SENATE AMENDED
        PRIOR PRINTER'S NOS. 1102, 1366, 1735         PRINTER'S NO. 1864

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

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 17, 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 BOARD    <--
    20     and its members and employees; establishing administrative
    21     officers and units for the administration and enforcement of
    22     the act; providing for the powers and duties of the Auditor
    23     General, State Treasurer, Attorney General and Pennsylvania
    24     State Police; regulating advertising; REGULATING ADVERTISING;  <--
    25     further providing for licenses, FOR BRAND REGISTRATION, for    <--
    26     penalties, for funding and for disposition of moneys; and
    27     transferring personnel, property and 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.                <--
    19870H1000B1864                  - 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.
    19870H1000B1864                  - 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
    19870H1000B1864                  - 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 444.1.BRAND REGISTRATION.                              <--
    19     Section 445.  Limited Breweries.
    20         (C)  General Provisions Applying to Both Liquor and Malt
    21                 and Brewed Beverages.
    22     Section 461.  Limiting Number of Retail Licenses To Be Issued
    23                     In Each Municipality.
    24     Section 461.1.Incorporated Units of National Veterans'
    25                     Organizations.
    26     Section 462.  Licensed Places May Be Closed During Period of
    27                     Emergency.
    28     Section 463.  Places of Amusement Not To Be Licensed;
    29                     Penalty.
    30     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
    19870H1000B1864                  - 5 -

     1                     Transfers; Appeals.
     2     Section 465.  All Licensees to Furnish Bond.
     3     Section 466.  Disposition of Cash and Securities Upon
     4                     Forfeiture of Bond.
     5     Section 467.  Display of License.
     6     Section 468.  Licenses Not Assignable; Transfers.
     7     Section 469.  Applications for Transfers; Fees.
     8     Section 470.  Renewal of Licenses; Temporary Provisions for
     9                     Licensees in Armed Service.
    10     Section 470.1.Renewal of Hotel Liquor Licenses; Special
    11                     Provisions (Repealed).
    12     Section 470.2.Exchange of Hotel Liquor License; Special
    13                     Provisions (Repealed).
    14     Section 471.  Revocation and Suspension of Licenses; Fines.
    15     Section 472.  Local Option.
    16     Section 472.1.Clubs.
    17     Section 472.2.Granting of Liquor Licenses in Certain
    18                     Municipalities.
    19     Section 472.3.Exchange of Certain Licenses.
    20     Section 473.  Public Record.
    21     Section 474.  Surrender of Club Licenses for Benefit of
    22                     Licensees.
    23     Section 475.  Establishments Proximate to Interstate Highways
    24                     Not To Be Licensed.
    25     SECTION 477.  APPLICANTS TO PROVIDE STATE TAX                  <--
    26                     IDENTIFICATION NUMBERS AND STATEMENT OF STATE
    27                     TAX STATUS; WAIVER OF CONFIDENTIALITY OF
    28                     INFORMATION IN THE POSSESSION OF THE
    29                     DEPARTMENT OF REVENUE AND OTHER DEPARTMENTS;
    30                     REVIEW OF STATE TAX STATUS.
    19870H1000B1864                  - 6 -

     1         (D)  Unlawful Acts; Penalties.
     2     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
     3                     Liquor Licensees.
     4     Section 492.  Unlawful Acts Relative to Malt or Brewed
     5                     Beverages and Licensees.
     6     Section 493.  Unlawful Acts Relative to Liquor, Malt and
     7                     Brewed Beverages and Licensees.
     8     Section 494.  Penalties.
     9     Section 495.  Identification Cards; Licensees and State
    10                     Liquor Store Employes Saved From Prosecution.
    11     Section 496.  Reporting of Worthless Checks.
    12     Section 497.  Liability of Licensees.
    13     Section 498.  Unlawful Advertising.                            <--
    14     SECTION 498.  UNLAWFUL ADVERTISING.                            <--
    15  ARTICLE V.  DISTILLERIES, WINERIES, BONDED WAREHOUSES, BAILEES
    16                 FOR HIRE AND TRANSPORTERS FOR HIRE.
    17     Section 501.  License Required.
    18     Section 502.  Exemptions.
    19     Section 502.1.Production of Denatured Ethyl Alcohol.
    20     Section 503.  Qualifications for License.
    21     Section 504.  Applications; Filing Fees.
    22     Section 505.  Licenses Issued.
    23     Section 505.1.Bonded Warehouse License Privilege
    24                     Restrictions.
    25     Section 505.2.Limited Wineries.
    26     Section 505.3.Distilleries.
    27     Section 506.  Bonds Required.
    28     Section 507.  Hearings on Licenses and Refusals.
    29     Section 508.  License Fees.
    30     Section 509.  License Must Be Posted; Business Hours.
    19870H1000B1864                  - 7 -

     1     Section 510.  Containers To Be Labeled.
     2     Section 511.  License To Specify Each Place Authorized For
     3                     Use.
     4     Section 512.  Records To Be Kept.
     5     Section 513.  Premises and Records Subject To Inspection.
     6     Section 514.  Suspension and Revocation of Licenses.
     7     Section 515.  Appeals.
     8     Section 516.  Compromise Penalty In Lieu of Suspension.
     9     Section 517.  Expiration of Licenses; Renewals.
    10     Section 518.  Unlawful Acts.
    11     Section 519.  Penalties.
    12  ARTICLE VI.  PROPERTY ILLEGALLY POSSESSED OR USED; FORFEITURES;
    13                 NUISANCES.
    14         (A)  Forfeitures.
    15     Section 601.  Forfeiture of Property Illegally Possessed or
    16                     Used.
    17     Section 602.  Forfeiture Proceedings.
    18     Section 603.  Disposition of Forfeited Property.
    19     Section 604.  Motor Vehicle Licenses To Be Revoked.
    20     Section 605.  Application of Subdivision.
    21         (B)  Nuisances.
    22     Section 611.  Nuisances; Actions To Enjoin.
    23  ARTICLE VII.  DEALING IN DISTILLERY BONDED WAREHOUSE
    24                  CERTIFICATES.
    25         (A)  Preliminary Provisions.
    26     Section 701.  Definitions and Interpretation.
    27         (B)  Permits.
    28     Section 702.  Unlawful to Act as a Distillery Certificate
    29                     Broker or to Buy or Sell Distillery Bonded
    30                     Warehouse Certificate Without a Permit.
    19870H1000B1864                  - 8 -

     1     Section 703.  Authority to Issue Permits to Distillery
     2                     Certificate Brokers.
     3     Section 704.  Application for Permit; Filing Fee.
     4     Section 705.  Issuance of Permits.
     5     Section 706.  Office or Place of Business to be Maintained.
     6     Section 707.  Permit Fee; Permits Not Assignable or
     7                     Transferable; Display of Permit; Term of
     8                     Permit.
     9     Section 708.  Records to be Kept.
    10     Section 709.  Renewal of Permits.
    11     Section 710.  Permit Hearings; Appeals From Refusal of the
    12                     Commission BOARD to Issue or Renew Permits.    <--
    13     Section 712.  Revocation and Suspension of Permit.
    14         (C)  Permittees' Registered Agents.
    15     Section 721.  Unlawful to Act as Agent or to Employ Agents
    16                     Without Registration.
    17     Section 722.  Registered Agents.
    18     Section 723.  Registration Fee.
    19     Section 724.  Registration and Issuance of Identification
    20                     Card.
    21     Section 725.  Hearings Upon Refusal of the Commission          <--
    22                     BOARD; Appeals.                                <--
    23     Section 726.  Revocation and Suspension of Agents'
    24                     Registrations.
    25     Section 727.  Identification Cards.
    26         (D)  Exemptions.
    27     Section 731.  Bank and Trust Companies and Other Persons.
    28     Section 732.  Distillers, Rectifiers and Importers.
    29     Section 733.  Certificates Owned Since July 24, 1939.
    30         (E)  Administration and Enforcement.
    19870H1000B1864                  - 9 -

     1     Section 741.  Duties of the Commission BOARD.                  <--
     2         (F)  Fines and Penalties.
     3     Section 751.  Penalties.
     4  ARTICLE VIII.  DISPOSITION OF MONEYS COLLECTED UNDER PROVISIONS
     5                 OF ACT.
     6     Section 801.  Moneys Paid Into Liquor License Fund and
     7                     Returned to Municipalities.
     8     Section 802.  Moneys Paid Into The State Stores Fund for Use
     9                     of the Commonwealth.
    10     Section 803.  Alcohol Tax Moneys Paid Into General Fund.
    11  ARTICLE IX.  REPEALS (REPEALED).                                  <--
    12     Section 901.  Acts and Parts of Acts Repealed (REPEALED).      <--
    13     Section 902.  General Repeal Clause (REPEALED).                <--
    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  The title of the act of April 12, 1951 (P.L.90,
    17  No.21), known as the Liquor Code, is reenacted and amended to     <--
    18  read:
    19                               AN ACT
    20  Relating to alcoholic liquors, alcohol and malt and brewed
    21     beverages; amending, revising, consolidating and changing the
    22     laws relating thereto; regulating and restricting the
    23     manufacture, purchase, sale, possession, consumption,
    24     importation, transportation, furnishing, holding in bond,
    25     holding in storage, traffic in and use of alcoholic liquors,
    26     alcohol and malt and brewed beverages and the persons engaged
    27     or employed therein; defining the powers and duties of the
    28     [Pennsylvania Liquor Control Board] Alcoholic Beverages        <--
    29     Commission; providing for the establishment and operation of
    30     State liquor stores, for the payment of certain license fees
    19870H1000B1864                 - 10 -

     1     to the respective municipalities and townships, for the
     2     abatement of certain nuisances and, in certain cases, for
     3     search and seizure without warrant; prescribing penalties and
     4     forfeitures; providing for local option, and repealing
     5     existing laws.
     6     Section 2.  The heading of Article I of the act is reenacted
     7  to read:
     8                             ARTICLE I.
     9                      PRELIMINARY PROVISIONS.
    10     Section 3.  Section 101 of the act is reenacted to read:
    11     Section 101.  Short Title.--This act shall be known and may
    12  be cited as the "Liquor Code."
    13     Section 4.  Section 102 of the act, amended July 10,1957
    14  (P.L.638, No.346), August 17, 1965 (P.L.346, No.182), December
    15  2, 1970 (P.L.825, No.271), October 11, 1972 (P.L.906, No.215),
    16  December 12, 1980 (P.L.1195, No.221) and May 2, 1986 (P.L.141,
    17  No.44), is reenacted and amended to read:
    18     Section 102.  Definitions.--The following words or phrases,
    19  unless the context clearly indicates otherwise, shall have the
    20  meanings ascribed to them in this section:
    21     "Alcohol" shall mean ethyl alcohol of any degree of proof
    22  originally produced by the distillation of any fermented liquid,
    23  whether rectified or diluted with or without water, whatever may
    24  be the origin thereof, and shall include synthetic ethyl
    25  alcohol, but shall not mean or include ethyl alcohol, whether or
    26  not diluted, that has been denatured or otherwise rendered unfit
    27  for beverage purposes.
    28     "Association" shall mean a partnership, limited partnership
    29  or any form of unincorporated enterprise owned by two or more
    30  persons.
    19870H1000B1864                 - 11 -

     1     ["Board" shall mean the Pennsylvania Liquor Control Board.]    <--
     2     "Bonded warehouse" shall mean and include all places and
     3  warehouses legally established under the provisions of the acts
     4  of Congress and the administrative provisions of the internal
     5  revenue laws of the Government of the United States of America,
     6  for the storage, concentration, distribution and holding in
     7  bond, (a) of whiskey and any other potable distilled spirits,
     8  except ethyl alcohol, when used in Article VII entitled
     9  "Distillery Bonded Warehouse Certificates" and, (b) of alcohol
    10  or liquor when otherwise used.
    11     "Club" shall mean any reputable group of individuals
    12  associated together not for profit for legitimate purposes of
    13  mutual benefit, entertainment, fellowship or lawful convenience,
    14  having some primary interest and activity to which the sale of
    15  liquor or malt and brewed beverages shall be only secondary,
    16  which, if incorporated, has been in continuous existence and
    17  operation for at least one year, and if first licensed after
    18  June sixteenth, one thousand nine hundred thirty-seven, shall
    19  have been incorporated in this Commonwealth, and, if
    20  unincorporated, for at least ten years, immediately preceding
    21  the date of its application for a license under this act, and
    22  which regularly occupies, as owner or lessee, a clubhouse or
    23  quarters for the use of its members. Continuous existence must
    24  be proven by satisfactory evidence. The [board] commission shall  <--
    25  refuse to issue a license if it appears that the charter is not
    26  in possession of the original incorporators or their direct or
    27  legitimate successors. The club shall hold regular meetings,
    28  conduct its business through officers regularly elected, admit
    29  members by written application, investigation and ballot, and
    30  charge and collect dues from elected members, and maintain such
    19870H1000B1864                 - 12 -

     1  records as the [board] commission shall from time to time         <--
     2  prescribe, but any such club may waive or reduce in amount, or
     3  pay from its club funds, the dues of any person who was a member
     4  at the time he was inducted into the military service of the
     5  United States or was enrolled in the armed forces of the United
     6  States pursuant to any selective service act during the time of
     7  the member's actual service or enrollment. The term includes a
     8  privately-owned private golf course.
     9     "Commission" shall mean the Alcoholic Beverages Commission.    <--
    10     "Container" shall mean and include any receptacle, vessel or
    11  form of package, tank, vat, cask, barrel, drum, keg, can, bottle
    12  or conduit used or capable of use for holding, storing,
    13  transferring or shipment of alcohol, liquor or malt or brewed
    14  beverages.
    15     "Corporation" shall mean a corporation or joint-stock
    16  association organized under the laws of this Commonwealth, the
    17  United States, or any other state, territory, or foreign country
    18  or dependency.
    19     "Denatured alcohol" shall mean and include all alcohol or any
    20  compound thereof which by the admixture of such denaturing
    21  material or materials is rendered unfit for use as a beverage.
    22     "Denaturing plant" shall mean and include the premises of a
    23  distillery used exclusively for the denaturization of alcohol,
    24  either specially or completely, by the admixture of such
    25  denaturing materials as shall render the alcohol or any compound
    26  in which it is authorized to be used unfit for use as a
    27  beverage.
    28     "Distillery" shall mean and include any premises or plant
    29  wherein alcohol or liquor is manufactured, made and distilled
    30  from raw materials, blended or rectified, or any place wherein
    19870H1000B1864                 - 13 -

     1  alcohol or liquor is produced by any method suitable for the
     2  production of alcohol. The term shall not include a "winery"
     3  where alcohol is derived from by-products of wine production by
     4  distillation for the sole purpose of adding to the fermented
     5  products to fortify the same.
     6     "Distillery Bonded Warehouse Certificate" shall mean a
     7  certificate, receipt, contract or other document given upon the
     8  storage of whiskey or any other potable distilled spirits,
     9  except ethyl alcohol, in a bonded warehouse, and evidencing the
    10  ownership of such whiskey or other potable distilled spirits.
    11     "Distillery certificate broker" shall mean and include every
    12  person who engages directly or through an agent in selling,
    13  purchasing, exchanging, offering for sale or delivery, or
    14  entering into agreements for the purchase, sale or exchange, or
    15  soliciting subscriptions to or orders for, or undertaking to
    16  dispose of, or dealing in any manner in, distillery bonded
    17  warehouse certificates.
    18     "Distributor" shall mean any person licensed by the [board]    <--
    19  commission to engage in the purchase only from Pennsylvania
    20  manufacturers and from importing distributors and the resale of
    21  malt or brewed beverages, except to importing distributors and
    22  distributors, in the original sealed containers as prepared for
    23  the market by the manufacturer at the place of manufacture, but
    24  not for consumption on the premises where sold, and 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
    30  separately.
    19870H1000B1864                 - 14 -

     1     "Eating place" shall mean a premise where food is regularly
     2  and customarily prepared and sold, having a total area of not
     3  less than three hundred square feet available to the public in
     4  one or more rooms, other than living quarters, and equipped with
     5  tables and chairs accommodating thirty persons at one time.
     6     "Enforcement bureau" shall mean the Bureau of Liquor Control
     7  Enforcement of the Pennsylvania State Police.
     8     "Golf course" shall mean a course having a minimum of nine
     9  holes and a total length of at least twenty-five hundred yards.
    10  The term includes a privately-owned private golf course.
    11     "Hotel" shall mean any reputable place operated by
    12  responsible persons of good reputation where the public may, for
    13  a consideration, obtain sleeping accommodations and meals and
    14  which, in a city, has at least ten, and in any other place at
    15  least six, permanent bedrooms for the use of guests, a public
    16  dining room or rooms operated by the same management
    17  accommodating at least thirty persons at one time, and a
    18  kitchen, apart from the public dining room or rooms, in which
    19  food is regularly prepared for the public.
    20     "Importing distributor" shall mean any person licensed by the
    21  [board] commission to engage in the purchase from manufacturers   <--
    22  and other persons located outside this Commonwealth and from
    23  persons licensed as manufacturers of malt or brewed beverages
    24  and importing distributors under this act, and the resale of
    25  malt or brewed beverages in the original sealed containers as
    26  prepared for the market by the manufacturer at the place of
    27  manufacture, but not for consumption on the premises where sold,
    28  and in quantities of not less than a case of twenty-four
    29  containers, each container holding seven fluid ounces or more,
    30  or a case of twelve containers, each container holding twenty-
    19870H1000B1864                 - 15 -

     1  four fluid ounces or more, except original containers containing
     2  one hundred twenty-eight ounces or more which may be sold
     3  separately.
     4     "Limited Winery" shall mean a winery with a maximum output of
     5  [one hundred thousand (100,000)] TWO HUNDRED THOUSAND (200,000)   <--
     6  gallons per year.
     7     "Liquor" shall mean and include any alcoholic, spirituous,
     8  vinous, fermented or other alcoholic beverage, or combination of
     9  liquors and mixed liquor a part of which is spirituous, vinous,
    10  fermented or otherwise alcoholic, including all drinks or
    11  drinkable liquids, preparations or mixtures, and reused,
    12  recovered or redistilled denatured alcohol usable or taxable for
    13  beverage purposes which contain more than one-half of one per
    14  cent of alcohol by volume, except pure ethyl alcohol and malt or
    15  brewed beverages.
    16     "Malt or Brewed Beverages" means any beer, lager beer, ale,
    17  porter or similar fermented malt beverage containing one-half of
    18  one per centum or more of alcohol by volume, by whatever name
    19  such beverage may be called.
    20     "Manufacture", when the term is applied to malt or brewed
    21  beverages, shall mean and include all means, methods and
    22  processes used, employed and made use of, to produce, make and
    23  manufacture for commercial purposes, malt or brewed beverages
    24  from raw materials; when applied otherwise, it shall mean and
    25  include all means, methods and processes used, employed and made
    26  use of, to produce and make alcohol or liquor from raw
    27  materials, and shall mean and include rectification and blending
    28  of alcohol and liquor, the production, recovery or reuse of
    29  alcohol in the making, developing, using in the process of
    30  manufacture, denaturing, redistilling or recovering of any
    19870H1000B1864                 - 16 -

     1  alcohol or liquor in distilleries, denaturing plants and
     2  wineries.
     3     "Manufacturer" shall mean any person, association or
     4  corporation engaged in the producing, manufacturing, distilling,
     5  rectifying or compounding of liquor, alcohol or malt or brewed
     6  beverages in this Commonwealth or elsewhere.
     7     "Manufacturer of malt or brewed beverages" shall mean any
     8  person holding a license issued by the [board] commission to      <--
     9  engage in the manufacture, transportation and sale of malt or
    10  brewed beverages; also, any person engaged in the legal
    11  manufacture of malt or brewed beverages within the territorial
    12  limits of the United States, outside the Commonwealth of
    13  Pennsylvania.
    14     "Municipality" shall mean any city, borough, incorporated
    15  town, or township of this Commonwealth.
    16     "Original container" shall mean all bottles, casks, kegs or
    17  other suitable containers that have been securely capped, sealed
    18  or corked by the manufacturer  of malt or brewed beverages at
    19  the place of manufacture, with the name and address of the
    20  manufacturer of the malt or brewed beverages contained or to be
    21  contained therein permanently affixed to the bottle, cask, keg
    22  or other container, or in the case of a bottle or can, to the
    23  cap or cork used in sealing the same or to a label securely
    24  affixed to a bottle or can.
    25     "Package" shall mean any container or containers or
    26  receptacle or receptacles used for holding liquor or alcohol as
    27  marketed by the manufacturer.
    28     "Performing arts facilities" shall mean those halls or
    29  theaters in which live musical, concert, dance, ballet and
    30  legitimate play book-length productions are performed.
    19870H1000B1864                 - 17 -

     1  Performing arts facilities shall not mean those halls or
     2  theaters in which burlesque shows or reviews are performed.
     3     "Person" shall mean a natural person, association or
     4  corporation. Whenever used in a clause prescribing or imposing a
     5  fine or imprisonment or both, the term "person", as applied to
     6  "association", shall mean the partners or members thereof, and
     7  as applied to "corporation", shall mean the officers thereof,
     8  except, as to incorporated clubs, the term "person" shall mean
     9  such individual  or individuals who, under the by-laws of such
    10  club, shall have jurisdiction over the possession and sale of
    11  liquor therein.
    12     "Population" shall mean the number of inhabitants as
    13  determined by the last preceding decennial census of the United
    14  States, or by any other census subsequently taken by the census
    15  bureau of the United States and so certified by it: Provided,
    16  however, That such other census shall not be a basis for the
    17  fixing of license fees as provided in article IV. sections 405
    18  and 439.
    19     "Potable distilled spirits" shall mean and include any
    20  distillate from grains, wine, fruits, vegetables or molasses,
    21  except ethyl alcohol, capable of being used for beverage
    22  purposes.
    23     "Regulation" shall mean any regulation prescribed by the
    24  [board] commission for carrying out the provisions of this act.   <--
    25     "Restaurant" shall mean a reputable place operated by
    26  responsible persons of good reputation and habitually and
    27  principally used for the purpose of providing food for the
    28  public, the place to have an area within a building of not less
    29  than four hundred square feet, equipped with tables and chairs
    30  accommodating at least thirty persons at one time.
    19870H1000B1864                 - 18 -

     1     "Retail dispenser" shall mean any person licensed to engage
     2  in the retail sale of malt or brewed beverages for consumption
     3  on the premises of such licensee, with the privilege of selling
     4  malt or brewed beverages in quantities not in excess of [one      <--
     5  hundred forty-four] ONE HUNDRED NINETY-TWO fluid ounces in a      <--
     6  single sale to one person, to be carried from the premises by
     7  the purchaser thereof.
     8     "Sale" or "Sell" shall include any transfer of liquor,
     9  alcohol or malt or brewed beverages for a consideration.
    10     "Whiskey" shall mean and include any alcoholic distillate
    11  from a fermented mash of grain, capable of being used for
    12  beverage purposes.
    13     "Winery" shall mean and include any premises and plants where
    14  any alcohol or liquor is produced by the process by which wine
    15  is produced, or premises and plants wherein liquid such as wine
    16  is produced; and shall include the manufacture by distillation
    17  of alcohol from the by-products of wine fermentation when the
    18  alcohol so derived is used solely to fortify the fermented
    19  products, under such regulations as are or may be promulgated by
    20  the proper agency of the United States Government, and such
    21  alcohol, for that purpose only, may be sold or exchanged between
    22  wineries holding permits in this Commonwealth, without
    23  restriction.
    24     Section 5.  Section 103 of the act is reenacted to read:
    25     Section 103.  Saving Clause.--The provisions of this act, so
    26  far as they are the same as those of existing laws, are intended
    27  as a continuation of such laws and not as new enactments. The
    28  repeal by this act of any act of Assembly or part thereof shall
    29  not revive any act or part thereof heretofore repealed or
    30  superseded. The provisions of this act shall not affect any act
    19870H1000B1864                 - 19 -

     1  done, liability incurred or right accrued or vested, or affect
     2  any suit or prosecution pending or to be instituted to enforce
     3  any right or penalty or punish any offense under the authority
     4  of such repeal laws. All regulations and rules made and all
     5  licenses and permits issued pursuant to any act repealed by this
     6  act shall continue with the same force and effect as if such act
     7  had not been repealed.
     8     Section 6.  Section 104 of the act is reenacted and amended    <--
     9  to read:
    10     Section 104.  Interpretation of Act.--(a)  This act shall be
    11  deemed an exercise of the police power of the Commonwealth for
    12  the protection of the public welfare, health, peace and morals
    13  of the people of the Commonwealth and to prohibit forever the
    14  open saloon, and all of the provisions of this act shall be
    15  liberally construed for the accomplishment of this purpose.
    16     (b)  The provisions of this act are severable and if any of
    17  its provisions shall be held unconstitutional the decision of
    18  the court shall not affect or impair any of the remaining
    19  provisions of this act. It is hereby declared to be the
    20  legislative intent that this act would have been adopted had
    21  such unconstitutional provisions not been included herein.
    22     (c)  Except as otherwise expressly provided, the purpose of
    23  this act is to prohibit the manufacture of and transactions in
    24  liquor, alcohol and malt or brewed beverages which take place in
    25  this Commonwealth, except by and under the control of the
    26  [board] commission as herein specifically provided, and every     <--
    27  section and provision of the act shall be construed accordingly.
    28  The provisions of this act dealing with the manufacture,
    29  importation, sale and disposition of liquor, alcohol and malt or
    30  brewed beverages within the Commonwealth through the
    19870H1000B1864                 - 20 -

     1  instrumentality of the [board] commission and otherwise, provide  <--
     2  the means by which such control shall be made effective. This
     3  act shall not be construed as forbidding, affecting or
     4  regulating any transaction which is not subject to the
     5  legislative authority of this Commonwealth.
     6     (d)  Any reference in this act to the provisions of law on
     7  any subject shall apply to statutes becoming effective after the
     8  effective date of this act as well as to those then in
     9  existence.
    10     (e)  Section headings shall not be taken to govern or limit
    11  the scope of the sections of this act. The singular shall
    12  include the plural and the masculine shall include the feminine
    13  and the neuter.
    14     Section 7.  The heading of Article II of the act is reenacted
    15  and amended to read:                                              <--
    16                            ARTICLE II.
    17                [PENNSYLVANIA LIQUOR CONTROL BOARD]                 <--
    18                  ALCOHOLIC BEVERAGES COMMISSION.
    19     Section 8.  Section 201 of the act, amended November 23, 1976
    20  (P.L.1123, No.235), is reenacted and amended to read:
    21     Section 201.  Appointment of Members; Terms; Salaries.--An
    22  independent administrative [board] commission to be known as the  <--
    23  "[Pennsylvania Liquor Control Board] Alcoholic Beverages          <--
    24  Commission" is hereby created. The [board] commission shall       <--
    25  consist of three members to be appointed by the Governor by and
    26  with the advice and consent of [two-thirds] a majority of all     <--
    27  the members of the Senate[. Of the [original] members first       <--
    28  appointed after the effective date of this amendatory act, one
    29  shall be appointed for a term of two years, one for a term of
    30  four years, and one for a term of six years [from the date of     <--
    19870H1000B1864                 - 21 -

     1  his appointment and until his successor shall have been
     2  appointed and qualified]. Thereafter, all appointments shall be   <--
     3  for terms of six years [or until successors are appointed and     <--
     4  qualified], NOT MORE THAN TWO OF WHOM SHALL BE FROM THE SAME      <--
     5  POLITICAL PARTY AS THE GOVERNOR. THE APPOINTMENT OF A MEMBER NOT  <--
     6  OF THE GOVERNOR'S POLITICAL PARTY SHALL BE MADE FROM A LIST
     7  PREPARED AND SUBMITTED TO THE GOVERNOR BY THE LEADER OF THE
     8  OPPOSITION PARTY TO THE GOVERNOR IN THE HOUSE OF REPRESENTATIVES
     9  AND THE SENATE. EACH FLOOR LEADER MAY CONTRIBUTE AT LEAST THREE
    10  NAMES TO THE LIST. THE GOVERNOR SHALL SELECT A MEMBER FROM THE
    11  LIST WITHIN THIRTY DAYS OF RECEIPT OF THE LIST, OR THE GOVERNOR
    12  MAY REQUEST ONE SUBSTITUTE LIST OF NOMINEES FROM THE FLOOR
    13  LEADERS. IF THE FLOOR LEADERS FAIL TO SUBMIT A SUBSTITUTE LIST
    14  WITHIN THIRTY DAYS OF RECEIPT OF A REQUEST TO DO SO, THE
    15  GOVERNOR MAY APPOINT THE MEMBER FOR WHICH LISTS OF NOMINEES WERE
    16  NOT SUBMITTED AT HIS DISCRETION. IF ONE OF THE TWO FLOOR LEADERS
    17  RESPONSIBLE FOR THE SUBMISSION OF NOMINEES FOR A LIST FAILS TO
    18  SUBMIT NOMINEES, THE GOVERNOR SHALL ACT UPON THE NOMINEES
    19  SUBMITTED BY THE OTHER FLOOR LEADER AS IF NOMINEES HAD BEEN
    20  RECEIVED FROM BOTH FLOOR LEADERS. IF THE GOVERNOR FAILS TO
    21  SELECT A MEMBER FROM THE LIST OF NOMINEES WITHIN THIRTY DAYS OF
    22  RECEIPT OF THE LIST AND FAILS TO REQUEST A SUBSTITUTE LIST, OR
    23  FAILS TO SELECT A MEMBER FROM THE SUBSTITUTE LIST WITHIN THIRTY
    24  DAYS OF RECEIPT OF THE LIST, THE FLOOR LEADERS WHO PREPARED THE
    25  LIST MAY APPOINT A MEMBER TO SERVE ON THE BOARD. WHENEVER A
    26  VACANCY OCCURS PRIOR TO THE COMPLETION OF THE TERM OF OFFICE OF
    27  A MEMBER APPOINTED PURSUANT TO THIS SECTION, THE SAME PROCEDURE
    28  AS THAT USED TO APPOINT THE MEMBER WHOSE SEAT HAS BECOME VACANT
    29  SHALL BE USED TO NOMINATE A REPLACEMENT FOR THE REMAINDER OF THE
    30  UNEXPIRED TERM. OF THE MEMBERS FIRST APPOINTED AFTER THE
    19870H1000B1864                 - 22 -

     1  EFFECTIVE DATE OF THIS AMENDATORY ACT: ONE MEMBER SHALL SERVE A
     2  TERM OF THREE YEARS; ONE MEMBER SHALL SERVE A TERM OF FOUR
     3  YEARS; AND ONE MEMBER SHALL SERVE A TERM OF FIVE YEARS.
     4  SUBSEQUENT TERMS SHALL BE FOR FOUR YEARS, ENDING ON THE THIRD
     5  TUESDAY IN MAY. No member upon the expiration of his term shall
     6  continue to hold office until his successor shall be duly
     7  appointed or shall be AND qualified. Each of the members shall    <--
     8  receive an annual salary of [twenty-four thousand dollars
     9  ($24,000), except the chairman, who shall receive an annual
    10  salary of twenty-five thousand dollars ($25,000)] thirty-five     <--
    11  thousand dollars ($35,000), EXCEPT THE CHAIRMAN, WHO SHALL        <--
    12  RECEIVE AN ANNUAL SALARY OF THIRTY-SEVEN THOUSAND FIVE HUNDRED
    13  DOLLARS ($37,500) FORTY THOUSAND DOLLARS ($40,000), EXCEPT THE    <--
    14  CHAIRMAN, WHO SHALL RECEIVE AN ANNUAL SALARY OF FORTY-TWO
    15  THOUSAND DOLLARS ($42,000).
    16     Section 9.  Sections 202, 203, 204, 205 and 206 of the act
    17  are reenacted and amended OR REENACTED to read:                   <--
    18     Section 202.  Qualifications of Members.--(a)  Each member of
    19  the [board] commission at the time of his appointment and         <--
    20  qualification shall be a citizen of the United States and a
    21  resident of the Commonwealth of Pennsylvania, shall have been a
    22  qualified elector in the Commonwealth for a period of at least
    23  one year next preceding his appointment, and shall be not less
    24  than [thirty] twenty-one years of age.
    25     (b)  No member of the [board] commission during his period of  <--
    26  service as such shall hold any other office under the laws of
    27  this Commonwealth or of the United States.
    28     (c)  Commission members shall devote full time to their        <--
    29  official duties. No commission member shall hold any office or
    30  position the duties of which are incompatible with his
    19870H1000B1864                 - 23 -

     1  commission duties or be engaged in any employment or vocation
     2  for which he receives any remuneration.
     3     (C)  NO BOARD MEMBER SHALL HOLD ANY OFFICE OR POSITION, THE    <--
     4  DUTIES OF WHICH ARE INCOMPATIBLE WITH HIS OR HER BOARD DUTIES.
     5     (C)  BOARD MEMBERS SHALL DEVOTE FULL TIME TO THEIR OFFICIAL    <--
     6  DUTIES. NO BOARD MEMBER SHALL HOLD ANY OFFICE OR POSITION THE
     7  DUTIES OF WHICH ARE INCOMPATIBLE WITH HIS BOARD DUTIES.
     8     Section 203.  Chairman of [Board] Commission.--[The board      <--
     9  shall elect one of its members as chairmen] (a)  The Governor
    10  shall designate one of the commission BOARD members as chairman   <--
    11  who shall serve in that position at the pleasure of the
    12  Governor. The chairman shall, when present, preside at all
    13  meetings, and in his absence a member designated by the chairman
    14  shall preside.
    15     (b)  Two members of the [board] commission shall constitute a  <--
    16  quorum, and any action or order of the [board] commission shall   <--
    17  require the approval of at least two members.
    18     Section 204.  [Secretary of Board.--The board may appoint a    <--
    19  secretary to hold office at its pleasure. The secretary, if
    20  appointed, shall have such powers and shall perform such duties
    21  not contrary to law as the board shall prescribe, and shall
    22  receive such compensation as the board, with the approval of the
    23  Governor, shall determine. The secretary shall have power and
    24  authority to designate, from time to time, one of the clerks
    25  appointed by the board to perform the duties of the secretary
    26  during his absence and the clerk so appointed shall exercise,
    27  for the time so designated, the powers of the secretary of the
    28  board.] Executive Director.--The commission shall appoint an      <--
    29  executive director and professional management personnel,
    30  including bureau directors, as necessary. The salary of the
    19870H1000B1864                 - 24 -

     1  executive director shall be thirty-four thousand dollars
     2  ($34,000) annually and the salaries of the other professional
     3  personnel shall be set by the commission, with the approval of
     4  the Governor. The executive director shall be responsible for
     5  managing the daily operations of the commission and shall have
     6  such powers and perform such duties not contrary to law as are
     7  necessary to implement decisions and policies made and
     8  established by vote of a majority of the commission.
     9     Section 205.  Bonds Required of Members and [Secretary]        <--
    10  Executive Director.--Before entering upon the duties of their
    11  respective offices or positions, each member of the [board]       <--
    12  commission and the [secretary] executive director shall execute   <--
    13  and file with the State Treasurer a bond in such penal sum as
    14  shall be fixed by the Executive Board of this Commonwealth upon
    15  recommendation of the Governor, but the amount of any such bond
    16  shall not be less than ten thousand dollars ($10,000). Bonds in
    17  such penal sums as shall be fixed by the Executive Board
    18  likewise shall be executed and filed with the State Treasurer by
    19  such employes of the [Pennsylvania Liquor Control Board]
    20  commission BOARD as the head of such [board] commission shall,    <--
    21  with the approval of the Executive Board, prescribe. Such bonds
    22  shall be payable to the Commonwealth of Pennsylvania and shall
    23  be conditioned for the faithful performance of the members',
    24  [secretary's] executive director's or employes' duties imposed    <--
    25  by law or by lawful authority and that the person bonded will
    26  not knowingly violate the provisions of this act. All bonds
    27  required to be given under this section shall, before being
    28  accepted by the State Treasurer, be approved by the [Department
    29  of Justice] Attorney General, and unless the Commonwealth shall
    30  establish its own indemnity fund, all such bonds shall be given
    19870H1000B1864                 - 25 -

     1  with security approved by the [Department of Justice] Attorney
     2  General. If the Commonwealth shall establish its own indemnity
     3  fund, the Executive Board may, nevertheless, require any bond
     4  given hereunder to be executed by a surety or sureties
     5  satisfactory to the [Department of Justice] Attorney General.
     6  The cost of such bonds required to be executed by a surety or
     7  sureties shall be borne by the [board] commission as part of its  <--
     8  operating expense.
     9     Section 206.  [Board] Commission Subject to Administrative     <--
    10  Code.--Except as otherwise expressly provided by law, the
    11  [board] commission shall be subject to all the provisions of The  <--
    12  Administrative Code of one thousand nine hundred twenty-nine, as
    13  amended, which apply generally to independent administrative
    14  boards and commissions.
    15     Section 9.1.  The act is amended by adding a section to read:
    16     Section 206.1.  Commission BOARD AND ENFORCEMENT BUREAU        <--
    17  Subject to State Ethics and Adverse Interest Acts.--(a)  Except
    18  to the extent that the penalties provided in section 210 of this
    19  act for violations are more stringent, the commission BOARD, its  <--
    20  members and all of its employes AND EMPLOYES OF THE ENFORCEMENT   <--
    21  BUREAU shall be subject to the act of October 4, 1978 (P.L.883,
    22  No.170), referred to as the Public Official and Employee Ethics
    23  Law, and the act of July 19, 1957 (P.L.1017, No.451), known as
    24  the "State Adverse Interest Act."
    25     (b)  Membership on the commission BOARD and employment or      <--
    26  continued employment as an employe of the commission BOARD OR     <--
    27  ENFORCEMENT BUREAU is conditioned upon compliance with all of
    28  the provisions of the acts specified in subsection (a),
    29  including, but not limited to, the filing of statements of
    30  financial interests required by section 5 of the Public Official
    19870H1000B1864                 - 26 -

