consultant thereto having recommended to the
    17  board or enforcement bureau either the making of a contract or a
    18  course of action of which the making of a contract is an express
    19  or implied part, may, at any time thereafter, have an adverse
    20  interest in that contract.
    21     (i)  No member or employe of the board or enforcement bureau
    22  may influence or attempt to influence the making of, or
    23  supervise or deal with, a contract with the board or enforcement
    24  bureau in which he has an adverse interest.
    25     (j)  No member or employe of the board or enforcement bureau
    26  may have an adverse interest in a contract with the board or
    27  enforcement bureau.
    28     (k)  No person having an adverse interest in a contract with
    29  the board or enforcement bureau may become an employe of the
    30  board or enforcement bureau until the adverse interest has been
    20020S1365B2412                  - 8 -

     1  wholly divested.
     2     (l)  No member or employe of the board or enforcement bureau,
     3  except in the performance of his duties as such employe, may,
     4  for remuneration, directly or indirectly, represent a person
     5  upon a matter pending before the board or enforcement bureau.
     6     (m)  (1)  Any person who violates the provisions of this
     7  section shall have his employment by the board or enforcement
     8  bureau immediately terminated by the appropriate person having
     9  the power to terminate and shall be liable to the board or
    10  enforcement bureau to reimburse the board or enforcement bureau
    11  for all compensation received by him from the board or
    12  enforcement bureau while employed in violation of subsection
    13  (c).
    14     (2)  Any person who violates the provisions of subsections
    15  (b), (d) or (e) shall be guilty of a felony and, upon conviction
    16  thereof, shall be sentenced to pay a fine of not more than ten
    17  thousand dollars ($10,000) or to undergo imprisonment for not
    18  more than five (5) years, or both.
    19     (3)  Any person who violates the provisions of subsections
    20  (a) or (f) through (l) shall be guilty of a misdemeanor and,
    21  upon conviction thereof, shall be sentenced to pay a fine of not
    22  more than one thousand dollars ($1,000) or to undergo
    23  imprisonment for not more than one (1) year, or both.
    24     (4)  Any person who obtains financial gain from violating any
    25  provisions of this section, in addition to any other penalty
    26  provided by law, shall pay into the accounts of the board a sum
    27  of money equal to three (3) times the financial gain resulting
    28  from the violation.
    29     (5)  Any person who violates the provisions of this section
    30  shall be barred for a period of five (5) years from engaging in
    20020S1365B2412                  - 9 -

     1  any business or contract with the board or enforcement bureau.
     2     (6)  The penalties and sanctions provided by this subsection
     3  shall supersede any similar penalties and sanctions provided by
     4  the act of July 19, 1957 (P.L.1017, No.451), known as the "State
     5  Adverse Interest Act," and the act of October 4, 1978 (P.L.883,
     6  No.170), referred to as the Public Official and Employee Ethics
     7  Law.
     8     (n)  As used in this section, the following words and phrases
     9  shall have the meanings given to them in this subsection:
    10     "Business" shall mean a corporation, partnership, sole
    11  proprietorship, firm, enterprise, franchise, association,
    12  organization, self-employed individual, holding company, joint-
    13  stock company, receivership, trust or legal entity organized for
    14  profit or as a not-for-profit corporation or organization.
    15     "Immediate family" shall mean a spouse residing in the
    16  person's household and minor dependent children.
    17     "Infamous crime" shall mean a violation and conviction for an
    18  offense which would disqualify an individual from holding public
    19  office pursuant to section 6 of Article II of the Constitution
    20  of Pennsylvania; a conviction within the preceding ten (10)
    21  years for a violation of this section or of 18 Pa.C.S. § 4113
    22  (relating to misapplication of entrusted property and property
    23  of government or financial institutions), Ch. 47 (relating to
    24  bribery and corrupt influence), Ch. 49 (relating to
    25  falsification and intimidation), Ch. 51 (relating to obstructing
    26  governmental operations) or Ch. 53 (relating to abuse of
    27  office); or a violation of the laws of this Commonwealth or
    28  another state or the Federal Government for which an individual
    29  has been convicted within the preceding ten (10) years and which
    30  is classified as a felony.]
    20020S1365B2412                 - 10 -

     1     Section 5.  Sections 215(c) and (d) and 305(d) and (h) of the
     2     SECTION 4.  SECTIONS 215(C) AND (D), 304 AND 305(D) AND (H)    <--
     3  OF THE act are amended to read:
     4     Section 215.  Wine Marketing.--* * *
     5     [(c)  The board shall establish that at least five per centum
     6  of all State stores within a metropolitan area are wine
     7  specialty stores, at which premium wine shall be sold. These
     8  stores shall not sell any distilled product. The board may
     9  establish the wine specialty stores in locations which provide
    10  the greatest customer traffic and the greatest gross profit to
    11  the board. These locations may include established retail
    12  establishments. Board employes shall staff these locations. The
    13  board shall have the option of closing stores which are
    14  unprofitable for two consecutive fiscal years.]
    15     (d)  [(1)  The term "metropolitan area," as used in this
    16  section, shall mean any one county or any combination of two,
    17  three or four counties contiguous and adjacent with a total
    18  population of fifty thousand or more.]
    19     (2)  The term "wine," as used in this section, shall mean
    20  liquor which is fermented from grapes and other fruits, having
    21  alcoholic content of twenty-four per centum or less. The term
    22  "wine" shall not include malt or brewed beverages, nor shall
    23  wine include any products containing alcohol derived from malt,
    24  grain, cereal, molasses or cactus.
    25     SECTION 304.  WHEN SALES MAY BE MADE AT PENNSYLVANIA LIQUOR    <--
    26  STORES.--[EVERY] (A)  EXCEPT AS PROVIDED FOR IN SUBSECTION (B),
    27  EVERY PENNSYLVANIA LIQUOR STORE SHALL BE OPEN FOR BUSINESS WEEK
    28  DAYS, EXCEPT LEGAL HOLIDAYS OR ANY DAY ON WHICH A GENERAL,
    29  MUNICIPAL, SPECIAL OR PRIMARY ELECTION IS BEING HELD, DURING
    30  SUCH HOURS AS THE BOARD, IN ITS DISCRETION, SHALL DETERMINE:
    20020S1365B2412                 - 11 -

     1  PROVIDED, THAT THE PENNSYLVANIA LIQUOR STORES IN THE CASE OF A
     2  SPECIAL ELECTION FOR MEMBERS OF THE GENERAL ASSEMBLY OR MEMBERS
     3  OF THE CONGRESS OF THE UNITED STATES, WHEN SUCH SPECIAL ELECTION
     4  IS HELD ON OTHER THAN A PRIMARY, MUNICIPAL OR GENERAL ELECTION
     5  DAY, SHALL BE OPEN IN THOSE LEGISLATIVE OR CONGRESSIONAL
     6  DISTRICTS AS THOUGH THE DAY WERE NOT A SPECIAL ELECTION DAY. THE
     7  BOARD MAY, WITH THE APPROVAL OF THE GOVERNOR, TEMPORARILY CLOSE
     8  ANY STORE IN ANY MUNICIPALITY.
     9     (B)  CERTAIN PENNSYLVANIA LIQUOR STORES OPERATED BY THE BOARD
    10  SHALL BE OPEN FOR SUNDAY RETAIL SALES BETWEEN THE HOURS OF NOON
    11  AND FIVE O'CLOCK POSTMERIDIAN, EXCEPT THAT NO SUNDAY SALES SHALL
    12  OCCUR ON EASTER SUNDAY OR CHRISTMAS DAY. FOR A TWO-YEAR TIME
    13  PERIOD FOLLOWING THE EFFECTIVE DATE OF THIS SUBSECTION, THE
    14  BOARD SHALL OPEN UP TO TEN PER CENTUM OF THE TOTAL NUMBER OF
    15  PENNSYLVANIA LIQUOR STORES AT ITS DISCRETION FOR SUNDAY SALES AS
    16  PROVIDED FOR IN THIS SUBSECTION. AT THE EXPIRATION OF THE TWO-
    17  YEAR TIME PERIOD, THE BOARD SHALL CONDUCT A REVIEW AND DETERMINE
    18  WHETHER THE STORES SHALL BE CLOSED OR WHETHER ADDITIONAL STORES
    19  SHALL BE OPENED FOR THESE SUNDAY SALES. THE BOARD SHALL SUBMIT
    20  YEARLY REPORTS TO THE APPROPRIATIONS AND THE LAW AND JUSTICE
    21  COMMITTEES OF THE SENATE AND THE APPROPRIATIONS AND THE LIQUOR
    22  CONTROL COMMITTEES OF THE HOUSE OF REPRESENTATIVES SUMMARIZING
    23  THE TOTAL DOLLAR VALUE OF SALES UNDER THIS SECTION.
    24     Section 305.  Sales by Pennsylvania Liquor Stores.--* * *
    25     (d)  No liquor or alcohol package shall be opened on the
    26  premises of a Pennsylvania Liquor Store. No manager or other
    27  employe of the board employed in a Pennsylvania Liquor Store
    28  shall allow any liquor or alcohol to be consumed on the store
    29  premises, nor shall any person consume any liquor or alcohol on
    30  such premises, except liquor and alcohol which is part of a
    20020S1365B2412                 - 12 -

     1  tasting conducted pursuant to the board's regulations.
     2     * * *
     3     (h)  Every Pennsylvania Liquor Store shall sell gift
     4  certificates which may be redeemed for liquor. In addition, the
     5  board may sell corkscrews and wine sleeves at Pennsylvania
     6  liquor stores.
     7     Section 7.  Section 401 of the act is amended to read:         <--
     8     Section 401.  Authority to Issue Liquor Licenses to Hotels,
     9  Restaurants and Clubs.--(a)  Subject to the provisions of this
    10  act and regulations promulgated under this act, the board shall
    11  have authority to issue a retail liquor license for any premises
    12  kept or operated by a hotel, restaurant or club and specified in
    13  the license entitling the hotel, restaurant or club to purchase
    14  liquor from a Pennsylvania Liquor Store and to keep on the
    15  premises such liquor and, subject to the provisions of this act
    16  and the regulations made thereunder, to sell the same and also
    17  malt or brewed beverages to guests, patrons or members for
    18  consumption on the hotel, restaurant or club premises. Such
    19  licensees, other than clubs, shall be permitted to sell malt or
    20  brewed beverages for consumption off the premises where sold in
    21  quantities of not more than one hundred ninety-two fluid ounces
    22  in a single sale to one person. Such licenses shall be known as
    23  hotel liquor licenses, restaurant liquor licenses and club
    24  liquor licenses, respectively. [No person who holds, either by
    25  appointment or election, any public office which involves the
    26  duty to enforce any of the penal laws of the United States of
    27  America or the penal laws of the Commonwealth of Pennsylvania or
    28  any penal ordinance or resolution of any political subdivision
    29  of this Commonwealth shall be issued any hotel or restaurant
    30  liquor license, nor shall such a person have any interest,
    20020S1365B2412                 - 13 -

