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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| 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 |
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| REFERRED TO COMMITTEE ON LIQUOR CONTROL, JULY 7, 2009 |
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| AN ACT |
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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 sale of malt |
19 | or brewed beverages by liquor licensees, for malt and brewed |
20 | beverages manufacturers', distributors' and importing |
21 | distributors' licenses and for malt and brewed beverages |
22 | retail licenses. |
23 | The General Assembly of the Commonwealth of Pennsylvania |
24 | hereby enacts as follows: |
25 | Section 1. Section 404 of the act of April 12, 1951 (P.L.90, |
26 | No.21), known as the Liquor Code, reenacted and amended June 29, |
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1 | 1987 (P.L.32, No.14) and amended January 6, 2006 (P.L.1, No.1), |
2 | is amended to read: |
3 | Section 404. Issuance, Transfer or Extension of Hotel, |
4 | Restaurant and Club Liquor Licenses.--Upon receipt of the |
5 | application and the proper fees, and upon being satisfied of the |
6 | truth of the statements in the application that the applicant is |
7 | the only person in any manner pecuniarily interested in the |
8 | business so asked to be licensed and that no other person will |
9 | be in any manner pecuniarily interested therein during the |
10 | continuance of the license, except as hereinafter permitted, and |
11 | that the applicant is a person of good repute, that the premises |
12 | applied for meet all the requirements of this act and the |
13 | regulations of the board, that the applicant seeks a license for |
14 | a hotel, restaurant or club, as defined in this act, and that |
15 | the issuance of such license is not prohibited by any of the |
16 | provisions of this act, the board shall, in the case of a hotel |
17 | or restaurant, grant and issue to the applicant a liquor |
18 | license, and in the case of a club may, in its discretion, issue |
19 | or refuse a license: Provided, however, That in the case of any |
20 | new license or the transfer of any license to a new location or |
21 | the extension of an existing license to cover an additional area |
22 | the board may, in its discretion, grant or refuse such new |
23 | license, transfer or extension if such place proposed to be |
24 | licensed is within three hundred feet of any church, hospital, |
25 | charitable institution, school, or public playground, or if such |
26 | new license, transfer or extension is applied for a place which |
27 | is within two hundred feet of any other premises which is |
28 | licensed by the board: And provided further, That the board's |
29 | authority to refuse to grant a license because of its proximity |
30 | to a church, hospital, charitable institution, public playground |
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1 | or other licensed premises shall not be applicable to license |
2 | applications submitted for public venues or performing arts |
3 | facilities: And provided further, That the board shall refuse |
4 | any application for a new license, the transfer of any license |
5 | to a new location or the extension of an existing license to |
6 | cover an additional area if, in the board's opinion, such new |
7 | license, transfer or extension would be detrimental to the |
8 | welfare, health, peace and morals of the inhabitants of the |
9 | neighborhood within a radius of five hundred feet of the place |
10 | proposed to be licensed: And provided further, That the board |
11 | shall have the discretion to refuse a license to any person or |
12 | to any corporation, partnership or association if such person, |
13 | or any officer or director of such corporation, or any member or |
14 | partner of such partnership or association shall have been |
15 | convicted or found guilty of a felony within a period of five |
16 | years immediately preceding the date of application for the said |
17 | license. The board shall refuse any application for a new |
18 | license, the transfer of any license to a new location or the |
19 | extension of any license to cover an additional area where the |
20 | sale of liquid fuels or oil is conducted[.], it being the |
21 | legislative intent of this provision that no alcoholic beverages |
22 | may be sold from the same location as liquid fuels or oils. The |
23 | board may enter into an agreement with the applicant concerning |
24 | additional restrictions on the license in question. If the board |
25 | and the applicant enter into such an agreement, such agreement |
26 | shall be binding on the applicant. Failure by the applicant to |
27 | adhere to the agreement will be sufficient cause to form the |
28 | basis for a citation under section 471 and for the nonrenewal of |
29 | the license under section 470. If the board enters into an |
30 | agreement with an applicant concerning additional restrictions, |
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1 | those restrictions shall be binding on subsequent holders of the |
2 | license until the license is transferred to a new location or |
3 | until the board enters into a subsequent agreement removing |
4 | those restrictions. If the application in question involves a |
5 | location previously licensed by the board, then any restrictions |