     1  and Employee Ethics Law. Acceptance or retention of employment
     2  shall be deemed as voluntary consent to submit to the financial
     3  reporting requirements of the Public Official and Employee
     4  Ethics Law as a condition of employment. Failure to timely
     5  comply with the requirements shall result in immediate
     6  termination of employment.
     7     Section 10.  Section 207 of the act, amended May 25, 1956
     8  (1955 P.L.1743, No.583), January 13, 1966 (1965 P.L.1301,
     9  No.518), June 17, 1971 (P.L.180, No.22) and July 27, 1973
    10  (P.L.247, No.70), is reenacted and amended to read:
    11     Section 207.  General Powers of [Board] Commission.--Under     <--
    12  this act, the [board] commission shall have the power and its     <--
    13  duty shall be:
    14     (a)  To buy, import or have in its possession for sale, and
    15  sell liquor and alcohol in the manner set forth in this act:
    16  Provided, however, That all purchases shall be made subject to
    17  the approval of the State Treasurer, or his designated deputy.
    18  The commission BOARD shall buy liquor and alcohol at the lowest   <--
    19  price and in the greatest variety reasonably obtainable.
    20     (b)  To control the manufacture, possession, sale,
    21  consumption, importation, use, storage, transportation and
    22  delivery of liquor, alcohol and malt or brewed beverages in
    23  accordance with the provisions of this act, and to fix the
    24  wholesale and retail prices at which liquors and alcohol shall
    25  be sold at Pennsylvania Liquor Stores[: Provided, That in fixing
    26  the sale prices, the board shall not give any preference or make
    27  any discrimination as to classes, brands or otherwise, except to
    28  the extent and for the length of time necessary to sell such
    29  classes or brands in compliance with any Federal action freezing
    30  or otherwise controlling the price of said classes or brands, or
    19870H1000B1864                 - 27 -

     1  except where special sales are deemed necessary to move
     2  unsaleable merchandise, or except where the addition of a
     3  service or handling charge to the fixed sales price of any
     4  merchandise in the same comparable price bracket, regardless of
     5  class, brand or otherwise, is, in the opinion of the board,
     6  required for the efficient operation of the State store system].
     7  Prices shall be proportional with prices paid by the commission   <--
     8  BOARD to its suppliers and shall reflect any advantage obtained   <--
     9  through volume purchases by the commission BOARD. The commission  <--
    10  BOARD may establish a preferential price structure for wines      <--
    11  produced within this Commonwealth for the promotion of such
    12  wines, as long as the price structure is uniform within each
    13  class of wine purchased by the commission BOARD. The [board]      <--
    14  commission shall require each Pennsylvania manufacturer and each
    15  nonresident manufacturer of liquors, other than wine, selling
    16  such liquors to the [board] commission, which are not             <--
    17  manufactured in this Commonwealth, to make application for and
    18  be granted a permit by the [board] commission before such         <--
    19  liquors not manufactured in this Commonwealth shall be purchased
    20  from such manufacturer. Each such manufacturer shall pay for
    21  such permit a fee which, in the case of a manufacturer of this
    22  Commonwealth, shall be equal to that required to be paid, if
    23  any, by a manufacturer or wholesaler of the state, territory or
    24  country of origin of the liquors, for selling liquors
    25  manufactured in Pennsylvania, and in the case of a nonresident
    26  manufacturer, shall be equal to that required to be paid, if
    27  any, in such state, territory or country by Pennsylvania
    28  manufacturers doing business in such state, territory or
    29  country. In the event that any such manufacturer shall, in the
    30  opinion of the [board] commission, sell or attempt to sell        <--
    19870H1000B1864                 - 28 -

     1  liquors to the [board] commission through another person for the  <--
     2  purpose of evading this provision relating to permits, the
     3  [board] commission shall require such person, before purchasing   <--
     4  liquors from him or it, to take out a permit and pay the same
     5  fee as hereinbefore required to be paid by such manufacturer.
     6  All permit fees so collected shall be paid into The State Stores
     7  Fund. The [board] commission shall not purchase any alcohol or    <--
     8  liquor fermented, distilled, rectified, compounded or bottled in
     9  any state, territory or country, the laws of which result in
    10  prohibiting the importation therein of alcohol or liquor,
    11  fermented, distilled, rectified, compounded or bottled in
    12  Pennsylvania.
    13     (c)  To determine the municipalities within which
    14  Pennsylvania Liquor Stores shall be established and the
    15  locations of the stores within such municipalities.
    16     (d)  To grant and issue all licenses and to grant, issue,
    17  suspend and revoke all [licenses and] permits authorized to be
    18  issued under this act [and the regulations of the [board and      <--
    19  impose fines on licensees licensed under this act]] commission.   <--
    20     (e)  Through the Department of [Property and Supplies]
    21  General Services as agent, to lease and furnish and equip such
    22  buildings, rooms and other accommodations as shall be required
    23  for the operation of this act.
    24     (f)  To appoint, fix the compensation and define the powers
    25  and duties of such managers, officers, inspectors, [examiners,]   <--
    26  clerks and other employes as shall be required for the operation
    27  of this act, subject to the provisions of The Administrative
    28  Code of 1929 and the Civil Service Act.
    29     (g)  To determine the nature, form and capacity of all
    30  packages and original containers to be used for containing
    19870H1000B1864                 - 29 -

     1  liquor, alcohol or malt or brewed beverages.
     2     (h)  Without in any way limiting or being limited by the
     3  foregoing, to do all such things and perform all such acts as
     4  are deemed necessary or advisable for the purpose of carrying
     5  into effect the provisions of this act and the regulations made
     6  thereunder.
     7     (i)  From time to time, to make such regulations not
     8  inconsistent with this act as it may deem necessary for the
     9  efficient administration of this act. The [board] commission      <--
    10  shall cause such regulations to be published and disseminated
    11  throughout the Commonwealth in such manner as it shall deem
    12  necessary and advisable or as may be provided by law. Such
    13  regulations adopted by the [board] commission shall have the      <--
    14  same force as if they formed a part of this act.
    15     (j)  [To investigate, whenever any person complains, or when
    16  the board is aware that there is reasonable grounds to believe
    17  liquor or malt or brewed beverage is being sold on premises not
    18  licensed under the provisions of this act. If the investigation
    19  produces evidence of the unlawful sale of liquor or malt or
    20  brewed beverage or of any other violation of the provisions of
    21  this act, the board shall cause the prosecution of the person or
    22  persons believed to have been criminally liable for the unlawful
    23  acts. Any equipment or appurtenances actually used in the
    24  commission of the unlawful acts may be confiscated upon
    25  direction of the board. The confiscation by or under the
    26  direction of the board shall not, in any manner, divest or
    27  impair the rights or interest of any bona fide lien holder in
    28  the equipment or appurtenances, who had no knowledge that the
    29  same was being used in violation of this act.] By regulation, to
    30  provide for the use of a computerized referral system to assist
    19870H1000B1864                 - 30 -

     1  consumers in locating special items at Pennsylvania Liquor
     2  Stores; for the use of electronic transfer of funds AND CREDIT    <--
     3  CARDS for the purchase of liquor and alcohol at Pennsylvania
     4  Liquor Stores; and for the use of credit cards, by licensees      <--
     5  only, for volume purchases.
     6     Section 11.  Section 208 of the act, amended July 22, 1970
     7  (P.L.539, No.182) and October 11, 1972 (P.L.906, No.215), is
     8  reenacted and amended to read:                                    <--
     9     Section 208.  Specific Subjects on Which [Board] Commission    <--
    10  May Adopt Regulations.--Subject to the provisions of this act
    11  and without limiting the general power conferred by the
    12  preceding section, the [board] commission may make regulations    <--
    13  regarding:
    14     (a)  The equipment and management of Pennsylvania Liquor
    15  Stores and warehouses in which liquor and alcohol are kept or
    16  sold, and the books and records to be kept therein.
    17     (b)  The duties and conduct of the officers and employes of
    18  the [board] commission.                                           <--
    19     (c)  The purchase, as provided in this act, of liquor and
    20  alcohol, and its supply to Pennsylvania Liquor Stores.
    21     (d)  The classes, varieties and brands of liquor and alcohol
    22  to be kept and sold in Pennsylvania Liquor Stores. In making
    23  this determination the [board] commission shall meet not less     <--
    24  than twice a year.
    25     (e)  The issuing and distribution of price lists for the
    26  various classes, varieties or brands of liquor and alcohol kept
    27  for sale by the [board] commission under this act.                <--
    28     (f)  The labeling of liquor and alcohol sold under this act
    29  and of liquor and alcohol lawfully acquired by any person prior
    30  to January first, one thousand nine hundred thirty-four.
    19870H1000B1864                 - 31 -

     1     (g)  Forms to be used for the purposes of this act.
     2     (h)  The issuance of licenses and permits and the conduct,
     3  management, sanitation and equipment of places licensed or
     4  included in permits.
     5     (i)  The place and manner of depositing the receipts of
     6  Pennsylvania Liquor Stores and the transmission of balances to
     7  the Treasury Department through the Department of Revenue.
     8     (j)  The solicitation by resident or nonresident vendors of
     9  liquor from Pennsylvania licensees and other persons of orders
    10  for liquor to be sold through the Pennsylvania Liquor Stores
    11  and, in the case of nonresident vendors, the collection
    12  therefrom of license fees for such privilege at the same rate as
    13  provided herein for importers' licenses.
    14     Section 12.  Section 209 of the act is repealed.
    15     Section 13.  Section 210 of the act is reenacted and amended
    16  to read:
    17     Section 210.  Restrictions on Members of the [Board]           <--
    18  Commission and CERTAIN Employes of Commonwealth.--(a)  A member   <--
    19  or employe of the [board] commission OR ENFORCEMENT BUREAU or a   <--
    20  member of the immediate family of a member or employe of the
    21  commission BOARD OR ENFORCEMENT BUREAU shall not be directly or   <--
    22  indirectly interested or engaged in any other business or
    23  undertaking dealing in liquor, alcohol, or malt or brewed
    24  beverages, whether as owner, part owner, partner, member of
    25  syndicate, shareholder, agent or employe, and whether for his
    26  own benefit or in a fiduciary capacity for some other person.
    27     (b)  No member or employe of the [board] commission OR         <--
    28  ENFORCEMENT BUREAU or a member of the immediate family of a
    29  member or employe of the commission BOARD OR ENFORCEMENT BUREAU   <--
    30  nor any employe of the Commonwealth shall solicit or receive,
    19870H1000B1864                 - 32 -

     1  directly or indirectly, any commission, remuneration or gift
     2  whatsoever, from any person having sold, selling or offering
     3  liquor or alcohol for sale to the [board] commission for use in   <--
     4  Pennsylvania Liquor Stores.
     5     (c)  No person convicted of an infamous crime may be employed
     6  as a member or employe by the commission BOARD OR ENFORCEMENT     <--
     7  BUREAU.
     8     (d)  No member or employe of the commission BOARD OR           <--
     9  ENFORCEMENT BUREAU may use his position with the commission       <--
    10  BOARD OR ENFORCEMENT BUREAU, or any confidential information      <--
    11  received through his position with the commission, BOARD OR       <--
    12  ENFORCEMENT BUREAU to obtain financial gain, other than
    13  compensation provided by law, for himself, a member of his
    14  immediate family or a business with which he is associated.
    15     (e)  No person may offer or give to a member or employe of
    16  the commission BOARD OR ENFORCEMENT BUREAU or a member of his     <--
    17  immediate family or a business with which he is associated, and
    18  no member or employe of the commission BOARD OR ENFORCEMENT       <--
    19  BUREAU may solicit or accept anything of value, including a
    20  gift, loan, political contribution, reward or promise of future
    21  employment, based on an understanding that the vote, official
    22  action or judgment of the member or employe of the commission     <--
    23  BOARD OR ENFORCEMENT BUREAU would be influenced thereby.          <--
    24     (f)  No member or employe of the commission BOARD OR           <--
    25  ENFORCEMENT BUREAU or a member of his immediate family or any
    26  business in which the member or employe or a member of his
    27  immediate family is a director, officer or owner or holder of
    28  stock exceeding five percent (5%) of the equity at fair market
    29  value of the business may enter into any contract valued at five
    30  hundred dollars ($500) or more to provide goods or services to
    19870H1000B1864                 - 33 -

     1  the commission BOARD OR ENFORCEMENT BUREAU unless the contract    <--
     2  has been awarded to the lowest responsible bidder through an
     3  open and public process, including prior public notice and
     4  subsequent public disclosure of all proposals considered and
     5  contracts awarded.
     6     (g)  No former member or employe of the commission BOARD OR    <--
     7  ENFORCEMENT BUREAU may represent a person, with or without
     8  compensation, on any matter before the commission BOARD OR        <--
     9  ENFORCEMENT BUREAU for one year after leaving the commission      <--
    10  BOARD OR ENFORCEMENT BUREAU.                                      <--
    11     (h)  A public officer or public official or a party officer    <--
    12  or member of the immediate family of such individuals, or a
    13  business with which such individuals or members of their
    14  immediate families are associated, must not have a financial
    15  interest in any contract valued at five hundred dollars ($500)
    16  or more to provide goods or services to the commission either
    17  during the time the person holds such office, or for two years
    18  after the person terminates such office, unless the contract is
    19  executed pursuant to the provisions of subsection (f). For
    20  purposes of this subsection, the term "financial interest" shall
    21  not include employment by, association with or ownership of a
    22  business association unless the public officer, public official,
    23  party officer or member of the immediate family or the
    24  individual owns shares of stock in the corporation in an amount
    25  in excess of five percent (5%) of the total issue for the stock
    26  of the corporation, or has an ownership interest in a
    27  noncorporate business association in an amount in excess of five
    28  percent (5%) of the total ownership of the noncorporate business
    29  association.
    30     (i) (H)  No member or employe of the commission BOARD OR       <--
    19870H1000B1864                 - 34 -

     1  ENFORCEMENT BUREAU or an advisor or consultant thereto having
     2  recommended to the commission BOARD OR ENFORCEMENT BUREAU either  <--
     3  the making of a contract or a course of action of which the
     4  making of a contract is an express or implied part, may, at any
     5  time thereafter, have an adverse interest in that contract.
     6     (j) (I)  No member or employe of the commission or any         <--
     7  officer or employe of the Commonwealth or any of its political
     8  subdivisions BOARD OR ENFORCEMENT BUREAU may influence or         <--
     9  attempt to influence the making of, or supervise or deal with, a
    10  contract with the commission BOARD OR ENFORCEMENT BUREAU in       <--
    11  which he has an adverse interest.
    12     (k) (J)  No member or employe of the commission BOARD OR       <--
    13  ENFORCEMENT BUREAU may have an adverse interest in a contract
    14  with the commission BOARD OR ENFORCEMENT BUREAU.                  <--
    15     (l) (K)  No person having an adverse interest in a contract    <--
    16  with the commission BOARD OR ENFORCEMENT BUREAU may become an     <--
    17  employe of the commission BOARD OR ENFORCEMENT BUREAU until the   <--
    18  adverse interest has been wholly divested.
    19     (m) (L)  No member or employe of the commission or any         <--
    20  officer or employe of the Commonwealth or a political
    21  subdivision BOARD OR ENFORCEMENT BUREAU, except in the            <--
    22  performance of his duties as such employe, may, for
    23  remuneration, directly or indirectly, represent a person upon a
    24  matter pending before the commission BOARD OR ENFORCEMENT         <--
    25  BUREAU.
    26     (n) (M)  (1)  Any person who violates the provisions of this   <--
    27  section shall have his employment by the commission BOARD OR      <--
    28  ENFORCEMENT BUREAU immediately terminated by the appropriate
    29  person having the power to terminate and shall be liable to the
    30  commission BOARD OR ENFORCEMENT BUREAU to reimburse the           <--
    19870H1000B1864                 - 35 -

     1  commission BOARD OR ENFORCEMENT BUREAU for all compensation       <--
     2  received by him from the commission BOARD OR ENFORCEMENT BUREAU   <--
     3  while employed in violation of subsection (c).
     4     (2)  Any person who violates the provisions of subsections
     5  (b), (d) or (e) shall be guilty of a felony and, upon conviction
     6  thereof, shall be sentenced to pay a fine of not more than ten
     7  thousand dollars ($10,000) or to undergo imprisonment for not
     8  more than five (5) years, or both.
     9     (3)  Any person who violates the provisions of subsections
    10  (a) or (f) through (m) (L) shall be guilty of a misdemeanor and,  <--
    11  upon conviction thereof, shall be sentenced to pay a fine of not
    12  more than one thousand dollars ($1,000) or to undergo
    13  imprisonment for not more than one (1) year, or both.
    14     (4)  Any person who obtains financial gain from violating any
    15  provisions of this section, in addition to any other penalty
    16  provided by law, shall pay into the accounts of the commission    <--
    17  BOARD a sum of money equal to three (3) times the financial gain  <--
    18  resulting from the violation.
    19     (5)  Any person who violates the provisions of this section
    20  shall be barred for a period of five (5) years from engaging in
    21  any business or contract with the commission, the Commonwealth    <--
    22  or a political subdivision BOARD OR ENFORCEMENT BUREAU.           <--
    23     (6)  Any employe of the Commonwealth or a political            <--
    24  subdivision or any public officer or public official who
    25  violates any of the provisions of this section shall
    26  automatically forfeit the office or employment.
    27     (7) (6)  The penalties and sanctions provided by this          <--
    28  subsection shall supersede any similar penalties and sanctions
    29  provided by the act of July 19, 1957 (P.L.1017, No.451), known
    30  as the "State Adverse Interest Act," and the act of October 4,
    19870H1000B1864                 - 36 -

     1  1978 (P.L.883, No.170), referred to as the Public Official and
     2  Employee Ethics Law.
     3     (o) (N)  As used in this section, the following words and      <--
     4  phrases shall have the meanings given to them in this
     5  subsection:
     6     "Business" shall mean a corporation, partnership, sole
     7  proprietorship, firm, enterprise, franchise, association,
     8  organization, self-employed individual, holding company, joint-
     9  stock company, receivership, trust or legal entity organized for
    10  profit or as a not-for-profit corporation or organization.
    11     "Immediate family" shall mean a parent, spouse, child,
    12  brother, sister or like relative-in-law.
    13     "Infamous crime" shall mean a violation and conviction for an
    14  offense which would disqualify an individual from holding public
    15  office pursuant to section 6 of Article II of the Constitution
    16  of Pennsylvania; a conviction WITHIN THE PRECEDING TEN (10)       <--
    17  YEARS for a violation of this section or of 18 Pa.C.S. § 4113
    18  (relating to misapplication of entrusted property and property
    19  of government or financial institutions), Ch. 47 (relating to
    20  bribery and corrupt influence), Ch. 49 (relating to
    21  falsification and intimidation), Ch. 51 (relating to obstructing
    22  governmental operations) or Ch. 53 (relating to abuse of
    23  office); or a violation of the laws of this Commonwealth or
    24  another state or the Federal Government for which an individual
    25  has been convicted within the preceding ten (10) years and which
    26  is classified as a felony.
    27     "Party officer" shall mean any of the following members or     <--
    28  officers of a political party: a member of a national committee;
    29  a chairman, vice chairman, secretary, treasurer or counsel of a
    30  State committee or member of the executive committee of a State
    19870H1000B1864                 - 37 -

     1  committee; a county chairman, vice chairman, counsel, secretary
     2  or treasurer of a county committee; or a city chairman, vice
     3  chairman, counsel, secretary or treasurer of a city committee.
     4     "Public officer" shall mean a person elected to a public
     5  office of the Commonwealth or a political subdivision.
     6     "Public official" shall mean an elected or appointed official
     7  in the executive, legislative or judicial branch of the
     8  Commonwealth or a political subdivision. The term does not
     9  include members of advisory boards that have no authority to
    10  expend public funds other than reimbursement for personal
    11  expense or to otherwise exercise the power of the Commonwealth
    12  or a political subdivision. The term does not include an
    13  appointed official who receives no compensation other than
    14  reimbursement for actual expenses.
    15     Section 14.  The act is amended by adding sections to read:
    16     Section 211.  Enforcement.--(a)  There is created within the
    17  Pennsylvania State Police a Bureau of Liquor Control Enforcement
    18  which shall be responsible for enforcing this act and any
    19  regulations promulgated pursuant thereto. Officers and
    20  investigators assigned to the bureau shall have the power and
    21  their duty shall be:
    22     (1)  To investigate whenever there are reasonable grounds to
    23  believe liquor, alcohol or malt or brewed beverages is being
    24  sold on premises not licensed under the provisions of this act.
    25  If the investigation produces evidence of the unlawful sale of
    26  liquor or malt or brewed beverages or any other violation of the
    27  provisions of this act, the officer involved in the
    28  investigation shall institute criminal proceedings against the
    29  person or persons believed to have been criminally liable, as
    30  otherwise provided by law or rule of court.
    19870H1000B1864                 - 38 -

     1     (2)  To arrest on view, except in private homes, without
     2  warrant, any person actually engaged in the unlawful sale,
     3  importation, manufacture or transportation or having unlawful
     4  possession of liquor, alcohol or malt or brewed beverages
     5  contrary to the provisions of this act or any other law of this
     6  Commonwealth.
     7     (3)  Upon reasonable and probable cause, to search for and to
     8  seize, without warrant or process, except in private homes, any
     9  liquor, alcohol or malt or brewed beverages unlawfully
    10  possessed, manufactured, sold, imported or transported and any
    11  stills, equipment, materials, utensils, vehicles, boats,
    12  vessels, animals, aircraft, or any of them, which are or have
    13  been used in the unlawful manufacture, sale, importation or
    14  transportation of the same, such liquor, alcohol, malt or brewed
    15  beverages, stills, equipment, materials, utensils, vehicles,
    16  boards BOATS, vessels, animals or aircraft so seized shall be     <--
    17  disposed of as hereinafter provided.
    18     (4)  To investigate and issue citations for any violations of
    19  this act or any laws of this Commonwealth relating to liquor,
    20  alcohol or malt or brewed beverages, or any regulations of the
    21  commission adopted pursuant to such laws or any violation of any
    22  laws of this Commonwealth or of the Federal Government, relating
    23  to the payment of taxes on liquor, alcohol or malt or brewed
    24  beverages by any licensee, his officers, servants, agents or
    25  employes.
    26     (b)  Any equipment or appurtenance actually used in the
    27  commission of the unlawful acts may be confiscated. The
    28  confiscation shall not, in any manner, divest or impair the
    29  rights or interest of any bona fide lienholder in the equipment
    30  or appurtenance.
    19870H1000B1864                 - 39 -

     1     (c)  Except for up to three State Police officers who shall    <--
     2  be employed in a supervisory capacity at the State headquarters
     3  of the enforcement bureau, all other personnel of the
     4  enforcement bureau shall be civilians.
     5     (C)  THE PENNSYLVANIA STATE POLICE COMMISSIONER SHALL ASSIGN   <--
     6  STATE POLICE OFFICERS TO SUCH SUPERVISORY AND OTHER CAPACITIES
     7  IN THE ENFORCEMENT BUREAU AS HE DEEMS NECESSARY. ALL OTHER
     8  PERSONNEL OF THE ENFORCEMENT BUREAU SHALL BE CIVILIANS.
     9     (D)  THE OFFICE OF CHIEF COUNSEL FOR THE PENNSYLVANIA STATE
    10  POLICE SHALL REPRESENT THE ENFORCEMENT BUREAU IN ALL ENFORCEMENT
    11  PROCEEDINGS BROUGHT BEFORE THE OFFICE OF ADMINISTRATIVE LAW
    12  JUDGE OR ANY OTHER ADJUDICATORY BODY.
    13     Section 212.  Office of Administrative Law Judge.--(a)  There
    14  is hereby created within the commission BOARD an autonomous       <--
    15  office to be known as the Office of Administrative Law Judge.
    16     (b)  All hearing examiners employed by the Pennsylvania        <--
    17  Liquor Control Board on the effective date of this section shall
    18  continue to serve as administrative law judges within the
    19  commission. Additional administrative law judges may be
    20  appointed by the commission, with the approval of the Governor,
    21  as the commission deems necessary for the holding of hearings
    22  required or permitted under this act.
    23     (B)  BY AND WITH THE ADVICE AND CONSENT OF A MAJORITY OF ALL   <--
    24  THE MEMBERS OF THE SENATE, THE GOVERNOR SHALL APPOINT A CHIEF
    25  ADMINISTRATIVE LAW JUDGE AND AS MANY ADMINISTRATIVE LAW JUDGES
    26  AS THE BOARD, WITH THE APPROVAL OF THE GOVERNOR, DEEMS NECESSARY
    27  FOR THE HOLDING OF HEARINGS REQUIRED OR PERMITTED UNDER THIS
    28  ACT.
    29     (c)  Administrative law judges shall preside at all
    30  licensing, citation and other enforcement hearings required or    <--
    19870H1000B1864                 - 40 -

     1  permitted under this act.
     2     (d)  Administrative law judges appointed under this section    <--
     3  shall be afforded employment security as provided by the act of
     4  August 5, 1941 (P.L.752, No.286), known as the "Civil Service
     5  Act."
     6     (D)  ADMINISTRATIVE LAW JUDGES APPOINTED UNDER THIS SECTION    <--
     7  SHALL BE LEARNED IN THE LAW AND SHALL BE MEMBERS IN GOOD
     8  STANDING OF THE BAR OF THE SUPREME COURT OF PENNSYLVANIA.
     9     (e)  Compensation for the administrative law judges shall be
    10  established by the commission BOARD with the approval of the      <--
    11  Governor. ESTABLISHED BY THE EXECUTIVE BOARD.                     <--
    12     (F)  ADMINISTRATIVE LAW JUDGES SHALL DEVOTE FULL TIME TO       <--
    13  THEIR OFFICIAL DUTIES AND SHALL PERFORM NO DUTIES INCONSISTENT
    14  WITH THEIR DUTIES AND RESPONSIBILITIES AS ADMINISTRATIVE LAW
    15  JUDGES.
    16     (f) (G)  Nothing in this section or this act shall be          <--
    17  construed or intended to change or affect the terms and
    18  conditions of employment or the employment security of hearing
    19  examiners employed by the Pennsylvania Liquor Control Board       <--
    20  BOARD on the effective date of this section.                      <--
    21     Section 213.  Office of Chief Counsel.--The commission shall   <--
    22  establish an Office of Chief Counsel which shall provide legal
    23  advice on matters coming before the commission and shall
    24  represent the enforcement bureau in all enforcement proceedings
    25  brought before the Office of Administrative Law Judge. The
    26  salary of the chief counsel and the number and salaries of any
    27  deputy counsels employed by the Office of Chief Counsel shall be
    28  set by the commission with the approval of the Governor.
    29     Section 214 213.  Bureau of Consumer Relations.--The           <--
    30  commission BOARD shall establish a Bureau of Consumer Relations   <--
    19870H1000B1864                 - 41 -

     1  which shall be responsible for handling all consumer complaints
     2  and suggestions. The bureau shall develop a system-wide program
     3  for investigating all complaints and suggestions and
     4  implementing improvements into the State Store system.
     5     Section 215 214.  Prohibitions.--(a)  The commission BOARD     <--
     6  may not make a contract or otherwise do business with a
     7  corporation, vendor or service contractor that has not complied
     8  with the regulatory and statutory requirements of any other
     9  administrative agency.
    10     (b)  The commission BOARD may not make a contract or           <--
    11  otherwise do business with a transportation carrier for hire of
    12  liquor, wine or malt or brewed beverages which (carrier) has not
    13  obtained the proper permits from the Pennsylvania Public Utility
    14  Commission under 66 Pa.C.S. Ch. 25 (relating to contract carrier
    15  by motor vehicle and broker).
    16     Section 216 215.  Wine Marketing.--(a)  There is hereby        <--
    17  established within the commission BOARD the Bureau of Wine which  <--
    18  shall be responsible for the purchasing and the wholesale and
    19  retail marketing of premium wines so as to make these wines
    20  available to Pennsylvania consumers at competitive prices and in
    21  a convenient atmosphere.
    22     (b)  The management of the bureau shall be vested in a
    23  director, an assistant director for purchasing and an assistant   <--
    24  director for marketing. WHO SHALL BE ASSISTED BY SUCH OTHER       <--
    25  PERSONNEL AS HE OR SHE DEEMS NECESSARY.
    26     (c)  The commission BOARD shall establish that at least five   <--
    27  per centum of all State stores within a metropolitan area are
    28  wine specialty stores, at which premium wine shall be sold.
    29  These stores shall not sell any distilled product. The stores     <--
    30  shall be in addition to the current number of State stores in
    19870H1000B1864                 - 42 -

     1  operation in said area. THE BOARD MAY ESTABLISH THE WINE          <--
     2  SPECIALTY STORES IN LOCATIONS WHICH PROVIDE THE GREATEST
     3  CUSTOMER TRAFFIC AND THE GREATEST GROSS PROFIT TO THE BOARD.
     4  THESE LOCATIONS MAY INCLUDE ESTABLISHED RETAIL ESTABLISHMENTS.
     5  BOARD EMPLOYES SHALL STAFF THESE LOCATIONS. THE BOARD SHALL HAVE
     6  THE OPTION OF CLOSING STORES WHICH ARE UNPROFITABLE FOR TWO
     7  CONSECUTIVE FISCAL YEARS.
     8     (d)  (1)  The term "metropolitan area" as used in this
     9  section shall mean any one county or any combination of two,
    10  three or four counties contiguous and adjacent with a total
    11  population of fifty thousand or more.
    12     (2)  The term "wine" as used in this section shall mean
    13  liquor which is fermented from grapes and other fruits, having
    14  alcoholic content of twenty-four per centum or less. The term
    15  "wine" shall not include malt or brewed beverages, nor shall
    16  wine include any products containing alcohol derived from malt,
    17  grain, cereal, molasses or cactus.
    18     Section 15.  The heading of Article III of the act is
    19  reenacted to read:
    20                            ARTICLE III.
    21                    PENNSYLVANIA LIQUOR STORES.
    22     Section 16.  Section 301 of the act, amended July 9, 1976
    23  (P.L.527, No.125), is reenacted and amended to read:
    24     Section 301.  [Board] Commission to Establish State Liquor     <--
    25  Stores.--(a)  The [board] commission shall establish, operate     <--
    26  and maintain at such places throughout the Commonwealth as it
    27  shall deem essential and advisable, stores to be known as
    28  "Pennsylvania Liquor Stores," for the sale of liquor and alcohol
    29  in accordance with the provisions of and the regulations made
    30  under this act; except that no store not so already located
    19870H1000B1864                 - 43 -

     1  shall be located within three hundred feet of any elementary or
     2  secondary school, nor within a dry municipality without there
     3  first having been a referendum approving such location. When the
     4  [board] commission shall have determined upon the location of a   <--
     5  liquor store in any municipality, it shall give notice of such
     6  location by public advertisement in two newspapers of general
     7  circulation. In cities of the first class, the location shall
     8  also be posted for a period of at least fifteen days following
     9  its determination by the [board] commission as required in        <--
    10  section 403(g) of this act. The notice shall be posted in a
    11  conspicuous place on the outside of the premises in which the
    12  proposed store is to operate or, in the event that a new
    13  structure is to be built in a similarly visible location. If,
    14  within five days after the appearance of such advertisement, or
    15  of the last day upon which the notice was posted, fifteen or
    16  more taxpayers residing within a quarter of a mile of such
    17  location, or the City Solicitor of the city of the first class,
    18  shall file a protest with the court of common pleas of the
    19  county averring that the location is objectionable because of
    20  its proximity to a church, a school, or to private residences,
    21  the court shall forthwith hold a hearing affording an
    22  opportunity to the protestants and to the [board] commission to   <--
    23  present evidence. The court shall render its decision
    24  immediately upon the conclusion of the testimony and from the
    25  decision there shall be no appeal. If the court shall determine
    26  that the proposed location is undesirable for the reasons set
    27  forth in the protest, the [board] commission shall abandon it     <--
    28  and find another location. The [board] commission may establish,  <--
    29  operate and maintain such establishments for storing and testing
    30  liquors as it shall deem expedient to carry out its powers and
    19870H1000B1864                 - 44 -

     1  duties under this act.
     2     (b)  The [board] commission may lease the necessary premises   <--
     3  for such stores or establishments, but all such leases shall be
     4  made through the Department of General Services as agent of the
     5  [board] commission. The [board] commission, through the           <--
     6  Department of General Services, shall have authority to purchase
     7  such equipment and appointments as may be required in the
     8  operation of such stores or establishments.
     9     Section 17.  Sections 302 and 303 of the act are reenacted
    10  and amended to read:                                              <--
    11     Section 302.  Selection of Personnel.--Officers and employes
    12  of the [board] commission, except as herein otherwise provided,   <--
    13  shall be appointed and employed subject to the provisions of the
    14  Civil Service Act.
    15     Section 303.  Management of Pennsylvania Liquor Stores.--
    16  Every Pennsylvania Liquor Store shall be conducted by a person
    17  appointed in the manner provided in the Civil Service Act who
    18  shall be known as the "manager" and who shall, under the
    19  directions of the [board] commission, be responsible for          <--
    20  carrying out the provisions of this act and the regulations
    21  adopted by the [board] commission under this act as far as they   <--
    22  relate to the conduct of such stores.
    23     Section 18.  Section 304 of the act, amended March 5, 1973
    24  (P.L.1, No.1), is reenacted and amended to read:
    25     Section 304.  When Sales May Be Made at Pennsylvania Liquor
    26  Stores.--Every Pennsylvania Liquor Store shall be open for
    27  business week days, except legal holidays or any day on which a
    28  general, municipal, special or primary election is being held,
    29  during such hours as the [board] commission, in its discretion,   <--
    30  shall determine[, but shall not be open longer than fourteen
    19870H1000B1864                 - 45 -

     1  hours in any one day nor later than eleven o'clock
     2  postmeridian]: Provided, That the Pennsylvania Liquor Stores in
     3  the case of a special election for members of the General
     4  Assembly or members of the Congress of the United States, when
     5  such special election is held on other than a primary, municipal
     6  or general election day, shall be open in those Legislative or
     7  Congressional Districts as though the day were not a special
     8  election day. The [board] commission may, with the approval of    <--
     9  the Governor, temporarily close any store in any municipality.
    10     Section 19.  Section 305 of the act, amended October 21, 1965
    11  (P.L.642, No.316), October 11, 1972 (P.L.906, No.215), June 17,
    12  1974 (P.L.352, No.115), October 2, 1974 (P.L.668, No.222) and
    13  October 4, 1974 (P.L.672, No.224), is reenacted and amended to
    14  read:
    15     Section 305.  Sales by Pennsylvania Liquor Stores.--(a)
    16  Every Pennsylvania Liquor Store shall keep in stock for sale
    17  such classes, varieties and brands of liquor and alcohol as the
    18  [board] commission shall prescribe. If any person shall desire    <--
    19  to purchase any class, variety or brand of liquor or alcohol
    20  which any such store does not have in stock, it shall be the
    21  duty of such store immediately to order the same upon the
    22  payment of a reasonable deposit by the purchaser in such
    23  proportion of the approximate cost of the order as shall be
    24  prescribed by the regulations of the [board] commission. NO       <--
    25  PURCHASER MAY BE REQUIRED TO PURCHASE MORE THAN TWO BOTTLES OR
    26  CONTAINERS OF THE PRODUCT, PROVIDED THAT SUCH PRODUCT IS
    27  AVAILABLE THROUGH THE STATE STORE SYSTEM. The customer shall be
    28  notified immediately upon the arrival of the goods.
    29     In computing the retail price of such special orders for
    30  liquor or alcohol, the [board] commission shall not include the   <--
    19870H1000B1864                 - 46 -

     1  cost of freight or shipping before applying the mark-up and
     2  taxes but shall add the freight or shipping charges to the price
     3  after the mark-up and taxes have been applied.
     4     Unless the customer pays for and accepts delivery of any such
     5  special order within [five] TEN days after notice of arrival,     <--
     6  the store may place it in stock for general sale and the
     7  customer's deposit shall be forfeited.
     8     (b)  Every Pennsylvania Liquor Store shall sell liquors at
     9  wholesale to hotels, restaurants, clubs, and railroad, pullman
    10  and steamship companies licensed under this act; and, under the
    11  regulations of the [board] commission, to pharmacists duly        <--
    12  licensed and registered under the laws of the Commonwealth, and
    13  to manufacturing pharmacists, and to reputable hospitals
    14  approved by the [board] commission, or chemists. The [board]      <--
    15  commission may sell to registered pharmacists only such liquors
    16  as conform to the Pharmacopoeia of the United States, the
    17  National Formulary, or the American Homeopathic Pharmacopoeia.
    18  The [board] commission may sell at special prices under the       <--
    19  regulations of the [board] commission, to United States Armed     <--
    20  Forces facilities which are located on United States Armed
    21  Forces installations and are conducted pursuant to the authority
    22  and regulations of the United States Armed Forces. All other
    23  sales by such stores shall be at retail. [No liquor shall be
    24  sold except for cash, except that the board may, by regulation,
    25  authorize the acceptance of checks for liquor sold at wholesale.
    26  The board shall have power to designate certain stores for
    27  wholesale or retail sales exclusively.] A person entitled to
    28  purchase liquor at wholesale prices may purchase the liquor at
    29  any Pennsylvania Liquor Store upon tendering cash, check or
    30  credit card for the full amount of the purchase. For this
    19870H1000B1864                 - 47 -