     1  directly or indirectly, in any such license.] No person who
     2  holds any office which involves the duty to enforce any of the
     3  penal laws of the United States of America, this Commonwealth or
     4  of any political subdivision of this Commonwealth shall have any
     5  interest in any hotel or restaurant liquor license. This
     6  prohibition applies to anyone with arrest authority, including,
     7  but not limited to, police officers, sheriffs, district
     8  attorneys, state attorneys general and United States attorneys.
     9  This prohibition shall also apply to district justices, judges
    10  or any other individuals who can impose a criminal sentence.
    11  This prohibition does not apply to members of the legislature,
    12  township supervisors, city councilpersons, mayors without arrest
    13  authority and any other office that does not involve the ability
    14  to arrest or the ability to impose a criminal sentence. This
    15  prohibition does not apply if the proposed premises are located
    16  outside the jurisdiction of the individual in question.
    17     (b)  The board may issue to any club which caters to groups
    18  of non-members, either privately or for functions, a catering
    19  license, and the board shall, by its rules and regulations,
    20  define what constitutes catering under this subsection except
    21  that any club which is issued a catering license shall not be
    22  prohibited from catering on Sundays during the hours which the
    23  club may lawfully serve liquor, malt or brewed beverages.
    24     Section 8 5.  Section 403(a) and (g) of the act, amended       <--
    25  February 21, 2002 (P.L.103, No.10), are amended to read:
    26     Section 403.  Applications for Hotel, Restaurant and Club
    27  Liquor Licenses.--(a)  Every applicant for a hotel liquor
    28  license, restaurant liquor license or club liquor license or for
    29  the transfer of an existing license to another premises not then
    30  licensed or to another person shall file a written application
    20020S1365B2412                 - 14 -

     1  with the board in such form and containing such information as
     2  the board shall from time to time prescribe, which shall be
     3  accompanied by a filing fee and an annual license fee as
     4  prescribed in section 614-A of the act of April 9, 1929
     5  (P.L.177, No.175), known as "The Administrative Code of 1929."
     6  Every such application shall contain a description of that part
     7  of the hotel, restaurant or club for which the applicant desires
     8  a license and shall set forth such other material information,
     9  description or plan of that part of the hotel, restaurant or
    10  club where it is proposed to keep and sell liquor as may be
    11  required by the regulations of the board. The descriptions,
    12  information and plans referred to in this subsection shall show
    13  the hotel, restaurant, club, or the proposed location for the
    14  construction of a hotel, restaurant or club, at the time the
    15  application is made, and shall show any alterations proposed to
    16  be made thereto, or the new building proposed to be constructed
    17  after the approval by the board of the application for a license
    18  or for the transfer of an existing license to another premises
    19  not then licensed or to another person. No physical alterations,
    20  improvements or changes shall be required to be made to any
    21  hotel, restaurant or club, nor shall any new building for any
    22  such purpose, be required to be constructed until approval of
    23  the application for license or for the transfer of an existing
    24  license to another premises not then licensed or to another
    25  person by the board. After approval of the application, the
    26  licensee shall make the physical alterations, improvements and
    27  changes to the licensed premises, or shall construct the new
    28  building in the manner specified by the board at the time of
    29  approval, and the licensee shall not transact any business under
    30  the license until the board has approved the completed physical
    20020S1365B2412                 - 15 -

     1  alterations, improvements and changes to the licensed premises,
     2  or the completed construction of the new building as conforming
     3  to the specifications required by the board at the time of
     4  issuance or transfer of the license, and is satisfied that the
     5  establishment is a restaurant, hotel or club as defined by this
     6  act. The board may require that all such alterations or
     7  construction or conformity to definition be completed within six
     8  months from the time of issuance or transfer of the license.
     9  Failure to comply with these requirements shall be considered
    10  cause for revocation of the license. No such license shall be
    11  transferable between the time of issuance or transfer of the
    12  license and the approval of the completed alterations or
    13  construction by the board and full compliance by the licensee
    14  with the requirements of this act, except in the case of death
    15  of the licensee prior to full compliance with all of the
    16  aforementioned requirements[,] or unless full compliance is
    17  impossible for reasons beyond the licensee's control, in which
    18  event, the license may be transferred by the board as provided
    19  in this act.
    20     * * *
    21     (g)  Every applicant for a new license or for the transfer of
    22  an existing license shall post, for a period of at least
    23  [fifteen] thirty days beginning with the day the application is
    24  filed with the board, in a conspicuous place on the outside of
    25  the premises or at the proposed new location for which the
    26  license is applied, a notice of such application[,]. The notice
    27  shall indicate whether the applicant is applying for the
    28  amusement permit required by section 493(10). The notice shall
    29  be in such form, be of such size, and [containing] contain such
    30  provisions as the board may require by its regulations. Proof of
    20020S1365B2412                 - 16 -

     1  the posting of such notice shall be filed with the board. The
     2  posting requirement imposed by this subsection shall not apply
     3  to license applications submitted for public venues.
     4     * * *
     5     Section 9 6.  Section 404 of the act, amended December 20,     <--
     6  2000 (P.L.992, No.141), is amended to read:
     7     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
     8  Licenses.--Upon receipt of the application and the proper fees,
     9  and upon being satisfied of the truth of the statements in the
    10  application that the applicant is the only person in any manner
    11  pecuniarily interested in the business so asked to be licensed
    12  and that no other person will be in any manner pecuniarily
    13  interested therein during the continuance of the license, except
    14  as hereinafter permitted, and that the applicant is a person of
    15  good repute, that the premises applied for meet all the
    16  requirements of this act and the regulations of the board, that
    17  the applicant seeks a license for a hotel, restaurant or club,
    18  as defined in this act, and that the issuance of such license is
    19  not prohibited by any of the provisions of this act, the board
    20  shall, in the case of a hotel or restaurant, grant and issue to
    21  the applicant a liquor license, and in the case of a club may,
    22  in its discretion, issue or refuse a license: Provided, however,
    23  That in the case of any new license or the transfer of any
    24  license to a new location the board may, in its discretion,
    25  grant or refuse such new license or transfer if such place
    26  proposed to be licensed is within three hundred feet of any
    27  church, hospital, charitable institution, school, or public
    28  playground, or if such new license or transfer is applied for a
    29  place which is within two hundred feet of any other premises
    30  which is licensed by the board: And provided further, That the
    20020S1365B2412                 - 17 -

     1  board's authority to refuse to grant a license because of its
     2  proximity to a church, hospital, charitable institution, public
     3  playground or other licensed premises shall not be applicable to
     4  license applications submitted for public venues or performing
     5  arts facilities: And provided further, That the board shall
     6  refuse any application for a new license or the transfer of any
     7  license to a new location if, in the board's opinion, such new
     8  license or transfer would be detrimental to the welfare, health,
     9  peace and morals of the inhabitants of the neighborhood within a
    10  radius of five hundred feet of the place proposed to be
    11  licensed: [And provided further, That prior to July 1, 1996, in
    12  any license district in a city of the first class, the board
    13  may, in its opinion, refuse any application for a new license or
    14  for any person-to-person transfer which shall include a change
    15  in stockholders involving ten per centum or more of all
    16  outstanding voting stock and/or less than ten per centum of all
    17  outstanding voting stock when such change involves a majority or
    18  controlling interest, of any license if the licensed premises is
    19  or would be within three hundred feet of any church, hospital,
    20  charitable institution, school or public playground or within
    21  two hundred feet of any other premises licensed by the board and
    22  if, in the opinion of the board, the licensed premises is or
    23  would be detrimental to the welfare, health, peace and morals of
    24  such church, hospital, school, public playground and/or the
    25  inhabitants of the neighborhood within a radius of five hundred
    26  feet of the licensed premises. This authority to refuse a
    27  person-to-person transfer in a city of the first class is in
    28  addition to and not in derogation of the authority of the board
    29  generally stated for all areas of this Commonwealth:] And
    30  provided further, That the board shall have the discretion to
    20020S1365B2412                 - 18 -

     1  refuse a license to any person or to any corporation,
     2  partnership or association if such person, or any officer or
     3  director of such corporation, or any member or partner of such
     4  partnership or association shall have been convicted or found
     5  guilty of a felony within a period of five years immediately
     6  preceding the date of application for the said license. The
     7  board shall refuse any application for a new license or the
     8  transfer of any license to a location where the sale of liquid
     9  fuels or oil is conducted. The board may enter into an agreement
    10  with the applicant concerning additional restrictions on the
    11  license in question. If the board and the applicant enter into
    12  such an agreement, such agreement shall be binding on the
    13  applicant. Failure by the applicant to adhere to the agreement
    14  will be sufficient cause to form the basis for a citation under
    15  section 471 and for the nonrenewal of the license under section
    16  470. If the board enters into an agreement with an applicant
    17  concerning additional restrictions, those restrictions shall be
    18  binding on subsequent holders of the license until the license
    19  is transferred to a new location or until the board enters into
    20  a subsequent agreement removing those restrictions. If the
    21  application in question involves a location previously licensed
    22  by the board, then any restrictions imposed by the board on the
    23  previous license at that location shall be binding on the
    24  applicant unless the board enters into a new agreement
    25  rescinding those restrictions. The board may, in its discretion,
    26  refuse an application for an economic development license under
    27  section 461(b.1) or an application for an intermunicipal
    28  transfer of a license if the board receives a protest from the
    29  governing body of the receiving municipality. The receiving
    30  municipality of an intermunicipal transfer or an economic
    20020S1365B2412                 - 19 -