6 | imposed by the board on the previous license at that location |
7 | shall be binding on the applicant unless the board enters into a |
8 | new agreement rescinding those restrictions. The board may, in |
9 | its discretion, refuse an application for an economic |
10 | development license under section 461(b.1) or an application for |
11 | an intermunicipal transfer of a license if the board receives a |
12 | protest from the governing body of the receiving municipality. |
13 | The receiving municipality of an intermunicipal transfer or an |
14 | economic development license under section 461(b.1) may file a |
15 | protest against the transfer of a license into its municipality, |
16 | and the receiving municipality shall have standing in a hearing |
17 | to present testimony in support of or against the issuance or |
18 | transfer of a license. Upon any opening in any quota, an |
19 | application for a new license shall only be filed with the board |
20 | for a period of six months following said opening. |
21 | Section 2. Section 407 of the act is amended by adding a |
22 | subsection to read: |
23 | Section 407. Sale of Malt or Brewed Beverages by Liquor |
24 | Licensees.--* * * |
25 | (c) A restaurant or hotel licensee who is otherwise |
26 | permitted to sell malt or brewed beverages for consumption off |
27 | the licensed premises shall not do so if its licensed premises |
28 | has an inside passage or connection to or with another business |
29 | or is operated in conjunction with another business occupying |
30 | one thousand square feet or more. The existing licensed premises |
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1 | of a restaurant or hotel licensee that has an inside passage or |
2 | connection to or with another business or is operated in |
3 | conjunction with another business occupying one thousand square |
4 | feet or more as of the effective date of this subsection shall |
5 | not be subject to this restriction, but the board shall refuse |
6 | any application for a new restaurant or hotel license or the |
7 | transfer of any restaurant or hotel license to a new location |
8 | with an inside passage or connection to or with another business |
9 | or that is operated in conjunction with another business |
10 | occupying one thousand square feet or more. |
11 | Section 3. Section 431(b) of the act, amended December 8, |
12 | 2004 (P.L.1810, No.239), is amended to read: |
13 | Section 431. Malt and Brewed Beverages Manufacturers', |
14 | Distributors' and Importing Distributors' Licenses.--* * * |
15 | (b) The board shall issue to any reputable person who |
16 | applies therefor, and pays the license fee hereinafter |
17 | prescribed, a distributor's or importing distributor's license |
18 | for the place which such person desires to maintain for the sale |
19 | of malt or brewed beverages, not for consumption on the premises |
20 | where sold, and in quantities of not less than a case or |
21 | original containers containing one hundred twenty-eight ounces |
22 | or more which may be sold separately as prepared for the market |
23 | by the manufacturer at the place of manufacture. The board shall |
24 | have the discretion to refuse a license to any person or to any |
25 | corporation, partnership or association if such person, or any |
26 | officer or director of such corporation, or any member or |
27 | partner of such partnership or association shall have been |
28 | convicted or found guilty of a felony within a period of five |
29 | years immediately preceding the date of application for the said |
30 | license: And provided further, That, in the case of any new |
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1 | license or the transfer of any license to a new location, the |
2 | board may, in its discretion, grant or refuse such new license |
3 | or transfer if such place proposed to be licensed is within |
4 | three hundred feet of any church, hospital, charitable |
5 | institution, school or public playground, or if such new license |
6 | or transfer is applied for a place which is within two hundred |
7 | feet of any other premises which is licensed by the board: And |
8 | provided further, That the board shall refuse any application |
9 | for a new license or the transfer of any license to a new |
10 | location if, in the board's opinion, such new license or |
11 | transfer would be detrimental to the welfare, health, peace and |
12 | morals of the inhabitants of the neighborhood within a radius of |
13 | five hundred feet of the place proposed to be licensed. The |
14 | board shall refuse any application for a new license or the |
15 | transfer of any license to a location where the sale of liquid |
16 | fuels or oil is conducted[.], it being the legislative intent of |
17 | this provision that no alcoholic beverages may be sold from the |
18 | same location as liquid fuels or oils. The board may enter into |
19 | 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 shall require notice to |
5 | be posted on the property or premises upon which the licensee or |
6 | proposed licensee will engage in sales of malt or brewed |
7 | beverages. This notice shall be similar to the notice required |
8 | of hotel, restaurant and club liquor licensees. |
9 | Except as hereinafter provided, such license shall authorize |
10 | the holder thereof to sell or deliver malt or brewed beverages |
11 | in quantities above specified anywhere within the Commonwealth |
