Regular Session 2021-2022 House Bill 2490 P.N. 2942

PRINTER'S NO. 2942

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2490

Session of

2022

INTRODUCED BY ISAACSON, DEASY, CEPHAS, HARKINS, HOHENSTEIN,

PARKER AND ROZZI, APRIL 6, 2022

REFERRED TO COMMITTEE ON LIQUOR CONTROL, APRIL 6, 2022

AN ACT

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

preliminary provisions, further providing for definitions;

and, in licenses and regulations and liquor, alcohol and malt

and brewed beverages, further providing for license

districts, license period and hearings, for issuance,

transfer or extension of hotel, restaurant and club liquor

licenses, 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 102 of the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code, is amended by adding a

definition 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:

* * *

"Previously unlicensed location" shall mean a location that:

(1) has never held a retail liquor license, importing

distributor license or distributor license; or

(2) previously held a retail liquor license, importing

distributor license or distributor license which was not used

for a subsequent non-license-related purpose for a period of at

least three years.

* * *

Section 2. Section 402(a) and (b) of the act are amended to

read:

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

(a) The board shall hold hearings on applications for licenses

and renewals thereof, as it deems necessary, at such times as it

shall fix for the purpose of hearing testimony for and against

applications for new licenses and renewals thereof. The board

shall hold a hearing on any application for a new hotel, club or

restaurant liquor license or the transfer of any such license to

a [new] previously unlicensed location, upon the request of any

person with standing to testify under subsection (b) if the

request is filed with the board within the first fifteen days of

posting of the notice of application pursuant to section 403(g).

The board may provide for the holding of such hearings by

hearing examiners learned in the law, to be appointed by the

Governor, who shall not be subject to the act of August 5, 1941

(P.L.752, No.286), known as the "Civil Service Act." Such

hearing examiners shall make a report to the board in each case

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with their recommendations. The board may fix the license period

for each separate license so that the expiration dates shall be

staggered as to the State.

(b) Where a hearing is held in the case of an application

for a new hotel, club or restaurant liquor license or an

application for the transfer of a hotel, club or restaurant

liquor license to a [new] previously unlicensed location, the

board shall permit residents residing within a radius of five

hundred feet of the premises to testify at the hearing. The

board and any hearing examiner thereof shall give appropriate

evidentiary weight to any testimony of such residents given at

the hearing.

* * *

Section 3. Sections 404(a), 431(b) and 432(d) of the act,

amended June 5, 2020 (P.L.213, No.29), are amended to read:

Section 404. Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--(a) 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

and management company or companies, if any, are the only

persons 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

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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] previously

unlicensed 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] previously unlicensed

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

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years immediately preceding the date of application for the said

license. 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.

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* * *

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. In addition, a

distributor license holder may sell malt or brewed beverages in

any amount to a person not licensed by the board for off-

premises consumption. The sales shall not be required to be in

the package configuration designated by the manufacturer and may

be sold in refillable growlers. 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] previously

unlicensed 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

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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] previously unlicensed 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 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

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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,

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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. In addition, the holder of a distributor license

may not sell or deliver malt or brewed beverages to any licensee

whose licensed premises is located within the designated

geographical area granted to an importing distributor other than

the importing distributor that sold the malt or brewed beverages

to the distributor. If the licensee purchasing the malt or

brewed beverages from the distributor license holder holds

multiple licenses or operates at more than one location, then

the malt or brewed beverages may not be consumed or sold at

licensed premises located within the designated geographical

area granted to an importing distributor other than the

importing distributor that sold the malt or brewed beverages to

the distributor. Should a licensee accept the delivery of malt

or brewed beverages or transfer 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

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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. In addition, the holder of a distributor license

may not sell or deliver malt or brewed beverages to a licensee

whose licensed premises is located within the designated

geographical area granted to an importing distributor other than

the importing distributor that sold the malt or brewed beverages

to the distributor. If the licensee purchasing the malt or

brewed beverages from the distributor license holder holds

multiple licenses or operates at more than one location, the

malt or brewed beverages may not be consumed or sold at licensed

premises located within the designated geographical area granted

to an importing distributor other than the importing distributor

that sold the malt or brewed beverages to the distributor. If a

licensee accepts the delivery of malt or brewed beverages or

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transfers malt or brewed beverages in violation of this section,

the licensee shall be subject to 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. 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 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] previously

unlicensed 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

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license, the transfer of any license to a [new] previously

unlicensed 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 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

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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.

* * *

Section 4. This act shall take effect in 60 days.

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