THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HARHAI, BARRAR, BRENNAN, BUXTON, CALTAGIRONE, CLYMER, D. COSTA, DALLY, GROVE, GRUCELA, HALUSKA, HANNA, HARKINS, KOTIK, KULA, MARSHALL, MATZIE, MELIO, PALLONE, PASHINSKI, READSHAW, SEIP, K. SMITH, SOLOBAY, STABACK, SWANGER AND YUDICHAK, JULY 7, 2009

REFERRED TO COMMITTEE ON LIQUOR CONTROL, JULY 7, 2009  

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,"

further providing for issuance, transfer or extension of

hotel, restaurant and club liquor licenses, for sale of malt

or brewed beverages by liquor licensees, for malt and brewed

beverages manufacturers', distributors' and importing

distributors' licenses and for malt and brewed beverages

retail licenses.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 404 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 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[.], it being the

legislative intent of this provision that no alcoholic beverages

may be sold from the same location as liquid fuels or oils. 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.

Section 2.  Section 407 of the act is amended by adding a

subsection to read:

Section 407.  Sale of Malt or Brewed Beverages by Liquor

Licensees.--* * *

(c)  A restaurant or hotel licensee who is otherwise

permitted to sell malt or brewed beverages for consumption off

the licensed premises shall not do so if its licensed premises

has an inside passage or connection to or with another business

or is operated in conjunction with another business occupying

one thousand square feet or more. The existing licensed premises

of a restaurant or hotel licensee that has an inside passage or

connection to or with another business or is operated in

conjunction with another business occupying one thousand square

feet or more as of the effective date of this subsection shall

not be subject to this restriction, but the board shall refuse

any application for a new restaurant or hotel license or the

transfer of any restaurant or hotel license to a new location

with an inside passage or connection to or with another business

or that is operated in conjunction with another business

occupying one thousand square feet or more.

Section 3.  Section 431(b) of the act, amended December 8,

2004 (P.L.1810, No.239), is amended to read:

Section 431.  Malt and Brewed Beverages Manufacturers',

Distributors' and Importing Distributors' Licenses.--* * *

(b)  The board shall issue to any reputable person who

applies therefor, and pays the license fee hereinafter

prescribed, a distributor's or importing distributor's license

for the place which such person desires to maintain for the sale

of malt or brewed beverages, not for consumption on the premises

where sold, and in quantities of not less than a case or

original containers containing one hundred twenty-eight ounces

or more which may be sold separately as prepared for the market

by the manufacturer at the place of manufacture. 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: And provided further, That, in the case of any new

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

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

or transfer 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

or transfer 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 shall refuse any application

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

location if, in the board's opinion, such new license or

transfer 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. The

board shall refuse any application for a new license or the

transfer of any license to a location where the sale of liquid

fuels or oil is conducted[.], it being the legislative intent of

this provision that no alcoholic beverages may be sold from the

same location as liquid fuels or oils. 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 shall require notice to

be posted on the property or premises upon which the licensee or

proposed licensee will engage in sales of malt or brewed

beverages. This notice shall be similar to the notice required

of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize

the holder thereof to sell or deliver malt or brewed beverages

in quantities above specified anywhere within the Commonwealth

of Pennsylvania, which, in the case of distributors, have been

purchased only from persons licensed under this act as

manufacturers or importing distributors, and in the case of

importing distributors, have been purchased from manufacturers

or persons outside this Commonwealth engaged in the legal sale

of malt or brewed beverages or from manufacturers or importing

distributors licensed under this article. In the case of an

importing distributor, the holder of such a license shall be

authorized to store and repackage malt or brewed beverages owned

by a manufacturer at a segregated portion of a warehouse or

other storage facility authorized by section 441(d) and operated

by the importing distributor within its appointed territory and

deliver such beverages to another importing distributor who has

been granted distribution rights by the manufacturer as provided

herein. The importing distributor shall be permitted to receive

a fee from the manufacturer for any related storage, repackaging

or delivery services. In the case of a bailee for hire hired by

a manufacturer, the holder of such a permit shall be authorized:

to receive, store and repackage malt or brewed beverages  

produced by that manufacturer for sale by that manufacturer to

importing distributors to whom that manufacturer has given

distribution rights pursuant to this subsection or to purchasers

outside this Commonwealth for delivery outside this

Commonwealth; or to ship to that manufacturer's storage

facilities outside this Commonwealth. The bailee for hire shall

be permitted to receive a fee from the manufacturer for any

related storage, repackaging or delivery services. The bailee

for hire shall, as required in Article V of this act, keep

complete and accurate records of all transactions, inventory,

receipts and shipments and make all records and the licensed

areas available for inspection by the board and for the

Pennsylvania State Police, Bureau of Liquor Control Enforcement,

during normal business hours.

Each out of State manufacturer of malt or brewed beverages

whose products are sold and delivered in this Commonwealth shall

give distributing rights for such products in designated

geographical areas to specific importing distributors, and such

importing distributor shall not sell or deliver malt or brewed

beverages manufactured by the out of State manufacturer to any

person issued a license under the provisions of this act whose

licensed premises are not located within the geographical area

for which he has been given distributing rights by such

manufacturer. Should a licensee accept the delivery of such malt

or brewed beverages in violation of this section, said licensee

shall be subject to a suspension of his license for at least

thirty days: Provided, That the importing distributor holding

such distributing rights for such product shall not sell or

deliver the same to another importing distributor without first

having entered into a written agreement with the said secondary

importing distributor setting forth the terms and conditions

under which such products are to be resold within the territory

granted to the primary importing distributor by the

manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverages

licensed under this article names or constitutes a distributor

or importing distributor as the primary or original supplier of

his product, he shall also designate the specific geographical

area for which the said distributor or importing distributor is

given distributing rights, and such distributor or importing

distributor shall not sell or deliver the products of such

manufacturer to any person issued a license under the provisions

of this act whose licensed premises are not located within the

geographical area for which distributing rights have been given

to the distributor and importing distributor by the said

manufacturer: Provided, That the importing distributor holding

such distributing rights for such product shall not sell or

deliver the same to another importing distributor without first

having entered into a written agreement with the said secondary

importing distributor setting forth the terms and conditions

under which such products are to be resold within the territory

granted to the primary importing distributor by the

manufacturer. Nothing herein contained shall be construed to

prevent any manufacturer from authorizing the importing

distributor holding the distributing rights for a designated

geographical area from selling the products of such manufacturer

to another importing distributor also holding distributing

rights from the same manufacturer for another geographical area,

providing such authority be contained in writing and a copy

thereof be given to each of the importing distributors so

affected.

* * *

Section 4.  Section 432(d) of the act, amended January 6,

2006 (P.L.1, No.1), is amended and the section is amended by

adding a subsection to read:

Section 432.  Malt and Brewed Beverages Retail Licenses.--* *

*

(d)  The board shall, in its discretion, grant or refuse any

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

the extension of an existing license to cover an additional area

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. 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

to be licensed. 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 shall refuse any

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

location where the sale of liquid fuels or oil is conducted or

the extension of an existing license to cover an additional

area[:], it being the legislative intent of this provision that

no alcoholic beverages may be sold from the same location as

liquid fuels or oils: 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 may, in its discretion, refuse an application

for an economic development license under section 461(b.1) or an

application for an intermunicipal transfer or 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 approval for

issuance of a license for economic development or an

intermunicipal transfer of a license into its municipality, and

such 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.

(d.1)  An eating place retail dispenser licensee who is

otherwise permitted to sell malt or brewed beverages for

consumption off the licensed premises shall not do so if its

licensed premises has an inside passage or connection to or with

another business or is operated in conjunction with another

business occupying one thousand square feet or more. The

existing licensed premises of an eating place retail dispenser

licensee that has an inside passage or connection to or with

another business or is operated in conjunction with another

business occupying one thousand square feet or more as of the

effective date of this subsection shall not be subject to this

restriction, but the board shall refuse any application for a

new eating place retail dispenser license or the transfer of any

eating place retail dispenser license to a new location with an

inside passage or connection to or with another business or that

is operated in conjunction with another business occupying one

thousand square feet or more.

* * *

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