     1  development license under section 461(b.1) may file a protest
     2  against the transfer of a license into its municipality, and the
     3  receiving municipality shall have standing in a hearing to
     4  present testimony in support of or against the issuance or
     5  transfer of a license. Upon any opening in any quota, an
     6  application for a new license shall only be filed with the board
     7  for a period of six months following said opening.
     8     Section 10 7.  Section 406(a)(1) of the act, amended November  <--
     9  10, 1999 (P.L.514, No.47), is amended and the section is amended
    10  by adding a subsection to read:
    11     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
    12  (1)  Every hotel, restaurant or club liquor licensee may sell
    13  liquor and malt or brewed beverages by the glass, open bottle or
    14  other container, and in any mixture, for consumption only in
    15  that part of the hotel or restaurant habitually used for the
    16  serving of food to guests or patrons, or in a bowling alley that
    17  is immediately adjacent to and under the same roof as a
    18  restaurant when no minors are present, unless minors who are
    19  present are under proper supervision as defined in section 493,
    20  in the bowling alley, and in the case of hotels, to guests, and
    21  in the case of clubs, to members, in their private rooms in the
    22  hotel or club. No club licensee nor its officers, servants,
    23  agents or employes, other than one holding a catering license,
    24  shall sell any liquor or malt or brewed beverages to any person
    25  except a member of the club. [In the case of a restaurant
    26  located in a hotel which is not operated by the owner of the
    27  hotel and which is licensed to sell liquor under this act,
    28  liquor and malt or brewed beverages may be sold] The holder of a
    29  restaurant license located in a hotel may sell liquor or malt or
    30  brewed beverages for consumption in that part of the restaurant
    20020S1365B2412                 - 20 -

     1  habitually used for the serving of meals to patrons and also to
     2  guests in private guest rooms in the hotel. For the purpose of
     3  this paragraph, any person who is an active member of another
     4  club which is chartered by the same state or national
     5  organization shall have the same rights and privileges as
     6  members of the particular club. For the purpose of this
     7  paragraph, any person who is an active member of any volunteer
     8  firefighting company, association or group of this Commonwealth,
     9  whether incorporated or unincorporated, shall upon the approval
    10  of any club composed of volunteer firemen licensed under this
    11  act, have the same social rights and privileges as members of
    12  such licensed club. For the purposes of this paragraph, the term
    13  "active member" shall not include a social member. Any club
    14  licensee which is either an incorporated unit of a national
    15  veterans' organization or an affiliated organization as defined
    16  in section 461.1 shall be permitted to sell liquor or malt or
    17  brewed beverages to any active member of another unit which is
    18  chartered by the same national veterans' organization or to any
    19  member of a nationally chartered auxiliary associated with the
    20  same national veterans' organization.
    21     * * *
    22     (e)  The holder of a hotel license or the holder of a
    23  restaurant license located in a hotel may allow persons to
    24  transport liquor or malt or brewed beverages from the licensed
    25  portion of the premises to the unlicensed portion of the
    26  premises, so long as the liquor or malt or brewed beverages
    27  remain on the hotel property. In addition, a holder of a
    28  restaurant license located on a golf course may sell, furnish or
    29  give liquor or malt or brewed beverages on the unlicensed
    30  portion of the golf course so long as the liquor or malt or
    20020S1365B2412                 - 21 -

     1  brewed beverages remain on the restaurant or golf course. The
     2  holder of a restaurant license located immediately adjacent to
     3  and under the same roof of a bowling center may allow persons to
     4  transport liquor or malt or brewed beverages from the licensed
     5  portion of the premises to the unlicensed portion of the
     6  premises, so long as the liquor or malt or brewed beverages
     7  remain within the bowling center.
     8     Section 11 8.  Section 406.1 of the act, amended July 1, 1994  <--
     9  (P.L.402, No.61),is amended to read:
    10     Section 406.1.  Secondary Service Area.--(a)  Upon
    11  application of any restaurant, hotel, club[, any stadium as
    12  described in section 408.9 or], municipal golf course liquor
    13  licensee or manufacturer of malt or brewed beverages, and
    14  payment of the appropriate fee, the board may approve a
    15  secondary service area by extending the licensed premises to
    16  include one additional permanent structure with dimensions of at
    17  least one hundred seventy-five square feet, enclosed on three
    18  sides and having adequate seating. Such secondary service area
    19  must be located on property having a minimum area of one (1)
    20  acre, and must be on land which is immediate, abutting, adjacent
    21  or contiguous to the licensed premises with no intervening
    22  public thoroughfare, however, the original licensed premises and
    23  the secondary service area must be located on the same tract of
    24  land. [In any stadium as described in section 408.9, only malt
    25  or brewed beverages may be served.] There shall be no
    26  requirement that the secondary service area be physically
    27  connected to the original licensed premises. In addition, there
    28  shall be no requirement that the secondary service area be
    29  located in the same municipality as the original licensed
    30  premises, provided, however, that the board shall not approve a
    20020S1365B2412                 - 22 -

     1  secondary service area in this case if that secondary service
     2  area is located in any municipality where the granting of liquor
     3  licenses has been prohibited as provided in this article.
     4  Notwithstanding 40 Pa. Code § 7.21(c)(3), the licensee shall be
     5  permitted to store, serve, sell or dispense food, liquor and
     6  malt or brewed beverages at the board approved secondary service
     7  area.
     8     (b)  If the applicant is a manufacturer of malt or brewed
     9  beverages, the board may approve a secondary service area for
    10  use as a brewery pub pursuant to section 446, notwithstanding
    11  any intervening public thoroughfare, so long as the proposed
    12  secondary service area is within one thousand feet of the
    13  licensed premises. Notwithstanding any other provision of this
    14  act, the licensed premises and the secondary service area may be
    15  located on different tracts of lands.
    16     Section 12 9.  Section 408.4 of the act, amended or added      <--
    17  April 29, 1994 (P.L.212, No.30), October 5, 1994 (P.L.522,
    18  No.77), June 18, 1998 (P.L.664, No.86), December 21, 1998
    19  (P.L.1202, No.155), November 10, 1999 (P.L.514, No.47) and
    20  February 10, 2002 (P.L.103, No.10), is amended to read:
    21     Section 408.4.  Special Occasion Permits.--[(a)  Upon
    22  application of any hospital, church, synagogue, volunteer fire
    23  company, volunteer ambulance company, volunteer rescue squad,
    24  unit of a nationally chartered club which has been issued a club
    25  liquor license, nonprofit agricultural association in existence
    26  for at least ten years, bona fide sportsmen's club in existence
    27  for at least ten years, nationally chartered veterans'
    28  organization and any affiliated lodge or subdivision of such
    29  organization, fraternal benefit society that is licensed to do
    30  business in this Commonwealth and any affiliated lodge or
    20020S1365B2412                 - 23 -

     1  subdivision of such fraternal benefit society, or one auxiliary
     2  of any of the foregoing, and upon payment of the prescribed fee
     3  for special occasion permits under section 614-A of the act of
     4  April 9, 1929 (P.L.177, No.175), known as "The Administrative
     5  Code of 1929," the board shall issue a special occasion permit
     6  good for a period of not more than six consecutive or
     7  nonconsecutive days during a calendar year. Special occasion
     8  permits may also be issued to a museum operated by a nonprofit
     9  corporation in a city of the third class or township of the
    10  first class or a nonprofit corporation engaged in the performing
    11  arts in a city of the third class or in an incorporated town or
    12  to an arts council or to a nonprofit corporation that operates
    13  an arts facility or museum in a city of the third class in a
    14  county of the fourth class for a period of not more than six
    15  nonconsecutive or ten consecutive days at the prescribed fee for
    16  special occasion permits under section 614-A of "The
    17  Administrative Code of 1929."
    18     (a.1)  Upon application by a nationally accredited
    19  Pennsylvania nonprofit zoological institution licensed by the
    20  United States Department of Agriculture, the board shall issue a
    21  special occasion permit in accordance with subsection (a) for
    22  six nonconsecutive days or ten consecutive days in a calendar
    23  year.
    24     (b)  In any city, borough, incorporated town or township in
    25  which the sale of liquor and/or malt or brewed beverages has
    26  been approved by the electorate, such special occasion permit
    27  shall authorize the permittee to sell liquor and/or malt or
    28  brewed beverages as the case may be to any adult person on any
    29  day for which the permit is issued.
    30     (c)  Such special occasion permit shall only be valid for the
    20020S1365B2412                 - 24 -

     1  number of days stated in the permit. Only one permit may be
     2  issued to any permittee during the year. Provided, that a museum
     3  operated by a nonprofit corporation in a city of the third class
     4  or township of the first class, and a nonprofit corporation
     5  engaged in the performing arts in a city of the third class, or
     6  an arts council or a nonprofit corporation that operates an arts
     7  facility or museum in a city of the third class in a county of
     8  the fourth class may be issued no more than six permits during
     9  the year, each permit being valid for only one day, or in the
    10  alternative, one permit valid for no more than a total of ten
    11  consecutive days per year, which may be issued only during the
    12  month of August.
    13     (d)  Such permits shall only be issued for use at a special
    14  event including, but not limited to bazaars, picnics and
    15  clambakes. The special event must be one which is used by the
    16  permittee as a means of raising funds for itself.
    17     (d.1)  The hours during which the holder of a special
    18  occasion permit may sell liquor or malt or brewed beverages
    19  shall be limited to the hours set forth in section 406 which are
    20  applicable to hotel and restaurant licensees. The hours during
    21  which a nonprofit corporation engaged in the performing arts in
    22  a city of the third class may sell liquor or malt or brewed
    23  beverages pursuant to a special occasion permit shall be limited
    24  to those hours set forth in section 408.3(g.1).
    25     (d.2)  At least forty-eight hours prior to the sale of any
    26  liquor or malt or brewed beverages, the holder of a special
    27  occasion permit shall notify the local police department, or in
    28  the absence of a local police department, the Pennsylvania State
    29  Police, of the times when and place where the sale of liquor or
    30  malt or brewed beverages shall occur.
    20020S1365B2412                 - 25 -

