SENATE AMENDED
        PRIOR PRINTER'S NOS. 1102, 1366               PRINTER'S NO. 1735

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1000 Session of 1987


        INTRODUCED BY SALOOM, BELARDI, JAROLIN, MANMILLER, MANDERINO,
           LAUGHLIN, IRVIS, O'DONNELL, FEE, DOMBROWSKI, ITKIN, PETRARCA,
           COY, D. R. WRIGHT, ACOSTA, PETRONE, YANDRISEVITS, HALUSKA,
           DUFFY, WAMBACH, LaGROTTA, VAN HORNE, GAMBLE, LETTERMAN,
           COLAFELLA, VEON AND CALTAGIRONE, APRIL 7, 1987

        SENATOR SHUMAKER, LAW AND JUSTICE, IN SENATE, AS AMENDED,
           JUNE 9, 1987

                                     AN ACT

     1  Reenacting and amending the act of April 12, 1951 (P.L.90,
     2     No.21), entitled "An act relating to alcoholic liquors,
     3     alcohol and malt and brewed beverages; amending, revising,
     4     consolidating and changing the laws relating thereto;
     5     regulating and restricting the manufacture, purchase, sale,
     6     possession, consumption, importation, transportation,
     7     furnishing, holding in bond, holding in storage, traffic in
     8     and use of alcoholic liquors, alcohol and malt and brewed
     9     beverages and the persons engaged or employed therein;
    10     defining the powers and duties of the Pennsylvania Liquor
    11     Control Board; providing for the establishment and operation
    12     of State liquor stores, for the payment of certain license
    13     fees to the respective municipalities and townships, for the
    14     abatement of certain nuisances and, in certain cases, for
    15     search and seizure without warrant; prescribing penalties and
    16     forfeitures; providing for local option, and repealing
    17     existing laws," providing for the creation REESTABLISHMENT,    <--
    18     powers and duties of the Alcoholic Beverages Commission        <--
    19     BOARD; providing ethical standards for the commission and its  <--
    20     members and employees; establishing administrative officers
    21     and units for the administration and enforcement of the act;
    22     providing for the powers and duties of the Auditor General,
    23     State Treasurer, Attorney General and Pennsylvania State
    24     Police; regulating advertising; further providing for          <--
    25     licenses, for penalties, for funding and for disposition of
    26     moneys; and transferring personnel, property and
    27     appropriations.

    28                         TABLE OF CONTENTS

     1  ARTICLE I.  PRELIMINARY PROVISIONS.
     2     Section 101.  Short Title.
     3     Section 102.  Definitions.
     4     Section 103.  Saving Clause.
     5     Section 104.  Interpretation of Act.
     6  ARTICLE II.  ALCOHOLIC BEVERAGES COMMISSION.                      <--
     7  ARTICLE II.  PENNSYLVANIA LIQUOR CONTROL BOARD.                   <--
     8     Section 201.  Appointment of Members; Terms; Salaries.
     9     Section 202.  Qualifications of Members.
    10     Section 203.  Chairman of Commission BOARD.                    <--
    11     Section 204.  Executive Director.                              <--
    12     SECTION 204.  SECRETARY OF BOARD.                              <--
    13     Section 205.  Bonds Required of Members and Executive          <--
    14                     Director SECRETARY.                            <--
    15     Section 206.  Commission BOARD Subject to                      <--
    16                     Administrative Code.
    17     Section 206.1.Commission BOARD AND ENFORCEMENT BUREAU          <--
    18                     Subject to State Ethics and Adverse Interest
    19                     Acts.
    20     Section 207.  General Powers of Commission BOARD.              <--
    21     Section 208.  Specific Subjects on Which Commission            <--
    22                     BOARD May Adopt Regulations.                   <--
    23     Section 209.  Officers and Investigators of the Board to be
    24                     Peace Officers; Powers (Repealed).
    25     Section 210.  Restrictions on Members of the Commission        <--
    26                     BOARD and CERTAIN Employes of Commonwealth.    <--
    27     Section 211.  Enforcement.
    28     Section 212.  Office of Administrative Law Judge.
    29     Section 213.  Office of Chief Counsel.                         <--
    30     Section 214 213.  Bureau of Consumer Relations.                <--
    19870H1000B1735                  - 2 -

     1     Section 215 214.  Prohibitions.                                <--
     2     Section 216 215.  Wine Marketing.                              <--
     3  ARTICLE III.  PENNSYLVANIA LIQUOR STORES.
     4     Section 301.  Commission BOARD to Establish State              <--
     5                     Liquor Stores.
     6     Section 302.  Selection of Personnel.
     7     Section 303.  Management of Pennsylvania Liquor Stores.
     8     Section 304.  When Sales May Be Made at Pennsylvania Liquor
     9                     Stores.
    10     Section 305.  Sales by Pennsylvania Liquor Stores.
    11     Section 306.  Audits by Auditor General.
    12  ARTICLE IV.  LICENSES AND REGULATIONS; LIQUOR, ALCOHOL AND
    13                 MALT AND BREWED BEVERAGES.
    14         (A)  Liquor and Alcohol (Not Including Manufacturers).
    15     Section 401.  Authority to Issue Liquor Licenses to Hotels,
    16                     Restaurants and Clubs.
    17     Section 402.  License Districts; License Year; Hearings.
    18     Section 403.  Applications for Hotel, Restaurant and Club
    19                     Liquor Licenses.
    20     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
    21                     Licenses.
    22     Section 405.  License Fees.
    23     Section 406.  Sales by Liquor Licensees; Restrictions.
    24     Section 406.1.Secondary Service Area.
    25     Section 407.  Sale of Malt or Brewed Beverages by Liquor
    26                     Licensees.
    27     Section 408.  Public Service Liquor Licenses.
    28     Section 408.1.Trade Show and Convention Licenses.
    29     Section 408.2.City-Owned Stadia.
    30     Section 408.3.Performing Arts Facilities.
    19870H1000B1735                  - 3 -

     1     Section 408.4.Special Occasion Permits.
     2     Section 408.5.Licenses for City-owned Art Museums, Cities
     3                     First Class and; Art Museums Maintained        <--
     4                     by Certain Non-profit Corporations in Cities
     5                     of the Second Class AND NON-PROFIT SCIENCE     <--
     6                     AND TECHNOLOGY MUSEUMS IN CITIES OF THE
     7                     FIRST CLASS AND CITIES OF THE SECOND CLASS.
     8     Section 408.6.Performing Arts Facilities in Third Class
     9                     Cities.
    10     Section 408.7.Performing Arts Facilities in First and Second
    11                     Class Cities.
    12     Section 408.8.Trade Shows and Convention Licenses; Cities of
    13                     the Third Class.
    14     Section 408.9.Stadium and Restaurant Licenses in Third Class
    15                     Cities.
    16     Section 409.  Sacramental Wine Licenses; Fees; Privileges;
    17                     Restrictions.
    18     Section 410.  Liquor Importers' Licenses; Fees; Privileges;
    19                     Restrictions.
    20     Section 411.  Interlocking Business Prohibited.
    21         (B)  Malt and Brewed Beverages (Including Manufacturers).
    22     Section 431.  Malt and Brewed Beverages Manufacturers',
    23                     Distributors' and Importing Distributors'
    24                     Licenses.
    25     Section 432.  Malt and Brewed Beverages Retail Licenses.
    26     Section 433.  Public Service Licenses.
    27     Section 433.1.Stadium or Arena Permits.
    28     Section 434.  License Year.
    29     Section 435.  Filing of Applications for Distributors',
    30                     Importing Distributors' and Retail
    19870H1000B1735                  - 4 -

     1                     Dispensers' Licenses; Filing Fee.
     2     Section 436.  Application for Distributors', Importing
     3                     Distributors' and Retail Dispensers'
     4                     Licenses.
     5     Section 437.  Prohibitions Against the Grant of Licenses.
     6     Section 438.  Number and Kinds of Licenses Allowed Same
     7                     Licensee.
     8     Section 439.  Malt or Brewed Beverage License Fees.
     9     Section 440.  Sales by Manufacturers of Malt or Brewed
    10                     Beverages; Minimum Quantities.
    11     Section 441.  Distributors' and Importing Distributors'
    12                     Restrictions on Sales, Storage, Etc.
    13     Section 442.  Retail Dispensers' Restrictions on Purchases
    14                     and Sales.
    15     Section 443.  Interlocking Business Prohibited.
    16     Section 444.  Malt or Brewed Beverages Manufactured Outside
    17                     This Commonwealth.
    18     Section 445.  Limited Breweries.
    19         (C)  General Provisions Applying to Both Liquor and Malt
    20                 and Brewed Beverages.
    21     Section 461.  Limiting Number of Retail Licenses To Be Issued
    22                     In Each Municipality.
    23     Section 461.1.Incorporated Units of National Veterans'
    24                     Organizations.
    25     Section 462.  Licensed Places May Be Closed During Period of
    26                     Emergency.
    27     Section 463.  Places of Amusement Not To Be Licensed;
    28                     Penalty.
    29     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
    30                     Transfers; Appeals.
    19870H1000B1735                  - 5 -

     1     Section 465.  All Licensees to Furnish Bond.
     2     Section 466.  Disposition of Cash and Securities Upon
     3                     Forfeiture of Bond.
     4     Section 467.  Display of License.
     5     Section 468.  Licenses Not Assignable; Transfers.
     6     Section 469.  Applications for Transfers; Fees.
     7     Section 470.  Renewal of Licenses; Temporary Provisions for
     8                     Licensees in Armed Service.
     9     Section 470.1.Renewal of Hotel Liquor Licenses; Special
    10                     Provisions (Repealed).
    11     Section 470.2.Exchange of Hotel Liquor License; Special
    12                     Provisions (Repealed).
    13     Section 471.  Revocation and Suspension of Licenses; Fines.
    14     Section 472.  Local Option.
    15     Section 472.1.Clubs.
    16     Section 472.2.Granting of Liquor Licenses in Certain
    17                     Municipalities.
    18     Section 472.3.Exchange of Certain Licenses.
    19     Section 473.  Public Record.
    20     Section 474.  Surrender of Club Licenses for Benefit of
    21                     Licensees.
    22     Section 475.  Establishments Proximate to Interstate Highways
    23                 Not To Be Licensed.
    24     SECTION 477.  APPLICANTS TO PROVIDE STATE TAX                  <--
    25                     IDENTIFICATION NUMBERS AND STATEMENT OF STATE
    26                     TAX STATUS; WAIVER OF CONFIDENTIALITY OF
    27                     INFORMATION IN THE POSSESSION OF THE
    28                     DEPARTMENT OF REVENUE AND OTHER DEPARTMENTS;
    29                     REVIEW OF STATE TAX STATUS.
    30         (D)  Unlawful Acts; Penalties.
    19870H1000B1735                  - 6 -

     1     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
     2                     Liquor Licensees.
     3     Section 492.  Unlawful Acts Relative to Malt or Brewed
     4                     Beverages and Licensees.
     5     Section 493.  Unlawful Acts Relative to Liquor, Malt and
     6                     Brewed Beverages and Licensees.
     7     Section 494.  Penalties.
     8     Section 495.  Identification Cards; Licensees and State
     9                     Liquor Store Employes Saved From Prosecution.
    10     Section 496.  Reporting of Worthless Checks.
    11     Section 497.  Liability of Licensees.
    12     Section 498.  Unlawful Advertising.                            <--
    13  ARTICLE V.  DISTILLERIES, WINERIES, BONDED WAREHOUSES, BAILEES
    14                 FOR HIRE AND TRANSPORTERS FOR HIRE.
    15     Section 501.  License Required.
    16     Section 502.  Exemptions.
    17     Section 502.1.Production of Denatured Ethyl Alcohol.
    18     Section 503.  Qualifications for License.
    19     Section 504.  Applications; Filing Fees.
    20     Section 505.  Licenses Issued.
    21     Section 505.1.Bonded Warehouse License Privilege
    22                     Restrictions.
    23     Section 505.2.Limited Wineries.
    24     Section 505.3.Distilleries.
    25     Section 506.  Bonds Required.
    26     Section 507.  Hearings on Licenses and Refusals.
    27     Section 508.  License Fees.
    28     Section 509.  License Must Be Posted; Business Hours.
    29     Section 510.  Containers To Be Labeled.
    30     Section 511.  License To Specify Each Place Authorized For
    19870H1000B1735                  - 7 -

     1                     Use.
     2     Section 512.  Records To Be Kept.
     3     Section 513.  Premises and Records Subject To Inspection.
     4     Section 514.  Suspension and Revocation of Licenses.
     5     Section 515.  Appeals.
     6     Section 516.  Compromise Penalty In Lieu of Suspension.
     7     Section 517.  Expiration of Licenses; Renewals.
     8     Section 518.  Unlawful Acts.
     9     Section 519.  Penalties.
    10  ARTICLE VI.  PROPERTY ILLEGALLY POSSESSED OR USED; FORFEITURES;
    11                 NUISANCES.
    12         (A)  Forfeitures.
    13     Section 601.  Forfeiture of Property Illegally Possessed or
    14                     Used.
    15     Section 602.  Forfeiture Proceedings.
    16     Section 603.  Disposition of Forfeited Property.
    17     Section 604.  Motor Vehicle Licenses To Be Revoked.
    18     Section 605.  Application of Subdivision.
    19         (B)  Nuisances.
    20     Section 611.  Nuisances; Actions To Enjoin.
    21  ARTICLE VII.  DEALING IN DISTILLERY BONDED WAREHOUSE
    22                  CERTIFICATES.
    23         (A)  Preliminary Provisions.
    24     Section 701.  Definitions and Interpretation.
    25         (B)  Permits.
    26     Section 702.  Unlawful to Act as a Distillery Certificate
    27                     Broker or to Buy or Sell Distillery Bonded
    28                     Warehouse Certificate Without a Permit.
    29     Section 703.  Authority to Issue Permits to Distillery
    30                     Certificate Brokers.
    19870H1000B1735                  - 8 -

     1     Section 704.  Application for Permit; Filing Fee.
     2     Section 705.  Issuance of Permits.
     3     Section 706.  Office or Place of Business to be Maintained.
     4     Section 707.  Permit Fee; Permits Not Assignable or
     5                     Transferable; Display of Permit; Term of
     6                     Permit.
     7     Section 708.  Records to be Kept.
     8     Section 709.  Renewal of Permits.
     9     Section 710.  Permit Hearings; Appeals From Refusal of the
    10                     Commission BOARD to Issue or Renew Permits.    <--
    11     Section 712.  Revocation and Suspension of Permit.
    12         (C)  Permittees' Registered Agents.
    13     Section 721.  Unlawful to Act as Agent or to Employ Agents
    14                     Without Registration.
    15     Section 722.  Registered Agents.
    16     Section 723.  Registration Fee.
    17     Section 724.  Registration and Issuance of Identification
    18                     Card.
    19     Section 725.  Hearings Upon Refusal of the Commission          <--
    20                     BOARD; Appeals.                                <--
    21     Section 726.  Revocation and Suspension of Agents'
    22                     Registrations.
    23     Section 727.  Identification Cards.
    24         (D)  Exemptions.
    25     Section 731.  Bank and Trust Companies and Other Persons.
    26     Section 732.  Distillers, Rectifiers and Importers.
    27     Section 733.  Certificates Owned Since July 24, 1939.
    28         (E)  Administration and Enforcement.
    29     Section 741.  Duties of the Commission BOARD.                  <--
    30         (F)  Fines and Penalties.
    19870H1000B1735                  - 9 -

     1     Section 751.  Penalties.
     2  ARTICLE VIII.  DISPOSITION OF MONEYS COLLECTED UNDER PROVISIONS
     3                 OF ACT.
     4     Section 801.  Moneys Paid Into Liquor License Fund and
     5                     Returned to Municipalities.
     6     Section 802.  Moneys Paid Into The State Stores Fund for Use
     7                     of the Commonwealth.
     8     Section 803.  Alcohol Tax Moneys Paid Into General Fund.
     9  ARTICLE IX.  REPEALS.
    10     Section 901.  Acts and Parts of Acts Repealed (REPEALED).      <--
    11     Section 902.  General Repeal Clause (REPEALED).                <--
    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The title of the act of April 12, 1951 (P.L.90,
    15  No.21), known as the Liquor Code, is reenacted and amended to     <--
    16  read:
    17                               AN ACT
    18  Relating to alcoholic liquors, alcohol and malt and brewed
    19     beverages; amending, revising, consolidating and changing the
    20     laws relating thereto; regulating and restricting the
    21     manufacture, purchase, sale, possession, consumption,
    22     importation, transportation, furnishing, holding in bond,
    23     holding in storage, traffic in and use of alcoholic liquors,
    24     alcohol and malt and brewed beverages and the persons engaged
    25     or employed therein; defining the powers and duties of the
    26     [Pennsylvania Liquor Control Board] Alcoholic Beverages        <--
    27     Commission; providing for the establishment and operation of
    28     State liquor stores, for the payment of certain license fees
    29     to the respective municipalities and townships, for the
    30     abatement of certain nuisances and, in certain cases, for
    19870H1000B1735                 - 10 -

     1     search and seizure without warrant; prescribing penalties and
     2     forfeitures; providing for local option, and repealing
     3     existing laws.
     4     Section 2.  The heading of Article I of the act is reenacted
     5  to read:
     6                             ARTICLE I.
     7                      PRELIMINARY PROVISIONS.
     8     Section 3.  Section 101 of the act is reenacted to read:
     9     Section 101.  Short Title.--This act shall be known and may
    10  be cited as the "Liquor Code."
    11     Section 4.  Section 102 of the act, amended July 10,1957
    12  (P.L.638, No.346), August 17, 1965 (P.L.346, No.182), December
    13  2, 1970 (P.L.825, No.271), October 11, 1972 (P.L.906, No.215),
    14  December 12, 1980 (P.L.1195, No.221) and May 2, 1986 (P.L.141,
    15  No.44), is reenacted and amended to read:
    16     Section 102.  Definitions.--The following words or phrases,
    17  unless the context clearly indicates otherwise, shall have the
    18  meanings ascribed to them in this section:
    19     "Alcohol" shall mean ethyl alcohol of any degree of proof
    20  originally produced by the distillation of any fermented liquid,
    21  whether rectified or diluted with or without water, whatever may
    22  be the origin thereof, and shall include synthetic ethyl
    23  alcohol, but shall not mean or include ethyl alcohol, whether or
    24  not diluted, that has been denatured or otherwise rendered unfit
    25  for beverage purposes.
    26     "Association" shall mean a partnership, limited partnership
    27  or any form of unincorporated enterprise owned by two or more
    28  persons.
    29     ["Board" shall mean the Pennsylvania Liquor Control Board.]    <--
    30     "Bonded warehouse" shall mean and include all places and
    19870H1000B1735                 - 11 -

     1  warehouses legally established under the provisions of the acts
     2  of Congress and the administrative provisions of the internal
     3  revenue laws of the Government of the United States of America,
     4  for the storage, concentration, distribution and holding in
     5  bond, (a) of whiskey and any other potable distilled spirits,
     6  except ethyl alcohol, when used in Article VII entitled
     7  "Distillery Bonded Warehouse Certificates" and, (b) of alcohol
     8  or liquor when otherwise used.
     9     "Club" shall mean any reputable group of individuals
    10  associated together not for profit for legitimate purposes of
    11  mutual benefit, entertainment, fellowship or lawful convenience,
    12  having some primary interest and activity to which the sale of
    13  liquor or malt and brewed beverages shall be only secondary,
    14  which, if incorporated, has been in continuous existence and
    15  operation for at least one year, and if first licensed after
    16  June sixteenth, one thousand nine hundred thirty-seven, shall
    17  have been incorporated in this Commonwealth, and, if
    18  unincorporated, for at least ten years, immediately preceding
    19  the date of its application for a license under this act, and
    20  which regularly occupies, as owner or lessee, a clubhouse or
    21  quarters for the use of its members. Continuous existence must
    22  be proven by satisfactory evidence. The [board] commission shall  <--
    23  refuse to issue a license if it appears that the charter is not
    24  in possession of the original incorporators or their direct or
    25  legitimate successors. The club shall hold regular meetings,
    26  conduct its business through officers regularly elected, admit
    27  members by written application, investigation and ballot, and
    28  charge and collect dues from elected members, and maintain such
    29  records as the [board] commission shall from time to time         <--
    30  prescribe, but any such club may waive or reduce in amount, or
    19870H1000B1735                 - 12 -

     1  pay from its club funds, the dues of any person who was a member
     2  at the time he was inducted into the military service of the
     3  United States or was enrolled in the armed forces of the United
     4  States pursuant to any selective service act during the time of
     5  the member's actual service or enrollment. The term includes a
     6  privately-owned private golf course.
     7     "Commission" shall mean the Alcoholic Beverages Commission.    <--
     8     "Container" shall mean and include any receptacle, vessel or
     9  form of package, tank, vat, cask, barrel, drum, keg, can, bottle
    10  or conduit used or capable of use for holding, storing,
    11  transferring or shipment of alcohol, liquor or malt or brewed
    12  beverages.
    13     "Corporation" shall mean a corporation or joint-stock
    14  association organized under the laws of this Commonwealth, the
    15  United States, or any other state, territory, or foreign country
    16  or dependency.
    17     "Denatured alcohol" shall mean and include all alcohol or any
    18  compound thereof which by the admixture of such denaturing
    19  material or materials is rendered unfit for use as a beverage.
    20     "Denaturing plant" shall mean and include the premises of a
    21  distillery used exclusively for the denaturization of alcohol,
    22  either specially or completely, by the admixture of such
    23  denaturing materials as shall render the alcohol or any compound
    24  in which it is authorized to be used unfit for use as a
    25  beverage.
    26     "Distillery" shall mean and include any premises or plant
    27  wherein alcohol or liquor is manufactured, made and distilled
    28  from raw materials, blended or rectified, or any place wherein
    29  alcohol or liquor is produced by any method suitable for the
    30  production of alcohol. The term shall not include a "winery"
    19870H1000B1735                 - 13 -

     1  where alcohol is derived from by-products of wine production by
     2  distillation for the sole purpose of adding to the fermented
     3  products to fortify the same.
     4     "Distillery Bonded Warehouse Certificate" shall mean a
     5  certificate, receipt, contract or other document given upon the
     6  storage of whiskey or any other potable distilled spirits,
     7  except ethyl alcohol, in a bonded warehouse, and evidencing the
     8  ownership of such whiskey or other potable distilled spirits.
     9     "Distillery certificate broker" shall mean and include every
    10  person who engages directly or through an agent in selling,
    11  purchasing, exchanging, offering for sale or delivery, or
    12  entering into agreements for the purchase, sale or exchange, or
    13  soliciting subscriptions to or orders for, or undertaking to
    14  dispose of, or dealing in any manner in, distillery bonded
    15  warehouse certificates.
    16     "Distributor" shall mean any person licensed by the [board]    <--
    17  commission to engage in the purchase only from Pennsylvania
    18  manufacturers and from importing distributors and the resale of
    19  malt or brewed beverages, except to importing distributors and
    20  distributors, in the original sealed containers as prepared for
    21  the market by the manufacturer at the place of manufacture, but
    22  not for consumption on the premises where sold, and in
    23  quantities of not  less than a case of twenty-four containers,
    24  each container holding seven fluid ounces or more, or a case of
    25  twelve containers, each container holding twenty-four fluid
    26  ounces or more, except original containers containing one
    27  hundred twenty-eight ounces or more which may be sold
    28  separately.
    29     "Eating place" shall mean a premise where food is regularly
    30  and customarily prepared and sold, having a total area of not
    19870H1000B1735                 - 14 -

     1  less than three hundred square feet available to the public in
     2  one or more rooms, other than living quarters, and equipped with
     3  tables and chairs accommodating thirty persons at one time.
     4     "Enforcement bureau" shall mean the Bureau of Liquor Control
     5  Enforcement of the Pennsylvania State Police.
     6     "Golf course" shall mean a course having a minimum of nine
     7  holes and a total length of at least twenty-five hundred yards.
     8  The term includes a privately-owned private golf course.
     9     "Hotel" shall mean any reputable place operated by
    10  responsible persons of good reputation where the public may, for
    11  a consideration, obtain sleeping accommodations and meals and
    12  which, in a city, has at least ten, and in any other place at
    13  least six, permanent bedrooms for the use of guests, a public
    14  dining room or rooms operated by the same management
    15  accommodating at least thirty persons at one time, and a
    16  kitchen, apart from the public dining room or rooms, in which
    17  food is regularly prepared for the public.
    18     "Importing distributor" shall mean any person licensed by the
    19  [board] commission to engage in the purchase from manufacturers   <--
    20  and other persons located outside this Commonwealth and from
    21  persons licensed as manufacturers of malt or brewed beverages
    22  and importing distributors under this act, and the resale of
    23  malt or brewed beverages in the original sealed containers as
    24  prepared for the market by the manufacturer at the place of
    25  manufacture, but not for consumption on the premises where sold,
    26  and in quantities of not less than a case of twenty-four
    27  containers, each container holding seven fluid ounces or more,
    28  or a case of twelve containers, each container holding twenty-
    29  four fluid ounces or more, except original containers containing
    30  one hundred twenty-eight ounces or more which may be sold
    19870H1000B1735                 - 15 -

     1  separately.
     2     "Limited Winery" shall mean a winery with a maximum output of
     3  one hundred thousand (100,000) gallons per year.
     4     "Liquor" shall mean and include any alcoholic, spirituous,
     5  vinous, fermented or other alcoholic beverage, or combination of
     6  liquors and mixed liquor a part of which is spirituous, vinous,
     7  fermented or otherwise alcoholic, including all drinks or
     8  drinkable liquids, preparations or mixtures, and reused,
     9  recovered or redistilled denatured alcohol usable or taxable for
    10  beverage purposes which contain more than one-half of one per
    11  cent of alcohol by volume, except pure ethyl alcohol and malt or
    12  brewed beverages.
    13     "Malt or Brewed Beverages" means any beer, lager beer, ale,
    14  porter or similar fermented malt beverage containing one-half of
    15  one per centum or more of alcohol by volume, by whatever name
    16  such beverage may be called.
    17     "Manufacture", when the term is applied to malt or brewed
    18  beverages, shall mean and include all means, methods and
    19  processes used, employed and made use of, to produce, make and
    20  manufacture for commercial purposes, malt or brewed beverages
    21  from raw materials; when applied otherwise, it shall mean and
    22  include all means, methods and processes used, employed and made
    23  use of, to produce and make alcohol or liquor from raw
    24  materials, and shall mean and include rectification and blending
    25  of alcohol and liquor, the production, recovery or reuse of
    26  alcohol in the making, developing, using in the process of
    27  manufacture, denaturing, redistilling or recovering of any
    28  alcohol or liquor in distilleries, denaturing plants and
    29  wineries.
    30     "Manufacturer" shall mean any person, association or
    19870H1000B1735                 - 16 -

     1  corporation engaged in the producing, manufacturing, distilling,
     2  rectifying or compounding of liquor, alcohol or malt or brewed
     3  beverages in this Commonwealth or elsewhere.
     4     "Manufacturer of malt or brewed beverages" shall mean any
     5  person holding a license issued by the [board] commission to      <--
     6  engage in the manufacture, transportation and sale of malt or
     7  brewed beverages; also, any person engaged in the legal
     8  manufacture of malt or brewed beverages within the territorial
     9  limits of the United States, outside the Commonwealth of
    10  Pennsylvania.
    11     "Municipality" shall mean any city, borough, incorporated
    12  town, or township of this Commonwealth.
    13     "Original container" shall mean all bottles, casks, kegs or
    14  other suitable containers that have been securely capped, sealed
    15  or corked by the manufacturer  of malt or brewed beverages at
    16  the place of manufacture, with the name and address of the
    17  manufacturer of the malt or brewed beverages contained or to be
    18  contained therein permanently affixed to the bottle, cask, keg
    19  or other container, or in the case of a bottle or can, to the
    20  cap or cork used in sealing the same or to a label securely
    21  affixed to a bottle or can.
    22     "Package" shall mean any container or containers or
    23  receptacle or receptacles used for holding liquor or alcohol as
    24  marketed by the manufacturer.
    25     "Performing arts facilities" shall mean those halls or
    26  theaters in which live musical, concert, dance, ballet and
    27  legitimate play book-length productions are performed.
    28  Performing arts facilities shall not mean those halls or
    29  theaters in which burlesque shows or reviews are performed.
    30     "Person" shall mean a natural person, association or
    19870H1000B1735                 - 17 -

     1  corporation. Whenever used in a clause prescribing or imposing a
     2  fine or imprisonment or both,the term "person", as applied to
     3  "association", shall mean the partners or members thereof, and
     4  as applied to "corporation", shall mean the officers thereof,
     5  except, as to incorporated clubs, the term "person" shall mean
     6  such individual  or individuals who, under the by-laws of such
     7  club, shall have jurisdiction over the possession and sale of
     8  liquor therein.
     9     "Population" shall mean the number of inhabitants as
    10  determined by the last preceding decennial census of the United
    11  States, or by any other census subsequently taken by the census
    12  bureau of the United States and so certified by it: Provided,
    13  however, That such other census shall not be a basis for the
    14  fixing of license fees as provided in article IV. sections 405
    15  and 439.
    16     "Potable distilled spirits" shall mean and include any
    17  distillate from grains, wine, fruits, vegetables or molasses,
    18  except ethyl alcohol, capable of being used for beverage
    19  purposes.
    20     "Regulation" shall mean any regulation prescribed by the
    21  [board] commission for carrying out the provisions of this act.   <--
    22     "Restaurant" shall mean a reputable place operated by
    23  responsible persons of good reputation and habitually and
    24  principally used for the purpose of providing food for the
    25  public, the place to have an area within a building of not less
    26  than four hundred square feet, equipped with tables and chairs
    27  accommodating at least thirty persons at one time.
    28     "Retail dispenser" shall mean any person licensed to engage
    29  in the retail sale of malt or brewed beverages for consumption
    30  on the premises of such licensee, with the privilege of selling
    19870H1000B1735                 - 18 -

     1  malt or brewed beverages in quantities not in excess of one
     2  hundred forty-four fluid ounces in a single sale to one person,
     3  to be carried from the premises by the purchaser thereof.
     4     "Sale" or "Sell" shall include any transfer of liquor,
     5  alcohol or malt or brewed beverages for a consideration.
     6     "Whiskey" shall mean and include any alcoholic distillate
     7  from a fermented mash of grain, capable of being used for
     8  beverage purposes.
     9     "Winery" shall mean and include any premises and plants where
    10  any alcohol or liquor is produced by the process by which wine
    11  is produced, or premises and plants wherein liquid such as wine
    12  is produced; and shall include the manufacture by distillation
    13  of alcohol from the by-products of wine fermentation when the
    14  alcohol so derived is used solely to fortify the fermented
    15  products, under such regulations as are or may be promulgated by
    16  the proper agency of the United States Government, and such
    17  alcohol, for that purpose only, may be sold or exchanged between
    18  wineries holding permits in this Commonwealth, without
    19  restriction.
    20     Section 5.  Section 103 of the act is reenacted to read:
    21     Section 103.  Saving Clause.--The provisions of this act, so
    22  far as they are the same as those of existing laws, are intended
    23  as a continuation of such laws and not as new enactments. The
    24  repeal by this act of any act of Assembly or part thereof shall
    25  not revive any act or part thereof heretofore repealed or
    26  superseded. The provisions of this act shall not affect any act
    27  done, liability incurred or right accrued or vested, or affect
    28  any suit or prosecution pending or to be instituted to enforce
    29  any right or penalty or punish any offense under the authority
    30  of such repeal laws. All regulations and rules made and all
    19870H1000B1735                 - 19 -

     1  licenses and permits issued pursuant to any act repealed by this
     2  act shall continue with the same force and effect as if such act
     3  had not been repealed.
     4     Section 6.  Section 104 of the act is reenacted and amended    <--
     5  to read:
     6     Section 104.  Interpretation of Act.--(a)  This act shall be
     7  deemed an exercise of the police power of the Commonwealth for
     8  the protection of the public welfare, health, peace and morals
     9  of the people of the Commonwealth and to prohibit forever the
    10  open saloon, and all of the provisions of this act shall be
    11  liberally construed for the accomplishment of this purpose.
    12     (b)  The provisions of this act are severable and if any of
    13  its provisions shall be held unconstitutional the decision of
    14  the court shall not affect or impair any of the remaining
    15  provisions of this act. It is hereby declared to be the
    16  legislative intent that this act would have been adopted had
    17  such unconstitutional provisions not been included herein.
    18     (c)  Except as otherwise expressly provided, the purpose of
    19  this act is to prohibit the manufacture of and transactions in
    20  liquor, alcohol and malt or brewed beverages which take place in
    21  this Commonwealth, except by and under the control of the
    22  [board] commission as herein specifically provided, and every     <--
    23  section and provision of the act shall be construed accordingly.
    24  The provisions of this act dealing with the manufacture,
    25  importation, sale and disposition of liquor, alcohol and malt or
    26  brewed beverages within the Commonwealth through the
    27  instrumentality of the [board] commission and otherwise, provide  <--
    28  the means by which such control shall be made effective. This
    29  act shall not be construed as forbidding, affecting or
    30  regulating any transaction which is not subject to the
    19870H1000B1735                 - 20 -

     1  legislative authority of this Commonwealth.
     2     (d)  Any reference in this act to the provisions of law on
     3  any subject shall apply to statutes becoming effective after the
     4  effective date of this act as well as to those then in
     5  existence.
     6     (e)  Section headings shall not be taken to govern or limit
     7  the scope of the sections of this act. The singular shall
     8  include the plural and the masculine shall include the feminine
     9  and the neuter.
    10     Section 7.  The heading of Article II of the act is reenacted
    11  and amended to read:                                              <--
    12                            ARTICLE II.
    13                [PENNSYLVANIA LIQUOR CONTROL BOARD]                 <--
    14                  ALCOHOLIC BEVERAGES COMMISSION.
    15     Section 8.  Section 201 of the act, amended November 23, 1976
    16  (P.L.1123, No.235), is reenacted and amended to read:
    17     Section 201.  Appointment of Members; Terms; Salaries.--An
    18  independent administrative [board] commission to be known as the  <--
    19  "[Pennsylvania Liquor Control Board] Alcoholic Beverages          <--
    20  Commission" is hereby created. The [board] commission shall       <--
    21  consist of three members to be appointed by the Governor by and
    22  with the advice and consent of [two-thirds] a majority of all     <--
    23  the members of the Senate[. Of the [original] members first       <--
    24  appointed after the effective date of this amendatory act, one
    25  shall be appointed for a term of two years, one for a term of
    26  four years, and one for a term of six years [from the date of     <--
    27  his appointment and until his successor shall have been
    28  appointed and qualified]. Thereafter, all appointments shall be   <--
    29  for terms of six years [or until successors are appointed and     <--
    30  qualified], NOT MORE THAN TWO OF WHOM SHALL BE FROM THE SAME      <--
    19870H1000B1735                 - 21 -

     1  POLITICAL PARTY AS THE GOVERNOR. THE APPOINTMENT OF A MEMBER NOT
     2  OF THE GOVERNOR'S POLITICAL PARTY SHALL BE MADE FROM A LIST
     3  PREPARED AND SUBMITTED TO THE GOVERNOR BY THE LEADER OF THE
     4  OPPOSITION PARTY TO THE GOVERNOR IN THE HOUSE OF REPRESENTATIVES
     5  AND THE SENATE. EACH FLOOR LEADER MAY CONTRIBUTE AT LEAST THREE
     6  NAMES TO THE LIST. THE GOVERNOR SHALL SELECT A MEMBER FROM THE
     7  LIST WITHIN THIRTY DAYS OF RECEIPT OF THE LIST, OR THE GOVERNOR
     8  MAY REQUEST ONE SUBSTITUTE LIST OF NOMINEES FROM THE FLOOR
     9  LEADERS. IF THE FLOOR LEADERS FAIL TO SUBMIT A SUBSTITUTE LIST
    10  WITHIN THIRTY DAYS OF RECEIPT OF A REQUEST TO DO SO, THE
    11  GOVERNOR MAY APPOINT THE MEMBER FOR WHICH LISTS OF NOMINEES WERE
    12  NOT SUBMITTED AT HIS DISCRETION. IF ONE OF THE TWO FLOOR LEADERS
    13  RESPONSIBLE FOR THE SUBMISSION OF NOMINEES FOR A LIST FAILS TO
    14  SUBMIT NOMINEES, THE GOVERNOR SHALL ACT UPON THE NOMINEES
    15  SUBMITTED BY THE OTHER FLOOR LEADER AS IF NOMINEES HAD BEEN
    16  RECEIVED FROM BOTH FLOOR LEADERS. IF THE GOVERNOR FAILS TO
    17  SELECT A MEMBER FROM THE LIST OF NOMINEES WITHIN THIRTY DAYS OF
    18  RECEIPT OF THE LIST AND FAILS TO REQUEST A SUBSTITUTE LIST, OR
    19  FAILS TO SELECT A MEMBER FROM THE SUBSTITUTE LIST WITHIN THIRTY
    20  DAYS OF RECEIPT OF THE LIST, THE FLOOR LEADERS WHO PREPARED THE
    21  LIST MAY APPOINT A MEMBER TO SERVE ON THE COMMISSION BOARD.       <--
    22  WHENEVER A VACANCY OCCURS PRIOR TO THE COMPLETION OF THE TERM OF
    23  OFFICE OF A MEMBER APPOINTED PURSUANT TO THIS SECTION, THE SAME
    24  PROCEDURE AS THAT USED TO APPOINT THE MEMBER WHOSE SEAT HAS
    25  BECOME VACANT SHALL BE USED TO NOMINATE A REPLACEMENT FOR THE
    26  REMAINDER OF THE UNEXPIRED TERM. OF THE MEMBERS FIRST APPOINTED
    27  AFTER THE EFFECTIVE DATE OF THIS AMENDATORY ACT: ONE MEMBER
    28  SHALL SERVE A TERM OF THREE YEARS; ONE MEMBER SHALL SERVE A TERM
    29  OF FOUR YEARS; AND ONE MEMBER SHALL SERVE A TERM OF FIVE YEARS.
    30  SUBSEQUENT TERMS SHALL BE FOR FOUR YEARS, ENDING ON THE THIRD
    19870H1000B1735                 - 22 -

     1  TUESDAY IN MAY. No member upon the expiration of his term shall
     2  continue to hold office until his successor shall be duly
     3  appointed or shall be AND qualified. Each of the members shall    <--
     4  receive an annual salary of [twenty-four thousand dollars
     5  ($24,000), except the chairman, who shall receive an annual
     6  salary of twenty-five thousand dollars ($25,000)] thirty-five
     7  thousand dollars ($35,000), EXCEPT THE CHAIRMAN, WHO SHALL        <--
     8  RECEIVE AN ANNUAL SALARY OF THIRTY-SEVEN THOUSAND FIVE HUNDRED
     9  DOLLARS ($37,500).
    10     Section 9.  Sections 202, 203, 204, 205 and 206 of the act
    11  are reenacted and amended OR REENACTED to read:                   <--
    12     Section 202.  Qualifications of Members.--(a)  Each member of
    13  the [board] commission at the time of his appointment and         <--
    14  qualification shall be a citizen of the United States and a
    15  resident of the Commonwealth of Pennsylvania, shall have been a
    16  qualified elector in the Commonwealth for a period of at least
    17  one year next preceding his appointment, and shall be not less
    18  than [thirty] twenty-one years of age.
    19     (b)  No member of the [board] commission during his period of  <--
    20  service as such shall hold any other office under the laws of
    21  this Commonwealth or of the United States.
    22     (c)  Commission members shall devote full time to their        <--
    23  official duties. No commission member shall hold any office or
    24  position the duties of which are incompatible with his
    25  commission duties or be engaged in any employment or vocation
    26  for which he receives any remuneration.
    27     (C)  NO BOARD MEMBER SHALL HOLD ANY OFFICE OR POSITION, THE    <--
    28  DUTIES OF WHICH ARE INCOMPATIBLE WITH HIS OR HER BOARD DUTIES.
    29     Section 203.  Chairman of [Board] Commission.--[The board      <--
    30  shall elect one of its members as  chairmen] (a)  The Governor
    19870H1000B1735                 - 23 -

     1  shall designate one of the commission members as chairman who
     2  shall serve in that position at the pleasure of the Governor.
     3  The chairman shall, when present, preside at all meetings, and
     4  in his absence a member designated by the chairman shall
     5  preside.
     6     (b)  Two members of the [board] commission shall constitute a  <--
     7  quorum, and any action or order  of the [board] commission shall  <--
     8  require the approval of at least two members.
     9     Section 204.  [Secretary of Board.--The board may appoint a    <--
    10  secretary to hold office at its pleasure. The secretary, if
    11  appointed, shall have such powers and shall perform such duties
    12  not contrary to law as the board shall prescribe, and shall
    13  receive such compensation as the board, with the approval of the
    14  Governor, shall determine. The secretary shall have power and
    15  authority to designate, from time to time, one of the clerks
    16  appointed by the board to perform the duties of the secretary
    17  during his absence and the clerk so appointed shall exercise,
    18  for the time so designated, the powers of the secretary of the
    19  board.] Executive Director.--The commission shall appoint an      <--
    20  executive director and professional management personnel,
    21  including bureau directors, as necessary. The salary of the
    22  executive director shall be thirty-four thousand dollars
    23  ($34,000) annually and the salaries of the other professional
    24  personnel shall be set by the commission, with the approval of
    25  the Governor. The executive director shall be responsible for
    26  managing the daily operations of the commission and shall have
    27  such powers and perform such duties not contrary to law as are
    28  necessary to implement decisions and policies made and
    29  established by vote of a majority of the commission.
    30     Section 205.  Bonds Required of Members and [Secretary]        <--
    19870H1000B1735                 - 24 -

     1  Executive Director.--Before entering upon the duties of their
     2  respective offices or positions, each member of the [board]       <--
     3  commission and the [secretary] executive director shall execute   <--
     4  and file with the State Treasurer a bond in such penal sum as
     5  shall be fixed by the Executive Board of this Commonwealth upon
     6  recommendation of the Governor, but the amount of any such bond
     7  shall not be less than ten thousand dollars ($10,000). Bonds in
     8  such penal sums as shall be fixed by the Executive Board
     9  likewise shall be executed and filed with the State Treasurer by
    10  such employes of the [Pennsylvania Liquor Control Board]
    11  commission BOARD as the head of such [board] commission shall,    <--
    12  with the approval of the Executive Board, prescribe. Such bonds
    13  shall be payable to the Commonwealth of Pennsylvania and shall
    14  be conditioned for the faithful performance of the members',
    15  [secretary's] executive director's or employes' duties imposed    <--
    16  by law or by lawful authority and that the person bonded will
    17  not knowingly violate the provisions of this act. All bonds
    18  required to be given under this section shall, before being
    19  accepted by the State Treasurer, be approved by the [Department
    20  of Justice] Attorney General, and unless the Commonwealth shall
    21  establish its own indemnity fund, all such bonds shall be given
    22  with security approved by the [Department of Justice] Attorney
    23  General. If the Commonwealth shall establish its own indemnity
    24  fund, the Executive Board may, nevertheless, require any bond
    25  given hereunder to be executed by a surety or sureties
    26  satisfactory to the [Department of Justice] Attorney General.
    27  The cost of such bonds required to be executed by a surety or
    28  sureties shall be borne by the [board] commission as part of its  <--
    29  operating expense.
    30     Section 206.  [Board] Commission Subject to Administrative     <--
    19870H1000B1735                 - 25 -

     1  Code.--Except as otherwise expressly provided by law, the
     2  [board] commission shall be subject to all the provisions of The  <--
     3  Administrative Code of one thousand nine hundred twenty-nine, as
     4  amended, which apply generally to independent administrative
     5  boards and commissions.
     6     Section 9.1.  The act is amended by adding a section to read:
     7     Section 206.1.  Commission BOARD AND ENFORCEMENT BUREAU        <--
     8  Subject to State Ethics and Adverse Interest Acts.--(a)  Except
     9  to the extent that the penalties provided in section 210 of this
    10  act for violations are more stringent, the commission BOARD, its  <--
    11  members and all of its employes AND EMPLOYES OF THE ENFORCEMENT   <--
    12  BUREAU shall be subject to the act of October 4, 1978 (P.L.883,
    13  No.170), referred to as the Public Official and Employee Ethics
    14  Law, and the act of July 19, 1957 (P.L.1017, No.451), known as
    15  the "State Adverse Interest Act."
    16     (b)  Membership on the commission BOARD and employment or      <--
    17  continued employment as an employe of the commission BOARD OR     <--
    18  ENFORCEMENT BUREAU is conditioned upon compliance with all of
    19  the provisions of the acts specified in subsection (a),
    20  including, but not limited to, the filing of statements of
    21  financial interests required by section 5 of the "Public
    22  Official and Employee Ethics Law." Acceptance or retention of
    23  employment shall be deemed as voluntary consent to submit to the
    24  financial reporting requirements of the "Public Official and
    25  Employee Ethics Law" as a condition of employment. Failure to
    26  timely comply with the requirements shall result in immediate
    27  termination of employment.
    28     Section 10.  Section 207 of the act, amended May 25, 1956
    29  (1955 P.L.1743,No.583), January 13, 1966 (1965 P.L.1301,
    30  No.518), June 17, 1971 (P.L.180, No.22) and July 27, 1973
    19870H1000B1735                 - 26 -

     1  (P.L.247, No.70), is reenacted and amended to read:
     2     Section 207.  General Powers of [Board] Commission.--Under     <--
     3  this act, the [board] commission shall have the power and its     <--
     4  duty shall be:
     5     (a)  To buy, import or have in its possession for sale, and
     6  sell liquor and alcohol in the manner set forth in this act:
     7  Provided, however, That all purchases shall be made subject to
     8  the approval of the State Treasurer, or his designated deputy.
     9  The commission BOARD shall buy liquor and alcohol at the lowest   <--
    10  price and in the greatest variety reasonably obtainable.
    11     (b)  To control the manufacture, possession, sale,
    12  consumption, importation, use, storage, transportation and
    13  delivery of liquor, alcohol and malt or brewed beverages in
    14  accordance with the provisions of this act, and to fix the
    15  wholesale and retail prices at which liquors and alcohol shall
    16  be sold at Pennsylvania Liquor Stores[: Provided, That in fixing
    17  the sale prices, the board shall not give any preference or make
    18  any discrimination as to classes, brands or otherwise, except to
    19  the extent and for the length of time necessary to sell such
    20  classes or brands in compliance with any Federal action freezing
    21  or otherwise controlling the price of said classes or brands, or
    22  except where special sales are deemed necessary to move
    23  unsaleable merchandise, or except where the addition of a
    24  service or handling charge to the fixed sales price of any
    25  merchandise in the same comparable price bracket, regardless of
    26  class, brand or otherwise, is, in the opinion of the board,
    27  required for the efficient operation of the State store system].
    28  Prices shall be proportional with prices paid by the commission   <--
    29  BOARD to its suppliers and shall reflect any advantage obtained   <--
    30  through volume purchases by the commission BOARD. The commission  <--
    19870H1000B1735                 - 27 -

     1  BOARD may establish a preferential price structure for wines      <--
     2  produced within this Commonwealth for the promotion of such
     3  wines, as long as the price structure is uniform within each
     4  class of wine purchased by the commission BOARD. The [board]      <--
     5  commission shall require each Pennsylvania manufacturer and each
     6  nonresident manufacturer of liquors, other than wine, selling
     7  such liquors to the [board] commission, which are not             <--
     8  manufactured in this Commonwealth, to make application for and
     9  be granted a permit by the [board] commission before such         <--
    10  liquors not manufactured in this Commonwealth shall be purchased
    11  from such manufacturer. Each such manufacturer shall pay for
    12  such permit a fee which, in the case of a manufacturer of this
    13  Commonwealth, shall be equal to that required to be paid, if
    14  any, by a manufacturer or wholesaler of the state, territory or
    15  country of origin of the liquors, for selling liquors
    16  manufactured in Pennsylvania, and in the case of a nonresident
    17  manufacturer, shall be equal to that required to be paid, if
    18  any, in such state, territory or country by Pennsylvania
    19  manufacturers doing business in such state, territory or
    20  country. In the event that any such manufacturer shall, in the
    21  opinion of the [board] commission, sell or attempt to sell        <--
    22  liquors to the [board] commission through another person for the  <--
    23  purpose of evading this provision relating to permits, the
    24  [board] commission shall require such person, before purchasing   <--
    25  liquors from him or it, to take out a permit and pay the same
    26  fee as hereinbefore required to be paid by such manufacturer.
    27  All permit fees so collected shall be paid into The State Stores
    28  Fund. The [board] commission shall not purchase any alcohol or    <--
    29  liquor fermented, distilled, rectified, compounded or bottled in
    30  any state, territory or country, the laws of which result in
    19870H1000B1735                 - 28 -

     1  prohibiting the importation therein of alcohol or liquor,
     2  fermented, distilled, rectified, compounded or bottled in
     3  Pennsylvania.
     4     (c)  To determine the municipalities within which
     5  Pennsylvania Liquor Stores shall be established and the
     6  locations of the stores within such municipalities.
     7     (d)  To grant and issue all licenses and to grant, issue,
     8  suspend and revoke all [licenses and] permits authorized to be
     9  issued under this act and the regulations of the [board and       <--
    10  impose fines on licensees licensed under this act] commission.    <--
    11     (e)  Through the Department of [Property and Supplies]
    12  General Services as agent, to lease and furnish and equip such
    13  buildings, rooms and other accommodations as shall be required
    14  for the operation of this act.
    15     (f)  To appoint, fix the compensation and define the powers
    16  and duties of such managers, officers, inspectors, [examiners,]
    17  clerks and other employes as shall be required for the operation
    18  of this act, subject to the provisions of The Administrative
    19  Code of 1929 and the Civil Service Act.
    20     (g)  To determine the nature, form and capacity of all
    21  packages and original containers to be used for containing
    22  liquor, alcohol or malt or brewed beverages.
    23     (h)  Without in any way limiting or being limited by the
    24  foregoing, to do all such things and perform all such acts as
    25  are deemed necessary or advisable for the purpose of carrying
    26  into effect the provisions of this act and the regulations made
    27  thereunder.
    28     (i)  From time to time, to make such regulations not
    29  inconsistent with this act as it may deem necessary for the
    30  efficient administration of this act. The [board] commission      <--
    19870H1000B1735                 - 29 -

