PRINTER'S NO.  1341

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1231

Session of

2011

  

  

INTRODUCED BY WATERS AND M. O'BRIEN, MARCH 29, 2011

  

  

REFERRED TO COMMITTEE ON LIQUOR CONTROL, MARCH 29, 2011  

  

  

  

AN ACT

  

1

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

2

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

3

malt and brewed beverages; amending, revising, consolidating

4

and changing the laws relating thereto; regulating and

5

restricting the manufacture, purchase, sale, possession,

6

consumption, importation, transportation, furnishing, holding

7

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

8

liquors, alcohol and malt and brewed beverages and the

9

persons engaged or employed therein; defining the powers and

10

duties of the Pennsylvania Liquor Control Board; providing

11

for the establishment and operation of State liquor stores,

12

for the payment of certain license fees to the respective

13

municipalities and townships, for the abatement of certain

14

nuisances and, in certain cases, for search and seizure

15

without warrant; prescribing penalties and forfeitures;

16

providing for local option, and repealing existing laws,"

17

further providing for issuance, transfer or extension of

18

hotel, restaurant and club liquor licenses, for the

19

definition of "public venue," for public venue licenses, for

20

court jurisdiction on appeals from decision of the board, for

21

hearings before the board and administrative law judges, for

22

revocation of licenses, for increased fines and for renewal

23

of licenses; and providing for licensees engaged in or

24

allowing other businesses on licensed premises.

25

The General Assembly of the Commonwealth of Pennsylvania

26

hereby enacts as follows:

27

Section 1.  The definition of "public venue" in section 102

28

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

29

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

 


1

and amended June 25, 2010 (P.L.217, No.35), is amended to read:

2

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

3

unless the context clearly indicates otherwise, shall have the

4

meanings ascribed to them in this section:

5

* * *

6

"Public venue" shall mean a stadium, arena, convention

7

center, museum, zoo, amphitheater or similar structure. If the

8

public venue is a cruise terminal owned or leased by a port

9

authority created under the act of June 12, 1931 (P.L.575,

10

No.200), entitled "An act providing for joint action by

11

Pennsylvania and New Jersey in the development of the ports on

12

the lower Delaware River, and the improvement of the facilities

13

for transportation across the river; authorizing the Governor,

14

for these purposes, to enter into an agreement with New Jersey;

15

creating The Delaware River Joint Commission and specifying the

16

powers and duties thereof, including the power to finance

17

projects by the issuance of revenue bonds; transferring to the

18

new commission all the powers of the Delaware River Bridge Joint

19

Commission; and making an appropriation," it shall have no

20

permanent seating requirement. If the public venue is an open-

21

air amphitheater owned by a port authority created under the act

22

of December 6, 1972 (P.L.1392, No.298), known as the "Third

23

Class City Port Authority Act," it shall have no permanent

24

seating requirement. If the public venue is owned by a political

25

subdivision, a municipal authority, the Commonwealth, an

26

authority created under the act of July 29, 1953 (P.L.1034,

27

No.270), known as the "Public Auditorium Authorities Law," an

28

authority created under Article XXV-A of the act of July 28,

29

1953 (P.L.723, No.230), known as the "Second Class County Code,"

30

an art museum established under the authority of the act of

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1

April 6, 1791 (3 Sm.L.20, No.1536), entitled "An act to confer

2

on certain associations of the citizens of this commonwealth the

3

powers and immunities of corporations, or bodies politic in

4

law," or an authority created under Article XXIII (n) or (o) of

5

the act of August 9, 1955 (P.L.323, No.130), known as "The

6

County Code," it shall have permanent seating for at least one

7

thousand (1,000) people; otherwise, it shall have permanent

8

seating for at least two thousand (2,000) people. The term shall

9

also mean any regional history center, multipurpose cultural and

10

science facility, museum or convention or trade show center,

11

regardless of owner and seating capacity, that has a floor area

12

of at least sixty thousand (60,000) square feet in one building.