     1  purpose, the commission BOARD shall issue a discount card to      <--
     2  each licensee identifying such licensee as a person authorized
     3  to purchase liquor at wholesale prices. Such discount card shall
     4  be retained by the licensee. The commission may provide BOARD     <--
     5  MAY CONTRACT THROUGH THE COMMONWEALTH BIDDING PROCESS for
     6  delivery to wholesale licensees at the expense of the licensee
     7  receiving the delivery.
     8     (c)  Whenever any checks issued in payment of liquor or
     9  alcohol purchased from State Liquor Stores by persons holding
    10  wholesale purchase permit cards issued by the [board] commission  <--
    11  shall be returned to the [board] commission as dishonored, the    <--
    12  [board] commission shall charge a fee of five dollars per         <--
    13  hundred dollars or fractional part thereof, plus all protest
    14  fees, to the maker of such check submitted to the [board]         <--
    15  commission. Failure to pay the face amount of the check in full
    16  and all charges thereon as herein required within ten days after
    17  demand has been made by the [board] commission upon the maker of  <--
    18  the check shall be cause for revocation or suspension of any
    19  license issued by the [board] commission to the person who        <--
    20  issued such check and the cancellation of the wholesale purchase
    21  permit card held by such person.
    22     (d)  No liquor or alcohol package shall be opened on the
    23  premises of a Pennsylvania Liquor Store. No manager or other
    24  employe of the [board] commission employed in a Pennsylvania      <--
    25  Liquor Store shall allow any liquor or alcohol to be consumed on
    26  the store premises, nor shall any person consume any liquor or
    27  alcohol on such premises.
    28     (e)  The [board] commission may sell tax exempt alcohol to     <--
    29  the Commonwealth of Pennsylvania and to persons to whom the
    30  [board] commission shall, by regulation to be promulgated by it,  <--
    19870H1000B1864                 - 48 -

     1  issue special permits for the purchase of such tax exempt
     2  alcohol.
     3     Such permits may be issued to the United States or any
     4  governmental agency thereof, to any university or college of
     5  learning, any laboratory for use exclusively in scientific
     6  research, any hospital, sanitorium, eleemosynary institution or
     7  dispensary; to physicians, dentists, veterinarians and
     8  pharmacists duly licensed and registered under the laws of the
     9  Commonwealth of Pennsylvania; to manufacturing chemists and
    10  pharmacists or other persons for use in the manufacture or
    11  compounding of preparations unfit for beverage purposes.
    12     (f)  Every purchaser of liquor or alcohol from a Pennsylvania
    13  Liquor Store shall receive a numbered receipt which shall show
    14  the price paid therefor, and such other information as the
    15  [board] commission may prescribe. Copies of all receipts issued   <--
    16  by a Pennsylvania Liquor Store shall be retained by and shall
    17  form part of the records of such store.
    18     (g)  The [board] commission is hereby authorized and           <--
    19  empowered to adopt and enforce appropriate rules and regulations
    20  to insure the equitable wholesale and retail sale and
    21  distribution, through the Pennsylvania Liquor Stores, of
    22  available liquor and alcohol at any time when the demand
    23  therefor is greater than the supply.
    24     (h)  Every Pennsylvania Liquor Store shall sell gift
    25  certificates which may be redeemed for liquor.
    26     Section 20.  Section 306 of the act is reenacted and amended
    27  to read:
    28     Section 306.  Audits by Auditor General.--(a)  It shall be
    29  the duty of the Department of the Auditor General to make all
    30  audits which may be necessary in connection with the
    19870H1000B1864                 - 49 -

     1  administration of the financial affairs of the [board]            <--
     2  commission and the Pennsylvania Liquor Stores operated and
     3  maintained by the [board] commission. SUCH AUDITS SHALL BE        <--
     4  CONDUCTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING
     5  PRINCIPLES. NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THE
     6  AUDITOR GENERAL TO CONDUCT BIANNUAL INVENTORIES.
     7     (b)  At least one audit shall be made each year of the
     8  affairs of the [board] commission, and all collections made by    <--
     9  the Pennsylvania Liquor Stores shall be audited quarterly. A
    10  copy of the annual audit of the affairs of the commission BOARD   <--
    11  shall be submitted to each member of the General Assembly.
    12     (c)  Special audits of the affairs of the [board] commission   <--
    13  and the Pennsylvania Liquor Stores maintained and operated by
    14  the [board] commission may be made whenever they may, in the      <--
    15  judgment of the Auditor General, appear necessary, and shall be
    16  made whenever the Governor shall call upon the Auditor General
    17  to make them.
    18     (d)  Copies of all audits made by the Department of the
    19  Auditor General shall be promptly submitted to the [board]        <--
    20  commission and to the Governor.
    21     (e)  Unless the Department of the Auditor General shall
    22  neglect or refuse to make annual, quarterly or special Audits,
    23  as hereinabove required, it shall be unlawful for the [board]     <--
    24  commission to expend any money appropriated to it by the General
    25  Assembly for any audit of its affairs, except for the payment of
    26  the compensation and expenses of such auditors as are regularly
    27  employed as part of the administrative staff of the [board]       <--
    28  commission.
    29     Section 21.  The headings of Article IV and Subdivision (A)
    30  of Article IV of the act are reenacted to read:
    19870H1000B1864                 - 50 -

     1                            ARTICLE IV.
     2           LICENSES AND REGULATIONS; LIQUOR, ALCOHOL AND
     3                     MALT AND BREWED BEVERAGES.
     4       (A)  Liquor and Alcohol (Not Including Manufacturers).
     5     Section 22.  Section 401 of the act, amended June 1, 1972
     6  (P.L.355, No.95), is reenacted and amended to read:               <--
     7     Section 401.  Authority to Issue Liquor Licenses to Hotels,
     8  Restaurants and Clubs.--(a)  Subject to the provisions of this
     9  act and regulations promulgated under this act, the [board]       <--
    10  commission shall have authority to issue a retail liquor license
    11  for any premises kept or operated by a hotel, restaurant or club
    12  and specified in the license entitling the hotel, restaurant or
    13  club to purchase liquor from a Pennsylvania Liquor Store and to
    14  keep on the premises such liquor and, subject to the provisions
    15  of this act and the regulations made thereunder, to sell the
    16  same and also malt or brewed beverages to guests, patrons or
    17  members for consumption on the hotel, restaurant or club
    18  premises. Such licensees, other than clubs, shall be permitted
    19  to sell malt or brewed beverages for consumption off the
    20  premises where sold in quantities of not more than [one hundred   <--
    21  forty-four] ONE HUNDRED NINETY-TWO fluid ounces in a single sale  <--
    22  to one person. Such licenses shall be known as hotel liquor
    23  licenses, restaurant liquor licenses and club liquor licenses,
    24  respectively. No person who holds, either by appointment or
    25  election, any public office which involves the duty to enforce
    26  any of the penal laws of the United States of America or the
    27  penal laws of the Commonwealth of Pennsylvania or any penal
    28  ordinance or resolution of any political subdivision of this
    29  Commonwealth shall be issued any hotel or restaurant liquor
    30  license, nor shall such a person have any interest, directly or
    19870H1000B1864                 - 51 -

     1  indirectly, in any such license.
     2     (b)  The [board] commission may issue to any club which        <--
     3  caters to groups of non-members, either privately or for
     4  functions, a catering license, and the [board] commission shall,  <--
     5  by its rules and regulations, define what constitutes catering
     6  under this subsection except that any club which is issued a
     7  catering license shall not be prohibited from catering on
     8  Sundays during the hours which the club may lawfully serve
     9  liquor, malt or brewed beverages.
    10     Section 23.  Section 402 of the act is reenacted and amended
    11  to read:
    12     Section 402.  License Districts; License Year; Hearings.--(a)
    13  The [board] commission shall, by regulation, divide the State     <--
    14  into convenient license districts and shall hold hearings on
    15  applications for licenses and renewals thereof, as it deems
    16  necessary, at a convenient place or places in each of said
    17  districts, at such times as it shall fix, by regulation, for the
    18  purpose of hearing testimony for and against applications for
    19  new licenses and renewals thereof. The commission BOARD shall     <--
    20  hold a hearing on any application for a new hotel, club or
    21  restaurant liquor license or the transfer of any such license to
    22  a new location, upon the request of any person with standing to
    23  testify under subsection (b) if the request is filed with the
    24  commission BOARD within the first fifteen days of posting of the  <--
    25  notice of application pursuant to section 403(g). The [board]     <--
    26  commission may provide for the holding of such hearings by
    27  [examiners learned in the law, to be appointed by the Governor,   <--
    28  who shall not be subject to the "Civil Service Act."]             <--
    29  administrative law judges. Such examiners shall make A report to  <--
    30  the [board] commission in each case with their recommendations.   <--
    19870H1000B1864                 - 52 -

     1  The [board] commission shall, by regulation, fix the license      <--
     2  year for each separate district so that the expiration dates
     3  shall be uniform in each of the several districts but staggered
     4  as to the State.
     5     (b)  Where a hearing is held in the case of an application
     6  for a new hotel, club or restaurant liquor license or an
     7  application for the transfer of a hotel, club or restaurant
     8  liquor license to a new location, the commission BOARD shall      <--
     9  permit residents residing within a radius of five hundred feet
    10  of the premises to testify at the hearing. The commission BOARD   <--
    11  and any hearing officer thereof shall give appropriate
    12  evidentiary weight to any testimony of such residents given at
    13  the hearing.
    14     Section 24.  Section 403 of the act, amended November 19,
    15  1959 (P.L.1546, No.553) and September 28, 1961 (P.L.1728,
    16  No.702), is reenacted and amended to read:
    17     Section 403.  Applications for Hotel, Restaurant and Club
    18  Liquor Licenses.--(a)  Every applicant for a hotel liquor
    19  license, restaurant liquor license or club liquor license or for
    20  the transfer of an existing license to another premises not then
    21  licensed shall file a written application with the [board]        <--
    22  commission in such form and containing such information as the
    23  [board] commission shall from time to time prescribe, which       <--
    24  shall be accompanied by a filing fee of twenty dollars ($20),
    25  the prescribed license fee, and the bond hereinafter specified.
    26  Every such application shall contain a description of that part
    27  of the hotel, restaurant or club for which the applicant desires
    28  a license and shall set forth such other material information,
    29  description or plan of that part of the hotel, restaurant or
    30  club where it is proposed to keep and sell liquor as may be
    19870H1000B1864                 - 53 -

     1  required by the regulations of the [board] commission. The        <--
     2  descriptions, information and plans referred to in this
     3  subsection shall show the hotel, restaurant, club, or the
     4  proposed location for the construction of a hotel, restaurant or
     5  club, at the time the application is made, and shall show any
     6  alterations proposed to be made thereto, or the new building
     7  proposed to be constructed after the approval by the [board]      <--
     8  commission of the application for a license or for the transfer
     9  of an existing license to another premises not then licensed. No
    10  physical alterations, improvements or changes shall be required
    11  to be made to any hotel, restaurant or club, nor shall any new
    12  building for any such purpose, be required to be constructed
    13  until approval of the application for license or for the
    14  transfer of an existing license to another premises not then
    15  licensed by the [board] commission. After approval of the         <--
    16  application, the licensee shall make the physical alterations,
    17  improvements and changes to the licensed premises, or shall
    18  construct the new building in the manner specified by the
    19  [board] commission at the time of approval, and the licensee      <--
    20  shall not transact any business under the license until the
    21  [board] commission has approved the completed physical            <--
    22  alterations, improvements and changes to the licensed premises,
    23  or the completed construction of the new building as conforming
    24  to the specifications required by the [board] commission at the   <--
    25  time of issuance or transfer of the license, and is satisfied
    26  that the establishment is a restaurant, hotel or club as defined
    27  by this act. The [board] commission may require that all such     <--
    28  alterations or construction or conformity to definition be
    29  completed within six months from the time of issuance or
    30  transfer of the license. Failure to comply with these
    19870H1000B1864                 - 54 -

     1  requirements shall be considered cause for revocation of the
     2  license. No such license shall be transferable between the time
     3  of issuance or transfer of the license and the approval of the
     4  completed alterations or construction by the [board] commission   <--
     5  and full compliance by the licensee with the requirements of
     6  this act, except in the case of death of the licensee prior to
     7  full compliance with all of the aforementioned requirements, in
     8  which event, the license may be transferred by the [board]        <--
     9  commission as provided in section 468 of this act for the
    10  transfer of the license in the case of death of the licensee.
    11     (b)  If the applicant is a natural person, his application
    12  must show that he is a citizen of the United States and has been
    13  a resident of this Commonwealth for at least two years
    14  immediately preceding his application.
    15     (c)  If the applicant is 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, that all officers, directors and
    19  stockholders are citizens of the United States, and that the
    20  manager of the hotel, restaurant or club is a citizen of the
    21  United States.
    22     (d)  Each application shall be signed and verified by oath or
    23  affirmation by the owner, if a natural person, or, in the case
    24  of an association, by a member or partner thereof, or, in the
    25  case of a corporation, by an executive officer thereof or any
    26  person specifically authorized by the corporation to sign the
    27  application, to which shall be attached written evidence of his
    28  authority.
    29     (e)  If the applicant is an association, the application
    30  shall set forth the names and addresses of the persons
    19870H1000B1864                 - 55 -

     1  constituting the association, and if a corporation, the names
     2  and addresses of the principal officers thereof. Every club
     3  applicant shall file with and as a part of its application a
     4  list of the names and addresses of its members, directors,
     5  officers, agents and employes, together with the dates of their
     6  admission, election or employment, and such other information
     7  with respect to its affairs as the [board] commission shall       <--
     8  require.
     9     (f)  The [board] commission shall refuse to issue licenses to  <--
    10  clubs when it appears that the operation of the licensed
    11  business would inure to the benefit of individual members,
    12  officers, agents or employes of the club, rather than to the
    13  benefit of the entire membership of the club.
    14     (g)  Every applicant for a new license or for the transfer of
    15  an existing license [to another premises not then licensed]
    16  shall post, for a period of a least fifteen days beginning with
    17  the day the application is filed with the [board] commission, in  <--
    18  a conspicuous place on the outside of the premises or at the
    19  proposed new location for which the license is applied, a notice
    20  of such application, in such form, of such size, and containing
    21  such provisions as the [board] commission may require by its      <--
    22  regulations. Proof of the posting of such notice shall be filed
    23  with the [board] commission.                                      <--
    24     (h)  If any false statement is intentionally made in any part
    25  of the application, the affiant shall be deemed guilty of a
    26  misdemeanor and, upon conviction, shall be subject to the
    27  penalties provided by this article.
    28     (i)  Upon receipt of an application for a new license or
    29  transfer of an existing license to a new location, the
    30  commission BOARD shall immediately notify, in writing, the        <--
    19870H1000B1864                 - 56 -

     1  municipality in which the premises proposed to be licensed are
     2  located.
     3     Section 25.  Section 404 of the act, amended September 2,
     4  1971 (P.L.429, No.103), is reenacted and amended to read:         <--
     5     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
     6  Licenses.--Upon receipt of the application, the proper fees and
     7  bond, and upon being satisfied of the truth of the statements in
     8  the application that the applicant is the only person in any
     9  manner pecuniarily interested in the business so asked to be
    10  licensed and that no other person will be in any manner
    11  pecuniarily interested therein during the continuance of the
    12  license, except as hereinafter permitted, and that the applicant
    13  is a person of good repute, that the premises applied for meet
    14  all the requirements of this act and the regulations of the
    15  [board] commission, that the applicant seeks a license for a      <--
    16  hotel, restaurant or club, as defined in this act, and that the
    17  issuance of such license is not prohibited by any of the
    18  provisions of this act, the [board] commission shall, in the      <--
    19  case of a hotel or restaurant, grant and issue to the applicant
    20  a liquor license, and in the case of a club may, in its
    21  discretion, issue or refuse a license: Provided, however, That
    22  in the case of any new license or the transfer of any license to
    23  a new location the [board] commission may, in its discretion,     <--
    24  grant or refuse such new license or transfer if such place
    25  proposed to be licensed is within three hundred feet of any
    26  church, hospital, charitable institution, school, or public
    27  playground, or if such new license or transfer is applied for a
    28  place which is within two hundred feet of any other premises
    29  which is licensed by the [board] commission[, or if such new      <--
    30  license or transfer is applied for a place where the principal
    19870H1000B1864                 - 57 -

     1  business is the sale of liquid fuels and oil]: And provided       <--
     2  further, That the [board] commission shall refuse any             <--
     3  application for a new license or the transfer of any license to
     4  a new location if, in the [board's] commission's opinion, such    <--
     5  new license or transfer would be detrimental to the welfare,
     6  health, peace and morals of the inhabitants of the neighborhood
     7  within a radius of five hundred feet of the place proposed to be
     8  licensed: And provided further, That the [board] commission       <--
     9  shall not issue new licenses in any license district more than
    10  twice each license year, effective from specific dates fixed by
    11  the [board] commission, and new licenses shall not be granted,    <--
    12  except for hotels as defined in this act, unless the application
    13  therefor shall have been filed at least thirty days before the
    14  effective date of the license: And provided further, That
    15  nothing herein contained shall prohibit the [board] commission    <--
    16  from issuing a new license for the balance of any unexpired term
    17  in any license district to any applicant in such district, who
    18  shall have become eligible to hold such license as the result of
    19  legislative enactment, when such enactment shall have taken
    20  place during the license term of that district for which
    21  application is made or within the thirty days immediately
    22  preceding such term, nor shall anything herein contained
    23  prohibit the [board] commission from issuing at any time a new    <--
    24  license for an airport restaurant, or municipal golf course, as
    25  defined in section 461 of this act, for the balance of the
    26  unexpired license term in any license district: And provided
    27  further, That the [board] commission shall have the discretion    <--
    28  to refuse a license to any person or to any corporation,
    29  partnership or association if such person, or any officer or
    30  director of such corporation, or any member or partner of such
    19870H1000B1864                 - 58 -

     1  partnership or association shall have been convicted or found
     2  guilty of a felony within a period of five years immediately
     3  preceding the date of application for the said license. THE       <--
     4  BOARD SHALL REFUSE ANY APPLICATION FOR A NEW LICENSE OR THE
     5  TRANSFER OF ANY LICENSE TO A LOCATION WHERE THE SALE OF LIQUID
     6  FUELS OR OIL IS CONDUCTED.
     7     Section 26.  Section 405 of the act, amended July 18, 1961
     8  (P.L.790, No.348), is reenacted and amended to read:              <--
     9     Section 405.  License Fees.--(a)  License fees for hotel and
    10  restaurant liquor licenses shall be graduated according to the
    11  population of the municipality as determined by the last
    12  preceding decennial census of the United States in which the
    13  hotel or restaurant is located, as follows:
    14     In municipalities having a population of less than fifteen
    15  hundred inhabitants, one hundred fifty dollars ($150.00).
    16     In municipalities, except townships, having a population of
    17  fifteen hundred and more but less than ten thousand inhabitants,
    18  and in townships having a population of fifteen hundred and more
    19  but less than twelve thousand inhabitants, two hundred dollars
    20  ($200.00).
    21     In municipalities, except townships, having a population of
    22  ten thousand and more but less than fifty thousand inhabitants,
    23  and in townships having a population of twelve thousand and more
    24  but less than fifty thousand inhabitants, three hundred dollars
    25  ($300.00).
    26     In those having a population of fifty thousand and more but
    27  less than one hundred thousand inhabitants, four hundred dollars
    28  ($400.00).
    29     In those having a population of one hundred thousand and more
    30  but less than one hundred fifty thousand inhabitants, five
    19870H1000B1864                 - 59 -

     1  hundred dollars ($500.00).
     2     In those having a population of one hundred fifty thousand
     3  and more inhabitants, six hundred dollars ($600.00).
     4     (b)  Every applicant for a club liquor license shall pay to
     5  the [board] commission a license fee of fifty dollars ($50.00),   <--
     6  except clubs to which catering licenses are issued, in which
     7  cases the license fees shall be the same as for hotels and
     8  restaurants located in the same municipality.
     9     (c)  All license fees authorized under this section shall be
    10  collected by the [board] commission for the use of the            <--
    11  municipalities in which such fees were collected.
    12     (d)  Whenever any checks issued in payment of filing and/or
    13  license fees shall be returned to the [board] commission as       <--
    14  dishonored, the [board] commission shall charge a fee of five     <--
    15  dollars ($5.00) per hundred dollars, or fractional part thereof,
    16  plus all protest fees, to the maker of such check submitted to
    17  the [board] commission. Failure to pay the face amount of the     <--
    18  check in full and all charges thereon as herein required within
    19  ten days after demand has been made by the [board] commission     <--
    20  upon the maker of the check, the license of such person, if
    21  issued, shall immediately terminate and be cancelled without any
    22  action on the part of the [board] commission.                     <--
    23     Section 27.  Section 406 of the act, amended September 2,
    24  1971 (P.L.429, No.103), December 17, 1982 (P.L.1390, No.319),
    25  May 9, 1984 (P.L.246, No.54) and February 28, 1985 (P.L.1,
    26  No.1), is reenacted and amended to read:                          <--
    27     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
    28  (1)  Every hotel, restaurant or club liquor licensee may sell
    29  liquor and malt or brewed beverages by the glass, open bottle or
    30  other container, and in any mixture, for consumption only in
    19870H1000B1864                 - 60 -

     1  that part of the hotel or restaurant habitually used for the
     2  serving of food to guests or patrons, or in a bowling alley that
     3  is immediately adjacent to and under the same roof as a
     4  restaurant when no minors are present, unless minors who are
     5  present are under proper supervision as defined in section 493,
     6  in the bowling alley, and in the case of hotels, to guests, and
     7  in the case of clubs, to members, in their private rooms in the
     8  hotel or club. No club licensee nor its officers, servants,
     9  agents or employes, other than one holding a catering license,
    10  shall sell any liquor or malt or brewed beverages to any person
    11  except a member of the club. In the case of a restaurant located
    12  in a hotel which is not operated by the owner of the hotel and
    13  which is licensed to sell liquor under this act, liquor and malt
    14  or brewed beverages may be sold for consumption in that part of
    15  the restaurant habitually used for the serving of meals to
    16  patrons and also to guests in private guest rooms in the hotel.
    17  For the purpose of this paragraph, any person who is an active
    18  member of another club which is chartered by the same state or
    19  national organization shall have the same rights and privileges
    20  as members of the particular club. For the purpose of this
    21  paragraph, any person who is an active member of any volunteer
    22  firefighting company, association or group of this Commonwealth,
    23  whether incorporated or unincorporated, shall upon the approval
    24  of any club composed of volunteer firemen licensed under this
    25  act, have the same social rights and privileges as members of
    26  such licensed club. For the purposes of this paragraph, the term
    27  "active member" shall not include a social member.
    28     (2)  Hotel and restaurant liquor licensees, airport
    29  restaurant liquor licensees, municipal golf course restaurant
    30  liquor licensees and privately-owned public golf course
    19870H1000B1864                 - 61 -

     1  restaurant licensees may sell liquor and malt or brewed
     2  beverages only after seven o'clock antemeridian of any day until
     3  two o'clock antemeridian of the following day, except Sunday,
     4  and except as hereinafter provided, may sell liquor and malt or
     5  brewed beverages on Sunday between the hours of twelve o'clock
     6  midnight and two o'clock antemeridian.
     7     (3)  Hotel and restaurant liquor licensees, airport
     8  restaurant liquor licensees, municipal golf course restaurant
     9  liquor licensees and privately-owned public golf course
    10  restaurant licensees whose sales of food and nonalcoholic
    11  beverages are equal to forty per centum or more of the combined
    12  gross sales of both food and alcoholic beverages may sell liquor
    13  and malt or brewed beverages on Sunday between the hours of
    14  eleven o'clock antemeridian and two o'clock antemeridian Monday
    15  upon purchase of a special annual permit from the [board]         <--
    16  commission at a fee of two hundred dollars ($200.00) per year,
    17  which shall be in addition to any other license fees.
    18     (4)  Hotel and restaurant liquor licensees, airport
    19  restaurant liquor licensees, municipal golf course restaurant
    20  liquor licensees and privately-owned public golf course
    21  restaurant licensees which do not qualify for and purchase such
    22  annual special permit, their servants, agents or employes may
    23  sell liquor and malt or brewed beverages only after seven
    24  o'clock antemeridian of any day and until two o'clock
    25  antemeridian of the following day, and shall not sell after two
    26  o'clock antemeridian on Sunday. No hotel, restaurant and public
    27  service liquor licensee which does not have the special annual
    28  permit for Sunday sales shall sell liquor and malt or brewed
    29  beverages after two o'clock antemeridian on any day on which a
    30  general, municipal, special or primary election is being held
    19870H1000B1864                 - 62 -

     1  until one hour after the time fixed by law for closing the
     2  polls, except, that, in the case of a special election for
     3  members of the General Assembly or members of the Congress of
     4  the United States, when such special election is held on other
     5  than a primary, municipal or general election day, licensees in
     6  those Legislative or Congressional Districts may make such
     7  sales, as though the day were not a special election day. No
     8  club licensee or its servants, agents or employes may sell
     9  liquor or malt or brewed beverages between the hours of three
    10  o'clock antemeridian and seven o'clock antemeridian on any day.
    11  No public service liquor licensee or its servants, agents, or
    12  employes may sell liquor or malt or brewed beverages between the
    13  hours of two o'clock antemeridian and seven o'clock antemeridian
    14  on any day.
    15     (5)  Any hotel, restaurant, club or public service liquor
    16  licensee may, by giving notice to the [board] commission,         <--
    17  advance by one hour the hours herein prescribed as those during
    18  which liquor and malt or brewed beverages may be sold during
    19  such part of the year when daylight saving time is being
    20  observed generally in the municipality in which the place of
    21  business of such licensee is located. Any licensee who elects to
    22  operate his place of business in accordance with daylight saving
    23  time shall post a conspicuous notice in his place of business
    24  that he is operating in accordance with daylight saving time.
    25     (6)  Notwithstanding any provisions to the contrary, whenever
    26  the thirty-first day of December or Saint Patrick's Day falls on
    27  a Sunday, every hotel or restaurant liquor licensee, their
    28  servants, agents or employes may sell liquor and malt or brewed
    29  beverages on any such day after one o'clock postmeridian and
    30  until two o'clock antemeridian of the following day.
    19870H1000B1864                 - 63 -

     1     (b)  Such Sunday sales by hotel and restaurant liquor
     2  licensees which qualify for and purchase such annual special
     3  permit, their servants, agents and employes, shall be made
     4  subject to the restrictions imposed by the act on sales by
     5  hotels and restaurants for sales on weekdays as well as those
     6  restrictions set forth in this section.
     7     Section 28.  Section 406.1 of the act, amended May 9, 1984
     8  (P.L.246, No.54), is reenacted and amended to read:               <--
     9     Section 406.1.  Secondary Service Area.--Upon application of
    10  any restaurant, hotel, club, any stadium as described in section
    11  408.9 or municipal golf course liquor licensee, and payment of
    12  the appropriate fee, the [board] commission may approve a         <--
    13  secondary service area by extending the licensed premises to
    14  include one additional permanent structure with dimensions of at
    15  least one hundred seventy-five square feet, enclosed on three
    16  sides and having adequate seating. Such secondary service area
    17  must be located on property having a minimum area of one (1)
    18  acre, and must be on land which is immediate, abutting, adjacent
    19  or contiguous to the licensed premises with no intervening
    20  public thoroughfare. In any stadium as described in section
    21  408.9, only malt or brewed beverages may be served. There shall
    22  be no requirement that the secondary service area be physically
    23  connected to the original licensed premises. Notwithstanding 40
    24  Pa. Code § 7.21(c)(3), the licensee shall be permitted to store,
    25  serve, sell or dispense food, liquor and malt or brewed
    26  beverages at the [board] commission approved secondary service    <--
    27  area.
    28     Section 29.  Section 407 of the act is reenacted to read:
    29     Section 407.  Sale of Malt or Brewed Beverages by Liquor
    30  Licensees.--Every liquor license issued to a hotel, restaurant,
    19870H1000B1864                 - 64 -

     1  club, or a railroad, pullman or steamship company under this
     2  subdivision (A) for the sale of liquor shall authorize the
     3  licensee to sell malt or brewed beverages at the same places but
     4  subject to the same restrictions and penalties as apply to sales
     5  of liquor, except that licensees other than clubs may sell malt
     6  or brewed beverages for consumption off the premises where sold
     7  in quantities of not more than [one hundred forty-four] ONE       <--
     8  HUNDRED NINETY-TWO fluid ounces in a single sale to one person.
     9  No licensee under this subdivision (A) shall at the same time be
    10  the holder of any other class of license, except a retail
    11  dispenser's license authorizing the sale of malt or brewed
    12  beverages only.
    13     Section 30.  Section 408 of the act, amended September 19,
    14  1961 (P.L.1507, No.639) and November 26, 1978 (P.L.1389,
    15  No.326), is reenacted and amended to read:                        <--
    16     Section 408.  Public Service Liquor Licenses.--(a)  Subject
    17  to the provisions of this act and regulations promulgated under
    18  this act, the [board] commission, upon application, shall issue   <--
    19  retail liquor licenses to railroad or pullman companies
    20  permitting liquor and malt or brewed beverages to be sold in
    21  dining, club or buffet cars to passengers for consumption while
    22  enroute on such railroad, and may issue retail liquor licenses
    23  to steamship companies permitting liquor or malt or brewed
    24  beverages to be sold in the dining compartments of steamships or
    25  vessels wherever operated in the Commonwealth, except when
    26  standing or moored in stations, terminals or docks within a
    27  municipality wherein sales of liquor for consumption on the
    28  premises are prohibited, and may further issue retail liquor
    29  licenses to airline companies permitting liquor or malt or
    30  brewed beverages to be sold to passengers for consumption while
    19870H1000B1864                 - 65 -

     1  enroute on such airline. Such licenses shall be known as public
     2  service liquor licenses. 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 in any one day
     8  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 twenty       <--
    11  dollars for each extra car so operated.
    12     (b)  For the purpose of considering an application by a
    13  steamship or airline company for a public service liquor
    14  license, the [board] commission may cause an inspection of the    <--
    15  steamship or vessel or aircraft for which a license is desired.
    16  The [board] commission may, in its discretion, grant or refuse    <--
    17  the license applied for and there shall be no appeal from its
    18  decision, except that an action of mandamus may be brought
    19  against the [board] commission in the manner provided by law.     <--
    20     (c)  Every applicant for a public service liquor license
    21  shall, before receiving such license, file with the [board]       <--
    22  commission a surety bond as hereinafter prescribed, pay to the
    23  [board] commission for each of the maximum number of dining,      <--
    24  club or buffet cars which the applicant estimates it will have
    25  in operation on any one day an annual fee of twenty dollars
    26  ($20.00), and for each steamship or vessel or aircraft for which
    27  a license is desired an annual fee of one hundred dollars
    28  ($100.00).
    29     (d)  Unless previously revoked, every license issued by the
    30  [board] commission under this section shall expire and terminate  <--
    19870H1000B1864                 - 66 -

     1  on the thirty-first day of December, in the year for which the
     2  license is issued. Licenses issued under the provisions of this
     3  section shall be renewed annually, as herein provided, upon the
     4  filing of applications in such form as the [board] commission     <--
     5  shall prescribe, but no license shall be renewed until the
     6  applicant shall file with the [board] commission a new surety     <--
     7  bond and shall pay the requisite license fee specified in this
     8  section.
     9     (e)  Except as otherwise specifically provided, sales of
    10  liquor and malt or brewed beverages by the aforesaid public
    11  service company licensees shall be made in accordance with, and
    12  shall be subject to, the provisions of this act relating to the
    13  sale of liquors by restaurant licensees.
    14     Section 31.  Section 408.1 of the act, added December 15,
    15  1965 (P.L.1106, No.426) and amended November 17, 1967 (P.L.510,
    16  No.247), is reenacted and amended to read:                        <--
    17     Section 408.1.  Trade Show and Convention Licenses.--(a)  The
    18  [board] commission is authorized to issue a license in any city   <--
    19  of the first or second class for the retail sale of liquor and
    20  malt or brewed beverages by the glass, open bottles or other
    21  container or in any mixture for consumption in any restaurant or
    22  other appropriate location on city-owned premises or on premises
    23  of an authority created under the act of July 29, 1953
    24  (P.L.1034), known as the "Public Auditorium Authorities Law"
    25  customarily used or available for use for trade shows and
    26  conventions. Any concessionaire selected and certified by the
    27  city or its authorized agency or by the authority may apply for
    28  a license.
    29     (b)  The application for a trade show and convention license
    30  may be filed at any time and shall conform with all requirements
    19870H1000B1864                 - 67 -

     1  for restaurant liquor license applications except as may be
     2  otherwise provided herein. The applicant shall submit such other
     3  information as the [board] commission may require. Application    <--
     4  shall be in writing on forms prescribed by the [board]            <--
     5  commission and shall be signed and submitted to the [board]       <--
     6  commission by the applicant. The filing fee which shall
     7  accompany the trade show and convention license application
     8  shall be twenty dollars ($20).
     9     (c)  Upon receipt of the application in proper form and the
    10  application fee, and upon being satisfied that the applicant is
    11  of good repute and financially responsible and that the proposed
    12  place of business is proper, the [board] commission shall issue   <--
    13  a license to the applicant.
    14     (d)  The license shall be issued for the same period as
    15  provided for restaurant licenses and shall be renewed as in
    16  section 402. The license shall terminate upon revocation by the
    17  [board] commission or upon termination of the contract between    <--
    18  the concessionaire and the city or authority.
    19     (e)  The annual fee for a trade show and convention license
    20  shall be six hundred dollars ($600), and shall accompany the
    21  application for the license. Whenever a concessionaire's
    22  contract terminates the license shall be returned to the [board]  <--
    23  commission for cancellation and a new license shall be issued to
    24  a new applicant.
    25     (f)  The penal sum of the bond which shall be filed by an
    26  applicant for a trade show and convention license pursuant to
    27  section 465 of this article shall be two thousand dollars
    28  ($2,000) and in addition thereto he shall file an additional
    29  bond in a sum to assure payment of any suspension of license up
    30  to one hundred days.
    19870H1000B1864                 - 68 -

     1     (g)  Sales by the holder of a trade show and convention
     2  license may be made except to those persons prohibited under
     3  clause (1) of section 493 of this act on city-owned or
     4  authority-owned, leased or operated premises customarily used or
     5  available for use for trade shows and conventions during the
     6  hours in which the convention or trade show is being held and up
     7  to one hour after the scheduled closing, and at functions which
     8  are incidental to or a part of the trade show or convention, but
     9  such sales may not be made beyond the hours expressed in the act
    10  for the sale of liquor by restaurant licensees: Provided,
    11  however, That during the hours expressed in this act for the
    12  sale of liquor by hotel licensees, sales of such liquor or malt
    13  or brewed beverages may be made by said licensee at banquets,
    14  not incidental to trade shows or conventions, at which more than
    15  two thousand persons are scheduled to attend, and at functions
    16  irrespective of attendance, which are directly related to the
    17  Philadelphia Commercial Museum or the Center for International
    18  Visitors: And provided further, That no such sale shall be made
    19  at any sporting, athletic or theatrical event.
    20     (h)  Whenever a contract is terminated prior to the
    21  expiration date provided in the contract between the city or
    22  authority and the concessionaire, the city or authority may
    23  select and certify to the [board] commission a different          <--
    24  concessionaire which concessionaire shall apply to the [board]    <--
    25  commission for a new license. If the applicant meets the
    26  requirements of the [board] commission as herein provided a new   <--
    27  license shall thereupon be issued.
    28     (i)  If any trade show and convention license is suspended,
    29  the offer in compromise shall be accepted at the same rate as
    30  provided for existing restaurant liquor licenses not in excess
    19870H1000B1864                 - 69 -

     1  of one hundred days. If any trade show and convention license is
     2  revoked, the [board] commission shall issue a new license to any  <--
     3  qualified applicant without regard to the prohibition in section
     4  471 against the grant of license at the same premises for a
     5  period of at least one year.
     6     Section 32.  Section 408.2 of the act, added November 25,
     7  1970 (P.L.770, No.255) and amended June 9, 1972 (P.L.379,
     8  No.108), is reenacted and amended to read:                        <--
     9     Section 408.2.  City-Owned Stadia.--(a)  The [board]           <--
    10  commission is authorized to issue a license in any city of the
    11  first class for the retail sale of liquor and malt or brewed
    12  beverages by the glass, open bottles or other container or in
    13  any mixture for consumption in any restaurant on city-owned
    14  premises principally utilized for competition of professional
    15  and amateur athletes and other types of entertainment where
    16  there is an available seating capacity within the premises of
    17  twelve thousand or more.
    18     (b)  The application for a city-owned stadium license may be
    19  filed at any time by a concessionaire selected and certified by
    20  the city or its authorized agency and shall conform with all
    21  requirements for restaurant-liquor licenses and applications
    22  except as may otherwise be provided herein. Applicant shall
    23  submit such other information as the [board] commission may       <--
    24  require. Applications shall be in writing on forms prescribed by
    25  the [board] commission and shall be signed and submitted to the   <--
    26  [board] commission by the applicant. The filing fee which shall   <--
    27  accompany the license application shall be twenty dollars ($20).
    28     (c)  Upon receipt of the application in proper form and the
    29  application fee and upon being satisfied that the applicant is
    30  of good repute and financially responsible and that the proposed
    19870H1000B1864                 - 70 -

     1  place of business is proper, the [board] commission shall issue   <--
     2  a license to the applicant.
     3     (d)  The license shall be issued for the same period of time
     4  as provided for restaurant licenses and shall be renewed as
     5  provided in section 402. The license shall terminate upon
     6  revocation by the [board] commission or upon termination of the   <--
     7  contract between the concessionaire and the city.
     8     (e)  The annual fee for a stadium license shall be six
     9  hundred dollars ($600), and shall accompany the application for
    10  the license. Whenever a concessionaire's contract terminates the
    11  license shall be returned to the [board] commission for           <--
    12  cancellation and a new license shall be issued to a new
    13  applicant.
    14     (f)  The penal sum of the bond which shall be filed by an
    15  applicant for a stadium license pursuant to section 465 of the
    16  "Liquor Code" shall be two thousand dollars ($2,000) and in
    17  addition thereto he shall file an additional bond in a sum to
    18  assure payment of any fine imposed by the [board] commission up   <--
    19  to one thousand dollars ($1,000).
    20     (g)  Sales by the holder of a stadium license may be made
    21  except to those persons prohibited under clause (1) of section
    22  493 of this act on city-owned premises customarily used or
    23  available for use for competition of professional and amateur
    24  athletes and other types of entertainment during the hours in
    25  which the entertainment is being held and up to one hour after
    26  the scheduled closing, and at functions which are incidental to
    27  or part of the stadium activities, but such sales may not be
    28  made beyond the hours expressed in the code for the sale of
    29  liquor by restaurant licensees: Provided, however, That such
    30  sales may be made on Sunday between the hours of twelve o'clock
    19870H1000B1864                 - 71 -