12 | of Pennsylvania, which, in the case of distributors, have been |
13 | purchased only from persons licensed under this act as |
14 | manufacturers or importing distributors, and in the case of |
15 | importing distributors, have been purchased from manufacturers |
16 | or persons outside this Commonwealth engaged in the legal sale |
17 | of malt or brewed beverages or from manufacturers or importing |
18 | distributors licensed under this article. In the case of an |
19 | importing distributor, the holder of such a license shall be |
20 | authorized to store and repackage malt or brewed beverages owned |
21 | by a manufacturer at a segregated portion of a warehouse or |
22 | other storage facility authorized by section 441(d) and operated |
23 | by the importing distributor within its appointed territory and |
24 | deliver such beverages to another importing distributor who has |
25 | been granted distribution rights by the manufacturer as provided |
26 | herein. The importing distributor shall be permitted to receive |
27 | a fee from the manufacturer for any related storage, repackaging |
28 | or delivery services. In the case of a bailee for hire hired by |
29 | a manufacturer, the holder of such a permit shall be authorized: |
30 | to receive, store and repackage malt or brewed beverages |
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1 | produced by that manufacturer for sale by that manufacturer to |
2 | importing distributors to whom that manufacturer has given |
3 | distribution rights pursuant to this subsection or to purchasers |
4 | outside this Commonwealth for delivery outside this |
5 | Commonwealth; or to ship to that manufacturer's storage |
6 | facilities outside this Commonwealth. The bailee for hire shall |
7 | be permitted to receive a fee from the manufacturer for any |
8 | related storage, repackaging or delivery services. The bailee |
9 | for hire shall, as required in Article V of this act, keep |
10 | complete and accurate records of all transactions, inventory, |
11 | receipts and shipments and make all records and the licensed |
12 | areas available for inspection by the board and for the |
13 | Pennsylvania State Police, Bureau of Liquor Control Enforcement, |
14 | during normal business hours. |
15 | Each out of State manufacturer of malt or brewed beverages |
16 | whose products are sold and delivered in this Commonwealth shall |
17 | give distributing rights for such products in designated |
18 | geographical areas to specific importing distributors, and such |
19 | importing distributor shall not sell or deliver malt or brewed |
20 | beverages manufactured by the out of State manufacturer to any |
21 | person issued a license under the provisions of this act whose |
22 | licensed premises are not located within the geographical area |
23 | for which he has been given distributing rights by such |
24 | manufacturer. Should a licensee accept the delivery of such malt |
25 | or brewed beverages in violation of this section, said licensee |
26 | shall be subject to a suspension of his license for at least |
27 | thirty days: Provided, That the importing distributor holding |
28 | such distributing rights for such product shall not sell or |
29 | deliver the same to another importing distributor without first |
30 | having entered into a written agreement with the said secondary |
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1 | importing distributor setting forth the terms and conditions |
2 | under which such products are to be resold within the territory |
3 | granted to the primary importing distributor by the |
4 | manufacturer. |
5 | When a Pennsylvania manufacturer of malt or brewed beverages |
6 | licensed under this article names or constitutes a distributor |
7 | or importing distributor as the primary or original supplier of |
8 | his product, he shall also designate the specific geographical |
9 | area for which the said distributor or importing distributor is |
10 | given distributing rights, and such distributor or importing |
11 | distributor shall not sell or deliver the products of such |
12 | manufacturer to any person issued a license under the provisions |
13 | of this act whose licensed premises are not located within the |
14 | geographical area for which distributing rights have been given |
15 | to the distributor and importing distributor by the said |
16 | manufacturer: Provided, That the importing distributor holding |
17 | such distributing rights for such product shall not sell or |
18 | deliver the same to another importing distributor without first |
19 | having entered into a written agreement with the said secondary |
20 | importing distributor setting forth the terms and conditions |
21 | under which such products are to be resold within the territory |
22 | granted to the primary importing distributor by the |
23 | manufacturer. Nothing herein contained shall be construed to |
24 | prevent any manufacturer from authorizing the importing |
25 | distributor holding the distributing rights for a designated |
26 | geographical area from selling the products of such manufacturer |
27 | to another importing distributor also holding distributing |
28 | rights from the same manufacturer for another geographical area, |
29 | providing such authority be contained in writing and a copy |
30 | thereof be given to each of the importing distributors so |
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1 | affected. |