     1  shall cause such regulations to be published and disseminated
     2  throughout the Commonwealth in such manner as it shall deem
     3  necessary and advisable or as may be provided by law. Such
     4  regulations adopted by the [board] commission shall have the      <--
     5  same force as if they formed a part of this act.
     6     (j)  [To investigate, whenever any person complains, or when
     7  the board is aware that there is reasonable grounds to believe
     8  liquor or malt or brewed beverage is being sold on premises not
     9  licensed under the provisions of this act. If the investigation
    10  produces evidence of the unlawful sale of liquor or malt or
    11  brewed beverage or of any other violation of the provisions of
    12  this act, the board shall cause the prosecution of the person or
    13  persons believed to have been criminally liable for the unlawful
    14  acts. Any equipment or appurtenances actually used in the
    15  commission of the unlawful acts may be confiscated upon
    16  direction of the board. The confiscation by or under the
    17  direction of the board shall not, in any manner, divest or
    18  impair the rights or interest of any bona fide lien holder in
    19  the equipment or appurtenances, who had no knowledge that the
    20  same was being used in violation of this act.] By regulation, to
    21  provide for the use of a computerized referral system to assist
    22  consumers in locating special items at Pennsylvania Liquor
    23  Stores; for the use of electronic transfer of funds for the
    24  purchase of liquor and alcohol at Pennsylvania Liquor Stores;
    25  and for the use of credit cards, by licensees only, for volume    <--
    26  purchases.
    27     Section 11.  Section 208 of the act, amended July 22, 1970
    28  (P.L.539, No.182) and October 11, 1972 (P.L.906, No.215), is
    29  reenacted and amended to read:                                    <--
    30     Section 208.  Specific Subjects on Which [Board] Commission    <--
    19870H1000B1735                 - 30 -

     1  May Adopt Regulations.--Subject to the provisions of this act
     2  and without limiting the general power conferred by the
     3  preceding section, the [board] commission may make regulations    <--
     4  regarding:
     5     (a)  The equipment and management of Pennsylvania Liquor
     6  Stores and warehouses in which liquor and alcohol are kept or
     7  sold, and the books and records to be kept therein.
     8     (b)  The duties and conduct of the officers and employes of
     9  the [board] commission.                                           <--
    10     (c)  The purchase, as provided in this act, of liquor and
    11  alcohol, and its supply to Pennsylvania Liquor Stores.
    12     (d)  The classes, varieties and brands of liquor and alcohol
    13  to be kept and sold in Pennsylvania Liquor Stores. In making
    14  this determination the [board] commission shall meet not less     <--
    15  than twice a year.
    16     (e)  The issuing and distribution of price lists for the
    17  various classes, varieties or brands of liquor and alcohol kept
    18  for sale by the [board] commission under this act.                <--
    19     (f)  The labeling of liquor and alcohol sold under this act
    20  and of liquor and alcohol lawfully acquired by any person prior
    21  to January first, one thousand nine hundred thirty-four.
    22     (g)  Forms to be used for the purposes of this act.
    23     (h)  The issuance of licenses and permits and the conduct,
    24  management, sanitation and equipment of places licensed or
    25  included in permits.
    26     (i)  The place and manner of depositing the receipts of
    27  Pennsylvania Liquor Stores and the transmission of balances to
    28  the Treasury Department through the Department of Revenue.
    29     (j)  The solicitation by resident or nonresident vendors of
    30  liquor from Pennsylvania licensees and other persons of orders
    19870H1000B1735                 - 31 -

     1  for liquor to be sold through the Pennsylvania Liquor Stores
     2  and, in the case of nonresident vendors, the collection
     3  therefrom of license fees for such privilege at the same rate as
     4  provided herein for importers' licenses.
     5     Section 12.  Section 209 of the act is repealed.
     6     Section 13.  Section 210 of the act is reenacted and amended
     7  to read:
     8     Section 210.  Restrictions on Members of the [Board]           <--
     9  Commission and CERTAIN Employes of Commonwealth.--(a)  A member   <--
    10  or employe of the [board] commission OR ENFORCEMENT BUREAU or a   <--
    11  member of the immediate family of a member or employe of the
    12  commission BOARD OR ENFORCEMENT BUREAU shall not be directly or   <--
    13  indirectly interested or engaged in any other business or
    14  undertaking dealing in liquor, alcohol, or malt or brewed
    15  beverages, whether as owner, part owner, partner, member of
    16  syndicate, shareholder, agent or employe, and whether for his
    17  own benefit or in a fiduciary capacity for some other person.
    18     (b)  No member or employe of the [board] commission OR         <--
    19  ENFORCEMENT BUREAU or a member of the immediate family of a
    20  member or employe of the commission BOARD OR ENFORCEMENT BUREAU   <--
    21  nor any employe of the Commonwealth shall solicit or receive,
    22  directly or indirectly, any commission, remuneration or gift
    23  whatsoever, from any person having sold, selling or offering
    24  liquor or alcohol for sale to the [board] commission for use in   <--
    25  Pennsylvania Liquor Stores.
    26     (c)  No person convicted of an infamous crime may be employed
    27  as a member or employe by the commission BOARD OR ENFORCEMENT     <--
    28  BUREAU.
    29     (d)  No member or employe of the commission BOARD OR           <--
    30  ENFORCEMENT BUREAU may use his position with the commission       <--
    19870H1000B1735                 - 32 -

     1  BOARD OR ENFORCEMENT BUREAU, or any confidential information      <--
     2  received through his position with the commission, BOARD OR       <--
     3  ENFORCEMENT BUREAU to obtain financial gain, other than
     4  compensation provided by law, for himself, a member of his
     5  immediate family or a business with which he is associated.
     6     (e)  No person may offer or give to a member or employe of
     7  the commission BOARD OR ENFORCEMENT BUREAU or a member of his     <--
     8  immediate family or a business with which he is associated, and
     9  no member or employe of the commission BOARD OR ENFORCEMENT       <--
    10  BUREAU may solicit or accept anything of value, including a
    11  gift, loan, political contribution, reward or promise of future
    12  employment, based on an understanding that the vote, official
    13  action or judgment of the member or employe of the commission     <--
    14  BOARD OR ENFORCEMENT BUREAU would be influenced thereby.          <--
    15     (f)  No member or employe of the commission BOARD OR           <--
    16  ENFORCEMENT BUREAU or a member of his immediate family or any
    17  business in which the member or employe or a member of his
    18  immediate family is a director, officer or owner or holder of
    19  stock exceeding five percent (5%) of the equity at fair market
    20  value of the business may enter into any contract valued at five
    21  hundred dollars ($500) or more to provide goods or services to
    22  the commission BOARD OR ENFORCEMENT BUREAU unless the contract    <--
    23  has been awarded to the lowest responsible bidder through an
    24  open and public process, including prior public notice and
    25  subsequent public disclosure of all proposals considered and
    26  contracts awarded.
    27     (g)  No former member or employe of the commission BOARD OR    <--
    28  ENFORCEMENT BUREAU may represent a person, with or without
    29  compensation, on any matter before the commission BOARD for one   <--
    30  year after leaving the commission BOARD.                          <--
    19870H1000B1735                 - 33 -

     1     (h)  A public officer or public official or a party officer    <--
     2  or member of the immediate family of such individuals, or a
     3  business with which such individuals or members of their
     4  immediate families are associated, must not have a financial
     5  interest in any contract valued at five hundred dollars ($500)
     6  or more to provide goods or services to the commission either
     7  during the time the person holds such office, or for two years
     8  after the person terminates such office, unless the contract is
     9  executed pursuant to the provisions of subsection (f). For
    10  purposes of this subsection, the term "financial interest" shall
    11  not include employment by, association with or ownership of a
    12  business association unless the public officer, public official,
    13  party officer or member of the immediate family or the
    14  individual owns shares of stock in the corporation in an amount
    15  in excess of five percent (5%) of the total issue for the stock
    16  of the corporation, or has an ownership interest in a
    17  noncorporate business association in an amount in excess of five
    18  percent (5%) of the total ownership of the noncorporate business
    19  association.
    20     (i) (H)  No member or employe of the commission BOARD OR       <--
    21  ENFORCEMENT BUREAU or an advisor or consultant thereto having
    22  recommended to the commission BOARD OR ENFORCEMENT BUREAU either  <--
    23  the making of a contract or a course of action of which the
    24  making of a contract is an express or implied part, may, at any
    25  time thereafter, have an adverse interest in that contract.
    26     (j) (I)  No member or employe of the commission or any         <--
    27  officer or employe of the Commonwealth or any of its political
    28  subdivisions BOARD OR ENFORCEMENT BUREAU may influence or         <--
    29  attempt to influence the making of, or supervise or deal with, a
    30  contract with the commission BOARD in which he has an adverse     <--
    19870H1000B1735                 - 34 -

     1  interest.
     2     (k) (J)  No member or employe of the commission BOARD OR       <--
     3  ENFORCEMENT BUREAU may have an adverse interest in a contract
     4  with the commission BOARD OR ENFORCEMENT BUREAU.                  <--
     5     (l) (K)  No person having an adverse interest in a contract    <--
     6  with the commission BOARD OR ENFORCEMENT BUREAU may become an     <--
     7  employe of the commission BOARD OR ENFORCEMENT BUREAU until the   <--
     8  adverse interest has been wholly divested.
     9     (m) (L)  No member or employe of the commission or any         <--
    10  officer or employe of the Commonwealth or a political
    11  subdivision BOARD OR ENFORCEMENT BUREAU, except in the            <--
    12  performance of his duties as such employe, may, for
    13  remuneration, directly or indirectly, represent a person upon a
    14  matter pending before the commission BOARD OR ENFORCEMENT         <--
    15  BUREAU.
    16     (n) (M)  (1)  Any person who violates the provisions of this   <--
    17  section shall have his employment by the commission BOARD OR      <--
    18  ENFORCEMENT BUREAU immediately terminated by the appropriate
    19  person having the power to terminate and shall be liable to the
    20  commission BOARD OR ENFORCEMENT BUREAU to reimburse the           <--
    21  commission BOARD OR ENFORCEMENT BUREAU for all compensation       <--
    22  received by him from the commission BOARD OR ENFORCEMENT BUREAU   <--
    23  while employed in violation of subsection (c).
    24     (2)  Any person who violates the provisions of subsections
    25  (b), (d) or (e) shall be guilty of a felony and, upon conviction
    26  thereof, shall be sentenced to pay a fine of not more than ten
    27  thousand dollars ($10,000) or to undergo imprisonment for not
    28  more than five (5) years, or both.
    29     (3)  Any person who violates the provisions of subsections
    30  (a) or (f) through (m) (L) shall be guilty of a misdemeanor and,  <--
    19870H1000B1735                 - 35 -

     1  upon conviction thereof, shall be sentenced to pay a fine of not
     2  more than one thousand dollars ($1,000) or to undergo
     3  imprisonment for not more than one (1) year, or both.
     4     (4)  Any person who obtains financial gain from violating any
     5  provisions of this section, in addition to any other penalty
     6  provided by law, shall pay into the accounts of the commission    <--
     7  BOARD a sum of money equal to three (3) times the financial gain  <--
     8  resulting from the violation.
     9     (5)  Any person who violates the provisions of this section
    10  shall be barred for a period of five (5) years from engaging in
    11  any business or contract with the commission, the Commonwealth    <--
    12  or a political subdivision BOARD OR ENFORCEMENT BUREAU.           <--
    13     (6)  Any employe of the Commonwealth or a political            <--
    14  subdivision or any public officer or public official who
    15  violates any of the provisions of this section shall
    16  automatically forfeit the office or employment.
    17     (7) (6)  The penalties and sanctions provided by this          <--
    18  subsection shall supersede any similar penalties and sanctions
    19  provided by the act of July 19, 1957 (P.L.1017, No.451), known
    20  as the "State Adverse Interest Act," and the act of October 4,
    21  1978 (P.L.883, No.170), referred to as the Public Official and
    22  Employee Ethics Law.
    23     (o) (N)  As used in this section, the following words and      <--
    24  phrases shall have the meanings given to them in this
    25  subsection:
    26     "Business" shall mean a corporation, partnership, sole
    27  proprietorship, firm, enterprise, franchise, association,
    28  organization, self-employed individual, holding company, joint-
    29  stock company, receivership, trust or legal entity organized for
    30  profit or as a not-for-profit corporation or organization.
    19870H1000B1735                 - 36 -

     1     "Immediate family" shall mean a parent, spouse, child,
     2  brother, sister or like relative-in-law.
     3     "Infamous crime" shall mean a violation and conviction for an
     4  offense which would disqualify an individual from holding public
     5  office pursuant to section 6 of Article II of the Constitution
     6  of Pennsylvania; a conviction WITHIN THE PRECEDING TEN (10)       <--
     7  YEARS for a violation of this section or of 18 Pa.C.S. § 4113
     8  (relating to misapplication of entrusted property and property
     9  of government or financial institutions), Ch. 47 (relating to
    10  bribery and corrupt influence), Ch. 49 (relating to
    11  falsification and intimidation), Ch. 51 (relating to obstructing
    12  governmental operations) or Ch. 53 (relating to abuse of
    13  office); or a violation of the laws of this Commonwealth or
    14  another state or the Federal Government for which an individual
    15  has been convicted within the preceding ten (10) years and which
    16  is classified as a felony.
    17     "Party officer" shall mean any of the following members or     <--
    18  officers of a political party: a member of a national committee;
    19  a chairman, vice chairman, secretary, treasurer or counsel of a
    20  State committee or member of the executive committee of a State
    21  committee; a county chairman, vice chairman, counsel, secretary
    22  or treasurer of a county committee; or a city chairman, vice
    23  chairman, counsel, secretary or treasurer of a city committee.
    24     "Public officer" shall mean a person elected to a public
    25  office of the Commonwealth or a political subdivision.
    26     "Public official" shall mean an elected or appointed official
    27  in the executive, legislative or judicial branch of the
    28  Commonwealth or a political subdivision. The term does not
    29  include members of advisory boards that have no authority to
    30  expend public funds other than reimbursement for personal
    19870H1000B1735                 - 37 -

     1  expense or to otherwise exercise the power of the Commonwealth
     2  or a political subdivision. The term does not include an
     3  appointed official who receives no compensation other than
     4  reimbursement for actual expenses.
     5     Section 14.  The act is amended by adding sections to read:
     6     Section 211.  Enforcement.--(a)  There is created within the
     7  Pennsylvania State Police a Bureau of Liquor Control Enforcement
     8  which shall be responsible for enforcing this act and any
     9  regulations promulgated pursuant thereto. Officers and
    10  investigators assigned to the bureau shall have the power and
    11  their duty shall be:
    12     (1)  To investigate whenever there are reasonable grounds to
    13  believe liquor, alcohol or malt or brewed beverages is being
    14  sold on premises not licensed under the provisions of this act.
    15  If the investigation produces evidence of the unlawful sale of
    16  liquor or malt or brewed beverages or any other violation of the
    17  provisions of this act, the officer involved in the
    18  investigation shall institute criminal proceedings against the
    19  person or persons believed to have been criminally liable, as
    20  otherwise provided by law or rule of court.
    21     (2)  To arrest on view, except in private homes, without
    22  warrant, any person actually engaged in the unlawful sale,
    23  importation, manufacture or transportation or having unlawful
    24  possession of liquor, alcohol or malt or brewed beverages
    25  contrary to the provisions of this act or any other law of this
    26  Commonwealth.
    27     (3)  Upon reasonable and probable cause, to search for and to
    28  seize, without warrant or process, except in private homes, any
    29  liquor, alcohol or malt or brewed beverages unlawfully
    30  possessed, manufactured, sold, imported or transported and any
    19870H1000B1735                 - 38 -

     1  stills, equipment, materials, utensils, vehicles, boats,
     2  vessels, animals, aircraft, or any of them, which are or have
     3  been used in the unlawful manufacture, sale, importation or
     4  transportation of the same, such liquor, alcohol, malt or brewed
     5  beverages, stills, equipment, materials, utensils, vehicles,
     6  boards BOATS, vessels, animals or aircraft so seized shall be     <--
     7  disposed of as hereinafter provided.
     8     (4)  To investigate and issue citations for any violations of
     9  this act or any laws of this Commonwealth relating to liquor,
    10  alcohol or malt or brewed beverages, or any regulations of the
    11  commission adopted pursuant to such laws or any violation of any
    12  laws of this Commonwealth or of the Federal Government, relating
    13  to the payment of taxes on liquor, alcohol or malt or brewed
    14  beverages by any licensee, his officers, servants, agents or
    15  employes.
    16     (b)  Any equipment or appurtenance actually used in the
    17  commission of the unlawful acts may be confiscated. The
    18  confiscation shall not, in any manner, divest or impair the
    19  rights or interest of any bona fide lienholder in the equipment
    20  or appurtenance.
    21     (c)  Except for up to three State Police officers who shall    <--
    22  be employed in a supervisory capacity at the State headquarters
    23  of the enforcement bureau, all other personnel of the
    24  enforcement bureau shall be civilians.
    25     (C)  THE PENNSYLVANIA STATE POLICE COMMISSIONER SHALL ASSIGN   <--
    26  STATE POLICE OFFICERS TO SUCH SUPERVISORY AND OTHER CAPACITIES
    27  IN THE ENFORCEMENT BUREAU AS HE DEEMS NECESSARY. ALL OTHER
    28  PERSONNEL OF THE ENFORCEMENT BUREAU SHALL BE CIVILIANS.
    29     (D)  THE OFFICE OF CHIEF COUNSEL FOR THE PENNSYLVANIA STATE
    30  POLICE SHALL REPRESENT THE ENFORCEMENT BUREAU IN ALL ENFORCEMENT
    19870H1000B1735                 - 39 -

     1  PROCEEDINGS BROUGHT BEFORE THE OFFICE OF ADMINISTRATIVE LAW
     2  JUDGE OR ANY OTHER ADJUDICATORY BODY.
     3     Section 212.  Office of Administrative Law Judge.--(a)  There
     4  is hereby created within the commission BOARD an autonomous       <--
     5  office to be known as the Office of Administrative Law Judge.
     6     (b)  All hearing examiners employed by the Pennsylvania        <--
     7  Liquor Control Board on the effective date of this section shall
     8  continue to serve as administrative law judges within the
     9  commission. Additional administrative law judges may be
    10  appointed by the commission, with the approval of the Governor,
    11  as the commission deems necessary for the holding of hearings
    12  required or permitted under this act.
    13     (B)  BY AND WITH THE ADVICE AND CONSENT OF A MAJORITY OF ALL   <--
    14  THE MEMBERS OF THE SENATE, THE GOVERNOR SHALL APPOINT A CHIEF
    15  ADMINISTRATIVE LAW JUDGE AND AS MANY ADMINISTRATIVE LAW JUDGES
    16  AS THE BOARD, WITH THE APPROVAL OF THE GOVERNOR, DEEMS NECESSARY
    17  FOR THE HOLDING OF HEARINGS REQUIRED OR PERMITTED UNDER THIS
    18  ACT.
    19     (c)  Administrative law judges shall preside at all
    20  licensing, citation and other enforcement hearings required or    <--
    21  permitted under this act.
    22     (d)  Administrative law judges appointed under this section    <--
    23  shall be afforded employment security as provided by the act of
    24  August 5, 1941 (P.L.752, No.286), known as the "Civil Service
    25  Act."
    26     (D)  ADMINISTRATIVE LAW JUDGES APPOINTED UNDER THIS SECTION    <--
    27  SHALL BE LEARNED IN THE LAW AND SHALL BE MEMBERS IN GOOD
    28  STANDING OF THE BAR OF THE SUPREME COURT OF PENNSYLVANIA.
    29     (e)  Compensation for the administrative law judges shall be
    30  established by the commission BOARD with the approval of the      <--
    19870H1000B1735                 - 40 -

     1  Governor.
     2     (F)  ADMINISTRATIVE LAW JUDGES SHALL DEVOTE FULL TIME TO       <--
     3  THEIR OFFICIAL DUTIES AND SHALL PERFORM NO DUTIES INCONSISTENT
     4  WITH THEIR DUTIES AND RESPONSIBILITIES AS ADMINISTRATIVE LAW
     5  JUDGES.
     6     (f) (G)  Nothing in this section or this act shall be          <--
     7  construed or intended to change or affect the terms and
     8  conditions of employment or the employment security of hearing
     9  examiners employed by the Pennsylvania Liquor Control Board       <--
    10  BOARD on the effective date of this section.                      <--
    11     Section 213.  Office of Chief Counsel.--The commission shall   <--
    12  establish an Office of Chief Counsel which shall provide legal
    13  advice on matters coming before the commission and shall
    14  represent the enforcement bureau in all enforcement proceedings
    15  brought before the Office of Administrative Law Judge. The
    16  salary of the chief counsel and the number and salaries of any
    17  deputy counsels employed by the Office of Chief Counsel shall be
    18  set by the commission with the approval of the Governor.
    19     Section 214 213.  Bureau of Consumer Relations.--The           <--
    20  commission BOARD shall establish a Bureau of Consumer Relations   <--
    21  which shall be responsible for handling all consumer complaints
    22  and suggestions. The bureau shall develop a system-wide program
    23  for investigating all complaints and suggestions and
    24  implementing improvements into the State Store system.
    25     Section 215 214.  Prohibitions.--(a)  The commission BOARD     <--
    26  may not make a contract or otherwise do business with a
    27  corporation, vendor or service contractor that has not complied
    28  with the regulatory and statutory requirements of any other
    29  administrative agency.
    30     (b)  The commission BOARD may not make a contract or           <--
    19870H1000B1735                 - 41 -

     1  otherwise do business with a transportation carrier for hire of
     2  liquor, wine or malt or brewed beverages which (carrier) has not
     3  obtained the proper permits from the Pennsylvania Public Utility
     4  Commission under 66 Pa.C.S. Ch. 25 (relating to contract carrier
     5  by motor vehicle and broker).
     6     Section 216 215.  Wine Marketing.--(a)  There is hereby        <--
     7  established within the commission BOARD the Bureau of Wine which  <--
     8  shall be responsible for the purchasing and the wholesale and
     9  retail marketing of premium wines so as to make these wines
    10  available to Pennsylvania consumers at competitive prices and in
    11  a convenient atmosphere.
    12     (b)  The management of the bureau shall be vested in a
    13  director, an assistant director for purchasing and an assistant
    14  director for marketing.
    15     (c)  The commission BOARD shall establish that at least five   <--
    16  per centum of all State stores within a metropolitan area are
    17  wine specialty stores, at which premium wine shall be sold.
    18  These stores shall not sell any distilled product. The stores     <--
    19  shall be in addition to the current number of State stores in
    20  operation in said area. THE BOARD MAY ESTABLISH THE WINE          <--
    21  SPECIALTY STORES IN LOCATIONS WHICH PROVIDE THE GREATEST
    22  CUSTOMER TRAFFIC AND THE GREATEST GROSS PROFIT TO THE BOARD.
    23  THESE LOCATIONS MAY INCLUDE ESTABLISHED RETAIL ESTABLISHMENTS.
    24  BOARD EMPLOYES SHALL STAFF THESE LOCATIONS. THE BOARD SHALL HAVE
    25  THE OPTION OF CLOSING STORES WHICH ARE UNPROFITABLE FOR TWO
    26  CONSECUTIVE FISCAL YEARS.
    27     (d)  (1)  The term "metropolitan area" as used in this
    28  section shall mean any one county or any combination of two,
    29  three or four counties contiguous and adjacent with a total
    30  population of fifty thousand or more.
    19870H1000B1735                 - 42 -

     1     (2)  The term "wine" as used in this section shall mean
     2  liquor which is fermented from grapes and other fruits, having
     3  alcoholic content of twenty-four per centum or less. The term
     4  "wine" shall not include malt or brewed beverages, nor shall
     5  wine include any products containing alcohol derived from malt,
     6  grain, cereal, molasses or cactus.
     7     Section 15.  The heading of Article III of the act is
     8  reenacted to read:
     9                            ARTICLE III.
    10                    PENNSYLVANIA LIQUOR STORES.
    11     Section 16.  Section 301 of the act, amended July 9, 1976
    12  (P.L.527, No.125), is reenacted and amended to read:
    13     Section 301.  [Board] Commission to Establish State Liquor     <--
    14  Stores.--(a)  The [board] commission shall establish, operate     <--
    15  and maintain at such places throughout the Commonwealth as it
    16  shall deem essential and advisable, stores to be known as
    17  "Pennsylvania Liquor Stores," for the sale of liquor and alcohol
    18  in accordance with the provisions of and the regulations made
    19  under this act; except that no store not so already located
    20  shall be located within three hundred feet of any elementary or
    21  secondary school, nor within a dry municipality without there
    22  first having been a referendum approving such location. When the
    23  [board] commission shall have determined upon the location of a   <--
    24  liquor store in any municipality, it shall give notice of such
    25  location by public advertisement in two newspapers of general
    26  circulation. In cities of the first class, the location shall
    27  also be posted for a period of at least fifteen days following
    28  its determination by the [board] commission as required in        <--
    29  section 403(g) of this act. The notice shall be posted in a
    30  conspicuous place on the outside of the premises in which the
    19870H1000B1735                 - 43 -

     1  proposed store is to operate or, in the event that a new
     2  structure is to be built in a similarly visible location. If,
     3  within five days after the appearance of such advertisement, or
     4  of the last day upon which the notice was posted, fifteen or
     5  more taxpayers residing within a quarter of a mile of such
     6  location, or the City Solicitor of the city of the first class,
     7  shall file a protest with the court of common pleas of the
     8  county averring that the location is objectionable because of
     9  its proximity to a church, a school, or to private residences,
    10  the court shall forthwith hold a hearing affording an
    11  opportunity to the protestants and to the [board] commission to   <--
    12  present evidence. The court shall render its decision
    13  immediately upon the conclusion of the testimony and from the
    14  decision there shall be no appeal. If the court shall determine
    15  that the proposed location is undesirable for the reasons set
    16  forth in the protest, the [board] commission shall abandon it     <--
    17  and find another location. The [board] commission may establish,  <--
    18  operate and maintain such establishments for storing and testing
    19  liquors as it shall deem expedient to carry out its powers and
    20  duties under this act.
    21     (b)  The [board] commission may lease the necessary premises   <--
    22  for such stores or establishments, but all such leases shall be
    23  made through the Department of General Services as agent of the
    24  [board] commission. The [board] commission, through the           <--
    25  Department of General Services, shall have authority to purchase
    26  such equipment and appointments as may be required in the
    27  operation of such stores or establishments.
    28     Section 17.  Sections 302 and 303 of the act are reenacted
    29  and amended to read:                                              <--
    30     Section 302.  Selection of Personnel.--Officers and employes
    19870H1000B1735                 - 44 -

     1  of the [board] commission, except as herein otherwise provided,   <--
     2  shall be appointed and employed subject to the provisions of the
     3  Civil Service Act.
     4     Section 303.  Management of Pennsylvania Liquor Stores.--
     5  Every Pennsylvania Liquor Store shall be conducted by a person
     6  appointed in the manner provided in the Civil Service Act who
     7  shall be known as the "manager" and who shall, under the
     8  directions of the [board] commission, be responsible for          <--
     9  carrying out the provisions of this act and the regulations
    10  adopted by the [board] commission under this act as far as they   <--
    11  relate to the conduct of such stores.
    12     Section 18.  Section 304 of the act, amended March 5, 1973
    13  (P.L.1, No.1), is reenacted and amended to read:
    14     Section 304.  When Sales May Be Made at Pennsylvania Liquor
    15  Stores.--Every Pennsylvania Liquor Store shall be open for
    16  business week days, except legal holidays or any day on which a
    17  general, municipal, special or primary election is being held,
    18  during such hours as the [board] commission, in its discretion,   <--
    19  shall determine[, but shall not be open longer than fourteen
    20  hours in any one day nor later than eleven o'clock
    21  postmeridian]: Provided, That the Pennsylvania Liquor Stores in
    22  the case of a special election for members of the General
    23  Assembly or members of the Congress of the United States, when
    24  such special election is held on other than a primary, municipal
    25  or general election day, shall be open in those Legislative or
    26  Congressional Districts as though the day were not a special
    27  election day. The [board] commission may, with the approval of    <--
    28  the Governor, temporarily close any store in any municipality.
    29     Section 19.  Section 305 of the act, amended October 21, 1965
    30  (P.L.642, No.316), October 11, 1972 (P.L.906, No.215), June 17,
    19870H1000B1735                 - 45 -

     1  1974 (P.L.352, No.115), October 2, 1974 (P.L.668, No.222) and
     2  October 4, 1974 (P.L.672, No.224), is reenacted and amended to
     3  read:
     4     Section 305.  Sales by Pennsylvania Liquor Stores.--(a)
     5  Every Pennsylvania Liquor Store shall keep in stock for sale
     6  such classes, varieties and brands of liquor and alcohol as the
     7  [board] commission shall prescribe. If any person shall desire    <--
     8  to purchase any class, variety or brand of liquor or alcohol
     9  which any such store does not have in stock, it shall be the
    10  duty of such store immediately to order the same upon the
    11  payment of a reasonable deposit by the purchaser in such
    12  proportion of the approximate cost of the order as shall be
    13  prescribed by the regulations of the [board] commission. NO       <--
    14  PURCHASER MAY BE REQUIRED TO PURCHASE MORE THAN TWO BOTTLES OR
    15  CONTAINERS OF THE PRODUCT, PROVIDED THAT SUCH PRODUCT IS
    16  AVAILABLE THROUGH THE STATE STORE SYSTEM. The customer shall be
    17  notified immediately upon the arrival of the goods.
    18     In computing the retail price of such special orders for
    19  liquor or alcohol, the [board] commission shall not include the   <--
    20  cost of freight or shipping before applying the mark-up and
    21  taxes but shall add the freight or shipping charges to the price
    22  after the mark-up and taxes have been applied.
    23     Unless the customer pays for and accepts delivery of any such
    24  special order within [five] TEN days after notice of arrival,     <--
    25  the store may place it in stock for general sale and the
    26  customer's deposit shall be forfeited.
    27     (b)  Every Pennsylvania Liquor Store shall sell liquors at
    28  wholesale to hotels, restaurants, clubs, and railroad, pullman
    29  and steamship companies licensed under this act; and, under the
    30  regulations of the [board] commission, to pharmacists duly        <--
    19870H1000B1735                 - 46 -

     1  licensed and registered under the laws of the Commonwealth, and
     2  to manufacturing pharmacists, and to reputable hospitals
     3  approved by the [board] commission, or chemists. The [board]      <--
     4  commission may sell to registered pharmacists only such liquors
     5  as conform to the Pharmacopoeia of the United States, the
     6  National Formulary, or the American Homeopathic Pharmacopoeia.
     7  The [board] commission may sell at special prices under the       <--
     8  regulations of the [board] commission, to United States Armed     <--
     9  Forces facilities which are located on United States Armed
    10  Forces installations and are conducted pursuant to the authority
    11  and regulations of the United States Armed Forces. All other
    12  sales by such stores shall be at retail. [No liquor shall be
    13  sold except for cash, except that the board may, by regulation,
    14  authorize the acceptance of checks for liquor sold at wholesale
    15  The shall have power to designate certain stores for wholesale
    16  or retail sales exclusively.] A person entitled to purchase
    17  liquor at wholesale prices may purchase the liquor at any
    18  Pennsylvania Liquor Store upon tendering cash, check or credit
    19  card for the full amount of the purchase. For this purpose, the
    20  commission BOARD shall issue a discount card to each licensee     <--
    21  identifying such licensee as a person authorized to purchase
    22  liquor at wholesale prices. Such discount card shall be retained
    23  by the licensee. The board may provide MAY CONTRACT THROUGH THE   <--
    24  COMMONWEALTH BIDDING PROCESS for delivery to wholesale licensees
    25  at the expense of the licensee receiving the delivery.
    26     (c)  Whenever any checks issued in payment of liquor or
    27  alcohol purchased from State Liquor Stores by persons holding
    28  wholesale purchase permit cards issued by the [board] commission  <--
    29  shall be returned to the [board] commission as dishonored, the    <--
    30  [board] commission shall charge a fee of five dollars per         <--
    19870H1000B1735                 - 47 -

     1  hundred dollars or fractional part thereof, plus all protest
     2  fees, to the maker of such check submitted to the [board]         <--
     3  commission. Failure to pay the face amount of the check in full
     4  and all charges thereon as herein required within ten days after
     5  demand has been made by the [board] commission upon the maker of  <--
     6  the check shall be cause for revocation or suspension of any
     7  license issued by the [board] commission to the person who        <--
     8  issued such check and the cancellation of the wholesale purchase
     9  permit card held by such person.
    10     (d)  No liquor or alcohol package shall be opened on the
    11  premises of a Pennsylvania Liquor Store. No manager or other
    12  employe of the [board] commission employed in a Pennsylvania      <--
    13  Liquor Store shall allow any liquor or alcohol to be consumed on
    14  the store premises, nor shall any person consume any liquor or
    15  alcohol on such premises.
    16     (e)  The [board] commission may sell tax exempt alcohol to     <--
    17  the Commonwealth of Pennsylvania and to persons to whom the
    18  [board] commission shall, by regulation to be promulgated by it,  <--
    19  issue special permits for the purchase of such tax exempt
    20  alcohol.
    21     Such permits may be issued to the United States or any
    22  governmental agency thereof, to any university or college of
    23  learning, any laboratory for use exclusively in scientific
    24  research, any hospital, sanitorium, eleemosynary institution or
    25  dispensary; to physicians, dentists, veterinarians and
    26  pharmacists duly licensed and registered under the laws of the
    27  Commonwealth of Pennsylvania; to manufacturing chemists and
    28  pharmacists or other persons for use in the manufacture or
    29  compounding of preparations unfit for beverage purposes.
    30     (f)  Every purchaser of liquor or alcohol from a Pennsylvania
    19870H1000B1735                 - 48 -

     1  Liquor Store shall receive a numbered receipt which shall show
     2  the price paid therefor, and such other information as the
     3  [board] commission may prescribe. Copies of all receipts issued   <--
     4  by a Pennsylvania Liquor Store shall be retained by and shall
     5  form part of the records of such store.
     6     (g)  The [board] commission is hereby authorized and           <--
     7  empowered to adopt and enforce appropriate rules and regulations
     8  to insure the equitable wholesale and retail sale and
     9  distribution, through the Pennsylvania Liquor Stores, of
    10  available liquor and alcohol at any time when the demand
    11  therefor is greater than the supply.
    12     (h)  Every Pennsylvania Liquor Store shall sell gift
    13  certificates which may be redeemed for liquor.
    14     Section 20.  Section 306 of the act is reenacted and amended
    15  to read:
    16     Section 306.  Audits by Auditor General.--(a)  It shall be
    17  the duty of the Department of the Auditor General to make all
    18  audits which may be necessary in connection with the
    19  administration of the financial affairs of the [board]            <--
    20  commission and the Pennsylvania Liquor Stores operated and
    21  maintained by the [board] commission. SUCH AUDITS SHALL BE        <--
    22  CONDUCTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING
    23  PRINCIPLES. NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THE
    24  AUDITOR GENERAL TO CONDUCT BIANNUAL INVENTORIES.
    25     (b)  At least one audit shall be made each year of the
    26  affairs of the [board] commission, and all collections made by    <--
    27  the Pennsylvania Liquor Stores shall be audited quarterly. A
    28  copy of the annual audit of the affairs of the commission BOARD   <--
    29  shall be submitted to each member of the General Assembly.
    30     (c)  Special audits of the affairs of the [board] commission   <--
    19870H1000B1735                 - 49 -

     1  and the Pennsylvania Liquor Stores maintained and operated by
     2  the [board] commission may be made whenever they may, in the      <--
     3  judgment of the Auditor General, appear necessary, and shall be
     4  made whenever the Governor shall call upon the Auditor General
     5  to make them.
     6     (d)  Copies of all audits made by the Department of the
     7  Auditor General shall be promptly submitted to the [board]        <--
     8  commission and to the Governor.
     9     (e)  Unless the Department of the Auditor General shall
    10  neglect or refuse to make annual, quarterly or special Audits,
    11  as hereinabove required, it shall be unlawful for the [board]     <--
    12  commission to expend any money appropriated to it by the General
    13  Assembly for any audit of its affairs, except for the payment of
    14  the compensation and expenses of such auditors as are regularly
    15  employed as part of the administrative staff of the [board]       <--
    16  commission.
    17     Section 21.  The headings of Article IV and Subdivision (A)
    18  of Article IV of the act are reenacted to read:
    19                            ARTICLE IV.
    20           LICENSES AND REGULATIONS; LIQUOR, ALCOHOL AND
    21                     MALT AND BREWED BEVERAGES.
    22       (A)  Liquor and Alcohol (Not Including Manufacturers).
    23     Section 22.  Section 401 of the act, amended June 1, 1972
    24  (P.L.355, No.95), is reenacted and amended to read:               <--
    25     Section 401.  Authority to Issue Liquor Licenses to Hotels,
    26  Restaurants and Clubs.--(a)  Subject to the provisions of this
    27  act and regulations promulgated under this act, the [board]       <--
    28  commission shall have authority to issue a retail liquor license
    29  for any premises kept or operated by a hotel, restaurant or club
    30  and specified in the license entitling the hotel, restaurant or
    19870H1000B1735                 - 50 -

     1  club to purchase liquor from a Pennsylvania Liquor Store and to
     2  keep on the premises such liquor and, subject to the provisions
     3  of this act and the regulations made thereunder, to sell the
     4  same and also malt or brewed beverages to guests, patrons or
     5  members for consumption on the hotel, restaurant or club
     6  premises. Such licensees, other than clubs, shall be permitted
     7  to sell malt or brewed beverages for consumption off the
     8  premises where sold in quantities of not more than one hundred
     9  forty-four fluid ounces in a single sale to one person. Such
    10  licenses shall be known as hotel liquor licenses, restaurant
    11  liquor licenses and club liquor licenses, respectively. No
    12  person who holds, either by appointment or election, any public
    13  office which involves the duty to enforce any of the penal laws
    14  of the United States of America or the penal laws of the
    15  Commonwealth of Pennsylvania or any penal ordinance or
    16  resolution of any political subdivision of this Commonwealth
    17  shall be issued any hotel or restaurant liquor license, nor
    18  shall such a person have any interest, directly or indirectly,
    19  in any such license.
    20     (b)  The [board] commission may issue to any club which        <--
    21  caters to groups of non-members, either privately or for
    22  functions, a catering license, and the [board] commission shall,  <--
    23  by its rules and regulations, define what constitutes catering
    24  under this subsection except that any club which is issued a
    25  catering license shall not be prohibited from catering on
    26  Sundays during the hours which the club may lawfully serve
    27  liquor, malt or brewed beverages.
    28     Section 23.  Section 402 of the act is reenacted and amended
    29  to read:
    30     Section 402.  License Districts; License Year; Hearings.--(a)
    19870H1000B1735                 - 51 -

     1  The [board] commission shall, by regulation, divide the State     <--
     2  into convenient license districts and shall hold hearings on
     3  applications for licenses and renewals thereof, as it deems
     4  necessary, at a convenient place or places in each of said
     5  districts, at such times as it shall fix, by regulation, for the
     6  purpose of hearing testimony for and against applications for
     7  new licenses and renewals thereof. The commission BOARD shall     <--
     8  hold a hearing on any application for a new hotel, club or
     9  restaurant liquor license or the transfer of any such license to
    10  a new location, upon the request of any person with standing to
    11  testify under subsection (b) if the request is filed with the
    12  commission BOARD within the first fifteen days of posting of the  <--
    13  notice of application pursuant to section 403(g). The [board]     <--
    14  commission may provide for the holding of such hearings by
    15  [examiners learned in the law, to be appointed by the Governor,   <--
    16  who shall not be subject to the "Civil Service Act."]             <--
    17  administrative law judges. Such examiners shall make A report to  <--
    18  the [board] commission in each case with their recommendations.   <--
    19  The [board] commission shall, by regulation, fix the license      <--
    20  year for each separate district so that the expiration dates
    21  shall be uniform in each of the several districts but staggered
    22  as to the State.
    23     (b)  Where a hearing is held in the case of an application
    24  for a new hotel, club or restaurant liquor license or an
    25  application for the transfer of a hotel, club or restaurant
    26  liquor license to a new location, the commission BOARD shall      <--
    27  permit residents residing within a radius of five hundred feet
    28  of the premises to testify at the hearing. The commission BOARD   <--
    29  and any hearing officer thereof shall give appropriate
    30  evidentiary weight to any testimony of such residents given at
    19870H1000B1735                 - 52 -

     1  the hearing.
     2     Section 24.  Section 403 of the act, amended November 19,
     3  1959 (P.L.1546, No.553) and September 28, 1961 (P.L.1728,
     4  No.702), is reenacted and amended to read:
     5     Section 403.  Applications for Hotel, Restaurant and Club
     6  Liquor Licenses.--(a)  Every applicant for a hotel liquor
     7  license, restaurant liquor license or club liquor license or for
     8  the transfer of an existing license to another premises not then
     9  licensed shall file a written application with the [board]        <--
    10  commission in such form and containing such information as the
    11  [board] commission shall from time to time prescribe, which       <--
    12  shall be accompanied by a filing fee of twenty dollars ($20),
    13  the prescribed license fee, and the bond hereinafter specified.
    14  Every such application shall contain a description of that part
    15  of the hotel, restaurant or club for which the applicant desires
    16  a license and shall set forth such other material information,
    17  description or plan of that part of the hotel, restaurant or
    18  club where it is proposed to keep and sell liquor as may be
    19  required by the regulations of the [board] commission. The        <--
    20  descriptions, information and plans referred to in this
    21  subsection shall show the hotel, restaurant, club, or the
    22  proposed location for the construction of a hotel, restaurant or
    23  club, at the time the application is made, and shall show any
    24  alterations proposed to be made thereto, or the new building
    25  proposed to be constructed after the approval by the [board]      <--
    26  commission of the application for a license or for the transfer
    27  of an existing license to another premises not then licensed. No
    28  physical alterations, improvements or changes shall be required
    29  to be made to any hotel, restaurant or club, nor shall any new
    30  building for any such purpose, be required to be constructed
    19870H1000B1735                 - 53 -

     1  until approval of the application for license or for the
     2  transfer of an existing license to another premises not then
     3  licensed by the [board] commission. After approval of the         <--
     4  application, the licensee shall make the physical alterations,
     5  improvements and changes to the licensed premises, or shall
     6  construct the new building in the manner specified by the
     7  [board] commission at the time of approval, and the licensee      <--
     8  shall not transact any business under the license until the
     9  [board] commission has approved the completed physical            <--
    10  alterations, improvements and changes to the licensed premises,
    11  or the completed construction of the new building as conforming
    12  to the specifications required by the [board] commission at the   <--
    13  time of issuance or transfer of the license, and is satisfied
    14  that the establishment is a restaurant, hotel or club as defined
    15  by this act. The [board] commission may require that all such     <--
    16  alterations or construction or conformity to definition be
    17  completed within six months from the time of issuance or
    18  transfer of the license. Failure to comply with these
    19  requirements shall be considered cause for revocation of the
    20  license. No such license shall be transferable between the time
    21  of issuance or transfer of the license and the approval of the
    22  completed alterations or construction by the [board] commission   <--
    23  and full compliance by the licensee with the requirements of
    24  this act, except in the case of death of the licensee prior to
    25  full compliance with all of the aforementioned requirements, in
    26  which event, the license may be transferred by the [board]        <--
    27  commission as provided in section 468 of this act for the
    28  transfer of the license in the case of death of the licensee.
    29     (b)  If the applicant is a natural person, his application
    30  must show that he is a citizen of the United States and has been
    19870H1000B1735                 - 54 -

     1  a resident of this Commonwealth for at least two years
     2  immediately preceding his application.
     3     (c)  If the applicant is a corporation, the application must
     4  show that the corporation was created under the laws of
     5  Pennsylvania or holds a certificate of authority to transact
     6  business in Pennsylvania, that all officers, directors and
     7  stockholders are citizens of the United States, and that the
     8  manager of the hotel, restaurant or club is a citizen of the
     9  United States.
    10     (d)  Each application shall be signed and verified by oath or
    11  affirmation by the owner, if a natural person, or, in the case
    12  of an association, by a member or partner thereof, or, in the
    13  case of a corporation, by an executive officer thereof or any
    14  person specifically authorized by the corporation to sign the
    15  application, to which shall be attached written evidence of his
    16  authority.
    17     (e)  If the applicant is an association, the application
    18  shall set forth the names and addresses of the persons
    19  constituting the association, and if a corporation, the names
    20  and addresses of the principal officers thereof. Every club
    21  applicant shall file with and as a part of its application a
    22  list of the names and addresses of its members, directors,
    23  officers, agents and employes, together with the dates of their
    24  admission, election or employment, and such other information
    25  with respect to its affairs as the [board] commission shall       <--
    26  require.
    27     (f)  The [board] commission shall refuse to issue licenses to  <--
    28  clubs when it appears that the operation of the licensed
    29  business would inure to the benefit of individual members,
    30  officers, agents or employes of the club, rather than to the
    19870H1000B1735                 - 55 -

     1  benefit of the entire membership of the club.
     2     (g)  Every applicant for a new license or for the transfer of
     3  an existing license [to another premises not then licensed]
     4  shall post, for a period of a least fifteen days beginning with
     5  the day the application is filed with the [board] commission, in  <--
     6  a conspicuous place on the outside of the premises or at the
     7  proposed new location for which the license is applied, a notice
     8  of such application, in such form, of such size, and containing
     9  such provisions as the [board] commission may require by its      <--
    10  regulations. Proof of the posting of such notice shall be filed
    11  with the [board] commission.                                      <--
    12     (h)  If any false statement is intentionally made in any part
    13  of the application, the affiant shall be deemed guilty of a
    14  misdemeanor and, upon conviction, shall be subject to the
    15  penalties provided by this article.
    16     (i)  Upon receipt of an application for a new license or
    17  transfer of an existing license to a new location, the
    18  commission BOARD shall immediately notify, in writing, the        <--
    19  municipality in which the premises proposed to be licensed are
    20  located.
    21     Section 25.  Section 404 of the act, amended September 2,
    22  1971 (P.L.429, No.103), is reenacted and amended to read:         <--
    23     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
    24  Licenses.--Upon receipt of the application, the proper fees and
    25  bond, and upon being satisfied of the truth of the statements in
    26  the application that the applicant is the only person in any
    27  manner pecuniarily interested in the business so asked to be
    28  licensed and that no other person will be in any manner
    29  pecuniarily interested therein during the continuance of the
    30  license, except as hereinafter permitted, and that the applicant
    19870H1000B1735                 - 56 -

     1  is a person of good repute, that the premises applied for meet
     2  all the requirements of this act and the regulations of the
     3  [board] commission, that the applicant seeks a license for a      <--
     4  hotel, restaurant or club, as defined in this act, and that the
     5  issuance of such license is not prohibited by any of the
     6  provisions of this act, the [board] commission shall, in the      <--
     7  case of a hotel or restaurant, grant and issue to the applicant
     8  a liquor license, and in the case of a club may, in its
     9  discretion, issue or refuse a license: Provided, however, That
    10  in the case of any new license or the transfer of any license to
    11  a new location the [board] commission may, in its discretion,     <--
    12  grant or refuse such new license or transfer if such place
    13  proposed to be licensed is within three hundred feet of any
    14  church, hospital, charitable institution, school, or public
    15  playground, or if such new license or transfer is applied for a
    16  place which is within two hundred feet of any other premises
    17  which is licensed by the [board] commission, or if such new       <--
    18  license or transfer is applied for a place where the principal
    19  business is the sale of liquid fuels and oil: And provided
    20  further, That the [board] commission shall refuse any             <--
    21  application for a new license or the transfer of any license to
    22  a new location if, in the [board's] commission's opinion, such    <--
    23  new license or transfer would be detrimental to the welfare,
    24  health, peace and morals of the inhabitants of the neighborhood
    25  within a radius of five hundred feet of the place proposed to be
    26  licensed: And provided further, That the [board] commission       <--
    27  shall not issue new licenses in any license district more than
    28  twice each license year, effective from specific dates fixed by
    29  the [board] commission, and new licenses shall not be granted,    <--
    30  except for hotels as defined in this act, unless the application
    19870H1000B1735                 - 57 -

     1  therefor shall have been filed at least thirty days before the
     2  effective date of the license: And provided further, That
     3  nothing herein contained shall prohibit the [board] commission    <--
     4  from issuing a new license for the balance of any unexpired term
     5  in any license district to any applicant in such district, who
     6  shall have become eligible to hold such license as the result of
     7  legislative enactment, when such enactment shall have taken
     8  place during the license term of that district for which
     9  application is made or within the thirty days immediately
    10  preceding such term, nor shall anything herein contained
    11  prohibit the [board] commission from issuing at any time a new    <--
    12  license for an airport restaurant, or municipal golf course, as
    13  defined in section 461 of this act, for the balance of the
    14  unexpired license term in any license district: And provided
    15  further, That the shall have the discretion to refuse a license
    16  to any person or to any corporation, partnership or association
    17  if such person, or any officer or director of such corporation,
    18  or any member or partner of such partnership or association
    19  shall have been convicted or found guilty of a felony within a
    20  period of five years immediately preceding the date of
    21  application for the said license.
    22     Section 26.  Section 405 of the act, amended July 18, 1961
    23  (P.L.790, No.348), is reenacted and amended to read:              <--
    24     Section 405.  License Fees.--(a)  License fees for hotel and
    25  restaurant liquor licenses shall be graduated according to the
    26  population of the municipality as determined by the last
    27  preceding decennial census of the United States in which the
    28  hotel or restaurant is located, as follows:
    29     In municipalities having a population of less than fifteen
    30  hundred inhabitants, one hundred fifty dollars ($150.00).
    19870H1000B1735                 - 58 -