     1     (e)  The provisions of this section shall not be applicable
     2  to any of the following:
     3     (1)  A licensee now or hereafter possessing a caterer's
     4  license, other than a volunteer fire company, volunteer
     5  ambulance company or volunteer rescue squad, which owns its own
     6  facility and wishes to use its special occasion permit at that
     7  facility.
     8     (2)  A professional fund raiser.
     9     (e.1)  Notwithstanding any provisions of law to the contrary,
    10  a permittee who is a nonprofit organization as defined under
    11  section 501(c)(4) of the Internal Revenue Code of 1986 (Public
    12  Law 99-514, 26 U.S.C. § 501(c)(4)) may do any of the following:
    13     (1)  If the permittee is conducting a regatta, sell for
    14  consumption liquor and malt or brewed beverages in or on the
    15  grounds of a State park located within a city of the second
    16  class for a period not to exceed ten consecutive days per
    17  calendar year.
    18     (2)  If the permittee is conducting a family-oriented
    19  celebration as part of Welcome America in a city of the first
    20  class on property leased from that city for a period of more
    21  than fifty years, sell for consumption liquor and malt or brewed
    22  beverages on such leased property for a period not to exceed ten
    23  consecutive days per calendar year.
    24     (3)  If the permittee is a nonprofit corporation designated
    25  by a city of the first class to conduct a millennium celebration
    26  on behalf of the city on property located at four sites approved
    27  by the board, sell for consumption champagne for a period not to
    28  exceed two consecutive days between December 31, 1999, and
    29  January 1, 2000.
    30     (f)  Any person selling liquor or malt or brewed beverages in
    20020S1365B2412                 - 26 -

     1  violation of this section shall, upon summary conviction, be
     2  sentenced to pay a fine of two hundred fifty dollars ($250) for
     3  the first offense and a fine of five hundred dollars ($500) for
     4  each subsequent offense. This fine shall be in addition to any
     5  other penalty imposed by law for the illegal sale of malt or
     6  brewed beverages.
     7     (g)  For the purposes of this section, "arts council" means a
     8  tax-exempt organization which promotes the visual arts,
     9  performing arts, or both, and which receives funding under the
    10  Local Arts Services Program administered by the Pennsylvania
    11  Council on the Arts.]
    12     (h)  The board may issue a special occasion permit to an
    13  eligible entity. The board may also issue a special occasion
    14  permit to one auxiliary of any eligible entity. Any eligible
    15  entity that wishes to acquire a special occasion permit must
    16  submit a written application to the board in such form and
    17  containing such information as the board shall from time to time
    18  prescribe. The fee for special occasion permits shall be as set
    19  forth under section 614-A(24) of the act of April 9, 1929
    20  (P.L.177, No.175), known as "The Administrative Code of 1929."
    21     (i)  Only one special occasion permit shall be issued to each
    22  eligible entity per calendar year. Each permit may only be used
    23  for six consecutive or nonconsecutive days; however, if the
    24  eligible entity is a museum operated by a nonprofit corporation
    25  in a city of the third class or township of the first class, a
    26  nonprofit corporation engaged in the performing arts in a city
    27  of the third class or in an incorporated town, or an arts
    28  council, then the special occasion permit may be used for six
    29  nonconsecutive or ten consecutive days.
    30     (j)  The eligible entity shall give the local police
    20020S1365B2412                 - 27 -

     1  department or the Pennsylvania State Police, if there is no
     2  local police department, written notice at least forty-eight
     3  hours prior to each use of the special occasion permit. Written
     4  notice consists of notifying the police of the date, time and
     5  place of the impending sale of alcoholic beverages.
     6     (k)  Special occasion permit holders may sell alcoholic
     7  beverages during the same hours as restaurant liquor license
     8  holders. In addition, special occasion permit holders may sell
     9  any type of alcohol for consumption off the licensed premises.
    10     (l)  The issuance of a special occasion permit does not
    11  preclude the eligible entity from acquiring and retaining any
    12  other liquor license to which it may be entitled; however, the
    13  board shall not issue a special occasion permit for premises
    14  already licensed by the board unless the applicant owns the
    15  premises and is a volunteer fire company, volunteer rescue
    16  company or volunteer ambulance squad.
    17     (m)  The purpose of a special occasion permit is to provide
    18  the eligible entity with a means of raising funds for itself.
    19  The permit may be used in conjunction with activities and events
    20  involving other entities; however, no one other than the holder
    21  of the special occasion permit may acquire a pecuniary interest
    22  in the permit.
    23     (n)  The board may refuse to issue a special occasion permit
    24  if it finds that the applicant is not reputable, or does not
    25  otherwise meet the requirements of this act. The right to refuse
    26  to issue a special occasion permit may be based in whole or in
    27  part on the applicant's prior operational history with either a
    28  special occasion permit or a license issued by the board.
    29     (o)  The holder of a special occasion permit is subject to
    30  the provisions of section 493(1).
    20020S1365B2412                 - 28 -

     1     (p)  Notwithstanding any provision of law to the contrary, if
     2  the eligible entity is a regatta in a city of the second class
     3  held on the grounds of a State park, the regatta may install a
     4  security fence or similar enclosure around the boundary of the
     5  State park or a portion of the State park during the regatta and
     6  may charge an admittance fee not to exceed five dollars ($5) per
     7  day.
     8     Section 13 10.  Sections 409(c) and 410(d) of the act are      <--
     9  amended to read:
    10     Section 409.  Sacramental Wine Licenses; Fees; Privileges;
    11  Restrictions.--* * *
    12     (c)  If the applicant is a natural person, his application
    13  must show that he is a citizen of the United States or a
    14  resident alien and a resident of this Commonwealth. If the
    15  applicant is an association or partnership, each and every
    16  member of the association or partnership must be a citizen of
    17  the United States or a resident alien and a resident of this
    18  Commonwealth. If the applicant is a corporation, the application
    19  must show that the corporation was created under the laws of
    20  Pennsylvania or holds a certificate of authority to transact
    21  business in Pennsylvania, and that all officers, directors and
    22  stockholders are citizens of the United States or resident
    23  aliens.
    24     * * *
    25     Section 410.  Liquor Importers' Licenses; Fees; Privileges;
    26  Restrictions.--* * *
    27     (d)  If the applicant is a natural person, his application
    28  must show that he is a citizen of the United States or a
    29  resident alien and a resident of this Commonwealth. If the
    30  applicant is an association or partnership, each and every
    20020S1365B2412                 - 29 -

     1  member of the association or partnership must be a citizen of
     2  the United States or a resident alien and a resident of this
     3  Commonwealth. If the applicant is a corporation, the application
     4  must show that the corporation was created under the laws of
     5  Pennsylvania or holds a certificate of authority to transact
     6  business in Pennsylvania, and that all officers, directors and
     7  stockholders are citizens of the United States or resident
     8  aliens.
     9     * * *
    10     Section 14 11.  Section 412(f)(4) of the act, amended          <--
    11  February 21, 2002 (P.L.103, No.10), is amended and the section
    12  is amended by adding a subsection to read:
    13     Section 412.  Public Venue License.--* * *
    14     (f)  Licenses issued under this section are to be considered
    15  restaurant liquor licenses. However, the following additional
    16  restrictions and privileges apply:
    17     * * *
    18     (4)  Licenses issued under this section shall not be subject
    19  to: (i) the proximity provisions of sections 402 and 404; (ii)
    20  the quota restrictions of section 461; (iv) the provisions of
    21  section 493(10) except as they relate to lewd, immoral or
    22  improper entertainment; [and] (v) the prohibition against minors
    23  frequenting as described in section 493(14) and (vi) the cost
    24  and total display area limitations of section 493(20)(i). In
    25  addition, licenses issued under this section shall not be
    26  subject to the provisions defining "restaurant" in section 102.
    27     (g)  The board may issue multiple licenses under this section
    28  for use in a public venue with permanent seating of at least
    29  thirty-five thousand people. If the board does issue more than
    30  one license for a specific public venue, written notice of the
    20020S1365B2412                 - 30 -

     1  event must be provided to the enforcement bureau at least forty-
     2  eight hours in advance of the dispensing of any liquor or malt
     3  or brewed beverages. The notice shall include the date, time and
     4  specific licensed areas to be used. No more than one license
     5  issued under this section shall be in effect at any location at
     6  any time of day at the same time.
     7     Section 15 12.  Section 431(b) of the act, amended June 18,    <--
     8  1998 (P.L.664, No.86) and December 21, 1998 (P.L.1202, No.155),
     9  is amended to read:
    10     Section 431.  Malt and Brewed Beverages Manufacturers',
    11  Distributors' and Importing Distributors' Licenses.--* * *
    12     (b)  The board shall issue to any reputable person who
    13  applies therefor, and pays the license fee hereinafter
    14  prescribed, a distributor's or importing distributor's license
    15  for the place which such person desires to maintain for the sale
    16  of malt or brewed beverages, not for consumption on the premises
    17  where sold, and in quantities of not less than a case or
    18  original containers containing one hundred twenty-eight ounces
    19  or more which may be sold separately as prepared for the market
    20  by the manufacturer at the place of manufacture. The board shall
    21  have the discretion to refuse a license to any person or to any
    22  corporation, partnership or association if such person, or any
    23  officer or director of such corporation, or any member or
    24  partner of such partnership or association shall have been
    25  convicted or found guilty of a felony within a period of five
    26  years immediately preceding the date of application for the said
    27  license: And provided further, That, in the case of any new
    28  license or the transfer of any license to a new location, the
    29  board may, in its discretion, grant or refuse such new license
    30  or transfer if such place proposed to be licensed is within
    20020S1365B2412                 - 31 -

