SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WATERS, DONATUCCI, YOUNGBLOOD, KIRKLAND, PARKER, BRENNAN, CALTAGIRONE, M. O'BRIEN, STABACK, PASHINSKI, VULAKOVICH, KOTIK AND CRUZ, JANUARY 30, 2009

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 22, 2010   

AN ACT

Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as

reenacted, "An act relating to alcoholic liquors, alcohol and

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws,"

providing for an exception to the interlocking business

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prohibition; further providing for the definition of

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"eligible entity" and for limiting the number of retail

licenses to be issued in each county; further exempting

certain hotels from certain requirements; and further

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providing further providing for revocation and suspension of

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licenses and for responsible alcohol management; providing

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for licensees engaged in or allowing other business on

licensed premises; further providing for unlawful acts

relative to liquor, malt and brewed beverages and for limited

wineries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 411(e) of the act of April 12, 1951 (P.L.

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90, No.21), known as the Liquor Code, reenacted and amended June

29, 1987 (P.L.32, No.14), is amended to read:

Section 411.  Interlocking Business Prohibited.--* * *

(e)  Except as herein provided, no hotel, restaurant, retail

dispenser or club licensee, and no officer, director or

stockholder, agent or employe of any such licensee shall in any

wise be interested, directly or indirectly, in the ownership or

leasehold of any property or the equipment of any property or

any mortgage lien against the same, used by a distributor,

importing distributor, or by an importer or sacramental wine

licensee, in the conduct of his business; nor shall any hotel,

restaurant, retail dispenser or club licensee, or any officer,

director, stockholder, agent or employe of any such licensee,

either directly or indirectly, lend any moneys, credit, or give

anything of value or the equivalent thereof, to any distributor,

importing distributor, importer or sacramental wine licensee,

for equipping, fitting out, or maintaining and conducting,

either in whole or in part, an establishment used in the conduct

of his business.

The purpose of this section is to require a separation of the

financial and business interests between manufacturers and

holders of hotel or restaurant liquor licenses and, as herein

provided, of club licenses, issued under this article, and no

person shall, by any device whatsoever, directly or indirectly,

evade the provisions of the section. But in view of existing

economic conditions, nothing contained in this section shall be

construed to prohibit the ownership of property or conflicting

interest by a manufacturer of any place occupied by a licensee

under this article after the manufacturer has continuously owned

and had a conflicting interest in such place for a period of at

least five years prior to July eighteenth, one thousand nine

hundred thirty-five: Provided, however, That this clause shall

not prohibit any hotel, restaurant or club liquor licensee from

owning land which is leased to, and the buildings thereon owned

by, a holder of a retail dispenser's license; and nothing in

this clause shall prevent the issuance of a retail dispenser's

license to a lessee of such lands who owns the buildings

thereon: And, provided further, That nothing contained in this

section shall be construed to prohibit any hotel, restaurant,

retail dispenser or club licensee or any officer, director or

stockholder, agent or employe of any such licensee from having a

financial or other interest, directly or indirectly in the

ownership or leasehold of any property or the equipment of any

property or any mortgage lien against same, used, leased by an

importer or sacramental wine licensee for the exclusive purpose

of maintaining commercial offices and on the condition that said

property is not used for the storage or sale of liquor or malt

or brewed beverages in any quantity: And, provided further, that

nothing contained herein shall prohibit an officer or member of

the board of a licensed privately owned private golf course

catering club from having an interest in a limited winery

license.

Section 2.  Section 461(c) of the act, amended July 16, 2007

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(P.L.107, No.34), is amended to read:

Section 2.  Section 461(b.3) and (c) of the act, amended or

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added November 29, 2006 (P.L.1421, No.155) and July 16, 2007

(P.L.107, No.34), are amended to read:

Section 1.  The definition of "eligible entity" in section

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102 of the act of April 12, 1951 (P.L.90, No.21), known as the

Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14)

and amended November 29, 2006 (P.L.1421, No.155), is amended to

read:

Section 102.  Definitions.--The following words or phrases,

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Eligible entity" shall mean a city of the third class, a

hospital, a church, a synagogue, a volunteer fire company, a

volunteer ambulance company, a volunteer rescue squad, a unit of

a nationally chartered club which has been issued a club liquor

license, a club in a city of the third class which has been

issued a club liquor license and which, as of December 31, 2002,

has been in existence for at least 100 years, a library, a

nationally accredited Pennsylvania nonprofit zoological

institution licensed by the United States Department of

Agriculture, a nonprofit agricultural association in existence

for at least ten years, a bona fide sportsmen's club in

existence for at least ten years, a nationally chartered

veterans' organization and any affiliated lodge or subdivision

of such organization, a fraternal benefit society that is

licensed to do business in this Commonwealth and any affiliated

lodge or subdivision of such fraternal benefit society, a museum

operated by a nonprofit corporation in a city of the third class

or township of the first class, a nonprofit corporation engaged

in the performing arts in a city of the third class, borough or

in an incorporated town, an arts council, a nonprofit

corporation that operates an arts facility or museum in a city

of the third class in the county of the fourth class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) whose purpose is to protect the architectural

heritage of boroughs and which has been recognized as such by a

municipal resolution, a nonprofit organization as defined under

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

Law 99-514, 26 U.S.C. § 501(c)(3)) conducting a regatta in a

city of the second class with the permit to be used on State

park grounds or conducting a family-oriented celebration as part

of Welcome America in a city of the first class on property

leased from that city for more than fifty years, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

raise funds for the research and treatment of cystic fibrosis, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose

purpose is to educate the public on issues dealing with

watershed conservation, a nonprofit organization as defined

under section 501(c)(3) of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to

provide equine assisted activities for children and adults with

special needs, a nonprofit economic development agency in a city

of the second class with the primary function to serve as an

economic generator for the greater southwestern Pennsylvania

region by attracting and supporting film, television and related

media industry projects and coordinating government and business

offices in support of a production, a county tourist promotion

agency as defined in section 3(1) of the act of April 28, 1961

(P.L.111, No.50), known as the "Tourist Promotion Law," and

located in a city of the third class in a county of the fourth

class or located in a township of the second class in a county

of the fifth class, a junior league in a third class county that

is a nonprofit organization as defined under section 501(c)(3)

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

that is comprised of women whose purpose is exclusively

educational and charitable in promoting the volunteerism of

women and developing and participating in community projects and

that has been in existence for over seventy years, a nonprofit

management organization defined under section 501(C)(3) of the

Internal Revenue Code of 1986 located in a city of the second

class whose purpose is to manage and improve the downtown

business district within the city of the second class or a

nonprofit organization as defined under section 501(C)(6) of the

Internal Revenue Code of 1986 which is located in a city of the

third class in a county of the third class and whose purpose is

to support business and industry.

* * *

Section 2.  Section 404 of the act, amended January 6, 2006

(P.L.1, No.1), is amended to read:

Section 404.  Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--Upon receipt of the