     1     In municipalities, except townships, having a population of
     2  fifteen hundred and more but less than ten thousand inhabitants,
     3  and in townships having a population of fifteen hundred and more
     4  but less than twelve thousand inhabitants, two hundred dollars
     5  ($200.00).
     6     In municipalities, except townships, having a population of
     7  ten thousand and more but less than fifty thousand inhabitants,
     8  and in townships having a population of twelve thousand and more
     9  but less than fifty thousand inhabitants, three hundred dollars
    10  ($300.00).
    11     In those having a population of fifty thousand and more but
    12  less than one hundred thousand inhabitants, four hundred dollars
    13  ($400.00).
    14     In those having a population of one hundred thousand and more
    15  but less than one hundred fifty thousand inhabitants, five
    16  hundred dollars ($500.00).
    17     In those having a population of one hundred fifty thousand
    18  and more inhabitants, six hundred dollars ($600.00).
    19     (b)  Every applicant for a club liquor license shall pay to
    20  the [board] commission a license fee of fifty dollars ($50.00),   <--
    21  except clubs to which catering licenses are issued, in which
    22  cases the license fees shall be the same as for hotels and
    23  restaurants located in the same municipality.
    24     (c)  All license fees authorized under this section shall be
    25  collected by the [board] commission for the use of the            <--
    26  municipalities in which such fees were collected.
    27     (d)  Whenever any checks issued in payment of filing and/or
    28  license fees shall be returned to the [board] commission as       <--
    29  dishonored, the [board] commission shall charge a fee of five     <--
    30  dollars ($5.00) per hundred dollars, or fractional part thereof,
    19870H1000B1735                 - 59 -

     1  plus all protest fees, to the maker of such check submitted to
     2  the [board] commission. Failure to pay the face amount of the     <--
     3  check in full and all charges thereon as herein required within
     4  ten days after demand has been made by the [board] commission     <--
     5  upon the maker of the check, the license of such person, if
     6  issued, shall immediately terminate and be cancelled without any
     7  action on the part of the [board] commission.                     <--
     8     Section 27.  Section 406 of the act, amended September 2,
     9  1971 (P.L.429, No.103), December 17, 1982 (P.L.1390, No.319),
    10  May 9, 1984 (P.L.246, No.54) and February 28, 1985 (P.L.1,
    11  No.1), is reenacted and amended to read:                          <--
    12     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
    13  (1)  Every hotel, restaurant or club liquor licensee may sell
    14  liquor and malt or brewed beverages by the glass, open bottle or
    15  other container, and in any mixture, for consumption only in
    16  that part of the hotel or restaurant habitually used for the
    17  serving of food to guests or patrons, or in a bowling alley that
    18  is immediately adjacent to and under the same roof as a
    19  restaurant when no minors are present, unless minors who are
    20  present are under proper supervision as defined in section 493,
    21  in the bowling alley, and in the case of hotels, to guests, and
    22  in the case of clubs, to members, in their private rooms in the
    23  hotel or club. No club licensee nor its officers, servants,
    24  agents or employes, other than one holding a catering license,
    25  shall sell any liquor or malt or brewed beverages to any person
    26  except a member of the club. In the case of a restaurant located
    27  in a hotel which is not operated by the owner of the hotel and
    28  which is licensed to sell liquor under this act, liquor and malt
    29  or brewed beverages may be sold for consumption in that part of
    30  the restaurant habitually used for the serving of meals to
    19870H1000B1735                 - 60 -

     1  patrons and also to guests in private guest rooms in the hotel.
     2  For the purpose of this paragraph, any person who is an active
     3  member of another club which is chartered by the same state or
     4  national organization shall have the same rights and privileges
     5  as members of the particular club. For the purpose of this
     6  paragraph, any person who is an active member of any volunteer
     7  firefighting company, association or group of this Commonwealth,
     8  whether incorporated or unincorporated, shall upon the approval
     9  of any club composed of volunteer firemen licensed under this
    10  act, have the same social rights and privileges as members of
    11  such licensed club. For the purposes of this paragraph, the term
    12  "active member" shall not include a social member.
    13     (2)  Hotel and restaurant liquor licensees, airport
    14  restaurant liquor licensees, municipal golf course restaurant
    15  liquor licensees and privately-owned public golf course
    16  restaurant licensees may sell liquor and malt or brewed
    17  beverages only after seven o'clock antemeridian of any day until
    18  two o'clock antemeridian of the following day, except Sunday,
    19  and except as hereinafter provided, may sell liquor and malt or
    20  brewed beverages on Sunday between the hours of twelve o'clock
    21  midnight and two o'clock antemeridian.
    22     (3)  Hotel and restaurant liquor licensees, airport
    23  restaurant liquor licensees, municipal golf course restaurant
    24  liquor licensees and privately-owned public golf course
    25  restaurant licensees whose sales of food and nonalcoholic
    26  beverages are equal to forty per centum or more of the combined
    27  gross sales of both food and alcoholic beverages may sell liquor
    28  and malt or brewed beverages on Sunday between the hours of
    29  eleven o'clock antemeridian and two o'clock antemeridian Monday
    30  upon purchase of a special annual permit from the [board]         <--
    19870H1000B1735                 - 61 -

     1  commission at a fee of two hundred dollars ($200.00) per year,
     2  which shall be in addition to any other license fees.
     3     (4)  Hotel and restaurant liquor licensees, airport
     4  restaurant liquor licensees, municipal golf course restaurant
     5  liquor licensees and privately-owned public golf course
     6  restaurant licensees which do not qualify for and purchase such
     7  annual special permit, their servants, agents or employes may
     8  sell liquor and malt or brewed beverages only after seven
     9  o'clock antemeridian of any day and until two o'clock
    10  antemeridian of the following day, and shall not sell after two
    11  o'clock antemeridian on Sunday. No hotel, restaurant and public
    12  service liquor licensee which does not have the special annual
    13  permit for Sunday sales shall sell liquor and malt or brewed
    14  beverages after two o'clock antemeridian on any day on which a
    15  general, municipal, special or primary election is being held
    16  until one hour after the time fixed by law for closing the
    17  polls, except, that, in the case of a special election for
    18  members of the General Assembly or members of the Congress of
    19  the United States, when such special election is held on other
    20  than a primary, municipal or general election day, licensees in
    21  those Legislative or Congressional Districts may make such
    22  sales, as though the day were not a special election day. No
    23  club licensee or its servants, agents or employes may sell
    24  liquor or malt or brewed beverages between the hours of three
    25  o'clock antemeridian and seven o'clock antemeridian on any day.
    26  No public service liquor licensee or its servants, agents, or
    27  employes may sell liquor or malt or brewed beverages between the
    28  hours of two o'clock antemeridian and seven o'clock antemeridian
    29  on any day.
    30     (5)  Any hotel, restaurant, club or public service liquor
    19870H1000B1735                 - 62 -

     1  licensee may, by giving notice to the [board] commission,         <--
     2  advance by one hour the hours herein prescribed as those during
     3  which liquor and malt or brewed beverages may be sold during
     4  such part of the year when daylight saving time is being
     5  observed generally in the municipality in which the place of
     6  business of such licensee is located. Any licensee who elects to
     7  operate his place of business in accordance with daylight saving
     8  time shall post a conspicuous notice in his place of business
     9  that he is operating in accordance with daylight saving time.
    10     (6)  Notwithstanding any provisions to the contrary, whenever
    11  the thirty-first day of December or Saint Patrick's Day falls on
    12  a Sunday, every hotel or restaurant liquor licensee, their
    13  servants, agents or employes may sell liquor and malt or brewed
    14  beverages on any such day after one o'clock postmeridian and
    15  until two o'clock antemeridian of the following day.
    16     (b)  Such Sunday sales by hotel and restaurant liquor
    17  licensees which qualify for and purchase such annual special
    18  permit, their servants, agents and employes, shall be made
    19  subject to the restrictions imposed by the act on sales by
    20  hotels and restaurants for sales on weekdays as well as those
    21  restrictions set forth in this section.
    22     Section 28.  Section 406.1 of the act, amended May 9, 1984
    23  (P.L.246, No.54), is reenacted and amended to read:               <--
    24     Section 406.1.  Secondary Service Area.--Upon application of
    25  any restaurant, hotel, club, any stadium as described in section
    26  408.9 or municipal golf course liquor licensee, and payment of
    27  the appropriate fee, the [board] commission may approve a         <--
    28  secondary service area by extending the licensed premises to
    29  include one additional permanent structure with dimensions of at
    30  least one hundred seventy-five square feet, enclosed on three
    19870H1000B1735                 - 63 -

     1  sides and having adequate seating. Such secondary service area
     2  must be located on property having a minimum area of one (1)
     3  acre, and must be on land which is immediate, abutting, adjacent
     4  or contiguous to the licensed premises with no intervening
     5  public thoroughfare. In any stadium as described in section
     6  408.9, only malt or brewed beverages may be served. There shall
     7  be no requirement that the secondary service area be physically
     8  connected to the original licensed premises. Notwithstanding 40
     9  Pa. Code § 7.21(c)(3), the licensee shall be permitted to store,
    10  serve, sell or dispense food, liquor and malt or brewed
    11  beverages at the [board] commission approved secondary service    <--
    12  area.
    13     Section 29.  Section 407 of the act is reenacted to read:
    14     Section 407.  Sale of Malt or Brewed Beverages by Liquor
    15  Licensees.--Every liquor license issued to a hotel, restaurant,
    16  club, or a railroad, pullman or steamship company under this
    17  subdivision (A) for the sale of liquor shall authorize the
    18  licensee to sell malt or brewed beverages at the same places but
    19  subject to the same restrictions and penalties as apply to sales
    20  of liquor, except that licensees other than clubs may sell malt
    21  or brewed beverages for consumption off the premises where sold
    22  in quantities of not more than one hundred forty-four fluid
    23  ounces in a single sale to one person. No licensee under this
    24  subdivision (A) shall at the same time be the holder of any
    25  other class of license, except a retail dispenser's license
    26  authorizing the sale of malt or brewed beverages only.
    27     Section 30.  Section 408 of the act, amended September 19,
    28  1961 (P.L.1507, No.639) and November 26, 1978 (P.L.1389,
    29  No.326), is reenacted and amended to read:                        <--
    30     Section 408.  Public Service Liquor Licenses.--(a)  Subject
    19870H1000B1735                 - 64 -

     1  to the provisions of this act and regulations promulgated under
     2  this act, the [board] commission, upon application, shall issue   <--
     3  retail liquor licenses to railroad or pullman companies
     4  permitting liquor and malt or brewed beverages to be sold in
     5  dining, club or buffet cars to passengers for consumption while
     6  enroute on such railroad, and may issue retail liquor licenses
     7  to steamship companies permitting liquor or malt or brewed
     8  beverages to be sold in the dining compartments of steamships or
     9  vessels wherever operated in the Commonwealth, except when
    10  standing or moored in stations, terminals or docks within a
    11  municipality wherein sales of liquor for consumption on the
    12  premises are prohibited, and may further issue retail liquor
    13  licenses to airline companies permitting liquor or malt or
    14  brewed beverages to be sold to passengers for consumption while
    15  enroute on such airline. Such licenses shall be known as public
    16  service liquor licenses. The [board] commission may issue a       <--
    17  master license to railroad or pullman companies to cover the
    18  maximum number of cars which the company shall estimate that it
    19  will operate within the Commonwealth on any one day. Such
    20  licensees shall file monthly reports with the [board] commission  <--
    21  showing the maximum number of cars operated in any one day
    22  during the preceding month, and if it appears that more cars
    23  have been operated than covered by its license it shall
    24  forthwith remit to the [board] commission the sum of twenty       <--
    25  dollars for each extra car so operated.
    26     (b)  For the purpose of considering an application by a
    27  steamship or airline company for a public service liquor
    28  license, the [board] commission may cause an inspection of the    <--
    29  steamship or vessel or aircraft for which a license is desired.
    30  The [board] commission may, in its discretion, grant or refuse    <--
    19870H1000B1735                 - 65 -

     1  the license applied for and there shall be no appeal from its
     2  decision, except that an action of mandamus may be brought
     3  against the [board] commission in the manner provided by law.     <--
     4     (c)  Every applicant for a public service liquor license
     5  shall, before receiving such license, file with the [board]       <--
     6  commission a surety bond as hereinafter prescribed, pay to the
     7  [board] commission for each of the maximum number of dining,      <--
     8  club or buffet cars which the applicant estimates it will have
     9  in operation on any one day an annual fee of twenty dollars
    10  ($20.00), and for each steamship or vessel or aircraft for which
    11  a license is desired an annual fee of one hundred dollars
    12  ($100.00).
    13     (d)  Unless previously revoked, every license issued by the
    14  [board] commission under this section shall expire and terminate  <--
    15  on the thirty-first day of December, in the year for which the
    16  license is issued. Licenses issued under the provisions of this
    17  section shall be renewed annually, as herein provided, upon the
    18  filing of applications in such form as the [board] commission     <--
    19  shall prescribe, but no license shall be renewed until the
    20  applicant shall file with the [board] commission a new surety     <--
    21  bond and shall pay the requisite license fee specified in this
    22  section.
    23     (e)  Except as otherwise specifically provided, sales of
    24  liquor and malt or brewed beverages by the aforesaid public
    25  service company licensees shall be made in accordance with, and
    26  shall be subject to, the provisions of this act relating to the
    27  sale of liquors by restaurant licensees.
    28     Section 31.  Section 408.1 of the act, added December 15,
    29  1965 (P.L.1106, No.426) and amended November 17, 1967 (P.L.510,
    30  No.247), is reenacted and amended to read:                        <--
    19870H1000B1735                 - 66 -

     1     Section 408.1.  Trade Show and Convention Licenses.--(a)  The
     2  [board] commission is authorized to issue a license in any city   <--
     3  of the first or second class for the retail sale of liquor and
     4  malt or brewed beverages by the glass, open bottles or other
     5  container or in any mixture for consumption in any restaurant or
     6  other appropriate location on city-owned premises or on premises
     7  of an authority created under the act of July 29, 1953
     8  (P.L.1034), known as the "Public Auditorium Authorities Law"
     9  customarily used or available for use for trade shows and
    10  conventions. Any concessionaire selected and certified by the
    11  city or its authorized agency or by the authority may apply for
    12  a license.
    13     (b)  The application for a trade show and convention license
    14  may be filed at any time and shall conform with all requirements
    15  for restaurant liquor license applications except as may be
    16  otherwise provided herein. The applicant shall submit such other
    17  information as the [board] commission may require. Application    <--
    18  shall be in writing on forms prescribed by the [board]            <--
    19  commission and shall be signed and submitted to the [board]       <--
    20  commission by the applicant. The filing fee which shall
    21  accompany the trade show and convention license application
    22  shall be twenty dollars ($20).
    23     (c)  Upon receipt of the application in proper form and the
    24  application fee, and upon being satisfied that the applicant is
    25  of good repute and financially responsible and that the proposed
    26  place of business is proper, the [board] commission shall issue   <--
    27  a license to the applicant.
    28     (d)  The license shall be issued for the same period as
    29  provided for restaurant licenses and shall be renewed as in
    30  section 402. The license shall terminate upon revocation by the
    19870H1000B1735                 - 67 -

     1  [board] commission or upon termination of the contract between    <--
     2  the concessionaire and the city or authority.
     3     (e)  The annual fee for a trade show and convention license
     4  shall be six hundred dollars ($600), and shall accompany the
     5  application for the license. Whenever a concessionaire's
     6  contract terminates the license shall be returned to the [board]  <--
     7  commission for cancellation and a new license shall be issued to
     8  a new applicant.
     9     (f)  The penal sum of the bond which shall be filed by an
    10  applicant for a trade show and convention license pursuant to
    11  section 465 of this article shall be two thousand dollars
    12  ($2,000) and in addition thereto he shall file an additional
    13  bond in a sum to assure payment of any suspension of license up
    14  to one hundred days.
    15     (g)  Sales by the holder of a trade show and convention
    16  license may be made except to those persons prohibited under
    17  clause (1) of section 493 of this act on city-owned or
    18  authority-owned, leased or operated premises customarily used or
    19  available for use for trade shows and conventions during the
    20  hours in which the convention or trade show is being held and up
    21  to one hour after the scheduled closing, and at functions which
    22  are incidental to or a part of the trade show or convention, but
    23  such sales may not be made beyond the hours expressed in the act
    24  for the sale of liquor by restaurant licensees: Provided,
    25  however, That during the hours expressed in this act for the
    26  sale of liquor by hotel licensees, sales of such liquor or malt
    27  or brewed beverages may be made by said licensee at banquets,
    28  not incidental to trade shows or conventions, at which more than
    29  two thousand persons are scheduled to attend, and at functions
    30  irrespective of attendance, which are directly related to the
    19870H1000B1735                 - 68 -

     1  Philadelphia Commercial Museum or the Center for International
     2  Visitors: And provided further, That no such sale shall be made
     3  at any sporting, athletic or theatrical event.
     4     (h)  Whenever a contract is terminated prior to the
     5  expiration date provided in the contract between the city or
     6  authority and the concessionaire, the city or authority may
     7  select and certify to the [board] commission a different          <--
     8  concessionaire which concessionaire shall apply to the [board]    <--
     9  commission for a new license. If the applicant meets the
    10  requirements of the [board] commission as herein provided a new   <--
    11  license shall thereupon be issued.
    12     (i)  If any trade show and convention license is suspended,
    13  the offer in compromise shall be accepted at the same rate as
    14  provided for existing restaurant liquor licenses not in excess
    15  of one hundred days. If any trade show and convention license is
    16  revoked, the [board] commission shall issue a new license to any  <--
    17  qualified applicant without regard to the prohibition in section
    18  471 against the grant of license at the same premises for a
    19  period of at least one year.
    20     Section 32.  Section 408.2 of the act, added November 25,
    21  1970 (P.L.770, No.255) and amended June 9, 1972 (P.L.379,
    22  No.108), is reenacted and amended to read:                        <--
    23     Section 408.2.  City-Owned Stadia.--(a)  The [board]           <--
    24  commission is authorized to issue a license in any city of the
    25  first class for the retail sale of liquor and malt or brewed
    26  beverages by the glass, open bottles or other container or in
    27  any mixture for consumption in any restaurant on city-owned
    28  premises principally utilized for competition of professional
    29  and amateur athletes and other types of entertainment where
    30  there is an available seating capacity within the premises of
    19870H1000B1735                 - 69 -

     1  twelve thousand or more.
     2     (b)  The application for a city-owned stadium license may be
     3  filed at any time by a concessionaire selected and certified by
     4  the city or its authorized agency and shall conform with all
     5  requirements for restaurant-liquor licenses and applications
     6  except as may otherwise be provided herein. Applicant shall
     7  submit such other information as the [board] commission may       <--
     8  require. Applications shall be in writing on forms prescribed by
     9  the [board] commission and shall be signed and submitted to the   <--
    10  [board] commission by the applicant. The filing fee which shall   <--
    11  accompany the license application shall be twenty dollars ($20).
    12     (c)  Upon receipt of the application in proper form and the
    13  application fee and upon being satisfied that the applicant is
    14  of good repute and financially responsible and that the proposed
    15  place of business is proper, the [board] commission shall issue   <--
    16  a license to the applicant.
    17     (d)  The license shall be issued for the same period of time
    18  as provided for restaurant licenses and shall be renewed as
    19  provided in section 402. The license shall terminate upon
    20  revocation by the [board] commission or upon termination of the   <--
    21  contract between the concessionaire and the city.
    22     (e)  The annual fee for a stadium license shall be six
    23  hundred dollars ($600), and shall accompany the application for
    24  the license. Whenever a concessionaire's contract terminates the
    25  license shall be returned to the [board] commission for           <--
    26  cancellation and a new license shall be issued to a new
    27  applicant.
    28     (f)  The penal sum of the bond which shall be filed by an
    29  applicant for a stadium license pursuant to section 465 of the
    30  "Liquor Code" shall be two thousand dollars ($2,000) and in
    19870H1000B1735                 - 70 -

     1  addition thereto he shall file an additional bond in a sum to
     2  assure payment of any fine imposed by the [board] commission up   <--
     3  to one thousand dollars ($1,000).
     4     (g)  Sales by the holder of a stadium license may be made
     5  except to those persons prohibited under clause (1) of section
     6  493 of this act on city-owned premises customarily used or
     7  available for use for competition of professional and amateur
     8  athletes and other types of entertainment during the hours in
     9  which the entertainment is being held and up to one hour after
    10  the scheduled closing, and at functions which are incidental to
    11  or part of the stadium activities, but such sales may not be
    12  made beyond the hours expressed in the code for the sale of
    13  liquor by restaurant licensees: Provided, however, That such
    14  sales may be made on Sunday between the hours of twelve o'clock
    15  noon and ten o'clock postmeridian: And provided further, That
    16  during the hours expressed in this act for the sale of liquor by
    17  hotel licensees, sales of such liquor or malt or brewed
    18  beverages may be made by said licensee at banquets, not
    19  incidental to stadium activities, at which more than two
    20  thousand persons are scheduled to attend, and at functions
    21  irrespective of attendance, which are directly related to stadia
    22  purposes.
    23     (h)  Whenever a contract is terminated prior to the
    24  expiration date provided in the contract between the city and
    25  the concessionaire, the city may select and certify to the
    26  [board] commission a different concessionaire which               <--
    27  concessionaire shall apply to the [board] commission for a new    <--
    28  license. If the applicant meets the requirements of the [board]   <--
    29  commission as herein provided a new license shall thereupon be
    30  issued. If any stadium license is revoked, the [board]            <--
    19870H1000B1735                 - 71 -

     1  commission shall issue a new license to any qualified applicant
     2  without regard to the prohibition in section 471, against the
     3  grant of a license at the same premises for a period of at least
     4  one year.
     5     Section 33.  Section 408.3 of the act, amended December 16,
     6  1982 (P.L.1359, No.311), is reenacted and amended to read:
     7     Section 408.3.  Performing Arts Facilities.--(a)  The [board]  <--
     8  commission is authorized to issue a license to one nonprofit
     9  corporation operating a theater for the performing arts in each
    10  city of the first or second class which has seating
    11  accommodations for at least twenty-seven hundred persons except
    12  where prohibited by local option for the retail sale of liquor
    13  and malt or brewed beverages by the glass, open bottle or other
    14  container or in any mixture for consumption in any such theater
    15  for the performing arts.
    16     (a.1)  The [board] commission is authorized to issue licenses  <--
    17  to operators of theaters for the performing arts, other than a
    18  theater qualifying under subsection (a), which are permanently
    19  located at a single site and which have seating accommodations,
    20  affixed to the theater structure, for at least twenty-eight
    21  hundred persons except where prohibited by local option for the
    22  retail sale of liquor and malt or brewed beverages by the glass,
    23  open bottle, or other container or in any mixture for
    24  consumption in any such theater for the performing arts.
    25     (A.2)  THE BOARD IS AUTHORIZED TO APPROVE THE TRANSFER OF A    <--
    26  RESTAURANT LICENSE TO ONE NONPROFIT CORPORATION OPERATING A
    27  THEATER FOR THE PERFORMING ARTS IN EACH CITY WHICH HAS A SEATING
    28  CAPACITY OF AT LEAST TWO HUNDRED FIFTY (250) PERSONS, EXCEPT
    29  WHERE PROHIBITED BY LOCAL OPTION, FOR THE RETAIL SALE OF LIQUOR
    30  AND MALT OR BREWED BEVERAGES BY THE GLASS, OPEN BOTTLE OR OTHER
    19870H1000B1735                 - 72 -

     1  CONTAINER OR IN ANY MIXTURE FOR CONSUMPTION IN ANY SUCH THEATER
     2  FOR THE PERFORMING ARTS.
     3     (b)  The application for a performing arts facility license
     4  may be filed at any time by a nonprofit corporation operating
     5  such a theater for the performing arts or by a concessionaire
     6  selected by such nonprofit corporation and shall conform with
     7  all requirements for restaurant liquor licenses and applications
     8  except as may otherwise be provided herein. Applicant shall
     9  submit such other information as the [board] commission may       <--
    10  require. Applications shall be in writing on forms prescribed by
    11  the [board] commission and shall be signed and submitted to the   <--
    12  [board] commission by the applicant. The filing fee shall         <--
    13  accompany the license application.
    14     (b.1)  A performing arts facility referred to in subsection
    15  (a.1) OR (A.2) must be in operation for a period of two (2)       <--
    16  years before it may file an application for a license. The
    17  application for a performing arts facility license may be filed
    18  at any time thereafter by the operator or a concessionaire
    19  selected by the operator of such theater for the performing arts
    20  and shall conform with all requirements for restaurant liquor
    21  licenses and applications except as may be otherwise provided
    22  herein. Applicants shall submit such other information as the
    23  [board] commission may require. Applications shall be in writing  <--
    24  on forms prescribed by the [board] commission and shall be        <--
    25  signed and submitted to the [board] commission by the applicant.  <--
    26  The filing fee shall accompany the license application.
    27     (b.2)  The filing fee which is prescribed in clause (19) of
    28  section 614-A of the act of April 9, 1929 (P.L.177, No.175),
    29  known as "The Administrative Code of 1929," shall accompany the
    30  license application filed under subsection (b) or (b.1).
    19870H1000B1735                 - 73 -

     1     (c)  Upon receipt of the application in proper form and the
     2  application fee and upon being satisfied that the applicant is
     3  of good repute and financially responsible and that the proposed
     4  place of business is proper, the [board] commission shall issue   <--
     5  a license to the applicant.
     6     (d)  The license shall be issued for the same period of time
     7  as provided for restaurant licenses and shall be renewed as
     8  provided in section 402. The license shall terminate upon
     9  revocation by the [board] commission or upon termination of the   <--
    10  contract between the concessionaire and the operator of such
    11  theater for the performing arts.
    12     (e)  The annual fee for a performing arts facility shall
    13  accompany the application for the license and shall be as
    14  prescribed in clause (19) of section 614-A of "The
    15  Administrative Code of 1929." Whenever and if a concessionaire's
    16  contract terminates the license shall be returned to the [board]  <--
    17  commission for cancellation and a new license shall be issued to
    18  a new applicant.
    19     (f)  The penal sum of the bond which shall be filed by an
    20  applicant for a performing arts facility pursuant to section 465
    21  of the "Liquor Code" shall be two thousand dollars ($2,000).
    22     (g)  Sales by the holder of a performing arts facility
    23  license may be made except to those persons prohibited under
    24  clause (1) of section 493 of this act on the premises of such a
    25  theater for the performing arts during the hours expressed in
    26  the code for the sale of liquor and malt and brewed beverages by
    27  restaurant licensees, and the license may be used for such sales
    28  on Sundays between the hours of 1:00 P.M. and 10:00 P.M.,
    29  irrespective of the volume of food sales.
    30     (g.1)  Sales by the holder of a performing arts facility
    19870H1000B1735                 - 74 -

     1  license referred to in subsection (a.1) shall be further
     2  restricted to the period of time beginning one (1) hour before
     3  and ending one (1) hour after any presentation at the performing
     4  arts facility.
     5     (h)  Whenever a contract with a concessionaire is terminated
     6  prior to the expiration date provided in the contract between
     7  such operator and the concessionaire, operator may select and
     8  certify to the [board] commission a different concessionaire      <--
     9  which concessionaire shall apply to the [board] commission for a  <--
    10  new license. If the applicant meets the requirements of the
    11  [board] commission as herein provided a new license shall         <--
    12  thereupon be issued. If any such performing arts facility
    13  license is revoked, the [board] commission shall issue a new      <--
    14  license to any qualified applicant without regard to the
    15  prohibition in section 471, against the grant of a license at
    16  the same premises for a period of at least one (1) year.
    17     (i)  Licenses issued under the provisions of this section
    18  shall not be subject to the quota restrictions of section 461 of
    19  this act.
    20     (j)  Performing arts facility licenses referred to in
    21  subsection (a) shall not be subject to the provisions of section
    22  404 except in so far as they relate to the reputation of the
    23  applicant nor to the provisions of sections 461 and 463 nor to
    24  the provisions of clause (10) of section 493 of the "Liquor
    25  Code."
    26     (j.1)  Performing arts facilities referred to in subsection
    27  (a.1) shall not be subject to the provisions of section 463 nor
    28  to the provision requiring a special permit for dancing,
    29  theatricals or floor shows of any sort, or moving pictures other
    30  than television in clause (10) of section 493 of the "Liquor
    19870H1000B1735                 - 75 -

     1  Code."
     2     (J.2)  PERFORMING ARTS THEATERS REFERRED TO IN SUBSECTION      <--
     3  (A.2) SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION 463, NOR
     4  TO THE PROVISION REQUIRING A SPECIAL PERMIT FOR DANCING,
     5  THEATRICALS OR FLOOR SHOWS OF ANY SORT, OR MOVING PICTURES OTHER
     6  THAN TELEVISION IN SECTION 493(10), NOR TO PROVISIONS DEFINING
     7  "RESTAURANT" IN SECTION 102.
     8     (k)  Sales under such licenses (including food sales) may be
     9  limited by the licensee to patrons of the events scheduled in
    10  the theater of the performing arts. Provided food is offered for
    11  sale when sales are made under the license, such food may be
    12  catered from off the premises.
    13     Section 34.  Section 408.4 of the act, amended July 11, 1980
    14  (P.L.558, No.117), July 9, 1984 (P.L.659, No.137) and July 3,
    15  1985 (P.L.134, No.36), is reenacted and amended to read:
    16     Section 408.4.  Special Occasion Permits.--(a)  Upon
    17  application of any hospital, church, synagogue, volunteer fire
    18  company, VOLUNTEER AMBULANCE COMPANY, VOLUNTEER RESCUE SQUAD,     <--
    19  bona fide sportsmen's club in existence for at least ten years,   <--
    20  OR THE AUXILIARY OF ANY OF THE FOREGOING and upon payment of a
    21  fee of fifteen dollars ($15) per day, the [board] commission      <--
    22  shall issue a special occasion permit good for a period of not
    23  more than five consecutive days. Special occasion permits may
    24  also be issued to a museum operated by a nonprofit corporation
    25  in a city of the third class or a nonprofit corporation engaged
    26  in the performing arts in a city of the third class for a period
    27  of not more than six nonconsecutive or ten consecutive days at a
    28  fee of fifteen dollars ($15) per day.
    29     (b)  In any city, borough, incorporated town or township in
    30  which the sale of liquor and/or malt or brewed beverages has
    19870H1000B1735                 - 76 -

     1  been approved by the electorate, such special occasion permit
     2  shall authorize the permittee to sell liquor and/or malt or
     3  brewed beverages as the case may be to any adult person on any
     4  day for which the permit is issued.
     5     (c)  Such special occasion permit shall only be valid for the
     6  number of days stated in the permit. Only one permit may be
     7  issued to any permittee during the year. Provided, that a museum
     8  operated by a nonprofit corporation in a city of the third class
     9  and a nonprofit corporation engaged in the performing arts in a
    10  city of the third class may be issued no more than six permits
    11  during the year, each permit being valid for only one day, or in
    12  the alternative, one permit valid for no more than a total of
    13  ten consecutive days per year, which may be issued only during
    14  the month of August. Notwithstanding this subsection, two         <--
    15  special occasion permits per calendar year may be issued to the
    16  same hospital, church, synagogue, volunteer fire company or bona
    17  fide sportsmen's club.
    18     (d)  Such permits shall only be issued for use at a special
    19  event including, but not limited to bazaars, picnics and
    20  clambakes. The special event must be one which is used by the
    21  permittee as a means of raising funds for itself.
    22     (d.1)  The hours during which the holder of a special
    23  occasion permit may sell liquor or malt or brewed beverages
    24  shall be limited to the hours set forth in section 406 which are
    25  applicable to hotel and restaurant licensees. The hours during
    26  which a nonprofit corporation engaged in the performing arts in
    27  a city of the third class may sell liquor or malt or brewed
    28  beverages pursuant to a special occasion permit shall be limited
    29  to those hours set forth in section 408.3(g.1).
    30     (d.2)  At least forty-eight hours prior to the sale of any
    19870H1000B1735                 - 77 -

     1  liquor or malt or brewed beverages, the holder of a special
     2  occasion permit shall notify the local police department, or in
     3  the absence of a local police department, the Pennsylvania State
     4  Police, of the times when and place where the sale of liquor or
     5  malt or brewed beverages shall occur.
     6     (e)  The provisions of this section shall not be applicable
     7  to any licensee now or hereafter possessing a caterer's license,
     8  nor to any professional fund raiser.
     9     (f)  Any person selling liquor or malt or brewed beverages in
    10  violation of this section shall, upon summary conviction, be
    11  sentenced to pay a fine of two hundred fifty dollars ($250) for
    12  the first offense and a fine of five hundred dollars ($500) for
    13  each subsequent offense. This fine shall be in addition to any
    14  other penalty imposed by law for the illegal sale of malt or
    15  brewed beverages.
    16     Section 35.  Section 408.5 of the act, amended July 9, 1976
    17  (P.L.527, No.125), is reenacted and amended to read:
    18     Section 408.5.  Licenses for City-owned Art Museums, Cities
    19  First Class [and]; Art Museums Maintained by Certain Non-profit   <--
    20  Corporations in Cities of the Second Class AND NON-PROFIT         <--
    21  SCIENCE AND TECHNOLOGY MUSEUMS IN CITIES OF THE FIRST CLASS AND
    22  IN CITIES OF THE SECOND CLASS.--(a)  The [board] commission is    <--
    23  authorized to issue a license in any city of the first class for
    24  the retail sale of liquor and malt or brewed beverages by the
    25  glass, open bottles or other container, and in any mixture, for
    26  consumption in any city-owned art museum [or], in any art museum  <--
    27  maintained by a non-profit corporation in cities of the second
    28  class OR ANY NON-PROFIT SCIENCE AND TECHNOLOGY MUSEUM IN CITIES   <--
    29  OF THE FIRST CLASS OR IN CITIES OF THE SECOND CLASS. For the
    30  purpose of this section "non-profit corporation" shall mean a
    19870H1000B1735                 - 78 -

     1  corporation organized under the non-profit corporation laws for
     2  the benefit of the public and not for the mutual benefit of its
     3  members, and which maintains an art museum OR A SCIENCE AND       <--
     4  TECHNOLOGY MUSEUM having a floor area of not less than one
     5  hundred thousand square feet in one building.
     6     (b)  The application for a license may be filed at any time
     7  by the city, the non-profit corporation or lessee. The
     8  application may also be filed by a concessionaire selected and
     9  certified by the city or the non-profit corporation. The
    10  application shall conform with all requirements for restaurant
    11  liquor licenses and applications except as may otherwise be
    12  provided herein. Applicant shall submit such other information
    13  as the may require. The application shall be in writing on forms
    14  prescribed by the and shall be signed and submitted to the by
    15  the applicant. A filing fee of twenty dollars ($20) shall
    16  accompany the license application.
    17     (c)  Upon receipt of the application in proper form with the
    18  application fee and upon being satisfied that the applicant is
    19  of good repute and financially responsible and that the proposed
    20  place of business is proper, the shall issue a license to the
    21  applicant.
    22     (d)  The license shall be issued for the same period of time
    23  as provided for restaurant licensees and shall be renewed as
    24  provided in section 402. The license shall terminate upon
    25  revocation by the or upon termination of the lease or upon
    26  termination of the contract between the concessionaire and the
    27  city or the non-profit corporation.
    28     (g)  Sales by the holder of an art museum license OR SCIENCE   <--
    29  AND TECHNOLOGY LICENSE may be made except to those persons
    30  prohibited by this act on premises used for art museum OR         <--
    19870H1000B1735                 - 79 -

     1  SCIENCE AND TECHNOLOGY purposes, but such sales may not be made
     2  beyond the hours expressed in this act for the sale of liquor by
     3  restaurant licenses. However, sales of liquor or malt or brewed
     4  beverages may be made by an art museum OR SCIENCE AND TECHNOLOGY  <--
     5  licensee at banquets at which more than five hundred persons are
     6  scheduled to attend and at any other function which is directly
     7  related to art museum OR SCIENCE AND TECHNOLOGY purposes.         <--
     8     (h)  Whenever a lease or a concession contract is terminated
     9  prior to the expiration date provided in the lease or contract
    10  between the city or the non-profit corporation and the tenant or
    11  concessionaire, the city or the non-profit corporation may
    12  select and certify to the [board] commission a different          <--
    13  licensee or concessionaire who may then apply to the [board]      <--
    14  commission for a new license. If the applicant meets the
    15  requirements of the [board] commission as herein provided a new   <--
    16  license shall thereupon be issued.
    17     (i)  If the [board] commission shall revoke any art museum     <--
    18  license OR SCIENCE AND TECHNOLOGY LICENSE, the [board]            <--
    19  commission shall issue a new license to any qualified applicant
    20  without regard to the prohibition in section 471 against the
    21  grant of a license at the same premises for a period of at least
    22  one year.
    23     (i.1)  Any renewal of a license presently held by a city-
    24  owned art museum in a city of the first class shall be
    25  accomplished by the purchase of a license from an existing
    26  licensee.
    27     (i.2)  An art museum maintained by a non-profit corporation
    28  or corporations in a city of the second class which obtains
    29  approval of its application for a license from the [board]        <--
    30  commission shall purchase a license from an existing licensee.
    19870H1000B1735                 - 80 -

     1     (j)  The provisions of this act shall supersede or exempt any
     2  provision of the Liquor Code which would prevent the issuance of
     3  a license for the retail sale of liquor and malt or brewed
     4  beverages upon any premises owned by the city of the first class
     5  or by a non-profit corporation in a city of the second class
     6  used for art museum purposes.
     7     Section 36.  Section 408.6 of the act, added July 11, 1980
     8  (P.L.558, No.117), is reenacted and amended to read:
     9     Section 408.6.  Performing Arts Facilities in Third Class
    10  Cities.--(a)  The [board] commission is authorized to issue a     <--
    11  restaurant liquor license to a nonprofit corporation or to a
    12  concessionaire selected by such nonprofit corporation in any
    13  city of the third class for the retail sale of liquor and malt
    14  or brewed beverages by the glass, open bottles or other
    15  container or in any mixture for consumption on any city-owned
    16  premises utilized as a nonprofit performing arts facility or any
    17  other premises utilized as a nonprofit performing arts facility
    18  where there is an available seating capacity within the premises
    19  of one thousand or more: Provided, however, That no sale or
    20  consumption of such beverages shall take place on any portions
    21  of such premises other than service areas approved by the
    22  [board] commission.                                               <--
    23     (b)  An application for the issuance may be filed at any time
    24  by a nonprofit corporation operating such a theater for the
    25  performing arts or by a concessionaire selected by such
    26  nonprofit corporation. Any such license granted under these
    27  provisions need not conform to the requirements of the act
    28  relating to restaurant liquor licenses, except as provided
    29  herein. Applicant shall submit such other information as the
    30  [board] commission may require. Applications shall be in writing  <--
    19870H1000B1735                 - 81 -

     1  on forms prescribed by the [board] commission and shall be        <--
     2  signed and submitted to the [board] commission by the applicant.  <--
     3  The filing fee which shall accompany the license application
     4  shall be thirty dollars ($30).
     5     (c)  Upon receipt of the application in proper form and the
     6  application fee and upon being satisfied that the applicant is
     7  of good repute and financially responsible and that the proposed
     8  place of business is proper, the [board] commission shall issue   <--
     9  the restaurant liquor license for the performing arts facility.
    10     (d)  The license shall be issued for the same period of time
    11  as provided for restaurant licenses and shall be renewed as
    12  provided in section 402. The license shall terminate upon
    13  revocation by the [board] commission or upon termination and      <--
    14  nonrenewal of the contract between the concessionaire and such
    15  nonprofit corporation.
    16     (e)  The annual fee for a performing arts facility shall be
    17  as provided in section 405 and shall accompany the application
    18  for the license. Whenever and if a concessionaire's contract
    19  terminates and is not renewed the license shall be returned to
    20  the for cancellation but the [board] commission may issue a       <--
    21  restaurant liquor license to a subsequent applicant.
    22     (f)  The penal sum of the bond which shall be filed by an
    23  applicant for a performing arts facility pursuant to section 465
    24  shall be two thousand dollars ($2,000).
    25     (g)  Sales by the holder of a performing arts facility
    26  license may be made except to those persons prohibited under
    27  clause (1) of section 493 on [board-approved] commission-         <--
    28  approved service areas of the premises of such a facility for
    29  the performing arts during the hours in which the performance is
    30  being held and up to one hour before the scheduled opening and
    19870H1000B1735                 - 82 -

     1  one hour after the scheduled closing, but such sales may not be
     2  made beyond the hours expressed in the code for the sale of
     3  liquor and malt or brewed beverages by restaurant licensees:
     4  Provided, however, That such sales may be made on Sunday between
     5  the hours of one o'clock postmeridian and ten o'clock
     6  postmeridian, irrespective of the volume of food sales.
     7     (h)  Whenever a contract with a concessionaire is terminated
     8  prior to the expiration date provided in the contract between
     9  such nonprofit corporation and the concessionaire and is not
    10  renewed, such nonprofit corporation may apply to the [board]      <--
    11  commission for the issuance of a restaurant liquor license or
    12  may select and certify to the [board] commission a different      <--
    13  concessionaire which concessionaire shall apply to the for the
    14  issuance of a restaurant liquor license. If the applicant meets
    15  the requirements of the [board] commission as herein provided,    <--
    16  the issuance shall thereupon occur. If any such performing arts
    17  facility license is revoked, the [board] commission shall issue   <--
    18  a new license to any qualified applicant without regard to the
    19  prohibition in section 471, against the grant of a license at
    20  the same premises for a period of at least one year.
    21     (i)  Licenses issued under the provisions of this section
    22  shall not be subject to the quota restrictions of section 461.
    23     (j)  Performing arts licenses shall not be subject to the
    24  provisions of section 404 except insofar as they relate to the
    25  reputation of the applicant nor to the provisions of sections
    26  461 and 463, nor to the provisions of clause (10) of section
    27  493.
    28     (k)  Sales under such licenses (including food sales) may be
    29  limited by the licensee to patrons of the events scheduled in
    30  the facility of the performing arts. Provided food is offered
    19870H1000B1735                 - 83 -

     1  for sale when sales are made under the license, such food may be
     2  catered from off the premises.
     3     Section 37.  Section 408.7 of the act, added December 12,
     4  1980 (P.L.1195, No.221), is reenacted and amended to read:
     5     Section 408.7.  Performing Arts Facilities in First and
     6  Second Class Cities.--(a)  The [board] commission is authorized   <--
     7  to transfer a restaurant liquor license purchased by any person
     8  or by a concessionaire selected by such person in any city of
     9  the first or second class for the retail sale of liquor and malt
    10  or brewed beverages by the glass, open bottles or other
    11  container or in any mixture for consumption on any city-owned
    12  premises utilized as a performing arts facility or any other
    13  premise utilized as a performing arts facility where there is an
    14  available seating capacity within the premises of one thousand
    15  or more: Provided, however, That no sale or consumption of such
    16  beverages shall take place on any portions of such premises
    17  other than service areas approved by the [board] commission.      <--
    18     (b)  An application for transfer may be filed at any time by
    19  a person operating such a theater for the performing arts or by
    20  a concessionaire selected by such person. Any such license
    21  granted under these provisions need not conform to the
    22  requirements of the act relating to restaurant liquor licenses,
    23  except as provided herein. Applicant shall submit such other
    24  information as the [board] commission may require. Applications   <--
    25  shall be in writing on forms prescribed by the [board]            <--
    26  commission and shall be signed and submitted to the [board]       <--
    27  commission by the applicant. The filing fee which shall
    28  accompany the license transfer application shall be thirty
    29  dollars ($30).
    30     (c)  Upon receipt of the application in proper form and the
    19870H1000B1735                 - 84 -

     1  application fee and upon being satisfied that the applicant is
     2  of good repute and financially responsible and that the proposed
     3  place of business is proper, the [board] commission shall         <--
     4  transfer the restaurant liquor license for the performing arts
     5  facility.
     6     (d)  The license shall be transferred for the same period of
     7  time as provided for restaurant licenses and shall be renewed as
     8  provided in section 402. The license shall terminate upon
     9  revocation by the [board] commission or upon termination and      <--
    10  nonrenewal of the contract between the concessionaire and such
    11  person.
    12     (e)  The annual fee for a performing arts facility shall be
    13  as provided in section 405 and shall accompany the application
    14  for the license. Whenever and if a concessionaire's contract
    15  terminates and is not renewed the license shall be returned to
    16  the for cancellation and the [board] commission may transfer a    <--
    17  restaurant liquor license purchased by a subsequent applicant.
    18     (f)  The penal sum of the bond which shall be filed by an
    19  applicant for a performing arts facility pursuant to section 465
    20  shall be two thousand dollars ($2,000).
    21     (g)  Sales by the holder of a performing arts facility
    22  license may be made except to those persons prohibited under
    23  clause (1) of section 493 on [board-approved] commission-         <--
    24  approved service areas of the premises of such a facility for
    25  the performing arts during the hours in which the performance is
    26  being held and up to one hour before the scheduled opening and
    27  one hour after the scheduled closing, but such sales may not be
    28  made beyond the hours expressed in the code for the sale of
    29  liquor and malt or brewed beverages by restaurant licensees:
    30  Provided, however, That such sales may be made on Sunday between
    19870H1000B1735                 - 85 -

     1  the hours of one o'clock postmeridian and ten o'clock
     2  postmeridian, irrespective of the volume of food sales.
     3     (h)  Whenever a contract with a concessionaire is terminated
     4  prior to the expiration date provided in the contract between
     5  such person and the concessionaire and is not renewed, such
     6  person may apply to the [board] commission for the transfer of a  <--
     7  restaurant liquor license purchased by such person, or may
     8  select and certify to the [board] commission a different          <--
     9  concessionaire which concessionaire shall apply to the [board]    <--
    10  commission for the transfer of a restaurant liquor license
    11  purchased by such concessionaire. If the applicant meets the
    12  requirements of the [board] commission as herein provided, a      <--
    13  transfer shall thereupon occur. If any such performing arts
    14  facility license is revoked, the [board] commission shall         <--
    15  transfer a license for any qualified applicant who has purchased
    16  a restaurant liquor license without regard to the prohibition in
    17  section 471, against the grant of a license at the same premises
    18  for a period of at least one year.
    19     (i)  Performing arts licenses shall not be subject to the
    20  provisions of section 404 except insofar as they relate to the
    21  reputation of the applicant nor to the provisions of section
    22  463, nor to the provisions of clause (10) of section 493.
    23     (j)  Sales under such licenses (including food sales) may be
    24  limited by the licensee to portions of the events scheduled in
    25  the facility of the performing arts. Provided food is offered
    26  for sale when sales are made under the license, such food may be
    27  catered from off the premises.
    28     Section 38.  Section 408.8 of the act, added December 17,
    29  1982 (P.L.1390, No.319), is reenacted and amended to read:        <--
    30     Section 408.8.  Trade Shows and Convention Licenses; Cities
    19870H1000B1735                 - 86 -

     1  of the Third Class.--(a)  The [board] commission is authorized    <--
     2  to issue a restaurant liquor license to a nonprofit corporation
     3  or to a concessionaire selected by such nonprofit corporation in
     4  any city of the third class for the retail sale of liquor and
     5  malt or brewed beverages by the glass, open bottles or other
     6  container or in any mixture for consumption on any city-owned
     7  premises customarily used or available for use for trade shows
     8  and conventions with a capacity within the premises for one
     9  thousand people or more: Provided, however, That no sale or
    10  consumption of such beverages shall take place on any portions
    11  of such premises other than service areas approved by the
    12  [board] commission.                                               <--
    13     (b)  An application for the issuance may be filed at any time
    14  by a nonprofit corporation operating such a facility for trade
    15  shows or conventions or by a concessionaire selected by such
    16  nonprofit corporation. Any such license granted under these
    17  provisions need not conform to the requirements of the act
    18  relating to restaurant liquor licenses, except as provided
    19  herein. Applicant shall submit such other information as the
    20  [board] commission may require. Applications shall be in writing  <--
    21  on forms prescribed by the [board] commission and shall be        <--
    22  signed and submitted to the [board] commission by the applicant.  <--
    23  The filing fee which shall accompany the license application
    24  shall be thirty dollars ($30).
    25     (c)  Upon receipt of the application in proper form and the
    26  application fee, and upon being satisfied that the applicant is
    27  of good repute and financially responsible and that the proposed
    28  place of business is proper, the [board] commission shall issue   <--
    29  the restaurant liquor license for the trade show or convention
    30  facility.
    19870H1000B1735                 - 87 -

     1     (d)  The license shall be issued for the same period of time
     2  as provided for restaurant licenses and shall be renewed as
     3  provided in section 402. The license shall terminate upon
     4  revocation by the [board] commission or upon termination and      <--
     5  nonrenewal of the contract between the concessionaire and such
     6  nonprofit corporation.
     7     (e)  The annual fee for a trade show or convention facility
     8  shall be as provided in section 405 and shall accompany the
     9  application for the license. Whenever and if a concessionaire's
    10  contract terminates and is not renewed, the license shall be
    11  returned to the [board] commission for cancellation but the       <--
    12  [board] commission may issue a restaurant liquor license to a     <--
    13  subsequent application.
    14     (f)  The penal sum of the bond which shall be filed by an
    15  applicant for a trade show or convention facility pursuant to
    16  section 465 shall be two thousand dollars ($2,000).
    17     (g)  Sales by the holder of a trade show or convention
    18  facility license may be made except to those persons prohibited
    19  under clause (1) of section 493 on [board-approved] commission-   <--
    20  approved service areas of the premises of such a facility for
    21  trade shows or conventions during the hours in which the trade
    22  show or convention is being held and up to one hour before the
    23  scheduled opening and one hour after the scheduled closing, but
    24  such sales may not be made beyond the hours expressed in the
    25  code for the sale of liquor and malt or brewed beverages by
    26  restaurant licensees: Provided, however, That such sales may be
    27  made on Sunday between the hours of one o'clock postmeridian and
    28  ten o'clock postmeridian, irrespective of the volume of food
    29  sales.
    30     (h)  Whenever a contract with a concessionaire is terminated
    19870H1000B1735                 - 88 -