     1  three hundred feet of any church, hospital, charitable
     2  institution, school or public playground, or if such new license
     3  or transfer is applied for a place which is within two hundred
     4  feet of any other premises which is licensed by the board: And
     5  provided further, That the board shall refuse any application
     6  for a new license or the transfer of any license to a new
     7  location if, in the board's opinion, such new license or
     8  transfer would be detrimental to the welfare, health, peace and
     9  morals of the inhabitants of the neighborhood within a radius of
    10  five hundred feet of the place proposed to be licensed. The
    11  board shall refuse any application for a new license or the
    12  transfer of any license to a location where the sale of liquid
    13  fuels or oil is conducted. The board may enter into an agreement
    14  with the applicant concerning additional restrictions on the
    15  license in question. If the board and the applicant enter into
    16  such an agreement, such agreement shall be binding on the
    17  applicant. Failure by the applicant to adhere to the agreement
    18  will be sufficient cause to form the basis for a citation under
    19  section 471 and for the nonrenewal of the license under section
    20  470. If the board enters into an agreement with an applicant
    21  concerning additional restrictions, those restrictions shall be
    22  binding on subsequent holders of the license until the license
    23  is transferred to a new location or until the board enters into
    24  a subsequent agreement removing those restrictions. If the
    25  application in question involves a location previously licensed
    26  by the board, then any restrictions imposed by the board on the
    27  previous license at that location shall be binding on the
    28  applicant unless the board enters into a new agreement
    29  rescinding those restrictions. The board shall require notice to
    30  be posted on the property or premises upon which the licensee or
    20020S1365B2412                 - 32 -

     1  proposed licensee will engage in sales of malt or brewed
     2  beverages. This notice shall be similar to the notice required
     3  of hotel, restaurant and club liquor licensees.
     4     Except as hereinafter provided, such license shall authorize
     5  the holder thereof to sell or deliver malt or brewed beverages
     6  in quantities above specified anywhere within the Commonwealth
     7  of Pennsylvania, which, in the case of distributors, have been
     8  purchased only from persons licensed under this act as
     9  manufacturers or importing distributors, and in the case of
    10  importing distributors, have been purchased from manufacturers
    11  or persons outside this Commonwealth engaged in the legal sale
    12  of malt or brewed beverages or from manufacturers or importing
    13  distributors licensed under this article. In the case of an
    14  importing distributor, the holder of such a license shall be
    15  authorized to store malt or brewed beverages owned by an out of
    16  State manufacturer at a segregated portion of a warehouse or
    17  other storage facility authorized by section 441(d) and operated
    18  by the importing distributor within its appointed territory and
    19  deliver such beverages to another importing distributor who has
    20  been granted distribution rights by the out of State
    21  manufacturer as provided herein. The importing distributor shall
    22  be permitted to receive a fee from the out of State manufacturer
    23  for any related storage or delivery services. In the case of a
    24  bailee for hire hired by an out of State manufacturer, the
    25  holder of such a permit shall be authorized: to receive or store
    26  malt or brewed beverages under the same conditions as permitted
    27  for a distributor or importing distributor under section 441(f)
    28  produced by that out of State manufacturer for sale by that
    29  manufacturer to importing distributors to whom that out of State
    30  manufacturer has given distribution rights pursuant to this
    20020S1365B2412                 - 33 -

     1  subsection or to purchasers outside this Commonwealth for
     2  delivery outside this Commonwealth; or to ship to that out of
     3  State manufacturer's storage facilities outside this
     4  Commonwealth. The bailee for hire shall be permitted to receive
     5  a fee from the out of State manufacturer for any related storage
     6  or delivery services. The bailee for hire shall, as required in
     7  Article V of this act, keep complete and accurate records of all
     8  transactions, inventory, receipts and shipments and make all
     9  records and the licensed areas available for inspection by the
    10  board and for the Pennsylvania State Police, Bureau of Liquor
    11  Control Enforcement, during normal business hours.
    12     Each out of State manufacturer of malt or brewed beverages
    13  whose products are sold and delivered in this Commonwealth shall
    14  give distributing rights for such products in designated
    15  geographical areas to specific importing distributors, and such
    16  importing distributor shall not sell or deliver malt or brewed
    17  beverages manufactured by the out of State manufacturer to any
    18  person issued a license under the provisions of this act whose
    19  licensed premises are not located within the geographical area
    20  for which he has been given distributing rights by such
    21  manufacturer. Should a licensee accept the delivery of such malt
    22  or brewed beverages in violation of this section, said licensee
    23  shall be subject to a suspension of his license for at least
    24  thirty days: Provided, That the importing distributor holding
    25  such distributing rights for such product shall not sell or
    26  deliver the same to another importing distributor without first
    27  having entered into a written agreement with the said secondary
    28  importing distributor setting forth the terms and conditions
    29  under which such products are to be resold within the territory
    30  granted to the primary importing distributor by the
    20020S1365B2412                 - 34 -

     1  manufacturer.
     2     When a Pennsylvania manufacturer of malt or brewed beverages
     3  licensed under this article names or constitutes a distributor
     4  or importing distributor as the primary or original supplier of
     5  his product, he shall also designate the specific geographical
     6  area for which the said distributor or importing distributor is
     7  given distributing rights, and such distributor or importing
     8  distributor shall not sell or deliver the products of such
     9  manufacturer to any person issued a license under the provisions
    10  of this act whose licensed premises are not located within the
    11  geographical area for which distributing rights have been given
    12  to the distributor and importing distributor by the said
    13  manufacturer: Provided, That the importing distributor holding
    14  such distributing rights for such product shall not sell or
    15  deliver the same to another importing distributor without first
    16  having entered into a written agreement with the said secondary
    17  importing distributor setting forth the terms and conditions
    18  under which such products are to be resold within the territory
    19  granted to the primary importing distributor by the
    20  manufacturer. Nothing herein contained shall be construed to
    21  prevent any manufacturer from authorizing the importing
    22  distributor holding the distributing rights for a designated
    23  geographical area from selling the products of such manufacturer
    24  to another importing distributor also holding distributing
    25  rights from the same manufacturer for another geographical area,
    26  providing such authority be contained in writing and a copy
    27  thereof be given to each of the importing distributors so
    28  affected.
    29     * * *
    30     Section 16 13.  Section 432(d) and (e) of the act, amended     <--
    20020S1365B2412                 - 35 -

     1  December 20, 2000 (P.L.992, No.141), are amended to read:
     2     Section 432.  Malt and Brewed Beverages Retail Licenses.--* *
     3  *
     4     (d)  The board shall, in its discretion, grant or refuse any
     5  new license or the transfer of any license to a new location if
     6  such place proposed to be licensed is within three hundred feet
     7  of any church, hospital, charitable institution, school, or
     8  public playground, or if such new license or transfer is applied
     9  for a place which is within two hundred feet of any other
    10  premises which is licensed by the board. The board shall refuse
    11  any application for a new license or the transfer of any license
    12  to a new location if, in the board's opinion, such new license
    13  or transfer would be detrimental to the welfare, health, peace
    14  and morals of the inhabitants of the neighborhood within a
    15  radius of five hundred feet of the place to be licensed. The
    16  board may enter into an agreement with the applicant concerning
    17  additional restrictions on the license in question. If the board
    18  and the applicant enter into such an agreement, such agreement
    19  shall be binding on the applicant. Failure by the applicant to
    20  adhere to the agreement will be sufficient cause to form the
    21  basis for a citation under section 471 and for the nonrenewal of
    22  the license under section 470. If the board enters into an
    23  agreement with an applicant concerning additional restrictions,
    24  those restrictions shall be binding on subsequent holders of the
    25  license until the license is transferred to a new location or
    26  until the board enters into a subsequent agreement removing
    27  those restrictions. If the application in question involves a
    28  location previously licensed by the board, then any restrictions
    29  imposed by the board on the previous license at that location
    30  shall be binding on the applicant unless the board enters into a
    20020S1365B2412                 - 36 -

     1  new agreement rescinding those restrictions. The board shall
     2  refuse any application for a new license or the transfer of any
     3  license to a location where the sale of liquid fuels or oil is
     4  conducted: And provided further, That the board shall have the
     5  discretion to refuse a license to any person or to any
     6  corporation, partnership or association if such person, or any
     7  officer or director of such corporation, or any member or
     8  partner of such partnership or association shall have been
     9  convicted or found guilty of a felony within a period of five
    10  years immediately preceding the date of application for the said
    11  license. The board may, in its discretion, refuse an application
    12  for an economic development license under section 461(b.1) or an
    13  application for an intermunicipal transfer or a license if the
    14  board receives a protest from the governing body of the
    15  receiving municipality. The receiving municipality of an
    16  intermunicipal transfer or an economic development license under
    17  section 461(b.1) may file a protest against the approval for
    18  issuance of a license for economic development or an
    19  intermunicipal transfer of a license into its municipality, and
    20  such municipality shall have standing in a hearing to present
    21  testimony in support of or against the issuance or transfer of a
    22  license. Upon any opening in any quota, an application for a new
    23  license shall only be filed with the board for a period of six
    24  months following said opening.
    25     (e)  Every applicant for a new or for the transfer of an
    26  existing license to another premises not then licensed shall
    27  post, for a period of at least [fifteen] thirty days beginning
    28  with the day the application is filed with the board, in a
    29  conspicuous place on the outside of the premises or in a window
    30  plainly visible from the outside of the premises for which the
    20020S1365B2412                 - 37 -

     1  license is applied or at the proposed new location, a notice of
     2  such application[,]. The notice shall indicate whether the
     3  applicant is applying for the amusement permit required by
     4  section 493(10). The notice shall be in such form, be of such
     5  size, and [containing] contain such provisions as the board may
     6  require by its regulations. Proof of the posting of such notice
     7  shall be filed with the board.
     8     * * *
     9     Section 17 14.  Section 436(b) of the act, amended February    <--
    10  21, 2002 (P.L.103, No.10), is amended to read:
    11     Section 436.  Application for Distributors', Importing
    12  Distributors' and Retail Dispensers' Licenses.--Application for
    13  distributors', importing distributors' and retail dispensers'
    14  licenses, or for the transfer of an existing license to another
    15  premises not then licensed, or to another person, shall contain
    16  or have attached thereto the following information and
    17  statements:
    18     * * *
    19     (b)  The particular place for which the license is desired
    20  and a detailed description thereof. The description, information
    21  and plans referred to in this subsection shall show the premises
    22  or the proposed location for the construction of the premises at
    23  the time the application is made, and shall show any alterations
    24  proposed to be made thereto, or the new building proposed to be
    25  constructed after the approval by the board of the application
    26  for a license, or for the transfer of an existing license to
    27  another premises not then licensed or to another person. No
    28  physical alterations, improvements or changes shall be required
    29  to be made to any hotel, eating place or club, nor shall any new
    30  building for any such purpose be required to be constructed
    20020S1365B2412                 - 38 -