     1  noon and ten o'clock postmeridian: And provided further, That
     2  during the hours expressed in this act for the sale of liquor by
     3  hotel licensees, sales of such liquor or malt or brewed
     4  beverages may be made by said licensee at banquets, not
     5  incidental to stadium activities, at which more than two
     6  thousand persons are scheduled to attend, and at functions
     7  irrespective of attendance, which are directly related to stadia
     8  purposes.
     9     (h)  Whenever a contract is terminated prior to the
    10  expiration date provided in the contract between the city and
    11  the concessionaire, the city may select and certify to the
    12  [board] commission a different concessionaire which               <--
    13  concessionaire shall apply to the [board] commission for a new    <--
    14  license. If the applicant meets the requirements of the [board]   <--
    15  commission as herein provided a new license shall thereupon be
    16  issued. If any stadium license is revoked, the [board]            <--
    17  commission shall issue a new license to any qualified applicant
    18  without regard to the prohibition in section 471, against the
    19  grant of a license at the same premises for a period of at least
    20  one year.
    21     Section 33.  Section 408.3 of the act, amended December 16,
    22  1982 (P.L.1359, No.311), is reenacted and amended to read:
    23     Section 408.3.  Performing Arts Facilities.--(a)  The [board]  <--
    24  commission is authorized to issue a license to one nonprofit
    25  corporation operating a theater for the performing arts in each
    26  city of the first or second class which has seating
    27  accommodations for at least twenty-seven hundred persons except
    28  where prohibited by local option for the retail sale of liquor
    29  and malt or brewed beverages by the glass, open bottle or other
    30  container or in any mixture for consumption in any such theater
    19870H1000B1864                 - 72 -

     1  for the performing arts.
     2     (a.1)  The [board] commission is authorized to issue licenses  <--
     3  to operators of theaters for the performing arts, other than a
     4  theater qualifying under subsection (a), which are permanently
     5  located at a single site and which have seating accommodations,
     6  affixed to the theater structure, for at least twenty-eight
     7  hundred persons except where prohibited by local option for the
     8  retail sale of liquor and malt or brewed beverages by the glass,
     9  open bottle, or other container or in any mixture for
    10  consumption in any such theater for the performing arts.
    11     (A.2)  THE BOARD IS AUTHORIZED TO APPROVE THE TRANSFER OF A    <--
    12  RESTAURANT LICENSE TO ONE NONPROFIT CORPORATION OPERATING A
    13  THEATER FOR THE PERFORMING ARTS IN EACH CITY WHICH HAS A SEATING
    14  CAPACITY OF AT LEAST TWO HUNDRED FIFTY (250) PERSONS, EXCEPT
    15  WHERE PROHIBITED BY LOCAL OPTION, FOR THE RETAIL SALE OF LIQUOR
    16  AND MALT OR BREWED BEVERAGES BY THE GLASS, OPEN BOTTLE OR OTHER
    17  CONTAINER OR IN ANY MIXTURE FOR CONSUMPTION IN ANY SUCH THEATER
    18  FOR THE PERFORMING ARTS.
    19     (b)  The application for a performing arts facility license
    20  may be filed at any time by a nonprofit corporation operating
    21  such a theater for the performing arts or by a concessionaire
    22  selected by such nonprofit corporation and shall conform with
    23  all requirements for restaurant liquor licenses and applications
    24  except as may otherwise be provided herein. Applicant shall
    25  submit such other information as the [board] commission may       <--
    26  require. Applications shall be in writing on forms prescribed by
    27  the [board] commission and shall be signed and submitted to the   <--
    28  [board] commission by the applicant. The filing fee shall         <--
    29  accompany the license application.
    30     (b.1)  A performing arts facility referred to in subsection
    19870H1000B1864                 - 73 -

     1  (a.1) OR (A.2) must be in operation for a period of two (2)       <--
     2  years before it may file an application for a license. The
     3  application for a performing arts facility license may be filed
     4  at any time thereafter by the operator or a concessionaire
     5  selected by the operator of such theater for the performing arts
     6  and shall conform with all requirements for restaurant liquor
     7  licenses and applications except as may be otherwise provided
     8  herein. Applicants shall submit such other information as the
     9  [board] commission may require. Applications shall be in writing  <--
    10  on forms prescribed by the [board] commission and shall be        <--
    11  signed and submitted to the [board] commission by the applicant.  <--
    12  The filing fee shall accompany the license application.
    13     (b.2)  The filing fee which is prescribed in clause (19) of
    14  section 614-A of the act of April 9, 1929 (P.L.177, No.175),
    15  known as "The Administrative Code of 1929," shall accompany the
    16  license application filed under subsection (b) or (b.1).
    17     (c)  Upon receipt of the application in proper form and 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 [board] commission shall issue   <--
    21  a license to the applicant.
    22     (d)  The license shall be issued for the same period of time
    23  as provided for restaurant licenses and shall be renewed as
    24  provided in section 402. The license shall terminate upon
    25  revocation by the [board] commission or upon termination of the   <--
    26  contract between the concessionaire and the operator of such
    27  theater for the performing arts.
    28     (e)  The annual fee for a performing arts facility shall
    29  accompany the application for the license and shall be as
    30  prescribed in clause (19) of section 614-A of "The
    19870H1000B1864                 - 74 -

     1  Administrative Code of 1929." Whenever and if a concessionaire's
     2  contract terminates the license shall be returned to the [board]  <--
     3  commission for cancellation and a new license shall be issued to
     4  a new applicant.
     5     (f)  The penal sum of the bond which shall be filed by an
     6  applicant for a performing arts facility pursuant to section 465
     7  of the "Liquor Code" shall be two thousand dollars ($2,000).
     8     (g)  Sales by the holder of a performing arts facility
     9  license may be made except to those persons prohibited under
    10  clause (1) of section 493 of this act on the premises of such a
    11  theater for the performing arts during the hours expressed in
    12  the code for the sale of liquor and malt and brewed beverages by
    13  restaurant licensees, and the license may be used for such sales
    14  on Sundays between the hours of 1:00 P.M. and 10:00 P.M.,
    15  irrespective of the volume of food sales.
    16     (g.1)  Sales by the holder of a performing arts facility
    17  license referred to in subsection (a.1) shall be further
    18  restricted to the period of time beginning one (1) hour before
    19  and ending one (1) hour after any presentation at the performing
    20  arts facility.
    21     (h)  Whenever a contract with a concessionaire is terminated
    22  prior to the expiration date provided in the contract between
    23  such operator and the concessionaire, operator may select and
    24  certify to the [board] commission a different concessionaire      <--
    25  which concessionaire shall apply to the [board] commission for a  <--
    26  new license. If the applicant meets the requirements of the
    27  [board] commission as herein provided a new license shall         <--
    28  thereupon be issued. If any such performing arts facility
    29  license is revoked, the [board] commission shall issue a new      <--
    30  license to any qualified applicant without regard to the
    19870H1000B1864                 - 75 -

     1  prohibition in section 471, against the grant of a license at
     2  the same premises for a period of at least one (1) year.
     3     (i)  Licenses issued under the provisions of this section
     4  shall not be subject to the quota restrictions of section 461 of
     5  this act.
     6     (j)  Performing arts facility licenses referred to in
     7  subsection (a) shall not be subject to the provisions of section
     8  404 except in so far as they relate to the reputation of the
     9  applicant nor to the provisions of sections 461 and 463 nor to
    10  the provisions of clause (10) of section 493 of the "Liquor
    11  Code."
    12     (j.1)  Performing arts facilities referred to in subsection
    13  (a.1) shall not be subject to the provisions of section 463 nor
    14  to the provision requiring a special permit for dancing,
    15  theatricals or floor shows of any sort, or moving pictures other
    16  than television in clause (10) of section 493 of the "Liquor
    17  Code."
    18     (J.2)  PERFORMING ARTS THEATERS REFERRED TO IN SUBSECTION      <--
    19  (A.2) SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION 463, NOR
    20  TO THE PROVISION REQUIRING A SPECIAL PERMIT FOR DANCING,
    21  THEATRICALS OR FLOOR SHOWS OF ANY SORT, OR MOVING PICTURES OTHER
    22  THAN TELEVISION IN SECTION 493(10), NOR TO PROVISIONS DEFINING
    23  "RESTAURANT" IN SECTION 102.
    24     (k)  Sales under such licenses (including food sales) may be
    25  limited by the licensee to patrons of the events scheduled in
    26  the theater of the performing arts. Provided food is offered for
    27  sale when sales are made under the license, such food may be
    28  catered from off the premises.
    29     Section 34.  Section 408.4 of the act, amended July 11, 1980
    30  (P.L.558, No.117), July 9, 1984 (P.L.659, No.137) and July 3,
    19870H1000B1864                 - 76 -

     1  1985 (P.L.134, No.36), is reenacted and amended to read:
     2     Section 408.4.  Special Occasion Permits.--(a)  Upon
     3  application of any hospital, church, synagogue, volunteer fire
     4  company, VOLUNTEER AMBULANCE COMPANY, VOLUNTEER RESCUE SQUAD,     <--
     5  bona fide sportsmen's club in existence for at least ten years,   <--
     6  OR THE AUXILIARY OF ANY OF THE FOREGOING and upon payment of a
     7  fee of fifteen dollars ($15) per day, the [board] commission      <--
     8  shall issue a special occasion permit good for a period of not
     9  more than five consecutive [days] OR NONCONSECUTIVE DAYS:         <--
    10  PROVIDED, HOWEVER, THAT THE FIVE NONCONSECUTIVE DAYS SHALL BE
    11  USED IN A THREE-MONTH PERIOD MEASURED FROM THE DATE OF THE FIRST
    12  DAY. Special occasion permits may also be issued to a museum
    13  operated by a nonprofit corporation in a city of the third class
    14  or a nonprofit corporation engaged in the performing arts in a
    15  city of the third class for a period of not more than six
    16  nonconsecutive or ten consecutive days at a fee of fifteen
    17  dollars ($15) per day.
    18     (b)  In any city, borough, incorporated town or township in
    19  which the sale of liquor and/or malt or brewed beverages has
    20  been approved by the electorate, such special occasion permit
    21  shall authorize the permittee to sell liquor and/or malt or
    22  brewed beverages as the case may be to any adult person on any
    23  day for which the permit is issued.
    24     (c)  Such special occasion permit shall only be valid for the
    25  number of days stated in the permit. Only one permit may be
    26  issued to any permittee during the year. Provided, that a museum
    27  operated by a nonprofit corporation in a city of the third class
    28  and a nonprofit corporation engaged in the performing arts in a
    29  city of the third class may be issued no more than six permits
    30  during the year, each permit being valid for only one day, or in
    19870H1000B1864                 - 77 -

     1  the alternative, one permit valid for no more than a total of
     2  ten consecutive days per year, which may be issued only during
     3  the month of August. Notwithstanding this subsection, two         <--
     4  special occasion permits per calendar year may be issued to the
     5  same hospital, church, synagogue, volunteer fire company or bona
     6  fide sportsmen's club.
     7     (d)  Such permits shall only be issued for use at a special
     8  event including, but not limited to bazaars, picnics and
     9  clambakes. The special event must be one which is used by the
    10  permittee as a means of raising funds for itself.
    11     (d.1)  The hours during which the holder of a special
    12  occasion permit may sell liquor or malt or brewed beverages
    13  shall be limited to the hours set forth in section 406 which are
    14  applicable to hotel and restaurant licensees. The hours during
    15  which a nonprofit corporation engaged in the performing arts in
    16  a city of the third class may sell liquor or malt or brewed
    17  beverages pursuant to a special occasion permit shall be limited
    18  to those hours set forth in section 408.3(g.1).
    19     (d.2)  At least forty-eight hours prior to the sale of any
    20  liquor or malt or brewed beverages, the holder of a special
    21  occasion permit shall notify the local police department, or in
    22  the absence of a local police department, the Pennsylvania State
    23  Police, of the times when and place where the sale of liquor or
    24  malt or brewed beverages shall occur.
    25     (e)  The provisions of this section shall not be applicable
    26  to any licensee now or hereafter possessing a caterer's license,
    27  nor to any professional fund raiser.
    28     (f)  Any person selling liquor or malt or brewed beverages in
    29  violation of this section shall, upon summary conviction, be
    30  sentenced to pay a fine of two hundred fifty dollars ($250) for
    19870H1000B1864                 - 78 -

     1  the first offense and a fine of five hundred dollars ($500) for
     2  each subsequent offense. This fine shall be in addition to any
     3  other penalty imposed by law for the illegal sale of malt or
     4  brewed beverages.
     5     Section 35.  Section 408.5 of the act, amended July 9, 1976
     6  (P.L.527, No.125), is reenacted and amended to read:
     7     Section 408.5.  Licenses for City-owned Art Museums, Cities
     8  First Class [and]; Art Museums Maintained by Certain Non-profit   <--
     9  Corporations in Cities of the Second Class; AND NON-PROFIT        <--
    10  SCIENCE AND TECHNOLOGY MUSEUMS IN CITIES OF THE FIRST CLASS AND
    11  IN CITIES OF THE SECOND CLASS.--(a)  The [board] commission is    <--
    12  authorized to issue a license in any city of the first class for
    13  the retail sale of liquor and malt or brewed beverages by the
    14  glass, open bottles or other container, and in any mixture, for
    15  consumption in any city-owned art museum [or], in any art museum  <--
    16  maintained by a non-profit corporation in cities of the second
    17  class OR ANY NON-PROFIT SCIENCE AND TECHNOLOGY MUSEUM IN CITIES   <--
    18  OF THE FIRST CLASS OR IN CITIES OF THE SECOND CLASS. For the
    19  purpose of this section "non-profit corporation" shall mean a
    20  corporation organized under the non-profit corporation laws for
    21  the benefit of the public and not for the mutual benefit of its
    22  members, and which maintains an art museum OR A SCIENCE AND       <--
    23  TECHNOLOGY MUSEUM having a floor area of not less than one
    24  hundred thousand square feet in one building.
    25     (b)  The application for a license may be filed at any time
    26  by the city, the non-profit corporation or lessee. The
    27  application may also be filed by a concessionaire selected and
    28  certified by the city or the non-profit corporation. The
    29  application shall conform with all requirements for restaurant
    30  liquor licenses and applications except as may otherwise be
    19870H1000B1864                 - 79 -

     1  provided herein. Applicant shall submit such other information
     2  as the [board] commission may require. The application shall be   <--
     3  in writing on forms prescribed by the [board] commission and      <--
     4  shall be signed and submitted to the [board] commission by the    <--
     5  applicant. A filing fee of twenty dollars ($20) shall accompany
     6  the license application.
     7     (c)  Upon receipt of the application in proper form with the
     8  application fee and upon being satisfied that the applicant is
     9  of good repute and financially responsible and that the proposed
    10  place of business is proper, the [board] commission shall issue   <--
    11  a license to the applicant.
    12     (d)  The license shall be issued for the same period of time
    13  as provided for restaurant licensees and shall be renewed as
    14  provided in section 402. The license shall terminate upon
    15  revocation by the [board] commission or upon termination of the   <--
    16  lease or upon termination of the contract between the
    17  concessionaire and the city or the non-profit corporation.
    18     (g)  Sales by the holder of an art museum license OR SCIENCE   <--
    19  AND TECHNOLOGY LICENSE may be made except to those persons
    20  prohibited by this act on premises used for art museum OR         <--
    21  SCIENCE AND TECHNOLOGY purposes, but such sales may not be made
    22  beyond the hours expressed in this act for the sale of liquor by
    23  restaurant licenses. However, sales of liquor or malt or brewed
    24  beverages may be made by an art museum OR SCIENCE AND TECHNOLOGY  <--
    25  licensee at banquets at which more than five hundred persons are
    26  scheduled to attend and at any other function which is directly
    27  related to art museum OR SCIENCE AND TECHNOLOGY purposes.         <--
    28     (h)  Whenever a lease or a concession contract is terminated
    29  prior to the expiration date provided in the lease or contract
    30  between the city or the non-profit corporation and the tenant or
    19870H1000B1864                 - 80 -

     1  concessionaire, the city or the non-profit corporation may
     2  select and certify to the [board] commission a different          <--
     3  licensee or concessionaire who may then apply to the [board]      <--
     4  commission for a new license. If the applicant meets the
     5  requirements of the [board] commission as herein provided a new   <--
     6  license shall thereupon be issued.
     7     (i)  If the [board] commission shall revoke any art museum     <--
     8  license OR SCIENCE AND TECHNOLOGY LICENSE, the [board]            <--
     9  commission shall issue a new license to any qualified applicant
    10  without regard to the prohibition in section 471 against the
    11  grant of a license at the same premises for a period of at least
    12  one year.
    13     (i.1)  Any renewal of a license presently held by a city-
    14  owned art museum in a city of the first class shall be
    15  accomplished by the purchase of a license from an existing
    16  licensee.
    17     (i.2)  An art museum maintained by a non-profit corporation
    18  or corporations in a city of the second class which obtains
    19  approval of its application for a license from the [board]        <--
    20  commission shall purchase a license from an existing licensee.
    21     (j)  The provisions of this act shall supersede or exempt any
    22  provision of the Liquor Code which would prevent the issuance of
    23  a license for the retail sale of liquor and malt or brewed
    24  beverages upon any premises owned by the city of the first class
    25  or by a non-profit corporation in a city of the second class
    26  used for art museum purposes.
    27     Section 36.  Section 408.6 of the act, added July 11, 1980
    28  (P.L.558, No.117), is reenacted and amended to read:
    29     Section 408.6.  Performing Arts Facilities in Third Class
    30  Cities.--(a)  The [board] commission is authorized to issue a     <--
    19870H1000B1864                 - 81 -

     1  restaurant liquor license to a nonprofit corporation or to a
     2  concessionaire selected by such nonprofit corporation in any
     3  city of the third class for the retail sale of liquor and malt
     4  or brewed beverages by the glass, open bottles or other
     5  container or in any mixture for consumption on any city-owned
     6  premises utilized as a nonprofit performing arts facility or any
     7  other premises utilized as a nonprofit performing arts facility
     8  where there is an available seating capacity within the premises
     9  of one thousand 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 theater for the
    15  performing arts 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 performing arts facility.
    30     (d)  The license shall be issued for the same period of time
    19870H1000B1864                 - 82 -

     1  as provided for restaurant licenses and shall be renewed as
     2  provided in section 402. The license shall terminate upon
     3  revocation by the [board] commission or upon termination and      <--
     4  nonrenewal of the contract between the concessionaire and such
     5  nonprofit corporation.
     6     (e)  The annual fee for a performing arts facility shall be
     7  as provided in section 405 and shall accompany the application
     8  for the license. Whenever and if a concessionaire's contract
     9  terminates and is not renewed the license shall be returned to
    10  the [board] commission for cancellation but the [board]           <--
    11  commission may issue a restaurant liquor license to a subsequent
    12  applicant.
    13     (f)  The penal sum of the bond which shall be filed by an
    14  applicant for a performing arts facility pursuant to section 465
    15  shall be two thousand dollars ($2,000).
    16     (g)  Sales by the holder of a performing arts facility
    17  license may be made except to those persons prohibited under
    18  clause (1) of section 493 on [board-approved] commission-         <--
    19  approved service areas of the premises of such a facility for
    20  the performing arts during the hours in which the performance is
    21  being held and up to one hour before the scheduled opening and
    22  one hour after the scheduled closing, but such sales may not be
    23  made beyond the hours expressed in the code for the sale of
    24  liquor and malt or brewed beverages by restaurant licensees:
    25  Provided, however, That such sales may be made on Sunday between
    26  the hours of one o'clock postmeridian and ten o'clock
    27  postmeridian, irrespective of the volume of food sales.
    28     (h)  Whenever a contract with a concessionaire is terminated
    29  prior to the expiration date provided in the contract between
    30  such nonprofit corporation and the concessionaire and is not
    19870H1000B1864                 - 83 -

     1  renewed, such nonprofit corporation may apply to the [board]      <--
     2  commission for the issuance of a restaurant liquor license or
     3  may select and certify to the [board] commission a different      <--
     4  concessionaire which concessionaire shall apply to the [board]    <--
     5  commission for the issuance of a restaurant liquor license. If
     6  the applicant meets the requirements of the [board] commission    <--
     7  as herein provided, the issuance shall thereupon occur. If any
     8  such performing arts facility license is revoked, the [board]     <--
     9  commission shall issue a new license to any qualified applicant
    10  without regard to the prohibition in section 471, against the
    11  grant of a license at the same premises for a period of at least
    12  one year.
    13     (i)  Licenses issued under the provisions of this section
    14  shall not be subject to the quota restrictions of section 461.
    15     (j)  Performing arts licenses shall not be subject to the
    16  provisions of section 404 except insofar as they relate to the
    17  reputation of the applicant nor to the provisions of sections
    18  461 and 463, nor to the provisions of clause (10) of section
    19  493.
    20     (k)  Sales under such licenses (including food sales) may be
    21  limited by the licensee to patrons of the events scheduled in
    22  the facility of the performing arts. Provided food is offered
    23  for sale when sales are made under the license, such food may be
    24  catered from off the premises.
    25     Section 37.  Section 408.7 of the act, added December 12,
    26  1980 (P.L.1195, No.221), is reenacted and amended to read:
    27     Section 408.7.  Performing Arts Facilities in First and
    28  Second Class Cities.--(a)  The [board] commission is authorized   <--
    29  to transfer a restaurant liquor license purchased by any person
    30  or by a concessionaire selected by such person in any city of
    19870H1000B1864                 - 84 -

     1  the first or second class for the retail sale of liquor and malt
     2  or brewed beverages by the glass, open bottles or other
     3  container or in any mixture for consumption on any city-owned
     4  premises utilized as a performing arts facility or any other
     5  premise utilized as a performing arts facility where there is an
     6  available seating capacity within the premises of one thousand
     7  or more: Provided, however, That no sale or consumption of such
     8  beverages shall take place on any portions of such premises
     9  other than service areas approved by the [board] commission.      <--
    10     (b)  An application for transfer may be filed at any time by
    11  a person operating such a theater for the performing arts or by
    12  a concessionaire selected by such person. Any such license
    13  granted under these provisions need not conform to the
    14  requirements of the act relating to restaurant liquor licenses,
    15  except as provided herein. Applicant shall submit such other
    16  information as the [board] commission may require. Applications   <--
    17  shall be in writing on forms prescribed by the [board]            <--
    18  commission and shall be signed and submitted to the [board]       <--
    19  commission by the applicant. The filing fee which shall
    20  accompany the license transfer application shall be thirty
    21  dollars ($30).
    22     (c)  Upon receipt of the application in proper form and the
    23  application fee and upon being satisfied that the applicant is
    24  of good repute and financially responsible and that the proposed
    25  place of business is proper, the [board] commission shall         <--
    26  transfer the restaurant liquor license for the performing arts
    27  facility.
    28     (d)  The license shall be transferred for the same period of
    29  time as provided for restaurant licenses and shall be renewed as
    30  provided in section 402. The license shall terminate upon
    19870H1000B1864                 - 85 -

     1  revocation by the [board] commission or upon termination and      <--
     2  nonrenewal of the contract between the concessionaire and such
     3  person.
     4     (e)  The annual fee for a performing arts facility shall be
     5  as provided in section 405 and shall accompany the application
     6  for the license. Whenever and if a concessionaire's contract
     7  terminates and is not renewed the license shall be returned to
     8  the [board] commission for cancellation and the [board]           <--
     9  commission may transfer a restaurant liquor license purchased by
    10  a subsequent applicant.
    11     (f)  The penal sum of the bond which shall be filed by an
    12  applicant for a performing arts facility pursuant to section 465
    13  shall be two thousand dollars ($2,000).
    14     (g)  Sales by the holder of a performing arts facility
    15  license may be made except to those persons prohibited under
    16  clause (1) of section 493 on [board-approved] commission-         <--
    17  approved service areas of the premises of such a facility for
    18  the performing arts during the hours in which the performance is
    19  being held and up to one hour before the scheduled opening and
    20  one hour after the scheduled closing, but such sales may not be
    21  made beyond the hours expressed in the code for the sale of
    22  liquor and malt or brewed beverages by restaurant licensees:
    23  Provided, however, That such sales may be made on Sunday between
    24  the hours of one o'clock postmeridian and ten o'clock
    25  postmeridian, irrespective of the volume of food sales.
    26     (h)  Whenever a contract with a concessionaire is terminated
    27  prior to the expiration date provided in the contract between
    28  such person and the concessionaire and is not renewed, such
    29  person may apply to the [board] commission for the transfer of a  <--
    30  restaurant liquor license purchased by such person, or may
    19870H1000B1864                 - 86 -

     1  select and certify to the [board] commission a different          <--
     2  concessionaire which concessionaire shall apply to the [board]    <--
     3  commission for the transfer of a restaurant liquor license
     4  purchased by such concessionaire. If the applicant meets the
     5  requirements of the [board] commission as herein provided, a      <--
     6  transfer shall thereupon occur. If any such performing arts
     7  facility license is revoked, the [board] commission shall         <--
     8  transfer a license for any qualified applicant who has purchased
     9  a restaurant liquor license without regard to the prohibition in
    10  section 471, against the grant of a license at the same premises
    11  for a period of at least one year.
    12     (i)  Performing arts licenses shall not be subject to the
    13  provisions of section 404 except insofar as they relate to the
    14  reputation of the applicant nor to the provisions of section
    15  463, nor to the provisions of clause (10) of section 493.
    16     (j)  Sales under such licenses (including food sales) may be
    17  limited by the licensee to portions of the events scheduled in
    18  the facility of the performing arts. Provided food is offered
    19  for sale when sales are made under the license, such food may be
    20  catered from off the premises.
    21     Section 38.  Section 408.8 of the act, added December 17,
    22  1982 (P.L.1390, No.319), is reenacted and amended to read:        <--
    23     Section 408.8.  Trade Shows and Convention Licenses; Cities
    24  of the Third Class.--(a)  The [board] commission is authorized    <--
    25  to issue a restaurant liquor license to a nonprofit corporation
    26  or to a concessionaire selected by such nonprofit corporation in
    27  any city of the third class for the retail sale of liquor and
    28  malt or brewed beverages by the glass, open bottles or other
    29  container or in any mixture for consumption on any city-owned
    30  premises customarily used or available for use for trade shows
    19870H1000B1864                 - 87 -

     1  and conventions with a capacity within the premises for one
     2  thousand people or more: Provided, however, That no sale or
     3  consumption of such beverages shall take place on any portions
     4  of such premises other than service areas approved by the
     5  [board] commission.                                               <--
     6     (b)  An application for the issuance may be filed at any time
     7  by a nonprofit corporation operating such a facility for trade
     8  shows or conventions or by a concessionaire selected by such
     9  nonprofit corporation. Any such license granted under these
    10  provisions need not conform to the requirements of the act
    11  relating to restaurant liquor licenses, except as provided
    12  herein. Applicant shall submit such other information as the
    13  [board] commission may require. Applications shall be in writing  <--
    14  on forms prescribed by the [board] commission and shall be        <--
    15  signed and submitted to the [board] commission by the applicant.  <--
    16  The filing fee which shall accompany the license application
    17  shall be thirty dollars ($30).
    18     (c)  Upon receipt of the application in proper form and the
    19  application fee, and upon being satisfied that the applicant is
    20  of good repute and financially responsible and that the proposed
    21  place of business is proper, the [board] commission shall issue   <--
    22  the restaurant liquor license for the trade show or convention
    23  facility.
    24     (d)  The license shall be issued for the same period of time
    25  as provided for restaurant licenses and shall be renewed as
    26  provided in section 402. The license shall terminate upon
    27  revocation by the [board] commission or upon termination and      <--
    28  nonrenewal of the contract between the concessionaire and such
    29  nonprofit corporation.
    30     (e)  The annual fee for a trade show or convention facility
    19870H1000B1864                 - 88 -

     1  shall be as provided in section 405 and shall accompany the
     2  application for the license. Whenever and if a concessionaire's
     3  contract terminates and is not renewed, the license shall be
     4  returned to the [board] commission for cancellation but the       <--
     5  [board] commission may issue a restaurant liquor license to a     <--
     6  subsequent application.
     7     (f)  The penal sum of the bond which shall be filed by an
     8  applicant for a trade show or convention facility pursuant to
     9  section 465 shall be two thousand dollars ($2,000).
    10     (g)  Sales by the holder of a trade show or convention
    11  facility license may be made except to those persons prohibited
    12  under clause (1) of section 493 on [board-approved] commission-   <--
    13  approved service areas of the premises of such a facility for
    14  trade shows or conventions during the hours in which the trade
    15  show or convention is being held and up to one hour before the
    16  scheduled opening and one hour after the scheduled closing, but
    17  such sales may not be made beyond the hours expressed in the
    18  code for the sale of liquor and malt or brewed beverages by
    19  restaurant licensees: Provided, however, That such sales may be
    20  made on Sunday between the hours of one o'clock postmeridian and
    21  ten o'clock postmeridian, irrespective of the volume of food
    22  sales.
    23     (h)  Whenever a contract with a concessionaire is terminated
    24  prior to the expiration date provided in the contract between
    25  such nonprofit corporation and the concessionaire and is not
    26  renewed, such nonprofit corporation may apply to the [board]      <--
    27  commission for the issuance of a restaurant liquor license or
    28  may select and certify to the [board] commission a different      <--
    29  concessionaire which concessionaire shall apply to the [board]    <--
    30  commission for issuance of a restaurant liquor license. If the
    19870H1000B1864                 - 89 -

     1  applicant meets the requirements of the [board] commission as     <--
     2  herein provided, the issuance shall thereupon occur. If any such
     3  trade show or convention license is revoked, the [board]          <--
     4  commission shall issue a new license to any qualified applicant
     5  without regard to the prohibition in section 471 against the
     6  grant of a license at the same premises for a period of at least
     7  one year.
     8     (i)  Licenses issued under the provisions of this section
     9  shall not be subject to the quota restrictions of section 461.
    10     (j)  Trade show or convention licenses shall not be subject
    11  to the provisions of section 404 except insofar as they relate
    12  to the reputation of the applicant nor to the provisions of
    13  sections 461 and 463 nor to the provisions of clause (10) of
    14  section 493.
    15     (k)  Sales under such licenses (including food sales) may be
    16  limited by the licensee to patrons of the events scheduled in
    17  the facility for trade shows or conventions. Provided food is
    18  offered for sale when sales are made under the license, such
    19  food may be catered from off the premises.
    20     Section 39.  Section 408.9 of the act, added May 9, 1984
    21  (P.L.246, No.54), is reenacted and amended to read:               <--
    22     Section 408.9.  Stadium and Restaurant Licenses in Third
    23  Class Cities.--The [board] commission is authorized to issue one  <--
    24  restaurant license in any city of the third class for the retail
    25  sale of liquor and malt or brewed beverages by the glass, open
    26  bottles or other containers, and in any mixture, for consumption
    27  in any restaurant which is located not more than one thousand
    28  feet from a stadium which has a seating capacity of five
    29  thousand persons, situate on the same lot or parcel of land not
    30  less than twenty-five acres in size with no intervening public
    19870H1000B1864                 - 90 -

     1  thoroughfare between the restaurant and the stadium.
     2     Section 40.  Section 409 of the act, amended February 17,
     3  1956 (1955 P.L.1078, No.349) and September 28, 1961 (P.L.1728,
     4  No.702), is reenacted and amended to read:                        <--
     5     Section 409.  Sacramental Wine Licenses; Fees; Privileges;
     6  Restrictions.--(a)  Subject to the provisions of this act in
     7  general and more particularly to the following provisions of
     8  this section, the [board] commission shall issue sacramental      <--
     9  wine licenses to qualified applicants.
    10     (b)  Every applicant for a sacramental wine license shall
    11  file a written application with the [board] commission in such    <--
    12  form as the [board] commission shall from time to time            <--
    13  prescribe, which shall be accompanied by a filing fee of twenty
    14  dollars ($20), a license fee of one hundred dollars, and a bond
    15  as hereinafter prescribed. Every such application shall contain
    16  a description of the premises for which the applicant desires a
    17  license and shall set forth such other material information as
    18  may be required by the [board] commission.                        <--
    19     (c)  If the applicant is a natural person, his application
    20  must show that he is a citizen of the United States and a
    21  resident of this Commonwealth. If the applicant is an
    22  association or partnership, each and every member of the
    23  association or partnership must be a citizen of the United
    24  States and a resident of this Commonwealth. If the applicant is
    25  a corporation, the application must show that the corporation
    26  was created under the laws of Pennsylvania or holds a
    27  certificate of authority to transact business in Pennsylvania,
    28  and that all officers, directors and stockholders are citizens
    29  of the United States.
    30     (d)  Holders of such licenses may purchase from manufacturers
    19870H1000B1864                 - 91 -

     1  or bring or import into this Commonwealth wine to be used for
     2  sacramental or religious purposes only, and bottle and sell the
     3  same to priests, clergymen and rabbis for use in the cathedral,
     4  church, synagogue or temple, or for sustaining members of the
     5  congregation or members of the faith who attend religious
     6  services, duly certified by such priests, clergymen or rabbis.
     7  The sale and use of wine for sacramental or religious purposes
     8  shall be subject to and in accordance with the regulations of
     9  the [board] commission.                                           <--
    10     (e)  Any wine purchased under the authority of this section
    11  shall not be used for any other than sacramental or religious
    12  purposes. Sacramental wine may not be sold by any person except
    13  the holder of a sacramental wine license.
    14     (f)  Every sacramental wine licensee shall maintain on the
    15  licensed premises such records as the [board] commission may      <--
    16  prescribe. No deliveries of sacramental wine shall be made
    17  unless and until an order therefor is on file at the principal
    18  place of business in Pennsylvania. All shipments into
    19  Pennsylvania of wine to be used for sacramental or religious
    20  purposes shall be consigned to the principal place of business
    21  maintained by the licensee.
    22     (g)  Any such license may be suspended or revoked by the
    23  [board] commission upon proof satisfactory to it that the         <--
    24  licensee has violated any law of this Commonwealth or any
    25  regulation of the [board] commission relating to liquor and       <--
    26  alcohol. The procedure in such cases shall be the same as for
    27  the revocation and suspension of hotel, restaurant and club
    28  licenses.
    29     Section 41.  Section 410 of the act, amended September 28,
    30  1961 (P.L.1728, No.702), is reenacted and amended to read:
    19870H1000B1864                 - 92 -

     1     Section 410.  Liquor Importers' Licenses; Fees; Privileges;
     2  Restrictions.--(a)  Subject to the provisions of this act in
     3  general and more particularly to the following provisions of
     4  this section, the [board] commission shall issue liquor           <--
     5  importers' licenses to qualified applicants.
     6     (b)  Every applicant for an importer's license shall file a
     7  written application with the [board] commission in such form as   <--
     8  the [board] commission shall from time to time prescribe, which   <--
     9  shall be accompanied by a filing fee of twenty dollars ($20), a
    10  license fee of one hundred dollars, and a bond as hereinafter
    11  required. Every such application shall contain a description of
    12  the principal place of business for which the applicant desires
    13  a license and shall set forth such other material information as
    14  may be required by the [board] commission.                        <--
    15     (c)  The holder of an importer's license may have included in
    16  such license one warehouse wherein only his liquor may be kept
    17  and stored, located in the same municipality in which his
    18  licensed premises is situate, and not elsewhere, unless such
    19  licensee secures from the [board] commission a license for each   <--
    20  additional storage warehouse desired. The [board] commission is   <--
    21  authorized and empowered to issue to a holder of an importer's
    22  license a license for an additional storage warehouse or
    23  warehouses located in this Commonwealth, provided such licensed
    24  importer files with the [board] commission a separate             <--
    25  application for each warehouse in such form and containing such
    26  information as the [board] commission may from time to time       <--
    27  require, accompanied by a filing fee of twenty dollars ($20), a
    28  license fee of twenty-five dollars, and a bond of an approved
    29  surety company in the amount of ten thousand dollars. Such bond
    30  shall contain the same provisions and conditions as are required
    19870H1000B1864                 - 93 -

     1  in the other license bonds under this article.
     2     (d)  If the applicant is a natural person, his application
     3  must show that he is a citizen of the United States and a
     4  resident of this Commonwealth. If the applicant is an
     5  association or partnership, each and every member of the
     6  association or partnership must be a citizen of the United
     7  States and a resident of this Commonwealth. If the applicant is
     8  a corporation, the application must show that the corporation
     9  was created under the laws of Pennsylvania or holds a
    10  certificate of authority to transact business in Pennsylvania,
    11  and that all officers, directors and stockholders are citizens
    12  of the United States.
    13     (e)  Importers' licenses shall permit the holders thereof to
    14  bring or import liquor from other states, foreign countries, or
    15  insular possessions of the United States, and purchase liquor
    16  from manufacturers located within this Commonwealth, to be sold
    17  outside of this Commonwealth or to Pennsylvania Liquor Stores
    18  within this Commonwealth, or when in original containers of ten
    19  gallons or greater capacity, to licensed manufacturers within
    20  this Commonwealth.
    21     All importations of liquor into Pennsylvania by the licensed
    22  importer shall be consigned to the [Pennsylvania Liquor Control
    23  Board] commission BOARD or the principal place of business or     <--
    24  authorized place of storage maintained by the licensee.
    25     (f)  Every importer shall maintain on the licensed premises
    26  such records as the [board] commission may prescribe. Any such    <--
    27  license may be suspended or revoked by the [board] commission     <--
    28  upon proof satisfactory to it that the licensee has violated any
    29  law of this Commonwealth or any regulation of the [board]         <--
    30  commission relating to liquor and alcohol. The procedure in such
    19870H1000B1864                 - 94 -