     1  prior to the expiration date provided in the contract between
     2  such nonprofit corporation and the concessionaire and is not
     3  renewed, such nonprofit corporation may apply to the [board]      <--
     4  commission for the issuance of a restaurant liquor license or
     5  may select and certify to the [board] commission a different      <--
     6  concessionaire which concessionaire shall apply to the [board]    <--
     7  commission for issuance of a restaurant liquor license. If the
     8  applicant meets the requirements of the [board] commission as     <--
     9  herein provided, the issuance shall thereupon occur. If any such
    10  trade show or convention license is revoked, the [board]          <--
    11  commission shall issue a new license to any qualified applicant
    12  without regard to the prohibition in section 471 against the
    13  grant of a license at the same premises for a period of at least
    14  one year.
    15     (i)  Licenses issued under the provisions of this section
    16  shall not be subject to the quota restrictions of section 461.
    17     (j)  Trade show or convention licenses shall not be subject
    18  to the provisions of section 404 except insofar as they relate
    19  to the reputation of the applicant nor to the provisions of
    20  sections 461 and 463 nor to the provisions of clause (10) of
    21  section 493.
    22     (k)  Sales under such licenses (including food sales) may be
    23  limited by the licensee to patrons of the events scheduled in
    24  the facility for trade shows or conventions. Provided food is
    25  offered for sale when sales are made under the license, such
    26  food may be catered from off the premises.
    27     Section 39.  Section 408.9 of the act, added May 9, 1984
    28  (P.L.246, No.54), is reenacted and amended to read:               <--
    29     Section 408.9.  Stadium and Restaurant Licenses in Third
    30  Class Cities.--The [board] commission is authorized to issue one  <--
    19870H1000B1735                 - 89 -

     1  restaurant license in any city of the third class for the retail
     2  sale of liquor and malt or brewed beverages by the glass, open
     3  bottles or other containers, and in any mixture, for consumption
     4  in any restaurant which is located not more than one thousand
     5  feet from a stadium which has a seating capacity of five
     6  thousand persons, situate on the same lot or parcel of land not
     7  less than twenty-five acres in size with no intervening public
     8  thoroughfare between the restaurant and the stadium.
     9     Section 40.  Section 409 of the act, amended February 17,
    10  1956 (1955 P.L.1078, No.349) and September 28, 1961 (P.L.1728,
    11  No.702), is reenacted and amended to read:                        <--
    12     Section 409.  Sacramental Wine Licenses; Fees; Privileges;
    13  Restrictions.--(a)  Subject to the provisions of this act in
    14  general and more particularly to the following provisions of
    15  this section, the [board] commission shall issue sacramental      <--
    16  wine licenses to qualified applicants.
    17     (b)  Every applicant for a sacramental wine license shall
    18  file a written application with the [board] commission in such    <--
    19  form as the [board] commission shall from time to time            <--
    20  prescribe, which shall be accompanied by a filing fee of twenty
    21  dollars ($20), a license fee of one hundred dollars, and a bond
    22  as hereinafter prescribed. Every such application shall contain
    23  a description of the premises for which the applicant desires a
    24  license and shall set forth such other material information as
    25  may be required by the [board] commission.                        <--
    26     (c)  If the applicant is a natural person, his application
    27  must show that he is a citizen of the United States and a
    28  resident of this Commonwealth. If the applicant is an
    29  association or partnership, each and every member of the
    30  association or partnership must be a citizen of the United
    19870H1000B1735                 - 90 -

     1  States and a resident of this Commonwealth. If the applicant is
     2  a corporation, the application must show that the corporation
     3  was created under the laws of Pennsylvania or holds a
     4  certificate of authority to transact business in Pennsylvania,
     5  and that all officers, directors and stockholders are citizens
     6  of the United States.
     7     (d)  Holders of such licenses may purchase from manufacturers
     8  or bring or import into this Commonwealth wine to be used for
     9  sacramental or religious purposes only, and bottle and sell the
    10  same to priests, clergymen and rabbis for use in the cathedral,
    11  church, synagogue or temple, or for sustaining members of the
    12  congregation or members of the faith who attend religious
    13  services, duly certified by such priests, clergymen or rabbis.
    14  The sale and use of wine for sacramental or religious purposes
    15  shall be subject to and in accordance with the regulations of
    16  the [board] commission.                                           <--
    17     (e)  Any wine purchased under the authority of this section
    18  shall not be used for any other than sacramental or religious
    19  purposes. Sacramental wine may not be sold by any person except
    20  the holder of a sacramental wine license.
    21     (f)  Every sacramental wine licensee shall maintain on the
    22  licensed premises such records as the [board] commission may      <--
    23  prescribe. No deliveries of sacramental wine shall be made
    24  unless and until an order therefor is on file at the principal
    25  place of business in Pennsylvania. All shipments into
    26  Pennsylvania of wine to be used for sacramental or religious
    27  purposes shall be consigned to the principal place of business
    28  maintained by the licensee.
    29     (g)  Any such license may be suspended or revoked by the
    30  [board] commission upon proof satisfactory to it that the         <--
    19870H1000B1735                 - 91 -

     1  licensee has violated any law of this Commonwealth or any
     2  regulation of the [board] commission relating to liquor and       <--
     3  alcohol. The procedure in such cases shall be the same as for
     4  the revocation and suspension of hotel, restaurant and club
     5  licenses.
     6     Section 41.  Section 410 of the act, amended September 28,
     7  1961 (P.L.1728, No.702), is reenacted and amended to read:
     8     Section 410.  Liquor Importers' Licenses; Fees; Privileges;
     9  Restrictions.--(a)  Subject to the provisions of this act in
    10  general and more particularly to the following provisions of
    11  this section, the [board] commission shall issue liquor           <--
    12  importers' licenses to qualified applicants.
    13     (b)  Every applicant for an importer's license shall file a
    14  written application with the [board] commission in such form as   <--
    15  the shall from time to time prescribe, which shall be
    16  accompanied by a filing fee of twenty dollars ($20), a license
    17  fee of one hundred dollars, and a bond as hereinafter required.
    18  Every such application shall contain a description of the
    19  principal place of business for which the applicant desires a
    20  license and shall set forth such other material information as
    21  may be required by the [board] commission.                        <--
    22     (c)  The holder of an importer's license may have included in
    23  such license one warehouse wherein only his liquor may be kept
    24  and stored, located in the same municipality in which his
    25  licensed premises is situate, and not elsewhere, unless such
    26  licensee secures from the [board] commission a license for each   <--
    27  additional storage warehouse desired. The [board] commission is   <--
    28  authorized and empowered to issue to a holder of an importer's
    29  license a license for an additional storage warehouse or
    30  warehouses located in this Commonwealth, provided such licensed
    19870H1000B1735                 - 92 -

     1  importer files with the [board] commission a separate             <--
     2  application for each warehouse in such form and containing such
     3  information as the [board] commission may from time to time       <--
     4  require, accompanied by a filing fee of twenty dollars ($20), a
     5  license fee of twenty-five dollars, and a bond of an approved
     6  surety company in the amount of ten thousand dollars. Such bond
     7  shall contain the same provisions and conditions as are required
     8  in the other license bonds under this article.
     9     (d)  If the applicant is a natural person, his application
    10  must show that he is a citizen of the United States and a
    11  resident of this Commonwealth. If the applicant is an
    12  association or partnership, each and every member of the
    13  association or partnership must be a citizen of the United
    14  States and a resident of this Commonwealth. If the applicant is
    15  a corporation, the application must show that the corporation
    16  was created under the laws of Pennsylvania or holds a
    17  certificate of authority to transact business in Pennsylvania,
    18  and that all officers, directors and stockholders are citizens
    19  of the United States.
    20     (e)  Importers' licenses shall permit the holders thereof to
    21  bring or import liquor from other states, foreign countries, or
    22  insular possessions of the United States, and purchase liquor
    23  from manufacturers located within this Commonwealth, to be sold
    24  outside of this Commonwealth or to Pennsylvania Liquor Stores
    25  within this Commonwealth, or when in original containers of ten
    26  gallons or greater capacity, to licensed manufacturers within
    27  this Commonwealth.
    28     All importations of liquor into Pennsylvania by the licensed
    29  importer shall be consigned to the [Pennsylvania Liquor Control
    30  Board] commission BOARD or the principal place of business or     <--
    19870H1000B1735                 - 93 -

     1  authorized place of storage maintained by the licensee.
     2     (f)  Every importer shall maintain on the licensed premises
     3  such records as the [board] commission may prescribe. Any such    <--
     4  license may be suspended or revoked by the [board] commission     <--
     5  upon proof satisfactory to it that the licensee has violated any
     6  law of this Commonwealth or any regulation of the [board]         <--
     7  commission relating to liquor and alcohol. The procedure in such
     8  cases shall be the same as for the revocation and suspension of
     9  hotel, restaurant and club licenses.
    10     Section 42.  Section 411 of the act, amended July 9, 1976
    11  (P.L.963, No.188), is reenacted to read:
    12     Section 411.  Interlocking Business Prohibited.--(a)  No
    13  manufacturer and no officer or director of any manufacturer
    14  shall at the same time be a holder of a hotel, restaurant or
    15  club liquor license, nor be the owner, proprietor or lessor of
    16  any place covered by any hotel, restaurant or club liquor
    17  license.
    18     (b)  No manufacturer, importer or sacramental wine licensee,
    19  and no officer or director of a manufacturer, importer or
    20  sacramental wine licensee shall own any stock or have any
    21  financial interest in any hotel or restaurant licensed under
    22  this act.
    23     (c)  Excepting as herein provided, no manufacturer, or
    24  officer, director, stockholder, agent or employe of a
    25  manufacturer shall in any wise be interested, either directly or
    26  indirectly, in the ownership or leasehold of any property or the
    27  equipment of any property or any mortgage lien against the same,
    28  for which a hotel, restaurant or club license is granted; nor
    29  shall a manufacturer, importer or sacramental wine licensee, or
    30  officer, director, stockholder, agent or employe of a
    19870H1000B1735                 - 94 -

     1  manufacturer, importer or sacramental wine licensee, either
     2  directly or indirectly, lend any moneys, credit, or give
     3  anything of value or the equivalent thereof to, or guarantee the
     4  payment of any bond, mortgage, note or other obligation of, any
     5  hotel, restaurant or club licensee, his servant, agent or
     6  employe, for equipping, fitting out, or maintaining and
     7  conducting, either in whole or in part, a hotel, restaurant or
     8  club licensed for the selling of liquor for use and consumption
     9  upon the premises.
    10     (d)  Excepting as herein provided, no hotel licensee,
    11  restaurant licensee or club licensee, and no officer, director,
    12  stockholder, agent or employe of any such licensee shall in any
    13  wise be interested, either directly or indirectly, in the
    14  ownership or leasehold of any property or the equipment of any
    15  property or any mortgage lien against the same, used by a
    16  manufacturer in manufacturing liquor or malt or brewed
    17  beverages; nor shall any hotel, restaurant or club licensee, or
    18  any officer, director, stockholder, agent or employe of any such
    19  licensee, either directly or indirectly, lend any moneys,
    20  credit, or give anything of value or the equivalent thereof, to
    21  any manufacturer for equipping, fitting out, or maintaining and
    22  conducting, either in whole or in part, an establishment used
    23  for the manufacture of liquor or malt or brewed beverages.
    24     (e)  Except as herein provided, no hotel, restaurant, retail
    25  dispenser or club licensee, and no officer, director or
    26  stockholder, agent or employe of any such licensee shall in any
    27  wise be interested, directly or indirectly, in the ownership or
    28  leasehold of any property or the equipment of any property or
    29  any mortgage lien against the same, used by a distributor,
    30  importing distributor, or by an importer or sacramental wine
    19870H1000B1735                 - 95 -

     1  licensee, in the conduct of his business; nor shall any hotel,
     2  restaurant, retail dispenser or club licensee, or any officer,
     3  director, stockholder, agent or employe of any such licensee,
     4  either directly or indirectly, lend any moneys, credit, or give
     5  anything of value or the equivalent thereof, to any distributor,
     6  importing distributor, importer or sacramental wine licensee,
     7  for equipping, fitting out, or maintaining and conducting,
     8  either in whole or in part, an establishment used in the conduct
     9  of his business.
    10     The purpose of this section is to require a separation of the
    11  financial and business interests between manufacturers and
    12  holders of hotel or restaurant liquor licenses and, as herein
    13  provided, of club licenses, issued under this article, and no
    14  person shall, by any device whatsoever, directly or indirectly,
    15  evade the provisions of the section. But in view of existing
    16  economic conditions, nothing contained in this section shall be
    17  construed to prohibit the ownership of property or conflicting
    18  interest by a manufacturer of any place occupied by a licensee
    19  under this article after the manufacturer has continuously owned
    20  and had a conflicting interest in such place for a period of at
    21  least five years prior to July eighteenth, one thousand nine
    22  hundred thirty-five: Provided, however, That this clause shall
    23  not prohibit any hotel, restaurant or club liquor licensee from
    24  owning land which is leased to, and the buildings thereon owned
    25  by, a holder of a retail dispenser's license; and nothing in
    26  this clause shall prevent the issuance of a retail dispenser's
    27  license to a lessee of such lands who owns the buildings
    28  thereon: And, provided further, That nothing contained in this
    29  section shall be construed to prohibit any hotel, restaurant,
    30  retail dispenser or club licensee or any officer, director or
    19870H1000B1735                 - 96 -

     1  stockholder, agent or employe of any such licensee from having a
     2  financial or other interest, directly or indirectly in the
     3  ownership or leasehold of any property or the equipment of any
     4  property or any mortgage lien against same, used, leased by an
     5  importer or sacramental wine licensee for the exclusive purpose
     6  of maintaining commercial offices and on the condition that said
     7  property is not used for the storage or sale of liquor or malt
     8  or brewed beverages in any quantity.
     9     Section 43.  The heading of Subdivision (B) of Article IV of
    10  the act is reenacted to read:
    11     (B)  Malt and Brewed Beverages (Including Manufacturers).
    12     Section 44.  Section 431 of the act, amended August 17, 1965
    13  (P.L.346, No.182), October 9, 1967 (P.L.395, No.179), May 5,
    14  1970 (P.L.342, No.110) and June 22, 1980 (P.L.253, No.73), is
    15  reenacted and amended to read:
    16     Section 431.  Malt and Brewed Beverages Manufacturers',
    17  Distributors' and Importing Distributors' Licenses.--(a)  The
    18  [board] commission shall issue to any person a resident of this   <--
    19  Commonwealth of good repute who applies therefor, pays the
    20  license fee hereinafter prescribed, and files the bond
    21  hereinafter required, a manufacturer's license to produce and
    22  manufacture malt or brewed beverages, and to transport, sell and
    23  deliver malt or brewed beverages at or from one or more places
    24  of manufacture or storage, only in original containers, in
    25  quantities of not less than a case of twenty-four containers,
    26  each container holding seven fluid ounces or more, or a case of
    27  twelve containers, each container holding twenty-four fluid
    28  ounces or more, except original containers containing one
    29  hundred twenty-eight ounces or more which may be sold separately
    30  anywhere within the Commonwealth. Licenses for places of storage
    19870H1000B1735                 - 97 -

     1  shall be limited to those maintained by manufacturers on July
     2  eighteenth, one thousand nine hundred thirty-five, and the
     3  [board] commission shall issue no licenses for places of storage  <--
     4  in addition to those maintained on July eighteenth, one thousand
     5  nine hundred thirty-five. The application for such license shall
     6  be in such form and contain such information as the [board]       <--
     7  commission shall require. All such licenses shall be granted for
     8  the calendar year. Every manufacturer shall keep at his or its
     9  principal place of business, within the Commonwealth daily
    10  permanent records which shall show, (1) the quantities of raw
    11  materials received and used in the manufacture of malt or brewed
    12  beverages and the quantities of malt or brewed beverages
    13  manufactured and stored, (2) the sales of malt or brewed
    14  beverages, (3) the quantities of malt or brewed beverages stored
    15  for hire or transported for hire by or for the licensee, and (4)
    16  the names and addresses of the purchasers or other recipients
    17  thereof. Every place licensed as a manufacturer shall be subject
    18  to inspection by members of the [board] commission or by persons  <--
    19  duly authorized and designated by the [board] commission, at any  <--
    20  and all times of the day or night, as they may deem necessary,
    21  for the detection of violations of this act or of the rules and
    22  regulations of the [board] commission, or for the purpose of      <--
    23  ascertaining the correctness of the records required to be kept
    24  by licensees. The books and records of such licensees shall at
    25  all times be open to inspection by members of the [board]         <--
    26  commission or by persons duly authorized and designated by the
    27  [board] commission. Members of the [board] commission and its     <--
    28  duly authorized agents shall have the right, without hindrance,
    29  to enter any place which is subject to inspection hereunder or
    30  any place where such records are kept for the purpose of making
    19870H1000B1735                 - 98 -

     1  such inspections and making transcripts thereof.
     2     (b)  The [board] commission shall issue to any reputable       <--
     3  person who applies therefor, pays the license fee hereinafter
     4  prescribed, and files the bond hereinafter required, a
     5  distributor's or importing distributor's license for the place
     6  which such person desires to maintain for the sale of malt or
     7  brewed beverages, not for consumption on the premises where
     8  sold, and in quantities of not less than twenty-four containers,
     9  each container holding seven fluid ounces or more, or twelve
    10  containers, each container holding twenty-four fluid ounces or
    11  more, except original containers containing one hundred twenty-
    12  eight ounces or more which may be sold separately and such
    13  containers to be the original containers as prepared for the
    14  market by the manufacturer at the place of manufacture[: And
    15  provided further, That the board]. Additionally, a distributor    <--
    16  may sell a quantity of 24 containers, all of the same unit size,
    17  but containing different brands of malt or brewed beverages,
    18  mixed in unit combinations of six of the same brand. The
    19  commission BOARD shall have the discretion to refuse a license    <--
    20  to any person or to any corporation, partnership or association
    21  if such person, or any officer or director of such corporation,
    22  or any member or partner of such partnership or association
    23  shall have been convicted or found guilty of a felony within a
    24  period of five years immediately preceding the date of
    25  application for the said license[.]: And provided further, That
    26  in the case of any new license or the transfer of any license to
    27  a new location the commission BOARD may, in its discretion,       <--
    28  grant or refuse such new license or transfer if such place
    29  proposed to be licensed is within three hundred feet of any
    30  church, hospital, charitable institution, school or public
    19870H1000B1735                 - 99 -

     1  playground, or if such new license or transfer is applied for a
     2  place which is within two hundred feet of any other premises
     3  which is licensed by the commission, or if such new license or    <--
     4  transfer is applied for a place where the principal business is
     5  the sale of liquid fuels and oil BOARD: And provided further,     <--
     6  That the commission BOARD shall refuse any application for a new  <--
     7  license or the transfer of any license to a new location if, in
     8  the commission's BOARD'S opinion, such new license or transfer    <--
     9  would be detrimental to the welfare, health, peace and morals of
    10  the inhabitants of the neighborhood within a radius of five
    11  hundred feet of the place proposed to be licensed. THE BOARD      <--
    12  SHALL REFUSE ANY APPLICATION FOR A NEW LICENSE OR THE TRANSFER
    13  OF ANY LICENSE TO A LOCATION WHERE THE SALE OF LIQUID FUELS OR
    14  OIL IS CONDUCTED. The commission BOARD shall require notice to    <--
    15  be posted on the property or premises upon which the licensee or
    16  proposed licensee will engage in sales of malt or brewed
    17  beverages. This notice shall be similar to the notice required
    18  of hotel, restaurant and club liquor licensees.
    19     Except as hereinafter provided, such license shall authorize
    20  the holder thereof to sell or deliver malt or brewed beverages
    21  in quantities above specified anywhere within the Commonwealth
    22  of Pennsylvania, which, in the case of distributors, have been
    23  purchased only from persons licensed under this act as
    24  manufacturers or importing distributors, and in the case of
    25  importing distributors, have been purchased from manufacturers
    26  or persons outside this Commonwealth engaged in the legal sale
    27  of malt or brewed beverages or from manufacturers or importing
    28  distributors licensed under this article.
    29     Each out of State manufacturer of malt or brewed beverages
    30  whose products are sold and delivered in this Commonwealth shall
    19870H1000B1735                 - 100 -

     1  give distributing rights for such products in designated
     2  geographical areas to specific importing distributors, and such
     3  importing distributor shall not sell or deliver malt or brewed
     4  beverages manufactured by the out of State manufacturer to any
     5  person issued a license under the provisions of this act whose
     6  licensed premises are not located within the geographical area
     7  for which he has been given distributing rights by such
     8  manufacturer: Provided, That the importing distributor holding
     9  such distributing rights for such product shall not sell or
    10  deliver the same to another importing distributor without first
    11  having entered into a written agreement with the said secondary
    12  importing distributor setting forth the terms and conditions
    13  under which such products are to be resold within the territory
    14  granted to the primary importing distributor by the
    15  manufacturer.
    16     When a Pennsylvania manufacturer of malt or brewed beverages
    17  licensed under this article names or constitutes a distributor
    18  or importing distributor as the primary or original supplier of
    19  his product, he shall also designate the specific geographical
    20  area for which the said distributor or importing distributor is
    21  given distributing rights, and such distributor or importing
    22  distributor shall not sell or deliver the products of such
    23  manufacturer to any person issued a license under the provisions
    24  of this act whose licensed premises are not located within the
    25  geographical area for which distributing rights have been given
    26  to the distributor and importing distributor by the said
    27  manufacturer: 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
    19870H1000B1735                 - 101 -

     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. Nothing herein contained shall be construed to
     5  prevent any manufacturer from authorizing the importing
     6  distributor holding the distributing rights for a designated
     7  geographical area from selling the products of such manufacturer
     8  to another importing distributor also holding distributing
     9  rights from the same manufacturer for another geographical area,
    10  providing such authority be contained in writing and a copy
    11  thereof be given to each of the importing distributors so
    12  affected.
    13     (B.1)  (1)  ANY PERSON IN THIS COMMONWEALTH OR ELSEWHERE WHO   <--
    14  SHALL PURCHASE OR IN ANY MANNER WHATSOEVER ACQUIRE OR OTHERWISE
    15  SUCCEED TO THE BUSINESS OF A MANUFACTURER, ASSETS OR RIGHTS TO
    16  IMPORT, MARKET, SHIP INTO THIS COMMONWEALTH OR DISTRIBUTE A
    17  BRAND OF BEER, OR TO USE AND EXPLOIT ANY TRADEMARK INCORPORATED
    18  AS PART OF A BRAND OF BEER PRODUCED BY SUCH A MANUFACTURER SHALL
    19  BE OBLIGATED TO ALL TERMS OF THE MANUFACTURER'S FRANCHISE
    20  AGREEMENTS IN EFFECT ON THE EFFECTIVE DATE OF THE PURCHASE,
    21  ACQUISITION OR SUCCESSION, OR, IF EARLIER, AT THE TIME THE
    22  AGREEMENT CONTEMPLATING THE PURCHASE, ACQUISITION OR SUCCESSION
    23  IS ACTUALLY MADE.
    24     (2)  "PURCHASE" OR "ACQUISITION," FOR PURPOSES OF THIS
    25  SECTION, INCLUDES, BUT IS NOT LIMITED TO, A PURCHASE,
    26  ACQUISITION, LEASE, LICENSE OR ASSIGNMENT OF ALL OR A
    27  CONTROLLING INTEREST IN THE CAPITAL STOCK OR OPERATING ASSETS,
    28  INCLUDING BRAND TRADEMARKS RIGHTS; MERGER; ANY CORPORATE
    29  REORGANIZATION OR CONSOLIDATION; AND ALSO, WITHOUT LIMITATION,
    30  ANY LICENSE, CROSS-LICENSE, JOINT VENTURE OR OTHER AGREEMENT OR
    19870H1000B1735                 - 102 -

     1  ARRANGEMENT, DIRECTLY OR INDIRECTLY, TRANSFERRING, SUBSTITUTING
     2  OR MATERIALLY CHANGING THE PERSON OR PERSON AUTHORIZED BY THE
     3  ONE OWNING OR CONTROLLING A BRAND OR ANY TRADEMARK AS PART OF A
     4  BRAND, TO PRODUCE, IMPORT, SHIP, MARKET OR DISTRIBUTE THE BRAND
     5  OF BEER INTO OR WITHIN THIS COMMONWEALTH.
     6     (3)  "MANUFACTURER" AS USED IN THIS SUBSECTION SHALL MEAN ANY
     7  PERSON, INCLUDING ANY AGENT OF SUCH PERSON, WHO (I) IS LICENSED
     8  AS A MANUFACTURER OF MALT OR BREWED BEVERAGES LOCATED WITHIN THE
     9  COMMONWEALTH OF PENNSYLVANIA, (II) HOLDS A DISTRIBUTOR OR
    10  IMPORTING DISTRIBUTOR LICENSE, OR (III) MANUFACTURES ANY MALT
    11  BEVERAGE, HAS TITLE TO ANY MALT BEVERAGE PRODUCTS OR HAS THE
    12  CONTRACTUAL RIGHT TO DISTRIBUTE ANY MALT BEVERAGE PRODUCT,
    13  WHETHER LICENSED IN THIS COMMONWEALTH OR NOT, WHO ENTERS INTO AN
    14  "AGREEMENT" WITH ANY IMPORTING DISTRIBUTOR LICENSED TO DO
    15  BUSINESS IN THIS COMMONWEALTH.
    16     (c)  The aforesaid licenses shall be issued only to reputable
    17  individuals, partnerships and associations who are, or whose
    18  members are, citizens of the United States and have for two
    19  years prior to the date of their applications been residents of
    20  the Commonwealth of Pennsylvania or to reputable corporations
    21  organized or duly registered under the laws of the Commonwealth
    22  of Pennsylvania. Such licenses shall be issued to corporations
    23  duly organized or registered under the laws of the Commonwealth
    24  of Pennsylvania only when it appears that all of the officers
    25  and directors of the corporation are citizens of the United
    26  States and have been residents of the Commonwealth of
    27  Pennsylvania for a period of at least two years prior to the
    28  date of application, and that at least fifty-one per centum of
    29  the capital stock of such corporation is actually owned by
    30  individuals who are citizens of the United States and have been
    19870H1000B1735                 - 103 -

     1  residents of the Commonwealth of Pennsylvania for a period of at
     2  least two years prior to the date of application: Provided, That
     3  the provisions of this subsection with respect to residence
     4  requirements shall not apply to individuals, partners, officers,
     5  directors and owners of capital stock, of corporations licensed
     6  or applying for licenses as manufacturers of malt or brewed
     7  beverages, nor shall the provisions of this subsection with
     8  respect to stockholder requirements apply to corporations
     9  licensed or applying for licenses as manufacturers of malt or
    10  brewed beverages.
    11     (d)  (1)  All distributing rights as hereinabove required
    12  shall be in writing, shall be equitable in their provisions and
    13  shall be substantially similar as to terms and conditions with
    14  all other distributing rights agreements between the
    15  manufacturer giving such agreement and its other importing
    16  distributors and distributors shall not be modified, cancelled,
    17  terminated or rescinded by the manufacturer without good cause,
    18  and shall contain a provision in substance or effect as follows:
    19  "The manufacturer recognizes that the importing distributor and
    20  distributor are free to manage their business in the manner the
    21  importing distributor and distributor deem best and that this
    22  prerogative vests in the importing distributor and distributor
    23  the exclusive right to establish a selling price, to select the
    24  brands of malt or brewed beverages they wish to handle and to
    25  determine the efforts and resources which the importing
    26  distributor and distributor will exert to develop and promote
    27  the same of the manufacturer's products handled by the importing
    28  distributor and distributor. However, the manufacturer expects
    29  that the importing distributor and distributor will price
    30  competitively the products handled by them, devote reasonable
    19870H1000B1735                 - 104 -

     1  effort and resources to the sale of such products and maintain a
     2  reasonable sales level." "Good cause" shall mean the failure by
     3  any party to an agreement, without reasonable excuse or
     4  justification, to comply substantially with an essential,
     5  reasonable and commercially acceptable requirement imposed by
     6  the other party under the terms of an agreement.
     7     (2)  After January 1, 1980, no manufacturer shall enter into
     8  any agreement with more than one distributor or importing
     9  distributor for the purpose of establishing more than one
    10  agreement for designated brand or brands of malt or brewed
    11  beverages in any one territory. Each franchise territory which
    12  is granted by a manufacturer shall be geographically contiguous.
    13     (3)  Except for discontinuance of a brand or a valid
    14  termination for good cause, the purchaser of the assets of the
    15  manufacturer as defined in this act shall become obligated to
    16  all the territorial and brand designations of the agreement in
    17  effect on the date of purchase. Purchase of assets as defined
    18  for the purposes of this act shall include, but not be limited
    19  to, the sale of stock, sale of assets, merger, lease, transfer
    20  or consolidation.
    21     (4)  The court of common pleas of the county wherein the
    22  licensed premises of the importing distributor or distributor
    23  are located is hereby vested with jurisdiction and power to
    24  enjoin the modification, rescission, cancellation or termination
    25  of a franchise or agreement between a manufacturer and an
    26  importing distributor or distributor at the instance of such
    27  importing distributor or distributor who is or might be
    28  adversely affected by such modification, rescission,
    29  cancellation or termination, and in granting an injunction the
    30  court shall provide that no manufacturer shall supply the
    19870H1000B1735                 - 105 -

     1  customers or territory of the importing distributor or
     2  distributor by servicing the territory or customers through
     3  other importing distributors or distributors or any other means
     4  while the injunction is in effect: Provided, however, That any
     5  injunction issued under this subsection shall require the
     6  posting of sufficient bond against damages arising from an
     7  injunction improvidently granted and a showing that the danger
     8  of irrevocable loss or damage is immediate and that during the
     9  pendency of such injunction the importing distributor or
    10  distributor shall continue to service the accounts of the
    11  manufacturer in good faith.
    12     (5)  The provisions of this subsection shall not apply to
    13  Pennsylvania manufacturers whose principal place of business is
    14  located in Pennsylvania unless they name or constitute a
    15  distributor or importing distributor as a primary or original
    16  supplier of their products subsequent to the effective date of
    17  this act, or unless such Pennsylvania manufacturers have named
    18  or constituted a distributor or importing distributor as a
    19  primary or original supplier of their products prior to the
    20  effective date of this act, and which status is continuing when
    21  this act becomes effective.
    22     Section 45.  Section 432 of the act, amended January 19, 1952
    23  (1951 P.L.2170, No.619), June 19, 1961 (P.L.482, No.244),
    24  October 9, 1967 (P.L.392, No.177) and May 9, 1984 (P.L.246,
    25  No.54), is reenacted and amended to read:                         <--
    26     Section 432.  Malt and Brewed Beverages Retail Licenses.--(a)
    27  Subject to the restrictions hereinafter provided in this act,
    28  and upon being satisfied of the truth of the statements in the
    29  application, that the premises and the applicant meet all the
    30  requirements of this act and the regulations of the [board]       <--
    19870H1000B1735                 - 106 -

     1  commission, that the applicant seeks a license for a reputable
     2  hotel, eating place or club, as defined in this act, the [board]  <--
     3  commission shall, in the case of a hotel or eating place, grant
     4  and issue, and in the case of a club may, in its discretion,
     5  issue or refuse the applicant a retail dispenser's license.
     6     (b)  In the case of hotels and eating places, licenses shall
     7  be issued only to reputable persons who are citizens of the
     8  United States and have for two years been residents of the
     9  Commonwealth of Pennsylvania at the date of their application,
    10  or to reputable corporations organized or duly registered under
    11  the laws of the Commonwealth of Pennsylvania, all of whose
    12  officers and directors are citizens of the United States. In the
    13  case of incorporated clubs, licenses shall be issued only to
    14  those incorporated under the laws of Pennsylvania.
    15     (c)  No retail dispenser's licenses shall be granted or
    16  renewed upon their expiration in any municipality in which the
    17  electors shall vote, as hereinafter provided, against the
    18  licensing therein of places where malt or brewed beverages may
    19  be sold for consumption on the premises where sold.
    20     (d)  The [board] commission shall, in its discretion, grant    <--
    21  or refuse any new license or the transfer of any license to a
    22  new location if such place proposed to be licensed is within
    23  three hundred feet of any church, hospital, charitable
    24  institution, school, or public playground, or if such new
    25  license or transfer is applied for a place which is within two
    26  hundred feet of any other premises which is licensed by the
    27  [board] commission, or if such new license or transfer is         <--
    28  applied for a place where the principal business conducted is
    29  the sale of liquid fuels and oil. The [board] commission shall    <--
    30  refuse any application for a new license or the transfer of any
    19870H1000B1735                 - 107 -

     1  license to a new location if, in the [board's] commission's       <--
     2  opinion, such new license or transfer would be detrimental to
     3  the welfare, health, peace and morals of the inhabitants of the
     4  neighborhood within a radius of five hundred feet of the place
     5  to be licensed. The [board] commission shall not issue new        <--
     6  licenses, except as herein otherwise provided, in any license
     7  district more than twice each license year effective from
     8  specific dates fixed by the [board] commission, and new licenses  <--
     9  shall not be granted unless the application therefor shall have
    10  been filed at least thirty days before the effective date of the
    11  license. Nothing herein contained shall prohibit the [board]      <--
    12  commission from issuing a new license for the balance of any
    13  unexpired term in any license district to any applicant in such
    14  district, who shall have become eligible to hold such license as
    15  the result of legislative enactment, when such enactment shall
    16  have taken place during the license term of that district for
    17  which application is made, or within the thirty days immediately
    18  preceding such term: And provided further, That the [board]       <--
    19  commission shall have the discretion to refuse a license to any
    20  person or to any corporation, partnership or association if such
    21  person, or any officer or director of such corporation, or any
    22  member or partner of such partnership or association shall have
    23  been convicted or found guilty of a felony within a period of
    24  five years immediately preceding the date of application for the
    25  said license.
    26     (e)  Every applicant for a new or for the transfer of an
    27  existing license to another premises not then licensed shall
    28  post, for a period of at least fifteen days beginning with the
    29  day the application is filed with the [board] commission, in a    <--
    30  conspicuous place on the outside of the premises or in a window
    19870H1000B1735                 - 108 -

     1  plainly visible from the outside of the premises for which the
     2  license is applied or at the proposed new location, a notice of
     3  such application, in such form, of such size, and containing
     4  such provisions as the [board] commission may require by its      <--
     5  regulations. Proof of the posting of such notice shall be filed
     6  with the [board] commission.                                      <--
     7     (f)  Hotel, eating places, or municipal golf course retail
     8  dispenser licensees whose sales of food and nonalcoholic
     9  beverages are equal to forty per centum (40%) or more of the
    10  combined gross sales of both food and malt or brewed beverages
    11  may sell malt or brewed beverages between the hours of eleven
    12  o'clock antemeridian on Sunday and two o'clock antemeridian on
    13  Monday upon purchase of a special annual permit from the [board]  <--
    14  commission at a fee of two hundred dollars ($200.00) per year,
    15  which shall be in addition to any other license fees. Provided
    16  further, the holder of such special annual permit may sell malt
    17  or brewed beverages after seven o'clock antemeridian and until
    18  two o'clock antemeridian of the following day, on any day on
    19  which a general, municipal, special or primary election is being
    20  held.
    21     Section 46.  Section 433 of the act is reenacted and amended
    22  to read:
    23     Section 433.  Public Service Licenses.--The [board]            <--
    24  commission may issue public service malt and brewed beverage
    25  licenses to a railroad, pullman or steamship company permitting
    26  malt or brewed beverages to be sold at retail in dining, club or
    27  buffet cars, or the dining compartments of steamships or
    28  vessels, for consumption on the trains, steamships or vessels
    29  wherever operated in the State, except when standing in stations
    30  or terminals within a municipality wherein retail sales are
    19870H1000B1735                 - 109 -

     1  prohibited. Such licenses shall only be granted to reputable
     2  persons and for fit places. The [board] commission may issue a    <--
     3  master license to railroad or pullman companies to cover the
     4  maximum number of cars which the company shall estimate that it
     5  will operate within the Commonwealth on any one day. Such
     6  licensees shall file monthly reports with the [board] commission  <--
     7  showing the maximum number of cars operated at any time on any
     8  day during the preceding month, and if it appears that more cars
     9  have been operated than covered by its license it shall
    10  forthwith remit to the [board] commission the sum of ten dollars  <--
    11  for each extra car so operated. The [board] commission shall      <--
    12  have the power to suspend or revoke any such licenses for cause
    13  after granting a hearing [thereon] before an administrative law   <--
    14  judge A HEARING EXAMINER to the licensee. Any person aggrieved    <--
    15  by the decision of the [board] commission in refusing,            <--
    16  suspending or revoking any such license may appeal to [the court
    17  of quarter sessions of Dauphin County] Commonwealth Court in the
    18  same manner as provided in this article for appeals from
    19  refusals of licenses.
    20     Section 47.  Section 433.1 of the act, added July 10, 1961
    21  (P.L.561, No.275), amended November 17, 1967 (P.L.510, No.247)
    22  and December 16, 1982 (P.L.1359, No.311), is reenacted and
    23  amended to read:
    24     Section 433.1.  Stadium or Arena Permits.--(a)  The [board]    <--
    25  commission is hereby authorized to issue, in cities of the
    26  first, second and third class, in counties of the third class
    27  and in school districts in counties of the third class, special
    28  permits allowing the holders thereof to make retail sales of
    29  malt or brewed beverages in shatterproof containers at all
    30  events on premises principally utilized for competition of
    19870H1000B1735                 - 110 -

     1  professional and amateur athletes and other types of
     2  entertainment having an available seating capacity of twelve
     3  thousand or more in cities of the first and second class and
     4  seven thousand or more and owned by the city in cities of the
     5  third class and four thousand two hundred or more and owned by
     6  counties of the third class and two thousand five hundred or
     7  more in school districts in counties of the third class:
     8  Provided, however, That in cities of the second class this
     9  section shall be applicable only to premises owned, leased or
    10  operated by any authority created under the act of July 29, 1953
    11  (P.L.1034, No.270), known as the "Public Auditorium Authorities
    12  Law." Such sales may be made only to adults and only on days
    13  when the premises are so used and only during the period from
    14  one hour before the start of and ending one-half hour after the
    15  close of the event on the premises: Provided, however, That in
    16  school districts in counties of the third class sales may be
    17  made only during professional athletic competition.
    18     (b)  The owner or lessee or a concessionaire of any such
    19  premises may make application for a permit. The aforesaid
    20  permits shall be issued only to reputable individuals,
    21  partnerships and associations, who are or whose members are
    22  citizens of the United States and have for two years prior to
    23  the date of their applications been residents of the
    24  Commonwealth of Pennsylvania, or to reputable corporations
    25  organized or duly registered under the laws of the Commonwealth
    26  of Pennsylvania, all of whose officers and directors are
    27  citizens of the United States. Each applicant shall furnish
    28  proof satisfactory to the [board] commission that he is of good   <--
    29  repute and financially responsible and that the premises upon
    30  which he proposes to do business is a proper place. The
    19870H1000B1735                 - 111 -

     1  applicant shall submit such other information as the [board]      <--
     2  commission may require. Applications shall be, in writing on
     3  forms prescribed by the [board] commission, and signed and sworn  <--
     4  to by the applicant. Every application shall be accompanied by
     5  an application fee of twenty-five dollars ($25), a permit fee of
     6  one hundred dollars ($100) and a surety bond in the amount of
     7  one thousand dollars ($1000) conditioned the same as the license
     8  bonds required by this act for retail dispenser licenses.
     9     (c)  Upon receipt of the application in proper form, the
    10  application fee, the permit fee and bond, and upon being
    11  satisfied that the applicant is of good repute and financially
    12  responsible and that the proposed place of business is proper,
    13  the [board] commission shall issue a special permit to the        <--
    14  applicant. Only one permit issued under this section shall be in
    15  effect on any such premises at any time.
    16     (d)  No permit shall be transferable or assignable. The
    17  [board] commission may by regulation fix the permit year and      <--
    18  provide for the renewal of such permits. Whenever a permit is
    19  revoked, another may be issued for the same premises to another
    20  applicant upon compliance with the provisions of this section.
    21     (e)  The [board] commission shall have the power to refuse     <--
    22  the issuance of any permit for cause, and to revoke or suspend
    23  any permit for cause or for any violation of the liquor or malt
    24  and brewed beverage laws. Any applicant or holder of a permit
    25  aggrieved by any ruling of the [board] commission or by its       <--
    26  refusal to issue a permit, or by its suspension or revocation
    27  thereof, shall have the right to a hearing and appeal therefrom
    28  in the same manner as provided in sections 464 and 471 of this
    29  act authorizing appeals from orders of the [board] commission or  <--
    30  an administrative law judge.
    19870H1000B1735                 - 112 -

     1     Section 48.  Section 434 of the act is reenacted and amended   <--
     2  to read:
     3     Section 434.  License Year.--(a)  Licenses issued under this
     4  article to distributors, importing distributors and retail
     5  dispensers shall, unless revoked in the manner provided in this
     6  act, be valid for the license year which may be established by
     7  the [board] commission for the particular license district in     <--
     8  which the license issues.
     9     (b)  Malt or brewed beverage licenses issued under this
    10  article to manufacturers and public service companies shall,
    11  unless revoked in the manner herein provided, be valid for the
    12  calendar year for which they are issued. Licenses to such
    13  manufacturers and public service companies may be issued at any
    14  time during a calendar year.
    15     Section 49.  Section 435 of the act, amended September 28,
    16  1961 (P.L.1728, No.702), is reenacted and amended to read:        <--
    17     Section 435.  Filing of Applications for Distributors',
    18  Importing Distributors' and Retail Dispensers' Licenses; Filing
    19  Fee.--Every person intending to apply for a distributor's,
    20  importing distributor's or retail dispenser's license, as
    21  aforesaid, in any municipality of this Commonwealth, shall file
    22  with the [board] commission his or its application. All such      <--
    23  applications shall be filed at a time to be fixed by the [board]  <--
    24  commission for the particular license district as set up by the
    25  [board] commission under the provisions of this act. The          <--
    26  applicant shall, at the time of filing the application and bond,
    27  pay said [board] commission the filing fee of twenty dollars      <--
    28  ($20), as hereinafter specified.
    29     Section 50.  Section 436 of the act, amended June 19, 1961
    30  (P.L.482, No.244) and June 29, 1965 (P.L.151, No.101), is
    19870H1000B1735                 - 113 -

     1  reenacted and amended to read:                                    <--
     2     Section 436.  Application for Distributors', Importing
     3  Distributors' and Retail Dispensers' Licenses.--Application for
     4  distributors', importing distributors' and retail dispensers'
     5  licenses, or for the transfer of an existing license to another
     6  premises not then licensed, shall contain or have attached
     7  thereto the following information and statements:
     8     (a)  The name and residence of the applicant and how long he
     9  has resided there, and if an association, partnership or
    10  corporation, the residences of the members, officers and
    11  directors for the period of two years next preceding the date of
    12  such application.
    13     (b)  The particular place for which the license is desired
    14  and a detailed description thereof. The description, information
    15  and plans referred to in this subsection shall show the premises
    16  or the proposed location for the construction of the premises at
    17  the time the application is made, and shall show any alterations
    18  proposed to be made thereto, or the new building proposed to be
    19  constructed after the approval by the [board] commission of the   <--
    20  application for a license, or for the transfer of an existing
    21  license to another premises not then licensed. No physical
    22  alterations, improvements or changes shall be required to be
    23  made to any hotel, eating place or club, nor shall any new
    24  building for any such purpose be required to be constructed
    25  until approval of the application for license or for the
    26  transfer of an existing license to another premises not then
    27  licensed by the [board] commission. After approval of the         <--
    28  application, the licensee shall make the physical alterations,
    29  improvements and changes to the licensed premises, or shall
    30  construct the new building in the manner specified by the
    19870H1000B1735                 - 114 -

     1  [board] commission at the time of approval. The licensee shall    <--
     2  not transact any business under the license until the [board]     <--
     3  commission has approved the completed physical alterations,
     4  improvements and changes of the licensed premises or the
     5  completed construction of the new building as conforming to the
     6  specifications required by the [board] commission at the time of  <--
     7  issuance or transfer of the license and is satisfied that the
     8  premises meet the requirements for a distributor's or importing
     9  distributor's license as set forth in this act or that the
    10  establishment is an eating place, hotel or club as defined by
    11  this act. The [board] commission may require that all such        <--
    12  alterations or construction or conformity to definition be
    13  completed within six months from the time of issuance or
    14  transfer of the license. Failure to comply with these
    15  requirements shall be considered cause for revocation of the
    16  license. No such license shall be transferable between the time
    17  of issuance or transfer of the license and the approval of the
    18  completed alterations or construction by the [board] commission   <--
    19  and full compliance by the licensee with the requirements of
    20  this act, except in the case of death of the licensee prior to
    21  full compliance with all of the aforementioned requirements, in
    22  which event the license may be transferred by the [board]         <--
    23  commission as provided in section 468 of this act for the
    24  transfer of the license in the case of death of the licensee.
    25     (c)  Place of birth of applicant, and if a naturalized
    26  citizen, where and when naturalized, and if a corporation
    27  organized or registered under the laws of the Commonwealth, when
    28  and where incorporated, with the names and addresses of each
    29  officer and director, all of whom shall be citizens of the
    30  United States; if the application is for a distributor's or
    19870H1000B1735                 - 115 -

     1  importing distributor's license and the applicant therefor is a
     2  corporation, the application shall also contain a statement of
     3  facts showing the qualifications of the corporation, as
     4  hereinbefore required, together with the names and addresses of
     5  all stockholders.
     6     (d)  Name of owner of premises and his residence.
     7     (e)  That the applicant is not, or in case of a partnership
     8  or association, that the members or partners are not, and in the
     9  case of a corporation, that the officers and directors are not,
    10  in any manner pecuniarily interested, either directly or
    11  indirectly, in the profits of any other class of business
    12  regulated under this article, except as hereinafter permitted.
    13     (f)  That applicant is the only person in any manner
    14  pecuniarily interested in the business so asked to be licensed,
    15  and that no other person shall be in any manner pecuniarily
    16  interested therein during the continuance of the license, except
    17  as hereinafter permitted.
    18     (g)  Whether applicant, or in case of a partnership or
    19  association, any member or partner thereof, or in case of a
    20  corporation, any officer or director thereof, has during the
    21  three years immediately preceding the date of said application
    22  had a license for the sale of malt or brewed beverages or
    23  spirituous and vinous liquors revoked, or has during the same
    24  period been convicted of any criminal offense, and if so, a
    25  detailed history thereof.
    26     (h)  A full description of that portion of the premises for
    27  which license is asked, and if any other business is to be
    28  conducted concurrently with the sale and distribution of malt or
    29  brewed beverages, a full history of such business, relating the
    30  nature thereof, the length of time it has so previously been
    19870H1000B1735                 - 116 -

     1  conducted by the applicant or his predecessor at such location,
     2  and such additional information as the [board] commission may     <--
     3  require.
     4     (i)  Every club applicant shall file with and as a part of
     5  its application a list of the names and addresses of its
     6  members, directors, officers, agents and employes, together with
     7  the dates of their admission, election or employment, and such
     8  other information with respect to its affairs as the [board]      <--
     9  commission shall require.
    10     (j)  The application must be verified by affidavit of
    11  applicant, and if any false statement is intentionally made in
    12  any part of the application, the affiant shall be deemed guilty
    13  of a misdemeanor and, upon conviction, shall be subject to the
    14  penalties provided by this article.
    15     Section 51.  Section 437 of the act, amended December 22,
    16  1965 (P.L.1149, No.445), is reenacted and amended to read:        <--
    17     Section 437.  Prohibitions Against the Grant of Licenses.--
    18  (a)  The [board] commission shall refuse to grant any licenses    <--
    19  unless the application therefor contains the information
    20  required by this act, and the premises meet such reasonable
    21  sanitary requirements as the [board] commission, by regulation,   <--
    22  shall prescribe.
    23     (b)  The [board] commission shall refuse to grant a license    <--
    24  to any club when it appears that the operation of such license
    25  would inure to the benefit of individual members, officers,
    26  agents or employes of the club, rather than to the benefit of
    27  the entire membership of the club.
    28     (c)  Licenses shall be granted by the [board] commission only  <--
    29  to reputable individuals, or to associations, partnerships and
    30  corporations whose members or officers and directors are
    19870H1000B1735                 - 117 -

     1  reputable individuals.
     2     (d)  No person who holds, either by appointment or election,
     3  any public office which involves the duty to enforce any of the
     4  penal laws of the United States of America or any of the penal
     5  laws of this Commonwealth or any penal ordinance or resolution
     6  of any political subdivision of this Commonwealth shall be
     7  issued any manufacturer's, importing distributor's,
     8  distributor's or retail dispenser's license, nor shall such a
     9  person have any interest, directly or indirectly, in any such
    10  license.
    11     (e)  No distributor's or importing distributor's license
    12  shall be issued for any premises in any part of which there is
    13  operated any retail license for the sale of liquor or malt or
    14  brewed beverages.
    15     (f)  No new distributor's or importing distributor's license
    16  shall hereafter be granted by the [board] commission in any       <--
    17  county of the Commonwealth where the combined number of
    18  distributor and importing distributor licenses exceeds one
    19  license for each fifteen thousand inhabitants of the county in
    20  which the license is to be issued: Provided, That a combined
    21  total of five such licenses may be granted in any county of the
    22  Commonwealth.
    23     Nothing in this subsection shall be construed as denying the
    24  right of the [board] commission to renew or to transfer existing  <--
    25  distributors' or importing distributors' licenses or to exchange
    26  a distributor's license for an importing distributor's license
    27  or to exchange an importing distributor's license for a
    28  distributor's license, upon adjustment of the applicable fee,
    29  notwithstanding that the number of such licensed places in the
    30  county shall exceed the limitation hereinbefore prescribed:
    19870H1000B1735                 - 118 -