     1  until approval of the application for license or for the
     2  transfer of an existing license to another premises not then
     3  licensed or to another person by the board. After approval of
     4  the application, the licensee shall make the physical
     5  alterations, improvements and changes to the licensed premises,
     6  or shall construct the new building in the manner specified by
     7  the board at the time of approval. The licensee shall not
     8  transact any business under the license until the board has
     9  approved the completed physical alterations, improvements and
    10  changes of the licensed premises or the completed construction
    11  of the new building as conforming to the specifications required
    12  by the board at the time of issuance or transfer of the license
    13  and is satisfied that the premises meet the requirements for a
    14  distributor's or importing distributor's license as set forth in
    15  this act or that the establishment is an eating place, hotel or
    16  club as defined by this act. The board may require that all such
    17  alterations or construction or conformity to definition be
    18  completed within six months from the time of issuance or
    19  transfer of the license. Failure to comply with these
    20  requirements shall be considered cause for revocation of the
    21  license. No such license shall be transferable between the time
    22  of issuance or transfer of the license and the approval of the
    23  completed alterations or construction by the board and full
    24  compliance by the licensee with the requirements of this act,
    25  except in the case of death of the licensee prior to full
    26  compliance with all of the aforementioned requirements[,] or
    27  unless full compliance is impossible for reasons beyond the
    28  licensee's control, in which event the license may be
    29  transferred by the board as provided in this act.
    30     * * *
    20020S1365B2412                 - 39 -

     1     Section 19 15.  Section 441(b) of the act, amended May 31,     <--
     2  1996 (P.L.312, No.49), is amended to read:
     3     Section 441.  Distributors' and Importing Distributors'
     4  Restrictions on Sales, Storage, Etc.--* * *
     5     (b)  No distributor or importing distributor shall sell any
     6  malt or brewed beverages in quantities of less than a case or
     7  original containers containing one hundred twenty-eight ounces
     8  or more which may be sold separately: Provided, That no malt or
     9  brewed beverages sold or delivered shall be consumed upon the
    10  premises of the distributor or importing distributor, or in any
    11  place provided for such purpose by such distributor or importing
    12  distributor. Notwithstanding any other provision of this section
    13  or act, malt or brewed beverages which are part of a tasting
    14  conducted pursuant to the board's regulations may be consumed on
    15  licensed premises.
    16     Section 20 16.  Section 442 of the act is amended by adding a  <--
    17  subsection to read:
    18     Section 442.  Retail Dispensers' Restrictions on Purchases
    19  and Sales.--* * *
    20     (e)  The holder of a retail dispenser license located in a
    21  hotel may allow persons to transport malt or brewed beverages
    22  from the licensed portion of the premises to the unlicensed
    23  portion of the premises so long as the malt or brewed beverages
    24  remain on the hotel property. In addition, the holder of a
    25  retail dispenser license located on a golf course may allow its
    26  patrons to order malt or brewed beverages on licensed premises
    27  for subsequent delivery by the licensee on nonlicensed portions
    28  of the premises, including the golf course.
    29     Section 21 17.  Section 464 of the act, amended December 20,   <--
    30  2000 (P.L.992, No.141), is amended to read:
    20020S1365B2412                 - 40 -

     1     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
     2  Transfers; Appeals.--The board may of its own motion, and shall
     3  upon the written request of any applicant for club, hotel or
     4  restaurant liquor license, or any applicant for any malt or
     5  brewed beverage license other than a public service license, or
     6  for renewal or transfer thereof, or for the renewal of an
     7  amusement permit, whose application for such license, renewal or
     8  transfer, or the renewal of an amusement permit, has been
     9  refused, fix a time and place for hearing of such application
    10  for license or for renewal or transfer thereof, or the renewal
    11  of an amusement permit, notice of which hearing shall be mailed
    12  to the applicant at the address given in his application. Such
    13  hearing shall be before a hearing examiner designated by the
    14  board. At such hearing, the board shall present its reasons for
    15  its refusal or withholding of license, renewal or transfer
    16  thereof, or its refusal for renewal of an amusement permit. The
    17  applicant may appear in person or by counsel, may cross-examine
    18  the witnesses for the board and may present evidence which shall
    19  likewise be subject to cross-examination by the board. Such
    20  hearing shall be stenographically recorded. The hearing examiner
    21  shall thereafter report, with the examiner's recommendation, to
    22  the board in each case. The board shall thereupon grant or
    23  refuse the license, renewal or transfer thereof or the renewal
    24  of an amusement permit. In considering the renewal of a license
    25  or amusement permit, the board shall not refuse any such renewal
    26  on the basis of the propriety of the original issuance or any
    27  prior renewal of such license or amusement permit. If the board
    28  shall refuse such license, renewal or transfer or the renewal of
    29  an amusement permit, following such hearing, notice in writing
    30  of such refusal shall be mailed to the applicant at the address
    20020S1365B2412                 - 41 -

     1  given in his application. In all such cases, the board shall
     2  file of record at least a brief statement in the form of an
     3  opinion of the reasons for the ruling or order and furnish a
     4  copy thereof to the applicant. Any applicant who has appeared at
     5  any hearing, as above provided, who is aggrieved by the refusal
     6  of the board to issue any such license or to renew or transfer
     7  any such license or to issue or renew any amusement permit may
     8  appeal, or any church, hospital, charitable institution, school
     9  or public playground located within three hundred feet of the
    10  premises applied for, aggrieved by the action of the board in
    11  granting the issuance of any such license or the transfer of any
    12  such license, may take an appeal limited to the question of such
    13  grievance, within twenty days from date of refusal or grant, to
    14  the court of common pleas of the county in which the premises or
    15  permit applied for is located. If the application is for an
    16  economic development license under section 461(b.1) or the
    17  intermunicipal transfer of a license, the governing body of the
    18  municipality receiving the new license or the transferred
    19  license may file an appeal of the board decision granting the
    20  license, within twenty days of the date of the board's decision,
    21  to the court of common pleas of the county in which the proposed
    22  premises is located. Such appeal shall be upon petition of the
    23  aggrieved party, who shall serve a copy thereof upon the board,
    24  whereupon a hearing shall be held upon the petition by the court
    25  upon ten days' notice to the board. The said appeal shall act as
    26  a supersedeas unless upon sufficient cause shown the court shall
    27  determine otherwise. The court shall hear the application de
    28  novo on questions of fact, administrative discretion and such
    29  other matters as are involved, at such time as it shall fix, of
    30  which notice shall be given to the board. The court shall either
    20020S1365B2412                 - 42 -

     1  sustain or over-rule the action of the board and either order or
     2  deny the issuance of a new license or the renewal or transfer of
     3  the license or the renewal of an amusement permit to the
     4  applicant.
     5     Section 22 18.  Section 470(a) of the act, amended December    <--
     6  21, 1998 (P.L.1202, No.155), is amended to read:
     7     Section 470.  Renewal of Licenses; Temporary Provisions for
     8  Licensees in Armed Service.--(a)  All applications for renewal
     9  of licenses under the provisions of this article shall be filed
    10  with tax clearance from the Department of Revenue and the
    11  Department of Labor and Industry and requisite license and
    12  filing fees at least sixty days before the expiration date of
    13  same: Provided, however, That the board, in its discretion, may
    14  accept nunc pro tunc a renewal application filed less than sixty
    15  days before the expiration date of the license with the required
    16  fees, upon reasonable cause shown and the payment of an
    17  additional filing fee of one hundred dollars ($100.00) for late
    18  filing: And provided further, That except where the failure to
    19  file a renewal application on or before the expiration date has
    20  created a license quota vacancy after said expiration date which
    21  has been filled by the issuance of a new license, after such
    22  expiration date, but before the board has received a renewal
    23  application nunc pro tunc within the time prescribed herein the
    24  board, in its discretion, may, after hearing, accept a renewal
    25  application filed within two years after the expiration date of
    26  the license with the required fees upon the payment of an
    27  additional filing fee of two hundred fifty dollars ($250.00) for
    28  late filing. Where any such renewal application is filed less
    29  than sixty days before the expiration date, or subsequent to the
    30  expiration date, no license shall issue upon the filing of the
    20020S1365B2412                 - 43 -

     1  renewal application until the matter is finally determined by
     2  the board and if an appeal is taken from the board's action the
     3  courts shall not order the issuance of the renewal license until
     4  final determination of the matter by the courts. The board may
     5  enter into an agreement with the applicant concerning additional
     6  restrictions on the license in question. If the board and the
     7  applicant enter into such an agreement, such agreement shall be
     8  binding on the applicant. Failure by the applicant to adhere to
     9  the agreement will be sufficient cause to form the basis for a
    10  citation under section 471 and for the nonrenewal of the license
    11  under this section. A renewal application will not be considered
    12  filed unless accompanied by the requisite filing and license
    13  fees and any additional filing fee required by this section.
    14  Unless the board shall have given ten days' previous notice to
    15  the applicant of objections to the renewal of his license, based
    16  upon violation by the licensee or his servants, agents or
    17  employes of any of the laws of the Commonwealth or regulations
    18  of the board relating to the manufacture, transportation, use,
    19  storage, importation, possession or sale of liquors, alcohol or
    20  malt or brewed beverages, or the conduct of a licensed
    21  establishment, or unless the applicant has by his own act become
    22  a person of ill repute, or unless the premises do not meet the
    23  requirements of this act or the regulations of the board, the
    24  license of a licensee shall be renewed.
    25     * * *
    26     Section 23 19.  Section 471(c) of the act, amended February    <--
    27  21, 2002 (P.L.103, No.10), is amended to read:
    28     Section 471.  Revocation and Suspension of Licenses; Fines.--
    29  * * *
    30     (c)  The administrative law judge may consider the licensee's
    20020S1365B2412                 - 44 -