     1  cases shall be the same as for the revocation and suspension of
     2  hotel, restaurant and club licenses.
     3     Section 42.  Section 411 of the act, amended July 9, 1976
     4  (P.L.963, No.188), is reenacted to read:
     5     Section 411.  Interlocking Business Prohibited.--(a)  No
     6  manufacturer and no officer or director of any manufacturer
     7  shall at the same time be a holder of a hotel, restaurant or
     8  club liquor license, nor be the owner, proprietor or lessor of
     9  any place covered by any hotel, restaurant or club liquor
    10  license.
    11     (b)  No manufacturer, importer or sacramental wine licensee,
    12  and no officer or director of a manufacturer, importer or
    13  sacramental wine licensee shall own any stock or have any
    14  financial interest in any hotel or restaurant licensed under
    15  this act.
    16     (c)  Excepting as herein provided, no manufacturer, or
    17  officer, director, stockholder, agent or employe of a
    18  manufacturer shall in any wise be interested, either directly or
    19  indirectly, in the ownership or leasehold of any property or the
    20  equipment of any property or any mortgage lien against the same,
    21  for which a hotel, restaurant or club license is granted; nor
    22  shall a manufacturer, importer or sacramental wine licensee, or
    23  officer, director, stockholder, agent or employe of a
    24  manufacturer, importer or sacramental wine licensee, either
    25  directly or indirectly, lend any moneys, credit, or give
    26  anything of value or the equivalent thereof to, or guarantee the
    27  payment of any bond, mortgage, note or other obligation of, any
    28  hotel, restaurant or club licensee, his servant, agent or
    29  employe, for equipping, fitting out, or maintaining and
    30  conducting, either in whole or in part, a hotel, restaurant or
    19870H1000B1864                 - 95 -

     1  club licensed for the selling of liquor for use and consumption
     2  upon the premises.
     3     (d)  Excepting as herein provided, no hotel licensee,
     4  restaurant licensee or club licensee, and no officer, director,
     5  stockholder, agent or employe of any such licensee shall in any
     6  wise be interested, either directly or indirectly, in the
     7  ownership or leasehold of any property or the equipment of any
     8  property or any mortgage lien against the same, used by a
     9  manufacturer in manufacturing liquor or malt or brewed
    10  beverages; nor shall any hotel, restaurant or club licensee, or
    11  any officer, director, stockholder, agent or employe of any such
    12  licensee, either directly or indirectly, lend any moneys,
    13  credit, or give anything of value or the equivalent thereof, to
    14  any manufacturer for equipping, fitting out, or maintaining and
    15  conducting, either in whole or in part, an establishment used
    16  for the manufacture of liquor or malt or brewed beverages.
    17     (e)  Except as herein provided, no hotel, restaurant, retail
    18  dispenser or club licensee, and no officer, director or
    19  stockholder, agent or employe of any such licensee shall in any
    20  wise be interested, directly or indirectly, in the ownership or
    21  leasehold of any property or the equipment of any property or
    22  any mortgage lien against the same, used by a distributor,
    23  importing distributor, or by an importer or sacramental wine
    24  licensee, in the conduct of his business; nor shall any hotel,
    25  restaurant, retail dispenser or club licensee, or any officer,
    26  director, stockholder, agent or employe of any such licensee,
    27  either directly or indirectly, lend any moneys, credit, or give
    28  anything of value or the equivalent thereof, to any distributor,
    29  importing distributor, importer or sacramental wine licensee,
    30  for equipping, fitting out, or maintaining and conducting,
    19870H1000B1864                 - 96 -

     1  either in whole or in part, an establishment used in the conduct
     2  of his business.
     3     The purpose of this section is to require a separation of the
     4  financial and business interests between manufacturers and
     5  holders of hotel or restaurant liquor licenses and, as herein
     6  provided, of club licenses, issued under this article, and no
     7  person shall, by any device whatsoever, directly or indirectly,
     8  evade the provisions of the section. But in view of existing
     9  economic conditions, nothing contained in this section shall be
    10  construed to prohibit the ownership of property or conflicting
    11  interest by a manufacturer of any place occupied by a licensee
    12  under this article after the manufacturer has continuously owned
    13  and had a conflicting interest in such place for a period of at
    14  least five years prior to July eighteenth, one thousand nine
    15  hundred thirty-five: Provided, however, That this clause shall
    16  not prohibit any hotel, restaurant or club liquor licensee from
    17  owning land which is leased to, and the buildings thereon owned
    18  by, a holder of a retail dispenser's license; and nothing in
    19  this clause shall prevent the issuance of a retail dispenser's
    20  license to a lessee of such lands who owns the buildings
    21  thereon: And, provided further, That nothing contained in this
    22  section shall be construed to prohibit any hotel, restaurant,
    23  retail dispenser or club licensee or any officer, director or
    24  stockholder, agent or employe of any such licensee from having a
    25  financial or other interest, directly or indirectly in the
    26  ownership or leasehold of any property or the equipment of any
    27  property or any mortgage lien against same, used, leased by an
    28  importer or sacramental wine licensee for the exclusive purpose
    29  of maintaining commercial offices and on the condition that said
    30  property is not used for the storage or sale of liquor or malt
    19870H1000B1864                 - 97 -

     1  or brewed beverages in any quantity.
     2     Section 43.  The heading of Subdivision (B) of Article IV of
     3  the act is reenacted to read:
     4     (B)  Malt and Brewed Beverages (Including Manufacturers).
     5     Section 44.  Section 431 of the act, amended August 17, 1965
     6  (P.L.346, No.182), October 9, 1967 (P.L.395, No.179), May 5,
     7  1970 (P.L.342, No.110) and June 22, 1980 (P.L.253, No.73), is
     8  reenacted and amended to read:
     9     Section 431.  Malt and Brewed Beverages Manufacturers',
    10  Distributors' and Importing Distributors' Licenses.--(a)  The
    11  [board] commission shall issue to any person a resident of this   <--
    12  Commonwealth of good repute who applies therefor, pays the
    13  license fee hereinafter prescribed, and files the bond
    14  hereinafter required, a manufacturer's license to produce and
    15  manufacture malt or brewed beverages, and to transport, sell and
    16  deliver malt or brewed beverages at or from one or more places
    17  of manufacture or storage, only in original containers, in
    18  quantities of not less than a case of twenty-four containers,
    19  each container holding seven fluid ounces or more, or a case of
    20  twelve containers, each container holding twenty-four fluid
    21  ounces or more, except original containers containing one
    22  hundred twenty-eight ounces or more which may be sold separately
    23  anywhere within the Commonwealth. Licenses for places of storage
    24  shall be limited to those maintained by manufacturers on July
    25  eighteenth, one thousand nine hundred thirty-five, and the
    26  [board] commission shall issue no licenses for places of storage  <--
    27  in addition to those maintained on July eighteenth, one thousand
    28  nine hundred thirty-five. The application for such license shall
    29  be in such form and contain such information as the [board]       <--
    30  commission shall require. All such licenses shall be granted for
    19870H1000B1864                 - 98 -

     1  the calendar year. Every manufacturer shall keep at his or its
     2  principal place of business, within the Commonwealth daily
     3  permanent records which shall show, (1) the quantities of raw
     4  materials received and used in the manufacture of malt or brewed
     5  beverages and the quantities of malt or brewed beverages
     6  manufactured and stored, (2) the sales of malt or brewed
     7  beverages, (3) the quantities of malt or brewed beverages stored
     8  for hire or transported for hire by or for the licensee, and (4)
     9  the names and addresses of the purchasers or other recipients
    10  thereof. Every place licensed as a manufacturer shall be subject
    11  to inspection by members of the [board] commission or by persons  <--
    12  duly authorized and designated by the [board] commission, at any  <--
    13  and all times of the day or night, as they may deem necessary,
    14  for the detection of violations of this act or of the rules and
    15  regulations of the [board] commission, or for the purpose of      <--
    16  ascertaining the correctness of the records required to be kept
    17  by licensees. The books and records of such licensees shall at
    18  all times be open to inspection by members of the [board]         <--
    19  commission or by persons duly authorized and designated by the
    20  [board] commission. Members of the [board] commission and its     <--
    21  duly authorized agents shall have the right, without hindrance,
    22  to enter any place which is subject to inspection hereunder or
    23  any place where such records are kept for the purpose of making
    24  such inspections and making transcripts thereof.
    25     (b)  The [board] commission shall issue to any reputable       <--
    26  person who applies therefor, pays the license fee hereinafter
    27  prescribed, and files the bond hereinafter required, a
    28  distributor's or importing distributor's license for the place
    29  which such person desires to maintain for the sale of malt or
    30  brewed beverages, not for consumption on the premises where
    19870H1000B1864                 - 99 -

     1  sold, and in quantities of not less than twenty-four containers,
     2  each container holding seven fluid ounces or more, or twelve
     3  containers, each container holding twenty-four fluid ounces or
     4  more, except original containers containing one hundred twenty-
     5  eight ounces or more which may be sold separately and such
     6  containers to be the original containers as prepared for the
     7  market by the manufacturer at the place of manufacture[: And
     8  provided further, That the board]. Additionally, a distributor    <--
     9  may sell a quantity of 24 containers, all of the same unit size,
    10  but containing different brands of malt or brewed beverages,
    11  mixed in unit combinations of six of the same brand. The
    12  commission BOARD shall have the discretion to refuse a license    <--
    13  to any person or to any corporation, partnership or association
    14  if such person, or any officer or director of such corporation,
    15  or any member or partner of such partnership or association
    16  shall have been convicted or found guilty of a felony within a
    17  period of five years immediately preceding the date of
    18  application for the said license[.]: And provided further, That
    19  in the case of any new license or the transfer of any license to
    20  a new location the commission BOARD may, in its discretion,       <--
    21  grant or refuse such new license or transfer if such place
    22  proposed to be licensed is within three hundred feet of any
    23  church, hospital, charitable institution, school or public
    24  playground, or if such new license or transfer is applied for a
    25  place which is within two hundred feet of any other premises
    26  which is licensed by the commission, or if such new license or    <--
    27  transfer is applied for a place where the principal business is
    28  the sale of liquid fuels and oil BOARD: And provided further,     <--
    29  That the commission BOARD shall refuse any application for a new  <--
    30  license or the transfer of any license to a new location if, in
    19870H1000B1864                 - 100 -

     1  the commission's BOARD'S opinion, such new license or transfer    <--
     2  would be detrimental to the welfare, health, peace and morals of
     3  the inhabitants of the neighborhood within a radius of five
     4  hundred feet of the place proposed to be licensed. THE BOARD      <--
     5  SHALL REFUSE ANY APPLICATION FOR A NEW LICENSE OR THE TRANSFER
     6  OF ANY LICENSE TO A LOCATION WHERE THE SALE OF LIQUID FUELS OR
     7  OIL IS CONDUCTED. The commission BOARD shall require notice to    <--
     8  be posted on the property or premises upon which the licensee or
     9  proposed licensee will engage in sales of malt or brewed
    10  beverages. This notice shall be similar to the notice required
    11  of hotel, restaurant and club liquor licensees.
    12     Except as hereinafter provided, such license shall authorize
    13  the holder thereof to sell or deliver malt or brewed beverages
    14  in quantities above specified anywhere within the Commonwealth
    15  of Pennsylvania, which, in the case of distributors, have been
    16  purchased only from persons licensed under this act as
    17  manufacturers or importing distributors, and in the case of
    18  importing distributors, have been purchased from manufacturers
    19  or persons outside this Commonwealth engaged in the legal sale
    20  of malt or brewed beverages or from manufacturers or importing
    21  distributors licensed under this article.
    22     Each out of State manufacturer of malt or brewed beverages
    23  whose products are sold and delivered in this Commonwealth shall
    24  give distributing rights for such products in designated
    25  geographical areas to specific importing distributors, and such
    26  importing distributor shall not sell or deliver malt or brewed
    27  beverages manufactured by the out of State manufacturer to any
    28  person issued a license under the provisions of this act whose
    29  licensed premises are not located within the geographical area
    30  for which he has been given distributing rights by such
    19870H1000B1864                 - 101 -

     1  manufacturer. SHOULD A LICENSEE ACCEPT THE DELIVERY OF SUCH MALT  <--
     2  OR BREWED BEVERAGES IN VIOLATION OF THIS SECTION, SAID LICENSEE
     3  SHALL BE SUBJECT TO A SUSPENSION OF HIS LICENSE FOR AT LEAST
     4  THIRTY DAYS: Provided, That the importing distributor holding
     5  such distributing rights for such product shall not sell or
     6  deliver the same to another importing distributor without first
     7  having entered into a written agreement with the said secondary
     8  importing distributor setting forth the terms and conditions
     9  under which such products are to be resold within the territory
    10  granted to the primary importing distributor by the
    11  manufacturer.
    12     When a Pennsylvania manufacturer of malt or brewed beverages
    13  licensed under this article names or constitutes a distributor
    14  or importing distributor as the primary or original supplier of
    15  his product, he shall also designate the specific geographical
    16  area for which the said distributor or importing distributor is
    17  given distributing rights, and such distributor or importing
    18  distributor shall not sell or deliver the products of such
    19  manufacturer to any person issued a license under the provisions
    20  of this act whose licensed premises are not located within the
    21  geographical area for which distributing rights have been given
    22  to the distributor and importing distributor by the said
    23  manufacturer: Provided, That the importing distributor holding
    24  such distributing rights for such product shall not sell or
    25  deliver the same to another importing distributor without first
    26  having entered into a written agreement with the said secondary
    27  importing distributor setting forth the terms and conditions
    28  under which such products are to be resold within the territory
    29  granted to the primary importing distributor by the
    30  manufacturer. Nothing herein contained shall be construed to
    19870H1000B1864                 - 102 -

     1  prevent any manufacturer from authorizing the importing
     2  distributor holding the distributing rights for a designated
     3  geographical area from selling the products of such manufacturer
     4  to another importing distributor also holding distributing
     5  rights from the same manufacturer for another geographical area,
     6  providing such authority be contained in writing and a copy
     7  thereof be given to each of the importing distributors so
     8  affected.
     9     (B.1)  (1)  ANY PERSON IN THIS COMMONWEALTH OR ELSEWHERE WHO   <--
    10  SHALL PURCHASE OR IN ANY MANNER WHATSOEVER ACQUIRE OR OTHERWISE
    11  SUCCEED TO THE BUSINESS OF A MANUFACTURER, ASSETS OR RIGHTS TO
    12  IMPORT, MARKET, SHIP INTO THIS COMMONWEALTH OR DISTRIBUTE A
    13  BRAND OF BEER, OR TO USE AND EXPLOIT ANY TRADEMARK INCORPORATED
    14  AS PART OF A BRAND OF BEER PRODUCED BY SUCH A MANUFACTURER SHALL
    15  BE OBLIGATED TO ALL TERMS OF THE MANUFACTURER'S FRANCHISE
    16  AGREEMENTS IN EFFECT ON THE EFFECTIVE DATE OF THE PURCHASE,
    17  ACQUISITION OR SUCCESSION, OR, IF EARLIER, AT THE TIME THE
    18  AGREEMENT CONTEMPLATING THE PURCHASE, ACQUISITION OR SUCCESSION
    19  IS ACTUALLY MADE.
    20     (2)  "PURCHASE" OR "ACQUISITION," FOR PURPOSES OF THIS
    21  SECTION, INCLUDES, BUT IS NOT LIMITED TO, A PURCHASE,
    22  ACQUISITION, LEASE, LICENSE OR ASSIGNMENT OF ALL OR A
    23  CONTROLLING INTEREST IN THE CAPITAL STOCK OR OPERATING ASSETS,
    24  INCLUDING BRAND TRADEMARKS RIGHTS; MERGER; ANY CORPORATE
    25  REORGANIZATION OR CONSOLIDATION; AND ALSO, WITHOUT LIMITATION,
    26  ANY LICENSE, CROSS-LICENSE, JOINT VENTURE OR OTHER AGREEMENT OR
    27  ARRANGEMENT, DIRECTLY OR INDIRECTLY, TRANSFERRING, SUBSTITUTING
    28  OR MATERIALLY CHANGING THE PERSON OR PERSON AUTHORIZED BY THE
    29  ONE OWNING OR CONTROLLING A BRAND OR ANY TRADEMARK AS PART OF A
    30  BRAND, TO PRODUCE, IMPORT, SHIP, MARKET OR DISTRIBUTE THE BRAND
    19870H1000B1864                 - 103 -

     1  OF BEER INTO OR WITHIN THIS COMMONWEALTH.
     2     (3)  "MANUFACTURER" AS USED IN THIS SUBSECTION SHALL MEAN ANY
     3  PERSON, INCLUDING ANY AGENT OF SUCH PERSON, WHO (I) IS LICENSED
     4  AS A MANUFACTURER OF MALT OR BREWED BEVERAGES LOCATED WITHIN THE
     5  COMMONWEALTH OF PENNSYLVANIA, (II) HOLDS A DISTRIBUTOR OR
     6  IMPORTING DISTRIBUTOR LICENSE, OR (III) MANUFACTURES ANY MALT
     7  BEVERAGE, HAS TITLE TO ANY MALT BEVERAGE PRODUCTS OR HAS THE
     8  CONTRACTUAL RIGHT TO DISTRIBUTE ANY MALT BEVERAGE PRODUCT,
     9  WHETHER LICENSED IN THIS COMMONWEALTH OR NOT, WHO ENTERS INTO AN
    10  "AGREEMENT" WITH ANY IMPORTING DISTRIBUTOR LICENSED TO DO
    11  BUSINESS IN THIS COMMONWEALTH.
    12     (c)  The aforesaid licenses shall be issued only to reputable
    13  individuals, partnerships and associations who are, or whose
    14  members are, citizens of the United States and have for two
    15  years prior to the date of their applications been residents of
    16  the Commonwealth of Pennsylvania or to reputable corporations
    17  organized or duly registered under the laws of the Commonwealth
    18  of Pennsylvania. Such licenses shall be issued to corporations
    19  duly organized or registered under the laws of the Commonwealth
    20  of Pennsylvania only when it appears that all of the officers
    21  and directors of the corporation are citizens of the United
    22  States and have been residents of the Commonwealth of
    23  Pennsylvania for a period of at least two years prior to the
    24  date of application, and that at least fifty-one per centum of
    25  the capital stock of such corporation is actually owned by
    26  individuals who are citizens of the United States and have been
    27  residents of the Commonwealth of Pennsylvania for a period of at
    28  least two years prior to the date of application: Provided, That
    29  the provisions of this subsection with respect to residence
    30  requirements shall not apply to individuals, partners, officers,
    19870H1000B1864                 - 104 -

     1  directors and owners of capital stock, of corporations licensed
     2  or applying for licenses as manufacturers of malt or brewed
     3  beverages, nor shall the provisions of this subsection with
     4  respect to stockholder requirements apply to corporations
     5  licensed or applying for licenses as manufacturers of malt or
     6  brewed beverages.
     7     (d)  (1)  All distributing rights as hereinabove required
     8  shall be in writing, shall be equitable in their provisions and
     9  shall be substantially similar as to terms and conditions with
    10  all other distributing rights agreements between the
    11  manufacturer giving such agreement and its other importing
    12  distributors and distributors shall not be modified, cancelled,
    13  terminated or rescinded by the manufacturer without good cause,
    14  and shall contain a provision in substance or effect as follows:
    15  "The manufacturer recognizes that the importing distributor and
    16  distributor are free to manage their business in the manner the
    17  importing distributor and distributor deem best and that this
    18  prerogative vests in the importing distributor and distributor
    19  the exclusive right to establish a selling price, to select the
    20  brands of malt or brewed beverages they wish to handle and to
    21  determine the efforts and resources which the importing
    22  distributor and distributor will exert to develop and promote
    23  the same of the manufacturer's products handled by the importing
    24  distributor and distributor. However, the manufacturer expects
    25  that the importing distributor and distributor will price
    26  competitively the products handled by them, devote reasonable
    27  effort and resources to the sale of such products and maintain a
    28  reasonable sales level." "Good cause" shall mean the failure by
    29  any party to an agreement, without reasonable excuse or
    30  justification, to comply substantially with an essential,
    19870H1000B1864                 - 105 -

     1  reasonable and commercially acceptable requirement imposed by
     2  the other party under the terms of an agreement.
     3     (2)  After January 1, 1980, no manufacturer shall enter into
     4  any agreement with more than one distributor or importing
     5  distributor for the purpose of establishing more than one
     6  agreement for designated brand or brands of malt or brewed
     7  beverages in any one territory. Each franchise territory which
     8  is granted by a manufacturer shall be geographically contiguous.
     9     (3)  Except for discontinuance of a brand or a valid
    10  termination for good cause, the purchaser of the assets of the
    11  manufacturer as defined in this act shall become obligated to
    12  all the territorial and brand designations of the agreement in
    13  effect on the date of purchase. Purchase of assets as defined
    14  for the purposes of this act shall include, but not be limited
    15  to, the sale of stock, sale of assets, merger, lease, transfer
    16  or consolidation.
    17     (4)  The court of common pleas of the county wherein the
    18  licensed premises of the importing distributor or distributor
    19  are located is hereby vested with jurisdiction and power to
    20  enjoin the modification, rescission, cancellation or termination
    21  of a franchise or agreement between a manufacturer and an
    22  importing distributor or distributor at the instance of such
    23  importing distributor or distributor who is or might be
    24  adversely affected by such modification, rescission,
    25  cancellation or termination, and in granting an injunction the
    26  court shall provide that no manufacturer shall supply the
    27  customers or territory of the importing distributor or
    28  distributor by servicing the territory or customers through
    29  other importing distributors or distributors or any other means
    30  while the injunction is in effect: Provided, however, That any
    19870H1000B1864                 - 106 -

     1  injunction issued under this subsection shall require the
     2  posting of sufficient bond against damages arising from an
     3  injunction improvidently granted and a showing that the danger
     4  of irrevocable loss or damage is immediate and that during the
     5  pendency of such injunction the importing distributor or
     6  distributor shall continue to service the accounts of the
     7  manufacturer in good faith.
     8     (5)  The provisions of this subsection shall not apply to
     9  Pennsylvania manufacturers whose principal place of business is
    10  located in Pennsylvania unless they name or constitute a
    11  distributor or importing distributor as a primary or original
    12  supplier of their products subsequent to the effective date of
    13  this act, or unless such Pennsylvania manufacturers have named
    14  or constituted a distributor or importing distributor as a
    15  primary or original supplier of their products prior to the
    16  effective date of this act, and which status is continuing when
    17  this act becomes effective.
    18     Section 45.  Section 432 of the act, amended January 19, 1952
    19  (1951 P.L.2170, No.619), June 19, 1961 (P.L.482, No.244),
    20  October 9, 1967 (P.L.392, No.177) and May 9, 1984 (P.L.246,
    21  No.54), is reenacted and amended to read:                         <--
    22     Section 432.  Malt and Brewed Beverages Retail Licenses.--(a)
    23  Subject to the restrictions hereinafter provided in this act,
    24  and upon being satisfied of the truth of the statements in the
    25  application, that the premises and the applicant meet all the
    26  requirements of this act and the regulations of the [board]       <--
    27  commission, that the applicant seeks a license for a reputable
    28  hotel, eating place or club, as defined in this act, the [board]  <--
    29  commission shall, in the case of a hotel or eating place, grant
    30  and issue, and in the case of a club may, in its discretion,
    19870H1000B1864                 - 107 -

     1  issue or refuse the applicant a retail dispenser's license.
     2     (b)  In the case of hotels and eating places, licenses shall
     3  be issued only to reputable persons who are citizens of the
     4  United States and have for two years been residents of the
     5  Commonwealth of Pennsylvania at the date of their application,
     6  or to reputable corporations organized or duly registered under
     7  the laws of the Commonwealth of Pennsylvania, all of whose
     8  officers and directors are citizens of the United States. In the
     9  case of incorporated clubs, licenses shall be issued only to
    10  those incorporated under the laws of Pennsylvania.
    11     (c)  No retail dispenser's licenses shall be granted or
    12  renewed upon their expiration in any municipality in which the
    13  electors shall vote, as hereinafter provided, against the
    14  licensing therein of places where malt or brewed beverages may
    15  be sold for consumption on the premises where sold.
    16     (d)  The [board] commission shall, in its discretion, grant    <--
    17  or refuse any new license or the transfer of any license to a
    18  new location if such place proposed to be licensed is within
    19  three hundred feet of any church, hospital, charitable
    20  institution, school, or public playground, or if such new
    21  license or transfer is applied for a place which is within two
    22  hundred feet of any other premises which is licensed by the
    23  [board] commission[, or if such new license or transfer is        <--
    24  applied for a place where the principal business conducted is
    25  the sale of liquid fuels and oil]. The [board] commission shall   <--
    26  refuse any application for a new license or the transfer of any
    27  license to a new location if, in the [board's] commission's       <--
    28  opinion, such new license or transfer would be detrimental to
    29  the welfare, health, peace and morals of the inhabitants of the
    30  neighborhood within a radius of five hundred feet of the place
    19870H1000B1864                 - 108 -

     1  to be licensed. THE BOARD SHALL REFUSE ANY APPLICATION FOR A NEW  <--
     2  LICENSE OR THE TRANSFER OF ANY LICENSE TO A LOCATION WHERE THE
     3  SALE OF LIQUID FUELS OR OIL IS CONDUCTED. The [board] commission  <--
     4  shall not issue new licenses, except as herein otherwise
     5  provided, in any license district more than twice each license
     6  year effective from specific dates fixed by the [board]           <--
     7  commission, and new licenses shall not be granted unless the
     8  application therefor shall have been filed at least thirty days
     9  before the effective date of the license. Nothing herein
    10  contained shall prohibit the [board] commission from issuing a    <--
    11  new license for the balance of any unexpired term in any license
    12  district to any applicant in such district, who shall have
    13  become eligible to hold such license as the result of
    14  legislative enactment, when such enactment shall have taken
    15  place during the license term of that district for which
    16  application is made, or within the thirty days immediately
    17  preceding such term: And provided further, That the [board]       <--
    18  commission shall have the discretion to refuse a license to any
    19  person or to any corporation, partnership or association if such
    20  person, or any officer or director of such corporation, or any
    21  member or partner of such partnership or association shall have
    22  been convicted or found guilty of a felony within a period of
    23  five years immediately preceding the date of application for the
    24  said license.
    25     (e)  Every applicant for a new or for the transfer of an
    26  existing license to another premises not then licensed shall
    27  post, for a period of at least fifteen days beginning with the
    28  day the application is filed with the [board] commission, in a    <--
    29  conspicuous place on the outside of the premises or in a window
    30  plainly visible from the outside of the premises for which the
    19870H1000B1864                 - 109 -

     1  license is applied or at the proposed new location, a notice of
     2  such application, in such form, of such size, and containing
     3  such provisions as the [board] commission may require by its      <--
     4  regulations. Proof of the posting of such notice shall be filed
     5  with the [board] commission.                                      <--
     6     (f)  Hotel, eating places, or municipal golf course retail
     7  dispenser licensees whose sales of food and nonalcoholic
     8  beverages are equal to forty per centum (40%) or more of the
     9  combined gross sales of both food and malt or brewed beverages
    10  may sell malt or brewed beverages between the hours of eleven
    11  o'clock antemeridian on Sunday and two o'clock antemeridian on
    12  Monday upon purchase of a special annual permit from the [board]  <--
    13  commission at a fee of two hundred dollars ($200.00) per year,
    14  which shall be in addition to any other license fees. Provided
    15  further, the holder of such special annual permit may sell malt
    16  or brewed beverages after seven o'clock antemeridian and until
    17  two o'clock antemeridian of the following day, on any day on
    18  which a general, municipal, special or primary election is being
    19  held.
    20     Section 46.  Section 433 of the act is reenacted and amended
    21  to read:
    22     Section 433.  Public Service Licenses.--The [board]            <--
    23  commission may issue public service malt and brewed beverage
    24  licenses to a railroad, pullman or steamship company permitting
    25  malt or brewed beverages to be sold at retail in dining, club or
    26  buffet cars, or the dining compartments of steamships or
    27  vessels, for consumption on the trains, steamships or vessels
    28  wherever operated in the State, except when standing in stations
    29  or terminals within a municipality wherein retail sales are
    30  prohibited. Such licenses shall only be granted to reputable
    19870H1000B1864                 - 110 -

     1  persons and for fit places. The [board] commission may issue a    <--
     2  master license to railroad or pullman companies to cover the
     3  maximum number of cars which the company shall estimate that it
     4  will operate within the Commonwealth on any one day. Such
     5  licensees shall file monthly reports with the [board] commission  <--
     6  showing the maximum number of cars operated at any time on any
     7  day during the preceding month, and if it appears that more cars
     8  have been operated than covered by its license it shall
     9  forthwith remit to the [board] commission the sum of ten dollars  <--
    10  for each extra car so operated. The [board] commission shall      <--
    11  have the power to suspend or revoke any such licenses for cause
    12  after granting a hearing [thereon] before an administrative law   <--
    13  judge A HEARING EXAMINER to the licensee. Any person aggrieved    <--
    14  by the decision of the [board] commission in refusing,            <--
    15  suspending or revoking any such license may appeal to [the court
    16  of quarter sessions of Dauphin County] Commonwealth Court in the
    17  same manner as provided in this article for appeals from
    18  refusals of licenses.
    19     Section 47.  Section 433.1 of the act, added July 10, 1961
    20  (P.L.561, No.275), amended November 17, 1967 (P.L.510, No.247)
    21  and December 16, 1982 (P.L.1359, No.311), is reenacted and
    22  amended to read:
    23     Section 433.1.  Stadium or Arena Permits.--(a)  The [board]    <--
    24  commission is hereby authorized to issue, in cities of the
    25  first, second and third class, in counties of the third class
    26  and in school districts in counties of the third class, special
    27  permits allowing the holders thereof to make retail sales of
    28  malt or brewed beverages in shatterproof containers at all
    29  events on premises principally utilized for competition of
    30  professional and amateur athletes and other types of
    19870H1000B1864                 - 111 -

     1  entertainment having an available seating capacity of twelve
     2  thousand or more in cities of the first and second class and
     3  seven thousand or more and owned by the city in cities of the
     4  third class and four thousand two hundred or more and owned by
     5  counties of the third class and two thousand five hundred or
     6  more in school districts in counties of the third class:
     7  Provided, however, That in cities of the second class this
     8  section shall be applicable only to premises owned, leased or
     9  operated by any authority created under the act of July 29, 1953
    10  (P.L.1034, No.270), known as the "Public Auditorium Authorities
    11  Law." Such sales may be made only to adults and only on days
    12  when the premises are so used and only during the period from
    13  one hour before the start of and ending one-half hour after the
    14  close of the event on the premises: Provided, however, That in
    15  school districts in counties of the third class sales may be
    16  made only during professional athletic competition.
    17     (b)  The owner or lessee or a concessionaire of any such
    18  premises may make application for a permit. The aforesaid
    19  permits shall be issued only to reputable individuals,
    20  partnerships and associations, who are or whose members are
    21  citizens of the United States and have for two years prior to
    22  the date of their applications been residents of the
    23  Commonwealth of Pennsylvania, or to reputable corporations
    24  organized or duly registered under the laws of the Commonwealth
    25  of Pennsylvania, all of whose officers and directors are
    26  citizens of the United States. Each applicant shall furnish
    27  proof satisfactory to the [board] commission that he is of good   <--
    28  repute and financially responsible and that the premises upon
    29  which he proposes to do business is a proper place. The
    30  applicant shall submit such other information as the [board]      <--
    19870H1000B1864                 - 112 -

     1  commission may require. Applications shall be, in writing on
     2  forms prescribed by the [board] commission, and signed and sworn  <--
     3  to by the applicant. Every application shall be accompanied by
     4  an application fee of twenty-five dollars ($25), a permit fee of
     5  one hundred dollars ($100) and a surety bond in the amount of
     6  one thousand dollars ($1000) conditioned the same as the license
     7  bonds required by this act for retail dispenser licenses.
     8     (c)  Upon receipt of the application in proper form, the
     9  application fee, the permit fee and bond, and upon being
    10  satisfied that the applicant is of good repute and financially
    11  responsible and that the proposed place of business is proper,
    12  the [board] commission shall issue a special permit to the        <--
    13  applicant. Only one permit issued under this section shall be in
    14  effect on any such premises at any time.
    15     (d)  No permit shall be transferable or assignable. The
    16  [board] commission may by regulation fix the permit year and      <--
    17  provide for the renewal of such permits. Whenever a permit is
    18  revoked, another may be issued for the same premises to another
    19  applicant upon compliance with the provisions of this section.
    20     (e)  The [board] commission shall have the power to refuse     <--
    21  the issuance of any permit for cause, and to revoke or suspend
    22  any permit for cause or for any violation of the liquor or malt
    23  and brewed beverage laws. Any applicant or holder of a permit
    24  aggrieved by any ruling of the [board] commission or by its       <--
    25  refusal to issue a permit, or by its suspension or revocation
    26  thereof, shall have the right to a hearing and appeal therefrom
    27  in the same manner as provided in sections 464 and 471 of this
    28  act authorizing appeals from orders of the [board] commission or  <--
    29  an administrative law judge.
    30     Section 48.  Section 434 of the act is reenacted and amended   <--
    19870H1000B1864                 - 113 -

     1  to read:
     2     Section 434.  License Year.--(a)  Licenses issued under this
     3  article to distributors, importing distributors and retail
     4  dispensers shall, unless revoked in the manner provided in this
     5  act, be valid for the license year which may be established by
     6  the [board] commission for the particular license district in     <--
     7  which the license issues.
     8     (b)  Malt or brewed beverage licenses issued under this
     9  article to manufacturers and public service companies shall,
    10  unless revoked in the manner herein provided, be valid for the
    11  calendar year for which they are issued. Licenses to such
    12  manufacturers and public service companies may be issued at any
    13  time during a calendar year.
    14     Section 49.  Section 435 of the act, amended September 28,
    15  1961 (P.L.1728, No.702), is reenacted and amended to read:        <--
    16     Section 435.  Filing of Applications for Distributors',
    17  Importing Distributors' and Retail Dispensers' Licenses; Filing
    18  Fee.--Every person intending to apply for a distributor's,
    19  importing distributor's or retail dispenser's license, as
    20  aforesaid, in any municipality of this Commonwealth, shall file
    21  with the [board] commission his or its application. All such      <--
    22  applications shall be filed at a time to be fixed by the [board]  <--
    23  commission for the particular license district as set up by the
    24  [board] commission under the provisions of this act. The          <--
    25  applicant shall, at the time of filing the application and bond,
    26  pay said [board] commission the filing fee of twenty dollars      <--
    27  ($20), as hereinafter specified.
    28     Section 50.  Section 436 of the act, amended June 19, 1961
    29  (P.L.482, No.244) and June 29, 1965 (P.L.151, No.101), is
    30  reenacted and amended to read:                                    <--
    19870H1000B1864                 - 114 -

     1     Section 436.  Application for Distributors', Importing
     2  Distributors' and Retail Dispensers' Licenses.--Application for
     3  distributors', importing distributors' and retail dispensers'
     4  licenses, or for the transfer of an existing license to another
     5  premises not then licensed, shall contain or have attached
     6  thereto the following information and statements:
     7     (a)  The name and residence of the applicant and how long he
     8  has resided there, and if an association, partnership or
     9  corporation, the residences of the members, officers and
    10  directors for the period of two years next preceding the date of
    11  such application.
    12     (b)  The particular place for which the license is desired
    13  and a detailed description thereof. The description, information
    14  and plans referred to in this subsection shall show the premises
    15  or the proposed location for the construction of the premises at
    16  the time the application is made, and shall show any alterations
    17  proposed to be made thereto, or the new building proposed to be
    18  constructed after the approval by the [board] commission of the   <--
    19  application for a license, or for the transfer of an existing
    20  license to another premises not then licensed. No physical
    21  alterations, improvements or changes shall be required to be
    22  made to any hotel, eating place or club, nor shall any new
    23  building for any such purpose be required to be constructed
    24  until approval of the application for license or for the
    25  transfer of an existing license to another premises not then
    26  licensed by the [board] commission. After approval of the         <--
    27  application, the licensee shall make the physical alterations,
    28  improvements and changes to the licensed premises, or shall
    29  construct the new building in the manner specified by the
    30  [board] commission at the time of approval. The licensee shall    <--
    19870H1000B1864                 - 115 -

     1  not transact any business under the license until the [board]     <--
     2  commission has approved the completed physical alterations,
     3  improvements and changes of the licensed premises or the
     4  completed construction of the new building as conforming to the
     5  specifications required by the [board] commission at the time of  <--
     6  issuance or transfer of the license and is satisfied that the
     7  premises meet the requirements for a distributor's or importing
     8  distributor's license as set forth in this act or that the
     9  establishment is an eating place, hotel or club as defined by
    10  this act. The [board] commission may require that all such        <--
    11  alterations or construction or conformity to definition be
    12  completed within six months from the time of issuance or
    13  transfer of the license. Failure to comply with these
    14  requirements shall be considered cause for revocation of the
    15  license. No such license shall be transferable between the time
    16  of issuance or transfer of the license and the approval of the
    17  completed alterations or construction by the [board] commission   <--
    18  and full compliance by the licensee with the requirements of
    19  this act, except in the case of death of the licensee prior to
    20  full compliance with all of the aforementioned requirements, in
    21  which event the license may be transferred by the [board]         <--
    22  commission as provided in section 468 of this act for the
    23  transfer of the license in the case of death of the licensee.
    24     (c)  Place of birth of applicant, and if a naturalized
    25  citizen, where and when naturalized, and if a corporation
    26  organized or registered under the laws of the Commonwealth, when
    27  and where incorporated, with the names and addresses of each
    28  officer and director, all of whom shall be citizens of the
    29  United States; if the application is for a distributor's or
    30  importing distributor's license and the applicant therefor is a
    19870H1000B1864                 - 116 -