13

The term shall also mean a convention or conference center owned

14

by a city of the third class or a university which is a member

15

of the Pennsylvania State System of Higher Education which is

16

operated by a university foundation or alumni association,

17

regardless of seating capacity, that has a floor area of at

18

least fifteen thousand (15,000) square feet in one building. The

19

term shall also mean a visitor center, regardless of floor area

20

or seating capacity, that was established under the authority of

21

the Gateway Visitor Center Authorization Act of 1999 (Public Law

22

106-131, 113 Stat. 1678, 16 U.S.C. § 407m)). If the public venue

23

is a zoo, is an accredited member of the Association of Zoos and

24

Aquariums, occupies at least thirty (30) acres, has been in

25

existence at least one hundred (100) years and is located in a

26

city of the first or second class, then it shall have no square

27

footage or permanent seating requirements.

28

* * *

29

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

30

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

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1

Section 404.  Issuance, Transfer or Extension of Hotel,

2

Restaurant and Club Liquor Licenses.--(a)  Upon receipt of the

3

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

4

truth of the statements in the application that the applicant is

5

the only person in any manner pecuniarily interested in the

6

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

7

be in any manner pecuniarily interested therein during the

8

continuance of the license, except as hereinafter permitted, and

9

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

10

applied for meet all the requirements of this act and the

11

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

12

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

13

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

14

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

15

or restaurant, grant and issue to the applicant a liquor

16

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

17

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

18

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

19

the extension of an existing license to cover an additional area

20

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

21

license, transfer or extension if such place proposed to be

22

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

23

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

24

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

25

is within two hundred feet of any other premises which is

26

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

27

authority to refuse to grant a license because of its proximity

28

to a church, hospital, charitable institution, public playground

29

or other licensed premises shall not be applicable to license

30

applications submitted for public venues or performing arts

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1

facilities: And provided further, That the board shall refuse

2

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

3

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

4

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

5

license, transfer or extension would be detrimental to the

6

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

7

neighborhood within a radius of five hundred feet of the place

8

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

9

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

10

to any corporation, partnership or association if such person,

11

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

12

partner of such partnership or association shall have been

13

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

14

years immediately preceding the date of application for the said

15

license. The board shall refuse any application for a new

16

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

17

extension of any license to cover an additional area where the

18

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

19

into an agreement with the applicant concerning additional

20

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

21

applicant enter into such an agreement, such agreement shall be

22

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

23

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

24

citation under section 471 and for the nonrenewal of the license

25

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

26

applicant concerning additional restrictions, those restrictions

27

shall be binding on subsequent holders of the license until the

28

license is transferred to a new location or until the board

29

enters into a subsequent agreement removing those restrictions.

30

If the application in question involves a location previously

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1

licensed by the board, then any restrictions imposed by the

2

board on the previous license at that location shall be binding

3

on the applicant unless the board enters into a new agreement

4

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

5

refuse an application for an economic development license under

6

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

7

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

8

governing body of the receiving municipality. The receiving

9

municipality of an intermunicipal transfer or an economic

10

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

11

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

12

receiving municipality shall have standing in a hearing to

13

present testimony in support of or against the issuance or

14

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

15

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

16

for a period of six months following said opening.

17

(b)  If a person is seeking a transfer of a hotel, restaurant

18

or eating place license in a city of the first class, proof or

19

certification of zoning compliance for the hotel, restaurant or

20

eating place for which the license transfer is being applied

21

must be submitted with the application.

22

Section 3.  Section 412(b) and (f)(1) of the act, amended

23

February 21, 2002 (P.L.103, No.10), are amended to read:

24

Section 412.  Public Venue License.--* * *

25

(b)  An application for a restaurant liquor license under

26

this section may be made by the owner of the public venue, the

27

operator of the public venue or by a concessionaire designated

28

by the governing body of either the owner of the public venue or

29

the operator. The application and issuance of the license is

30

subject to sections 403 and 404 unless otherwise stated, except

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1

that private banquets and other events at zoos may be held at

2

any site within the zoo property. The licensing period shall be

3

as set forth by the board under section 402. The application,

4

renewal and filing fees shall be as prescribed in section 614-

5

A(25) of the act of April 9, 1929 (P.L.177, No.175), known as

6

"The Administrative Code of 1929."