     1  Provided, That no distributor's license or importing
     2  distributor's license shall be transferred from one county to
     3  another county so long as the quota is filled in the county to
     4  which the license is proposed to be transferred.
     5     Section 52.  Section 438 of the act is reenacted to read:
     6     Section 438.  Number and Kinds of Licenses Allowed Same
     7  Licensee.--(a)  Any retail dispenser may be granted licenses to
     8  maintain, operate or conduct any number of places for the sale
     9  of malt or brewed beverages, but a separate license must be
    10  secured for each place where malt or brewed beverages are sold.
    11     (b)  No person shall possess or be issued more than one
    12  distributor's or importing distributor's license.
    13     (c)  No person shall possess more than one class of license,
    14  except that a holder of a retail dispenser's license may also be
    15  a holder of a retail liquor license.
    16     Section 53.  Section 439 of the act, amended September 28,
    17  1961 (P.L.1728, No.702), is reenacted and amended to read:        <--
    18     Section 439.  Malt or Brewed Beverage License Fees.--No
    19  public service license and no license to any manufacturer,
    20  distributor, importing distributor or retail dispenser shall be
    21  issued under the provisions of this subdivision (B) until the
    22  licensee shall have first paid an annual license fee, as
    23  follows:
    24     (a)  In the case of a manufacturer, the license fee shall be
    25  one thousand dollars ($1,000) for each place of manufacture and
    26  shall be paid to the [board] commission. The fee for all such     <--
    27  licenses when applied for and issued on or after April 1, but
    28  prior to July 1, shall be three-fourths of the annual fee; July
    29  1, but prior to October 1, shall be one-half of the annual fee;
    30  October 1, but prior to January 1, shall be one quarter of the
    19870H1000B1735                 - 119 -

     1  annual fee.
     2     (b)  In the case of a distributor, the license fee shall be
     3  four hundred dollars ($400) and shall be paid to the [board]      <--
     4  commission.
     5     (c)  In the case of an importing distributor, the license fee
     6  shall be nine hundred dollars ($900) and shall be paid to the
     7  [board] commission.                                               <--
     8     (d)  In the case of a retail dispenser, except clubs, the
     9  license fee shall be graduated according to the population of
    10  the municipality in which the place of business is located and
    11  shall be paid to the [board] commission, as follows:              <--
    12      (1)  Less than 10,000..................................$100
    13      (2)  10,000 and more, but less than 50,000.............$150
    14      (3)  50,000 and more, but less than 100,000............$200
    15      (4)  100,000 and more, but less than 150,000...........$250
    16      (5)  150,000 and more..................................$300
    17     (e)  In the case of a club, the fee shall be twenty-five
    18  dollars in all cases and shall be paid to the [board]             <--
    19  commission.
    20     (f)  In the case of a public service license for cars, the
    21  fee shall be ten dollars per car for the maximum number of cars
    22  operated on any one day on which malt or brewed beverages are
    23  sold, to be paid to the [board] commission.                       <--
    24     (g)  In the case of a public service license for the sale of
    25  malt or brewed beverages on a boat or vessel, the fee shall be
    26  fifty dollars for each such vessel or boat and shall be paid to
    27  the [board] commission.                                           <--
    28     (h)  The fee for filing applications for licenses and for
    29  renewals shall be twenty dollars ($20) which, together with fees
    30  for transfers, shall be paid to the [board] commission.           <--
    19870H1000B1735                 - 120 -

     1     (i)  The license fees fixed by this section shall be paid
     2  before the license or renewal is issued.
     3     Section 54.  Section 440 of the act, amended August 17, 1965
     4  (P.L.346, No.182), is reenacted and amended to read:              <--
     5     Section 440.  Sales by Manufacturers of Malt or Brewed
     6  Beverages; Minimum Quantities.--No manufacturer shall sell any
     7  malt or brewed beverages for consumption on the premises where
     8  sold, nor sell or deliver any such malt or brewed beverages in
     9  other than original containers approved as to capacity by the
    10  [board] commission, nor in quantities of less than a case of      <--
    11  twenty-four containers, each container holding seven fluid
    12  ounces or more, or a case of twelve containers, each container
    13  holding twenty-four fluid ounces or more, except original
    14  containers containing one hundred twenty-eight ounces or more
    15  which may be sold separately; nor shall any manufacturer
    16  maintain or operate within the Commonwealth any place or places
    17  other than the place or places covered by his or its license
    18  where malt or brewed beverages are sold or where orders are
    19  taken.
    20     Section 55.  Section 441 of the act, amended October 23, 1959
    21  (P.L.1360, No.471), is reenacted and amended and amended to       <--
    22  read:
    23     Section 441.  Distributors' and Importing Distributors'
    24  Restrictions on Sales, Storage, Etc.--(a) No distributor or
    25  importing distributor shall purchase, receive or resell any malt
    26  or brewed beverages except in the original containers as
    27  prepared for the market by the manufacturer at the place of
    28  manufacture.
    29     (b)  No distributor or importing distributor shall sell any
    30  malt or brewed beverages in quantities of less than a case of
    19870H1000B1735                 - 121 -

     1  twenty-four containers, each container holding seven fluid
     2  ounces or more, or a case of twelve containers, each container
     3  holding twenty-four fluid ounces or more, except original
     4  containers containing one hundred twenty-eight ounces or more
     5  which may be sold separately: Provided, That no malt or brewed
     6  beverages sold or delivered shall be consumed upon the premises
     7  of the distributor or importing distributor, or in any place
     8  provided for such purpose by such distributor or importing
     9  distributor.
    10     (c)  No distributor or importing distributor shall maintain
    11  or operate any place where sales are made other than that for
    12  which the license is granted.
    13     (d)  No distributor or importing distributor shall maintain
    14  any place for the storage of malt or brewed beverages except in
    15  the same municipality in which the licensed premises is located
    16  and unless the same has been approved by the [board] commission.  <--
    17  In the event there is no place of cold storage in the same
    18  municipality, the [board] commission may approve a place of cold  <--
    19  storage in the nearest municipality.
    20     (e)  No distributor or importing distributor shall purchase,
    21  sell, resell, receive or deliver any malt or brewed beverages,
    22  except in strict compliance with the provisions of subsection
    23  (b) of section 431 of this act.
    24     Section 56.  Section 442 of the act, amended October 9, 1967
    25  (P.L.413, No.183), July 3, 1980 (P.L.348, No.88) and May 9, 1984
    26  (P.L.246, No.54), is reenacted AND AMENDED and amended to read:   <--
    27     Section 442.  Retail Dispensers' Restrictions on Purchases
    28  and Sales.--(a)  No retail dispenser shall purchase or receive
    29  any malt or brewed beverages except in original containers as
    30  prepared for the market by the manufacturer at the place of
    19870H1000B1735                 - 122 -

     1  manufacture. The retail dispenser may thereafter break the bulk
     2  upon the licensed premises and sell or dispense the same for
     3  consumption on or off the premises so licensed: Provided,
     4  however, That no retail dispenser may sell malt or brewed
     5  beverages for consumption off the premises in quantities in
     6  excess of [one hundred forty-four] ONE HUNDRED NINETY-TWO fluid   <--
     7  ounces: Provided, further, That no club licensee may sell any
     8  malt or brewed beverages for consumption off the premises where
     9  sold or to persons not members of the club.
    10     (b)  No retail dispenser shall sell any malt or brewed
    11  beverages for consumption on the licensed premises except in a
    12  room or rooms or place on the licensed premises at all times
    13  accessible to the use and accommodation of the general public,
    14  but this section shall not be interpreted to prohibit a retail
    15  dispenser from selling malt or brewed beverages in a hotel or
    16  club house in any room of such hotel or club house occupied by a
    17  bona fide registered guest or member entitled to purchase the
    18  same or to prohibit a retail dispenser from selling malt or
    19  brewed beverages in a bowling alley when no minors are present,
    20  unless minors who are present are under proper supervision as
    21  defined in section 493, where the licensed premises and bowling
    22  alley are immediately adjacent and under the same roof.
    23     (c)  For the purpose of this section any person who is an
    24  active member of another club which is chartered by the same
    25  state or national organization shall have the same rights and
    26  privileges as members of the particular club.
    27     (d)  For the purposes of this section, any person who is an
    28  active member of any volunteer firefighting company, association
    29  or group of this Commonwealth, whether incorporated or
    30  unincorporated, shall upon the approval of any club composed of
    19870H1000B1735                 - 123 -

     1  volunteer firemen licensed under this act, have the same social
     2  rights and privileges as members of such licensed club.
     3     Section 57.  Section 443 of the act is reenacted to read:
     4     Section 443.  Interlocking Business Prohibited.--(a)  No
     5  manufacturer of malt or brewed beverages and no officer or
     6  director of any such manufacturer shall at the same time be a
     7  distributor, importing distributor or retail dispenser, or an
     8  officer, director or stockholder or creditor of any distributor,
     9  importing distributor or retail dispenser, nor, except as
    10  hereinafter provided, be the owner, proprietor or lessor of any
    11  place for which a license has been issued for any importing
    12  distributor, distributor or retail dispenser, or for which a
    13  hotel, restaurant or club liquor license has been issued.
    14     (b)  No distributor or importing distributor and no officer
    15  or director of any distributor or importing distributor shall at
    16  the same time be a manufacturer, a retail dispenser or a liquor
    17  licensee, or be an officer, director, stockholder or creditor of
    18  a manufacturer, a retail dispenser or a liquor licensee, or,
    19  directly or indirectly, own any stock of, or have any financial
    20  interest in, or be the owner, proprietor or lessor of, any place
    21  covered by any other malt or brewed beverage or liquor license.
    22     (c)  No licensee licensed under this subdivision (B) of
    23  Article IV and no officer or director of such licensee shall,
    24  directly or indirectly, own any stock of, or have any financial
    25  interest in, any other class of business licensed under this
    26  subdivision.
    27     (d)  Excepting as hereinafter provided, no malt or brewed
    28  beverage manufacturer, importing distributor or distributor
    29  shall in any wise be interested, either directly or indirectly,
    30  in the ownership or leasehold of any property or in any mortgage
    19870H1000B1735                 - 124 -

     1  against the same, for which a liquor or retail dispenser's
     2  license is granted; nor shall any such manufacturer, importing
     3  distributor or distributor, either directly or indirectly, lend
     4  any moneys, credit or equivalent thereof to, or guarantee the
     5  payment of any bond, mortgage, note or other obligation of, any
     6  liquor licensee or retail dispenser, in equipping, fitting out,
     7  or maintaining and conducting, either in whole or in part, an
     8  establishment or business operated under a liquor or retail
     9  dispenser's license, excepting only the usual and customary
    10  credits allowed for returning original containers in which malt
    11  or brewed beverages were packaged for market by the manufacturer
    12  at the place of manufacture.
    13     (e)  Excepting as hereinafter provided, no manufacturer of
    14  malt or brewed beverages shall in any wise be interested, either
    15  directly or indirectly, in the ownership or leasehold of any
    16  property or any mortgage lien against the same, for which a
    17  distributor's or importing distributor's license is granted; nor
    18  shall any such manufacturer, either directly or indirectly, lend
    19  any moneys, credit, or their equivalent to, or guarantee the
    20  payment of any bond, mortgage, note or other obligation of, any
    21  distributor or importing distributor, in equipping, fitting out,
    22  or maintaining and conducting, either in whole or in part, an
    23  establishment or business where malt or brewed beverages are
    24  licensed for sale by a distributor or importing distributor,
    25  excepting only the usual credits allowed for the return of
    26  original containers in which malt or brewed beverages were
    27  originally packaged for the market by the manufacturer at the
    28  place of manufacture.
    29     (f)  No distributor, importing distributor or retail
    30  dispenser shall in anywise receive, either directly or
    19870H1000B1735                 - 125 -

     1  indirectly, any credit, loan, moneys or the equivalent thereof
     2  from any other licensee, or from any officer, director or firm
     3  member of any other licensee, or from or through a subsidiary or
     4  affiliate of another licensee, or from any firm, association or
     5  corporation, except banking institutions, in which another
     6  licensee or any officer, director or firm member of another
     7  licensee has a substantial interest or exercises a control of
     8  its business policy, for equipping, fitting out, payment of
     9  license fee, maintaining and conducting, either in whole or in
    10  part, an establishment or business operated under a
    11  distributor's, importing distributor's or retail dispenser's
    12  license, excepting only the usual and customary credits allowed
    13  for the return of original containers in which malt or brewed
    14  beverages were packaged for the market by the manufacturer at
    15  the place of manufacture.
    16     (g)  The purpose of this section is to require a separation
    17  of the financial and business interests between the various
    18  classes of business regulated by subdivision (B) of this
    19  article, and no person or corporation shall, by any device
    20  whatsoever, directly or indirectly, evade the provisions of this
    21  section. But in view of existing economic conditions, nothing
    22  contained in this section shall be construed to prohibit the
    23  ownership of property or conflicting interest by a malt or
    24  brewed beverage manufacturer of any place occupied by a
    25  distributor, importing distributor or retail dispenser after the
    26  manufacturer has continuously owned and had a conflicting
    27  interest in such place for a period of at least five years prior
    28  to the eighteenth day of July, one thousand nine hundred thirty-
    29  five.
    30     The term "manufacturer" as used in this section shall include
    19870H1000B1735                 - 126 -

     1  manufacturers of malt or brewed beverages as defined in this act
     2  and any person manufacturing any malt or brewed beverages
     3  outside of this Commonwealth.
     4     Section 58.  Section 444 of the act, amended December 12,
     5  1980 (P.L.1195, No.221) and repealed in part December 20, 1982
     6  (P.L.1409, No.326), is reenacted and amended to read:
     7     Section 444.  Malt or Brewed Beverages Manufactured Outside
     8  This Commonwealth.--(a)  In addition to compliance with all
     9  other provisions of this act, the [board] commission shall        <--
    10  require each person desiring to sell any malt or brewed
    11  beverages manufactured outside this Commonwealth to Pennsylvania
    12  licensees, and shall require each Pennsylvania licensee who
    13  desires to purchase and resell any such malt or brewed
    14  beverages, to pay to the [board] commission the same fees as are  <--
    15  required to be paid by Pennsylvania licensees or by persons or
    16  licensees in any state, territory or country outside of
    17  Pennsylvania who desires to sell malt or brewed beverages
    18  manufactured in Pennsylvania to licensees in such other state,
    19  territory or country of origin of such malt or brewed beverages
    20  not manufactured in Pennsylvania, and to observe and comply with
    21  the same regulations, prohibitions and restrictions as are
    22  required of or enforced against Pennsylvania licensees or
    23  persons who desire to purchase and resell malt or brewed
    24  beverages manufactured in Pennsylvania in such other state,
    25  territory or country of origin.
    26     (b)  In all cases where the [board] commission shall have      <--
    27  issued any reciprocal regulations or orders concerning malt or
    28  brewed beverages manufactured in any state, territory or country
    29  other than Pennsylvania, no Pennsylvania licensee shall purchase
    30  any such malt or brewed beverages if their importation has been
    19870H1000B1735                 - 127 -

     1  prohibited, or if not entirely prohibited, unless such
     2  regulations or orders have been observed and complied with by
     3  the Pennsylvania licensee and by the person from or through whom
     4  the Pennsylvania licensee desires to purchase.
     5     (c)  Any malt or brewed beverages manufactured outside of
     6  Pennsylvania which are sold, transported or possessed in
     7  Pennsylvania contrary to any such regulations or orders of the
     8  [board] commission, or without the payment of the fees herein     <--
     9  required, shall be considered contraband and shall be
    10  confiscated by the [board] commission and disposed of in the      <--
    11  same manner as any other illegal liquor or malt or brewed
    12  beverages.
    13     (d)  Upon learning of the commission by a manufacturer of
    14  malt or brewed beverages whose principal place of business is
    15  outside this Commonwealth, or by any servant, agent, employe or
    16  representative of such manufacturer, within or partly within and
    17  partly outside this Commonwealth, of any violation of this act
    18  or any laws of this Commonwealth relating to liquor, alcohol or
    19  malt or brewed beverages, or of any regulation of the [board]     <--
    20  commission adopted pursuant thereto, or of any violation of any
    21  laws of this Commonwealth or of the United States of America
    22  relating to the tax payment of liquor or malt or brewed
    23  beverages, the [board] commission shall cite such manufacturer    <--
    24  to appear before it or [its examiner] an administrative law
    25  judge not less than ten nor more than fifteen days from the date
    26  of mailing such manufacturer at his principal place of business,
    27  wherever located, by registered mail, a notice to show cause why
    28  the further importation into this Commonwealth of malt or brewed
    29  beverages manufactured by him should not be prohibited.
    30     (e)  Upon such hearing, whether or not an appearance was made
    19870H1000B1735                 - 128 -

     1  by such outside manufacturer, if satisfied that any such
     2  violation has occurred, the [board] commission is specifically    <--
     3  empowered and directed to issue an order imposing a fine upon
     4  such outside manufacturer of not less than five hundred dollars
     5  ($500) or more than ten thousand dollars ($10,000), or
     6  prohibiting the importation of malt or brewed beverages
     7  manufactured by such outside manufacturer into this Commonwealth
     8  for a period not exceeding three years, or both. Such fine or
     9  prohibition shall not go into effect until twenty days have
    10  elapsed from the date of notice of issuance of the [board's]      <--
    11  commission's order.
    12     (f)  If, after hearing, the [board] commission prohibits the   <--
    13  importation of malt or brewed beverages manufactured by such
    14  outside manufacturer into this Commonwealth, notice of such
    15  [board] commission action shall be given immediately to such      <--
    16  manufacturer and to all persons licensed to import malt or
    17  brewed beverages within this Commonwealth by mailing a copy of
    18  such order to such manufacturer at its principal place of
    19  business, wherever located, and to such licensees at their
    20  licensed premises. Thereafter, it shall be unlawful for any
    21  person licensed to import malt or brewed beverages within this
    22  Commonwealth to purchase any malt or brewed beverages
    23  manufactured by such outside manufacturer during the term of
    24  such prohibition.
    25     (g)  Any violation of such prohibitory order shall be a
    26  misdemeanor and shall be punished in the same manner as herein
    27  provided for any other violation of this act, and shall also
    28  constitute grounds for revocation or suspension of a license to
    29  import malt or brewed beverages.
    30     (h)  In all such cases, the [board] commission shall file of   <--
    19870H1000B1735                 - 129 -

     1  record at least a brief statement in the form of an opinion of
     2  the reasons for the ruling or order.
     3     Section 58.1.  The act is amended by adding a section to
     4  read:
     5     Section 445.  Limited Breweries.--(a)  Holders of a limited    <--
     6  brewery license may:
     7     SECTION 445.  BREWERIES.--HOLDERS OF A BREWERY LICENSE MAY:    <--
     8     (1)  Sell malt or brewed beverages produced AND OWNED by the   <--
     9  limited brewery on the licensed premises under such conditions    <--
    10  and regulations as the commission BOARD may enforce, to the       <--
    11  commission, to individuals for consumption on or off the          <--
    12  premises and to hotel, restaurant, club and public service
    13  liquor licensees.
    14     (2)  Operate a restaurant or brewery pub on the licensed
    15  premises under such conditions and regulations as the commission  <--
    16  BOARD may enforce.                                                <--
    17     (b)  The term "limited brewery" as used in this section shall  <--
    18  include manufacturers of malt or brewed beverages produced
    19  within this Commonwealth not exceeding twenty thousand barrels
    20  per year.
    21     Section 59.  The heading of Subdivision (C) of Article IV of
    22  the act is reenacted to read:
    23      (C)  General Provisions Applying to Both Liquor and Malt
    24                       and Brewed Beverages.
    25     Section 60.  Section 461 of the act, amended June 19, 1961
    26  (P.L.484, No.245), September 2, 1971 (P.L.429, No.103), December
    27  17, 1982 (P.L.1390, No.319) and May 2, 1986 (P.L.141, No.44), is
    28  reenacted and amended to read:                                    <--
    29     Section 461.  Limiting Number of Retail Licenses To Be Issued
    30  In Each Municipality.--(a)  No licenses shall hereafter be
    19870H1000B1735                 - 130 -

     1  granted by the [board] commission for the retail sale of malt or  <--
     2  brewed beverages or the retail sale of liquor and malt or brewed
     3  beverages in excess of one of such licenses of any class for
     4  each two thousand inhabitants in any municipality, exclusive of
     5  licenses granted to airport restaurants, municipal golf courses,
     6  hotels, privately-owned public golf courses, as defined in this
     7  section, and clubs; but at least one such license may be granted
     8  in each municipality and in each part of a municipality where
     9  such municipality is split so that each part thereof is
    10  separated by another municipality, except in municipalities
    11  where the electors have voted against the granting of any retail
    12  licenses and except in that part of a split municipality where
    13  the electors have voted against the granting of any retail
    14  licenses. Nothing contained in this section shall be construed
    15  as denying the right to the [board] commission to renew or to     <--
    16  transfer existing retail licenses of any class notwithstanding
    17  that the number of such licensed places in a municipality shall
    18  exceed the limitation hereinbefore prescribed; but where such
    19  number exceeds the limitation prescribed by this section, no new
    20  license, except for hotels, municipal golf courses, airport
    21  restaurants, privately-owned public golf courses and privately-
    22  owned private golf course licensees, as defined in this section,
    23  shall be granted so long as said limitation is exceeded.
    24     (b)  The [board] commission shall have the power to increase   <--
    25  the number of licenses in any such municipality which in the
    26  opinion of the [board] commission is located within a resort      <--
    27  area.
    28     (c)  The word "hotel" as used in this section shall mean any
    29  reputable place operated by a responsible person of good
    30  reputation where the public may, for a consideration, obtain
    19870H1000B1735                 - 131 -

     1  sleeping accommodations, and which shall have the following
     2  number of bedrooms and requirements in each case--at least one-
     3  half of the required number of bedrooms shall be regularly
     4  available to transient guests seven days weekly, except in
     5  resort areas; at least one-third of such bedrooms shall be
     6  equipped with hot and cold water, a lavatory, commode, bathtub
     7  or shower and a clothes closet; and an additional one-third of
     8  the total of such required rooms shall be equipped with lavatory
     9  and commode:
    10     (1)  In municipalities having a population of less than three
    11  thousand, at least twelve permanent bedrooms for the use of
    12  guests.
    13     (2)  In municipalities having a population of three thousand
    14  and more but less than ten thousand inhabitants, at least
    15  sixteen permanent bedrooms for the use of guests.
    16     (3)  In municipalities having a population of ten thousand
    17  and more but less than twenty-five thousand inhabitants, at
    18  least thirty permanent bedrooms for the use of guests.
    19     (4)  In municipalities having a population of twenty-five
    20  thousand and more but less than one hundred thousand
    21  inhabitants, at least forty permanent bedrooms for the use of
    22  guests.
    23     (5)  In municipalities having a population of one hundred
    24  thousand and more inhabitants, at least fifty permanent bedrooms
    25  for the use of guests.
    26     (6)  A public dining room or rooms operated by the same
    27  management accommodating at least thirty persons at one time and
    28  a kitchen, apart from the dining room or rooms, in which food is
    29  regularly prepared for the public.
    30     (7)  Each room to be considered a bedroom under the
    19870H1000B1735                 - 132 -

     1  requirements of this section shall have an area of not less than
     2  eighty square feet and an outside window.
     3     (8)  The provisions of this subsection (c) shall not apply to
     4  hotel licenses granted prior to the first day of September, one
     5  thousand nine hundred forty-nine, or that have been granted on
     6  any application made and pending prior to said date, nor to any
     7  renewal or transfer thereof, or hotels under construction or for
     8  which a bona fide contract had been entered into for
     9  construction prior to said date. In such cases, the provisions
    10  of section one of the act, approved the twenty-fourth day of
    11  June, one thousand nine hundred thirty-nine (Pamphlet Laws 806),
    12  shall continue to apply.
    13     (d)  "Airport restaurant," as used in this section, shall
    14  mean restaurant facilities at any airport for public
    15  accommodation, which are owned or operated directly or through
    16  lessees by the Commonwealth of Pennsylvania, by any municipal
    17  authority, county or city, either severally or jointly, with any
    18  other municipal authority, county or city, but shall not include
    19  any such restaurant facilities at any airport situated in a
    20  municipality where by vote of the electors the retail sale of
    21  liquor and malt or brewed beverages is not permitted.
    22     (e)  "Municipal golf course" as used in this section shall
    23  mean the restaurant facilities at any municipal golf course open
    24  for public accommodation, which are owned or operated directly
    25  or through lessees by a county, municipality or a municipal
    26  authority, severally or jointly with any other county,
    27  municipality or municipal authority, including any such
    28  restaurant facilities at any municipal golf course situate in a
    29  municipality where by vote of the electors the retail sale of
    30  liquor and malt and brewed beverages is not permitted.
    19870H1000B1735                 - 133 -

     1     (e.1)  "Privately-owned public golf course" as used in this
     2  section shall mean the restaurant facilities at any privately-
     3  owned golf course open for public accommodation.
     4     (e.2)  "Privately-owned private golf course" as used in this
     5  section shall mean the clubhouse at any privately-owned golf
     6  course as defined in section 102 open for private membership
     7  accommodations only as a club as defined in section 102. The
     8  license to be issued in this instance shall be a club license.
     9     (f)  The provisions of subsection (a) which apply to
    10  privately-owned public golf courses shall not apply to the owner
    11  of such course who has, within three years prior to the
    12  effective date of this amendatory act or at any time after the
    13  effective date of this amendatory act, sold or transferred a
    14  regularly issued license for such course.
    15     Section 61.  Section 461.1 of the act, added December 12,
    16  1980 (P.L.1195, No.221), is reenacted and amended to read:        <--
    17     Section 461.1.  Incorporated Units of National Veterans'
    18  Organizations.--(a)  The [board] commission shall have the        <--
    19  authority to issue new licenses to incorporated units of
    20  national veterans' organizations, as defined herein, in
    21  municipalities where the number of licenses exceeds the
    22  limitation prescribed by section 461.
    23     (b)  The term "national veterans' organization" shall mean
    24  any veterans' organization having a national charter.
    25     The term "incorporated unit of a national veterans'
    26  organization" shall mean any incorporated post, branch, camp,
    27  detachment, lodge or other subordinate unit of a national
    28  veterans' organization having one hundred or more paid up
    29  members and organized for a period of at least three years prior
    30  to filing the application for a license.
    19870H1000B1735                 - 134 -

     1     (c)  When the charter of an incorporated unit of a national
     2  veterans' organization is suspended or revoked, the retail
     3  license of the organization shall also be suspended or revoked.
     4  The retail license of an incorporated unit of a national
     5  veterans' organization is not transferable to any other
     6  organization or person.
     7     Section 62.  Section 462 of the act is reenacted and amended   <--
     8  to read:
     9     Section 462.  Licensed Places May Be Closed During Period of
    10  Emergency.--The [board] commission may, with the approval of the  <--
    11  Governor,
    12     (a)  Temporarily close all licensed places within any
    13  municipality during any period of emergency proclaimed to be
    14  such by the Governor.
    15     (b)  Advance by one hour the hours prescribed in this act as
    16  the hours during which liquor and malt or brewed beverages may
    17  be sold in any municipality during such part of the year when
    18  daylight saving time may be observed generally in such
    19  municipality.
    20     Section 63.  Section 463 of the act, amended November 17,
    21  1967 (P.L.510, No.247), March 23, 1972 (P.L.122, No.46) and May
    22  9, 1984 (P.L.246, No.54), is reenacted and amended to read:       <--
    23     Section 463.  Places of Amusement Not To Be Licensed;
    24  Penalty.--(a)  No license for the sale of liquor or malt or
    25  brewed beverages in any quantity shall be granted to the
    26  proprietors, lessees, keepers or managers of any theater,
    27  circus, museum or other place of amusement, nor shall any house
    28  be licensed for the sale of liquor or malt or brewed beverages
    29  which has passage or communication to or with any theater,
    30  circus, museum or other place of amusement, and any license
    19870H1000B1735                 - 135 -

     1  granted contrary to this act shall be null and void. Nothing
     2  contained in this section shall be construed as denying to the
     3  [board] commission the right to grant a restaurant liquor         <--
     4  license regardless of quota restrictions to the owner or
     5  operator of a restaurant in a building on a plot of ground owned
     6  or possessed under lease by a corporation incorporated under the
     7  laws of this Commonwealth and used principally by such
     8  corporation for holding outdoor sport events wherein such events
     9  are held under a license issued as provided by law to such
    10  corporation by a department, board or commission of the
    11  Commonwealth of Pennsylvania. The restaurant liquor license
    12  aforementioned shall be subject to all the conditions and
    13  restrictions herein applicable to restaurant liquor licenses,
    14  except the above prohibition against any passageway or
    15  communication between such licensed premises and the place of
    16  amusement.
    17     Nothing contained in this act shall be construed as denying
    18  to the [board] commission the right to grant a new restaurant     <--
    19  liquor license, regardless of quota restrictions, at any time,
    20  to the owner or operator of a restaurant in a building or plot
    21  of ground having a seating capacity in excess of twenty-five
    22  thousand, used principally for holding automobile races.
    23     (a.1)  Nothing contained in subsection (a) of this section or
    24  in section 102 of this act shall be construed as denying to the
    25  [board] commission the right to grant a club or restaurant        <--
    26  liquor or malt and brewed beverage license to a club
    27  incorporated in this Commonwealth which has been in existence
    28  less than one year prior to making application under this
    29  section or to a restaurant either of which has a clubhouse or
    30  restaurant located in a stadium or arena having an available
    19870H1000B1735                 - 136 -

     1  seating capacity of twelve thousand or more and owned and
     2  operated by or pursuant to an agreement with any city of the
     3  first class or created and operated under and in compliance with
     4  the act of July 29, 1953 (P.L.1034), known as the "Public
     5  Auditorium Authorities Law," and used principally for events at
     6  which athletes compete or other types of performers entertain.
     7  The club or restaurant liquor or malt and brewed beverage
     8  license aforementioned shall be subject to all the conditions
     9  and restrictions applicable to such licenses and licenses for
    10  places of amusement, except the above prohibition against any
    11  passageway or communication between such licensed premises and
    12  the place of amusement.
    13     (a.2)  Nothing contained in this act shall be construed to
    14  prevent the holder of a hotel, restaurant liquor or malt and
    15  brewed beverage license from selling liquor and malt or brewed
    16  beverages in a bowling alley, or other recreational areas
    17  including, but no limited to, game rooms and video arcade areas
    18  of hotels, when no minors are present, unless minors who are
    19  present are under proper supervision as defined in section 493,
    20  where the restaurant, bowling alley, or other recreational areas
    21  including, but not limited to, game rooms and video arcade areas
    22  of hotels are immediately adjacent and under the same roof. The
    23  restaurant liquor or malt and brewed beverage licensee
    24  aforementioned shall be subject to all the conditions and
    25  restrictions applicable to such restaurant licenses except the
    26  above prohibition against any passageway or communication
    27  between a licensed premise and a place of amusement.
    28     (b)  Any proprietor, lessee, keeper or manager of any
    29  theater, circus, museum or other place of amusement, or any
    30  other person who shall violate the provisions of this section,
    19870H1000B1735                 - 137 -

     1  shall be guilty of a misdemeanor and, upon conviction thereof,
     2  shall be sentenced to pay a fine of one hundred dollars and to
     3  undergo an imprisonment of not less than thirty days.
     4     Section 64.  Section 464 of the act, amended June 3, 1971
     5  (P.L.118, No.6), is reenacted and amended to read:
     6     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
     7  Transfers; Appeals.--(a)  The [board] commission may of its own   <--
     8  motion, and shall upon the written request of any applicant for
     9  club, hotel or restaurant liquor license, or any applicant for
    10  any malt or brewed beverage license other than a public service
    11  license, or for renewal or transfer thereof, whose application
    12  for such license, renewal or transfer has been refused, fix a
    13  time and place for hearing of such application for license or
    14  for renewal or transfer thereof, notice of which hearing shall
    15  be mailed to the applicant at the address given in his
    16  application. Such hearing shall be before [the board, a member
    17  thereof, or an examiner designated by the board] an               <--
    18  administrative law judge A HEARING EXAMINER DESIGNATED BY THE     <--
    19  BOARD. At such hearing, the [board] commission shall present its  <--
    20  reasons for its refusal or withholding of license, renewal or
    21  transfer thereof. The applicant may appear in person or by
    22  counsel, may cross-examine the witnesses for the [board]          <--
    23  commission and may present evidence which shall likewise be
    24  subject to cross-examination by the [board] commission. Such      <--
    25  hearing shall be stenographically recorded. The [examiner]        <--
    26  administrative law judge shall thereafter report to the [board]   <--
    27  commission upon such hearing. The [board] commission shall        <--
    28  thereupon grant or refuse the license, renewal or transfer
    29  thereof. In considering the renewal of a license, the [board]     <--
    30  commission shall not refuse any such renewal on the basis of the
    19870H1000B1735                 - 138 -

     1  propriety of the original issuance or any prior renewal of such
     2  license. If the [board] commission shall refuse such license,     <--
     3  renewal or transfer following such hearing, notice in writing of
     4  such refusal shall be mailed to the applicant at the address
     5  given in his application. In all such cases, the [board]          <--
     6  commission shall file of record at least a brief statement in
     7  the form of an opinion of the reasons for the ruling or order
     8  and furnish a copy thereof to the applicant. Any applicant who
     9  has appeared [before the board or any agent thereof] at any
    10  hearing, as above provided, who is aggrieved by the refusal of
    11  the [board] commission to issue any such license or to renew or   <--
    12  transfer any such license may appeal, or any church, hospital,
    13  charitable institution, school or public playground located
    14  within three hundred feet of the premises applied for, aggrieved
    15  by the action of the [board] commission in granting the issuance  <--
    16  of any such license or the transfer of any such license, may
    17  take an appeal limited to the question of such grievance, within
    18  twenty days from date of refusal or grant, to the court of
    19  [quarter sessions] common pleas of the county in which the
    20  premises applied for is located [or the county court of
    21  Allegheny County]. Such appeal shall be upon petition of the
    22  aggrieved party, who shall serve a copy thereof upon the [board]  <--
    23  commission, whereupon a hearing shall be held upon the petition
    24  by the court upon ten days' notice to the [board[, which shall    <--
    25  be represented in the proceeding by the Department of Justice]
    26  commission. The said appeal shall act as a supersedeas unless     <--
    27  upon sufficient cause shown the court shall determine otherwise.
    28  The court shall hear the application de novo on questions of
    29  fact, administrative discretion and such other matters as are
    30  involved, at such time as it shall fix, of which notice shall be
    19870H1000B1735                 - 139 -

     1  given to the [board] commission. The court shall either sustain   <--
     2  or over-rule the action of the [board] commission and either      <--
     3  order or deny the issuance of a new license or the renewal or
     4  transfer of the license to the applicant.
     5     (b)  [The jurisdiction of the county court of Allegheny        <--
     6  County conferred hereby shall be exclusive within the
     7  territorial limits of its jurisdiction.]                          <--
     8     Section 65.  Sections 465 and 466 of the act are reenacted
     9  and amended to read:                                              <--
    10     Section 465.  All Licensees to Furnish Bond.--(a)  No license
    11  shall be issued to any applicant under the provisions of this
    12  article until such applicant has filed with the [board]           <--
    13  commission an approved bond and a warrant of attorney to confess
    14  judgment payable to the Commonwealth of Pennsylvania in the
    15  amount hereinafter prescribed.
    16     (b)  Bonds of all such applicants shall have as surety a
    17  surety company authorized to do business in this Commonwealth,
    18  or shall have deposited therewith, as collateral security, cash
    19  or negotiable obligations of the United States of America or the
    20  Commonwealth of Pennsylvania in the same amount as herein
    21  provided for the penal sum of bonds. In all cases where cash or
    22  securities in lieu of other surety have been deposited with the
    23  [board] commission, the depositor shall be permitted to continue  <--
    24  the same deposit from year to year on each renewal of license,
    25  but in no event shall he be permitted to withdraw his deposit
    26  during the time he holds said license, or until six months after
    27  the expiration of the license held by him, or while revocation
    28  proceedings are pending against such license. All cash or
    29  securities received by the [board] commission in lieu of other    <--
    30  surety shall be turned over by the [board] commission to the      <--
    19870H1000B1735                 - 140 -

     1  State Treasurer and held by him. The State Treasurer shall repay
     2  or return money or securities deposited with him to the
     3  respective depositors only on the order of the [board]            <--
     4  commission.
     5     (c)  No such bond shall be accepted until approved by the
     6  [board] commission. All such bonds shall be conditioned for the   <--
     7  faithful observance of all the laws of this Commonwealth
     8  relating to liquor, alcohol and malt or brewed beverages and the
     9  regulations of the [board] commission. All bonds shall be         <--
    10  retained by the [board] commission.                               <--
    11     (d)  The penal sum of the respective bonds filed under the
    12  provisions of this section shall be as follows:
    13     (1)  Manufacturers of malt or brewed beverages, ten thousand
    14  dollars ($10,000.00) for each place at which the licensee is
    15  authorized to manufacture.
    16     (2)  Liquor importers, ten thousand dollars ($10,000.00) for
    17  each license.
    18     (3)  Sacramental wine licensees, ten thousand dollars
    19  ($10,000.00).
    20     (4)  Importing distributors of malt or brewed beverages, two
    21  thousand dollars ($2,000.00).
    22     (5)  Hotel, restaurant, club and public service liquor
    23  licensees, two thousand dollars ($2,000.00), but in the case of
    24  a railroad or pullman company, such penal sum shall cover every
    25  dining, club or buffet car of such company operated under such
    26  license.
    27     (6)  Distributors of malt or brewed beverages, one thousand
    28  dollars ($1,000.00).
    29     (7)  Retail dispensers and public service malt or brewed
    30  beverage licensees, one thousand dollars ($1,000.00) for each
    19870H1000B1735                 - 141 -

     1  place at which the licensee is authorized to sell malt or brewed
     2  beverages, except that in the case of railroad or pullman
     3  companies, said penal sum shall be one thousand dollars
     4  ($1,000.00), irrespective of the number of licensed cars
     5  operated by the company.
     6     (e)  Every such bond may be forfeited when a license is
     7  revoked and shall be turned over to the Attorney General for
     8  collection if and when the licensee's license shall have been
     9  revoked and his bond forfeited as provided in this act.
    10     Section 466.  Disposition of Cash and Securities Upon
    11  Forfeiture of Bond.--After notice from the [board] commission     <--
    12  that any of the aforesaid bonds have been forfeited, the State
    13  Treasurer shall immediately pay into The State Stores Fund all
    14  cash deposited as collateral with such bond, and when securities
    15  have been deposited with such bond, the State Treasurer shall
    16  sell, at private sale, at not less than the prevailing market
    17  price, any such securities so deposited as collateral with such
    18  forfeited bond. The State Treasurer shall thereafter deposit in
    19  The State Stores Fund the net amount realized from the sale of
    20  such securities, except that if the amount so realized, after
    21  deducting proper costs and expenses, is in excess of the penal
    22  amount of the bond, such excess shall be paid over by him to the
    23  obligor on such forfeited bond.
    24     Section 65.1.  Section 467 of the act is reenacted to read:
    25     Section 467.  Display of License.--Every license issued under
    26  this article shall be constantly and conspicuously exposed under
    27  transparent substance on the licensed premises and no license
    28  shall authorize sales until this section has been complied with.
    29     Section 66.  Section 468 of the act, amended November 26,
    30  1978 (P.L.1389, No.326) and June 24, 1982 (P.L.624, No.176), is
    19870H1000B1735                 - 142 -

     1  reenacted and amended to read:
     2     Section 468.  Licenses Not Assignable; Transfers.--(a)
     3  Licenses issued under this article may not be assigned. The
     4  [board] commission, upon payment of the transfer filing fee and   <--
     5  the execution of a new bond, is hereby authorized to transfer
     6  any license issued by it under the provisions of this article
     7  from one person to another or from one place to another, or
     8  both, within the same municipality, and if the applicant is a
     9  unit of a nonprofit nationally chartered club, the [board]        <--
    10  commission is hereby authorized to transfer such license to a
    11  place in any other municipality within the same county if the
    12  sale of liquor or malt and brewed beverages are legal in such
    13  other municipality as the [board] commission may determine.       <--
    14  Prior to the approval of an application for transfer by a unit
    15  of a nonprofit nationally chartered club the [board] commission   <--
    16  shall make an affirmative finding, upon proof submitted by the
    17  applicant, and after investigation by the [board] commission,     <--
    18  that at the time the application for transfer is made the club
    19  continues to hold a valid national charter and continues to
    20  function in fact as a club as defined in section 102. The
    21  [board] commission, in its discretion, may transfer an existing   <--
    22  restaurant retail dispenser or club license from one
    23  municipality to another in the same county regardless of the
    24  quota limitations provided for in this act, if sales of liquor
    25  or malt and brewed beverages are legal in such other
    26  municipality and if the restaurant retail dispenser or club lost
    27  the use of the building in which it was located due to
    28  governmental exercise of the right of eminent domain and no
    29  other suitable building can be found in the first municipality.
    30  In the case of distributor and importing distributor licenses,
    19870H1000B1735                 - 143 -

     1  the [board] commission may transfer any such license from its     <--
     2  place in a municipality to a place in any other municipality
     3  within the same county, or from one place to another place
     4  within the same municipality, or exchange a distributor license
     5  for an importing distributor license or an importing distributor
     6  license for a distributor license, if the building for which the
     7  license is to be issued has, in the case of an importing
     8  distributor license, an area under one roof of two thousand five
     9  hundred square feet and, in the case of a distributor license,
    10  an area under one roof of one thousand square feet: And
    11  provided, That, in the case of all transfers of distributor or
    12  importing distributor licenses, whether from a place within the
    13  same municipality to another place within the same municipality
    14  or from a place in a municipality to a place in any other
    15  municipality within the same county, and, in the case of an
    16  exchange of a distributor license for an importing distributor
    17  license or an importing distributor license for a distributor
    18  license, the premises to be affected by the transfer or exchange
    19  shall contain an office separate and apart from the remainder of
    20  the premises to be licensed for the purpose of keeping records,
    21  required by the [board] commission, adequate toilet facilities    <--
    22  for employes of the licensee and an entrance on a public
    23  thoroughfare: Provided, however, That in the event that the
    24  majority of the voting electors of a municipality, at an
    25  election held under the provisions of any law so empowering them
    26  to do, shall vote against the issuance of distributor or
    27  importing distributor licenses in such municipality, the [board]  <--
    28  commission is hereby authorized to transfer any such distributor
    29  or importing distributor license from its place in such
    30  municipality to a place in any other municipality within the
    19870H1000B1735                 - 144 -

     1  same county, upon application prior to the expiration of any
     2  such license and upon payment of the transfer filing fee and the
     3  execution of a new bond; but no transfer shall be made to a
     4  person who would not have been eligible to receive the license
     5  originally nor for the transaction of business at a place for
     6  which the license could not lawfully have been issued
     7  originally, nor, except as herein provided, to a place as to
     8  which a license has been revoked. No license shall be
     9  transferred to any place or property upon which is located as a
    10  business the sale of liquid fuels and oil. Except in cases of
    11  emergency such as death, serious illness, or circumstances
    12  beyond the control of the licensee, as the [board] commission     <--
    13  may determine such circumstances to justify its action,
    14  transfers of licenses may be made only at times fixed by the
    15  [board] commission. In the case of the death of a licensee, the   <--
    16  [board] commission may transfer the license to the surviving      <--
    17  spouse or personal representative or to a person designated by
    18  him. From any refusal to grant a transfer or upon the grant of
    19  any transfer, the party aggrieved shall have the right of appeal
    20  to the proper court in the manner hereinbefore provided. The      <--
    21  commission shall not authorize the transfer of any license under
    22  this subsection where the application for transfer has been
    23  denied by an administrative law judge pursuant to section 404.
    24     (b.1)  In the event that any person to whom a license shall
    25  have been issued under the provisions of this article shall
    26  become insolvent, make an assignment for the benefit of
    27  creditors, become bankrupt by either voluntary or involuntary
    28  action, the license of such person shall be immediately placed
    29  in safekeeping with the [board] commission for the balance of     <--
    30  the term of the license and for an additional period of one year
    19870H1000B1735                 - 145 -

     1  upon application to the [board] commission by the trustee,        <--
     2  receiver, or assignee. The trustee, receiver, or assignee shall
     3  have, during said period of safekeeping, the same rights,
     4  benefits and obligations as to the license as the person to whom
     5  the license had been issued, including the right to transfer the
     6  license subject to the approval of the [board] commission. The    <--
     7  license shall continue as a personal privilege granted by the
     8  [board] commission and nothing herein shall constitute the        <--
     9  license as property.
    10     (c)  (1)  The term "nonprofit nationally chartered club"
    11  shall mean any club which does not contemplate pecuniary gain or
    12  profit, incidental or otherwise, having a national charter.
    13     (2)  The term "unit of a nonprofit nationally chartered club"
    14  shall mean any post, branch, lodge or other subordinate unit of
    15  a nonprofit nationally chartered club.
    16     (D)  THE LICENSE SHALL CONSTITUTE A PRIVILEGE BETWEEN THE      <--
    17  BOARD AND THE LICENSEE. AS BETWEEN THE LICENSEE AND THIRD
    18  PARTIES, THE LICENSE SHALL CONSTITUTE PROPERTY.
    19     Section 67.  Section 469 of the act, amended September 28,
    20  1961 (P.L.1728, No.702), is reenacted and amended to read:
    21     Section 469.  Applications for Transfers; Fees.--(a)  Every
    22  applicant for a transfer of a license under the provisions of
    23  this article shall file a written application with the [board]    <--
    24  commission, together with a filing fee of thirty dollars ($30)
    25  if the license to be transferred is a liquor license, and twenty
    26  dollars ($20) if the license is a malt or brewed beverage
    27  license. Such application shall be is such form and shall be
    28  filed at such times as the [board] commission shall in its        <--
    29  regulations prescribe. Each such applicant shall also file an
    30  approved bond as required on original applications for such
    19870H1000B1735                 - 146 -

     1  licenses.
     2     (b)  Whenever any license is transferred, no license or other
     3  fees shall be required from the persons to whom such transfer is
     4  made for the balance of the then current license year, except
     5  the filing fee as herein provided.
     6     Section 68.  Section 470 of the act, amended August 1, 1969
     7  (P.L.219, No.87), is reenacted and amended 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 a new bond, requisite license and filing fees at least
    12  sixty days before the expiration date of same: Provided,
    13  however, That the [board] commission, in its discretion, may      <--
    14  accept a renewal application filed less than sixty days before
    15  the expiration date of the license with the required bond and
    16  fees, upon reasonable cause shown and the payment of an
    17  additional filing fee of one hundred dollars ($100.00) for late
    18  filing: And provided further, That except where the failure to
    19  file a renewal application or before the expiration date has
    20  created a license quota vacancy after said expiration date which
    21  has been filled by the issuance of a new license, after such
    22  expiration date, but before the [board] commission has received   <--
    23  a renewal application within the time prescribed herein the
    24  [board] commission, in its discretion, may, after hearing,        <--
    25  accept a renewal application filed within ten months after the
    26  expiration date of the license with the required bond and fees
    27  upon the payment of an additional filing fee of two hundred
    28  fifty dollars ($250.00) for late filing. Where any such renewal
    29  application is filed less than sixty days before the expiration
    30  date, or subsequent to the expiration date, no license shall
    19870H1000B1735                 - 147 -

     1  issue upon the filing of the renewal application until the
     2  matter is finally determined by the [board] commission and if an  <--
     3  appeal is taken from the [board's] commission's action the        <--
     4  courts shall not order the issuance of the renewal license until
     5  final determination of the matter by the courts. A renewal
     6  application will not be considered filed unless accompanied by a
     7  new bond and the requisite filing and license fees and any
     8  additional filing fee required by this section. Unless the
     9  [board] commission shall have given ten days' previous notice to  <--
    10  the applicant of objections to the renewal of his license, based
    11  upon violation by the licensee or his servants, agents or
    12  employes of any of the laws of the Commonwealth or regulations
    13  of the [board] commission relating to the manufacture,            <--
    14  transportation, use, storage, importation, possession or sale of
    15  liquors, alcohol or malt or brewed beverages, or the conduct of
    16  a licensed establishment, or unless the applicant has by his own
    17  act become a person of ill repute, or unless the premises do not
    18  meet the requirements of this act or the regulations of the
    19  [board] commission, the license of a licensee shall be renewed.   <--
    20     (b)  In cases where a licensee or his servants, agents or
    21  employes are arrested, charged with violating any of the laws of
    22  this Commonwealth relating to liquor, alcohol or malt or brewed
    23  beverages, and where the [board] commission has on file in such   <--
    24  cases reports of [its] enforcement officers or investigators of
    25  the enforcement bureau or from other sources that a licensee or
    26  his servants, agents or employes have violated any of the
    27  aforementioned laws and a proceeding to revoke such licensee's
    28  license is or is about to be instituted, and such arrest occurs
    29  or report of violations is received or revocation proceeding
    30  instituted or about to be instituted during the time a renewal
    19870H1000B1735                 - 148 -