     1  corporation, the application shall also contain a statement of
     2  facts showing the qualifications of the corporation, as
     3  hereinbefore required, together with the names and addresses of
     4  all stockholders.
     5     (d)  Name of owner of premises and his residence.
     6     (e)  That the applicant is not, or in case of a partnership
     7  or association, that the members or partners are not, and in the
     8  case of a corporation, that the officers and directors are not,
     9  in any manner pecuniarily interested, either directly or
    10  indirectly, in the profits of any other class of business
    11  regulated under this article, except as hereinafter permitted.
    12     (f)  That applicant is the only person in any manner
    13  pecuniarily interested in the business so asked to be licensed,
    14  and that no other person shall be in any manner pecuniarily
    15  interested therein during the continuance of the license, except
    16  as hereinafter permitted.
    17     (g)  Whether applicant, or in case of a partnership or
    18  association, any member or partner thereof, or in case of a
    19  corporation, any officer or director thereof, has during the
    20  three years immediately preceding the date of said application
    21  had a license for the sale of malt or brewed beverages or
    22  spirituous and vinous liquors revoked, or has during the same
    23  period been convicted of any criminal offense, and if so, a
    24  detailed history thereof.
    25     (h)  A full description of that portion of the premises for
    26  which license is asked, and if any other business is to be
    27  conducted concurrently with the sale and distribution of malt or
    28  brewed beverages, a full history of such business, relating the
    29  nature thereof, the length of time it has so previously been
    30  conducted by the applicant or his predecessor at such location,
    19870H1000B1864                 - 117 -

     1  and such additional information as the [board] commission may     <--
     2  require.
     3     (i)  Every club applicant shall file with and as a part of
     4  its application a list of the names and addresses of its
     5  members, directors, officers, agents and employes, together with
     6  the dates of their admission, election or employment, and such
     7  other information with respect to its affairs as the [board]      <--
     8  commission shall require.
     9     (j)  The application must be verified by affidavit of
    10  applicant, and if any false statement is intentionally made in
    11  any part of the application, the affiant shall be deemed guilty
    12  of a misdemeanor and, upon conviction, shall be subject to the
    13  penalties provided by this article.
    14     Section 51.  Section 437 of the act, amended December 22,
    15  1965 (P.L.1149, No.445), is reenacted and amended to read:        <--
    16     Section 437.  Prohibitions Against the Grant of Licenses.--
    17  (a)  The [board] commission shall refuse to grant any licenses    <--
    18  unless the application therefor contains the information
    19  required by this act, and the premises meet such reasonable
    20  sanitary requirements as the [board] commission, by regulation,   <--
    21  shall prescribe.
    22     (b)  The [board] commission shall refuse to grant a license    <--
    23  to any club when it appears that the operation of such license
    24  would inure to the benefit of individual members, officers,
    25  agents or employes of the club, rather than to the benefit of
    26  the entire membership of the club.
    27     (c)  Licenses shall be granted by the [board] commission only  <--
    28  to reputable individuals, or to associations, partnerships and
    29  corporations whose members or officers and directors are
    30  reputable individuals.
    19870H1000B1864                 - 118 -

     1     (d)  No person who holds, either by appointment or election,
     2  any public office which involves the duty to enforce any of the
     3  penal laws of the United States of America or any of the penal
     4  laws of this Commonwealth or any penal ordinance or resolution
     5  of any political subdivision of this Commonwealth shall be
     6  issued any manufacturer's, importing distributor's,
     7  distributor's or retail dispenser's license, nor shall such a
     8  person have any interest, directly or indirectly, in any such
     9  license.
    10     (e)  No distributor's or importing distributor's license
    11  shall be issued for any premises in any part of which there is
    12  operated any retail license for the sale of liquor or malt or
    13  brewed beverages.
    14     (f)  No new distributor's or importing distributor's license
    15  shall hereafter be granted by the [board] commission in any       <--
    16  county of the Commonwealth where the combined number of
    17  distributor and importing distributor licenses exceeds one
    18  license for each fifteen thousand inhabitants of the county in
    19  which the license is to be issued: Provided, That a combined
    20  total of five such licenses may be granted in any county of the
    21  Commonwealth.
    22     Nothing in this subsection shall be construed as denying the
    23  right of the [board] commission to renew or to transfer existing  <--
    24  distributors' or importing distributors' licenses or to exchange
    25  a distributor's license for an importing distributor's license
    26  or to exchange an importing distributor's license for a
    27  distributor's license, upon adjustment of the applicable fee,
    28  notwithstanding that the number of such licensed places in the
    29  county shall exceed the limitation hereinbefore prescribed:
    30  Provided, That no distributor's license or importing
    19870H1000B1864                 - 119 -

     1  distributor's license shall be transferred from one county to
     2  another county so long as the quota is filled in the county to
     3  which the license is proposed to be transferred.
     4     Section 52.  Section 438 of the act is reenacted to read:
     5     Section 438.  Number and Kinds of Licenses Allowed Same
     6  Licensee.--(a)  Any retail dispenser may be granted licenses to
     7  maintain, operate or conduct any number of places for the sale
     8  of malt or brewed beverages, but a separate license must be
     9  secured for each place where malt or brewed beverages are sold.
    10     (b)  No person shall possess or be issued more than one
    11  distributor's or importing distributor's license.
    12     (c)  No person shall possess more than one class of license,
    13  except that a holder of a retail dispenser's license may also be
    14  a holder of a retail liquor license.
    15     Section 53.  Section 439 of the act, amended September 28,
    16  1961 (P.L.1728, No.702), is reenacted and amended to read:        <--
    17     Section 439.  Malt or Brewed Beverage License Fees.--No
    18  public service license and no license to any manufacturer,
    19  distributor, importing distributor or retail dispenser shall be
    20  issued under the provisions of this subdivision (B) until the
    21  licensee shall have first paid an annual license fee, as
    22  follows:
    23     (a)  In the case of a manufacturer, the license fee shall be
    24  one thousand dollars ($1,000) for each place of manufacture and
    25  shall be paid to the [board] commission. The fee for all such     <--
    26  licenses when applied for and issued on or after April 1, but
    27  prior to July 1, shall be three-fourths of the annual fee; July
    28  1, but prior to October 1, shall be one-half of the annual fee;
    29  October 1, but prior to January 1, shall be one quarter of the
    30  annual fee.
    19870H1000B1864                 - 120 -

     1     (b)  In the case of a distributor, the license fee shall be
     2  four hundred dollars ($400) and shall be paid to the [board]      <--
     3  commission.
     4     (c)  In the case of an importing distributor, the license fee
     5  shall be nine hundred dollars ($900) and shall be paid to the
     6  [board] commission.                                               <--
     7     (d)  In the case of a retail dispenser, except clubs, the
     8  license fee shall be graduated according to the population of
     9  the municipality in which the place of business is located and
    10  shall be paid to the [board] commission, as follows:              <--
    11      (1)  Less than 10,000..................................$100
    12      (2)  10,000 and more, but less than 50,000.............$150
    13      (3)  50,000 and more, but less than 100,000............$200
    14      (4)  100,000 and more, but less than 150,000...........$250
    15      (5)  150,000 and more..................................$300
    16     (e)  In the case of a club, the fee shall be twenty-five
    17  dollars in all cases and shall be paid to the [board]             <--
    18  commission.
    19     (f)  In the case of a public service license for cars, the
    20  fee shall be ten dollars per car for the maximum number of cars
    21  operated on any one day on which malt or brewed beverages are
    22  sold, to be paid to the [board] commission.                       <--
    23     (g)  In the case of a public service license for the sale of
    24  malt or brewed beverages on a boat or vessel, the fee shall be
    25  fifty dollars for each such vessel or boat and shall be paid to
    26  the [board] commission.                                           <--
    27     (h)  The fee for filing applications for licenses and for
    28  renewals shall be twenty dollars ($20) which, together with fees
    29  for transfers, shall be paid to the [board] commission.           <--
    30     (i)  The license fees fixed by this section shall be paid
    19870H1000B1864                 - 121 -

     1  before the license or renewal is issued.
     2     Section 54.  Section 440 of the act, amended August 17, 1965
     3  (P.L.346, No.182), is reenacted and amended to read:              <--
     4     Section 440.  Sales by Manufacturers of Malt or Brewed
     5  Beverages; Minimum Quantities.--No manufacturer shall sell any
     6  malt or brewed beverages for consumption on the premises where
     7  sold, nor sell or deliver any such malt or brewed beverages in
     8  other than original containers approved as to capacity by the
     9  [board] commission, nor in quantities of less than a case of      <--
    10  twenty-four containers, each container holding seven fluid
    11  ounces or more, or a case of twelve containers, each container
    12  holding twenty-four fluid ounces or more, except original
    13  containers containing one hundred twenty-eight ounces or more
    14  which may be sold separately; nor shall any manufacturer
    15  maintain or operate within the Commonwealth any place or places
    16  other than the place or places covered by his or its license
    17  where malt or brewed beverages are sold or where orders are
    18  taken.
    19     Section 55.  Section 441 of the act, amended October 23, 1959
    20  (P.L.1360, No.471), is reenacted and amended to read:             <--
    21     Section 441.  Distributors' and Importing Distributors'
    22  Restrictions on Sales, Storage, Etc.--(a) No distributor or
    23  importing distributor shall purchase, receive or resell any malt
    24  or brewed beverages except in the original containers as
    25  prepared for the market by the manufacturer at the place of
    26  manufacture.
    27     (b)  No distributor or importing distributor shall sell any
    28  malt or brewed beverages in quantities of less than a case of
    29  twenty-four containers, each container holding seven fluid
    30  ounces or more, or a case of twelve containers, each container
    19870H1000B1864                 - 122 -

     1  holding twenty-four fluid ounces or more, except original
     2  containers containing one hundred twenty-eight ounces or more
     3  which may be sold separately: Provided, That no malt or brewed
     4  beverages sold or delivered shall be consumed upon the premises
     5  of the distributor or importing distributor, or in any place
     6  provided for such purpose by such distributor or importing
     7  distributor.
     8     (c)  No distributor or importing distributor shall maintain
     9  or operate any place where sales are made other than that for
    10  which the license is granted.
    11     (d)  No distributor or importing distributor shall maintain
    12  any place for the storage of malt or brewed beverages except in
    13  the same municipality in which the licensed premises is located
    14  and unless the same has been approved by the [board] commission.  <--
    15  In the event there is no place of cold storage in the same
    16  municipality, the [board] commission may approve a place of cold  <--
    17  storage in the nearest municipality.
    18     (e)  No distributor or importing distributor shall purchase,
    19  sell, resell, receive or deliver any malt or brewed beverages,
    20  except in strict compliance with the provisions of subsection
    21  (b) of section 431 of this act.
    22     Section 56.  Section 442 of the act, amended October 9, 1967
    23  (P.L.413, No.183), July 3, 1980 (P.L.348, No.88) and May 9, 1984
    24  (P.L.246, No.54), is reenacted AND AMENDED to read:               <--
    25     Section 442.  Retail Dispensers' Restrictions on Purchases
    26  and Sales.--(a)  No retail dispenser shall purchase or receive
    27  any malt or brewed beverages except in original containers as
    28  prepared for the market by the manufacturer at the place of
    29  manufacture. The retail dispenser may thereafter break the bulk
    30  upon the licensed premises and sell or dispense the same for
    19870H1000B1864                 - 123 -

     1  consumption on or off the premises so licensed: Provided,
     2  however, That no retail dispenser may sell malt or brewed
     3  beverages for consumption off the premises in quantities in
     4  excess of [one hundred forty-four] ONE HUNDRED NINETY-TWO fluid   <--
     5  ounces: Provided, further, That no club licensee may sell any
     6  malt or brewed beverages for consumption off the premises where
     7  sold or to persons not members of the club.
     8     (b)  No retail dispenser shall sell any malt or brewed
     9  beverages for consumption on the licensed premises except in a
    10  room or rooms or place on the licensed premises at all times
    11  accessible to the use and accommodation of the general public,
    12  but this section shall not be interpreted to prohibit a retail
    13  dispenser from selling malt or brewed beverages in a hotel or
    14  club house in any room of such hotel or club house occupied by a
    15  bona fide registered guest or member entitled to purchase the
    16  same or to prohibit a retail dispenser from selling malt or
    17  brewed beverages in a bowling alley when no minors are present,
    18  unless minors who are present are under proper supervision as
    19  defined in section 493, where the licensed premises and bowling
    20  alley are immediately adjacent and under the same roof.
    21     (c)  For the purpose of this section any person who is an
    22  active member of another club which is chartered by the same
    23  state or national organization shall have the same rights and
    24  privileges as members of the particular club.
    25     (d)  For the purposes of this section, any person who is an
    26  active member of any volunteer firefighting company, association
    27  or group of this Commonwealth, whether incorporated or
    28  unincorporated, shall upon the approval of any club composed of
    29  volunteer firemen licensed under this act, have the same social
    30  rights and privileges as members of such licensed club.
    19870H1000B1864                 - 124 -

     1     Section 57.  Section 443 of the act is reenacted to read:
     2     Section 443.  Interlocking Business Prohibited.--(a)  No
     3  manufacturer of malt or brewed beverages and no officer or
     4  director of any such manufacturer shall at the same time be a
     5  distributor, importing distributor or retail dispenser, or an
     6  officer, director or stockholder or creditor of any distributor,
     7  importing distributor or retail dispenser, nor, except as
     8  hereinafter provided, be the owner, proprietor or lessor of any
     9  place for which a license has been issued for any importing
    10  distributor, distributor or retail dispenser, or for which a
    11  hotel, restaurant or club liquor license has been issued.
    12     (b)  No distributor or importing distributor and no officer
    13  or director of any distributor or importing distributor shall at
    14  the same time be a manufacturer, a retail dispenser or a liquor
    15  licensee, or be an officer, director, stockholder or creditor of
    16  a manufacturer, a retail dispenser or a liquor licensee, or,
    17  directly or indirectly, own any stock of, or have any financial
    18  interest in, or be the owner, proprietor or lessor of, any place
    19  covered by any other malt or brewed beverage or liquor license.
    20     (c)  No licensee licensed under this subdivision (B) of
    21  Article IV and no officer or director of such licensee shall,
    22  directly or indirectly, own any stock of, or have any financial
    23  interest in, any other class of business licensed under this
    24  subdivision.
    25     (d)  Excepting as hereinafter provided, no malt or brewed
    26  beverage manufacturer, importing distributor or distributor
    27  shall in any wise be interested, either directly or indirectly,
    28  in the ownership or leasehold of any property or in any mortgage
    29  against the same, for which a liquor or retail dispenser's
    30  license is granted; nor shall any such manufacturer, importing
    19870H1000B1864                 - 125 -

     1  distributor or distributor, either directly or indirectly, lend
     2  any moneys, credit or equivalent thereof to, or guarantee the
     3  payment of any bond, mortgage, note or other obligation of, any
     4  liquor licensee or retail dispenser, in equipping, fitting out,
     5  or maintaining and conducting, either in whole or in part, an
     6  establishment or business operated under a liquor or retail
     7  dispenser's license, excepting only the usual and customary
     8  credits allowed for returning original containers in which malt
     9  or brewed beverages were packaged for market by the manufacturer
    10  at the place of manufacture.
    11     (e)  Excepting as hereinafter provided, no manufacturer of
    12  malt or brewed beverages shall in any wise be interested, either
    13  directly or indirectly, in the ownership or leasehold of any
    14  property or any mortgage lien against the same, for which a
    15  distributor's or importing distributor's license is granted; nor
    16  shall any such manufacturer, either directly or indirectly, lend
    17  any moneys, credit, or their equivalent to, or guarantee the
    18  payment of any bond, mortgage, note or other obligation of, any
    19  distributor or importing distributor, in equipping, fitting out,
    20  or maintaining and conducting, either in whole or in part, an
    21  establishment or business where malt or brewed beverages are
    22  licensed for sale by a distributor or importing distributor,
    23  excepting only the usual credits allowed for the return of
    24  original containers in which malt or brewed beverages were
    25  originally packaged for the market by the manufacturer at the
    26  place of manufacture.
    27     (f)  No distributor, importing distributor or retail
    28  dispenser shall in anywise receive, either directly or
    29  indirectly, any credit, loan, moneys or the equivalent thereof
    30  from any other licensee, or from any officer, director or firm
    19870H1000B1864                 - 126 -

     1  member of any other licensee, or from or through a subsidiary or
     2  affiliate of another licensee, or from any firm, association or
     3  corporation, except banking institutions, in which another
     4  licensee or any officer, director or firm member of another
     5  licensee has a substantial interest or exercises a control of
     6  its business policy, for equipping, fitting out, payment of
     7  license fee, maintaining and conducting, either in whole or in
     8  part, an establishment or business operated under a
     9  distributor's, importing distributor's or retail dispenser's
    10  license, excepting only the usual and customary credits allowed
    11  for the return of original containers in which malt or brewed
    12  beverages were packaged for the market by the manufacturer at
    13  the place of manufacture.
    14     (g)  The purpose of this section is to require a separation
    15  of the financial and business interests between the various
    16  classes of business regulated by subdivision (B) of this
    17  article, and no person or corporation shall, by any device
    18  whatsoever, directly or indirectly, evade the provisions of this
    19  section. But in view of existing economic conditions, nothing
    20  contained in this section shall be construed to prohibit the
    21  ownership of property or conflicting interest by a malt or
    22  brewed beverage manufacturer of any place occupied by a
    23  distributor, importing distributor or retail dispenser after the
    24  manufacturer has continuously owned and had a conflicting
    25  interest in such place for a period of at least five years prior
    26  to the eighteenth day of July, one thousand nine hundred thirty-
    27  five.
    28     The term "manufacturer" as used in this section shall include
    29  manufacturers of malt or brewed beverages as defined in this act
    30  and any person manufacturing any malt or brewed beverages
    19870H1000B1864                 - 127 -

     1  outside of this Commonwealth.
     2     Section 58.  Section 444 of the act, amended December 12,
     3  1980 (P.L.1195, No.221) and repealed in part December 20, 1982
     4  (P.L.1409, No.326), is reenacted and amended to read:
     5     Section 444.  Malt or Brewed Beverages Manufactured Outside
     6  This Commonwealth.--(a)  In addition to compliance with all
     7  other provisions of this act, the [board] commission shall        <--
     8  require each person desiring to sell any malt or brewed
     9  beverages manufactured outside this Commonwealth to Pennsylvania
    10  licensees, and shall require each Pennsylvania licensee who
    11  desires to purchase and resell any such malt or brewed
    12  beverages, to pay to the [board] commission the same fees as are  <--
    13  required to be paid by Pennsylvania licensees or by persons or
    14  licensees in any state, territory or country outside of
    15  Pennsylvania who desires to sell malt or brewed beverages
    16  manufactured in Pennsylvania to licensees in such other state,
    17  territory or country of origin of such malt or brewed beverages
    18  not manufactured in Pennsylvania, and to observe and comply with
    19  the same regulations, prohibitions and restrictions as are
    20  required of or enforced against Pennsylvania licensees or
    21  persons who desire to purchase and resell malt or brewed
    22  beverages manufactured in Pennsylvania in such other state,
    23  territory or country of origin.
    24     (b)  In all cases where the [board] commission shall have      <--
    25  issued any reciprocal regulations or orders concerning malt or
    26  brewed beverages manufactured in any state, territory or country
    27  other than Pennsylvania, no Pennsylvania licensee shall purchase
    28  any such malt or brewed beverages if their importation has been
    29  prohibited, or if not entirely prohibited, unless such
    30  regulations or orders have been observed and complied with by
    19870H1000B1864                 - 128 -

     1  the Pennsylvania licensee and by the person from or through whom
     2  the Pennsylvania licensee desires to purchase.
     3     (c)  Any malt or brewed beverages manufactured outside of
     4  Pennsylvania which are sold, transported or possessed in
     5  Pennsylvania contrary to any such regulations or orders of the
     6  [board] commission, or without the payment of the fees herein     <--
     7  required, shall be considered contraband and shall be
     8  confiscated by the [board] commission and disposed of in the      <--
     9  same manner as any other illegal liquor or malt or brewed
    10  beverages.
    11     (d)  Upon learning of the commission by a manufacturer of
    12  malt or brewed beverages whose principal place of business is
    13  outside this Commonwealth, or by any servant, agent, employe or
    14  representative of such manufacturer, within or partly within and
    15  partly outside this Commonwealth, of any violation of this act
    16  or any laws of this Commonwealth relating to liquor, alcohol or
    17  malt or brewed beverages, or of any regulation of the [board]     <--
    18  commission adopted pursuant thereto, or of any violation of any
    19  laws of this Commonwealth or of the United States of America
    20  relating to the tax payment of liquor or malt or brewed
    21  beverages, the [board] commission shall cite such manufacturer    <--
    22  to appear before it or [its examiner] an administrative law
    23  judge not less than ten nor more than fifteen days from the date
    24  of mailing such manufacturer at his principal place of business,
    25  wherever located, by registered mail, a notice to show cause why
    26  the further importation into this Commonwealth of malt or brewed
    27  beverages manufactured by him should not be prohibited.
    28     (e)  Upon such hearing, whether or not an appearance was made
    29  by such outside manufacturer, if satisfied that any such
    30  violation has occurred, the [board] commission is specifically    <--
    19870H1000B1864                 - 129 -

     1  empowered and directed to issue an order imposing a fine upon
     2  such outside manufacturer of not less than five hundred dollars
     3  ($500) or more than ten thousand dollars ($10,000), or
     4  prohibiting the importation of malt or brewed beverages
     5  manufactured by such outside manufacturer into this Commonwealth
     6  for a period not exceeding three years, or both. Such fine or
     7  prohibition shall not go into effect until twenty days have
     8  elapsed from the date of notice of issuance of the [board's]      <--
     9  commission's order.
    10     (f)  If, after hearing, the [board] commission prohibits the   <--
    11  importation of malt or brewed beverages manufactured by such
    12  outside manufacturer into this Commonwealth, notice of such
    13  [board] commission action shall be given immediately to such      <--
    14  manufacturer and to all persons licensed to import malt or
    15  brewed beverages within this Commonwealth by mailing a copy of
    16  such order to such manufacturer at its principal place of
    17  business, wherever located, and to such licensees at their
    18  licensed premises. Thereafter, it shall be unlawful for any
    19  person licensed to import malt or brewed beverages within this
    20  Commonwealth to purchase any malt or brewed beverages
    21  manufactured by such outside manufacturer during the term of
    22  such prohibition.
    23     (g)  Any violation of such prohibitory order shall be a
    24  misdemeanor and shall be punished in the same manner as herein
    25  provided for any other violation of this act, and shall also
    26  constitute grounds for revocation or suspension of a license to
    27  import malt or brewed beverages.
    28     (h)  In all such cases, the [board] commission shall file of   <--
    29  record at least a brief statement in the form of an opinion of
    30  the reasons for the ruling or order.
    19870H1000B1864                 - 130 -

     1     Section 58.1.  The act is amended by adding a section          <--
     2  SECTIONS to read:                                                 <--
     3     Section 445.  Limited Breweries.--(a)  Holders of a limited    <--
     4  brewery license may:
     5     SECTION 444.1.  BRAND REGISTRATION.--NO BRAND OR BRANDS OF     <--
     6  MALT OR BREWED BEVERAGES SHALL BE OFFERED, SOLD OR DELIVERED TO
     7  ANY TRADE BUYER WITHIN THIS COMMONWEALTH UNLESS THE MANUFACTURER
     8  THEREOF SHALL FIRST SUBMIT AN APPLICATION IN THE FORM AND MANNER
     9  PRESCRIBED BY THE BOARD FOR THE REGISTRATION OF THE SAID BRAND
    10  OR BRANDS OF MALT BEVERAGES TOGETHER WITH AN ANNUAL FILING FEE
    11  NOT TO EXCEED TWENTY FIVE DOLLARS ($25) FOR EACH BRAND
    12  REGISTRATION REQUESTED. IN THE EVENT AN OUT OF STATE OR FOREIGN
    13  MANUFACTURER OF MALT OR BREWED BEVERAGES HAS GRANTED FRANCHISE
    14  RIGHTS TO ANY PERSON FOR THE SALE AND DISTRIBUTION OF ITS BRAND
    15  PRODUCTS BUT WHICH PERSON IS NOT LICENSED TO SELL AND DISTRIBUTE
    16  THE SAME IN THIS COMMONWEALTH, SAID SUCH PERSON SHALL
    17  NEVERTHELESS BE REQUIRED TO REGISTER THE INVOLVED BRAND BEFORE
    18  OFFERING THE SAME FOR SALE IN PENNSYLVANIA. IT IS FURTHER
    19  CONDITIONED THAT THE PERSON HOLDING SUCH FRANCHISE RIGHTS SHALL,
    20  TOGETHER WITH ITS APPLICATION FOR BRAND REGISTRATION, FILE WITH
    21  THE BOARD COPIES OF ALL AGREEMENTS BETWEEN IT AND THE
    22  PENNSYLVANIA IMPORTING DISTRIBUTOR APPOINTED BY SUCH PERSON TO
    23  SELL AND DISTRIBUTE THE BRANDS OF MALT OR BREWED BEVERAGES AS
    24  PROVIDED BY SECTIONS 431 AND 492. SUCH AGREEMENT SHALL CONTAIN
    25  THE MANUFACTURER'S CONSENT AND APPROVAL TO THE APPOINTMENT OF
    26  THE PENNSYLVANIA IMPORTING DISTRIBUTOR AND THE RIGHTS CONFERRED
    27  THEREUNDER.
    28     SECTION 445.  BREWERIES.--HOLDERS OF A BREWERY LICENSE MAY:    <--
    29     (1)  Sell malt or brewed beverages produced AND OWNED by the   <--
    30  limited brewery on the licensed premises under such conditions    <--
    19870H1000B1864                 - 131 -

     1  and regulations as the commission BOARD may enforce, to the       <--
     2  commission, to individuals for consumption on or off the          <--
     3  premises and to hotel, restaurant, club and public service
     4  liquor licensees.
     5     (2)  Operate a restaurant or brewery pub on the licensed
     6  premises under such conditions and regulations as the commission  <--
     7  BOARD may enforce.                                                <--
     8     (b)  The term "limited brewery" as used in this section shall  <--
     9  include manufacturers of malt or brewed beverages produced
    10  within this Commonwealth not exceeding twenty thousand barrels
    11  per year.
    12     Section 59.  The heading of Subdivision (C) of Article IV of
    13  the act is reenacted to read:
    14      (C)  General Provisions Applying to Both Liquor and Malt
    15                       and Brewed Beverages.
    16     Section 60.  Section 461 of the act, amended June 19, 1961
    17  (P.L.484, No.245), September 2, 1971 (P.L.429, No.103), December
    18  17, 1982 (P.L.1390, No.319) and May 2, 1986 (P.L.141, No.44), is
    19  reenacted and amended to read:                                    <--
    20     Section 461.  Limiting Number of Retail Licenses To Be Issued
    21  In Each Municipality.--(a)  No licenses shall hereafter be
    22  granted by the [board] commission for the retail sale of malt or  <--
    23  brewed beverages or the retail sale of liquor and malt or brewed
    24  beverages in excess of one of such licenses of any class for
    25  each two thousand inhabitants in any municipality, exclusive of
    26  licenses granted to airport restaurants, municipal golf courses,
    27  hotels, privately-owned public golf courses, as defined in this
    28  section, and clubs; but at least one such license may be granted
    29  in each municipality and in each part of a municipality where
    30  such municipality is split so that each part thereof is
    19870H1000B1864                 - 132 -

     1  separated by another municipality, except in municipalities
     2  where the electors have voted against the granting of any retail
     3  licenses and except in that part of a split municipality where
     4  the electors have voted against the granting of any retail
     5  licenses. Nothing contained in this section shall be construed
     6  as denying the right to the [board] commission to renew or to     <--
     7  transfer existing retail licenses of any class notwithstanding
     8  that the number of such licensed places in a municipality shall
     9  exceed the limitation hereinbefore prescribed; but where such
    10  number exceeds the limitation prescribed by this section, no new
    11  license, except for hotels, municipal golf courses, airport
    12  restaurants, privately-owned public golf courses and privately-
    13  owned private golf course licensees, as defined in this section,
    14  shall be granted so long as said limitation is exceeded.
    15     (b)  The [board] commission shall have the power to increase   <--
    16  the number of licenses in any such municipality which in the
    17  opinion of the [board] commission is located within a resort      <--
    18  area.
    19     (c)  The word "hotel" as used in this section shall mean any
    20  reputable place operated by a responsible person of good
    21  reputation where the public may, for a consideration, obtain
    22  sleeping accommodations, and which shall have the following
    23  number of bedrooms and requirements in each case--at least one-
    24  half of the required number of bedrooms shall be regularly
    25  available to transient guests seven days weekly, except in
    26  resort areas; at least one-third of such bedrooms shall be
    27  equipped with hot and cold water, a lavatory, commode, bathtub
    28  or shower and a clothes closet; and an additional one-third of
    29  the total of such required rooms shall be equipped with lavatory
    30  and commode:
    19870H1000B1864                 - 133 -

     1     (1)  In municipalities having a population of less than three
     2  thousand, at least twelve permanent bedrooms for the use of
     3  guests.
     4     (2)  In municipalities having a population of three thousand
     5  and more but less than ten thousand inhabitants, at least
     6  sixteen permanent bedrooms for the use of guests.
     7     (3)  In municipalities having a population of ten thousand
     8  and more but less than twenty-five thousand inhabitants, at
     9  least thirty permanent bedrooms for the use of guests.
    10     (4)  In municipalities having a population of twenty-five
    11  thousand and more but less than one hundred thousand
    12  inhabitants, at least forty permanent bedrooms for the use of
    13  guests.
    14     (5)  In municipalities having a population of one hundred
    15  thousand and more inhabitants, at least fifty permanent bedrooms
    16  for the use of guests.
    17     (6)  A public dining room or rooms operated by the same
    18  management accommodating at least thirty persons at one time and
    19  a kitchen, apart from the dining room or rooms, in which food is
    20  regularly prepared for the public.
    21     (7)  Each room to be considered a bedroom under the
    22  requirements of this section shall have an area of not less than
    23  eighty square feet and an outside window.
    24     (8)  The provisions of this subsection (c) shall not apply to
    25  hotel licenses granted prior to the first day of September, one
    26  thousand nine hundred forty-nine, or that have been granted on
    27  any application made and pending prior to said date, nor to any
    28  renewal or transfer thereof, or hotels under construction or for
    29  which a bona fide contract had been entered into for
    30  construction prior to said date. In such cases, the provisions
    19870H1000B1864                 - 134 -

     1  of section one of the act, approved the twenty-fourth day of
     2  June, one thousand nine hundred thirty-nine (Pamphlet Laws 806),
     3  shall continue to apply.
     4     (d)  "Airport restaurant," as used in this section, shall
     5  mean restaurant facilities at any airport for public
     6  accommodation, which are owned or operated directly or through
     7  lessees by the Commonwealth of Pennsylvania, by any municipal
     8  authority, county or city, either severally or jointly, with any
     9  other municipal authority, county or city, but shall not include
    10  any such restaurant facilities at any airport situated in a
    11  municipality where by vote of the electors the retail sale of
    12  liquor and malt or brewed beverages is not permitted.
    13     (e)  "Municipal golf course" as used in this section shall
    14  mean the restaurant facilities at any municipal golf course open
    15  for public accommodation, which are owned or operated directly
    16  or through lessees by a county, municipality or a municipal
    17  authority, severally or jointly with any other county,
    18  municipality or municipal authority, including any such
    19  restaurant facilities at any municipal golf course situate in a
    20  municipality where by vote of the electors the retail sale of
    21  liquor and malt and brewed beverages is not permitted.
    22     (e.1)  "Privately-owned public golf course" as used in this
    23  section shall mean the restaurant facilities at any privately-
    24  owned golf course open for public accommodation.
    25     (e.2)  "Privately-owned private golf course" as used in this
    26  section shall mean the clubhouse at any privately-owned golf
    27  course as defined in section 102 open for private membership
    28  accommodations only as a club as defined in section 102. The
    29  license to be issued in this instance shall be a club license.
    30     (f)  The provisions of subsection (a) which apply to
    19870H1000B1864                 - 135 -

     1  privately-owned public golf courses shall not apply to the owner
     2  of such course who has, within three years prior to the
     3  effective date of this amendatory act or at any time after the
     4  effective date of this amendatory act, sold or transferred a
     5  regularly issued license for such course.
     6     Section 61.  Section 461.1 of the act, added December 12,
     7  1980 (P.L.1195, No.221), is reenacted and amended to read:        <--
     8     Section 461.1.  Incorporated Units of National Veterans'
     9  Organizations.--(a)  The [board] commission shall have the        <--
    10  authority to issue new licenses to incorporated units of
    11  national veterans' organizations, as defined herein, in
    12  municipalities where the number of licenses exceeds the
    13  limitation prescribed by section 461.
    14     (b)  The term "national veterans' organization" shall mean
    15  any veterans' organization having a national charter.
    16     The term "incorporated unit of a national veterans'
    17  organization" shall mean any incorporated post, branch, camp,
    18  detachment, lodge or other subordinate unit of a national
    19  veterans' organization having one hundred or more paid up
    20  members and organized for a period of at least three years prior
    21  to filing the application for a license.
    22     (c)  When the charter of an incorporated unit of a national
    23  veterans' organization is suspended or revoked, the retail
    24  license of the organization shall also be suspended or revoked.
    25  The retail license of an incorporated unit of a national
    26  veterans' organization is not transferable to any other
    27  organization or person.
    28     Section 62.  Section 462 of the act is reenacted and amended   <--
    29  to read:
    30     Section 462.  Licensed Places May Be Closed During Period of
    19870H1000B1864                 - 136 -

     1  Emergency.--The [board] commission may, with the approval of the  <--
     2  Governor,
     3     (a)  Temporarily close all licensed places within any
     4  municipality during any period of emergency proclaimed to be
     5  such by the Governor.
     6     (b)  Advance by one hour the hours prescribed in this act as
     7  the hours during which liquor and malt or brewed beverages may
     8  be sold in any municipality during such part of the year when
     9  daylight saving time may be observed generally in such
    10  municipality.
    11     Section 63.  Section 463 of the act, amended November 17,
    12  1967 (P.L.510, No.247), March 23, 1972 (P.L.122, No.46) and May
    13  9, 1984 (P.L.246, No.54), is reenacted and amended to read:       <--
    14     Section 463.  Places of Amusement Not To Be Licensed;
    15  Penalty.--(a)  No license for the sale of liquor or malt or
    16  brewed beverages in any quantity shall be granted to the
    17  proprietors, lessees, keepers or managers of any theater,
    18  circus, museum or other place of amusement, nor shall any house
    19  be licensed for the sale of liquor or malt or brewed beverages
    20  which has passage or communication to or with any theater,
    21  circus, museum or other place of amusement, and any license
    22  granted contrary to this act shall be null and void. Nothing
    23  contained in this section shall be construed as denying to the
    24  [board] commission the right to grant a restaurant liquor         <--
    25  license regardless of quota restrictions to the owner or
    26  operator of a restaurant in a building on a plot of ground owned
    27  or possessed under lease by a corporation incorporated under the
    28  laws of this Commonwealth and used principally by such
    29  corporation for holding outdoor sport events wherein such events
    30  are held under a license issued as provided by law to such
    19870H1000B1864                 - 137 -

     1  corporation by a department, board or commission of the
     2  Commonwealth of Pennsylvania. The restaurant liquor license
     3  aforementioned shall be subject to all the conditions and
     4  restrictions herein applicable to restaurant liquor licenses,
     5  except the above prohibition against any passageway or
     6  communication between such licensed premises and the place of
     7  amusement.
     8     Nothing contained in this act shall be construed as denying
     9  to the [board] commission the right to grant a new restaurant     <--
    10  liquor license, regardless of quota restrictions, at any time,
    11  to the owner or operator of a restaurant in a building or plot
    12  of ground having a seating capacity in excess of twenty-five
    13  thousand, used principally for holding automobile races.
    14     (a.1)  Nothing contained in subsection (a) of this section or
    15  in section 102 of this act shall be construed as denying to the
    16  [board] commission the right to grant a club or restaurant        <--
    17  liquor or malt and brewed beverage license to a club
    18  incorporated in this Commonwealth which has been in existence
    19  less than one year prior to making application under this
    20  section or to a restaurant either of which has a clubhouse or
    21  restaurant located in a stadium or arena having an available
    22  seating capacity of twelve thousand or more and owned and
    23  operated by or pursuant to an agreement with any city of the
    24  first class or created and operated under and in compliance with
    25  the act of July 29, 1953 (P.L.1034), known as the "Public
    26  Auditorium Authorities Law," and used principally for events at
    27  which athletes compete or other types of performers entertain.
    28  The club or restaurant liquor or malt and brewed beverage
    29  license aforementioned shall be subject to all the conditions
    30  and restrictions applicable to such licenses and licenses for
    19870H1000B1864                 - 138 -

     1  places of amusement, except the above prohibition against any
     2  passageway or communication between such licensed premises and
     3  the place of amusement.
     4     (a.2)  Nothing contained in this act shall be construed to
     5  prevent the holder of a hotel, restaurant liquor or malt and
     6  brewed beverage license from selling liquor and malt or brewed
     7  beverages in a bowling alley, or other recreational areas
     8  including, but no limited to, game rooms and video arcade areas
     9  of hotels, when no minors are present, unless minors who are
    10  present are under proper supervision as defined in section 493,
    11  where the restaurant, bowling alley, or other recreational areas
    12  including, but not limited to, game rooms and video arcade areas
    13  of hotels are immediately adjacent and under the same roof. The
    14  restaurant liquor or malt and brewed beverage licensee
    15  aforementioned shall be subject to all the conditions and
    16  restrictions applicable to such restaurant licenses except the
    17  above prohibition against any passageway or communication
    18  between a licensed premise and a place of amusement.
    19     (b)  Any proprietor, lessee, keeper or manager of any
    20  theater, circus, museum or other place of amusement, or any
    21  other person who shall violate the provisions of this section,
    22  shall be guilty of a misdemeanor and, upon conviction thereof,
    23  shall be sentenced to pay a fine of one hundred dollars and to
    24  undergo an imprisonment of not less than thirty days.
    25     Section 64.  Section 464 of the act, amended June 3, 1971
    26  (P.L.118, No.6), is reenacted and amended to read:
    27     Section 464.  Hearings Upon Refusal of Licenses, Renewals or
    28  Transfers; Appeals.--(a)  The [board] commission may of its own   <--
    29  motion, and shall upon the written request of any applicant for
    30  club, hotel or restaurant liquor license, or any applicant for
    19870H1000B1864                 - 139 -