7

* * *

8

(f)  Licenses issued under this section are to be considered

9

restaurant liquor licenses. However, the following additional

10

restrictions and privileges apply:

11

(1)  Sales may only be made one hour before, during and one

12

hour after any athletic performance, performing arts event,

13

trade show, convention, banquet or any other performance at the

14

facility; however, sales may not be made from two o'clock

15

antemeridian to seven o'clock antemeridian. In addition, sales

16

may not occur prior to eleven o'clock antemeridian on Sundays or

17

seven o'clock antemeridian on Mondays. Notwithstanding this

18

section, facilities that had been licensed under former sections

19

408.9 and 408.14 and zoos may sell liquor and/or malt or brewed

20

beverages anytime except from two o'clock antemeridian to seven

21

o'clock antemeridian or prior to eleven o'clock antemeridian on

22

Sundays or seven o'clock antemeridian on Mondays, regardless of

23

whether there is a performance at the facility.

24

* * *

25

Section 4.  Section 464 of the act, amended December 9, 2002

26

(P.L.1653, No.212), is amended to read:

27

Section 464.  Hearings Upon Refusal of Licenses, Renewals or

28

Transfers; Appeals.--The board may of its own motion, and shall

29

upon the written request of any applicant for club, hotel or

30

restaurant liquor license, or any applicant for any malt or

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1

brewed beverage license other than a public service license, or

2

for renewal or transfer thereof, or for the renewal of an

3

amusement permit, whose application for such license, renewal or

4

transfer, or the renewal of an amusement permit, has been

5

refused, fix a time and place for hearing of such application

6

for license or for renewal or transfer thereof, or the renewal

7

of an amusement permit, notice of which hearing shall be mailed

8

to the applicant at the address given in his application. Such

9

hearing shall be before a hearing examiner designated by the

10

board. At such hearing, the board shall present its reasons for

11

its refusal or withholding of license, renewal or transfer

12

thereof, or its refusal for renewal of an amusement permit. The

13

applicant may appear in person or by counsel, may cross-examine

14

the witnesses for the board and may present evidence which shall

15

likewise be subject to cross-examination by the board. Such

16

hearing shall be stenographically recorded. The hearing examiner

17

shall thereafter report, with the examiner's recommendation, to

18

the board in each case. The board shall thereupon grant or

19

refuse the license, renewal or transfer thereof or the renewal

20

of an amusement permit. In considering the renewal of a license

21

or amusement permit, the board shall not refuse any such renewal

22

on the basis of the propriety of the original issuance or any

23

prior renewal of such license or amusement permit. If the board

24

shall refuse such license, renewal or transfer or the renewal of

25

an amusement permit, following such hearing, notice in writing

26

of such refusal shall be mailed to the applicant at the address

27

given in his application. In all such cases, the board shall

28

file of record at least a brief statement in the form of an

29

opinion of the reasons for the ruling or order and furnish a

30

copy thereof to the applicant. Any applicant who has appeared at

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1

any hearing, as above provided, who is aggrieved by the refusal

2

of the board to issue any such license or to renew or transfer

3

any such license or to issue or renew any amusement permit may

4

appeal, or any church, hospital, charitable institution, school

5

or public playground located within three hundred feet of the

6

premises applied for, aggrieved by the action of the board in

7

granting the issuance of any such license or the transfer of any

8

such license, may take an appeal limited to the question of such

9

grievance, within twenty days from date of refusal or grant, to

10

the court of common pleas of the county in which the premises or

11

permit applied for is located. If the application is for an

12

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

13

intermunicipal transfer of a license, the governing body of the

14

municipality receiving the new license or the transferred

15

license may file an appeal of the board decision granting the

16

license, within twenty days of the date of the board's decision,

17

to the court of common pleas of the county in which the proposed

18

premises is located. Such appeal shall be upon petition of the

19

aggrieved party, who shall serve a copy thereof upon the board,

20

whereupon a hearing shall be held upon the petition by the court

21

upon ten days' notice to the board. The said appeal shall,

22

except in cases involving the renewal of a license, act as a

23

supersedeas unless upon sufficient cause shown the court shall

24

determine otherwise. The court shall [hear the application de

25

novo on questions of fact, administrative discretion and such

26

other matters as are involved, at such time as it shall fix, of

27

which notice shall be given to the board. The court shall either

28

sustain or over-rule the action of the board and either order or

29

deny the issuance of a new license or the renewal or transfer of

30

the license or the renewal of an amusement permit to the

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1

applicant] affirm the board unless the board's decision is an

2

error of law, an abuse of discretion or unless the board's

3

decision is not supported by substantial evidence.