2 | * * * |
3 | Section 4. Section 432(d) of the act, amended January 6, |
4 | 2006 (P.L.1, No.1), is amended and the section is amended by |
5 | adding a subsection to read: |
6 | Section 432. Malt and Brewed Beverages Retail Licenses.--* * |
7 | * |
8 | (d) The board shall, in its discretion, grant or refuse any |
9 | new license, the transfer of any license to a new location or |
10 | the extension of an existing license to cover an additional area |
11 | if such place proposed to be licensed is within three hundred |
12 | feet of any church, hospital, charitable institution, school, or |
13 | public playground, or if such new license, transfer or extension |
14 | is applied for a place which is within two hundred feet of any |
15 | other premises which is licensed by the board. The board shall |
16 | refuse any application for a new license, the transfer of any |
17 | license to a new location or the extension of an existing |
18 | license to cover an additional area if, in the board's opinion, |
19 | such new license, transfer or extension would be detrimental to |
20 | the welfare, health, peace and morals of the inhabitants of the |
21 | neighborhood within a radius of five hundred feet of the place |
22 | to be licensed. The board may enter into an agreement with the |
23 | applicant concerning additional restrictions on the license in |
24 | question. If the board and the applicant enter into such an |
25 | agreement, such agreement shall be binding on the applicant. |
26 | Failure by the applicant to adhere to the agreement will be |
27 | sufficient cause to form the basis for a citation under section |
28 | 471 and for the nonrenewal of the license under section 470. If |
29 | the board enters into an agreement with an applicant concerning |
30 | additional restrictions, those restrictions shall be binding on |
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1 | subsequent holders of the license until the license is |
2 | transferred to a new location or until the board enters into a |
3 | subsequent agreement removing those restrictions. If the |
4 | application in question involves a location previously licensed |
5 | by the board, then any restrictions imposed by the board on the |
6 | previous license at that location shall be binding on the |
7 | applicant unless the board enters into a new agreement |
8 | rescinding those restrictions. The board shall refuse any |
9 | application for a new license, the transfer of any license to a |
10 | location where the sale of liquid fuels or oil is conducted or |
11 | the extension of an existing license to cover an additional |
12 | area[:], it being the legislative intent of this provision that |
13 | no alcoholic beverages may be sold from the same location as |
14 | liquid fuels or oils: And provided further, That the board shall |
15 | have the discretion to refuse a license to any person or to any |
16 | corporation, partnership or association if such person, or any |
17 | officer or director of such corporation, or any member or |
18 | partner of such partnership or association shall have been |
19 | convicted or found guilty of a felony within a period of five |
20 | years immediately preceding the date of application for the said |
21 | license. The board may, in its discretion, refuse an application |
22 | for an economic development license under section 461(b.1) or an |
23 | application for an intermunicipal transfer or a license if the |
24 | board receives a protest from the governing body of the |
25 | receiving municipality. The receiving municipality of an |
26 | intermunicipal transfer or an economic development license under |
27 | section 461(b.1) may file a protest against the approval for |
28 | issuance of a license for economic development or an |
29 | intermunicipal transfer of a license into its municipality, and |
30 | such municipality shall have standing in a hearing to present |
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1 | testimony in support of or against the issuance or transfer of a |
2 | license. Upon any opening in any quota, an application for a new |
3 | license shall only be filed with the board for a period of six |
4 | months following said opening. |
5 | (d.1) An eating place retail dispenser licensee who is |
6 | otherwise permitted to sell malt or brewed beverages for |
7 | consumption off the licensed premises shall not do so if its |
8 | licensed premises has an inside passage or connection to or with |
9 | another business or is operated in conjunction with another |
10 | business occupying one thousand square feet or more. The |
11 | existing licensed premises of an eating place retail dispenser |
12 | licensee that has an inside passage or connection to or with |
13 | another business or is operated in conjunction with another |
14 | business occupying one thousand square feet or more as of the |
15 | effective date of this subsection shall not be subject to this |
16 | restriction, but the board shall refuse any application for a |
17 | new eating place retail dispenser license or the transfer of any |
18 | eating place retail dispenser license to a new location with an |
19 | inside passage or connection to or with another business or that |
20 | is operated in conjunction with another business occupying one |
21 | thousand square feet or more. |
22 | * * * |
23 | Section 5. This act shall take effect in 60 days. |
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