     1  any malt or brewed beverage license other than a public service
     2  license, or for renewal or transfer thereof, whose application
     3  for such license, renewal or transfer has been refused, fix a
     4  time and place for hearing of such application for license or
     5  for renewal or transfer thereof, notice of which hearing shall
     6  be mailed to the applicant at the address given in his
     7  application. Such hearing shall be before [the board, a member
     8  thereof, or an examiner designated by the board] an               <--
     9  administrative law judge A HEARING EXAMINER DESIGNATED BY THE     <--
    10  BOARD. At such hearing, the [board] commission shall present its  <--
    11  reasons for its refusal or withholding of license, renewal or
    12  transfer thereof. The applicant may appear in person or by
    13  counsel, may cross-examine the witnesses for the [board]          <--
    14  commission and may present evidence which shall likewise be
    15  subject to cross-examination by the [board] commission. Such      <--
    16  hearing shall be stenographically recorded. The [examiner]        <--
    17  administrative law judge shall thereafter report to the [board]   <--
    18  commission upon such hearing. The [board] commission shall        <--
    19  thereupon grant or refuse the license, renewal or transfer
    20  thereof. In considering the renewal of a license, the [board]     <--
    21  commission shall not refuse any such renewal on the basis of the
    22  propriety of the original issuance or any prior renewal of such
    23  license. If the [board] commission shall refuse such license,     <--
    24  renewal or transfer following such hearing, notice in writing of
    25  such refusal shall be mailed to the applicant at the address
    26  given in his application. In all such cases, the [board]          <--
    27  commission shall file of record at least a brief statement in
    28  the form of an opinion of the reasons for the ruling or order
    29  and furnish a copy thereof to the applicant. Any applicant who
    30  has appeared [before the board or any agent thereof] at any
    19870H1000B1864                 - 140 -

     1  hearing, as above provided, who is aggrieved by the refusal of
     2  the [board] commission to issue any such license or to renew or   <--
     3  transfer any such license may appeal, or any church, hospital,
     4  charitable institution, school or public playground located
     5  within three hundred feet of the premises applied for, aggrieved
     6  by the action of the [board] commission in granting the issuance  <--
     7  of any such license or the transfer of any such license, may
     8  take an appeal limited to the question of such grievance, within
     9  twenty days from date of refusal or grant, to the court of
    10  [quarter sessions] common pleas of the county in which the
    11  premises applied for is located [or the county court of
    12  Allegheny County]. Such appeal shall be upon petition of the
    13  aggrieved party, who shall serve a copy thereof upon the [board]  <--
    14  commission, whereupon a hearing shall be held upon the petition
    15  by the court upon ten days' notice to the [board[, which shall    <--
    16  be represented in the proceeding by the Department of Justice]
    17  commission. The said appeal shall act as a supersedeas unless     <--
    18  upon sufficient cause shown the court shall determine otherwise.
    19  The court shall hear the application de novo on questions of
    20  fact, administrative discretion and such other matters as are
    21  involved, at such time as it shall fix, of which notice shall be
    22  given to the [board] commission. The court shall either sustain   <--
    23  or over-rule the action of the [board] commission and either      <--
    24  order or deny the issuance of a new license or the renewal or
    25  transfer of the license to the applicant.
    26     (b)  [The jurisdiction of the county court of Allegheny        <--
    27  County conferred hereby shall be exclusive within the
    28  territorial limits of its jurisdiction.]                          <--
    29     Section 65.  Sections 465 and 466 of the act are reenacted
    30  and amended to read:                                              <--
    19870H1000B1864                 - 141 -

     1     Section 465.  All Licensees to Furnish Bond.--(a)  No license
     2  shall be issued to any applicant under the provisions of this
     3  article until such applicant has filed with the [board]           <--
     4  commission an approved bond and a warrant of attorney to confess
     5  judgment payable to the Commonwealth of Pennsylvania in the
     6  amount hereinafter prescribed.
     7     (b)  Bonds of all such applicants shall have as surety a
     8  surety company authorized to do business in this Commonwealth,
     9  or shall have deposited therewith, as collateral security, cash
    10  or negotiable obligations of the United States of America or the
    11  Commonwealth of Pennsylvania in the same amount as herein
    12  provided for the penal sum of bonds. In all cases where cash or
    13  securities in lieu of other surety have been deposited with the
    14  [board] commission, the depositor shall be permitted to continue  <--
    15  the same deposit from year to year on each renewal of license,
    16  but in no event shall he be permitted to withdraw his deposit
    17  during the time he holds said license, or until six months after
    18  the expiration of the license held by him, or while revocation
    19  proceedings are pending against such license. All cash or
    20  securities received by the [board] commission in lieu of other    <--
    21  surety shall be turned over by the [board] commission to the      <--
    22  State Treasurer and held by him. The State Treasurer shall repay
    23  or return money or securities deposited with him to the
    24  respective depositors only on the order of the [board]            <--
    25  commission.
    26     (c)  No such bond shall be accepted until approved by the
    27  [board] commission. All such bonds shall be conditioned for the   <--
    28  faithful observance of all the laws of this Commonwealth
    29  relating to liquor, alcohol and malt or brewed beverages and the
    30  regulations of the [board] commission. All bonds shall be         <--
    19870H1000B1864                 - 142 -

     1  retained by the [board] commission.                               <--
     2     (d)  The penal sum of the respective bonds filed under the
     3  provisions of this section shall be as follows:
     4     (1)  Manufacturers of malt or brewed beverages, ten thousand
     5  dollars ($10,000.00) for each place at which the licensee is
     6  authorized to manufacture.
     7     (2)  Liquor importers, ten thousand dollars ($10,000.00) for
     8  each license.
     9     (3)  Sacramental wine licensees, ten thousand dollars
    10  ($10,000.00).
    11     (4)  Importing distributors of malt or brewed beverages, two
    12  thousand dollars ($2,000.00).
    13     (5)  Hotel, restaurant, club and public service liquor
    14  licensees, two thousand dollars ($2,000.00), but in the case of
    15  a railroad or pullman company, such penal sum shall cover every
    16  dining, club or buffet car of such company operated under such
    17  license.
    18     (6)  Distributors of malt or brewed beverages, one thousand
    19  dollars ($1,000.00).
    20     (7)  Retail dispensers and public service malt or brewed
    21  beverage licensees, one thousand dollars ($1,000.00) for each
    22  place at which the licensee is authorized to sell malt or brewed
    23  beverages, except that in the case of railroad or pullman
    24  companies, said penal sum shall be one thousand dollars
    25  ($1,000.00), irrespective of the number of licensed cars
    26  operated by the company.
    27     (e)  Every such bond may be forfeited when a license is
    28  revoked and shall be turned over to the Attorney General for
    29  collection if and when the licensee's license shall have been
    30  revoked and his bond forfeited as provided in this act.
    19870H1000B1864                 - 143 -

     1     Section 466.  Disposition of Cash and Securities Upon
     2  Forfeiture of Bond.--After notice from the [board] commission     <--
     3  that any of the aforesaid bonds have been forfeited, the State
     4  Treasurer shall immediately pay into The State Stores Fund all
     5  cash deposited as collateral with such bond, and when securities
     6  have been deposited with such bond, the State Treasurer shall
     7  sell, at private sale, at not less than the prevailing market
     8  price, any such securities so deposited as collateral with such
     9  forfeited bond. The State Treasurer shall thereafter deposit in
    10  The State Stores Fund the net amount realized from the sale of
    11  such securities, except that if the amount so realized, after
    12  deducting proper costs and expenses, is in excess of the penal
    13  amount of the bond, such excess shall be paid over by him to the
    14  obligor on such forfeited bond.
    15     Section 65.1.  Section 467 of the act is reenacted to read:
    16     Section 467.  Display of License.--Every license issued under
    17  this article shall be constantly and conspicuously exposed under
    18  transparent substance on the licensed premises and no license
    19  shall authorize sales until this section has been complied with.
    20     Section 66.  Section 468 of the act, amended November 26,
    21  1978 (P.L.1389, No.326) and June 24, 1982 (P.L.624, No.176), is
    22  reenacted and amended to read:
    23     Section 468.  Licenses Not Assignable; Transfers.--(a)
    24  Licenses issued under this article may not be assigned. The
    25  [board] commission, upon payment of the transfer filing fee and   <--
    26  the execution of a new bond, is hereby authorized to transfer
    27  any license issued by it under the provisions of this article
    28  from one person to another or from one place to another, or
    29  both, within the same municipality, and if the applicant is a
    30  unit of a nonprofit nationally chartered club, the [board]        <--
    19870H1000B1864                 - 144 -

     1  commission is hereby authorized to transfer such license to a
     2  place in any other municipality within the same county if the
     3  sale of liquor or malt and brewed beverages are legal in such
     4  other municipality as the [board] commission may determine.       <--
     5  Prior to the approval of an application for transfer by a unit
     6  of a nonprofit nationally chartered club the [board] commission   <--
     7  shall make an affirmative finding, upon proof submitted by the
     8  applicant, and after investigation by the [board] commission,     <--
     9  that at the time the application for transfer is made the club
    10  continues to hold a valid national charter and continues to
    11  function in fact as a club as defined in section 102. The
    12  [board] commission, in its discretion, may transfer an existing   <--
    13  restaurant retail dispenser or club license from one
    14  municipality to another in the same county regardless of the
    15  quota limitations provided for in this act, if sales of liquor
    16  or malt and brewed beverages are legal in such other
    17  municipality and if the restaurant retail dispenser or club lost
    18  the use of the building in which it was located due to
    19  governmental exercise of the right of eminent domain and no
    20  other suitable building can be found in the first municipality.
    21  In the case of distributor and importing distributor licenses,
    22  the [board] commission may transfer any such license from its     <--
    23  place in a municipality to a place in any other municipality
    24  within the same county, or from one place to another place
    25  within the same municipality, or exchange a distributor license
    26  for an importing distributor license or an importing distributor
    27  license for a distributor license, if the building for which the
    28  license is to be issued has, in the case of an importing
    29  distributor license, an area under one roof of two thousand five
    30  hundred square feet and, in the case of a distributor license,
    19870H1000B1864                 - 145 -

     1  an area under one roof of one thousand square feet: And
     2  provided, That, in the case of all transfers of distributor or
     3  importing distributor licenses, whether from a place within the
     4  same municipality to another place within the same municipality
     5  or from a place in a municipality to a place in any other
     6  municipality within the same county, and, in the case of an
     7  exchange of a distributor license for an importing distributor
     8  license or an importing distributor license for a distributor
     9  license, the premises to be affected by the transfer or exchange
    10  shall contain an office separate and apart from the remainder of
    11  the premises to be licensed for the purpose of keeping records,
    12  required by the [board] commission, adequate toilet facilities    <--
    13  for employes of the licensee and an entrance on a public
    14  thoroughfare: Provided, however, That in the event that the
    15  majority of the voting electors of a municipality, at an
    16  election held under the provisions of any law so empowering them
    17  to do, shall vote against the issuance of distributor or
    18  importing distributor licenses in such municipality, the [board]  <--
    19  commission is hereby authorized to transfer any such distributor
    20  or importing distributor license from its place in such
    21  municipality to a place in any other municipality within the
    22  same county, upon application prior to the expiration of any
    23  such license and upon payment of the transfer filing fee and the
    24  execution of a new bond; but no transfer shall be made to a
    25  person who would not have been eligible to receive the license
    26  originally nor for the transaction of business at a place for
    27  which the license could not lawfully have been issued
    28  originally, nor, except as herein provided, to a place as to
    29  which a license has been revoked. No license shall be
    30  transferred to any place or property upon which is located as a
    19870H1000B1864                 - 146 -

     1  business the sale of liquid fuels and oil. Except in cases of
     2  emergency such as death, serious illness, or circumstances
     3  beyond the control of the licensee, as the [board] commission     <--
     4  may determine such circumstances to justify its action,
     5  transfers of licenses may be made only at times fixed by the
     6  [board] commission. In the case of the death of a licensee, the   <--
     7  [board] commission may transfer the license to the surviving      <--
     8  spouse or personal representative or to a person designated by
     9  him. From any refusal to grant a transfer or upon the grant of
    10  any transfer, the party aggrieved shall have the right of appeal
    11  to the proper court in the manner hereinbefore provided. The      <--
    12  commission shall not authorize the transfer of any license under
    13  this subsection where the application for transfer has been
    14  denied by an administrative law judge pursuant to section 404.
    15     (b.1)  In the event that any person to whom a license shall
    16  have been issued under the provisions of this article shall
    17  become insolvent, make an assignment for the benefit of
    18  creditors, become bankrupt by either voluntary or involuntary
    19  action, the license of such person shall be immediately placed
    20  in safekeeping with the [board] commission for the balance of     <--
    21  the term of the license and for an additional period of one year
    22  upon application to the [board] commission by the trustee,        <--
    23  receiver, or assignee. The trustee, receiver, or assignee shall
    24  have, during said period of safekeeping, the same rights,
    25  benefits and obligations as to the license as the person to whom
    26  the license had been issued, including the right to transfer the
    27  license subject to the approval of the [board] commission. The    <--
    28  license shall continue as a personal privilege granted by the
    29  [board] commission and nothing herein shall constitute the        <--
    30  license as property.
    19870H1000B1864                 - 147 -

     1     (c)  (1)  The term "nonprofit nationally chartered club"
     2  shall mean any club which does not contemplate pecuniary gain or
     3  profit, incidental or otherwise, having a national charter.
     4     (2)  The term "unit of a nonprofit nationally chartered club"
     5  shall mean any post, branch, lodge or other subordinate unit of
     6  a nonprofit nationally chartered club.
     7     (D)  THE LICENSE SHALL CONSTITUTE A PRIVILEGE BETWEEN THE      <--
     8  BOARD AND THE LICENSEE. AS BETWEEN THE LICENSEE AND THIRD
     9  PARTIES, THE LICENSE SHALL CONSTITUTE PROPERTY.
    10     Section 67.  Section 469 of the act, amended September 28,
    11  1961 (P.L.1728, No.702), is reenacted and amended to read:
    12     Section 469.  Applications for Transfers; Fees.--(a)  Every
    13  applicant for a transfer of a license under the provisions of
    14  this article shall file a written application with the [board]    <--
    15  commission, together with a filing fee of thirty dollars ($30)
    16  if the license to be transferred is a liquor license, and twenty
    17  dollars ($20) if the license is a malt or brewed beverage
    18  license. Such application shall be is such form and shall be
    19  filed at such times as the [board] commission shall in its        <--
    20  regulations prescribe. Each such applicant shall also file an
    21  approved bond as required on original applications for such
    22  licenses.
    23     (b)  Whenever any license is transferred, no license or other
    24  fees shall be required from the persons to whom such transfer is
    25  made for the balance of the then current license year, except
    26  the filing fee as herein provided.
    27     Section 68.  Section 470 of the act, amended August 1, 1969
    28  (P.L.219, No.87), is reenacted and amended to read:
    29     Section 470.  Renewal of Licenses; Temporary Provisions for
    30  Licensees in Armed Service.--(a)  All applications for renewal
    19870H1000B1864                 - 148 -

     1  of licenses under the provisions of this article shall be filed
     2  with a new bond, requisite license and filing fees at least
     3  sixty days before the expiration date of same: Provided,
     4  however, That the [board] commission, in its discretion, may      <--
     5  accept a renewal application filed less than sixty days before
     6  the expiration date of the license with the required bond and
     7  fees, upon reasonable cause shown and the payment of an
     8  additional filing fee of one hundred dollars ($100.00) for late
     9  filing: And provided further, That except where the failure to
    10  file a renewal application or before the expiration date has
    11  created a license quota vacancy after said expiration date which
    12  has been filled by the issuance of a new license, after such
    13  expiration date, but before the [board] commission has received   <--
    14  a renewal application within the time prescribed herein the
    15  [board] commission, in its discretion, may, after hearing,        <--
    16  accept a renewal application filed within ten months after the
    17  expiration date of the license with the required bond and fees
    18  upon the payment of an additional filing fee of two hundred
    19  fifty dollars ($250.00) for late filing. Where any such renewal
    20  application is filed less than sixty days before the expiration
    21  date, or subsequent to the expiration date, no license shall
    22  issue upon the filing of the renewal application until the
    23  matter is finally determined by the [board] commission and if an  <--
    24  appeal is taken from the [board's] commission's action the        <--
    25  courts shall not order the issuance of the renewal license until
    26  final determination of the matter by the courts. A renewal
    27  application will not be considered filed unless accompanied by a
    28  new bond and the requisite filing and license fees and any
    29  additional filing fee required by this section. Unless the
    30  [board] commission shall have given ten days' previous notice to  <--
    19870H1000B1864                 - 149 -

     1  the applicant of objections to the renewal of his license, based
     2  upon violation by the licensee or his servants, agents or
     3  employes of any of the laws of the Commonwealth or regulations
     4  of the [board] commission relating to the manufacture,            <--
     5  transportation, use, storage, importation, possession or sale of
     6  liquors, alcohol or malt or brewed beverages, or the conduct of
     7  a licensed establishment, or unless the applicant has by his own
     8  act become a person of ill repute, or unless the premises do not
     9  meet the requirements of this act or the regulations of the
    10  [board] commission, the license of a licensee shall be renewed.   <--
    11     (b)  In cases where a licensee or his servants, agents or
    12  employes are arrested, charged with violating any of the laws of
    13  this Commonwealth relating to liquor, alcohol or malt or brewed
    14  beverages, and where the [board] commission has on file in such   <--
    15  cases reports of [its] enforcement officers or investigators of
    16  the enforcement bureau or from other sources that a licensee or
    17  his servants, agents or employes have violated any of the
    18  aforementioned laws and a proceeding to revoke such licensee's
    19  license is or is about to be instituted, and such arrest occurs
    20  or report of violations is received or revocation proceeding
    21  instituted or about to be instituted during the time a renewal
    22  application of such license in pending before the [board]         <--
    23  commission, the [board] commission may, in its discretion, renew  <--
    24  the license, notwithstanding such alleged violations, but such
    25  renewal license may be revoked if and when the licensee or any
    26  of his servants, agents or employes are convicted of or plead
    27  guilty to violations under the previous license, as aforesaid,
    28  or if and when such previous license is for any reason revoked.
    29     In the event such renewal license is revoked by the [board]    <--
    30  commission, neither the license fee paid for such license nor
    19870H1000B1864                 - 150 -

     1  any part thereof shall be returned to the licensee, but the
     2  license bond filed with the application for such renewal of
     3  license shall not be forfeited.
     4     [(c)  Notwithstanding anything to the contrary in this
     5  section, any individual who holds a restaurant or hotel liquor
     6  license or a retail dispenser (hotel or eating place) malt or
     7  brewed beverage license in effect at the time such individual
     8  enters the armed forces of the United States of America, may
     9  surrender to the board for safekeeping the said license and, if
    10  surrendered, shall furnish the board with documentary evidence
    11  as to his entering such armed forces. Upon surrender of the
    12  license, the board shall, without the filing of an application
    13  for renewal or surety bond, the payment of filing and license
    14  fees, renew the said license from year to year and hold the same
    15  in its possession for the benefit of such licensee. A license so
    16  renewed by the board shall to all intents and purposes be
    17  considered as in full force and effect, notwithstanding the
    18  licensee is not exercising the privileges thereunder, and shall
    19  be returned to the said licensee at any time within one year
    20  from the date of his honorable discharge from the armed forces
    21  of the United States upon the filing of an application therefor,
    22  surety bond, and payment of the filing and license fees as
    23  hereinafter provided. The said application for return of license
    24  shall be on a form prescribed by the board, accompanied by a
    25  filing fee in the sum of ten dollars ($10.00) and the prescribed
    26  license fee, except that when such application is filed after a
    27  portion of the then current license term has elapsed, the
    28  license fee shall be prorated on a monthly basis for the balance
    29  of the license year: Provided, however, That the said license
    30  shall not be returned if the electors of the municipality in
    19870H1000B1864                 - 151 -

     1  which the licensed establishment is situate have voted against
     2  the granting of retail liquor licenses or against the granting
     3  of retail dispenser licenses, as the case may be, under the
     4  local option provision of this act. In the event the premises
     5  originally covered by the license are not available for
     6  occupancy by the licensee at the time he files his application
     7  for return of license, as hereinbefore provided, he shall be
     8  permitted to file an application for transfer of the license to
     9  other premises in the same municipality. Such transfer of the
    10  license shall be subject to all of the provisions of this act
    11  pertaining to the transfer of such licenses.
    12     This subsection (c) was enacted due to conditions caused by
    13  the present war and shall remain in effect only until the
    14  termination of said war and one year thereafter.]
    15     Section 69.  Sections 470.1 and 470.2 of the act are
    16  repealed.
    17     Section 70.  Section 471 of the act, amended January 13, 1966
    18  (1965 P.L.1301, No.518) and repealed in part June 3, 1971
    19  (P.L.118, No.6), is reenacted and amended to read:
    20     Section 471.  Revocation and Suspension of Licenses; Fines.--
    21  [Upon learning of any violation of this act or any laws of this
    22  Commonwealth relating to liquor, alcohol or malt or brewed
    23  beverages, or of any regulations of the board adopted pursuant
    24  to such laws, of any violation of any laws of this Commonwealth
    25  or of the United States of America relating to the tax-payment
    26  of liquor or malt or brewed beverages by any licensee within the
    27  scope of this article, his officers, servants, agents or
    28  employes, or upon any other sufficient cause shown, the board
    29  may, within one year from the date of such violation or cause
    30  appearing, cite such licensee to appear before it or its
    19870H1000B1864                 - 152 -

     1  examiner, not less than ten nor more than sixty days from the
     2  date of sending such licensee, by registered mail, a notice
     3  addressed to him at his licensed premises, to show cause why
     4  such license should not be suspended or revoked or a fine
     5  imposed. Hearings on such citations shall be held in the same
     6  manner as provided herein for hearings on applications for
     7  license. Upon such hearing, if satisfied that any such violation
     8  has occurred or for other sufficient cause, the board shall
     9  immediately suspend or revoke the license, or impose a fine of
    10  not less than fifty dollars ($50) nor more than one thousand
    11  dollars ($1,000), notifying the licensee by registered letter
    12  addressed to his licensed premises. In the event the fine is not
    13  paid within twenty days of the order the board shall suspend or
    14  revoke the license, notifying the licensee by registered mail
    15  addressed to his licensed premises. Suspensions and revocations
    16  shall not go into effect until twenty days have elapsed from the
    17  date of notice of issuance of the board's order, during which
    18  time the licensee may take an appeal as provided for in this
    19  act. When a license is revoked, the licensee's bond may be
    20  forfeited by the board. Any licensee whose license is revoked
    21  shall be ineligible to have a license under this act until the
    22  expiration of three years from the date such license was
    23  revoked. In the event the board shall revoke a license, no
    24  license shall be granted for the premises or transferred to the
    25  premises in which the said license was conducted for a period of
    26  at least one year after the date of the revocation of the
    27  license conducted in the said premises, except in cases where
    28  the licensee or a member of his immediate family is not the
    29  owner of the premises, in which case the board may, in its
    30  discretion, issue or transfer a license within the said year. In
    19870H1000B1864                 - 153 -

     1  all such cases, the board shall file of record at least a brief
     2  statement in the form of an opinion of the reasons for the
     3  ruling or order. In the event the person who was fined or whose
     4  license was suspended or revoked by the board shall feel
     5  aggrieved by the action of the board, he shall have the right to
     6  appeal to the court of quarter sessions or the county court of
     7  Allegheny County in the same manner as herein provided for
     8  appeals from refusals to grant licenses. Upon appeal, the court
     9  so appealed to shall, in the exercise of its discretion,
    10  sustain, reject, alter or modify the findings, conclusions and
    11  penalties of the board, based on the findings of fact and
    12  conclusions of law as found by the court. The aforesaid appeal
    13  shall act as a supersedeas unless upon sufficient cause shown
    14  the court shall determine otherwise. No penalty provided by this
    15  section shall be imposed by the board or any court for any
    16  violations provided for in this act unless the enforcement
    17  officer or the board notifies the licensee of its nature and of
    18  the date of the alleged violation within ten days of the
    19  completion of the investigation which in no event shall exceed
    20  ninety days.
    21     If the violation in question is a third or subsequent
    22  violation of this act or the act of June 24, 1939 (P.L.872),
    23  known as "The Penal Code," occurring within a period of four
    24  years the board shall impose a suspension or revocation.
    25     The jurisdiction of the county court of Allegheny County
    26  conferred hereby shall be exclusive within the territorial
    27  limits of its jurisdiction.] (a)  Upon learning of any violation
    28  of this act or any laws of this Commonwealth relating to liquor,
    29  alcohol or malt or brewed beverages, or of any regulations of
    30  the commission BOARD adopted pursuant to such laws, or any        <--
    19870H1000B1864                 - 154 -

     1  violation of any laws of this Commonwealth or of the Federal
     2  Government relating to the payment of taxes on liquor, alcohol
     3  or malt or brewed beverages by any licensee within the scope of
     4  this article, his officers, servants, agents or employes, or
     5  upon any other sufficient cause shown, the enforcement bureau
     6  may, within one year from the date of such violation or cause
     7  appearing, cite such licensee to appear before an administrative
     8  law judge, not less than ten nor more than sixty days from the
     9  date of sending such licensee, by registered mail, a notice
    10  addressed to him at his licensed premises, to show cause why
    11  such license should not be suspended or revoked or a fine
    12  imposed, or both. The bureau shall also send a copy of the
    13  hearing notice to the municipality in which the premises is
    14  located.
    15     (b)  Hearing on such citations shall be held in the same
    16  manner as provided herein for hearings on applications for
    17  license. Upon such hearing, if satisfied that any such violation
    18  has occurred or for other sufficient cause, the administrative
    19  law judge shall immediately suspend or revoke the license, or
    20  impose a fine of not less than fifty dollars ($50) nor more than
    21  one thousand dollars ($1,000), or both, notifying the licensee
    22  by registered letter addressed to his licensed premises. If the
    23  licensee has been cited and found to have violated SECTION        <--
    24  493(1) INSOFAR AS IT RELATES TO SALES TO MINORS, section 493(10)
    25  insofar as it relates to lewd, immoral or improper entertainment
    26  OR SECTION 493(14), (16) OR (21), or has been found to be a       <--
    27  public nuisance pursuant to section 611, or if the owner or
    28  operator of the licensed premises or any authorized agent of the
    29  owner or operator has been convicted of any violation of the act
    30  of April 14, 1972 (P.L.233, No.64), known as "The Controlled
    19870H1000B1864                 - 155 -

     1  Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §
     2  5902 (relating to prostitution and related offenses) or 6301
     3  (relating to corruption of minors), at or relating to the
     4  licensed premises, the administrative law judge shall
     5  immediately suspend or revoke the license, or impose a fine of
     6  not less than one thousand dollars ($1,000) nor more than five
     7  thousand dollars ($5,000), or both. The administrative law judge
     8  shall notify the licensee by registered mail, addressed to the
     9  licensed premises, of such suspension, revocation or fine. The
    10  increased civil penalty imposed by this subsection shall not be
    11  used to require any licensee to increase the amount of the bond
    12  required by this act. In the event the fine is not paid within
    13  twenty days of the adjudication, the administrative law judge
    14  shall suspend or revoke the license, notifying the licensee by
    15  registered mail addressed to the licensed premises. Suspensions
    16  and revocations shall not go into effect until thirty days have
    17  elapsed from the date of the adjudication during which time the
    18  licensee may take an appeal as provided for in this act. When a
    19  license is revoked, the licensee's bond may be forfeited. Any
    20  licensee whose license is revoked shall be ineligible to have a
    21  license under this act until the expiration of three years from
    22  the date such license was revoked. In the event a license is
    23  revoked, no license shall be granted for the premises or
    24  transferred to the premises in which the said license was
    25  conducted for a period of at least one year after the date of
    26  the revocation of the license conducted in the said premises,
    27  except in cases where the licensee or a member of his immediate
    28  family is not the owner of the premises, in which case the
    29  commission BOARD may, in its discretion, issue or transfer a      <--
    30  license within the said year. In the event the bureau or the
    19870H1000B1864                 - 156 -

     1  person who was fined or whose license was suspended or revoked
     2  shall feel aggrieved by the adjudication of the administrative
     3  law judge, there shall be a right to appeal to the BOARD. THE     <--
     4  APPEAL SHALL BE BASED SOLELY ON THE RECORD BEFORE THE
     5  ADMINISTRATIVE LAW JUDGE. THE BOARD SHALL AFFIRM THE DECISION OF
     6  THE ADMINISTRATIVE LAW JUDGE IF IT IS BASED ON SUBSTANTIAL
     7  EVIDENCE; OTHERWISE, THE BOARD SHALL REVERSE THE DECISION OF THE
     8  ADMINISTRATIVE LAW JUDGE. IN THE EVENT THE BUREAU OR THE PERSON
     9  WHO WAS FINED OR WHOSE LICENSE WAS SUSPENDED OR REVOKED SHALL
    10  FEEL AGGRIEVED BY THE DECISION OF THE BOARD, THERE SHALL BE A
    11  RIGHT TO APPEAL TO THE court of common pleas in the same manner
    12  as herein provided for appeals from refusals to grant licenses.
    13  The aforesaid appeal EACH OF THE APPEALS shall act as a           <--
    14  supersedeas unless upon sufficient cause shown the court          <--
    15  REVIEWING AUTHORITY shall determine otherwise; however, if the    <--
    16  licensee has been cited and found to have violated SECTION        <--
    17  493(1) INSOFAR AS IT RELATES TO SALES TO MINORS, section 493(10)
    18  insofar as it relates to lewd, immoral or improper entertainment
    19  OR SECTION 493(14), (16) OR (21), or has been found to be a       <--
    20  public nuisance pursuant to section 611, or if the owner or
    21  operator of the licensed premises or any authorized agent of the
    22  owner or operator has been convicted of any violation of "The
    23  Controlled Substance, Drug, Device and Cosmetic Act," or of 18
    24  Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
    25  its appeal shall not act as a supersedeas unless the court        <--
    26  REVIEWING AUTHORITY determines otherwise upon sufficient cause    <--
    27  shown. In any hearing on an application for a supersedeas under
    28  this section, the court REVIEWING AUTHORITY may consider, in      <--
    29  addition to other relevant evidence, documentary evidence,
    30  including records of the bureau, showing the prior history of
    19870H1000B1864                 - 157 -

     1  citations, fines, suspensions or revocations against the
     2  licensee; and the court REVIEWING AUTHORITY may also consider,    <--
     3  in addition to other relevant evidence, evidence of any
     4  recurrence of the unlawful activity occurring between the date
     5  of the citation which is the subject of the appeal and the date
     6  of the hearing by the court. No penalty provided by this section  <--
     7  shall be imposed for any violations provided for in this act
     8  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
    19870H1000B1864                 - 158 -

     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
    19870H1000B1864                 - 159 -

     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
    19870H1000B1864                 - 160 -

     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
    19870H1000B1864                 - 161 -

     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
    19870H1000B1864                 - 162 -

     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
    19870H1000B1864                 - 163 -

     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
    19870H1000B1864                 - 164 -

     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
    19870H1000B1864                 - 165 -

     1  NUMBER; AND
     2     (6)  A STATEMENT THAT:
     3     (I)  ALL STATE TAX REPORTS HAVE BEEN FILED AND ALL STATE
     4  TAXES PAID;
     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);
    19870H1000B1864                 - 166 -

     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
    19870H1000B1864                 - 167 -

     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
    19870H1000B1864                 - 168 -

     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
    19870H1000B1864                 - 169 -

     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,
    19870H1000B1864                 - 170 -

     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
    19870H1000B1864                 - 171 -

     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
    19870H1000B1864                 - 172 -

     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
    19870H1000B1864                 - 173 -

     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] commission.                                               <--
    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,
    19870H1000B1864                 - 174 -

     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] commission, advance by one hour the hours herein      <--
    24  prescribed as those during which malt or brewed beverages may be
    25  sold during such part of the year when daylight saving time is
    26  being observed generally in the municipality in which the place
    27  of 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.
    19870H1000B1864                 - 175 -

     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] commission and shall have     <--
    24  paid to the [board] commission such permit fee, not exceeding     <--
    25  one hundred dollars ($100), and shall have filed with the
    26  [board] commission a bond in the penal sum of not more than two   <--
    27  thousand dollars ($2000), as may be fixed by the rules and
    28  regulations of the [board] commission, any other law to the       <--
    29  contrary notwithstanding.
    30     (9)  Transportation of Malt or Brewed Beverages by Licensee.
    19870H1000B1864                 - 176 -

     1  For a malt or brewed beverage licensee, to deliver or transport
     2  any malt or brewed beverages, excepting in vehicles bearing the
     3  name and address and license number of such licensee painted or
     4  affixed on each side of such vehicle in letters no smaller than
     5  four inches in height.
     6     (10)  Importing or Transporting Malt or Brewed Beverages
     7  Without Tax Stamps. For any person, to transport within or
     8  import any malt or brewed beverages into this Commonwealth,
     9  except in accordance with the rules and regulations of the
    10  [board] commission, or for any person to transport malt or        <--
    11  brewed beverages into or within this Commonwealth, unless there
    12  shall be affixed to the original containers in which such malt
    13  or brewed beverages are transported, stamps or crowns evidencing
    14  the payment of the malt liquor tax to the Commonwealth:
    15  Provided, however, That this clause shall not be construed to
    16  prohibit transportation of malt or brewed beverages through this
    17  Commonwealth and not for delivery therein, if such transporting
    18  is done in accordance with the rules and regulations of the
    19  [board] commission.                                               <--
    20     (11)  Delivery of Malt or Brewed Beverages With Other
    21  Commodities. For any manufacturer, importing distributor or
    22  distributor, or his servants, agents or employes, except with
    23  [board] commission approval, to deliver or transport any malt or  <--
    24  brewed beverages in any vehicle in which any other commodity is
    25  being transported.
    26     (12)  Distributors and Importing Distributors Engaging in
    27  Other Business. For any distributor or importing distributor, or
    28  his servants, agents or employes, without the approval of the
    29  [board] commission, and then only in accordance with [board]      <--
    30  commission regulations, to engage in any other business
    19870H1000B1864                 - 177 -

     1  whatsoever, except the business of distributing malt or brewed
     2  beverages.
     3     (13)  Possession or Storage of Liquor or Alcohol by Certain
     4  Licensees. For any distributor, importing distributor or retail
     5  dispenser, or his servants, agents or employes, to have in his
     6  possession, or to permit the storage of on the licensed premises
     7  or in any place contiguous or adjacent thereto accessible to the
     8  public or used in connection with the operation of the licensed
     9  premises, any alcohol or liquor.
    10     (14)  Malt or Brewed Beverage Licensees Dealing in Liquor or
    11  Alcohol. For any malt or brewed beverage licensee, other than a
    12  manufacturer, or the servants, agents or employes thereof, to
    13  manufacture, import, sell, transport, store, trade or barter in
    14  any liquor or alcohol.
    15     (15)  Selling to Persons Doing Illegal Business. For any malt
    16  or brewed beverage licensee, or his servants, agents or
    17  employes, to knowingly sell any malt or brewed beverages to any
    18  person engaged in the business of illegally selling liquor or
    19  malt or brewed beverages.
    20     (16)  Distributors and Importing Distributors Failing to Keep
    21  Records. For any importing distributor or distributor engaged in
    22  the sale of products, other than malt or brewed beverages, to
    23  fail to keep such complete separate records covering in every
    24  respect his transactions in malt or brewed beverages as the
    25  [board] commission shall by regulation require.                   <--
    26     (17)  Fortifying, Adulterating or Contaminating Malt or
    27  Brewed Beverages. For any person, to fortify, adulterate,
    28  contaminate, or in any wise to change the character or purity
    29  of, the malt or brewed beverages from that as originally
    30  marketed by the manufacturer at the place of manufacture.
    19870H1000B1864                 - 178 -

     1     (18)  Coercing Distributors and Importing Distributors. For
     2  any manufacturer or any officer, agent or representative of any
     3  manufacturer to coerce or persuade or attempt to coerce or
     4  persuade any person licensed to sell or distribute malt or
     5  brewed beverages at wholesale or retail to establish selling
     6  prices for its products or to enter into any contracts or
     7  agreements, whether written or oral, or take any action which
     8  will violate or tend to violate any provisions of this act or
     9  any of the rules or regulations promulgated by the [board]        <--
    10  commission pursuant thereto.
    11     (19)  Modifying or Terminating Distributing Rights Agreement.
    12  For any manufacturer or any officer, agent or representative of
    13  any manufacturer to modify, cancel, terminate, rescind or not
    14  renew, without good cause, any distributing rights agreement,
    15  and in no event shall any modification, cancellation,
    16  termination, rescission or nonrenewal of any distributing rights
    17  agreement become effective for at least ninety (90) days after
    18  written notice of such modification, cancellation, termination,
    19  rescission or intention not to renew has been served on the
    20  affected party and [board] commission by certified mail, return   <--
    21  receipt requested, except by written consent of the parties to
    22  the agreement. The notice shall state all the reasons for the
    23  intended modification, termination, cancellation, rescission or
    24  nonrenewal. The distributor or importing distributor holding
    25  such agreement shall have ninety (90) days in which to rectify
    26  any claimed deficiency, or challenge the alleged cause.
    27     If the deficiency shall be rectified within ninety (90) days
    28  of notice, then the proposed modification, termination,
    29  cancellation, rescission or nonrenewal shall be null and void
    30  and without legal effect.
    19870H1000B1864                 - 179 -