4

Section 5.  Section 470(a) and (b) of the act, amended

5

December 9, 2002 (P.L.1653, No.212) and December 8, 2004

6

(P.L.1810, No.239), are amended and the section is amended by

7

adding subsections to read:

8

Section 470.  Renewal of Licenses; Temporary Provisions for

9

Licensees in Armed Service.--(a)  All applications for renewal

10

of licenses under the provisions of this article shall be filed

11

with tax clearance from the Department of Revenue and the

12

Department of Labor and Industry and requisite license and

13

filing fees at least sixty days before the expiration date of

14

same: Provided, however, That the board, in its discretion, may

15

accept nunc pro tunc a renewal application filed less than sixty

16

days before the expiration date of the license with the required

17

fees, upon reasonable cause shown and the payment of an

18

additional filing fee of one hundred dollars ($100.00) for late

19

filing: And provided further, That except where the failure to

20

file a renewal application on or before the expiration date has

21

created a license quota vacancy after said expiration date which

22

has been filled by the issuance of a new license, after such

23

expiration date, but before the board has received a renewal

24

application nunc pro tunc within the time prescribed herein the

25

board, in its discretion, may, after hearing, accept a renewal

26

application filed within two years after the expiration date of

27

the license with the required fees upon the payment of an

28

additional filing fee of two hundred fifty dollars ($250.00) for

29

late filing. Where any such renewal application is filed less

30

than sixty days before the expiration date, or subsequent to the

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1

expiration date, no license shall issue upon the filing of the

2

renewal application until the matter is finally determined by

3

the board and if an appeal is taken from the board's action the

4

courts shall not order the issuance of the renewal license until

5

final determination of the matter by the courts. The board may

6

enter into an agreement with the applicant concerning additional

7

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

8

applicant enter into such an agreement, such agreement shall be

9

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

10

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

11

citation under section 471 and for the nonrenewal of the license

12

under this section. A renewal application will not be considered

13

filed unless accompanied by the requisite filing and license

14

fees and any additional filing fee required by this section.

15

Unless the board shall have given ten days' previous notice to

16

the applicant of objections to the renewal of his license, based

17

upon violation by the licensee or his servants, agents or

18

employes of any of the laws of the Commonwealth or regulations

19

of the board relating to the manufacture, transportation, use,

20

storage, importation, possession or sale of liquors, alcohol or

21

malt or brewed beverages, or the conduct of a licensed

22

establishment, or unless the applicant or its shareholders,

23

directors, officers, association members, servants, agents or

24

employes has by his own act become a person of ill repute, or

25

unless the premises do not meet the requirements of this act or

26

the regulations of the board, the license of a licensee shall be

27

renewed.

28

* * *

29

(b) In cases where a licensee or its servants, agents or

30

employes are arrested or charged with violating any of the laws

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1

of this Commonwealth or if a licensee has one or more

2

unadjudicated citations pending against the licensee at the time

3

a renewal application for the license is pending before the

4

board, the board may, in its discretion, renew the license;

5

however, the renewed license may be subsequently revoked by the

6

board if and when the licensee or its servants, agents or

7

employes are convicted of the pending criminal charges or when

8

the citation issued against the license is adjudicated by the

9

Office of Administrative Law Judge.

10

In the event the renewal license is revoked by the board,

11

neither the license fee paid for the license nor any part

12

thereof shall be returned to the licensee. A licensee whose

13

license is revoked shall be ineligible to have a license under

14

this act until the expiration of three years from the date the

15

license was revoked. In the event a license is revoked, no

16

license may be granted for the premises or transferred to the

17

premises in which the said license was conducted for a period of

18

at least one year after the date of the revocation of the

19

license conducted in the premises, except in cases where the

20

licensee or a member of the licensee's immediate family is not

21

the owner of the premises, in which case the board may, in its

22

discretion, issue or transfer a license within the year.