     1  application of such license in pending before the [board]         <--
     2  commission, the [board] commission may, in its discretion, renew  <--
     3  the license, notwithstanding such alleged violations, but such
     4  renewal license may be revoked if and when the licensee or any
     5  of his servants, agents or employes are convicted of or plead
     6  guilty to violations under the previous license, as aforesaid,
     7  or if and when such previous license is for any reason revoked.
     8     In the event such renewal license is revoked by the [board]    <--
     9  commission, neither the license fee paid for such license nor
    10  any part thereof shall be returned to the licensee, but the
    11  license bond filed with the application for such renewal of
    12  license shall not be forfeited.
    13     [(c)  Notwithstanding anything to the contrary in this
    14  section, any individual who holds a restaurant or hotel liquor
    15  license or a retail dispenser (hotel or eating place) malt or
    16  brewed beverage license in effect at the time such individual
    17  enters the armed forces of the United States of America, may
    18  surrender to the board for safekeeping the said license and, if
    19  surrendered, shall furnish the board with documentary evidence
    20  as to his entering such armed forces. Upon surrender of the
    21  license, the board shall, without the filing of an application
    22  for renewal or surety bond, the payment of filing and license
    23  fees, renew the said license from year to year and hold the same
    24  in its possession for the benefit of such licensee. A license so
    25  renewed by the board shall to all intents and purposes be
    26  considered as in full force and effect, notwithstanding the
    27  licensee is not exercising the privileges thereunder, and shall
    28  be returned to the said licensee at any time within one year
    29  from the date of his honorable discharge from the armed forces
    30  of the United States upon the filing of an application therefor,
    19870H1000B1735                 - 149 -

     1  surety bond, and payment of the filing and license fees as
     2  hereinafter provided. The said application for return of license
     3  shall be on a form prescribed by the board, accompanied by a
     4  filing fee in the sum of ten dollars ($10.00) and the prescribed
     5  license fee, except that when such application is filed after a
     6  portion of the then current license term has elapsed, the
     7  license fee shall be prorated on a monthly basis for the balance
     8  of the license year: Provided, however, That the said license
     9  shall not be returned if the electors of the municipality in
    10  which the licensed establishment is situate have voted against
    11  the granting of retail liquor licenses or against the granting
    12  of retail dispenser licenses, as the case may be, under the
    13  local option provision of this act. In the event the premises
    14  originally covered by the license are not available for
    15  occupancy by the licensee at the time he files his application
    16  for return of license, as hereinbefore provided, he shall be
    17  permitted to file an application for transfer of the license to
    18  other premises in the same municipality. Such transfer of the
    19  license shall be subject to all of the provisions of this act
    20  pertaining to the transfer of such licenses.
    21     This subsection (c) was enacted due to conditions caused by
    22  the present war and shall remain in effect only until the
    23  termination of said war and one year thereafter.]
    24     Section 69.  Sections 470.1 and 470.2 of the act are
    25  repealed.
    26     Section 70.  Section 471 of the act, amended January 13, 1966
    27  (1965 P.L.1301, No.518) and repealed in part June 3, 1971
    28  (P.L.118, No.6), is reenacted and amended to read:
    29     Section 471.  Revocation and Suspension of Licenses; Fines.--
    30  [Upon learning of any violation of this act or any laws of this
    19870H1000B1735                 - 150 -

     1  Commonwealth relating to liquor, alcohol or malt or brewed
     2  beverages, or of any regulations of the board adopted pursuant
     3  to such laws, of any violation of any laws of this Commonwealth
     4  or of the United States of America relating to the tax-payment
     5  of liquor or malt or brewed beverages by any licensee within the
     6  scope of this article, his officers, servants, agents or
     7  employes, or upon any other sufficient cause shown, the board
     8  may, within one year from the date of such violation or cause
     9  appearing, cite such licensee to appear before it or its
    10  examiner, not less than ten nor more than sixty days from the
    11  date of sending such licensee, by registered mail, a notice
    12  addressed to him at his licensed premises, to show cause why
    13  such license should not be suspended or revoked or a fine
    14  imposed. Hearings on such citations shall be held in the same
    15  manner as provided herein for hearings on applications for
    16  license. Upon such hearing, if satisfied that any such violation
    17  has occurred or for other sufficient cause, the board shall
    18  immediately suspend or revoke the license, or impose a fine of
    19  not less than fifty dollars ($50) nor more than one thousand
    20  dollars ($1,000), notifying the licensee by registered letter
    21  addressed to his licensed premises. In the event the fine is not
    22  paid within twenty days of the order the board shall suspend or
    23  revoke the license, notifying the licensee by registered mail
    24  addressed to his licensed premises. Suspensions and revocations
    25  shall not go into effect until twenty days have elapsed from the
    26  date of notice of issuance of the board's order, during which
    27  time the licensee may take an appeal as provided for in this
    28  act. When a license is revoked, the licensee's bond may be
    29  forfeited by the board. Any licensee whose license is revoked
    30  shall be ineligible to have a license under this act until the
    19870H1000B1735                 - 151 -

     1  expiration of three years from the date such license was
     2  revoked. In the event the board shall revoke a license, no
     3  license shall be granted for the premises or transferred to the
     4  premises in which the said license was conducted for a period of
     5  at least one year after the date of the revocation of the
     6  license conducted in the said premises, except in cases where
     7  the licensee or a member of his immediate family is not the
     8  owner of the premises, in which case the board may, in its
     9  discretion, issue or transfer a license within the said year. In
    10  all such cases, the board shall file of record at least a brief
    11  statement in the form of an opinion of the reasons for the
    12  ruling or order. In the event the person who was fined or whose
    13  license was suspended or revoked by the board shall feel
    14  aggrieved by the action of the board, he shall have the right to
    15  appeal to the court of quarter sessions or the county court of
    16  Allegheny County in the same manner as herein provided for
    17  appeals from refusals to grant licenses. Upon appeal, the court
    18  so appealed to shall, in the exercise of its discretion,
    19  sustain, reject, alter or modify the findings, conclusions and
    20  penalties of the board, based on the findings of fact and
    21  conclusions of law as found by the court. The aforesaid appeal
    22  shall act as a supersedeas unless upon sufficient cause shown
    23  the court shall determine otherwise. No penalty provided by this
    24  section shall be imposed by the board or any court for any
    25  violations provided for in this act unless the enforcement
    26  officer or the board notifies the licensee of its nature and of
    27  the date of the alleged violation within ten days of the
    28  completion of the investigation which in no event shall exceed
    29  ninety days.
    30     If the violation in question is a third or subsequent
    19870H1000B1735                 - 152 -

     1  violation of this act or the act of June 24, 1939 (P.L.872),
     2  known as "The Penal Code," occurring within a period of four
     3  years the board shall impose a suspension or revocation.
     4     The jurisdiction of the county court of Allegheny County
     5  conferred hereby shall be exclusive within the territorial
     6  limits of its jurisdiction.] (a)  Upon learning of any violation
     7  of this act or any laws of this Commonwealth relating to liquor,
     8  alcohol or malt or brewed beverages, or of any regulations of
     9  the commission BOARD adopted pursuant to such laws, or any        <--
    10  violation of any laws of this Commonwealth or of the Federal
    11  Government relating to the payment of taxes on liquor, alcohol
    12  or malt or brewed beverages by any licensee within the scope of
    13  this article, his officers, servants, agents or employes, or
    14  upon any other sufficient cause shown, the enforcement bureau
    15  may, within one year from the date of such violation or cause
    16  appearing, cite such licensee to appear before an administrative
    17  law judge, not less than ten nor more than sixty days from the
    18  date of sending such licensee, by registered mail, a notice
    19  addressed to him at his licensed premises, to show cause why
    20  such license should not be suspended or revoked or a fine
    21  imposed, or both. The bureau shall also send a copy of the
    22  hearing notice to the municipality in which the premises is
    23  located.
    24     (b)  Hearing on such citations shall be held in the same
    25  manner as provided herein for hearings on applications for
    26  license. Upon such hearing, if satisfied that any such violation
    27  has occurred or for other sufficient cause, the administrative
    28  law judge shall immediately suspend or revoke the license, or
    29  impose a fine of not less than fifty dollars ($50) nor more than
    30  one thousand dollars ($1,000), or both, notifying the licensee
    19870H1000B1735                 - 153 -

     1  by registered letter addressed to his licensed premises. If the
     2  licensee has been cited and found to have violated SECTION        <--
     3  493(1) INSOFAR AS IT RELATES TO SALES TO MINORS, section 493(10)
     4  insofar as it relates to lewd, immoral or improper entertainment
     5  OR SECTION 493(14), (16) OR (21) OF THIS ACT, or has been found   <--
     6  to be a public nuisance pursuant to section 611, or if the owner
     7  or operator of the licensed premises or any authorized agent of
     8  the owner or operator has been convicted of any violation of the
     9  act of April 14, 1972 (P.L.233, No.64), known as "The Controlled
    10  Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §
    11  5902 (relating to prostitution and related offenses) or 6301
    12  (relating to corruption of minors), at or relating to the
    13  licensed premises, the administrative law judge shall
    14  immediately suspend or revoke the license, or impose a fine of
    15  not less than one thousand dollars ($1,000) nor more than five
    16  thousand dollars ($5,000), or both. The administrative law judge
    17  shall notify the licensee by registered mail, addressed to the
    18  licensed premises, of such suspension, revocation or fine. The
    19  increased civil penalty imposed by this subsection shall not be
    20  used to require any licensee to increase the amount of the bond
    21  required by this act. In the event the fine is not paid within
    22  twenty days of the adjudication, the administrative law judge
    23  shall suspend or revoke the license, notifying the licensee by
    24  registered mail addressed to the licensed premises. Suspensions
    25  and revocations shall not go into effect until thirty days have
    26  elapsed from the date of the adjudication during which time the
    27  licensee may take an appeal as provided for in this act. When a
    28  license is revoked, the licensee's bond may be forfeited. Any
    29  licensee whose license is revoked shall be ineligible to have a
    30  license under this act until the expiration of three years from
    19870H1000B1735                 - 154 -

     1  the date such license was revoked. In the event a license is
     2  revoked, no license shall be granted for the premises or
     3  transferred to the premises in which the said license was
     4  conducted for a period of at least one year after the date of
     5  the revocation of the license conducted in the said premises,
     6  except in cases where the licensee or a member of his immediate
     7  family is not the owner of the premises, in which case the
     8  commission BOARD may, in its discretion, issue or transfer a      <--
     9  license within the said year. In the event the bureau or the
    10  person who was fined or whose license was suspended or revoked
    11  shall feel aggrieved by the adjudication of the administrative
    12  law judge, there shall be a right to appeal to the court of
    13  common pleas in the same manner as herein provided for appeals
    14  from refusals to grant licenses. The aforesaid appeal shall act
    15  as a supersedeas unless upon sufficient cause shown the court
    16  shall determine otherwise; however, if the licensee has been
    17  cited and found to have violated SECTION 493(1) INSOFAR AS IT     <--
    18  RELATES TO SALES TO MINORS, section 493(10) insofar as it
    19  relates to lewd, immoral or improper entertainment OR SECTION     <--
    20  493(14), (16) OR (21) OF THIS ACT, or has been found to be a
    21  public nuisance pursuant to section 611, or if the owner or
    22  operator of the licensed premises or any authorized agent of the
    23  owner or operator has been convicted of any violation of "The
    24  Controlled Substance, Drug, Device and Cosmetic Act," or of 18
    25  Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
    26  its appeal shall not act as a supersedeas unless the court
    27  determines otherwise upon sufficient cause shown. In any hearing
    28  on an application for a supersedeas under this section, the
    29  court may consider, in addition to other relevant evidence,
    30  documentary evidence, including records of the bureau, showing
    19870H1000B1735                 - 155 -

     1  the prior history of citations, fines, suspensions or
     2  revocations against the licensee; and the court may also
     3  consider, in addition to other relevant evidence, evidence of
     4  any recurrence of the unlawful activity occurring between the
     5  date of the citation which is the subject of the appeal and the
     6  date of the hearing by the court. No penalty provided by this
     7  section shall be imposed for any violations provided for in this
     8  act unless the bureau notifies the licensee of its nature within
     9  thirty days of the completion of the investigation.
    10     (c)  If the violation in question is a third or subsequent
    11  violation of this act or Title 18 of the Pennsylvania
    12  Consolidated Statutes (relating to crime and offenses),
    13  occurring within a period of four years, the administrative law
    14  judge shall impose a suspension or revocation.
    15     Section 71.  Section 472 of the act, amended May 2, 1986
    16  (P.L.141, No.44), is reenacted and amended to read:               <--
    17     Section 472.  Local Option.--In any municipality or any part
    18  of a municipality where such municipality is split so that each
    19  part thereof is separated by another municipality, an election
    20  may be held on the date of the primary election immediately
    21  preceding any municipal election, but not oftener than once in
    22  four years, to determine the will of the electors with respect
    23  to the granting of liquor licenses to hotels, restaurants and
    24  clubs, not oftener than once in four years, to determine the
    25  will of the electors with respect to the granting of liquor
    26  licenses to privately-owned private golf courses, not oftener
    27  than once in four years, to determine the will of the electors
    28  with respect to the granting of licenses to retail dispensers of
    29  malt and brewed beverages, not oftener than once in four years,
    30  to determine the will of the electors with respect to granting
    19870H1000B1735                 - 156 -

     1  of licenses to wholesale distributors and importing
     2  distributors, or not more than once in four years, to determine
     3  the will of the electors with respect to the establishment,
     4  operation and maintenance by the [board] commission of            <--
     5  Pennsylvania liquor stores, within the limits of such
     6  municipality or part of a split municipality, under the
     7  provisions of this act: Provided, however, Where an election
     8  shall have been held at the primary preceding a municipal
     9  election in any year, another election may be held under the
    10  provisions of this act at the primary occurring the fourth year
    11  after such prior election: And provided further, That an
    12  election on the question of establishing and operating a State
    13  liquor store shall be initiated only in those municipalities, or
    14  that part of a split municipality that shall have voted against
    15  the granting of liquor licenses; and that an election on the
    16  question of granting wholesale distributor and importing
    17  distributor licenses shall be initiated only in those
    18  municipalities or parts of split municipalities that shall have
    19  at a previous election voted against the granting of dispenser's
    20  licenses. Whenever electors equal to at least twenty-five per
    21  centum of the highest vote cast for any office in the
    22  municipality or part of a split municipality at the last
    23  preceding general election shall file a petition with the county
    24  board of elections of the county for a referendum on the
    25  question of granting any of said classes of licenses or the
    26  establishment of Pennsylvania liquor stores, the said county
    27  board of elections shall cause a question to be placed on the
    28  ballots or on the voting machine board and submitted at the
    29  primary immediately preceding the municipal election. Separate
    30  petitions must be filed for each question to be voted on. Said
    19870H1000B1735                 - 157 -

     1  proceedings shall be in the manner and subject to the provisions
     2  of the election laws which relate to the signing, filing and
     3  adjudication of nomination petitions, insofar as such provisions
     4  are applicable.
     5     When the question is in respect to the granting of liquor
     6  licenses, it shall be in the following form:
     7     Do you favor the granting of liquor licenses
     8     for the sale of liquor in........................  Yes
     9     of..............................................?  No
    10     When the question is in respect to the granting of liquor
    11  licenses, for privately-owned private golf courses, it shall be
    12  in the following form:
    13     Do you favor the granting of liquor licenses for
    14     privately-owned private golf courses for the sale
    15     of liquor in.................by..................  Yes
    16     of..............................................?  No
    17     When the question is in respect to the granting of licenses
    18  to retail dispensers of malt and brewed beverages, it shall be
    19  in the following form:
    20     Do you favor the granting of malt and brewed
    21     beverage retail dispenser licenses for
    22     consumption on premises where sold in the........  Yes
    23     of..............................................?  No
    24     When the question is in respect to the granting of licenses
    25  to wholesale distributors of malt or brewed beverages and
    26  importing distributors, it shall be in the following form:
    27     Do you favor the granting of malt and brewed
    28     beverage wholesale distributor's and importing
    29     distributor's licenses not for consumption on
    30     premises where sold in the.......................  Yes
    19870H1000B1735                 - 158 -

     1     of..............................................?  No
     2     When the question is in respect to the establishment,
     3  operation and maintenance of Pennsylvania liquor stores it shall
     4  be in the following form:
     5     Do you favor the establishment, operation
     6     and maintenance of Pennsylvania liquor
     7     stores in the....................................  Yes
     8     of..............................................?  No
     9     In case of a tie vote, the status quo shall obtain. If a
    10  majority of the voting electors on any such question vote "yes,"
    11  then liquor licenses shall be granted by the [board] commission   <--
    12  to hotels, restaurants and clubs, or liquor licenses shall be
    13  granted by the [board] commission to privately-owned private      <--
    14  golf courses, or malt and brewed beverage retail dispenser
    15  licenses or wholesale distributor's and importing distributor's
    16  license for the sale of malt or brewed beverages shall be
    17  granted by the [board] commission, or the [board] commission may  <--
    18  establish, operate and maintain Pennsylvania liquor stores, as
    19  the case may be, in such municipality or part of a split
    20  municipality, as provided by this act; but if a majority of the
    21  electors voting on any such question vote "no," then the [board]  <--
    22  commission shall have no power to grant or to renew upon their
    23  expiration any licenses of the class so voted upon in such
    24  municipality or part of a split municipality; or if the negative
    25  vote is on the question in respect to the establishment,
    26  operation and maintenance of Pennsylvania liquor stores, the
    27  [board] commission shall not open and operate a Pennsylvania      <--
    28  liquor store in such municipality or part of a split
    29  municipality, nor continue to operate a then existing
    30  Pennsylvania liquor store in the municipality or part of a split
    19870H1000B1735                 - 159 -

     1  municipality for more than two years thereafter or after the
     2  expiration of the term of the lease on the premises occupied by
     3  such store, whichever period is less, unless and until at a
     4  later election a majority of the voting electors vote "yes" on
     5  such question.
     6     Section 72.  Section 472.1 of the act, added September 15,
     7  1961 (P.L.1337, No.590), is reenacted to read:
     8     Section 472.1.  Clubs.--Whenever any club in existence at
     9  least five years prior to the time of application for license
    10  owns a contiguous plot of land in more than two municipalities
    11  in one or more but less than all of which the granting of liquor
    12  licenses has not been prohibited and at least one acre of the
    13  plot of land owned by the club is situated in each municipality
    14  in which the granting of liquor licenses has not been
    15  prohibited, the club may be issued a club liquor license or a
    16  catering license by the board if the board finds that the
    17  license will not be detrimental to any residential neighborhood.
    18  This section shall not be construed to prohibit the issuance of
    19  club liquor licenses or catering licenses which may otherwise be
    20  issued under the provisions of this act.
    21     Section 73.  Section 472.2 of the act, added November 18,
    22  1969 (P.L.296, No.124), is reenacted and amended to read:         <--
    23     Section 472.2.  Granting of Liquor Licenses in Certain
    24  Municipalities.--(a)  In any municipality which has, prior to
    25  January 1, 1967, by referendum approved the granting of malt and
    26  brewed beverage retail dispensers' licenses and has also
    27  thereafter, in a separate and subsequent referendum approved the
    28  granting of liquor licenses prior to the effective date of this
    29  amendment, the [board] commission may issue to an applicant       <--
    30  holding a malt and brewed beverage retail dispenser's license, a
    19870H1000B1735                 - 160 -

     1  liquor license: Provided, That the applicant surrenders for
     2  cancellation the malt and brewed beverage retail dispenser's
     3  license. The [board] commissioner shall not issue such a liquor   <--
     4  license in excess of one for each one thousand five hundred
     5  residents in said municipality and any application for said
     6  license shall be filed within two years from the effective date
     7  of this amendment.
     8     (b)  Nothing in this section shall otherwise affect any
     9  existing malt and brewed beverage retail dispenser's license.
    10     (c)  The [board] commission may not accept, act upon, or       <--
    11  grant an application for a liquor license under this section,
    12  when such application, if granted, would cause an excess in the
    13  aforesaid quota of one liquor license for each one thousand five
    14  hundred residents in said municipality. Nor shall an applicant
    15  under this section be required to surrender his malt and brewed
    16  beverage retail dispenser's license until and unless the [board]  <--
    17  commission has granted his application for a liquor license.
    18     Section 74.  Section 472.3 of the act, added July 3, 1980
    19  (P.L.348, No.88), is reenacted and amended to read:               <--
    20     Section 472.3.  Exchange of Certain Licenses.--(a)  In any
    21  municipality wherein restaurant liquor license issue, the
    22  [board] commission may issue to a club as defined in this act, a  <--
    23  club liquor license in exchange for a club retail dispenser
    24  license.
    25     (b)  An applicant under this section shall surrender his club
    26  retail dispenser license for cancellation prior to the issuance
    27  of the new club liquor license.
    28     (c)  The applicant for such exchange of license shall file an
    29  application for a club liquor license and shall post a notice of
    30  such application in the manner provided in section 403. In
    19870H1000B1735                 - 161 -

     1  determining whether the exchange shall be granted the [board]     <--
     2  commission shall have the same discretion as provided in section
     3  404 in the case of any new license.
     4     (d)  The provisions of section 461 pertaining to quota shall
     5  not pertain to this section for exchange purposes.
     6     Section 75.  Section 473 of the act, added January 13, 1966
     7  (1965 P.L.1301, No.518), is reenacted and amended to read:
     8     Section 473.  Public Record.--(a)  Any person having a
     9  pecuniary interest in the conduct of business on licensed
    10  premises whether that interest is direct or indirect, legal or
    11  equitable, individual, corporate, or mutual shall file his name
    12  and address with the [board] commission on forms provided by the  <--
    13  [board] commission. In the case of corporate ownership, the       <--
    14  secretary of the corporation shall file with the [board]          <--
    15  commission the names and addresses of all persons having such a
    16  corporate pecuniary interest.
    17     (b)  The names and addresses required by this section shall
    18  be recorded by the [board] commission and made available to the   <--
    19  public as a public record.
    20     Section 76.  Section 474 of the act, added July 20, 1968
    21  (P.L.429, No.201), is reenacted and amended to read:              <--
    22     Section 474.  Surrender of Club Licenses for Benefit of
    23  Licensees.--Whenever a club license has been returned to the
    24  [board] commission for the benefit of the licensee due to the     <--
    25  licensed establishment not having been in operation for any
    26  reason whatsoever for a period of time not exceeding fifteen
    27  days, the license shall be held by the [board] commission for     <--
    28  the benefit of the licensee for a period of time not exceeding
    29  one year, or, upon proper application to the [board] commission,  <--
    30  for an additional year, and the license shall be revoked at the
    19870H1000B1735                 - 162 -

     1  termination of the period, and transfer of the license shall not
     2  be permitted after the termination of the period.
     3     Section 77.  Section 475 of the act, amended November 26,
     4  1978 (P.L.1389, No.326) and June 24, 1982 (P.L.624, No.176), is
     5  reenacted to read:
     6     Section 475.  Establishments Proximate to Interstate Highways
     7  Not To Be Licensed.--(a)  No license for the sale of liquor or
     8  malt or brewed beverages in any quantity shall be granted to the
     9  proprietor, lessee, keeper or manager of an establishment the
    10  building entrance to which is located within three hundred feet
    11  of the entrance or exit of an interstate limited access highway.
    12     (b)  This section shall not apply to existing licenses, nor
    13  be deemed to affect the right of an existing licensee to
    14  reinstatement or renewal of his license.
    15     SECTION 77.1.  THE ACT IS AMENDED BY ADDING A SECTION TO       <--
    16  READ:
    17     SECTION 477.  APPLICANTS TO PROVIDE STATE TAX IDENTIFICATION
    18  NUMBERS AND STATEMENT OF STATE TAX STATUS; WAIVER OF
    19  CONFIDENTIALITY OF INFORMATION IN THE POSSESSION OF THE
    20  DEPARTMENT OF REVENUE AND OTHER DEPARTMENTS; REVIEW OF STATE TAX
    21  STATUS.--(A)  AN APPLICANT FOR THE GRANT, RENEWAL OR TRANSFER OF
    22  ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL PROVIDE TO THE
    23  BOARD, UPON FORMS APPROVED BY THE DEPARTMENT OF REVENUE, THE
    24  FOLLOWING:
    25     (1)  THE APPLICANT'S STATE PERSONAL INCOME TAX IDENTIFICATION
    26  NUMBER;
    27     (2)  THE APPLICANT'S STATE SALES TAX NUMBER;
    28     (3)  THE APPLICANT'S STATE CORPORATION TAX NUMBER;
    29     (4)  THE APPLICANT'S STATE EMPLOYER WITHHOLDING TAX NUMBER;
    30     (5)  THE APPLICANT'S UNEMPLOYMENT COMPENSATION ACCOUNT
    19870H1000B1735                 - 163 -

     1  NUMBER; AND
     2     (6)  A STATEMENT THAT:
     3     (I)  ALL STATE TAX REPORTS HAVE BEEN FILED AND ALL STATE
     4  TAXES PAID; OR
     5     (II)  ALL STATE TAXES ARE SUBJECT TO A TIMELY ADMINISTRATIVE
     6  OR JUDICIAL APPEAL; OR
     7     (III)  ALL STATE TAXES ARE SUBJECT TO A DULY APPROVED
     8  DEFERRED PAYMENT PLAN.
     9     (B)  AN APPLICANT FOR THE GRANT, RENEWAL OR TRANSFER OF ANY
    10  LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL, BY THE FILING OF
    11  AN APPLICATION INSOFAR AS IT RELATES TO THE BOARD, WAIVE ANY
    12  CONFIDENTIALITY WITH RESPECT TO STATE TAX INFORMATION REGARDING
    13  SAID APPLICANT IN THE POSSESSION OF THE DEPARTMENT OF REVENUE,
    14  THE OFFICE OF ATTORNEY GENERAL OR THE DEPARTMENT OF LABOR AND
    15  INDUSTRY, REGARDLESS OF THE SOURCE OF THAT INFORMATION AND SHALL
    16  CONSENT TO THE PROVIDING OF THAT INFORMATION TO THE BOARD BY THE
    17  DEPARTMENT OF REVENUE, THE OFFICE OF ATTORNEY GENERAL OR THE
    18  DEPARTMENT OF LABOR AND INDUSTRY.
    19     (C)  UPON RECEIPT OF ANY APPLICATION FOR THE GRANT, RENEWAL
    20  OR TRANSFER OF ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE, THE
    21  BOARD SHALL REVIEW THE STATE TAX STATUS OF THE APPLICANT. THE
    22  BOARD SHALL REQUEST STATE TAX INFORMATION REGARDING THE
    23  APPLICANT FROM THE DEPARTMENT OF REVENUE, THE OFFICE OF ATTORNEY
    24  GENERAL OR THE DEPARTMENT OF LABOR AND INDUSTRY AND SAID
    25  INFORMATION SHALL BE PROVIDED.
    26     (D)  THE BOARD SHALL NOT APPROVE ANY APPLICATION FOR THE
    27  GRANT, RENEWAL OR TRANSFER OF ANY LICENSE ISSUED PURSUANT TO
    28  THIS ARTICLE WHERE THE APPLICANT HAS FAILED TO:
    29     (1)  PROVIDE ANY OF THE INFORMATION REQUIRED BY SUBSECTION
    30  (A); OR
    19870H1000B1735                 - 164 -

     1     (2)  FILE REQUIRED STATE TAX REPORTS; OR
     2     (3)  PAY ANY STATE TAXES NOT SUBJECT TO A TIMELY
     3  ADMINISTRATIVE OR JUDICIAL APPEAL OR SUBJECT TO A DULY
     4  AUTHORIZED DEFERRED PAYMENT PLAN.
     5     (E)  FOR THE PURPOSE OF THIS SECTION THE TERM "APPLICANT"
     6  SHALL INCLUDE THE TRANSFEROR AND TRANSFEREE OF ANY LICENSE
     7  ISSUED UNDER THIS ACT.
     8     Section 78.  Subheading (D) of Article IV of the act is
     9  reenacted to read:
    10                   (D)  Unlawful Acts; Penalties.
    11     Section 79.  Section 491 of the act, amended July 18, 1961
    12  (P.L.789, No.347), May 5, 1970 (P.L.342, No.110), October 11,
    13  1972 (P.L.906, No.215), October 2, 1974 (P.L.665, No.220),
    14  October 10, 1974 (P.L.692, No.231), December 12, 1980 (P.L.1195,
    15  No.221) and February 9, 1984 (P.L.21, No.8), is reenacted and
    16  amended to read:
    17     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
    18  Liquor Licensees.--
    19     It shall be unlawful--
    20     (1)  Sales of Liquor. For any person, by himself or by an
    21  employe or agent, to expose or keep for sale, or directly or
    22  indirectly, or upon any pretense or upon any device, to sell or
    23  offer to sell any liquor within this Commonwealth, except in
    24  accordance with the provisions of this act and the regulations
    25  of the [board] commission. This clause shall not be construed to  <--
    26  prohibit hospitals, physicians, dentists or veterinarians who
    27  are licensed and registered under the laws of this Commonwealth
    28  from administering liquor in the regular course of their
    29  professional work and taking into account the cost of the liquor
    30  so administered in making charges for their professional
    19870H1000B1735                 - 165 -

     1  service, or a pharmacist duly licensed and registered under the
     2  laws of this Commonwealth from dispensing liquor on a
     3  prescription of a duly licensed physician, dentist or
     4  veterinarian, or selling medical preparations containing
     5  alcohol, or using liquor in compounding prescriptions or
     6  medicines and making a charge for the liquor used in such
     7  medicines, or a manufacturing pharmacist or chemist from using
     8  liquor in manufacturing preparations unfit for beverage purposes
     9  and making a charge for the liquor so used. All such liquors so
    10  administered or sold by hospitals, physicians, dentists,
    11  veterinarians, pharmacists or chemists shall conform to the
    12  Pharmacopoeia of the United States, the National Formulary, or
    13  the American Homeopathic Pharmacopoeia. This clause shall not be
    14  construed to prohibit an executor or an administrator of a
    15  decedent's estate from selling privately or at public auction
    16  liquor which was an asset of the decedent. The [board]            <--
    17  commission shall establish regulations to ensure that State
    18  taxes from the sales will be paid by the estate from the
    19  proceeds of the sale. The [board] commission may not prohibit a   <--
    20  sale of liquor for the reason that it was not lawfully acquired
    21  prior to January 1, 1934 or has not been purchased from a
    22  Pennsylvania Liquor Store or in compliance with Pennsylvania
    23  law.
    24     (2)  Possession or Transportation of Liquor or Alcohol. For
    25  any person, except a manufacturer or the [board] commission or    <--
    26  the holder of a sacramental wine license or of an importer's
    27  license, to possess or transport any liquor or alcohol within
    28  this Commonwealth which was not lawfully acquired prior to
    29  January first, one thousand nine hundred and thirty-four, or has
    30  not been purchased from a Pennsylvania Liquor Store or a
    19870H1000B1735                 - 166 -

     1  licensed limited winery in Pennsylvania, except miniatures
     2  totalling less than one gallon purchased by a collector of the
     3  same in another state or foreign country, or in accordance with
     4  the [board's] commission's regulations. The burden shall be upon  <--
     5  the person possessing or transporting such liquor or alcohol to
     6  prove that it was so acquired. But nothing herein contained
     7  shall prohibit the manufacture or possession of wine by any
     8  person in his home for consumption of himself, his family and
     9  guests and not for sale, not exceeding, during any one calendar
    10  year, two hundred gallons, any other law to the contrary
    11  notwithstanding. Such wine shall not be manufactured, possessed,
    12  offered for sale or sold on any licensed premises.
    13     None of the provisions herein contained shall prohibit nor
    14  shall it be unlawful for any person to import into Pennsylvania,
    15  transport or have in his possession, an amount of liquor not
    16  exceeding one gallon in volume upon which a State tax has not
    17  been paid, if it can be shown to the satisfaction of the [board]  <--
    18  commission that such person purchased the liquor in a foreign
    19  country or United States territory and was allowed to bring it
    20  into the United States. Neither shall the provisions contained
    21  herein prohibit nor make it unlawful for (i) any member of the
    22  armed forces on active duty, or (ii) any retired member of the
    23  armed forces, or (iii) any totally disabled veteran, or (iv) the
    24  spouse of any person included in the foregoing classes of
    25  persons to import into Pennsylvania, transport or have in his
    26  possession an amount of liquor not exceeding one gallon per
    27  month in volume upon which the State tax has not been paid, so
    28  long as such liquor has been lawfully purchased from a package
    29  store established and maintained under the authority of the
    30  United States and is in containers identified in accordance with
    19870H1000B1735                 - 167 -

     1  regulations issued by the Department of Defense. Such liquor
     2  shall not be possessed, offered for sale or sold on any licensed
     3  premises.
     4     None of the provisions herein contained shall prohibit nor
     5  shall it be unlawful for any consul general, consul or other
     6  diplomatic officer of a foreign government to import into
     7  Pennsylvania, transport or have in his possession liquor upon
     8  which a State tax has not been paid, if it can be shown to the
     9  satisfaction of the [board] commission that such person acquired  <--
    10  the liquor in a foreign country and was allowed to bring it into
    11  the United States. Such liquor shall not be possessed, offered
    12  for sale or sold on any licensed premises.
    13     Any person violating the provisions of this clause for a
    14  first offense involving the possession or transportation in
    15  Pennsylvania of any liquor in a package (bottle or other
    16  receptacle) or wine not purchased from a Pennsylvania Liquor
    17  Store or from a licensed limited winery in Pennsylvania, with
    18  respect to which satisfactory proof is produced that the
    19  required Federal tax has been paid and which was purchased,
    20  procured or acquired legally outside of Pennsylvania shall upon
    21  conviction thereof in a summary proceeding be sentenced to pay a
    22  fine of twenty-five dollars ($25) for each such package, plus
    23  costs of prosecution, or undergo imprisonment for a term not
    24  exceeding ninety (90) days. Each full quart or major fraction
    25  thereof shall be considered a separate package (bottle or other
    26  receptacle) for the purposes of this clause. Such packages of
    27  liquor shall be forfeited to the Commonwealth in the manner
    28  prescribed in Article VI of this act but the vehicle, boat,
    29  vessel, animal or aircraft used in the illegal transportation of
    30  such packages shall not be subject to forfeiture: Provided,
    19870H1000B1735                 - 168 -

     1  however, That if it is a second or subsequent offense or if it
     2  is established that the illegal possession or transportation was
     3  in connection with a commercial transaction, then the other
     4  provisions of this act providing for prosecution as a
     5  misdemeanor and for the forfeiture of the vehicle, boat, vessel,
     6  animal or aircraft shall apply.
     7     (3)  Purchase of Liquor or Alcohol. For any person within
     8  this Commonwealth, by himself or by an employe or agent, to
     9  attempt to purchase, or directly or indirectly, or upon any
    10  pretense or device whatsoever, to purchase any liquor or alcohol
    11  from any person or source other than a Pennsylvania Liquor
    12  Store, except in accordance with the provisions of this act or
    13  the regulations of the [board] commission.                        <--
    14     (4)  Possession and Use of Decanters. For any person to use
    15  decanters of alcoholic beverages except that the use of
    16  decanters or other similar receptacles by licensees shall be
    17  permitted in the case of wines and then only in accordance with
    18  the regulations of the [board] commission, but nothing herein     <--
    19  contained shall prohibit the manufacture and possession of wine
    20  as provided in clause (2) of this section.
    21     (5)  Failure to Break Empty Liquor Containers. For any
    22  restaurant, hotel or club licensee, his servants, agents or
    23  employes, to fail to break any package in which liquors were
    24  contained, except those decanter packages that the [board]        <--
    25  commission determines to be decorative, within twenty-four hours
    26  after the original contents were removed therefrom.
    27     (6)  Sales by Restaurant and Hotel Liquor Licensees. For any
    28  restaurant or hotel licensee, his servants, agents or employes,
    29  to sell any liquor or malt or brewed beverages for consumption
    30  on the licensed premises except in a room or rooms or place on
    19870H1000B1735                 - 169 -

     1  the licensed premises at all times accessible to the use and
     2  accommodation of the general public, but this section shall not
     3  be interpreted to prohibit a restaurant liquor licensee from
     4  providing private affairs the primary function of which is for
     5  catering only to weddings or special occasions arranged twenty-
     6  four hours in advance, nor to prohibit a hotel licensee, or a
     7  restaurant licensee when the restaurant is located in a hotel,
     8  from selling liquor or malt or brewed beverages in any room of
     9  such hotel occupied by a bona fide guest or to prohibit a
    10  restaurant licensee from selling liquor or malt or brewed
    11  beverages in a bowling alley when no minors are present where
    12  the restaurant and bowling alley are immediately adjacent and
    13  under the same roof.
    14     (7)  Sales of Liquor by Manufacturers and Licensed Importers.
    15  For any manufacturer or licensed importer of liquor in this
    16  Commonwealth, his agents, servants or employes, to sell or offer
    17  to sell any liquor in this Commonwealth except to the [board]     <--
    18  commission for use in Pennsylvania Liquor Stores, and in the
    19  case of a manufacturer, to the holder of a sacramental wine
    20  license or an importer's license, but a manufacturer or licensed
    21  importer may sell or offer to sell liquor to persons outside of
    22  this Commonwealth.
    23     (8)  Importation and Sales of Alcohol. For any person, to
    24  import alcohol into this Commonwealth, or to sell alcohol to any
    25  person, except in accordance with the regulations of the [board]  <--
    26  commission.
    27     (9)  Possession of Alcohol. For any person, to have alcohol
    28  in his possession, except in accordance with the provisions of
    29  this act and the regulations of the [board] commission.           <--
    30     (10)  Fortifying, Adulterating or Contaminating Liquor. For
    19870H1000B1735                 - 170 -

     1  any licensee or any employe or agent of a licensee or of the
     2  [board] commission, to fortify, adulterate or contaminate any     <--
     3  liquor, except as permitted by the regulations of the [board]     <--
     4  commission, or to refill wholly or in part, with any liquid or
     5  substance whatsoever, any liquor bottle or other liquor
     6  container.
     7     (11)  Importation of Liquor. For any person, other than the
     8  [board] commission or the holder of a sacramental wine license    <--
     9  or of an importer's license, to import any liquor whatsoever
    10  into this Commonwealth, but this section shall not be construed
    11  to prohibit railroad and pullman companies from selling liquors
    12  purchased outside the Commonwealth in their dining, club and
    13  buffet cars which are covered by public service liquor licenses
    14  and which are operated in this Commonwealth.
    15     (12)  Delivery of Liquor by Certain Licensees. For a liquor
    16  licensee permitted to deliver liquor, to make any deliveries
    17  except in his own vehicles bearing his name, address and license
    18  number on each side in letters not smaller than four inches in
    19  height, or in the vehicle of another person duly authorized to
    20  transport liquor within this Commonwealth.
    21     (13)  Violation of Certain Rules and Regulations of [Board]    <--
    22  Commission. For any person, to violate any rules and regulations
    23  adopted by the [board] commission to insure the equitable         <--
    24  wholesale and retail sale and distribution of liquor and alcohol
    25  through the Pennsylvania Liquor Stores.
    26     (14)  Offering Commission or Gift to Members of [Board]        <--
    27  Commission or State Employe. For any person selling or offering
    28  to sell liquor or alcohol to, or purchasing at wholesale liquor
    29  or alcohol from, the [board] commission, either directly or       <--
    30  indirectly, to pay or offer to pay any commission, profit or
    19870H1000B1735                 - 171 -

     1  remuneration, or to make or offer to make any gift to any member
     2  or employe of the [board] commission or other employe of the      <--
     3  Commonwealth or to anyone on behalf of such member or employe.
     4     Section 80.  Section 492 of the act, amended July 3, 1957
     5  (P.L.475, No.268), June 22, 1980 (P.L.253, No.73) and June 24,
     6  1982 (P.L.624, No.176), is reenacted and amended to read:         <--
     7     Section 492.  Unlawful Acts Relative to Malt or Brewed
     8  Beverages and Licensees.--
     9     It shall be unlawful--
    10     (1)  Manufacturing Without License. For any person, to
    11  manufacture malt or brewed beverages, unless such person holds a
    12  valid manufacturer's license for such purpose issued by the
    13  board.
    14     (2)  Sales of Malt or Brewed Beverages for Consumption on the
    15  Premises. For any person, to sell to another for consumption
    16  upon the premises where sold or to permit another to consume
    17  upon the premises where sold, any malt or brewed beverages,
    18  unless such person holds a valid retail dispenser license or a
    19  valid liquor license issued by the [board] commission             <--
    20  authorizing the sale of malt or brewed beverages for consumption
    21  upon such premises.
    22     (3)  Sales of Malt or Brewed Beverages Not for Consumption on
    23  the Premises. For any person, to sell to another any malt or
    24  brewed beverages not for consumption upon the premises where
    25  sold, unless such person holds a valid license permitting such
    26  sale.
    27     (4)  Sunday Sales of Malt or Brewed Beverages by
    28  Manufacturers, Importing Distributors or Distributors. For any
    29  manufacturer of malt or brewed beverages, importing distributor
    30  or distributor, or the servants, agents or employes of the same,
    19870H1000B1735                 - 172 -

     1  to sell, trade or barter in malt or brewed beverages between the
     2  hours of twelve o'clock midnight of any Saturday and two o'clock
     3  in the forenoon of the following Monday.
     4     (5)  Sales of Malt or Brewed Beverages by Hotels, Eating
     5  Places or Public Service Licensees During Prohibited Hours.--For
     6  any hotel or eating place holding a retail dispenser's license,
     7  or the servants, agents or employes of such licensees, to sell,
     8  trade or barter in malt or brewed beverages between the hours of
     9  two o'clock antemeridian Sunday and seven o'clock in the
    10  forenoon of the following Monday, or between the hours of two
    11  o'clock antemeridian and seven o'clock antemeridian of any week
    12  day: Provided, That notwithstanding any provision to the
    13  contrary, whenever the thirty-first day of December falls on a
    14  Sunday such sales of malt or brewed beverages may be made on
    15  such day after one o'clock postmeridian and until two o'clock
    16  antemeridian of the following day. For any public service
    17  licensee authorized to sell malt or brewed beverages or the
    18  servants, agents or employes of such licensees to sell, trade or
    19  barter in malt or brewed beverages between the hours of two
    20  o'clock antemeridian and seven o'clock antemeridian on any day.
    21     Any licensee holding a retail dispenser license or a malt or
    22  brewed beverage public service license may, by giving notice to
    23  the board, advance by one hour the hours herein prescribed as
    24  those during which malt or brewed beverages may be sold during
    25  such part of the year when daylight saving time is being
    26  observed generally in the municipality in which the place of
    27  business is located. Any licensee who elects to operate his
    28  place of business in accordance with daylight saving time shall
    29  post a conspicuous notice in his place of business that he is
    30  operating in accordance with daylight saving time.
    19870H1000B1735                 - 173 -

     1     (6)  Sales of Malt or Brewed Beverages on Election Day by
     2  Hotels, Eating Places or Public Service Licensees. For any hotel
     3  or eating place holding a retail dispenser's license, or any
     4  malt or brewed beverage public service licensee, or his
     5  servants, agents or employes, to sell, furnish or give any malt
     6  or brewed beverages to any person after two o'clock
     7  antemeridian, or until one hour after the time fixed by law for
     8  the closing of polling places on days on which a general,
     9  municipal, special or primary election is being held except as
    10  permitted by subsection (f) of section 432.
    11     (7)  Clubs Selling Between Three O'Clock Antemeridian and
    12  Seven O'Clock Antemeridian. For any club retail dispenser, or
    13  its servants, agents or employes, to sell malt or brewed
    14  beverages between the hours of three o'clock antemeridian and
    15  seven o'clock antemeridian on any day.
    16     (8)  Transportation of Malt or Brewed Beverages. For any
    17  person, to transport malt or brewed beverages except in the
    18  original containers, or to transport malt or brewed beverages
    19  for another who is engaged in selling either liquor or malt or
    20  brewed beverages, unless such person shall hold (a) a license to
    21  transport for hire, alcohol, liquor and malt or brewed
    22  beverages, as hereinafter provided in this act, or (b) shall
    23  hold a permit issued by the board and shall have paid to the
    24  board such permit fee, not exceeding one hundred dollars ($100),
    25  and shall have filed with the board a bond in the penal sum of
    26  not more than two thousand dollars ($2000), as may be fixed by
    27  the rules and regulations of the board, any other law to the
    28  contrary notwithstanding.
    29     (9)  Transportation of Malt or Brewed Beverages by Licensee.
    30  For a malt or brewed beverage licensee, to deliver or transport
    19870H1000B1735                 - 174 -

     1  any malt or brewed beverages, excepting in vehicles bearing the
     2  name and address and license number of such licensee painted or
     3  affixed on each side of such vehicle in letters no smaller than
     4  four inches in height.
     5     (10)  Importing or Transporting Malt or Brewed Beverages
     6  Without Tax Stamps. For any person, to transport within or
     7  import any malt or brewed beverages into this Commonwealth,
     8  except in accordance with the rules and regulations of the
     9  board, or for any person to transport malt or brewed beverages
    10  into or within this Commonwealth, unless there shall be affixed
    11  to the original containers in which such malt or brewed
    12  beverages are transported, stamps or crowns evidencing the
    13  payment of the malt liquor tax to the Commonwealth: Provided,
    14  however, That this clause shall not be construed to prohibit
    15  transportation of malt or brewed beverages through this
    16  Commonwealth and not for delivery therein, if such transporting
    17  is done in accordance with the rules and regulations of the
    18  [board] commission.                                               <--
    19     (11)  Delivery of Malt or Brewed Beverages With Other
    20  Commodities. For any manufacturer, importing distributor or
    21  distributor, or his servants, agents or employes, except with
    22  [board] commission approval, to deliver or transport any malt or  <--
    23  brewed beverages in any vehicle in which any other commodity is
    24  being transported.
    25     (12)  Distributors and Importing Distributors Engaging in
    26  Other Business. For any distributor or importing distributor, or
    27  his servants, agents or employes, without the approval of the
    28  [board] commission, and then only in accordance with [board]      <--
    29  commission regulations, to engage in any other business
    30  whatsoever, except the business of distributing malt or brewed
    19870H1000B1735                 - 175 -

     1  beverages.
     2     (13)  Possession or Storage of Liquor or Alcohol by Certain
     3  Licensees. For any distributor, importing distributor or retail
     4  dispenser, or his servants, agents or employes, to have in his
     5  possession, or to permit the storage of on the licensed premises
     6  or in any place contiguous or adjacent thereto accessible to the
     7  public or used in connection with the operation of the licensed
     8  premises, any alcohol or liquor.
     9     (14)  Malt or Brewed Beverage Licensees Dealing in Liquor or
    10  Alcohol. For any malt or brewed beverage licensee, other than a
    11  manufacturer, or the servants, agents or employes thereof, to
    12  manufacture, import, sell, transport, store, trade or barter in
    13  any liquor or alcohol.
    14     (15)  Selling to Persons Doing Illegal Business. For any malt
    15  or brewed beverage licensee, or his servants, agents or
    16  employes, to knowingly sell any malt or brewed beverages to any
    17  person engaged in the business of illegally selling liquor or
    18  malt or brewed beverages.
    19     (16)  Distributors and Importing Distributors Failing to Keep
    20  Records. For any importing distributor or distributor engaged in
    21  the sale of products, other than malt or brewed beverages, to
    22  fail to keep such complete separate records covering in every
    23  respect his transactions in malt or brewed beverages as the
    24  [board] commission shall by regulation require.                   <--
    25     (17)  Fortifying, Adulterating or Contaminating Malt or
    26  Brewed Beverages. For any person, to fortify, adulterate,
    27  contaminate, or in any wise to change the character or purity
    28  of, the malt or brewed beverages from that as originally
    29  marketed by the manufacturer at the place of manufacture.
    30     (18)  Coercing Distributors and Importing Distributors. For
    19870H1000B1735                 - 176 -

     1  any manufacturer or any officer, agent or representative of any
     2  manufacturer to coerce or persuade or attempt to coerce or
     3  persuade any person licensed to sell or distribute malt or
     4  brewed beverages at wholesale or retail to establish selling
     5  prices for its products or to enter into any contracts or
     6  agreements, whether written or oral, or take any action which
     7  will violate or tend to violate any provisions of this act or
     8  any of the rules or regulations promulgated by the [board]        <--
     9  commission pursuant thereto.
    10     (19)  Modifying or Terminating Distributing Rights Agreement.
    11  For any manufacturer or any officer, agent or representative of
    12  any manufacturer to modify, cancel, terminate, rescind or not
    13  renew, without good cause, any distributing rights agreement,
    14  and in no event shall any modification, cancellation,
    15  termination, rescission or nonrenewal of any distributing rights
    16  agreement become effective for at least ninety (90) days after
    17  written notice of such modification, cancellation, termination,
    18  rescission or intention not to renew has been served on the
    19  affected party and [board] commission by certified mail, return   <--
    20  receipt requested, except by written consent of the parties to
    21  the agreement. The notice shall state all the reasons for the
    22  intended modification, termination, cancellation, rescission or
    23  nonrenewal. The distributor or importing distributor holding
    24  such agreement shall have ninety (90) days in which to rectify
    25  any claimed deficiency, or challenge the alleged cause.
    26     If the deficiency shall be rectified within ninety (90) days
    27  of notice, then the proposed modification, termination,
    28  cancellation, rescission or nonrenewal shall be null and void
    29  and without legal effect.
    30     If the notice states as one of the reasons for the intended
    19870H1000B1735                 - 177 -

     1  modification, cancellation, termination, rescission or renewal
     2  that the importing distributor or distributor's equipment or
     3  warehouse requires major changes or additions, then if the
     4  distributor or importing distributor shall have taken some
     5  positive action to comply with the required changes or
     6  additions, the distributor or importing distributor shall have
     7  deemed to have complied with the deficiency as set forth in the
     8  notice. The notice provisions of this section shall not apply if
     9  the reason for termination, cancellation or nonrenewal is
    10  insolvency, assignment for the benefit of creditors, bankruptcy,
    11  liquidation, fraudulent conduct in its dealings with the
    12  manufacturer, revocation or suspension for more than a thirty
    13  (30) day period of the importing distributor or distributor
    14  license.
    15     (20)  Interference with Transfer of License, Business or
    16  Franchise. (i) For any manufacturer to interfere with or prevent
    17  any distributor or importing distributor from selling or
    18  transferring his license, business or franchise, whether before
    19  or after notice of modification, cancellation, termination,
    20  rescission or nonrenewal has been given, provided the proposed
    21  purchaser of the business of the distributor or importing
    22  distributor meets the material qualifications and standards
    23  required of the manufacturers other distributors or importing
    24  distributors; (ii) if the proposed transfer of the distributor
    25  or importing distributor's business is to a surviving spouse or
    26  adult child, the manufacturer shall not, for any reason,
    27  interfere with, or prevent, the transfer of the distributor or
    28  importing distributor's license, business or franchise. Any
    29  subsequent transfer by surviving spouse or adult child shall
    30  thereafter be subject to the provisions of subclause (i) above.
    19870H1000B1735                 - 178 -