application and the proper fees, and upon being satisfied of the

truth of the statements in the application that the applicant is

the only person in any manner pecuniarily interested in the

business so asked to be licensed and that no other person will

be in any manner pecuniarily interested therein during the

continuance of the license, except as hereinafter permitted, and

that the applicant is a person of good repute, that the premises

applied for meet all the requirements of this act and the

regulations of the board, that the applicant seeks a license for

a hotel, restaurant or club, as defined in this act, and that

the issuance of such license is not prohibited by any of the

provisions of this act, the board shall, in the case of a hotel

or restaurant, grant and issue to the applicant a liquor

license, and in the case of a club may, in its discretion, issue

or refuse a license: Provided, however, That in the case of any

new license or the transfer of any license to a new location or

the extension of an existing license to cover an additional area

the board may, in its discretion, grant or refuse such new

license, transfer or extension if such place proposed to be

licensed is within three hundred feet of any church, hospital,

charitable institution, school, or public playground, or if such

new license, transfer or extension is applied for a place which

is within two hundred feet of any other premises which is

licensed by the board: And provided further, That the board's

authority to refuse to grant a license because of its proximity

to a church, hospital, charitable institution, public playground

or other licensed premises shall not be applicable to license

applications submitted for public venues or performing arts

facilities: And provided further, That the board shall refuse

any application for a new license, the transfer of any license

to a new location or the extension of an existing license to

cover an additional area if, in the board's opinion, such new

license, transfer or extension would be detrimental to the

welfare, health, peace and morals of the inhabitants of the

neighborhood within a radius of five hundred feet of the place

proposed to be licensed: And provided further, That the board

shall have the discretion to refuse a license to any person or

to any corporation, partnership or association if such person,

or any officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

license. The board shall refuse any application for a new

license, the transfer of any license to a new location or the

extension of any license to cover an additional area where the

sale of liquid fuels or oil is conducted. The board may enter

into an agreement with the applicant concerning additional

restrictions on the license in question. If the board and the

applicant enter into such an agreement, such agreement shall be

binding on the applicant. Failure by the applicant to adhere to

the agreement will be sufficient cause to form the basis for a

citation under section 471 and for the nonrenewal of the license

under section 470. If the board enters into an agreement with an

applicant concerning additional restrictions, those restrictions

shall be binding on subsequent holders of the license until the

license is transferred to a new location or until the board

enters into a subsequent agreement removing those restrictions.

If the application in question involves a location previously

licensed by the board, then any restrictions imposed by the

board on the previous license at that location shall be binding

on the applicant unless the board enters into a new agreement

rescinding those restrictions. The board may, in its discretion,

refuse an application for an economic development license under

section 461(b.1) or an application for an intermunicipal

transfer of a license if the board receives a protest from the

governing body of the receiving municipality. The receiving

municipality of an intermunicipal transfer or an economic

development license under section 461(b.1) may file a protest

against the transfer of a license into its municipality, and the

receiving municipality shall have standing in a hearing to

present testimony in support of or against the issuance or

transfer of a license. Upon any opening in any quota, an

application for a new license shall only be filed with the board

for a period of six months following said opening. 

Notwithstanding any other provision of law to the contrary, the

board may not refuse to transfer or renew a license previously

issued for premises located in a township of the second class

within a county of the third class that is a dry municipality

based on the fact that the municipality is a dry municipality if

the premises for which the license is being transferred or

renewed have been continuously licensed by the board for a

period of fifty years or more.

Section 3.  Section 461(c) of the act, amended July 16, 2007

(P.L.107, No.34), is amended to read:

Section 461.  Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

(b.3)  (1)  An intermunicipal transfer of a license or

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issuance of a license for economic development under subsection

(b.1)(2)(i) must first be approved by the governing body of the

receiving municipality when the total number of existing

restaurant liquor licenses and eating place retail dispenser

licenses in the receiving municipality equal or exceed one

license per three thousand inhabitants. Upon request for

approval of an intermunicipal transfer of a license or issuance

of an economic development license by an applicant, at least one

public hearing shall be held by the municipal governing body for

the purpose of receiving comments and recommendations of

interested individuals residing within the municipality

concerning the applicant's intent to transfer a license into the

municipality or acquire an economic development license from the

Pennsylvania Liquor Control Board. The governing body shall,

within forty-five days of a request for approval, render a

decision by ordinance or resolution to approve or disapprove the

applicant's request for an intermunicipal transfer of a license

or issuance of an economic development license. The municipality

may approve the request. A decision by the governing body of the

municipality to deny the request may not be appealed. A copy of

the approval must be submitted with the license application. The

approval requirement shall not apply to licenses transferred

into a tax increment district created pursuant to the act of

July 11, 1990 (P.L.465, No.113), known as the "Tax Increment

Financing Act," located in a township of the second class that

is located within a county of the second class if the district

was created prior to December 31, 2002, and the governing body

of the township has adopted an agreement at a public meeting

that consents to the transfer of licenses into the tax increment

district. Failure by the governing body of the municipality to

render a decision within forty-five days of the applicant's

request for approval shall be deemed an approval of the

application in terms as presented unless the governing body has

notified the applicant in writing of their election for an

extension of time not to exceed sixty days. Failure by the

governing body of the municipality to render a decision within

the extended time period shall be deemed an approval of the

application in terms as presented.