23

* * *

24

(d)  If the renewal of the license is objected to because of

25

the reputation of the applicant or its shareholders, directors,

26

officers, association members, servants, agents or employes or

27

under subsection (a.1), the Director of the Bureau of Licensing

28

may, in the director's discretion, grant the applicant temporary

29

operating authority under whatever terms the director deems

30

appropriate. The operating authority shall not exceed 90

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1

calendar days.

2

(e)  If the renewal of the license is objected to because of

3

the reputation of the applicant or its shareholders, directors,

4

officers, association members, servants, agents or employes or

5

under subsection (a.1), the board shall render a decision on the

6

application within 90 calendar days.

7

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

8

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

9

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

10

* * *

11

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

12

manner as provided herein for hearings on applications for

13

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

14

has occurred or for other sufficient cause, the administrative

15

law judge shall immediately suspend or revoke the license, or

16

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

17

[one thousand dollars ($1,000)] two thousand dollars ($2,000),

18

or both, notifying the licensee by registered letter addressed

19

to his licensed premises. If the licensee has been cited and

20

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

21

sales to minors or sales to a visibly intoxicated person,

22

section 493(10) insofar as it relates to lewd, immoral or

23

improper entertainment or section 493(14), (16) or (21), or has

24

been found to be a public nuisance pursuant to section 611, or

25

if the owner or operator of the licensed premises or any

26

authorized agent of the owner or operator has been convicted of

27

any violation of the act of April 14, 1972 (P.L.233, No.64),

28

known as "The Controlled Substance, Drug, Device and Cosmetic

29

Act," or of 18 Pa.C.S. § 5902 (relating to prostitution and

30

related offenses) or 6301 (relating to corruption of minors), at

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1

or relating to the licensed premises, the administrative law

2

judge shall immediately suspend or revoke the license, or impose

3

a fine of not less than [one thousand dollars ($1,000)] two

4

thousand dollars ($2,000) nor more than [five thousand dollars

5

($5,000)] ten thousand dollars ($10,000), or both. If the

6

licensee has been cited for and found to be knowingly aware of

7

an illegal firearms transaction which occurs on the licensed

8

premises, the administrative law judge shall immediately revoke

9

the license and impose a fine of not less than two thousand

10

dollars ($2,000) nor more than ten thousand dollars ($10,000). 

11

However, if a licensee has been cited and found to have violated

12

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

13

visibly intoxicated person but at the time of the sale the

14

licensee was in compliance with the requirements set forth in

15

section 471.1 and the licensee had not sold to minors or visibly

16

intoxicated persons in the previous four years, then the

17

administrative law judge shall immediately suspend or revoke the

18

license, or impose a fine of not less than fifty dollars ($50)

19

nor more than [one thousand dollars ($1,000)] two thousand

20

dollars ($2,000), or both. The administrative law judge shall

21

notify the licensee by registered mail, addressed to the

22

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

23

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

24

adjudication, the administrative law judge shall suspend or

25

revoke the license, notifying the licensee by registered mail

26

addressed to the licensed premises. Suspensions and revocations

27

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

28

date of the adjudication during which time the licensee may take

29

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

30

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

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1

licensee whose license is revoked shall be ineligible to have a

2

license under this act until the expiration of three years from

3

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

4

revoked, no license shall be granted for the premises or

5

transferred to the premises in which the said license was

6

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

7

the revocation of the license conducted in the said premises,

8

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

9

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

10

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

11

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

12

or whose license was suspended or revoked shall feel aggrieved

13

by the adjudication of the administrative law judge, there shall

14

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

15

solely on the record before the administrative law judge. The

16

board shall only reverse the decision of the administrative law

17

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

18

abused its discretion or if its decision is not based on

19

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

20

was fined or whose license was suspended or revoked shall feel

21

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

22

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

23

herein provided for appeals from refusals to grant licenses.] 