     1     (21)  Inducing or Coercing Distributors or Importing
     2  Distributors to Accept Unordered Products or Commit Illegal
     3  Acts. For any manufacturer to compel or attempt to compel any
     4  distributor or importing distributor to accept delivery of any
     5  malt or brewed beverages or any other commodity which shall not
     6  have been ordered by the distributor or importing distributor,
     7  or to do any illegal act by any means whatsoever including, but
     8  not limited to, threatening to amend, cancel, terminate, rescind
     9  or refuse to renew any agreement existing between manufacturer
    10  and the distributor or importing distributor, or to require a
    11  distributor or importing distributor to assent to any condition,
    12  stipulation or provision limiting the distributor or importing
    13  distributor in his right to sell the products of any other
    14  manufacturer.
    15     Section 81.  Section 493 of the act, amended June 14, 1957
    16  (P.L.322, No.170), June 15, 1961 (P.L.423, No.211), September
    17  25, 1967 (P.L.307, No.135), March 5, 1970 (P.L.137, No.55),
    18  August 1, 1975 (P.L.161, No.83), March 9, 1982 (P.L.174, No.55)
    19  and May 9, 1984 (P.L.246, No.54), is reenacted and amended to
    20  read:
    21     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    22  Brewed Beverages and Licensees.--The term "licensee," when used
    23  in this section, shall mean those persons licensed under the
    24  provisions of Article IV, unless the context clearly indicates
    25  otherwise.
    26     It shall be unlawful--
    27     (1)  Furnishing Liquor or Malt or Brewed Beverages to Certain
    28  Persons. For any licensee or the [board] commission, or any       <--
    29  employe, servant or agent of such licensee or of the [board]      <--
    30  commission, or any other person, to sell, furnish or give any
    19870H1000B1735                 - 179 -

     1  liquor or malt or brewed beverages, or to permit any liquor or
     2  malt or brewed beverages to be sold, furnished or given, to any
     3  person visibly intoxicated, or to any insane person, or to any
     4  minor, or to habitual drunkards, or persons of known intemperate
     5  habits.
     6     (2)  Purchase or Sale of Liquor or Malt or Brewed Beverages
     7  on Credit. For any licensee, his agent, servant or employe, to
     8  sell or offer to sell or purchase or receive any liquor or malt
     9  or brewed beverages except for cash, excepting credit extended
    10  by a hotel or club to a bona fide guest or member, or by
    11  railroad or pullman companies in dining, club or buffet cars to
    12  passengers, for consumption while enroute, holding authorized
    13  credit cards issued by railroad or railroad credit bureaus or by
    14  hotel, restaurant and public service licensees to customers
    15  holding credit cards issued in accordance with regulations of
    16  the [board] commission or credit cards issued by banking          <--
    17  institutions subject to State or Federal regulation: Provided
    18  further, That nothing herein contained shall be construed to
    19  prohibit the use of checks or drafts drawn on a bank, banking
    20  institution, trust company or similar depository, organized and
    21  existing under the laws of the United States of America or the
    22  laws of any state, territory or possession thereof, in payment
    23  for any liquor or malt or brewed beverages if the purchaser is
    24  the payor of the check or draft and the licensee is the payee.
    25  No right of action shall exist to collect any claim for credit
    26  extended contrary to the provisions of this clause. Nothing
    27  herein contained shall prohibit a licensee from crediting to a
    28  purchaser the actual price charged for original containers
    29  returned by the original purchaser as a credit on any sale, or
    30  from refunding to any purchaser the amount paid by such
    19870H1000B1735                 - 180 -

     1  purchaser for such containers or as a deposit on containers when
     2  title is retained by the vendor, if such original containers
     3  have been returned to the licensee. Nothing herein contained
     4  shall prohibit a manufacturer from extending usual and customary
     5  credit for liquor or malt or brewed beverages sold to customers
     6  or purchasers who live or maintain places of business outside of
     7  the Commonwealth of Pennsylvania, when the liquor or malt or
     8  brewed beverages so sold are actually transported and delivered
     9  to points outside of the Commonwealth: Provided, however, That
    10  as to all transactions affecting malt or brewed beverages to be
    11  resold or consumed within this Commonwealth, every licensee
    12  shall pay and shall require cash deposits on all returnable
    13  original containers and all such cash deposits shall be refunded
    14  upon return of the original containers.
    15     (3)  Exchange of Liquor or Malt or Brewed Beverages For
    16  Merchandise, etc. For any licensee or the [board] commission, or  <--
    17  any employe, servant or agent of a licensee or of the [board]     <--
    18  commission, to sell, offer to sell or furnish any liquor or malt
    19  or brewed beverages to any person on a pass book or store order,
    20  or to receive from any person any goods, wares, merchandise or
    21  other articles in exchange for liquor or malt or brewed
    22  beverages.
    23     (4)  Peddling Liquor or Malt or Brewed Beverages. For any
    24  person, to hawk or peddle any liquor or malt or brewed beverages
    25  in this Commonwealth.
    26     (5)  Failure to Have Brands as Advertised. For any licensee,
    27  his servants, agents or employes, to advertise or hold out for
    28  sale any liquor or malt or brewed beverages by trade name or
    29  other designation which would indicate the manufacturer or place
    30  of production of the said liquor or malt or brewed beverages,
    19870H1000B1735                 - 181 -

     1  unless he shall actually have on hand and for sale a sufficient
     2  quantity of the particular liquor or malt or brewed beverages so
     3  advertised to meet requirements to be normally expected as a
     4  result of such advertisement or offer.
     5     (6)  Brand or Trade Name on Spigot. For any licensee, his
     6  agents, servants or employes, to furnish or serve any malt or
     7  brewed beverages from any faucet, spigot or other dispensing
     8  apparatus, unless the trade name or brand of the product served
     9  shall appear in full sight of the customer and in legible
    10  lettering upon such faucet, spigot or dispensing apparatus.
    11     (7)  Alcoholic Strength on Label of Malt or Brewed Beverages.
    12  For any licensee, or his servants, agents or employes, to
    13  transport, sell, deliver or purchase any malt or brewed
    14  beverages upon which there shall appear a label or other
    15  informative data which in any manner refers to the alcoholic
    16  contents of the malt or brewed beverage, or which refers in any
    17  manner to the original alcoholic strength, extract or balling
    18  proof from which such malt or brewed beverage was produced. This
    19  clause shall not be construed to prohibit a manufacturer from
    20  designating upon the label or descriptive data the alcoholic
    21  content of malt or brewed beverages intended for shipment into
    22  another state or territory, when the laws of such state or
    23  territory require that the alcoholic content of the malt or
    24  brewed beverage must be stated upon the package.
    25     (8)  Advertisements on Labels Giving Alcoholic Content of
    26  Malt or Brewed Beverages. For any manufacturer or other
    27  licensee, or his servants, agents or employes, to issue, publish
    28  or post, or cause to be issued, published or posted, any
    29  advertisement of any malt or brewed beverage including a label
    30  which shall refer in any manner to the alcoholic strength of the
    19870H1000B1735                 - 182 -

     1  malt or brewed beverage manufactured, sold or distributed by
     2  such licensees, or to use in any advertisement or label such
     3  words as "full strength," "extra strength," "high test," "high
     4  proof," "pre-war strength," or similar words or phrases, which
     5  would lead or induce a consumer to purchase a brand of malt or
     6  brewed beverage on the basis of its alcoholic content, or to use
     7  in or on any advertisement or label any numeral, unless
     8  adequately explained in type of the same size, prominence and
     9  color, or for any licensee to purchase, transport, sell or
    10  distribute any malt or brewed beverage advertised or labeled
    11  contrary to the provisions of this clause.
    12     (9)  Retail Licensees Furnishing Free Lunch, etc. For any
    13  retail liquor licensee or any retail dispenser, his agents,
    14  servants or employes, to furnish, give or sell below a fair cost
    15  any lunch to any consumer, except such articles of food as the
    16  [board] commission may authorize and approve.                     <--
    17     (10)  Entertainment on Licensed Premises (Except Clubs);
    18  Permits; Fees. For any licensee, his servants, agents or
    19  employes, except club licensees, to permit in any licensed
    20  premises or in any place operated in connection therewith,
    21  dancing, theatricals or floor shows of any sort, or moving
    22  pictures other than television, or such as are exhibited through
    23  machines operated by patrons by the deposit of coins, which
    24  project pictures on a screen not exceeding in size twenty-four
    25  by thirty inches and which forms part of the machine, unless the
    26  licensee shall first have obtained from the [board] commission a  <--
    27  special permit to provide such entertainment, or for any
    28  licensee, under any circumstances, to permit in any licensed
    29  premises any lewd, immoral or improper entertainment, regardless
    30  of whether a permit to provide entertainment has been obtained
    19870H1000B1735                 - 183 -

     1  or not. The [board] commission shall have power to provide for    <--
     2  the issue of such special permits, and to collect a fee for such
     3  permits equal to one-fifth of the annual license fee but not
     4  less than twenty-five dollars ($25). All such fees shall be paid
     5  into The State Stores Fund. No such permit shall be issued in
     6  any municipality which, by ordinance, prohibits amusements in
     7  licensed places. Any violation of this clause shall, in addition
     8  to the penalty herein provided, subject the licensee to
     9  suspension or revocation of his permit and his license.
    10     (11)  Licensees Employed by Others. For any hotel, restaurant
    11  or club liquor licensee, or any malt or brewed beverage
    12  licensee, or any servant, agent or employe of such licensee, to
    13  be at the same time employed, directly or indirectly, by any
    14  other person engaged in the manufacture, sale, transportation or
    15  storage of liquor, malt or brewed beverages or alcohol:
    16  Provided, That any person (except a licensee or the manager,
    17  officer or director of a licensee) who is employed by a retail
    18  licensee to prepare or serve food and beverages may be employed
    19  in the same capacity by another retail licensee during other
    20  hours or on other days.
    21     (12)  Failure to Have Records on Premises. For any liquor
    22  licensee, or any importing distributor, distributor or retail
    23  dispenser, to fail to keep on the licensed premises for a period
    24  of at least two years complete and truthful records covering the
    25  operation of his licensed business, particularly showing the
    26  date of all purchases of liquor and malt or brewed beverages,
    27  the actual price paid therefor, and the name of the vendor,
    28  including State Store receipts, or for any licensee, his
    29  servants, agents or employes, to refuse the [board] commission    <--
    30  or an authorized employe of the [board] commission or the         <--
    19870H1000B1735                 - 184 -

     1  enforcement bureau access thereto or the opportunity to make
     2  copies of the same when the request is made during business
     3  hours.
     4     (13)  Retail Licensees Employing Minors. For any hotel,
     5  restaurant or club liquor licensee, or any retail dispenser, to
     6  employ or to permit any minor under the age of eighteen to serve
     7  any alcoholic beverages or to employ or permit any minor under
     8  the age of sixteen to render any service whatever in or about
     9  the licensed premises, nor shall any entertainer under the age
    10  of eighteen be employed or permitted to perform in any licensed
    11  premises in violation of the labor laws of this Commonwealth:
    12  Provided, That in accordance with [board] commission regulations  <--
    13  minors between the ages of sixteen and eighteen may be employed
    14  to serve food, clear tables and perform other similar duties,
    15  not to include the dispensing or serving of alcoholic beverages.
    16     (14)  Permitting Undesirable Persons or Minors to Frequent
    17  Premises. For any hotel, restaurant or club liquor licensee, or
    18  any retail dispenser, his servants, agents or employes, to
    19  permit persons of ill repute, known criminals, prostitutes or
    20  minors to frequent his licensed premises or any premises
    21  operated in connection therewith, except minors accompanied by
    22  parents, guardians, or under proper supervision or except minors
    23  who frequent any restaurant or retail dispensing licensee whose
    24  sales of food and non-alcoholic beverages are equal to seventy
    25  per centum or more of the combined gross sales of both food and
    26  alcoholic beverages on the condition that alcoholic beverages
    27  may not be served at the table or booth at which the said minor
    28  is seated at the time (unless said minor is under proper
    29  supervision as hereinafter defined) and on the further condition
    30  that only table service of alcoholic beverages or take-out
    19870H1000B1735                 - 185 -

     1  service of beer shall be permitted in the room wherein the minor
     2  is located: Provided, however, That it shall not be unlawful for
     3  any hotel, restaurant or club liquor licensee or any retail
     4  dispenser to permit minors under proper supervision upon the
     5  licensed premises or any premises operated in connection
     6  therewith for the purpose of a social gathering, even if such
     7  gathering is exclusively for minors: And provided further, That
     8  no liquor shall be sold, furnished or given to such minors nor
     9  shall the licensee knowingly permit any liquor or malt or brewed
    10  beverages to be sold, furnished or given to or be consumed by
    11  any minor, and the area of such gathering shall be segregated
    12  from the remainder of the licensed premises. In the event the
    13  area of such gathering cannot be segregated from the remainder
    14  of the licensed premises, all alcoholic beverages must be either
    15  removed from the licensed premises or placed under lock and key
    16  during the time the gathering is taking place. Notice of such
    17  gathering shall be given the [Liquor Control Board] Commission    <--
    18  BOARD as it may, by regulation, require. Any licensee violating   <--
    19  the provisions of this clause shall be subject to the provisions
    20  of section 471.
    21     "Proper supervision," as used in this clause, means the
    22  presence, on that portion of the licensed premises where a minor
    23  or minors are present, of one person twenty-five years of age or
    24  older for every fifty minors or part thereof who is directly
    25  responsible for the care and conduct of such minor or minors
    26  while on the licensed premises and in such proximity that the
    27  minor or minors are constantly within his sight or hearing. The
    28  presence of the licensee or any employe or security officer of
    29  the licensee shall not constitute proper supervision.
    30     (15)  Cashing Pay Roll, Public Assistance, Unemployment
    19870H1000B1735                 - 186 -

     1  Compensation or Any Other Relief Checks. For any licensee or his
     2  servants, agents or employes to cash pay roll checks or to cash,
     3  receive, handle or negotiate in any way Public Assistance,
     4  Unemployment Compensation or any other relief checks.
     5     (16)  Furnishing or Delivering Liquor or Malt or Brewed
     6  Beverages at Unlawful Hours. For any licensee, his servants,
     7  agents or employes, to give, furnish, trade, barter, serve or
     8  deliver any liquor or malt or brewed beverages to any person
     9  during hours or on days when the licensee is prohibited by this
    10  act from selling liquor or malt or brewed beverages.
    11     (17)  Licensees, etc., Interested or Employed in
    12  Manufacturing or Sale of Equipment or Fixtures. For any
    13  licensee, or any officer, director, stockholder, servant, agent
    14  or employe of any licensee, to own any interest, directly or
    15  indirectly, in or be employed or engaged in any business which
    16  involves the manufacture or sale of any equipment, furnishings
    17  or fixtures to any hotel, restaurant or club licensees, or to
    18  any importing distributors, distributors or retail dispensers:
    19  Provided, however, That as to malt or brewed beverage licensees,
    20  the provisions of this subsection shall not apply to such a
    21  conflicting interest if it has existed for a period of not less
    22  than three years prior to the first day of January, one thousand
    23  nine hundred thirty-seven, and the [board] commission shall       <--
    24  approve.
    25     (18)  Displaying Price of Liquor or Malt or Brewed Beverages.
    26  For any restaurant, hotel or club liquor licensee, or any
    27  importing distributor, distributor or retail dispenser, or the
    28  servants, agents or employes of such licensees, to display on
    29  the outside of any licensed premises or to display any place
    30  within the licensed premises where it can be seen from the
    19870H1000B1735                 - 187 -

     1  outside, any advertisement whatsoever referring, directly or
     2  indirectly, to the price at which the licensee will sell liquor
     3  or malt or brewed beverages.
     4     (19)  Licensee's Outside Advertisements. For any retail
     5  liquor licensee or any retail dispenser, distributor or
     6  importing distributor, to display in any manner whatsoever on
     7  the outside of his licensed premises, or on any lot of ground on
     8  which the licensed premises are situate, or on any building of
     9  which the licensed premises are a part, a sign of any kind,
    10  printed, painted or electric, advertising any brand of liquor or
    11  malt or brewed beverage, and it shall be likewise unlawful for
    12  any manufacturer, distributor or importing distributor, to
    13  permit the display of any sign which advertises either his
    14  products or himself on any lot of ground on which such licensed
    15  premises are situate, or on any building of which such licensed
    16  premises are a part.
    17     (20)  (i)  Retail Liquor and Retail Malt or Brewed Beverages
    18  Licensee's Inside Advertisements. For any retail liquor or
    19  retail malt or brewed beverages licensee, to display or permit
    20  the display in the show window or doorways of his licensed
    21  premises, any placard or sign advertising the brands of liquor
    22  or malt or brewed beverages produced by any one manufacturer, if
    23  the total display area of any such placard or sign advertising
    24  the products of any one manufacturer exceeds three hundred
    25  square inches. Nothing herein shall prohibit a licensee from
    26  displaying inside his licensed premises point of sale displays
    27  advertising brand names of products sold by him, other than a
    28  window or door display: Provided, That the total cost of all
    29  such point of sale advertising matter relating to any one brand
    30  of any one manufacturer shall not exceed the sum of seventy
    19870H1000B1735                 - 188 -

     1  dollars ($70) at any one time, and no single piece of
     2  advertising shall exceed a cost of thirty-five dollars ($35).
     3  All such advertising material, including the window and door
     4  signs, may be furnished by a manufacturer, distributor or
     5  importing distributor. The restrictions on advertising set forth
     6  in subclause (ii) and in clauses (20.1) and (20.2) shall also
     7  apply to this subclause.
     8     (ii)  Cooperative Advertising. No distributor or importing
     9  distributor, directly or indirectly, independent or otherwise,
    10  shall, except by prior written agreement, be required to
    11  participate with a manufacturer in the purchase of any
    12  advertising of a brand name product in any name, in any form,
    13  whether it be radio, television, newspaper, magazine or
    14  otherwise.
    15     (20.1)  Manufacturer Shall Not Require Advertising. For a
    16  manufacturer to require a distributor or importing distributor
    17  to purchase any type of advertising.
    18     (20.2)  Advertising Shall Be Ordered and Authorized in
    19  Advance. For any advertising to be done on behalf of a
    20  distributor or importing distributor which was not ordered and
    21  authorized in advance by the distributor or importing
    22  distributor.
    23     (21)  Refusing The Right of Inspection. For any licensee, or
    24  his servants, agents or employes, to refuse the [board]           <--
    25  commission or the enforcement bureau or any of [its] their
    26  authorized employes the right to inspect completely the entire
    27  licensed premises at any time during which the premises are open
    28  for the transaction of business, or when patrons, guests or
    29  members are in that portion of the licensed premises wherein
    30  either liquor or malt or brewed beverages are sold.
    19870H1000B1735                 - 189 -

     1     (22)  Allowance or Rebate to Induce Purchases. For any
     2  licensee, or his servants, agents or employes, to offer, pay,
     3  make or allow, or for any licensee, or his servants, agents or
     4  employes, to solicit or receive any allowance or rebate, refunds
     5  or concessions, whether in the form of money or otherwise, to
     6  induce directly the purchase of liquor or malt or brewed
     7  beverages.
     8     (23)  Money or Valuables Given to Employes to Influence
     9  Actions of Their Employers. For any licensee, or any agent,
    10  employe or representative of any licensee, to give or permit to
    11  be given, directly or indirectly, money or anything of
    12  substantial value, in an effort to induce agents, employes or
    13  representatives of customers or prospective customers to
    14  influence their employer or principal to purchase or contract to
    15  purchase liquor or malt or brewed beverages from the donor of
    16  such gift, or to influence such employers or principals to
    17  refrain from dealing or contracting to deal with other
    18  licensees.
    19     (24)  Things of Value Offered as Inducement. For any licensee
    20  under the provisions of this article, or the [board] commission   <--
    21  or any manufacturer, or any employe or agent of a manufacturer,
    22  licensee or of the [board] commission, to offer to give anything  <--
    23  of value or to solicit or receive anything of value as a premium
    24  for the return of caps, stoppers, corks, stamps or labels taken
    25  from any bottle, case, barrel or package containing liquor or
    26  malt or brewed beverage, or to offer or give or solicit or
    27  receive anything of value as a premium or present to induce
    28  directly the purchase of liquor or malt or brewed beverage, or
    29  for any licensee, manufacturer or other person to offer or give
    30  to trade or consumer buyers any prize, premium, gift or other
    19870H1000B1735                 - 190 -

     1  inducement to purchase liquor or malt or brewed beverages,
     2  except advertising novelties of nominal value which the [board]   <--
     3  commission shall define[: Provided, however, That this]. This
     4  section shall not prevent any manufacturer or any agent of a
     5  manufacturer from offering ONLY ON LICENSED PREMISES and          <--
     6  honoring coupons which offer monetary rebates on purchases of
     7  wines and spirits through State Liquor Stores AND PURCHASES OF    <--
     8  MALT OR BREWED BEVERAGES in accordance with conditions or
     9  regulations established by the commission BOARD. Further, no      <--
    10  manufacturer or any agent of a manufacturer shall honor any
    11  coupons without proof of purchase in the form of a sales slip or
    12  receipt attached to the coupons. This section shall not apply to
    13  the return of any monies specifically deposited for the return
    14  of the original container to the owners thereof.
    15     (25)  Employment of Females in Licensed Places. For any
    16  licensee or his agent, to employ or permit the employment of any
    17  female at his licensed hotel, restaurant or eating place for the
    18  purpose of enticing customers, or to encourage them to drink
    19  liquor, or make assignations for improper purposes: Provided,
    20  That nothing in this section shall be construed to prevent the
    21  employment of any female waitress who regularly takes orders for
    22  food from serving food, liquor or malt or brewed beverages at
    23  tables; also, that nothing shall prevent any such licensees from
    24  employing any female stenographer, hotel secretary, clerk or
    25  other employe for their respective positions: Provided further,
    26  That nothing in this section shall be so construed as to prevent
    27  the wife of any such licensee or agent or any employed female
    28  from mixing or serving liquor or malt or brewed beverages behind
    29  the bar of any such licensed place.
    30     Any person violating the provisions of this clause shall be
    19870H1000B1735                 - 191 -

     1  guilty of a misdemeanor and, upon conviction of the same, shall
     2  be sentenced to pay a fine of not less than one hundred dollars
     3  ($100), nor more than five hundred dollars ($500), for each and
     4  every female so employed, or undergo an imprisonment of not less
     5  than three (3) months, nor more than one (1) year, or either or
     6  both, at the discretion of the court having jurisdiction of the
     7  case. The [board] administrative law judge shall have the power
     8  to revoke or refuse licenses for violation of this clause.
     9     (26)  Worthless Checks. For any retail liquor licensee or any
    10  retail dispenser, distributor or importing distributor, to make,
    11  draw, utter, issue or deliver, or cause to be made, drawn,
    12  uttered, issued or delivered, any check, draft or similar order,
    13  for the payment of money in payment for any purchase of malt or
    14  brewed beverages, when such retail liquor licensee, retail
    15  dispenser, distributor or importing distributor, has not
    16  sufficient funds in, or credit with, such bank, banking
    17  institution, trust company or other depository, for the payment
    18  of such check. Any person who is a licensee under the provisions
    19  of this article, who shall receive in payment for malt or brewed
    20  beverages sold by him any check, draft or similar order for the
    21  payment of money, which is subsequently dishonored by the bank,
    22  banking institution, trust company or other depository, upon
    23  which drawn, for any reason whatsoever, shall, within five days
    24  of receipt of notice of such dishonor, notify by certified mail
    25  the person who presented the said worthless check, draft or
    26  similar order.
    27     (27)  Distributors and Importing Distributors Employing
    28  Minors. For any distributor or importing distributor to employ
    29  minors under the age of eighteen but persons eighteen and over
    30  may be employed to sell and deliver malt and brewed beverages.
    19870H1000B1735                 - 192 -

     1     Section 82.  Section 494 of the act, amended May 25, 1956
     2  (1955 P.L.1743, No.583), is reenacted and amended to read:
     3     Section 494.  Penalties.--(a)  Any person who shall violate
     4  any of the provisions of this article, except as otherwise
     5  specifically provided, shall be guilty of a misdemeanor and,
     6  upon conviction thereof, shall be sentenced to pay a fine of not
     7  less than one hundred dollars ($100), nor more than five hundred
     8  dollars ($500), and on failure to pay such fine, to imprisonment
     9  for not less than one month, nor more than three months, and for
    10  any subsequent offense, shall be sentenced to pay a fine not
    11  less than three hundred dollars ($300), nor more than five
    12  hundred dollars ($500), and to undergo imprisonment for a period
    13  not less than three months, nor more than one year, OR BOTH. IF   <--
    14  THE PERSON, AT OR RELATING TO THE LICENSED PREMISES, VIOLATES
    15  SECTION 493(1), (10), (14), (16) OR (21), OR IF THE OWNER OR
    16  OPERATOR OF THE LICENSED PREMISES OR ANY AUTHORIZED AGENT OF THE
    17  OWNER OR OPERATOR VIOLATES THE ACT OF APRIL 14, 1972 (P.L.233,
    18  NO.64), KNOWN AS "THE CONTROLLED SUBSTANCE, DRUG, DEVICE AND
    19  COSMETIC ACT," OR OF 18 PA.C.S. § 5902 (RELATING TO PROSTITUTION
    20  AND RELATED OFFENSES) OR 6301 (RELATING TO CORRUPTION OF
    21  MINORS), HE SHALL BE SENTENCED TO PAY A FINE NOT EXCEEDING FIVE
    22  THOUSAND DOLLARS ($5,000) OR TO UNDERGO IMPRISONMENT FOR A
    23  PERIOD NOT LESS THAN THREE MONTHS, NOR MORE THAN ONE YEAR, OR
    24  BOTH.
    25     (b)  The right [of the board] to suspend and revoke licenses
    26  granted under this article shall be in addition to the penalty
    27  set forth in this section.
    28     Section 83.  Section 495 of the act, amended June 22, 1980
    29  (P.L.262, No.76), is reenacted and amended to read:
    30     Section 495.  Identification Cards; Licensees and State
    19870H1000B1735                 - 193 -

     1  Liquor Store Employes Saved From Prosecution.--[(a)  The board
     2  shall issue, to any person who shall have attained the age of
     3  twenty-one years, an identification card bearing said person's
     4  date of birth, physical description, photograph, signature, and
     5  such other information, as the board by regulation may
     6  determine, attesting to the age of the applicant, upon
     7  application therefor by said person, filed no earlier than
     8  fifteen days prior to attaining the age of twenty-one. Such
     9  cards shall be numbered and a record thereof maintained by the
    10  board for a period of five years. The board may, in its
    11  discretion, impose a charge for such cards in an amount to be
    12  determined by it, and it may, upon proof of loss of such
    13  identification card by and upon application of anyone to whom
    14  such card may have been issued, issue a duplicate thereof and
    15  impose a charge therefor in an amount as it may by regulation
    16  prescribe. The board shall have the power to make such
    17  regulations as it shall, from time to time, deem proper
    18  regarding the size, style and additional content of the
    19  identification card, the form and content of any application
    20  therefor, the type, style and quantity of proof required to
    21  verify the applicant's age, the procedure for receiving and
    22  processing such application, the distribution of said card, the
    23  charge to be imposed for any card more than one that it shall
    24  issue to the same applicant, and all other matters the board
    25  shall deem necessary or advisable for the purpose of carrying
    26  into effect the provisions of this section.
    27     (a.1)] (a)  The photo driver's license or identification card
    28  issued by the Department of Transportation shall, for the
    29  purpose of this act, be accepted as an identification card.
    30     [(a.2)  For the purposes of this section, the term
    19870H1000B1735                 - 194 -

     1  identification card means a card which complies with either
     2  subsection (a) or (a.1).]
     3     (b)  Such identification card shall be presented by the
     4  holder thereof upon request of any State Liquor Store or any
     5  licensee, or the servant, agent or employe thereof, for the
     6  purpose of aiding such store, licensee, or the servant, agent or
     7  employe to determine whether or not such person is twenty-one
     8  years of age and upwards, when such person desires alcoholic
     9  beverage at a State Liquor Store or licensed establishment.
    10     (c)  In addition to the presentation of such identification
    11  card, the agent of the State Liquor Store or the licensee, or
    12  his servant, agent or employe, shall require the person whose
    13  age may be in question to fill in and sign a card in the
    14  following form:
    15                               ............................ 19
    16     I,........................................., hereby represent
    17  to ..........................................., a State Store or
    18  licensee of the [Pennsylvania Liquor Control Board] Alcohol
    19  Beverages Commission, that I am of full age and discretion
    20  and over the age of 21 years, having been born on
    21  ....................... 19..... at ..........................
    22  This statement is made to induce said store or licensee above
    23  named to sell or otherwise furnish alcoholic beverages to the
    24  undersigned.
    25  Serial Number of Identification Card:
    26     I understand that I am subject to a fine of
    27  $300.00 and sixty days imprisonment for any
    28  misrepresentation herein.
    29                                                ..................
    30                                                     (Name)
    19870H1000B1735                 - 195 -

     1                                                ..................
     2                                                    (Address)
     3  Witness:
     4  Name............................
     5  Address.........................
     6     Such statement shall be printed upon a 3 inch by 5 inch or 4
     7  inch by 5 inch file card, which card shall be filed
     8  alphabetically by the State Liquor Store or licensee, at or
     9  before the close of business on the day of which said
    10  certificate is executed, in a file box containing a suitable
    11  alphabetical index, and which card shall be subject to
    12  examination by any officer, agent or employe of the [Liquor
    13  Control Board] commission BOARD at any and all times.             <--
    14     (d)  It shall be unlawful for the owner of an identification
    15  card, as defined by this act, to transfer said card to any other
    16  person for the purpose of aiding such person to secure alcoholic
    17  beverage. Any person who shall transfer such identification card
    18  for the purpose of aiding such transferee to obtain alcoholic
    19  beverage shall be guilty of a misdemeanor and, upon conviction
    20  thereof, shall be sentenced to pay a fine of not more than three
    21  hundred dollars ($300), or undergo imprisonment for not more
    22  than sixty (60) days. Any person not entitled thereto who shall
    23  have unlawfully procured or have issued or transferred to him,
    24  as aforesaid, identification card or any person who shall make
    25  any false statement on any card required by subsection (c)
    26  hereof to be signed by him shall be guilty of a misdemeanor and,
    27  upon conviction thereof, shall be sentenced to pay a fine of not
    28  more than three hundred dollars ($300), or undergo imprisonment
    29  for not more than sixty (60) days.
    30     (e)  The signed statement in the possession of a licensee or
    19870H1000B1735                 - 196 -

     1  an employe of a State Liquor Store may be offered as a defense
     2  in all civil and criminal prosecutions for serving a minor, and
     3  no penalty shall be imposed if the [Liquor Control Board]
     4  commission BOARD or the courts are satisfied that the licensee    <--
     5  or State Liquor Store employe acted in good faith.
     6     Section 84.  Section 496 of the act, added June 15, 1961
     7  (P.L.423, No.211), is reenacted and amended to read:              <--
     8     Section 496.  Reporting of Worthless Checks.--Any person who
     9  is a licensee under the provisions of this article, who shall
    10  receive in payment for malt or brewed beverages sold by him any
    11  check, draft or similar order, for the payment of money, which
    12  is subsequently dishonored by the bank, banking institution,
    13  trust company or other depository, upon which drawn, for any
    14  reason whatsoever, shall, within twenty days of receipt of
    15  notice of such dishonor, notify the [board] commission thereof.   <--
    16  Such notification to the [board] commission shall be in such      <--
    17  manner and form as the board shall direct.
    18     Section 85.  Section 497 of the act, added December 22, 1965
    19  (P.L.1144, No.441), is reenacted to read:
    20     Section 497.  Liability of Licensees.--No licensee shall be
    21  liable to third persons on account of damages inflicted upon
    22  them off of the licensed premises by customers of the licensee
    23  unless the customer who inflicts the damages was sold, furnished
    24  or given liquor or malt or brewed beverages by the said licensee
    25  or his agent, servant or employe when the said customer was
    26  visibly intoxicated.
    27     Section 86.  The act is amended by adding a section to read:   <--
    28     Section 498.  Unlawful Advertising.--(a)  No manufacturer,
    29  wholesaler or shipper whether from outside or inside this
    30  Commonwealth and no licensee under this act shall cause or
    19870H1000B1735                 - 197 -

     1  permit the advertising in any manner whatsoever of the price of
     2  any malt beverage, cordial, wine or distilled liquor offered for
     3  sale in this Commonwealth: Provided, however, That the
     4  provisions of this section shall not apply to price signs or
     5  tags attached to or placed on merchandise for sale within the
     6  licensed premises in accordance with rules and regulations of
     7  the commission.
     8     (b)  No newspaper, periodical, radio or television
     9  broadcaster or broadcasting company or any other person, firm or
    10  corporation with a principal place of business in this
    11  Commonwealth which is engaged in the business of advertising or
    12  selling advertising time or space shall accept, publish or
    13  broadcast any advertisement in this Commonwealth of the price or
    14  make reference to the price of any alcoholic beverages.
    15     (c)  Any person who shall violate any of the provisions of
    16  this section shall be guilty of a misdemeanor and upon
    17  conviction shall be punished for the first offense by a fine in
    18  the sum of fifty dollars ($50) and for each additional offense
    19  thereafter by a fine not exceeding the sum of one hundred
    20  dollars ($100). Publication or broadcast by any person in
    21  violation of the provisions of this section shall also be
    22  subject to injunctive proceedings in a court of competent
    23  jurisdiction on a complaint brought by a retail licensee or an
    24  association of retail licensees.
    25     (d)  The provisions of this section shall not apply to any
    26  trade journal which is duly recognized and authorized to be
    27  exempt from the provisions of this section by the commission.
    28     Section 87.  The heading of Article V of the act is reenacted
    29  to read:
    30                             ARTICLE V.
    19870H1000B1735                 - 198 -

     1             DISTILLERIES, WINERIES, BONDED WAREHOUSES,
     2            BAILEES FOR HIRE AND TRANSPORTERS FOR HIRE.
     3     Section 88.  Section 501 of the act is reenacted to read:
     4     Section 501.  License Required.--Except as otherwise provided
     5  in this article, and except as otherwise provided in article
     6  four as to malt and brewed beverages, it shall be unlawful for
     7  any person without a license obtained under provisions of this
     8  article to hold in storage as bailee for hire, or transport for
     9  hire, any malt or brewed beverage, or to manufacture, produce,
    10  distill, develop or use in the process of manufacture, denature,
    11  redistill, recover, rectify, blend, reuse, hold in bond, hold in
    12  storage as bailee for hire, or transport for hire, within this
    13  Commonwealth, any alcohol or liquor, except that a person may
    14  manufacture wine out of grapes grown in Pennsylvania by
    15  fermentation only and with no alcohol or alcoholic product added
    16  thereto by way of fortification and sell the same to a licensed
    17  winery.
    18     Section 89.  Section 502 of the act is reenacted and amended
    19  to read:
    20     Section 502.  Exemptions.--No license hereunder shall be
    21  required from any registered pharmacist; or a physician licensed
    22  by the State Board of [Medical Education and Licensure]
    23  Medicine; or any person who makes and sells vinegar,
    24  nonalcoholic cider and fruit juices; or any person who
    25  manufactures, stores, sells or transports methanol, propanol,
    26  butanol and amanol; or any person who conducts a wholesale drug
    27  business; or any person who manufactures alcoholic preparations
    28  not fit for use as a beverage, other than denatured alcohol or
    29  for beverage purposes; any person engaged in the manufacture;
    30  possession or sale of patent, patented or proprietary medicines,
    19870H1000B1735                 - 199 -

     1  toilet, medicinal or antiseptic preparations unfit for beverage
     2  purposes, or solutions or flavoring extracts or syrups unfit for
     3  beverage purposes; or any person who manufactures or sells
     4  paints, varnishes, enamels, lacquers, stains or paint, or
     5  varnish removing or reducing compounds, or wood fillers; or any
     6  person who manufactures any substance where the alcohol or any
     7  liquor is changed into other chemical substances and does not
     8  appear in the finished product as alcohol or liquor; or any
     9  common carrier by railroad which is subject to regulation by the
    10  Pennsylvania Public Utility Commission of the Commonwealth of
    11  Pennsylvania, or scheduled common carriers by air of mail and
    12  passengers; or any person who sells, stores or transports
    13  alcohol or liquor completely denatured, as specified by the
    14  [board] commission.                                               <--
    15     Section 90.  Section 502.1 of the act, added December 14,
    16  1979 (P.L.565, No.129), is reenacted and amended to read:         <--
    17     Section 502.1.  Production of Denatured Ethyl Alcohol.--(a)
    18  Notwithstanding any other provisions of this act, a person may
    19  upon payment of an annual registration fee of twenty-five
    20  dollars ($25) and without the necessity of having to post a
    21  bond, manufacture or distill, hold in storage and use denatured
    22  ethyl alcohol for the purpose of providing fuel for personal or
    23  business vehicles or machinery.
    24     (b)  No denatured ethyl alcohol produced under the provisions
    25  of this section may be sold or utilized by any person other than
    26  the producer.
    27     (c)  Each licensee shall file annually with the [board]        <--
    28  commission accurate records of the monthly production and
    29  utilization of denatured ethyl alcohol fuel. The [board]          <--
    30  commission shall prescribe the form to be used for this report.
    19870H1000B1735                 - 200 -

     1     (d)  Any violation of this section shall be subject to the
     2  penalties set forth in section 519.
     3     Section 91.  Section 503 of the act is reenacted to read:
     4     Section 503.  Qualifications for License.--No license shall
     5  be issued under the provisions of this article to any person
     6  unless (a) in case of individuals, he or she is a citizen of the
     7  United States of America, (b) in case of companies or
     8  unincorporated associations of individuals, each and every one
     9  is a citizen of the United States of America, (c) in case of
    10  corporations, each and every stockholder thereof is a citizen of
    11  the United States of America.
    12     Section 92.  Section 504 of the act, amended September 28,
    13  1961 (P.L.1728, No.702), is reenacted and amended to read:
    14     Section 504.  Applications; Filing Fees.--(a)  Every
    15  applicant for a license under this article shall file with the
    16  [board] commission a written application in such form as the      <--
    17  [board] commission shall from time to time require. Every such    <--
    18  application shall be accompanied by a filing fee of twenty
    19  dollars ($20), the prescribed license fee and the bond
    20  hereinafter specified, and shall set forth:
    21     [1.] (1)  The legal names of the applicant and of the owner
    22  of the place where business under the license will be carried
    23  on, with their residence addresses by street and number, if a
    24  partnership, of each separate partner, and if a corporation, of
    25  each individual officer thereof.
    26     [2.] (2)  The exact location of said place of business and of
    27  every place to be occupied or used in connection with such
    28  business, the productive capacity of each plant where any
    29  alcohol or liquor is to be manufactured, produced, distilled,
    30  rectified, blended, developed or used in the process of
    19870H1000B1735                 - 201 -

     1  manufacture, denatured, redistilled, recovered, reused, the
     2  capacity of every warehouse or other place where such alcohol or
     3  liquor or malt or brewed beverage is to be held in bond or
     4  stored for hire, or the equipment to be used where a
     5  transportation business is to be carried on under the license.
     6     [3.] (3)  That each and every one of the applicants is a
     7  citizen of the United States of America.
     8     [4.] (4)  Such other relevant information as the [board]       <--
     9  commission shall from time to time require by rule or
    10  regulation.
    11     (b)  Each application must be verified by affidavit of the
    12  applicant made before any officer legally qualified to
    13  administer oaths, and if any false statement is wilfully made in
    14  any part of said application, the applicant or applicants shall
    15  be deemed guilty of a misdemeanor and, upon conviction, shall be
    16  subject to the penalties provided by this article.
    17     Section 93.  Section 505 of the act, amended July 31, 1968
    18  (P.L.902, No.272), is reenacted and amended to read:              <--
    19     Section 505.  Licenses Issued.--Upon receipt of the
    20  application in the form herein provided, the proper fees and an
    21  approved bond as herein designated, the [board] commission may    <--
    22  grant to such applicant a license to engage in, (a) the
    23  operation of a limited winery or a winery; or, (b) the
    24  manufacturing, producing, distilling, developing, or using in
    25  the process of manufacturing, denaturing, redistilling,
    26  recovering, rectifying, blending and reusing of alcohol and
    27  liquor; or, (c) the holding in bond of alcohol and liquor; or,
    28  (d) the holding in storage, as bailee for hire, of alcohol,
    29  liquor and malt or brewed beverages; or, (e) the transporting
    30  for hire of alcohol, liquor and malt or brewed beverages.
    19870H1000B1735                 - 202 -

     1     Section 94.  Section 505.1 of the act, amended February 17,
     2  1956 (1955 P.L.1077, No.348), is reenacted and amended to read:
     3     Section 505.1.  Bonded Warehouse License Privilege
     4  Restrictions.--(a)  Holders of bonded warehouse licenses may:
     5     [(a)] (1)  Receive and store in bond liquor owned by
     6  Pennsylvania licensed manufacturers and importers.
     7     [(b)] (2)  Receive and store in bond alcohol owned by
     8  Pennsylvania licensed manufacturers.
     9     [(c)] (3)  Receive and store in bond liquor owned by
    10  licensees outside this Commonwealth. Such liquor shall be
    11  released from the bonded warehouse for delivery within this
    12  Commonwealth only to persons holding a liquor importer's license
    13  issued by the [Pennsylvania Liquor Control Board] commission      <--
    14  BOARD authorizing the importation of liquor or to other storage   <--
    15  facilities or persons outside this Commonwealth.
    16     [(d)] (4)  Receive and store in bond alcohol owned by
    17  licensees outside this Commonwealth. Such alcohol shall be
    18  released from the bonded warehouse for delivery within this
    19  Commonwealth only to persons holding an alcohol permit issued by
    20  the [Pennsylvania Liquor Control Board] commission BOARD          <--
    21  authorizing the importation of alcohol or to other storage
    22  facilities or persons outside this Commonwealth.
    23     (b)  All liquor and alcohol received and stored pursuant to
    24  this section shall be in original containers of ten gallons or
    25  greater capacity. Liquor and alcohol placed in storage in
    26  accordance with the foregoing provisions may remain in storage
    27  notwithstanding any change in ownership.
    28     Section 95.  Section 505.2 of the act, amended November 5,
    29  1981 (P.L.329, No.119) and December 17, 1982 (P.L.1390, No.319),
    30  is reenacted and amended to read:
    19870H1000B1735                 - 203 -

     1     Section 505.2.  Limited Wineries.--Holders of a limited
     2  winery license may:
     3     (1)  Produce wines and wine coolers only from fruits grown in
     4  Pennsylvania in an amount not to exceed [one hundred thousand     <--
     5  (100,000)] TWO HUNDRED THOUSAND (200,000) gallons per year.       <--
     6     (2)  Sell wine and wine coolers produced by the limited
     7  winery or purchased in bulk in bond from another Pennsylvania
     8  limited winery on the licensed premises, under such conditions
     9  and regulations as the [board] commission may enforce, to the     <--
    10  [Liquor Control Board] commission BOARD, to individuals and to    <--
    11  hotel, restaurant, club and public service liquor licensees, and
    12  to Pennsylvania winery licensees: Provided, That a limited
    13  winery shall not, in any calendar year, purchase wine produced
    14  by other limited wineries in an amount in excess of fifty per
    15  centum of the wine produced by the purchasing limited winery in
    16  the preceding calendar year.
    17     (3)  [Sell] Separately or in conjunction with other limited
    18  wineries, sell wine and wine coolers produced by the limited
    19  winery [on no more than [three] FIVE board-approved] at           <--
    20  commission-approved locations other than the licensed premises,
    21  with no bottling or production requirement at those additional
    22  [board-approved] commission-approved locations and under such     <--
    23  conditions and regulations as the [board] commission may          <--
    24  enforce, to the [Liquor Control Board] commission BOARD, to       <--
    25  individuals and to hotel, restaurant, club and public service
    26  liquor licensees.
    27     Section 96.  Section 505.3 of the act, added July 30, 1975
    28  (P.L.136, No.68), is reenacted and amended to read:
    29     Section 505.3.  Distilleries.--Distilleries of historical
    30  significance established more than one hundred years prior to
    19870H1000B1735                 - 204 -

     1  January 1, 1975 which hold a license issued under section 505
     2  may sell liquor produced by the distillery on the licensed
     3  premises under such conditions and regulations as the [board]     <--
     4  commission may enforce.
     5     Section 97.  Sections 506 and 507 of the act are reenacted
     6  and amended to read:
     7     Section 506.  Bonds Required.--(a)  No license shall be
     8  issued to any such applicant until he has filed with the [board]  <--
     9  commission an approved bond, duly executed, payable to the
    10  Commonwealth of Pennsylvania, together with a warrant of
    11  attorney to confess judgment in the penal sum herein set forth.
    12  All such bonds shall be conditioned for the faithful observance
    13  of all the laws of this Commonwealth and regulations of the
    14  [board] commission relating to alcohol, liquor and malt or        <--
    15  brewed beverages and the conditions of the license, and shall
    16  have as surety a duly authorized surety company, or shall have
    17  deposited therewith, as collateral security, cash or negotiable
    18  obligations of the United States of America or the Commonwealth
    19  of Pennsylvania in the same amount as herein provided for the
    20  penal sum of bonds.
    21     (b)  In all cases where cash or securities in lieu of other
    22  surety have been deposited with the [board] commission, the       <--
    23  depositor shall be permitted to continue the same deposit from
    24  year to year on each renewal of license, but in no event shall
    25  he be permitted to withdraw his deposit during the time he holds
    26  said license, or until six months after the expiration of the
    27  license held by him, or while revocation proceedings are pending
    28  against such licensee.
    29     (c)  All cash or securities received by the [board]            <--
    30  commission in lieu of other surety shall be turned over by the
    19870H1000B1735                 - 205 -

     1  [board] commission to the State Treasurer and held by him. The    <--
     2  State Treasurer shall repay or return money or securities
     3  deposited with him to the respective depositors only on the
     4  order of the [board] commission.                                  <--
     5     (d)  After notice from the [board] commission that such a      <--
     6  bond has been forfeited, the State Treasurer shall immediately
     7  pay into the State Stores Fund all cash deposited as collateral
     8  with such bond, and when securities have been deposited with
     9  such a bond, the State Treasurer shall sell at private sale, at
    10  not less than the prevailing market price, any such securities
    11  so deposited as collateral with any such forfeited bond. The
    12  State Treasurer shall thereafter deposit in The State Stores
    13  Fund the net amount realized from the sale of such securities,
    14  except that if the amount so realized, after deducting proper
    15  costs and expenses, is in excess of the penal amount of the
    16  bond, such excess shall be paid over by him to the obligor on
    17  such forfeited bond.
    18     (e)  The penal sum of bonds required to be filed by
    19  applicants for license shall be as follows:
    20     In the case of a distillery (manufacturer), the bond shall be
    21  in the amount of ten thousand dollars ($10,000); in the case of
    22  a bonded warehouse, a bailee for hire and a transporter for
    23  hire, each shall be in the amount of three thousand dollars
    24  ($3000); and in the case of a winery, shall be in the amount of
    25  five thousand dollars ($5000). Such bonds shall be filed with
    26  and retained by the [board] commission.                           <--
    27     (f)  Every such bond shall be turned over to the [Department
    28  of Justice] Attorney General to be collected if and when the
    29  licensee's license shall have been revoked and his bond
    30  forfeited as provided in this act.
    19870H1000B1735                 - 206 -

     1     Section 507.  Hearings [Upon Refusal of Licenses] on Licenses
     2  and Refusals.--(a)  The [board] commission may of its own         <--
     3  motion, and shall upon the written request of the enforcement
     4  bureau or of any applicant for license or for renewal thereof
     5  whose application for such license or renewal has been refused,
     6  fix a time and place for hearing of such application or renewal,
     7  notice of which hearing shall be sent to the bureau and to the
     8  applicant, by registered mail, at the address given in his
     9  application. Such hearing shall be before the [board]             <--
    10  commission, a member thereof, or an [examiner designated by the   <--
    11  [board] administrative law judge.                                 <--
    12     (b)  At such hearing, the [board] commission shall present     <--
    13  its reasons for its refusal or withholding of such license or
    14  renewal thereof or the bureau shall present its objections to
    15  the granting or renewal of the license, as the case may be. The
    16  applicant may appear in person or by counsel, may cross-examine
    17  the witnesses for the [board] commission or the bureau, and may   <--
    18  present evidence which shall likewise be subject to cross-
    19  examination by the [board] commission or the bureau. Such         <--
    20  hearing shall be stenographically recorded. The [examiner]        <--
    21  administrative law judge shall thereafter report to the [board]   <--
    22  commission. The [board] commission shall thereafter grant or      <--
    23  refuse the license or renewal thereof. [If the board shall
    24  refuse such license or renewal following such hearing, notice in
    25  writing of such refusal shall be mailed to the applicant at the
    26  address given in his application. In all cases, the board shall
    27  file of record at least a brief statement in the form of an
    28  opinion of the reasons for the ruling or order.]
    29     (c)  Hearings and adjudications pursuant to this section
    30  shall be in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating
    19870H1000B1735                 - 207 -