(2)  An intramunicipal transfer of a license within a city of

the second class located within a county of the second class

must first be approved by the governing body. Upon request for

approval of an intramunicipal transfer of a license, at least

one public hearing shall be held by the municipal governing body

for the purpose of receiving comments and recommendations of

interested individuals residing within the municipality

concerning the applicant's intent to transfer a license within

the municipality. The governing body shall, within forty-five

days of a request for approval, render a decision by ordinance

or resolution to approve or disapprove the applicant's request

for an intramunicipal transfer of a license. The municipality

may approve the request. A decision by the governing body of the

municipality to deny the request may not be appealed. A copy of

the approval must be submitted with the license application.

Failure by the governing body of the municipality to render a

decision within forty-five days of the applicant's request for

approval shall be deemed an approval of the application in terms

as presented unless the governing body has notified the

applicant in writing of their election for an extension of time

not to exceed sixty days. Failure by the governing body of the

municipality to render a decision within the extended time

period shall be deemed an approval of the application in terms

as presented.

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(c)  The word "hotel" as used in this section shall mean any

reputable place operated by a responsible person of good

reputation where the public may, for a consideration, obtain

sleeping accommodations, and which shall have the following

number of bedrooms and requirements in each case--at least one-

half of the required number of bedrooms shall be regularly

available to transient guests seven days weekly, except in

resort areas; at least one-third of such bedrooms shall be

equipped with hot and cold water, a lavatory, commode, bathtub

or shower and a clothes closet; and an additional one-third of

the total of such required rooms shall be equipped with lavatory

and commode:

(1)  In municipalities having a population of less than three

thousand, at least twelve permanent bedrooms for the use of

guests.

(2)  In municipalities having a population of three thousand

and more but less than ten thousand inhabitants, at least

sixteen permanent bedrooms for the use of guests.

(3)  In municipalities having a population of ten thousand

and more but less than twenty-five thousand inhabitants, at

least thirty permanent bedrooms for the use of guests.

(4)  In municipalities having a population of twenty-five

thousand and more but less than one hundred thousand

inhabitants, at least forty permanent bedrooms for the use of

guests.

(5)  In municipalities having a population of one hundred

thousand and more inhabitants, at least fifty permanent bedrooms

for the use of guests.

(6)  A public dining room or rooms operated by the same

management accommodating at least thirty persons at one time and

a kitchen, apart from the dining room or rooms, in which food is

regularly prepared for the public.

(7)  Each room to be considered a bedroom under the

requirements of this section shall have an area of not less than

eighty square feet and an outside window.

(8)  The provisions of this subsection (c) shall not apply to

hotel licenses granted prior to the first day of September, one

thousand nine hundred forty-nine, or that have been granted on

any application made and pending prior to said date, nor to any

renewal or transfer thereof, or hotels under construction or for

which a bona fide contract had been entered into for

construction prior to said date. In such cases, the provisions

of section one of the act, approved the twenty-fourth day of

June, one thousand nine hundred thirty-nine (Pamphlet Laws 806),

shall continue to apply.

(8.1)  The provisions of this subsection (c) shall not apply

to hotel licenses that were granted prior to the first day of

January, [one thousand nine hundred sixty-five] one thousand

nine hundred sixty-six, in municipalities having a population of

less than ten thousand during the two thousand Federal Decennial

Census. Further, the provisions of this subsection (c) shall not

apply to hotel licenses that were granted prior to the first day

of September, one thousand nine hundred forty-nine, and that

lapsed not more than once, provided that the board issued the

hotel a new hotel license prior to the first day of January, one

thousand nine hundred seventy-one. In such cases, the provisions

of section one of the act, approved the twenty-fourth day of

June, one thousand nine hundred thirty-nine (Pamphlet Laws 806),

shall continue to apply.

(9)  Upon application to and subject to inspection by the

board, hotel licensees under clause (8) of this subsection shall

no longer be required to maintain bedrooms for public

accommodation. However, areas required and designated as

bedrooms for public accommodation prior to the effective date of

this clause may not subsequently be used as licensed serving

area. Such area may be used as licensed storage area consistent

with this act and existing regulations.