24

which shall affirm the board unless the board's decision is an

25

error of law, is an abuse of discretion or unless the board's

26

decision is not supported by substantial evidence. Each of the

27

appeals shall act as a supersedeas unless, upon sufficient cause

28

shown, the reviewing authority shall determine otherwise;

29

however, if the licensee has been cited and found to have

30

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

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1

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

2

insofar as it relates to lewd, immoral or improper entertainment

3

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

4

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

5

operator of the licensed premises or any authorized agent of the

6

owner or operator has been convicted of any violation of "The

7

Controlled Substance, Drug, Device and Cosmetic Act," or of 18

8

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

9

or if the license has been revoked under section 481(c), or if

10

the license is revoked because of an illegal firearm

11

transaction, its appeal shall not act as a supersedeas unless

12

the reviewing authority determines otherwise upon sufficient

13

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

14

under this section, the reviewing authority may consider, in

15

addition to other relevant evidence, documentary evidence,

16

including records of the bureau, showing the prior history of

17

citations, fines, suspensions or revocations against the

18

licensee; and the reviewing authority may also consider, in

19

addition to other relevant evidence, evidence of any recurrence

20

of the unlawful activity occurring between the date of the

21

citation which is the subject of the appeal and the date of the

22

hearing. If the reviewing authority is the board, no hearing

23

shall be held on the application for a supersedeas; however, a

24

decision shall be made based on the application, answer and

25

documentary evidence under this subsection. If the application

26

for a supersedeas is for a license that has been revoked under

27

section 481(c), the reviewing authority shall grant the

28

supersedeas only if it finds that the licensee will likely

29

prevail on the merits. No penalty provided by this section shall

30

be imposed for any violations provided for in this act unless

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1

the bureau notifies the licensee of its nature within thirty

2

days of the completion of the investigation.

3

* * *

4

Section 7.  The act is amended by adding a section to read:

5

Section 476.  Licensees Engaged in or Allowing Other

6

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

7

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

8

prohibited from conducting another business on its licensed

9

premises, or having an interior connection between its licensed

10

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

11

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

12

connection to another business or the operation of another

13

business on licensed premises under subsection (a) in its

14

discretion. In determining whether to approve a request under

15

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

16

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

17

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

18

business on the licensed premises would be prohibited by law or

19

if the proposed licensed premises does not meet all the

20

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

21

of space devoted to the other business.

22

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

23

beverages shall occur on the licensed premises unless the

24

licensee is authorized by another provision of this act to sell

25

alcohol off the licensed premises.

26

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

27

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

28

licensee, its corporate officers, shareholders or manager.

29

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

30

licensed business and another business, then apart from the

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1

interior connection itself, the businesses must be separated by

2

a permanent partition at least four feet in height. The

3

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

4

railing or shelving, which prevents patrons from traversing

5

between the businesses except through the approved interior

6

connections. Each approved interior connection may not be

7

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

8

a greater width.

9

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

10

business and the other business shall have independent outside

11

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

12

such as an interior access in an enclosed mall.

13

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

14

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

15

no liquid-fuels-related activity occurs on the licensed

16

premises.

17

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

18

licensee that wishes to become a lottery sales agent may do so

19

by simply notifying the board in writing of its designation. A

20

lottery sales agent may engage in any activity on its licensed

21

premises that is authorized by that designation.

22

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

23

business regardless of the relative sizes of the licensed

24

business and the other business.

25

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

26

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

27

third party with a pecuniary interest in the licensed business

28

or if the other business generates more income than the licensed

29

business.

30

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

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1

business regardless of the relative sizes of the licensed

2

business and the other business.

3

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

4

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

5

directly related to the licensed business. The term includes the

6

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

7

selling of unprepared foods and the selling of nonfood items

8

such as sold by grocery stores, convenience stores, department

9

stores and supermarkets. The term does not include businesses

10

and activity intrinsically related to the licensed business,

11

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

12

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

13

licensed business located on a golf course. Activity that would

14

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

15

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

16

income a year shall not require board approval.

17

Section 8.  Nothing in this act shall be construed as

18

invalidating the license of an entity already licensed by the

19

Liquor Control Board and which already has received permission

20

to either conduct another business on the premises or have an

21

interior connection to another business, so long as the

22

arrangement is in conformity with the act.

23

Section 9.  This act shall take effect in 60 days.

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