     1  to practice and procedure of Commonwealth agencies).
     2     Section 98.  Section 508 of the act, amended July 31, 1968
     3  (P.L.902, No.272), is reenacted and amended to read:
     4     Section 508.  License Fees.--(a)  The annual fee for every
     5  license issued to a limited winery or a winery shall be two
     6  hundred and fifty dollars ($250). The annual fee for every
     7  license issued to a distillery (manufacturer) shall be twenty-
     8  five hundred dollars ($2500) per annum if the annual production
     9  is five hundred thousand (500,000) proof gallons or less, and an
    10  additional fee of one hundred dollars ($100) for each one
    11  hundred thousand (100,000) proof gallons or fraction thereof in
    12  excess of five hundred thousand (500,000) proof gallons, but for
    13  the purpose of determining the amount of the fee payable by a
    14  distillery, the annual production of alcohol that is denatured
    15  by the manufacturer thereof during the license year in
    16  Pennsylvania and not elsewhere shall be excluded, but alcohol or
    17  liquor used by the manufacturer thereof during the license year
    18  in rectification or blending shall not be excluded, except that
    19  no fee for a distillery shall be less than twenty-five hundred
    20  dollars ($2500) per annum. The annual fee for all other licenses
    21  shall be one hundred dollars ($100). The fee for any license
    22  when applied for and issued on or after April first, but prior
    23  to July first, shall be three-fourths of the annual fee; July
    24  first, but prior to October first, shall be one-half of the
    25  annual fee; October first, but prior to January first, one-
    26  fourth of the annual fee.
    27     (b)  For the purpose of this section, the term "proof gallon"
    28  shall mean a gallon liquid which contains one-half its volume of
    29  alcohol of a specific gravity of seven thousand nine hundred
    30  thirty-nine ten thousandths (.7939) at sixty degrees Fahrenheit.
    19870H1000B1735                 - 208 -

     1     Section 99.  Section 509 of the act is reenacted and amended
     2  to read:
     3     Section 509.  License Must Be Posted; Business Hours.--
     4  Licenses shall be issued by the [board] commission under its      <--
     5  official seal. Every license so issued must at all times be
     6  posted in a conspicuous place where the business is carried on
     7  under it, and said place of business must be kept open during
     8  general business hours of every day in the year except Sundays
     9  and legal holidays.
    10     Section 100.  Sections 510 and 511 of the act are reenacted
    11  to read:
    12     Section 510.  Containers To Be Labeled.--All persons, except
    13  as exempted by section five hundred two hereof, manufacturing,
    14  producing, distilling, developing or using in the process of
    15  manufacture, denaturing, redistilling, recovering, rectifying,
    16  blending, reusing, holding in bond, holding in storage as bailee
    17  for hire, or transporting for hire of alcohol or liquor under
    18  the provisions of this article, shall securely and permanently
    19  attach to every container ready for shipment thereof as the same
    20  is manufactured, produced, distilled, developed, denatured,
    21  redistilled, recovered, rectified, blended, reused, a label
    22  stating the name of the manufacturer, kind and quantity of
    23  alcohol or liquor contained therein, and the date of its
    24  manufacture, together with the number of the license authorizing
    25  the manufacture thereof, and all persons possessing such alcohol
    26  or liquor in wholesale quantities shall securely keep and
    27  maintain such label thereon.
    28     Section 511.  License To Specify Each Place Authorized For
    29  Use.--Every license issued under the provision of this article
    30  shall specify by definite location every place to be occupied or
    19870H1000B1735                 - 209 -

     1  used in connection with the business to be conducted thereunder.
     2  It shall be unlawful for the holder of any license to occupy or
     3  use any place in connection with any business authorized under a
     4  license other than the place or places designated therein.
     5     Section 101.  Sections 512, AND 513 and 514 of the act are     <--
     6  reenacted and amended to read:                                    <--
     7     Section 512.  Records To Be Kept.--Every person holding a
     8  license issued under the provisions of this article shall keep
     9  on the licensed premises daily permanent records which shall
    10  show, (a) the quantities of any alcohol or liquor manufactured,
    11  produced, distilled, developed, denatured, redistilled,
    12  recovered, reused, stored in bond, stored as bailee for hire,
    13  received or used in the process of manufacture by him, and of
    14  all other material used in manufacturing or developing any
    15  alcohol or liquor; (b) the sales or other disposition of any
    16  alcohol, liquor or malt or brewed beverages if covered by said
    17  license; (c) the quantities thereof, if any, stored in bond,
    18  stored for hire, or transported for hire by or for the licensee;
    19  and (d) the names and addresses of the purchasers or other
    20  recipients thereof: Provided, however, That persons holding
    21  licenses issued under the provisions of this article for the
    22  transportation for hire of any alcohol, liquor or malt or brewed
    23  beverages shall not be required to keep the above records, but
    24  shall keep daily permanent records showing the names and
    25  addresses of the persons from whom any alcohol, liquor or malt
    26  or brewed beverage was received and to whom delivered, and such
    27  other permanent records as the [board] commission shall           <--
    28  prescribe.
    29     Section 513.  Premises and Records Subject To Inspection.--
    30  Every place operated under license secured under the provisions
    19870H1000B1735                 - 210 -

     1  of this article where any alcohol, liquor or malt or brewed
     2  beverage covered by the license is manufactured, produced,
     3  distilled, developed or used in the process of manufacture,
     4  denatured, redistilled, rectified, blended, recovered, reused,
     5  held in bond, stored for hire or in connection with a licensee's
     6  business, shall be subject to inspection by members of the
     7  [board] commission or by persons duly authorized and designated   <--
     8  by the [board] commission at any and all times of the day or      <--
     9  night, as they may deem necessary, (a) for the detection of
    10  violations of this act or of the rules and regulations of the
    11  [board] commission promulgated under the authority of this act,   <--
    12  or (b) for the purpose of ascertaining the correctness of the
    13  records required by this act to be kept by licensees and the
    14  books and records of licensees, and the books and records of
    15  their customers, in so far as they relate to purchases from said
    16  licensees, shall at all times be open to inspection by the
    17  members of the [board] commission or by persons duly authorized   <--
    18  and designated by the [board] commission for the purpose of       <--
    19  making inspections as authorized by this section. Members of the
    20  [board] commission and the persons duly authorized and            <--
    21  designated by the [board] commission shall have the right,        <--
    22  without fee or hindrance, to enter any place which is subject to
    23  inspection hereunder, or any place where records subject to
    24  inspection hereunder are kept, for the purpose of making such
    25  inspections.
    26     SECTION 101.1.  SECTION 514 OF THE ACT IS REENACTED AND        <--
    27  AMENDED TO READ:
    28     Section 514.  Suspension and Revocation of Licenses.--(a)
    29  Upon learning of any violation of this act or of any rule or
    30  regulation promulgated by the [board] commission under the        <--
    19870H1000B1735                 - 211 -

     1  authority of this act, or any violation of any laws of the
     2  Commonwealth or of the United States of America relating to the
     3  tax payment of alcohol, liquor or malt or brewed beverages by
     4  the holder of a license issued under the provisions of this
     5  article, or upon other sufficient cause, the [board] enforcement
     6  bureau may, within one year from the date of such violation or
     7  cause appearing, cite such licensee to appear before [it or its
     8  examiner] an administrative law judge not less than ten (10) nor
     9  more than [fifteen (15)] sixty (60) days from the date of
    10  sending such licensee, by registered mail, a notice addressed to
    11  his licensed premises, to show cause why the license should not
    12  be suspended or revoked. Hearings on such citations shall be
    13  held in the same manner as provided herein for hearings on
    14  applications for license. And upon such hearing, if satisfied
    15  that any such violation has occurred or for other sufficient
    16  cause, the [board] administrative law judge shall immediately
    17  suspend or revoke such license, notifying the licensee thereof
    18  by registered letter addressed to his licensed premises, or to
    19  the address given in his application where no licensed premises
    20  is maintained in Pennsylvania.
    21     (b)  When a license is revoked, the licensee's bond may be
    22  forfeited [by the board]. Any licensee whose license is revoked
    23  shall be ineligible to have a license under this act or under
    24  any other act relating to alcohol, liquor or malt or brewed
    25  beverages until the expiration of three (3) years from the date
    26  such license was revoked. In the event [the board shall revoke a
    27  license] of a revocation, no license shall be granted for the
    28  premises or transferred to the premises in which said license
    29  was conducted for a period of at least one (1) year after the
    30  date of the revocation of the license conducted in the said
    19870H1000B1735                 - 212 -

     1  premises, except in cases where the licensee or a member of his
     2  immediate family is not the owner of the premises, in which case
     3  the [board] commission may, in its discretion, issue or transfer  <--
     4  a license within said year. [In all such cases, the board shall
     5  file of record at least a brief statement in the form of an
     6  opinion of the reasons for the ruling or order.] Such hearing
     7  before and adjudication by an administrative law judge shall be
     8  in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
     9  practice and procedure of Commonwealth agencies).
    10     Section 102.  Section 515 of the act, repealed in part June
    11  3, 1971 (P.L.118, No.6) and April 28, 1978 (P.L.202, No.53), is
    12  reenacted and amended to read:
    13     Section 515.  Appeals.--[Any] The commission BOARD, the        <--
    14  enforcement bureau or any applicant or any licensee aggrieved by
    15  any decision [of the board] refusing, suspending or revoking a
    16  license under the provisions of this article may appeal to the
    17  court of the county in which the licensed premises or the
    18  premises to be licensed are located. In the event an applicant
    19  or a licensee shall have no place of business established within
    20  the Commonwealth, his appeal shall be to the [court of Dauphin
    21  County] Commonwealth Court. Such appeal shall be [upon petition
    22  of the applicant or licensee, as the case may be, who shall
    23  serve a copy thereof upon the board. The said appeal shall act
    24  as a supersedeas, unless upon sufficient cause shown the court
    25  shall determine otherwise. The court shall hear the application
    26  de novo at such time as it shall fix, of which notice shall be
    27  given to the board. The court shall, in the case of a refusal by
    28  the board, either sustain such refusal or order the issuance of
    29  the license to the applicant] in accordance with 2 Pa.C.S. Ch. 7
    30  Subch. A (relating to judicial review of Commonwealth agency
    19870H1000B1735                 - 213 -

     1  action).
     2     Section 103.  Sections 516 and 517 of the act are SECTION 516  <--
     3  OF THE ACT IS reenacted and amended to read:
     4     Section 516.  Compromise Penalty In Lieu of Suspension.--In
     5  those cases where the [board] administrative law judge shall
     6  suspend a license, the [board] administrative law judge may
     7  accept from the licensee an offer in compromise as a penalty in
     8  lieu of such suspension and shall thereupon rescind its order of
     9  suspension. In the case of a distillery licensee, the offer in
    10  compromise shall be at the rate of one hundred dollars ($100)
    11  for each day of suspension; in the case of a bonded warehouse,
    12  bailee for hire and transporter for hire licensees, twenty-five
    13  dollars ($25) for each day; and in the case of a winery
    14  licensee, fifty dollars ($50) for each day. No offer in
    15  compromise may be accepted [by the board] in those cases where
    16  the suspension is for a period in excess of one hundred (100)
    17  days.
    18     SECTION 103.1.  SECTION 517 OF THE ACT IS REENACTED TO READ:   <--
    19     Section 517.  Expiration of Licenses; Renewals.--All licenses
    20  issued under this article shall expire at the close of the
    21  calendar year, but new licenses for the succeeding year shall be
    22  issued upon written application therefor, duly verified by
    23  affidavit, stating that the facts in the original application
    24  are unchanged, and upon payment of the fee as hereinafter
    25  provided and the furnishing of a new bond, without the filing of
    26  further statements or the furnishing of any further information
    27  unless specifically requested by the [board] commission:          <--
    28  Provided, however, That any such license issued to a corporation
    29  shall expire thirty (30) days after any change in the officers
    30  of such corporation, unless the name and address of each such
    19870H1000B1735                 - 214 -

     1  new officer of such corporation shall, within that period, be
     2  reported to the [board] commission by certificate, duly           <--
     3  verified. Applications for renewals must be made not less than
     4  thirty (30) nor more than sixty (60) days before the first day
     5  of January of the ensuing year. All applications for renewal
     6  received otherwise shall be treated as original applications.
     7     Section 104.  Section 518 of the act is reenacted to read:
     8     Section 518.  Unlawful Acts.--(a)  It shall be unlawful for
     9  any person to transport any illegal alcohol, liquor or malt or
    10  brewed beverages.
    11     (b)  Whenever any person withdraws or removes any alcohol or
    12  liquor which has not been denatured from any distillery,
    13  denaturing plant, winery or bonded warehouse for the purpose of
    14  denaturing the same, it shall be unlawful for any such person to
    15  use, sell or conceal, or attempt to use, sell or conceal, or be
    16  concerned in the sale, use or concealment of, any such alcohol
    17  or liquor, unless before such sale or use the said alcohol or
    18  liquor shall be denatured by adding thereto denaturing material
    19  or materials or admixtures thereof which render it unfit for
    20  beverage purposes.
    21     (c)  It shall be unlawful for any person to recover and reuse
    22  or attempt to recover and reuse, by redistillation or by any
    23  other process or means whatsoever, any alcohol or liquor from
    24  denatured alcohol or from any other liquor from denatured
    25  alcohol or from any other liquid, or to knowingly use, sell,
    26  conceal, or otherwise dispose of, alcohol or liquor so recovered
    27  or redistilled.
    28     Section 105.  Section 519 of the act is reenacted and amended
    29  to read:
    30     Section 519.  Penalties.--Any person or persons who knowingly
    19870H1000B1735                 - 215 -

     1  violate any of the provisions of this article, or any person who
     2  shall violate any of the conditions of any license issued under
     3  the provisions of this article, or who shall falsify any record
     4  or report required by this article to be kept, or who shall
     5  violate any rule or regulation of the [board] commission, or who  <--
     6  shall interfere with, hinder or obstruct any inspection
     7  authorized by this article, or prevent any member of the [board]  <--
     8  commission or the enforcement bureau or any person duly
     9  authorized and designated by the [board] commission or the        <--
    10  bureau from entering any place which such member of the [board]   <--
    11  commission or the bureau or such person is authorized by this
    12  article to enter for the purpose of making an inspection, or who
    13  shall violate any other provision of this article, shall be
    14  guilty of a misdemeanor and, upon conviction thereof, shall be
    15  sentenced to pay a fine of not less than one hundred dollars
    16  ($100), nor more than five thousand dollars ($5000), or undergo
    17  imprisonment of not more than three (3) years, or both, at the
    18  discretion of the court.
    19     Section 106.  The headings of Article VI and Subdivision (A)
    20  of Article VI of the act are reenacted to read:
    21                            ARTICLE VI.
    22         PROPERTY ILLEGALLY POSSESSED OR USED; FORFEITURES;
    23                             NUISANCES.
    24                         (A)  Forfeitures.
    25     Section 107.  Sections 601, 602 and 603 of the act, amended
    26  April 20, 1956 (1955 P.L.1508, No.499), are reenacted and
    27  amended to read:
    28     Section 601.  Forfeiture of Property Illegally Possessed or
    29  Used.--No property rights shall exist in any liquor, alcohol or
    30  malt or brewed beverage illegally manufactured or possessed, or
    19870H1000B1735                 - 216 -

     1  in any still, equipment, material, utensil, vehicle, boat,
     2  vessel, animals or aircraft used in the illegal manufacture or
     3  illegal transportation of liquor, alcohol or malt or brewed
     4  beverages, and the same shall be deemed contraband and
     5  proceedings for its forfeiture to the Commonwealth may[, at the
     6  discretion of the board,] be instituted in the manner
     7  hereinafter provided. No such property when in the custody of
     8  the law shall be seized or taken therefrom on any writ of
     9  replevin or like process.
    10     Section 602.  Forfeiture Proceedings.--(a)  The proceedings
    11  for the forfeiture or condemnation of all property shall be in
    12  rem, in which the Commonwealth shall be the plaintiff and the
    13  property the defendant. A petition shall be filed in the court
    14  of [quarter sessions] common pleas, verified by oath or
    15  affirmation of any officer or citizen, containing the following:
    16  (1) a description of the property so seized; (2) a statement of
    17  the time and place where seized; (3) the owner, if known; (4)
    18  the person or persons in possession, if known; (5) an allegation
    19  that the same had been possessed or used or was intended for use
    20  in violation of this act; (6) and, a prayer for an order of
    21  forfeiture that the same be adjudged forfeited to the
    22  Commonwealth, unless cause be shown to the contrary.
    23     (b)  A copy of said petition shall be served personally on
    24  said owner if he can be found within the jurisdiction of the
    25  court, or upon the person or persons in possession at the time
    26  of the seizure thereof. Said copy shall have endorsed thereon a
    27  notice as follows:
    28     "To the Claimant of Within Described Property: You are
    29  required to file an answer to this petition, setting forth your
    30  title in and right to possession of said property, within
    19870H1000B1735                 - 217 -

     1  fifteen (15) days from the service hereof; and you are also
     2  notified that if you fail to file said answer, a decree of
     3  forfeiture and condemnation will be entered against said
     4  property."
     5     Said notice shall be signed by petitioner or his attorney, or
     6  the district attorney or the Attorney General.
     7     (c)  If the owner of said property is unknown or outside the
     8  jurisdiction of the court and there was no person in possession
     9  of said property when seized, or such person so in possession
    10  cannot be found within the jurisdiction of the court, notice of
    11  said petition shall be given by an advertisement in only one
    12  newspaper of general circulation published in the county where
    13  such property shall have been seized, once a week for two (2)
    14  successive weeks. No other advertisement of any sort shall be
    15  necessary, any other law to the contrary notwithstanding. Said
    16  notice shall contain a statement of the seizure of said
    17  property, with a description thereof, the place and date of
    18  seizure, and shall direct any claimants thereof to file a claim
    19  therefor on or before a date given in said notice, which date
    20  shall not be less than ten (10) days from the date of the last
    21  publication.
    22     (d)  Upon the filing of any claim for said property, setting
    23  forth a right of possession thereof, the case shall be deemed at
    24  issue and a time be fixed for the hearing thereof.
    25     (e)  At the time of said hearing, if the Commonwealth shall
    26  produce evidence that the property in question was unlawfully
    27  possessed or used, the burden shall be upon the claimant to show
    28  (1) that he is the owner of said property, (2) that he lawfully
    29  acquired the same, and (3) that it was not unlawfully used or
    30  possessed.
    19870H1000B1735                 - 218 -

     1     In the event such claimant shall prove by competent evidence
     2  to the satisfaction of the court that said liquor, alcohol or
     3  malt or brewed beverage, or still, equipment, material, utensil,
     4  vehicle, boat, vessel, container, animal or aircraft was
     5  lawfully acquired, possessed and used, then the court may order
     6  the same returned or delivered to the claimant; but if it
     7  appears that said liquor, alcohol or malt or brewed beverage or
     8  still, equipment, material or utensil was unlawfully possessed
     9  or used, the court shall order the same destroyed, delivered to
    10  a hospital, or turned over to the [board] commission or           <--
    11  enforcement bureau, as hereinafter provided, or if it appears
    12  that said vehicle, boat, vessel, container, animal or aircraft
    13  was unlawfully possessed or used, the court may, in its
    14  discretion, adjudge same forfeited and condemned as hereinafter
    15  provided.
    16     Section 603.  Disposition of Forfeited Property.--If, upon
    17  petition as hereinbefore provided and hearing before the court
    18  of [quarter sessions] common pleas, it appears that any liquor,
    19  alcohol, or malt or brewed beverage or still, equipment,
    20  material or utensil was so illegally possessed, or used, such
    21  liquor, alcohol or malt or brewed beverage or still, equipment,
    22  material or utensil shall be adjudged forfeited and condemned,
    23  or if it appears that any vehicle, boat, vessel, container,
    24  animal or aircraft was so used in the illegal manufacture or
    25  transportation of liquor, alcohol or malt or brewed beverage,
    26  such property may, in the discretion of the court, be adjudged
    27  forfeited and condemned and in such case shall be disposed of as
    28  follows:
    29     (a)  Upon conviction of any person of a violation of any of
    30  the provisions of this act, the court shall order the sheriff to
    19870H1000B1735                 - 219 -

     1  destroy all condemned liquor, alcohol or malt or brewed beverage
     2  and property seized or obtained from such defendants, except
     3  that the court may order the liquor, alcohol or malt or brewed
     4  beverages, or any part thereof, to be delivered to a hospital
     5  for its use, and make return to the court of compliance with
     6  said order, and any vehicle, container, boat, vessel, animals or
     7  aircraft seized under the provisions of this act shall be
     8  disposed of as hereinafter provided.
     9     (b)  In any case in which the defendant is acquitted of a
    10  violation of this act and denies the ownership or possession
    11  thereof, or no claimant appears for same, or appearing, is
    12  unable to sustain claim thereof, the court shall order all
    13  condemned liquor, alcohol and malt or brewed beverages and
    14  property (except vehicles, boats, vessels, containers, animals
    15  and aircraft) publicly destroyed by the sheriff, except that the
    16  court may order the liquor, alcohol or malt or brewed beverages,
    17  or any part thereof, to be delivered to a hospital for its use.
    18  Return of compliance with said order shall be made by the
    19  sheriff to the court.
    20     (c)  In the case of any vehicle, boat, vessel, container,
    21  animal or aircraft seized under the provisions of this act and
    22  condemned, the court shall order the same to be delivered to the
    23  [board] enforcement bureau for its use or for sale or
    24  disposition by the [board] bureau, in its discretion. Notice of
    25  such sale shall be given in such manner as the [board] bureau
    26  may prescribe. The proceeds of such sale shall be paid into The
    27  State Stores Fund.
    28     Section 108.  Section 604 of the act is reenacted and amended
    29  to read:
    30     Section 604.  Motor Vehicle Licenses To Be Revoked.--In
    19870H1000B1735                 - 220 -

     1  addition to the foregoing provisions, the court may, in its
     2  order of condemnation, and in every conviction under this act
     3  where it shall appear that liquor, alcohol or malt or brewed
     4  beverages were unlawfully transported in a motor vehicle,
     5  declare that the license issued by the Department of [Revenue]
     6  Transportation for any motor vehicle so forfeited and condemned,
     7  or issued to any defendant convicted of transporting liquor,
     8  alcohol or malt or brewed beverages in any motor vehicle, shall
     9  be forfeited and revoked, and it shall be the duty of the clerk
    10  of the court in which such conviction is had and order of
    11  condemnation made to certify such conviction to the Secretary of
    12  [Revenue] Transportation, who shall suspend or revoke the
    13  license issued for such motor vehicles: Provided, That a license
    14  may be issued for such motor vehicle to the [board] commission    <--
    15  or the enforcement bureau to any purchaser of the vehicle after
    16  the sale thereof, as above provided.
    17     Section 109.  Section 605 of the act is reenacted to read:
    18     Section 605.  Application of Subdivision.--The provisions of
    19  this subdivision shall apply to the disposition of any liquor,
    20  alcohol or malt or brewed beverage or property in the custody of
    21  the law or of any officer at the time of the passage of this
    22  act.
    23     Section 110.  The heading of Subdivision (B) of Article VI of
    24  the act is reenacted to read:
    25                          (B)  Nuisances.
    26     Section 111.  Section 611 of the act is reenacted and amended
    27  to read:
    28     Section 611.  Nuisances; Actions To Enjoin.--(a)  Any room,
    29  house, building, boat, vehicle, structure or place, except a
    30  private home, where liquor, alcohol or malt or brewed beverages
    19870H1000B1735                 - 221 -

     1  are manufactured, possessed, sold, transported, offered for
     2  sale, bartered or furnished, or stored in bond, or stored for
     3  hire, in violation of this act, and all such liquids, beverages
     4  and property kept or used in maintaining the same, are hereby
     5  declared to be common nuisances, and any person who maintains
     6  such a common nuisance shall be guilty of a misdemeanor and,
     7  upon conviction thereof, shall be subject to the same penalties
     8  provided in section four hundred ninety four of this act.
     9     (b)  An action to enjoin any nuisance defined in this act may
    10  be brought in the name of the Commonwealth of Pennsylvania by
    11  the Attorney General [or], by the district attorney of the
    12  proper county or by a person who resides or has a place of
    13  business within five hundred feet of the location of the alleged
    14  nuisance. Such action shall be brought and tried as an action in
    15  equity and may be brought in any court having jurisdiction to
    16  hear and determine equity cases within the county in which the
    17  offense occurs. If it is made to appear, by affidavit or
    18  otherwise, to the satisfaction of the court that such nuisance
    19  exists, a temporary writ of injunction shall forthwith issue,
    20  restraining the defendant from conducting or permitting the
    21  continuance of such nuisance until the conclusion of the
    22  proceedings. If a temporary injunction is prayed for, the court
    23  may issue an order restraining the defendant and all other
    24  persons from removing or in any way interfering with the
    25  liquids, beverages or other things used in connection with the
    26  violation of this act constituting such nuisance. No bond shall
    27  be required in instituting such proceedings brought in the name
    28  of the Commonwealth by the Attorney General or the district
    29  attorney. Where such proceedings are brought by a person, the
    30  court, upon application of the defendant and prior to any
    19870H1000B1735                 - 222 -

     1  injunction being issued, may direct the plaintiff to post bond
     2  in such amount as the court may find to be reasonable and
     3  sufficient. It shall not be necessary for the court to find the
     4  property involved was being unlawfully used, as aforesaid, at
     5  the time of the hearing, but on finding that the material
     6  allegations of the petition are true, the court shall order that
     7  no liquor, alcohol or malt or brewed beverage shall be
     8  manufactured, sold, offered for sale, transported, bartered or
     9  furnished, or stored in bond, or stored for hire in such room,
    10  house, building, structure, boat, vehicle, or place, or any part
    11  thereof.
    12     (c)  Upon the decree of the court ordering such nuisance to
    13  be abated, the court may, upon proper cause shown, order that
    14  the room, house, building, structure, boat, vehicle or place
    15  shall not be occupied or used for one year thereafter, but the
    16  court may, in its discretion, permit it to be occupied or used
    17  if the owner, lessee, tenant or occupant thereof shall give bond
    18  with sufficient surety to be approved by the court making the
    19  order in the penal and liquidated sum of not less than five
    20  hundred dollars ($500.00), payable to the Commonwealth of
    21  Pennsylvania, for use of the county in which said proceedings
    22  are instituted, and conditioned that neither liquor, alcohol,
    23  nor malt or brewed beverages will thereafter be manufactured,
    24  sold, transported, offered for sale, bartered or furnished, or
    25  stored in bond, or stored for hire therein or thereon in
    26  violation of this act, and that he will pay all fines, costs and
    27  damages that may be assessed for any violation of this act upon
    28  said property.
    29     Section 112.  The headings of Article VII and Subdivision (A)
    30  of Article VII of the act are reenacted to read:
    19870H1000B1735                 - 223 -

     1                            ARTICLE VII.
     2               DEALING IN DISTILLERY BONDED WAREHOUSE
     3                           CERTIFICATES.
     4                    (A)  Preliminary Provisions.
     5     Section 113.  Section 701 of the act is reenacted and amended  <--
     6  to read:
     7     Section 701.  Definitions and Interpretation.--(a)  When used
     8  in this article, the following words or phrases, unless the
     9  context clearly indicates otherwise, shall have the meanings
    10  ascribed to them in this section.
    11     "Agent" shall mean and include every person employed by a
    12  distillery certificate broker to sell, offer for sale or
    13  delivery, to purchase, exchange, or to enter into agreements for
    14  the purchase, sale or exchange, or to solicit subscriptions to,
    15  or orders for, or to undertake to dispose of, or to deal in any
    16  manner in, distillery bonded warehouse certificates.
    17     "Fraud," "fraudulent" and "fraudulent practice" shall include
    18  any misrepresentation in any manner of a relevant fact not made
    19  honestly and in good faith; any promise or representation or
    20  prediction as to the future not made honestly and in good faith,
    21  or an intentional failure to disclose a material fact; the
    22  gaining, directly or indirectly, through the purchase, sale or
    23  exchange of distillery bonded warehouse certificates, of any
    24  promotion fee or profit, selling or managing commission or
    25  profit, so gross and exorbitant as to be unconscionable and
    26  fraudulent; and any scheme, device, artifice or investment plan
    27  to obtain such an unconscionable profit: Provided, however, that
    28  nothing herein shall limit or diminish the full meaning of the
    29  terms "fraud" and "fraudulent" as applied or accepted in courts
    30  of law or equity.
    19870H1000B1735                 - 224 -

     1     (b)  Nothing contained in this article shall be construed as
     2  permitting the holder or owner of a distillery bonded warehouse
     3  certificate, as defined in this act, to secure possession of the
     4  whiskey or other potable distilled spirits named or designated
     5  in such certificate, except in accordance with the provisions of
     6  this act and the laws of this Commonwealth hereafter enacted
     7  relating to alcohol or alcoholic beverages and the regulations
     8  of the [board] commission adopted and promulgated thereunder.     <--
     9     Section 114.  The heading of Subdivision (B) of Article VII
    10  of the act is reenacted to read:
    11                           (B)  Permits.
    12     Section 115.  Section 702 of the act is reenacted to read:
    13     Section 702.  Unlawful to Act as a Distillery Certificate
    14  Broker or to Buy or Sell Distillery Bonded Warehouse Certificate
    15  Without a Permit.--It shall be unlawful for any person, except
    16  as hereinafter exempted, directly or through an agent, to sell,
    17  purchase, exchange, offer for sale, deliver, enter into
    18  agreements for the purchase, sale, exchange, solicit
    19  subscriptions to, orders for, undertake to dispose of, deal in
    20  any manner in, distillery bonded warehouse certificates, without
    21  first having obtained a permit to act as a distillery
    22  certificate broker as provided in this article.
    23     Section 116.  Section 703 of the act is reenacted and amended  <--
    24  to read:
    25     Section 703.  Authority to Issue Permits to Distillery
    26  Certificate Brokers.--Subject to the provisions of this article
    27  and regulations promulgated under this act, the [board]           <--
    28  commission shall have authority to issue to any reputable
    29  financially responsible person whose plan of business in dealing
    30  in distillery bonded warehouse certificates is not deemed by the
    19870H1000B1735                 - 225 -

     1  [board] commission to constitute "fraudulent practice," as        <--
     2  defined herein, a permit to act as distillery certificate
     3  broker.
     4     Section 117.  Section 704 of the act, amended September 28,
     5  1961 (P.L.1728, No.702), is reenacted and amended to read:        <--
     6     Section 704.  Application for Permit; Filing Fee.--Every
     7  applicant for a distillery certificate broker permit shall file
     8  a written application with the [board] commission outlining his   <--
     9  plan of business in dealing in distillery bonded warehouse
    10  certificates, in such form and containing such other information
    11  as the [board] commission shall from time to time prescribe,      <--
    12  which shall be accompanied by a filing fee of twenty dollars
    13  ($20) and the prescribed permit fee. If the applicant is a
    14  natural person, his application must show that he is a citizen
    15  of the United States, and if a corporation, the application must
    16  show that the corporation was created under the laws of
    17  Pennsylvania or holds a certificate of authority to transact
    18  business in Pennsylvania. The application shall be signed and
    19  verified by oath or affirmation of the applicant, if a natural
    20  person, or in the case of an association, by a member or partner
    21  thereof, or in the case of a corporation, by an executive
    22  officer thereof or any person specifically authorized by the
    23  corporation to sign the application, to which shall be attached
    24  written evidence of his authority. If the applicant is an
    25  association, the application shall set forth the names and
    26  addresses of the persons constituting the association, and if a
    27  corporation, the names and addresses of all the officers
    28  thereof. All applications must be verified by affidavit of
    29  applicant and if any false statement is intentionally made in
    30  any part of the application, the signer shall be guilty of a
    19870H1000B1735                 - 226 -

     1  misdemeanor and upon indictment and conviction, shall be subject
     2  to penalties provided by this article.
     3     Section 118.  Section 705 of the act is reenacted and amended  <--
     4  to read:
     5     Section 705.  Issuance of Permits.--Upon receipt of the
     6  application and proper fees and upon being satisfied of the
     7  truth of the statements in the application, and being also
     8  satisfied that the applicant's plan of business in dealing in
     9  distillery bonded warehouse certificates does not constitute
    10  "fraudulent practice," as defined in this article, and that the
    11  applicant is a person of good repute and financially
    12  responsible, the [board] commission may issue to such applicant   <--
    13  a permit authorizing the permittee to sell, purchase, exchange,
    14  pledge and deal in distillery bonded warehouse certificates.
    15     Section 119.  Section 706 of the act is reenacted to read:
    16     Section 706.  Office or Place of Business to be Maintained.--
    17  Every applicant for a distillery certificate broker permit under
    18  this article and every person to whom such a permit is issued
    19  shall maintain an office or place of business within the
    20  Commonwealth.
    21     Section 120.  Sections 707, 708 and 709 of the act are
    22  reenacted and amended to read:                                    <--
    23     Section 707.  Permit Fee; Permits Not Assignable or
    24  Transferable; Display of Permit; Term of Permit.--Every
    25  applicant for distillery certificate broker permit shall, before
    26  receiving such permit, pay to the [board] commission an annual    <--
    27  permit fee of one hundred dollars ($100). Permits issued under
    28  this act may not be assigned or transferred and shall be
    29  conspicuously displayed at the place of business of the
    30  permittee. All permits shall be valid only during the year for
    19870H1000B1735                 - 227 -

     1  which issued and shall automatically expire on the thirty-first
     2  day of December of each calendar year unless suspended, revoked
     3  or cancelled prior thereto.
     4     Section 708.  Records to be Kept.--Every person holding a
     5  permit issued under this act shall keep daily permanent records
     6  containing a complete record of all transactions in distillery
     7  bonded warehouse certificates within this Commonwealth, in such
     8  form and manner as the [board] commission may from time to time   <--
     9  prescribe. Such records shall be available for examination by
    10  the [board's] commission's officers at the broker's principal     <--
    11  place of business or office in Pennsylvania.
    12     Section 709.  Renewal of Permits.--Upon the filing of an
    13  application and the payment of the prescribed filing fee and
    14  permit fee in the same amount as herein required on original
    15  applications for permits, the [board] commission may renew the    <--
    16  permit for the calendar year beginning January first, provided
    17  such application for renewal is filed and fee paid on or before
    18  December fifteenth of the preceding year, unless the [board]      <--
    19  commission shall have given previous notice of objections to the
    20  renewal of the permit, based upon violation of this article or
    21  the [board's] commission's regulations promulgated thereunder,    <--
    22  or unless the applicant has by his own act become a person of
    23  ill repute or ceases to be financially responsible.
    24     Section 121.  Section 710 of the act, amended June 3, 1971
    25  (P.L.118, No.6) and April 28, 1978 (P.L.202, No.53), is
    26  reenacted and amended to read:                                    <--
    27     Section 710.  Permit Hearings; Appeals From Refusal of the
    28  [Board] Commission to Issue or Renew Permits.--The [board]        <--
    29  commission may of its own motion, and shall upon written request
    30  of any applicant for distillery certificate broker permit or for
    19870H1000B1735                 - 228 -

     1  renewal thereof whose application for such permit or renewal has
     2  been refused, fix a time and place for hearings of such
     3  application for permit or for renewal thereof, notice of which
     4  hearing shall be sent by registered mail to the applicant at the
     5  address given in his application. Such hearing shall be before
     6  the [board] commission or a member thereof. At such hearing, the  <--
     7  [board] commission shall present its reasons for its refusal or   <--
     8  withholding a permit or renewal thereof. The applicant may
     9  appear in person or by counsel, cross-examine the witnesses of
    10  the [board] commission, and may present evidence which shall be   <--
    11  subject to cross-examination by the [board] commission. Such      <--
    12  hearings shall be stenographically recorded. The [board]          <--
    13  commission shall thereupon grant or refuse the permit or renewal
    14  thereof. If the [board] commission shall refuse such permit or    <--
    15  renewal following such hearing, notice in writing of such
    16  refusal shall be sent by registered mail to the applicant at the
    17  address given in his application. In all such cases, the [board]  <--
    18  commission shall file of record at least a brief statement in
    19  the form of an opinion of the reasons for the ruling or order
    20  and furnish a copy thereof to the applicant.
    21     Section 122.  Section 712 of the act, amended April 28, 1978
    22  (P.L.202, No.53), is reenacted and amended to read:               <--
    23     Section 712.  Revocation and Suspension of Permit.--Upon
    24  learning of any violation of this act or regulations of the
    25  [board] commission promulgated thereunder, or any violation of    <--
    26  any laws of this Commonwealth or of the United States of America
    27  by the permittee, his officers, servants, agents or employes, or
    28  upon any other sufficient cause shown, the [board] commission     <--
    29  may cite such permittee to appear before it or a member thereof
    30  not less than ten or more than fifteen days from the date of
    19870H1000B1735                 - 229 -

     1  sending such permittee, by registered mail, a notice addressed
     2  to him at the address set forth in the application for permit,
     3  to show cause why such permit should not be suspended or
     4  revoked. When such notice is duly addressed and deposited in the
     5  post office, it shall be deemed due and sufficient notice.
     6  Hearings on such citations shall be held in the same manner as
     7  provided herein for hearing on application for permit. Upon such
     8  hearing, if satisfied that any such violation has occurred, or
     9  for other sufficient cause, the [board] commission shall          <--
    10  immediately suspend or revoke the permit, notifying the
    11  permittee thereof by registered letter addressed to the address
    12  set forth in the application for permit. Any permittee whose
    13  permit is revoked shall be ineligible to have a permit under
    14  this act until the expiration of three years from the date such
    15  permit was revoked. In all such cases, the [board] commission     <--
    16  shall file of record at least a brief statement in the form of
    17  an opinion of the reasons for the ruling or order.
    18     Section 123.  The heading of Subdivision (C) of Article VII
    19  of the act is reenacted to read:
    20                (C)  Permittees' Registered Agents.
    21     Section 124.  Section 721 of the act is reenacted to read:
    22     Section 721.  Unlawful to Act as Agent or to Employ Agents
    23  Without Registration.--It shall be unlawful for a distillery
    24  certificate broker to employ any person to act as agent, or for
    25  any person to act as agent for any distillery certificate
    26  broker, in purchasing, exchanging, offering for sale,
    27  delivering, entering into agreements for the purchase, sale,
    28  exchange, soliciting subscriptions to, orders for, undertaking
    29  to dispose of, dealing in any manner in, distillery bonded
    30  warehouse certificates, without such person first having been
    19870H1000B1735                 - 230 -

     1  registered as an agent as provided in this article.
     2     Section 125.  Section 722 of the act is reenacted and amended  <--
     3  to read:
     4     Section 722.  Registered Agents.--Every person holding a
     5  distillery certificate broker permit under this article who
     6  desires to employ an agent or agents in the operation of his
     7  business under the permit shall make application to the [board]   <--
     8  commission for registration of such agent or agents. Every such
     9  permittee's application shall set forth the name of the
    10  permittee and the address of his main office or principal place
    11  of business in Pennsylvania, and the full address where complete
    12  records are maintained covering the permittee's operations in
    13  Pennsylvania. With each such permittee's application there shall
    14  be filed an agent's application for each agent to be registered.
    15  Permittees' applications for agents and agents' applications
    16  shall contain such information as the [board] commission shall    <--
    17  from time to time require, and shall be signed and verified by
    18  oath or affirmation of the agent. Each application shall be
    19  accompanied by two unmounted photographs of the agent.
    20     Section 126.  Section 723 of the act is reenacted to read:
    21     Section 723.  Registration Fee.--Every application for the
    22  registration of agents filed by a permittee shall be accompanied
    23  by a registration fee in the amount of ten dollars ($10) for
    24  each agent to be registered, which shall cover the agent's
    25  registration from date of approval until December thirty-first
    26  of the year in which approved. Registrations may be renewed for
    27  a period of one calendar year upon the filing of a new
    28  application and payment of the same registration fee as herein
    29  provided for original registration, together with agent's new
    30  application and photographs of each agent. Applications for
    19870H1000B1735                 - 231 -

     1  renewal of registration shall be filed not later than December
     2  fifteenth of each year.
     3     Section 127.  Section 724 of the act is reenacted and amended  <--
     4  to read:
     5     Section 724.  Registration and Issuance of Identification
     6  Card.--Upon receipt of the application, the proper fees, and
     7  upon being satisfied of the truth of the statements in the
     8  application and that the applicant is a person of good
     9  reputation and the applicant seeks a registration as defined in
    10  this act, the [board] commission may register such agent and      <--
    11  issue to him an identification card.
    12     Section 128.  Sections 725 and 726 of the act, amended April
    13  28, 1978 (P.L.202, No.53), are reenacted and amended to read:     <--
    14     Section 725.  Hearings Upon Refusal of the [Board]             <--
    15  Commission; Appeals.--In the event that the [board] commission    <--
    16  shall refuse to issue or to renew an agent's registration, a
    17  hearing shall be had.
    18     Section 726.  Revocation and Suspension of Agents'
    19  Registrations.--Upon learning of any violation of this act or
    20  regulation of the [board] commission promulgated thereunder, or   <--
    21  any violation of any laws of this Commonwealth or of the United
    22  States of America by a registered agent, the [board] commission   <--
    23  may revoke or suspend the agent's registration in the same
    24  manner as provided herein for the revocation and suspension of
    25  distillery certificate broker permits.
    26     Section 129.  Section 727 of the act is reenacted and amended
    27  to read:
    28     Section 727.  Identification Cards.--(a)  Upon approval by
    29  the [board] commission of the application for registration of an  <--
    30  agent, there shall be issued to such registered agent an
    19870H1000B1735                 - 232 -

     1  identification card containing the name and address of the
     2  distillery certificate broker, the name, address and physical
     3  description of the agent. There shall also be affixed to the
     4  identification card a photograph of the agent, and no
     5  identification card shall be valid until signed by both the
     6  distillery certificate broker and the agent and counter-signed
     7  by a representative of the [board] commission.                    <--
     8     (b)  Before any agent's registration can be changed from one
     9  distillery certificate broker to another, the identification
    10  card of such agent shall either be returned to the [board]        <--
    11  commission by the broker under whom he is registered, or such
    12  broker shall file with the [board] commission a notice in         <--
    13  writing that he has knowledge of and consents to the employment
    14  of such agent by the other broker.
    15     (c)  When the employment of any agent is terminated, the
    16  broker shall immediately notify the [board] commission and the    <--
    17  identification card issued to the agent shall be surrendered to
    18  the [board] commission.                                           <--
    19     Section 130.  The heading of Subdivision (D) of Article VII
    20  of the act is reenacted to read:
    21                          (D)  Exemptions.
    22     Section 131.  Sections 731, 732 and 733 of the act are
    23  reenacted to read:
    24     Section 731.  Bank and Trust Companies and Other Persons.--
    25  Bank and trust companies and other persons duly authorized
    26  within this Commonwealth to engage in the business of lending
    27  money to licensed distillers, rectifiers, importers and
    28  distillery certificate brokers may, without a permit required
    29  under the provisions of this act, accept distillery bonded
    30  warehouse certificates as security or collateral for any loan
    19870H1000B1735                 - 233 -

     1  made in the regular conduct of their business, and such banks
     2  and trust companies and other persons may liquidate such
     3  security or collateral by sale only to licensed distillers,
     4  rectifiers, importers or distillery certificate brokers.
     5     Section 732.  Distillers, Rectifiers and Importers.--Duly
     6  licensed distillers, rectifiers and importers may, without a
     7  permit required under the provisions of this article, deal in
     8  distillery bonded warehouse certificates, but only with other
     9  duly licensed distillers, rectifiers, importers and with
    10  distillery certificate brokers.
    11     Section 733.  Certificates Owned Since July 24, 1939.--
    12  Persons other than licensed distillers, rectifiers, importers
    13  and distillery certificate brokers, holding distillery bonded
    14  warehouse certificates on and since the twenty-fourth day of
    15  July, one thousand nine hundred thirty-nine, may dispose of same
    16  without a permit required under the provisions of this act, but
    17  only to or through a distillery certificate broker holding a
    18  permit from the board.
    19     Section 132.  The heading of Subdivision (E) of Article VII
    20  of the act is reenacted to read:
    21                (E)  Administration and Enforcement.
    22     Section 133.  Section 741 of the act is reenacted and amended  <--
    23  to read:
    24     Section 741.  Duties of the [Board] Commission.--It shall be   <--
    25  the duty of the [board] commission to see that the provisions of  <--
    26  this article are at all times properly administered and obeyed,
    27  and to take such measures and make such investigations as will
    28  detect the violations of any provisions thereof. In the event it
    29  shall discover any violation, it shall, in addition to revoking
    30  any permit or registration of an agent, take such measures as
    19870H1000B1735                 - 234 -

     1  may be necessary to cause the apprehension and prosecution of
     2  all persons deemed guilty thereof.
     3     Section 134.  The heading of Subdivision (F) of Article VII
     4  of the act is reenacted to read:
     5                     (F)  Fines and Penalties.
     6     Section 135.  Section 751 of the act is reenacted to read:
     7     Section 751.  Penalties.--Any person who shall violate any of
     8  the provisions of this article, or who shall engage in any fraud
     9  or fraudulent practice, as defined herein, shall be guilty of a
    10  misdemeanor and, upon conviction thereof, shall be sentenced to
    11  pay the costs of prosecution and a fine of not less than one
    12  thousand dollars ($1000), nor more than five thousand dollars
    13  ($5000), or undergo imprisonment of not less than one year, nor
    14  more than five years, or both, at the discretion of the court.
    15     Section 136.  The heading of Article VIII of the act is
    16  reenacted to read:
    17                           ARTICLE VIII.
    18               DISPOSITION OF MONEYS COLLECTED UNDER
    19                         PROVISIONS OF ACT.
    20     Section 137.  Section 801 of the act is reenacted and amended  <--
    21  to read:
    22     Section 801.  Moneys Paid Into Liquor License Fund and
    23  Returned to Municipalities.--(a)  The following fees collected
    24  by the [board] commission under the provisions of this act shall  <--
    25  be paid into the State Treasury through the Department of
    26  Revenue into a special fund to be known as the "Liquor License
    27  Fund":
    28     (1)  License fees for hotel, restaurant and club liquor
    29  licenses.
    30     (2)  License fees for retail dispensers' (malt and brewed
    19870H1000B1735                 - 235 -

     1  beverages) licenses.
     2     (b)  The moneys in the Liquor License Fund shall, on the
     3  first days of February and August of each year, be paid by the
     4  [board] commission to the respective municipalities in which the  <--
     5  respective licensed places are situated, in such amounts as
     6  represent the aggregate license fees collected from licenses in
     7  such municipalities during the preceding period. These moneys     <--
     8  shall be used exclusively for the enforcement of the liquor laws
     9  of this Commonwealth.
    10     (c)  The [board] commission shall have the power to            <--
    11  appropriate moneys in the Liquor License Fund for the payment of
    12  claims for refunds allowed and approved by the [board]            <--
    13  commission for moneys paid into the Liquor License Fund because
    14  of the over-payment or overcharge on license fees. In the event
    15  that the moneys in the Liquor License Fund have been distributed
    16  to the respective municipalities, the [board] commission shall    <--
    17  have the authority to deduct from the next semi-annual payment
    18  to the respective municipalities the amount of any over-payment
    19  previously refunded by the [board] commission to any person on    <--
    20  account of an overcharge or over-payment on a license fee.
    21     Section 138.  Section 802 of the act, amended September 28,
    22  1961 (P.L.1728, No.702), is reenacted and amended to read:
    23     Section 802.  Moneys Paid Into The State Stores Fund for Use
    24  of the Commonwealth.--(a)  All moneys, except fees to be paid
    25  into the Liquor License Fund as provided by [the [preceding]      <--
    26  section 801, collected, received or recovered under the
    27  provisions of this act for license fees, permit fees, filing
    28  fees and registration fees, from forfeitures, sales of forfeited
    29  property, compromise penalties and sales of liquor and alcohol
    30  at the Pennsylvania Liquor Stores, shall be paid into the State
    19870H1000B1735                 - 236 -

     1  Treasury through the Department of Revenue into a special fund
     2  to be known as "The State Stores Fund."
     3     (b)  One-half of all application filing and transfer fees
     4  shall be credited to a special account designated as the
     5  Enforcement Officers' Retirement Account. The moneys credited to
     6  this account shall be paid, annually, by the [board] commission   <--
     7  to the State Employes' Retirement Board to be paid into the
     8  State Employes' Retirement Fund and credited to the Enforcement
     9  Officers' Benefit Account.
    10     (c)  One TWO per centum of annual profits from the sale of     <--
    11  liquor and alcohol shall be annually transferred to the
    12  Department of Health for use by the Office of Drug and Alcohol
    13  Programs, or its successor in function, for the following
    14  purposes:
    15     (1)  Treatment and rehabilitation of persons addicted to the
    16  excessive use of alcoholic beverages.
    17     (2)  Promotion of education, prevention and early
    18  intervention programs designed to eliminate abuse and addiction
    19  to alcohol or other mood-altering substances or secure
    20  appropriate treatment for the already addicted.
    21     (3)  Study of the problem of addiction.
    22     (d)  All other moneys in such fund shall be available for the
    23  purposes for which they are appropriated by law.
    24     (e)  Annually, at the time the budget for the enforcement      <--
    25  bureau is approved, an amount equal to the amount appropriated
    26  from the General Fund for the enforcement bureau shall be
    27  transferred from the State Store Fund to the General Fund.
    28     (E)  ANNUALLY, THE GENERAL ASSEMBLY SHALL MAKE AN              <--
    29  APPROPRIATION FROM THE STATE STORE FUND TO PROVIDE FOR THE
    30  OPERATIONAL EXPENSES OF THE ENFORCEMENT BUREAU.
    19870H1000B1735                 - 237 -

     1     Section 139.  Section 803 of the act is reenacted and amended  <--
     2  to read:
     3     Section 803.  Alcohol Tax Moneys Paid Into General Fund.--All
     4  taxes collected or received by the [board] commission on sales    <--
     5  of taxable alcohol under the provisions of this act shall be
     6  paid into the State Treasury through the Department of Revenue
     7  into the General Fund.
     8     Section 140.  The heading of Article IX of the act is          <--
     9  reenacted to read:
    10                            ARTICLE IX.
    11                              REPEALS.
    12     Section 141.  Section 901 of the act is reenacted to read:
    13