Regular Session 2015-2016 House Bill 1345 P.N. 1928

PRINTER'S NO. 1928

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1345

Session of

2015

INTRODUCED BY PAYNE, D. COSTA, DeLUCA, DIAMOND, FLYNN, GIBBONS,

KORTZ, McNEILL, MILLARD, O'NEILL, SANKEY AND THOMAS,

JUNE 25, 2015

REFERRED TO COMMITTEE ON LIQUOR CONTROL, JUNE 25, 2015

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," in

licenses and regulations, liquor, alcohol and malt and brewed

beverages, further providing for license districts, license

period and hearings, for applications for hotel, restaurant

and club liquor licenses, for issuance, transfer or extension

of hotel, restaurant and club liquor licenses and for license

fees, for sales by liquor licensees and restrictions;

providing for casino liquor license; further providing for

limiting number of retail licenses to be issued in each

county, for revocation and suspension of licenses and fines

and for unlawful acts relative to liquor, malt and brewed

beverages and licensees.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 402(c) 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), amended December 20, 2000

(P.L.992, No.141), is amended to read:

Section 402. License Districts; License Period; Hearings.--*

* *

standing to residents residing within five hundred (500) feet of

a public venue, slot machine facility or performing arts

facility.

Section 2. Section 403(g) of the act, amended December 9,

2002 (P.L.1653, No.272), is amended to read:

Section 403. Applications for Hotel, Restaurant and Club

Liquor Licenses.--* * *

(g) Every applicant for a new license or for the transfer of

an existing license shall post, for a period of at least thirty

days beginning with the day the application is filed with the

board, in a conspicuous place on the outside of the premises or

at the proposed new location for which the license is applied, a

notice of such application. The notice shall indicate whether

the applicant is applying for the amusement permit required by

section 493(10). The notice shall be in such form, be of such

size, and contain such provisions as the board may require by

its regulations. Proof of the posting of such notice shall be

filed with the board. The posting requirement imposed by this

subsection shall not apply to license applications submitted for

public venues or slot machine facilities.

* * *

Section 3. 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,

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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, slot machine

facilities or performing arts facilities: And provided further,

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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

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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 4. Section 405 of the act is amended by adding a

subsection to read:

Section 405. License Fees.--* * *

(f) Every application for a casino license under section 415

shall be accompanied by an applicant's fee of one million

dollars ($1,000,000). Thereafter, the license must be renewed on

an annual basis. For the first four (4) years after the initial

issue of the license, the license shall be subject to an annual

renewal fee of one million dollars ($1,000,000). Thereafter, the

licensee shall be subject to an annual renewal fee of two

hundred fifty thousand dollars ($250,000). All fees collected or

received by the board under this subsection shall be paid into

the State Treasury through the Department of Revenue into the

General Fund.

Section 5. Section 406(e)(1) and (g) of the act, amended

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December 22, 2011 (P.L.530, No.113), are amended to read:

Section 406. Sales by Liquor Licensees; Restrictions.--* * *

(e) (1) The holder of a hotel license or the holder of a

restaurant license located in a hotel may allow persons to

transport liquor or malt or brewed beverages from the licensed

portion of the premises to the unlicensed portion of the

premises, so long as the liquor or malt or brewed beverages

remain on the hotel property. In addition, a holder of a

restaurant or club license located on a golf course may sell,

furnish or give liquor or malt or brewed beverages on the

unlicensed portion of the golf course so long as the liquor or

malt or brewed beverages remain on the restaurant, club or golf

course. The holder of a restaurant license located immediately

adjacent to and under the same roof of a bowling center may

allow persons to transport liquor or malt or brewed beverages

from the licensed portion of the premises to the unlicensed

portion of the premises, so long as the liquor or malt or brewed

beverages remain within the bowling center. The holder of a slot

machine license may allow liquor or malt or brewed beverages to

be transported and consumed off of the licensed portion of the

premises so long as it remains within the facility that houses

the slot machine license. In addition, the holder of a hotel

license or a restaurant license may allow persons who have

purchased but only partially consumed a bottle of wine on the

premises to remove the bottle from the premises so long as the

bottle was purchased in conjunction with a meal which was

consumed on the premises and so long as the bottle is resealed.

For purposes of this subsection, "wine" shall have the meaning

given to it under section 488(i). For purposes of this section

and section 432, "meal" shall mean food prepared on the

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premises, sufficient to constitute breakfast, lunch or dinner;

it shall not mean a snack, such as pretzels, popcorn, chips or

similar food.