     1  prior citation history when imposing a penalty. If the violation
     2  in question is a third or subsequent violation of [this act] any
     3  offense referred to in subsection (b) or Title 18 of the
     4  Pennsylvania Consolidated Statutes (relating to crimes and
     5  offenses), occurring within a period of four years, the
     6  administrative law judge shall impose a suspension or
     7  revocation.
     8     * * *
     9     Section 24 20.  Section 472 of the act is amended by adding a  <--
    10  subsection to read:
    11     Section 472.  Local Option.--* * *
    12     (e)  A vote on the ballot question regarding the granting of
    13  liquor licenses that changes the municipality's status on that
    14  issue supersedes any earlier contrary votes on the granting of
    15  liquor licenses to public venues, performing arts facilities,
    16  hotels, golf courses, incorporated units of national veterans'
    17  clubs and special occasion permits. In addition, a vote on the
    18  ballot question regarding the granting of liquor licenses that
    19  changes the municipality's status on that issue supersedes any
    20  earlier contrary votes on the issuance of granting licenses to
    21  retail dispensers of malt and brewed beverages.
    22     Section 25 21.  Section 472.3(a) of the act is amended to      <--
    23  read:
    24     Section 472.3.  Exchange of Certain Licenses.--(a)  [In any
    25  municipality wherein restaurant liquor license issue, the] The
    26  board may issue to a club as defined in this act, a club liquor
    27  license in exchange for a club retail dispenser license in any
    28  municipality which has approved the granting of liquor licenses.
    29     * * *
    30     Section 26 22.  The act is amended by adding a section to      <--
    20020S1365B2412                 - 45 -

     1  read:
     2     Section 474.1.  Surrender of Restaurant, Eating Place Retail
     3  Dispenser, Hotel, Importing Distributor and Distributor License
     4  for Benefit of Licensee.--(a)  A restaurant, eating place retail
     5  dispenser, hotel, importing distributor and distributor licensee
     6  whose licensed establishment is not in operation for fifteen
     7  consecutive days shall return its license for safekeeping with
     8  the board no later than at the expiration of the fifteen-day
     9  period. The license may only be reissued from safekeeping in the
    10  manner set forth by the board through regulation.
    11     (b)  The board may hold the license in safekeeping for a
    12  period not to exceed three consecutive years. Any license
    13  remaining in safekeeping for more than three consecutive years
    14  shall be immediately revoked by the Bureau of Licensing unless a
    15  transfer application or request for reissue from safekeeping has
    16  been filed prior to the expiration of the three-year period. The
    17  board shall extend the period for an additional year if at the
    18  end of the three-year period, the licensed premises are
    19  unavailable due to fire, flood or other similar natural
    20  disaster.
    21     (c)  In the event a transfer application filed prior to the
    22  expiration of the three-year period is disapproved by the board,
    23  through its exercise of discretion, then the license may remain
    24  in safekeeping for an additional period of three consecutive
    25  months after the board's decision to refuse the transfer
    26  application. Failure to remove the license from safekeeping or
    27  to file another transfer application prior to the expiration of
    28  the three-month period of time shall result in revocation of the
    29  license.
    30     (d)  Any period of time in which the licensee allows the
    20020S1365B2412                 - 46 -

     1  license to lapse by not filing a timely license renewal or
     2  license validation shall be considered time in which the license
     3  was held in safekeeping, for purposes of this section.
     4     (e)  A license placed in safekeeping prior to the effective
     5  date of this act will be deemed to have been placed in
     6  safekeeping on the effective date of this act, for purposes of
     7  this section.
     8     Section 27 23.  Section 478(c) of the act is repealed.         <--
     9     Section 28 24.  Section 491(7) and (11) of the act, amended    <--
    10  February 21, 2002 (P.L.103, No.10), are amended to read:
    11     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
    12  Liquor Licensees.--
    13     It shall be unlawful--
    14     * * *
    15     (7)  Sales of Liquor by Manufacturers and Licensed Importers.
    16  For any manufacturer or licensed importer of liquor in this
    17  Commonwealth, his agents, servants or employes, to sell or offer
    18  to sell any liquor in this Commonwealth except to the board for
    19  use in Pennsylvania Liquor Stores, and in the case of a
    20  manufacturer, to the holder of a sacramental wine license or an
    21  importer's license[, but a manufacturer or licensed importer may
    22  sell or offer to sell liquor to persons outside of this
    23  Commonwealth]. Notwithstanding any other provision of this act,
    24  a manufacturer or licensed importer may sell or offer to sell
    25  liquor for delivery outside of this Commonwealth.
    26     * * *
    27     (11)  Importation of Liquor. For any person, other than the
    28  board or the holder of a sacramental wine license, an importer's
    29  license or a direct shipper's license, to import any liquor
    30  whatsoever into this Commonwealth, but this section shall not be
    20020S1365B2412                 - 47 -

     1  construed to prohibit railroad and pullman companies from
     2  purchasing and selling liquors purchased outside the
     3  Commonwealth in their dining, club and buffet cars which are
     4  covered by public service liquor licenses and which are operated
     5  in this Commonwealth.
     6     * * *
     7     Section 29 25.  Section 492(8) and (10) of the act, amended    <--
     8  December 21 1998 (P.L.1202, No.155), are amended to read:
     9     Section 492.  Unlawful Acts Relative to Malt or Brewed
    10  Beverages and Licensees.--
    11     It shall be unlawful--
    12     * * *
    13     (8)  Transportation and Importation of Malt or Brewed
    14  Beverages. For any person, to transport malt or brewed beverages
    15  except in the original containers, or to transport malt or
    16  brewed beverages for another who is engaged in selling either
    17  liquor or malt or brewed beverages, unless such person shall
    18  hold (a) a license to transport for hire, alcohol, liquor and
    19  malt or brewed beverages, as hereinafter provided in this act,
    20  or (b) shall hold a permit issued by the board and shall have
    21  paid to the board such permit fee, as prescribed in section 614-
    22  A of the act of April 9, 1929 (P.L.177, No.175), known as "The
    23  Administrative Code of 1929," any other law to the contrary
    24  notwithstanding. This clause shall not be construed:
    25     (i)  to prohibit transportation of malt or brewed beverages
    26  through this Commonwealth and not for delivery in this
    27  Commonwealth if such transporting is done in accordance with the
    28  rules and regulations of the board; or
    29     (ii)  to prohibit railroad and Pullman companies from selling
    30  malt or brewed beverages purchased outside this Commonwealth in
    20020S1365B2412                 - 48 -

     1  their dining, club and buffet cars which are covered by public
     2  service liquor licenses and which are operated in this
     3  Commonwealth.
     4     * * *
     5     [(10)  Importing or Transporting Malt or Brewed Beverages
     6  Without Tax Stamps. For any person, to transport within or
     7  import any malt or brewed beverages into this Commonwealth,
     8  except in accordance with the rules and regulations of the
     9  board, or for any person to transport malt or brewed beverages
    10  into or within this Commonwealth, unless there shall be affixed
    11  to the original containers in which such malt or brewed
    12  beverages are transported, stamps or crowns evidencing the
    13  payment of the malt liquor tax to the Commonwealth: Provided,
    14  however, That this clause shall not be construed to prohibit
    15  transportation of malt or brewed beverages through this
    16  Commonwealth and not for delivery therein, if such transporting
    17  is done in accordance with the rules and regulations of the
    18  board.]
    19     * * *
    20     Section 30 26.  Section 493(14) and (17) of the act, amended   <--
    21  February 21, 2002 (P.L.103, No.10), are amended to read:
    22     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    23  Brewed Beverages and Licensees.--The term "licensee," when used
    24  in this section, shall mean those persons licensed under the
    25  provisions of Article IV, unless the context clearly indicates
    26  otherwise.
    27     It shall be unlawful--
    28     * * *
    29     (14)  Permitting Undesirable Persons or Minors to Frequent
    30  Premises. For any hotel, restaurant or club liquor licensee, or
    20020S1365B2412                 - 49 -

     1  any retail dispenser, his servants, agents or employes, to
     2  permit persons of ill repute, prostitutes or minors to frequent
     3  his licensed premises or any premises operated in connection
     4  therewith, except minors accompanied by parents, guardians, or
     5  under proper supervision or except minors who frequent any
     6  restaurant or retail dispensing licensee whose sales of food and
     7  non-alcoholic beverages are equal to fifty per centum or more of
     8  the combined gross sales of both food and alcoholic beverages on
     9  the condition that alcoholic beverages may not be served at the
    10  table or booth at which the said minor is seated at the time
    11  (unless said minor is under proper supervision as hereinafter
    12  defined) and on the further condition that only table service of
    13  alcoholic beverages or take-out service of beer shall be
    14  permitted in the room wherein the minor is located: Provided,
    15  however, That it shall not be unlawful for any hotel, restaurant
    16  or club liquor licensee or any retail dispenser to permit minors
    17  under proper supervision upon the licensed premises or any
    18  premises operated in connection therewith for the purpose of a
    19  social gathering, even if such gathering is exclusively for
    20  minors: And provided further, That no liquor shall be sold,
    21  furnished or given to such minors nor shall the licensee
    22  knowingly permit any liquor or malt or brewed beverages to be
    23  sold, furnished or given to or be consumed by any minor, and the
    24  area of such gathering shall be segregated from the remainder of
    25  the licensed premises. In the event the area of such gathering
    26  cannot be segregated from the remainder of the licensed
    27  premises, all alcoholic beverages must be either removed from
    28  the licensed premises or placed under lock and key during the
    29  time the gathering is taking place. Written notice, at least
    30  forty-eight (48) hours in advance of such gathering, shall be
    20020S1365B2412                 - 50 -