(9.1)  Upon application to and subject to inspection by the

board, hotel licensees under clause (8.1) of this subsection

shall no longer be required to maintain bedrooms for public

accommodation. However, areas required and designated as

bedrooms for public accommodation prior to the effective date of

this clause may not subsequently be used as licensed serving

areas. Such areas may be used as licensed storage area

consistent with this act and existing regulations.

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Section 4.  Section 471(b) of the act, amended July 6, 2005

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(P.L.135, No.39), is amended to read:

Section 471.  Revocation and Suspension of Licenses; Fines.--

* * *

(b)  Hearing on such citations shall be held in the same

manner as provided herein for hearings on applications for

license. Upon such hearing, if satisfied that any such violation

has occurred or for other sufficient cause, the administrative

law judge shall immediately suspend or revoke the license, or

impose a fine of not less than fifty dollars ($50) nor more than

one thousand dollars ($1,000), or both, notifying the licensee

by registered letter addressed to his licensed premises. If the

licensee has been cited and found to have violated section

493(1) insofar as it relates to sales to minors or sales to a

visibly intoxicated person, section 493(10) insofar as it

relates to lewd, immoral or improper entertainment or section

493(14), (16) or (21), or has been found to be a public nuisance

pursuant to section 611, or if the owner or operator of the

licensed premises or any authorized agent of the owner or

operator has been convicted of any violation of the act of April

14, 1972 (P.L.233, No.64), known as "The Controlled Substance,

Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 5902

(relating to prostitution and related offenses) or 6301

(relating to corruption of minors), at or relating to the

licensed premises, the administrative law judge shall

immediately suspend or revoke the license, or impose a fine of

not less than one thousand dollars ($1,000) nor more than five

thousand dollars ($5,000), or both. If the licensee has been

cited and found to have violated section 493(33), the

administrative law judge shall immediately suspend or revoke the

license and impose a fine of not less than one thousand dollars

($1,000) nor more than five thousand dollars ($5,000). However,

if a licensee has been cited and found to have violated section

493(1) as it relates to sales to minors or sales to a visibly

intoxicated person but at the time of the sale the licensee was

in compliance with the requirements set forth in section 471.1

and the licensee had not sold to minors or visibly intoxicated

persons in the previous four years, then the administrative law

judge shall immediately suspend or revoke the license, or impose

a fine of not less than fifty dollars ($50) nor more than one

thousand dollars ($1,000), or both. The administrative law judge

shall notify the licensee by registered mail, addressed to the

licensed premises, of such suspension, revocation or fine. In

the event the fine is not paid within twenty days of the

adjudication, the administrative law judge shall suspend or

revoke the license, notifying the licensee by registered mail

addressed to the licensed premises. Suspensions and revocations

shall not go into effect until thirty days have elapsed from the

date of the adjudication during which time the licensee may take

an appeal as provided for in this act, except that revocations

mandated in section 481(c) shall go into effect immediately. Any

licensee whose license is revoked shall be ineligible to have a

license under this act until the expiration of three years from

the date such license was revoked. In the event a license is

revoked, no license shall be granted for the premises or

transferred to the premises in which the said license was

conducted for a period of at least one year after the date of

the revocation of the license conducted in the said premises,

except in cases where the licensee or a member of his immediate

family is not the owner of the premises, in which case the board

may, in its discretion, issue or transfer a license within the

said year. In the event the bureau or the person who was fined

or whose license was suspended or revoked shall feel aggrieved

by the adjudication of the administrative law judge, there shall

be a right to appeal to the board. The appeal shall be based

solely on the record before the administrative law judge. The

board shall only reverse the decision of the administrative law

judge if the administrative law judge committed an error of law,

abused its discretion or if its decision is not based on

substantial evidence. In the event the bureau or the person who

was fined or whose license was suspended or revoked shall feel

aggrieved by the decision of the board, there shall be a right

to appeal to the court of common pleas in the same manner as

herein provided for appeals from refusals to grant licenses.