* * *

(g) Notwithstanding any other provision of law or

regulation, the holder of a retail license may hold happy hours

up to four consecutive or nonconsecutive hours per day and up to

fourteen hours per week during which the holder discounts the

price of alcoholic beverages. No discounts may be given between

the hours of midnight and the legal closing time. Notice of all

happy hours shall be visibly posted on the licensed premises

seven days prior to the happy hour. Except as provided in this

subsection, a licensee shall comply with the provisions of 40

Pa. Code § 13.102 (relating to discount pricing practices).

Events conducted under the authority of 40 Pa. Code § 13.102(b)

shall not be counted against the four-hour per day or fourteen-

hour per week limit. The holder of a slot machine license shall

not be subject to the restrictions set forth in this subsection

or the restrictions set forth in 40 Pa. Code § 13.102.

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

Section 415. Casino liquor license.--(a) The board is

authorized to issue a casino liquor license to any person

approved to hold a slot machine license under 4 Pa.C.S. Part II

(relating to gaming) for use at a facility that houses a slot

machine license.

(b) An application for a casino liquor license under this

section may be made by the holder of a slot machine license

pursuant to 4 Pa.C.S. Pt. II or its affiliate, intermediary,

subsidiary, holding company or otherwise under common ownership

with a person approved to hold a slot machine license or

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conditional slot machine license.

is subject to sections 403 and 404 unless otherwise stated. The

licensing period shall be set forth by the board under section

402. The application, renewal and filing fees may be as provided

in section 614-A(25) of the act of April 9, 1929 (P.L.177,

No.175), known as the "The Administrative Code of 1929," and as

set forth in s ection 405.

(d) An applicant under this section that currently holds a

restaurant liquor or eating place retail dispenser license

issued under the authority of 4 Pa.C.S. Part II may continue to

utilize that license until such time as the casino liquor

license is issued by the board. Upon the issuance of a license

under this section, the applicant must surrender the restaurant

liquor or eating place retail dispenser license to the board.

(e) An applicant under this section that currently holds a

restaurant liquor or eating place retail dispenser license

purchased through private sale may continue to utilize that

license until such time as the casino liquor license is issued

by the board. Upon issuance of a license under this section, the

applicant may sell the previously purchased restaurant liquor or

eating place retail dispenser license.

(f) Notwithstanding any other provision of this article to

the contrary, a holder of a casino license may sell or serve

liquor and malt or brewed beverages twenty-four hours a day,

seven days a week.

(g) In addition to the provisions of section 493(24)(ii),

the holder of a casino license may give liquor and malt or

brewed beverages free of charge to any person attending an

invitation only event held anywhere on the premises of the

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licensed facility, as that term is defined in 4 Pa.C.S. § 1103

(relating to definitions).

(h) Licenses issued under this section are nontransferable,

provided that nothing in this subsection shall preclude a

transfer of ownership of a casino license to anyone approved

under subsection (a) to be used at the same licensed premises.

(i) Licenses under this section shall expire upon:

(1) revocation by an administrative law judge under section

471;

(2) nonrenewal by the board under section 470;

(3) nonrenewal of the license by the license holder; or

(4) upon request by the slot machine license holder.

(j) The board may issue a license under this section at any

time to a new applicant even if the previous license had:

(1) been revoked by an administrative law judge under

section 471;

(2) not been renewed by the board under section 470;

(3) not been renewed by the license holder; or

(4) expired upon request by the slot machine license holder.

(k) Licenses issued under this section are subject to the

following additional restrictions and privileges:

(1) Sales may be made at any time the facility is open to

the public.

(2) Liquor or malt or brewed beverages may be transported

and consumed off of the licensed portion of the premises so long

as it remains within the facility that houses the slot machine

license.

(3) Sales of malt or brewed beverages for off-premises

consumption are prohibited.

(4) Licenses issued under this section shall not be subject

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to:

(i) the proximity provisions of sections 402 and 404;

(ii) the restrictions on discount pricing practices set

forth in section 406(g);

(iii) the quota restrictions of section 461;

(iv) the provisions of section 493(10) except as related to

lewd, immoral or improper entertainment;

(v) the prohibition against minors frequenting as described

in section 493(14);

(vi) the cost and total display area limitations of section

493(20)(i);

(vii) the restrictions on events, tournaments or contests

set forth in 40 Pa. Code § 5.32 (relating to

restrictions/exceptions); and

(viii) the restrictions on the awarding of trophies, prizes

or premiums set forth in 40 Pa. Code § 5.32.

(l) More than o ne license issued under this article may be

in effect at a facility that houses the slot machine license at

any one time. However, no more than one license issued under

this section shall be in effect at any specific location at the

same time.

(m) A license issued under this section shall be subject to

an application surcharge of seven hundred dollars ($700) per

year, payable at the same time as the license application,

renewal and validation fees. The application surcharge shall be

paid into The State Stores Fund.