     1  given to the enforcement bureau. Any licensee violating the
     2  provisions of this clause shall be subject to the provisions of
     3  section 471. Nothing in this clause shall be construed to make
     4  it unlawful for minors to frequent public venues or performing
     5  arts facilities.
     6     "Proper supervision," as used in this clause, means the
     7  presence, on that portion of the licensed premises where a minor
     8  or minors are present, of one person twenty-five years of age or
     9  older for every [fifty] five minors or part thereof who is
    10  directly responsible for the care and conduct of such minor or
    11  minors while on the licensed premises and in such proximity that
    12  the minor or minors are constantly within his sight or hearing.
    13  The presence of the licensee or any employe or security officer
    14  of the licensee shall not constitute proper supervision.
    15     * * *
    16     (17)  Licensees, etc., Interested or Employed in
    17  Manufacturing or Sale of Equipment or Fixtures. For any
    18  licensee, or any officer, director, stockholder, servant, agent
    19  or employe of any licensee, to own any interest, directly or
    20  indirectly, in or be employed or engaged in any business which
    21  involves the manufacture or sale of any equipment, furnishings
    22  or fixtures to any hotel, restaurant or club licensees, or to
    23  any importing distributors, distributors or retail dispensers[:
    24  Provided, however, That as to malt or brewed beverage licensees,
    25  the provisions of this subsection shall not apply to such a
    26  conflicting interest if it has existed for a period of not less
    27  than three years prior to the first day of January, one thousand
    28  nine hundred thirty-seven, and the board shall approve].
    29  Notwithstanding any other provision of this section or this act,
    30  licensees may sell glasses at not less than cost and to provide
    20020S1365B2412                 - 51 -

     1  metal keg connectors and tap knobs to other licensees and to
     2  holders of special occasion permits.
     3     * * *
     4     Section 31 27.  Section 493(20)(i) of the act, amended May     <--
     5  31, 1996 (P.L.312, No.49), is amended to read:
     6     Section 493.  Unlawful Acts Relative to Liquor, Malt and
     7  Brewed Beverages and Licensees.--The term "licensee," when used
     8  in this section, shall mean those persons licensed under the
     9  provisions of Article IV, unless the context clearly indicates
    10  otherwise.
    11     It shall be unlawful--
    12     * * *
    13     (20)  (i)  Retail Liquor and Retail Malt or Brewed Beverages
    14  Licensee's Inside Advertisements. For any retail liquor or
    15  retail malt or brewed beverages licensee, to display or permit
    16  the display in the show window or doorways of his licensed
    17  premises, any placard or sign advertising the brands of liquor
    18  or malt or brewed beverages, if the total display area of any
    19  such placard or sign advertising the product or products exceeds
    20  six hundred square inches. Nothing herein shall prohibit a
    21  licensee from displaying inside his licensed premises point of
    22  sale displays advertising brand names of products sold by him,
    23  other than a window or door display: Provided, That the total
    24  cost of all such point of sale advertising matter relating to
    25  any one brand shall [not exceed the sum of one hundred forty
    26  dollars ($140) at any one time, and no single piece of
    27  advertising shall exceed a cost of seventy dollars ($70). The
    28  board is authorized to make annual adjustments to the cost
    29  limitations on point of display advertising to reflect any
    30  changes in such limitations by the United States Bureau of
    20020S1365B2412                 - 52 -

     1  Alcohol, Tobacco and Firearms or its successors in accordance
     2  with 27 CFR 6.83 (relating to product displays) and 27 CFR 6.85
     3  (relating to retailer advertising specialties).] not exceed the
     4  dollar amount set forth by the board through regulation. All
     5  such advertising material, including the window and door signs,
     6  may be furnished by a manufacturer, distributor or importing
     7  distributor. The restrictions on advertising set forth in
     8  subclause (ii) and in clauses (20.1) and (20.2) shall also apply
     9  to this subclause.
    10     * * *
    11     Section 32 28.  Section 493.1 of the act, added October 5,     <--
    12  1994 (P.L.522, No.77), is amended to read:
    13     Section 493.1.  Rights of Municipalities Preserved.--(a)
    14  Nothing in this act shall be construed to preempt the right of
    15  any municipality to regulate zoning and enforce any other local
    16  ordinances and codes dealing with health and welfare issues.
    17     (b)  A municipality that wishes to supersede those provisions  <--
    18  of the board's regulations pertaining to amplified music being
    19  heard off the licensed premises may do so by notifying the board
    20  that the municipality has adopted an ordinance to impose the
    21  requirements of its own local noise ordinance in lieu of the
    22  board's regulations on licensed premises within its boundaries.
    23  If a municipality chooses to give the board such notification,
    24  those provisions of the board's regulations pertaining to
    25  amplified music being heard off the licensed premises, shall not
    26  be applicable to licensed premises located in that municipality
    27  until the municipality informs the board that it will no longer
    28  supersede the board's regulations.
    29     (B)  A MUNICIPALITY MAY FILE AN APPLICATION WITH THE BOARD TO  <--
    30  CONSIDER AN EXEMPTION FROM THE BOARD'S REGULATIONS REGARDING
    20020S1365B2412                 - 53 -

     1  AMPLIFIED MUSIC BEING HEARD OFF THE LICENSED PREMISES FOR ALL
     2  THE LICENSEES WITHIN AN IDENTIFIABLE AREA IN THE MUNICIPALITY
     3  WITH A CONCENTRATED NUMBER OF LICENSEES. PRIOR TO SUBMITTING AN
     4  APPLICATION, THE MUNICIPALITY SHALL ADOPT A LOCAL NOISE
     5  ORDINANCE AND A RESOLUTION ADOPTED BY ITS GOVERNING BODY
     6  CONFIRMING SUPPORT OF THE APPLICATION, CITING THE NOISE
     7  ORDINANCE AND THEIR INTENTION TO ENFORCE THE ORDINANCE IN PLACE
     8  OF THE BOARD'S REGULATIONS. UPON RECEIPT OF AN APPLICATION,
     9  INCLUDING A COPY OF THE NOISE ORDINANCE AND RESOLUTION, THE
    10  BOARD SHALL HOLD AT LEAST ONE PUBLIC HEARING ON THE APPLICATION.
    11  THE HEARING MAY BE HELD BEFORE A HEARING EXAMINER. THE HEARING
    12  SHALL TAKE PLACE WITHIN THE IDENTIFIED AREA AND MUST COMPLY WITH
    13  ALL REQUIREMENTS OF 65 PA.C.S. CH. 7 (RELATING TO OPEN
    14  MEETINGS). WITHIN SIXTY DAYS AFTER RECEIPT OF THE APPLICATION,
    15  THE BOARD SHALL, IN ITS DISCRETION, APPROVE OR DISAPPROVE THE
    16  APPLICATION FOR AN EXEMPTION IN ITS ENTIRETY OR MAY APPROVE AN
    17  AREA MORE LIMITED FOR WHICH THE EXEMPTION WILL BE GRANTED. THERE
    18  SHALL BE A RIGHT TO APPEAL TO THE COURT OF COMMON PLEAS IN THE
    19  SAME MANNER AS PROVIDED BY THIS ACT FOR APPEALS FROM REFUSALS TO
    20  GRANT LICENSES.
    21     Section 33 29.  Section 498(g) of the act, amended February    <--
    22  21, 2002 (P.L.103, No.10), is amended to read:
    23     Section 498.  Unlawful Advertising.-- * * *
    24     (g)  For purposes of this subsection, the term
    25  "advertisement" shall mean any advertising of alcoholic
    26  beverages through the medium of radio broadcast, television
    27  broadcast, newspapers, periodicals or other publication, outdoor
    28  advertisement, any form of electronic transmission or any other
    29  printed or graphic matter, including booklets, flyers or cards,
    30  or on the product label or attachment itself.
    20020S1365B2412                 - 54 -

     1     Section 34 30.  Section 505.2(2) of the act, amended November  <--
     2  10, 1999 (P.L.514, No.49), is amended to read:
     3     Section 505.2.  Limited Wineries.--In the interest of
     4  promoting tourism and recreational development in Pennsylvania,
     5  holders of a limited winery license may:
     6     * * *
     7     (2)  Sell alcoholic cider, wine and wine coolers produced by
     8  the limited winery or purchased in bulk in bond from another
     9  Pennsylvania limited winery on the licensed premises, under such
    10  conditions and regulations as the board may enforce, to the
    11  board, to individuals and to brewery, hotel, restaurant, club
    12  and public service liquor licensees, and to Pennsylvania winery
    13  licensees: Provided, That a limited winery shall not, in any
    14  calendar year, purchase alcoholic cider or wine produced by
    15  other limited wineries in an amount in excess of fifty per
    16  centum of the alcoholic cider or wine produced by the purchasing
    17  limited winery in the preceding calendar year. In addition, the
    18  holder of a limited winery license may purchase wine in bottles
    19  from another Pennsylvania limited winery if these wines undergo
    20  a second fermentation process. Such wine may be sold in bottles
    21  bearing the purchasing limited winery's label or the producing
    22  limited winery's label. Such wines, if sold by the board, may be
    23  sold by the producing limited winery to the purchasing limited
    24  winery at a price lower than the price charged by the board.
    25     * * *
    26     Section 35 31.  Sections 505.3, 509 and 515 AND 509 of the     <--
    27  act are amended to read:
    28     [Section 505.3.  Distilleries.--Distilleries of historical
    29  significance established more than one hundred years prior to
    30  January 1, 1975 which hold a license issued under section 505
    20020S1365B2412                 - 55 -

     1  may sell liquor produced by the distillery on the licensed
     2  premises under such conditions and regulations as the board may
     3  enforce.]
     4     Section 509.  License Must Be Posted; Business Hours.--
     5  Licenses shall be issued by the board under its official seal.
     6  Every license so issued must at all times be posted in a
     7  conspicuous place where the business is carried on under it[,
     8  and said place of business must be kept open during general
     9  business hours of every day in the year except Sundays and legal
    10  holidays]. Licensees may be open every day except limited
    11  wineries which may be open as set forth by the board through
    12  regulations.
    13     Section 515.  Appeals.--The [board, the] enforcement bureau    <--
    14  or any applicant or any licensee aggrieved by any decision
    15  refusing, suspending or revoking a license under the provisions
    16  of this article may appeal to the [court of the county in which
    17  the licensed premises or the premises to be licensed are
    18  located. In the event an applicant or a licensee shall have no
    19  place of business established within the Commonwealth, his
    20  appeal shall be to the] Commonwealth Court. Such appeal shall be
    21  in accordance with 2 Pa.C.S. Ch. 7 Subch. A (relating to
    22  judicial review of Commonwealth agency action).
    23     Section 36 32.  This act shall take effect as follows:         <--
    24     (1)  The amendment or addition of section 305, 412 and 441(b)
    25  of the act shall take effect immediately.
    26     (2)  This section shall take effect immediately.
    27     (3)  The remainder of this act shall take effect in 60 days.


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