Each of the appeals shall act as a supersedeas unless, upon

sufficient cause shown, the reviewing authority shall determine

otherwise; however, if the licensee has been cited and found to

have violated section 493(1) insofar as it relates to sales to

minors or sales to a visibly intoxicated person, section 493(10)

insofar as it relates to lewd, immoral or improper entertainment

or section 493(14), (16) [or], (21) or (33), or has been found

to be a public nuisance pursuant to section 611, or if the owner

or operator of the licensed premises or any authorized agent of

the owner or operator has been convicted of any violation of

"The Controlled Substance, Drug, Device and Cosmetic Act," or of

18 Pa.C.S. § 5902 or 6301, at or relating to the licensed

premises, or if the license has been revoked under section

481(c), its appeal shall not act as a supersedeas unless the

reviewing authority determines otherwise upon sufficient cause

shown. In any hearing on an application for a supersedeas under

this section, the reviewing authority may consider, in addition

to other relevant evidence, documentary evidence, including

records of the bureau, showing the prior history of citations,

fines, suspensions or revocations against the licensee; and the

reviewing authority may also consider, in addition to other

relevant evidence, evidence of any recurrence of the unlawful

activity occurring between the date of the citation which is the

subject of the appeal and the date of the hearing. If the

reviewing authority is the board, no hearing shall be held on

the application for a supersedeas; however, a decision shall be

made based on the application, answer and documentary evidence

under this subsection. If the application for a supersedeas is

for a license that has been revoked under section 481(c), the

reviewing authority shall grant the supersedeas only if it finds

that the licensee will likely prevail on the merits. No penalty

provided by this section shall be imposed for any violations

provided for in this act unless the bureau notifies the licensee

of its nature within thirty days of the completion of the

investigation.

* * *

Section 3 5.  Section 471.1 of the act is amended by adding a

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subsection to read:

Section 471.1.  Responsible Alcohol Management.--* * *

(g)  Unless successfully completed prior to appointment, a

manager appointed by any restaurant, eating place retail

dispenser, hotel, club or distributor licensee shall be required

to complete the manager/owner training under subsection (c)

within 180 days of approval of appointment by the board.

Section 6.  The act is amended by adding a section to read:

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Section 476.  Licensees Engaged in or Allowing Other

Businesses on Licensed Premises.--(a)  Unless the board approves

a request submitted by a licensee to do so, a licensee is

prohibited from conducting another business on its licensed

premises, or having an interior connection between its licensed

premises and another business operated by it or a third party.

(b)  The board may approve a request for an interior

connection to another business or the operation of another

business on licensed premises under subsection (a) in its

discretion. In determining whether to approve a request under

subsection (a), the board shall consider all relevant evidence

consistent with the provisions of this act. The board shall deny

a request under subsection (a) if the operation of the other

business on the licensed premises would be prohibited by law or

if the proposed licensed premises does not meet all the

requirements of this act and the board's regulations, exclusive

of space devoted to the other business.

(c)  All storage and sales of liquor and malt or brewed

beverages shall occur on the licensed premises unless the

licensee is authorized by another provision of this act to store

or sell alcohol off the licensed premises.

(d)  The board may not approve an inside passage or

communication to or with a residence other than a residence of a

licensee, its corporate officers, shareholders or manager.

(e)  If the board approves an interior connection between a

licensed business and another business, then apart from the

interior connection itself, the businesses must be separated by

a permanent partition at least four feet in height. The

partition may be a wall or any other structure, such as a

railing or shelving, which prevents patrons from traversing

between the businesses except through the approved interior

connections. Each approved interior connection may not be

greater than ten feet in width, absent another law that requires

a greater width.

(f)  Unless otherwise approved by the board, the licensed

business and the other business shall have independent outside

access for the public or independent access to a common area,

such as an interior access in an enclosed mall.

(g)  The board may only approve an interior connection under

subsection (a) to a business that sells liquid fuels, so long as

no liquid fuels-related activity occurs on the licensed

premises.

(h)  Notwithstanding any other provisions of this section, a

licensee may become a lottery sales agent as defined by the act

of August 26, 1971 (P.L.351, No.91), known as the State Lottery

Law, and shall notify the board in writing of its designation. A

licensee that is a lottery sales agent may engage in any

activity on its licensed premises that is authorized by the

State Lottery Law.

(i)  The board may approve an interior connection to another

business regardless of the relative sizes of the licensed

business and the other business.