Section 7. Section 461(a) of the act, amended October 24,

2012 (P.L.1203, No.149), is amended to read:

Section 461. Limiting Number of Retail Licenses To Be Issued

In Each County.--(a) No additional restaurant, eating place

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retail dispenser or club licenses shall be issued within a

county if the total number of restaurant and eating place retail

dispenser licenses is greater than one license for each three

thousand inhabitants in the county, except the board may issue

licenses to public venues, slot machine facilities, performing

arts facilities, continuing care retirement communities, airport

restaurants, municipal golf courses, hotels, privately-owned

private golf courses, privately-owned public golf courses,

racetracks, automobile racetracks, nonprimary pari-mutuel

wagering locations, privately-owned ski resorts and to any other

entity which this act specifically exempts from the limitations

provided in this section, and the board may issue a license to a

club situated in a borough having a population less than eight

thousand inhabitants which is located in a county of the second

class A whose application is filed on or before February 28,

2001. In addition, the board may issue an eating place retail

dispenser license for on-premises sales only to the owner or

operator of a facility having a minimum of a one-half mile

asphalt track and having a permanent seating capacity of at

least six thousand people used principally for holding

automobile races, regardless of the number of restaurant and

eating place retail dispenser licenses already issued in that

county. When determining the number of restaurant and eating

place retail dispenser licenses issued in a county for the

purposes of this section, licenses exempted from this limitation

and club licenses shall not be considered. Inhabitants of dry

municipalities shall be considered when determining the

population in a county. Licenses shall not be issued or

transferred into municipalities where such licenses are

prohibited pursuant to local referendum in accordance with

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section 472. Licenses approved for intermunicipal transfer may

not be transferred from the receiving municipality for a period

of five years after the date that the licensed premises are

operational in the receiving municipality.

* * *

Section 8. Section 471(b) of the act, amended July 6, 2005

(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.

However, if the license was issued pursuant to section 415, then

the administrative law judge, upon being satisfied that a

violation has occurred, shall immediately 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(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

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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. However, [if a licensee] if

the license was issued pursuant to section 415, then the

administrative law judge, upon being satisfied that a violation

has occurred, shall immediately revoke the license or impose a

fine of not less than five thousand dollars ($5,000) nor more

than fifty thousand dollars ($50,000), or both. If any licensee,

except one whose license was issued pursuant to section 415, 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. A licensee, whose license

was issued pursuant to section 415, that 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, shall be subject to a fine of not less than one thousand

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

or license revocation, 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

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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 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

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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 9. Section 493(10) and (24)(ii) of the act, amended

November 29, 2006 (P.L.1421, No.155) and June 28, 2011 (P.L.55,

No.11), are amended 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--

* * *

(10) Entertainment on Licensed Premises (Except Clubs);

Permits; Fees. For any licensee, his servants, agents or

employes, except club licensees, public venue licensees, slot

machine license holders or performing arts facility licensees,

to permit in any licensed premises or in any place operated in

connection therewith, dancing, theatricals or floor shows of any

sort, or moving pictures other than television, or such as are

exhibited through machines operated by patrons by the deposit of

coins, which project pictures on a screen not exceeding in size

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twenty-four by thirty inches and which forms part of the

machine, unless the licensee shall first have obtained from the

board a special permit to provide such entertainment, or for any

licensee, under any circumstances, to permit in any licensed

premises or in any place operated in connection therewith any

lewd, immoral or improper entertainment, regardless of whether a

permit to provide entertainment has been obtained or not. The

special permit may be used only during the hours when the sale

of liquor or malt or brewed beverages is permitted, unless the

licensee holds an extended hours food license under section

499(b) which license would allow the special permit to be used

while the establishment is open, and between eleven o'clock

antemeridian on Sunday and two o'clock antemeridian on the

following Monday, regardless of whether the licensee possesses a

Sunday sales permit. The board shall have power to provide for

the issue of such special permits, and to collect an annual fee

for such permits as prescribed in section 614-A of the act of

April 9, 1929 (P.L.177, No.175), known as "The Administrative

Code of 1929." All such fees shall be paid into the State Stores

Fund. No such permit shall be issued in any municipality which,

by ordinance, prohibits amusements in licensed places. Any

violation of this clause shall, in addition to the penalty

herein provided, subject the licensee to suspension or

revocation of his permit and his license.

* * *

(24) * * *

(ii) Notwithstanding subclause (i) or any other provision of

law, a holder of a restaurant license that is also approved to

hold a slot machine license or a conditional slot machine

license under 4 Pa.C.S. Part II (relating to gaming) or the

20150HB1345PN1928 - 17 -

holder of a casino liquor license issued pursuant to section 415

may give liquor and malt or brewed beverages free of charge, so

long as the recipient is not a minor or visibly intoxicated, to

any person actively engaged in playing a slot machine.

* * *

Section 10. This act shall take effect in 60 days.

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