(j)  The board may not approve the operation of another

business by the licensee or a third party if doing so provides a

third party with a pecuniary interest in the licensed business

or if the other business generates more income than the licensed

business.

(k)  For purposes of this section, "other business" or

"another business" is defined as business activity which is not

directly related to the licensed business. The term includes the

selling of foods in bulk for off-premises consumption, the

selling of unprepared foods and the selling of nonfood items

such as sold by grocery stores, convenience stores, department

stores and supermarkets. The term does not include businesses

and activity intrinsically related to the licensed business,

such as the sale of prepared foods "to go," by a restaurant or

eating place license, or the activities of a pro shop for a

licensed business located on a golf course. Activity that would

otherwise constitute "other business" or "another business" but

which generates less than one thousand dollars ($1,000) in gross

income a year shall not require board approval.

Section 7.  Section 493 of the act is amended by adding a

clause to read:

Section 493.  Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(33)  Firearm, as defined in 18 Pa.C.S. § 6102 (relating to

definitions). The following apply:

(i)  For a licensee to furnish, sell or offer to sell,

purchase or receive a firearm, or to aid and abet in the sale or

purchase of a firearm, on the licensed premises unless the

actions of the licensee are authorized by law.

(ii)  For any servant, agent or employe of the licensee to

furnish, sell or offer to sell, purchase or receive a firearm,

or to aid and abet in the sale or purchase of any firearm, on

the licensed premises unless the actions of the person are

authorized by law. The licensee shall only be cited for a

violation of this subclause if the licensee knew or should have

known of the activity and failed to take substantial affirmative

steps to prevent the activity on its premises.

Section 8.  Section 505.2(a)(4) and (6.1) of the act, amended

December 8, 2004 (P.L.1810, No.239) and July 16, 2007 (P.L.107,

No.34), is amended to read:

Section 505.2.  Limited Wineries.--(a)  In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

* * *

(4)  At the discretion of the board, obtain a special permit

to participate in alcoholic cider, wine and food expositions off

the licensed premises. A special permit shall be issued upon

proper application and payment of a fee of thirty dollars ($30)

per day for each day of permitted use, not to exceed [five (5)] 

thirty (30) consecutive days. The total number of days for all

the special permits may not exceed [forty (40)] one hundred

(100) days in any calendar year. A special permit shall entitle

the holder to engage in the sale by the glass, by the bottle or

in case lots of alcoholic cider or wine produced by the

permittee under the authority of a limited winery license.

Holders of special permits may provide tasting samples of wines

in individual portions not to exceed one fluid ounce. Samples at

alcoholic cider, wine and food expositions may be sold or

offered free of charge. Except as provided herein, limited

wineries utilizing special permits shall be governed by all

applicable provisions of this act as well as by all applicable

regulations or conditions adopted by the board.

For the purposes of this clause, "alcoholic cider, wine and

food expositions" are defined as affairs held indoors or

outdoors with the intent of promoting Pennsylvania products by

educating those in attendance of the availability, nature and

quality of Pennsylvania-produced alcoholic ciders and wines in

conjunction with suitable food displays, demonstrations and

sales. Alcoholic cider, wine and food expositions may also

include activities other than alcoholic cider, wine and food

displays, including arts and crafts, musical activities,

cultural exhibits, agricultural exhibits and farmers markets.

* * *

(6.1)  Sell food for consumption on or off the licensed

premises and at the limited winery's additional board-approved

locations and sell by the glass, at the licensed premises and at

the limited winery's additional board-approved locations, only

wine and alcoholic ciders that may otherwise be sold by the

bottle.

* * *

Section 9.  Nothing in this act shall be construed as

invalidating the license of an entity already licensed by the

Liquor Control Board and which already has received permission

to either conduct another business on the premises or have an

interior connection to another business, so long as the

arrangement is in conformity with the act.

Section 4 10.  The addition of section 471.1(g) of the act

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shall apply to the appointment of managers made pursuant to

applications for appointment, license transfer and applications

for new licenses filed with the Pennsylvania Liquor Control

Board after the effective date of this section.

Section 5 11.  This act shall take effect in 60 days.

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