     1     If the notice states as one of the reasons for the intended
     2  modification, cancellation, termination, rescission or renewal
     3  that the importing distributor or distributor's equipment or
     4  warehouse requires major changes or additions, then if the
     5  distributor or importing distributor shall have taken some
     6  positive action to comply with the required changes or
     7  additions, the distributor or importing distributor shall have
     8  deemed to have complied with the deficiency as set forth in the
     9  notice. The notice provisions of this section shall not apply if
    10  the reason for termination, cancellation or nonrenewal is
    11  insolvency, assignment for the benefit of creditors, bankruptcy,
    12  liquidation, fraudulent conduct in its dealings with the
    13  manufacturer, revocation or suspension for more than a thirty
    14  (30) day period of the importing distributor or distributor
    15  license.
    16     (20)  Interference with Transfer of License, Business or
    17  Franchise. (i) For any manufacturer to interfere with or prevent
    18  any distributor or importing distributor from selling or
    19  transferring his license, business or franchise, whether before
    20  or after notice of modification, cancellation, termination,
    21  rescission or nonrenewal has been given, provided the proposed
    22  purchaser of the business of the distributor or importing
    23  distributor meets the material qualifications and standards
    24  required of the manufacturers other distributors or importing
    25  distributors; (ii) if the proposed transfer of the distributor
    26  or importing distributor's business is to a surviving spouse or
    27  adult child, the manufacturer shall not, for any reason,
    28  interfere with, or prevent, the transfer of the distributor or
    29  importing distributor's license, business or franchise. Any
    30  subsequent transfer by surviving spouse or adult child shall
    19870H1000B1864                 - 180 -

     1  thereafter be subject to the provisions of subclause (i) above.
     2     (21)  Inducing or Coercing Distributors or Importing
     3  Distributors to Accept Unordered Products or Commit Illegal
     4  Acts. For any manufacturer to compel or attempt to compel any
     5  distributor or importing distributor to accept delivery of any
     6  malt or brewed beverages or any other commodity which shall not
     7  have been ordered by the distributor or importing distributor,
     8  or to do any illegal act by any means whatsoever including, but
     9  not limited to, threatening to amend, cancel, terminate, rescind
    10  or refuse to renew any agreement existing between manufacturer
    11  and the distributor or importing distributor, or to require a
    12  distributor or importing distributor to assent to any condition,
    13  stipulation or provision limiting the distributor or importing
    14  distributor in his right to sell the products of any other
    15  manufacturer.
    16     Section 81.  Section 493 of the act, amended June 14, 1957
    17  (P.L.322, No.170), June 15, 1961 (P.L.423, No.211), September
    18  25, 1967 (P.L.307, No.135), March 5, 1970 (P.L.137, No.55),
    19  August 1, 1975 (P.L.161, No.83), March 9, 1982 (P.L.174, No.55)
    20  and May 9, 1984 (P.L.246, No.54), is reenacted and amended to
    21  read:
    22     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    23  Brewed Beverages and Licensees.--The term "licensee," when used
    24  in this section, shall mean those persons licensed under the
    25  provisions of Article IV, unless the context clearly indicates
    26  otherwise.
    27     It shall be unlawful--
    28     (1)  Furnishing Liquor or Malt or Brewed Beverages to Certain
    29  Persons. For any licensee or the [board] commission, or any       <--
    30  employe, servant or agent of such licensee or of the [board]      <--
    19870H1000B1864                 - 181 -

     1  commission, or any other person, to sell, furnish or give any
     2  liquor or malt or brewed beverages, or to permit any liquor or
     3  malt or brewed beverages to be sold, furnished or given, to any
     4  person visibly intoxicated, or to any insane person, or to any
     5  minor, or to habitual drunkards, or persons of known intemperate
     6  habits.
     7     (2)  Purchase or Sale of Liquor or Malt or Brewed Beverages
     8  on Credit. For any licensee, his agent, servant or employe, to
     9  sell or offer to sell or purchase or receive any liquor or malt
    10  or brewed beverages except for cash, excepting credit extended
    11  by a hotel or club to a bona fide guest or member, or by
    12  railroad or pullman companies in dining, club or buffet cars to
    13  passengers, for consumption while enroute, holding authorized
    14  credit cards issued by railroad or railroad credit bureaus or by
    15  hotel, restaurant and public service licensees to customers
    16  holding credit cards issued in accordance with regulations of
    17  the [board] commission or credit cards issued by banking          <--
    18  institutions subject to State or Federal regulation: Provided
    19  further, That nothing herein contained shall be construed to
    20  prohibit the use of checks or drafts drawn on a bank, banking
    21  institution, trust company or similar depository, organized and
    22  existing under the laws of the United States of America or the
    23  laws of any state, territory or possession thereof, in payment
    24  for any liquor or malt or brewed beverages if the purchaser is
    25  the payor of the check or draft and the licensee is the payee.
    26  No right of action shall exist to collect any claim for credit
    27  extended contrary to the provisions of this clause. Nothing
    28  herein contained shall prohibit a licensee from crediting to a
    29  purchaser the actual price charged for original containers
    30  returned by the original purchaser as a credit on any sale, or
    19870H1000B1864                 - 182 -

     1  from refunding to any purchaser the amount paid by such
     2  purchaser for such containers or as a deposit on containers when
     3  title is retained by the vendor, if such original containers
     4  have been returned to the licensee. Nothing herein contained
     5  shall prohibit a manufacturer from extending usual and customary
     6  credit for liquor or malt or brewed beverages sold to customers
     7  or purchasers who live or maintain places of business outside of
     8  the Commonwealth of Pennsylvania, when the liquor or malt or
     9  brewed beverages so sold are actually transported and delivered
    10  to points outside of the Commonwealth: Provided, however, That
    11  as to all transactions affecting malt or brewed beverages to be
    12  resold or consumed within this Commonwealth, every licensee
    13  shall pay and shall require cash deposits on all returnable
    14  original containers and all such cash deposits shall be refunded
    15  upon return of the original containers.
    16     (3)  Exchange of Liquor or Malt or Brewed Beverages For
    17  Merchandise, etc. For any licensee or the [board] commission, or  <--
    18  any employe, servant or agent of a licensee or of the [board]     <--
    19  commission, to sell, offer to sell or furnish any liquor or malt
    20  or brewed beverages to any person on a pass book or store order,
    21  or to receive from any person any goods, wares, merchandise or
    22  other articles in exchange for liquor or malt or brewed
    23  beverages.
    24     (4)  Peddling Liquor or Malt or Brewed Beverages. For any
    25  person, to hawk or peddle any liquor or malt or brewed beverages
    26  in this Commonwealth.
    27     (5)  Failure to Have Brands as Advertised. For any licensee,
    28  his servants, agents or employes, to advertise or hold out for
    29  sale any liquor or malt or brewed beverages by trade name or
    30  other designation which would indicate the manufacturer or place
    19870H1000B1864                 - 183 -

     1  of production of the said liquor or malt or brewed beverages,
     2  unless he shall actually have on hand and for sale a sufficient
     3  quantity of the particular liquor or malt or brewed beverages so
     4  advertised to meet requirements to be normally expected as a
     5  result of such advertisement or offer.
     6     (6)  Brand or Trade Name on Spigot. For any licensee, his
     7  agents, servants or employes, to furnish or serve any malt or
     8  brewed beverages from any faucet, spigot or other dispensing
     9  apparatus, unless the trade name or brand of the product served
    10  shall appear in full sight of the customer and in legible
    11  lettering upon such faucet, spigot or dispensing apparatus.
    12     (7)  Alcoholic Strength on Label of Malt or Brewed Beverages.
    13  For any licensee, or his servants, agents or employes, to
    14  transport, sell, deliver or purchase any malt or brewed
    15  beverages upon which there shall appear a label or other
    16  informative data which in any manner refers to the alcoholic
    17  contents of the malt or brewed beverage, or which refers in any
    18  manner to the original alcoholic strength, extract or balling
    19  proof from which such malt or brewed beverage was produced. This
    20  clause shall not be construed to prohibit a manufacturer from
    21  designating upon the label or descriptive data the alcoholic
    22  content of malt or brewed beverages intended for shipment into
    23  another state or territory, when the laws of such state or
    24  territory require that the alcoholic content of the malt or
    25  brewed beverage must be stated upon the package.
    26     (8)  Advertisements on Labels Giving Alcoholic Content of
    27  Malt or Brewed Beverages. For any manufacturer or other
    28  licensee, or his servants, agents or employes, to issue, publish
    29  or post, or cause to be issued, published or posted, any
    30  advertisement of any malt or brewed beverage including a label
    19870H1000B1864                 - 184 -

     1  which shall refer in any manner to the alcoholic strength of the
     2  malt or brewed beverage manufactured, sold or distributed by
     3  such licensees, or to use in any advertisement or label such
     4  words as "full strength," "extra strength," "high test," "high
     5  proof," "pre-war strength," or similar words or phrases, which
     6  would lead or induce a consumer to purchase a brand of malt or
     7  brewed beverage on the basis of its alcoholic content, or to use
     8  in or on any advertisement or label any numeral, unless
     9  adequately explained in type of the same size, prominence and
    10  color, or for any licensee to purchase, transport, sell or
    11  distribute any malt or brewed beverage advertised or labeled
    12  contrary to the provisions of this clause.
    13     (9)  Retail Licensees Furnishing Free Lunch, etc. For any
    14  retail liquor licensee or any retail dispenser, his agents,
    15  servants or employes, to furnish, give or sell below a fair cost
    16  any lunch to any consumer, except such articles of food as the
    17  [board] commission may authorize and approve.                     <--
    18     (10)  Entertainment on Licensed Premises (Except Clubs);
    19  Permits; Fees. For any licensee, his servants, agents or
    20  employes, except club licensees, to permit in any licensed
    21  premises or in any place operated in connection therewith,
    22  dancing, theatricals or floor shows of any sort, or moving
    23  pictures other than television, or such as are exhibited through
    24  machines operated by patrons by the deposit of coins, which
    25  project pictures on a screen not exceeding in size twenty-four
    26  by thirty inches and which forms part of the machine, unless the
    27  licensee shall first have obtained from the [board] commission a  <--
    28  special permit to provide such entertainment, or for any
    29  licensee, under any circumstances, to permit in any licensed
    30  premises any lewd, immoral or improper entertainment, regardless
    19870H1000B1864                 - 185 -

     1  of whether a permit to provide entertainment has been obtained
     2  or not. The [board] commission shall have power to provide for    <--
     3  the issue of such special permits, and to collect a fee for such
     4  permits equal to one-fifth of the annual license fee but not
     5  less than twenty-five dollars ($25). All such fees shall be paid
     6  into The State Stores Fund. No such permit shall be issued in
     7  any municipality which, by ordinance, prohibits amusements in
     8  licensed places. Any violation of this clause shall, in addition
     9  to the penalty herein provided, subject the licensee to
    10  suspension or revocation of his permit and his license.
    11     (11)  Licensees Employed by Others. For any hotel, restaurant
    12  or club liquor licensee, or any malt or brewed beverage
    13  licensee, or any servant, agent or employe of such licensee, to
    14  be at the same time employed, directly or indirectly, by any
    15  other person engaged in the manufacture, sale, transportation or
    16  storage of liquor, malt or brewed beverages or alcohol:
    17  Provided, That any person (except a licensee or the manager,
    18  officer or director of a licensee) who is employed by a retail
    19  licensee to prepare or serve food and beverages may be employed
    20  in the same capacity by another retail licensee during other
    21  hours or on other days.
    22     (12)  Failure to Have Records on Premises. For any liquor
    23  licensee, or any importing distributor, distributor or retail
    24  dispenser, to fail to keep on the licensed premises for a period
    25  of at least two years complete and truthful records covering the
    26  operation of his licensed business, particularly showing the
    27  date of all purchases of liquor and malt or brewed beverages,
    28  the actual price paid therefor, and the name of the vendor,
    29  including State Store receipts, or for any licensee, his
    30  servants, agents or employes, to refuse the [board] commission    <--
    19870H1000B1864                 - 186 -

     1  or an authorized employe of the [board] commission or the         <--
     2  enforcement bureau access thereto or the opportunity to make
     3  copies of the same when the request is made during business
     4  hours.
     5     (13)  Retail Licensees Employing Minors. For any hotel,
     6  restaurant or club liquor licensee, or any retail dispenser, to
     7  employ or to permit any minor under the age of eighteen to serve
     8  any alcoholic beverages or to employ or permit any minor under
     9  the age of sixteen to render any service whatever in or about
    10  the licensed premises, nor shall any entertainer under the age
    11  of eighteen be employed or permitted to perform in any licensed
    12  premises in violation of the labor laws of this Commonwealth:
    13  Provided, That in accordance with [board] commission regulations  <--
    14  minors between the ages of sixteen and eighteen may be employed
    15  to serve food, clear tables and perform other similar duties,
    16  not to include the dispensing or serving of alcoholic beverages.
    17     (14)  Permitting Undesirable Persons or Minors to Frequent
    18  Premises. For any hotel, restaurant or club liquor licensee, or
    19  any retail dispenser, his servants, agents or employes, to
    20  permit persons of ill repute, known criminals, prostitutes or
    21  minors to frequent his licensed premises or any premises
    22  operated in connection therewith, except minors accompanied by
    23  parents, guardians, or under proper supervision or except minors
    24  who frequent any restaurant or retail dispensing licensee whose
    25  sales of food and non-alcoholic beverages are equal to seventy
    26  per centum or more of the combined gross sales of both food and
    27  alcoholic beverages on the condition that alcoholic beverages
    28  may not be served at the table or booth at which the said minor
    29  is seated at the time (unless said minor is under proper
    30  supervision as hereinafter defined) and on the further condition
    19870H1000B1864                 - 187 -

     1  that only table service of alcoholic beverages or take-out
     2  service of beer shall be permitted in the room wherein the minor
     3  is located: Provided, however, That it shall not be unlawful for
     4  any hotel, restaurant or club liquor licensee or any retail
     5  dispenser to permit minors under proper supervision upon the
     6  licensed premises or any premises operated in connection
     7  therewith for the purpose of a social gathering, even if such
     8  gathering is exclusively for minors: And provided further, That
     9  no liquor shall be sold, furnished or given to such minors nor
    10  shall the licensee knowingly permit any liquor or malt or brewed
    11  beverages to be sold, furnished or given to or be consumed by
    12  any minor, and the area of such gathering shall be segregated
    13  from the remainder of the licensed premises. In the event the
    14  area of such gathering cannot be segregated from the remainder
    15  of the licensed premises, all alcoholic beverages must be either
    16  removed from the licensed premises or placed under lock and key
    17  during the time the gathering is taking place. Notice of such
    18  gathering shall be given the [Liquor Control Board] commission    <--
    19  BOARD as it may, by regulation, require. Any licensee violating   <--
    20  the provisions of this clause shall be subject to the provisions
    21  of section 471.
    22     "Proper supervision," as used in this clause, means the
    23  presence, on that portion of the licensed premises where a minor
    24  or minors are present, of one person twenty-five years of age or
    25  older for every fifty minors or part thereof who is directly
    26  responsible for the care and conduct of such minor or minors
    27  while on the licensed premises and in such proximity that the
    28  minor or minors are constantly within his sight or hearing. The
    29  presence of the licensee or any employe or security officer of
    30  the licensee shall not constitute proper supervision.
    19870H1000B1864                 - 188 -

     1     (15)  Cashing Pay Roll, Public Assistance, Unemployment
     2  Compensation or Any Other Relief Checks. For any licensee or his
     3  servants, agents or employes to cash pay roll checks or to cash,
     4  receive, handle or negotiate in any way Public Assistance,
     5  Unemployment Compensation or any other relief checks.
     6     (16)  Furnishing or Delivering Liquor or Malt or Brewed
     7  Beverages at Unlawful Hours. For any licensee, his servants,
     8  agents or employes, to give, furnish, trade, barter, serve or
     9  deliver any liquor or malt or brewed beverages to any person
    10  during hours or on days when the licensee is prohibited by this
    11  act from selling liquor or malt or brewed beverages.
    12     (17)  Licensees, etc., Interested or Employed in
    13  Manufacturing or Sale of Equipment or Fixtures. For any
    14  licensee, or any officer, director, stockholder, servant, agent
    15  or employe of any licensee, to own any interest, directly or
    16  indirectly, in or be employed or engaged in any business which
    17  involves the manufacture or sale of any equipment, furnishings
    18  or fixtures to any hotel, restaurant or club licensees, or to
    19  any importing distributors, distributors or retail dispensers:
    20  Provided, however, That as to malt or brewed beverage licensees,
    21  the provisions of this subsection shall not apply to such a
    22  conflicting interest if it has existed for a period of not less
    23  than three years prior to the first day of January, one thousand
    24  nine hundred thirty-seven, and the [board] commission shall       <--
    25  approve.
    26     (18)  Displaying Price of Liquor or Malt or Brewed Beverages.
    27  For any restaurant, hotel or club liquor licensee, or any
    28  importing distributor, distributor or retail dispenser, or the
    29  servants, agents or employes of such licensees, to display on
    30  the outside of any licensed premises or to display any place
    19870H1000B1864                 - 189 -

     1  within the licensed premises where it can be seen from the
     2  outside, any advertisement whatsoever referring, directly or
     3  indirectly, to the price at which the licensee will sell liquor
     4  or malt or brewed beverages.
     5     (19)  Licensee's Outside Advertisements. For any retail
     6  liquor licensee or any retail dispenser, distributor or
     7  importing distributor, to display in any manner whatsoever on
     8  the outside of his licensed premises, or on any lot of ground on
     9  which the licensed premises are situate, or on any building of
    10  which the licensed premises are a part, a sign of any kind,
    11  printed, painted or electric, advertising any brand of liquor or
    12  malt or brewed beverage, and it shall be likewise unlawful for
    13  any manufacturer, distributor or importing distributor, to
    14  permit the display of any sign which advertises either his
    15  products or himself on any lot of ground on which such licensed
    16  premises are situate, or on any building of which such licensed
    17  premises are a part.
    18     (20)  (i)  Retail Liquor and Retail Malt or Brewed Beverages
    19  Licensee's Inside Advertisements. For any retail liquor or
    20  retail malt or brewed beverages licensee, to display or permit
    21  the display in the show window or doorways of his licensed
    22  premises, any placard or sign advertising the brands of liquor
    23  or malt or brewed beverages produced by any one manufacturer, if
    24  the total display area of any such placard or sign advertising
    25  the products of any one manufacturer exceeds three hundred
    26  square inches. Nothing herein shall prohibit a licensee from
    27  displaying inside his licensed premises point of sale displays
    28  advertising brand names of products sold by him, other than a
    29  window or door display: Provided, That the total cost of all
    30  such point of sale advertising matter relating to any one brand
    19870H1000B1864                 - 190 -

     1  of any one manufacturer shall not exceed the sum of seventy
     2  dollars ($70) at any one time, and no single piece of
     3  advertising shall exceed a cost of thirty-five dollars ($35).
     4  All such advertising material, including the window and door
     5  signs, may be furnished by a manufacturer, distributor or
     6  importing distributor. The restrictions on advertising set forth
     7  in subclause (ii) and in clauses (20.1) and (20.2) shall also
     8  apply to this subclause.
     9     (ii)  Cooperative Advertising. No distributor or importing
    10  distributor, directly or indirectly, independent or otherwise,
    11  shall, except by prior written agreement, be required to
    12  participate with a manufacturer in the purchase of any
    13  advertising of a brand name product in any name, in any form,
    14  whether it be radio, television, newspaper, magazine or
    15  otherwise.
    16     (20.1)  Manufacturer Shall Not Require Advertising. For a
    17  manufacturer to require a distributor or importing distributor
    18  to purchase any type of advertising.
    19     (20.2)  Advertising Shall Be Ordered and Authorized in
    20  Advance. For any advertising to be done on behalf of a
    21  distributor or importing distributor which was not ordered and
    22  authorized in advance by the distributor or importing
    23  distributor.
    24     (21)  Refusing The Right of Inspection. For any licensee, or
    25  his servants, agents or employes, to refuse the [board]           <--
    26  commission or the enforcement bureau or any of [its] their
    27  authorized employes the right to inspect completely the entire
    28  licensed premises at any time during which the premises are open
    29  for the transaction of business, or when patrons, guests or
    30  members are in that portion of the licensed premises wherein
    19870H1000B1864                 - 191 -

     1  either liquor or malt or brewed beverages are sold.
     2     (22)  Allowance or Rebate to Induce Purchases. For any
     3  licensee, or his servants, agents or employes, to offer, pay,
     4  make or allow, or for any licensee, or his servants, agents or
     5  employes, to solicit or receive any allowance or rebate, refunds
     6  or concessions, whether in the form of money or otherwise, to
     7  induce directly the purchase of liquor or malt or brewed
     8  beverages.
     9     (23)  Money or Valuables Given to Employes to Influence
    10  Actions of Their Employers. For any licensee, or any agent,
    11  employe or representative of any licensee, to give or permit to
    12  be given, directly or indirectly, money or anything of
    13  substantial value, in an effort to induce agents, employes or
    14  representatives of customers or prospective customers to
    15  influence their employer or principal to purchase or contract to
    16  purchase liquor or malt or brewed beverages from the donor of
    17  such gift, or to influence such employers or principals to
    18  refrain from dealing or contracting to deal with other
    19  licensees.
    20     (24)  Things of Value Offered as Inducement. For any licensee
    21  under the provisions of this article, or the [board] commission   <--
    22  or any manufacturer, or any employe or agent of a manufacturer,
    23  licensee or of the [board] commission, to offer to give anything  <--
    24  of value or to solicit or receive anything of value as a premium
    25  for the return of caps, stoppers, corks, stamps or labels taken
    26  from any bottle, case, barrel or package containing liquor or
    27  malt or brewed beverage, or to offer or give or solicit or
    28  receive anything of value as a premium or present to induce
    29  directly the purchase of liquor or malt or brewed beverage, or
    30  for any licensee, manufacturer or other person to offer or give
    19870H1000B1864                 - 192 -

     1  to trade or consumer buyers any prize, premium, gift or other
     2  inducement to purchase liquor or malt or brewed beverages,
     3  except advertising novelties of nominal value which the [board]   <--
     4  commission shall define[: Provided, however, That this]. This
     5  section shall not prevent any manufacturer or any agent of a
     6  manufacturer from offering ONLY ON LICENSED PREMISES and          <--
     7  honoring coupons which offer monetary rebates on purchases of
     8  wines and spirits through State Liquor Stores AND PURCHASES OF    <--
     9  MALT OR BREWED BEVERAGES in accordance with conditions or
    10  regulations established by the commission BOARD. Further, no      <--
    11  manufacturer or any agent of a manufacturer shall honor any
    12  coupons without proof of purchase in the form of a sales slip or
    13  receipt attached to the coupons. This section shall not apply to
    14  the return of any monies specifically deposited for the return
    15  of the original container to the owners thereof.
    16     (25)  Employment [of Females] in Licensed Places. For any      <--
    17  licensee or his agent, to employ or permit the employment of any
    18  [female] PERSON at his licensed hotel, restaurant or eating       <--
    19  place for the purpose of enticing customers, or to encourage
    20  them to drink liquor, or make assignations for improper
    21  purposes[: Provided, That nothing in this section shall be        <--
    22  construed to prevent the employment of any female waitress who
    23  regularly takes orders for food from serving food, liquor or
    24  malt or brewed beverages at tables; also, that nothing shall
    25  prevent any such licensees from employing any female
    26  stenographer, hotel secretary, clerk or other employe for their
    27  respective positions: Provided further, That nothing in this
    28  section shall be so construed as to prevent the wife of any such
    29  licensee or agent or any employed female from mixing or serving
    30  liquor or malt or brewed beverages behind the bar of any such
    19870H1000B1864                 - 193 -

     1  licensed place].                                                  <--
     2     Any person violating the provisions of this clause shall be
     3  guilty of a misdemeanor and, upon conviction of the same, shall
     4  be sentenced to pay a fine of not less than one hundred dollars
     5  ($100), nor more than five hundred dollars ($500), for each and
     6  every [female] PERSON so employed, or undergo an imprisonment of  <--
     7  not less than three (3) months, nor more than one (1) year, or
     8  either or both, at the discretion of the court having
     9  jurisdiction of the case. The [board] administrative law judge
    10  shall have the power to revoke or refuse licenses for violation
    11  of this clause.
    12     (26)  Worthless Checks. For any retail liquor licensee or any
    13  retail dispenser, distributor or importing distributor, to make,
    14  draw, utter, issue or deliver, or cause to be made, drawn,
    15  uttered, issued or delivered, any check, draft or similar order,
    16  for the payment of money in payment for any purchase of malt or
    17  brewed beverages, when such retail liquor licensee, retail
    18  dispenser, distributor or importing distributor, has not
    19  sufficient funds in, or credit with, such bank, banking
    20  institution, trust company or other depository, for the payment
    21  of such check. Any person who is a licensee under the provisions
    22  of this article, who shall receive in payment for malt or brewed
    23  beverages sold by him any check, draft or similar order for the
    24  payment of money, which is subsequently dishonored by the bank,
    25  banking institution, trust company or other depository, upon
    26  which drawn, for any reason whatsoever, shall, within five days
    27  of receipt of notice of such dishonor, notify by certified mail
    28  the person who presented the said worthless check, draft or
    29  similar order.
    30     (27)  Distributors and Importing Distributors Employing
    19870H1000B1864                 - 194 -

     1  Minors. For any distributor or importing distributor to employ
     2  minors under the age of eighteen but persons eighteen and over
     3  may be employed to sell and deliver malt and brewed beverages.
     4     Section 82.  Section 494 of the act, amended May 25, 1956
     5  (1955 P.L.1743, No.583), is reenacted and amended to read:
     6     Section 494.  Penalties.--(a)  Any person who shall violate
     7  any of the provisions of this article, except as otherwise
     8  specifically provided, shall be guilty of a misdemeanor and,
     9  upon conviction thereof, shall be sentenced to pay a fine of not
    10  less than one hundred dollars ($100), nor more than five hundred
    11  dollars ($500), and on failure to pay such fine, to imprisonment
    12  for not less than one month, nor more than three months, and for
    13  any subsequent offense, shall be sentenced to pay a fine not
    14  less than three hundred dollars ($300), nor more than five
    15  hundred dollars ($500), and to undergo imprisonment for a period
    16  not less than three months, nor more than one year, OR BOTH. IF   <--
    17  THE PERSON, AT OR RELATING TO THE LICENSED PREMISES, VIOLATES
    18  SECTION 493(1), (10), (14), (16) OR (21), OR IF THE OWNER OR
    19  OPERATOR OF THE LICENSED PREMISES OR ANY AUTHORIZED AGENT OF THE
    20  OWNER OR OPERATOR VIOLATES THE ACT OF APRIL 14, 1972 (P.L.233,
    21  NO.64), KNOWN AS "THE CONTROLLED SUBSTANCE, DRUG, DEVICE AND
    22  COSMETIC ACT," OR 18 PA.C.S. § 5902 (RELATING TO PROSTITUTION
    23  AND RELATED OFFENSES) OR 6301 (RELATING TO CORRUPTION OF
    24  MINORS), HE SHALL BE SENTENCED TO PAY A FINE NOT EXCEEDING FIVE
    25  THOUSAND DOLLARS ($5,000) OR TO UNDERGO IMPRISONMENT FOR A
    26  PERIOD NOT LESS THAN THREE MONTHS, NOR MORE THAN ONE YEAR, OR
    27  BOTH.
    28     (b)  The right [of the board] to suspend and revoke licenses
    29  granted under this article shall be in addition to the penalty
    30  set forth in this section.
    19870H1000B1864                 - 195 -

     1     Section 83.  Section 495 of the act, amended June 22, 1980
     2  (P.L.262, No.76), is reenacted and amended to read:
     3     Section 495.  Identification Cards; Licensees and State
     4  Liquor Store Employes Saved From Prosecution.--[(a)  The board
     5  shall issue, to any person who shall have attained the age of
     6  twenty-one years, an identification card bearing said person's
     7  date of birth, physical description, photograph, signature, and
     8  such other information, as the board by regulation may
     9  determine, attesting to the age of the applicant, upon
    10  application therefor by said person, filed no earlier than
    11  fifteen days prior to attaining the age of twenty-one. Such
    12  cards shall be numbered and a record thereof maintained by the
    13  board for a period of five years. The board may, in its
    14  discretion, impose a charge for such cards in an amount to be
    15  determined by it, and it may, upon proof of loss of such
    16  identification card by and upon application of anyone to whom
    17  such card may have been issued, issue a duplicate thereof and
    18  impose a charge therefor in an amount as it may by regulation
    19  prescribe. The board shall have the power to make such
    20  regulations as it shall, from time to time, deem proper
    21  regarding the size, style and additional content of the
    22  identification card, the form and content of any application
    23  therefor, the type, style and quantity of proof required to
    24  verify the applicant's age, the procedure for receiving and
    25  processing such application, the distribution of said card, the
    26  charge to be imposed for any card more than one that it shall
    27  issue to the same applicant, and all other matters the board
    28  shall deem necessary or advisable for the purpose of carrying
    29  into effect the provisions of this section.
    30     (a.1)] (a)  The photo driver's license or identification card
    19870H1000B1864                 - 196 -

     1  issued by the Department of Transportation shall, for the
     2  purpose of this act, be accepted as an identification card.
     3     [(a.2)  For the purposes of this section, the term
     4  identification card means a card which complies with either
     5  subsection (a) or (a.1).]
     6     (b)  Such identification card shall be presented by the
     7  holder thereof upon request of any State Liquor Store or any
     8  licensee, or the servant, agent or employe thereof, for the
     9  purpose of aiding such store, licensee, or the servant, agent or
    10  employe to determine whether or not such person is twenty-one
    11  years of age and upwards, when such person desires alcoholic
    12  beverage at a State Liquor Store or licensed establishment.
    13     (c)  In addition to the presentation of such identification
    14  card, the agent of the State Liquor Store or the licensee, or
    15  his servant, agent or employe, shall require the person whose
    16  age may be in question to fill in and sign a card in the
    17  following form:
    18                               ............................ 19
    19     I,........................................., hereby represent
    20  to ..........................................., a State Store or
    21  licensee of the [Pennsylvania Liquor Control Board] Alcohol       <--
    22  Beverages Commission BOARD, that I am of full age and discretion  <--
    23  and over the age of 21 years, having been born on
    24  ....................... 19..... at ..........................
    25  This statement is made to induce said store or licensee above
    26  named to sell or otherwise furnish alcoholic beverages to the
    27  undersigned.
    28  Serial Number of Identification Card:
    29     I understand that I am subject to a fine of
    30  $300.00 and sixty days imprisonment for any
    19870H1000B1864                 - 197 -

     1  misrepresentation herein.
     2                                                ..................
     3                                                     (Name)
     4                                                ..................
     5                                                    (Address)
     6  Witness:
     7  Name............................
     8  Address.........................
     9     Such statement shall be printed upon a 3 inch by 5 inch or 4
    10  inch by 5 inch file card, which card shall be filed
    11  alphabetically by the State Liquor Store or licensee, at or
    12  before the close of business on the day of which said
    13  certificate is executed, in a file box containing a suitable
    14  alphabetical index, and which card shall be subject to
    15  examination by any officer, agent or employe of the [Liquor
    16  Control Board] commission BOARD at any and all times.             <--
    17     (d)  It shall be unlawful for the owner of an identification
    18  card, as defined by this act, to transfer said card to any other
    19  person for the purpose of aiding such person to secure alcoholic
    20  beverage. Any person who shall transfer such identification card
    21  for the purpose of aiding such transferee to obtain alcoholic
    22  beverage shall be guilty of a misdemeanor and, upon conviction
    23  thereof, shall be sentenced to pay a fine of not more than three
    24  hundred dollars ($300), or undergo imprisonment for not more
    25  than sixty (60) days. Any person not entitled thereto who shall
    26  have unlawfully procured or have issued or transferred to him,
    27  as aforesaid, identification card or any person who shall make
    28  any false statement on any card required by subsection (c)
    29  hereof to be signed by him shall be guilty of a misdemeanor and,
    30  upon conviction thereof, shall be sentenced to pay a fine of not
    19870H1000B1864                 - 198 -

     1  more than three hundred dollars ($300), or undergo imprisonment
     2  for not more than sixty (60) days.
     3     (e)  The signed statement in the possession of a licensee or
     4  an employe of a State Liquor Store may be offered as a defense
     5  in all civil and criminal prosecutions for serving a minor, and
     6  no penalty shall be imposed if the [Liquor Control Board]
     7  commission BOARD or the courts are satisfied that the licensee    <--
     8  or State Liquor Store employe acted in good faith.
     9     Section 84.  Section 496 of the act, added June 15, 1961
    10  (P.L.423, No.211), is reenacted and amended to read:              <--
    11     Section 496.  Reporting of Worthless Checks.--Any person who
    12  is a licensee under the provisions of this article, who shall
    13  receive in payment for malt or brewed beverages sold by him any
    14  check, draft or similar order, for the payment of money, which
    15  is subsequently dishonored by the bank, banking institution,
    16  trust company or other depository, upon which drawn, for any
    17  reason whatsoever, shall, within twenty days of receipt of
    18  notice of such dishonor, notify the [board] commission thereof.   <--
    19  Such notification to the [board] commission shall be in such      <--
    20  manner and form as the [board] commission shall direct.           <--
    21     Section 85.  Section 497 of the act, added December 22, 1965
    22  (P.L.1144, No.441), is reenacted to read:
    23     Section 497.  Liability of Licensees.--No licensee shall be
    24  liable to third persons on account of damages inflicted upon
    25  them off of the licensed premises by customers of the licensee
    26  unless the customer who inflicts the damages was sold, furnished
    27  or given liquor or malt or brewed beverages by the said licensee
    28  or his agent, servant or employe when the said customer was
    29  visibly intoxicated.
    30     Section 86.  The act is amended by adding a section to read:   <--
    19870H1000B1864                 - 199 -

     1     Section 498.  Unlawful Advertising.--(a)  No manufacturer,
     2  wholesaler or shipper whether from outside or inside this
     3  Commonwealth and no licensee under this act shall cause or
     4  permit the advertising in any manner whatsoever of the price of
     5  any malt beverage, cordial, wine or distilled liquor offered for
     6  sale in this Commonwealth: Provided, however, That the
     7  provisions of this section shall not apply to price signs or
     8  tags attached to or placed on merchandise for sale within the
     9  licensed premises in accordance with rules and regulations of
    10  the commission.
    11     (b)  No newspaper, periodical, radio or television
    12  broadcaster or broadcasting company or any other person, firm or
    13  corporation with a principal place of business in this
    14  Commonwealth which is engaged in the business of advertising or
    15  selling advertising time or space shall accept, publish or
    16  broadcast any advertisement in this Commonwealth of the price or
    17  make reference to the price of any alcoholic beverages.
    18     (c)  Any person who shall violate any of the provisions of
    19  this section shall be guilty of a misdemeanor and upon
    20  conviction shall be punished for the first offense by a fine in
    21  the sum of fifty dollars ($50) and for each additional offense
    22  thereafter by a fine not exceeding the sum of one hundred
    23  dollars ($100). Publication or broadcast by any person in
    24  violation of the provisions of this section shall also be
    25  subject to injunctive proceedings in a court of competent
    26  jurisdiction on a complaint brought by a retail licensee or an
    27  association of retail licensees.
    28     (d)  The provisions of this section shall not apply to any
    29  trade journal which is duly recognized and authorized to be
    30  exempt from the provisions of this section by the commission.
    19870H1000B1864                 - 200 -

     1     SECTION 86.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:   <--
     2     SECTION 498.  UNLAWFUL ADVERTISING.--(A)  NO MANUFACTURER,
     3  WHOLESALER, RETAILER OR SHIPPER WHETHER FROM OUTSIDE OR INSIDE
     4  THIS COMMONWEALTH AND NO LICENSEE UNDER THIS ACT SHALL CAUSE OR
     5  PERMIT THE ADVERTISING IN ANY MANNER WHATSOEVER OF THE PRICE OF
     6  ANY MALT BEVERAGE, CORDIAL, WINE OR DISTILLED LIQUOR OFFERED FOR
     7  SALE IN THIS COMMONWEALTH: PROVIDED, HOWEVER, THAT THE
     8  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO PRICE SIGNS OR
     9  TAGS ATTACHED TO OR PLACED ON MERCHANDISE FOR SALE WITHIN THE
    10  LICENSED PREMISES IN ACCORDANCE WITH RULES AND REGULATIONS OF
    11  THE BOARD.
    12     (B)  ANY PERSON WHO VIOLATES ANY OF THE PROVISIONS OF THIS
    13  SECTION COMMITS A MISDEMEANOR AND SHALL, UPON CONVICTION, BE
    14  SENTENCED TO PAY A FINE OF FIFTY DOLLARS ($50) FOR THE FIRST
    15  OFFENSE AND FOR EACH ADDITIONAL OFFENSE THEREAFTER SHALL BE
    16  SENTENCED TO PAY A FINE OF ONE HUNDRED DOLLARS ($100).
    17  PUBLICATION OR BROADCAST BY ANY PERSON IN VIOLATION OF THE
    18  PROVISIONS OF THIS SECTION SHALL ALSO BE SUBJECT TO INJUNCTIVE
    19  PROCEEDINGS IN A COURT OF COMPETENT JURISDICTION ON A COMPLAINT
    20  BROUGHT BY A RETAIL LICENSEE OR AN ASSOCIATION OF RETAIL
    21  LICENSEES.
    22     (C)  THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY
    23  TRADE JOURNAL WHICH IS DULY RECOGNIZED AND AUTHORIZED TO BE
    24  EXEMPT FROM THE PROVISIONS OF THIS SECTION BY THE BOARD.
    25     Section 87.  The heading of Article V of the act is reenacted
    26  to read:
    27                             ARTICLE V.
    28             DISTILLERIES, WINERIES, BONDED WAREHOUSES,
    29            BAILEES FOR HIRE AND TRANSPORTERS FOR HIRE.
    30     Section 88.  Section 501 of the act is reenacted to read:
    19870H1000B1864                 - 201 -

     1     Section 501.  License Required.--Except as otherwise provided
     2  in this article, and except as otherwise provided in article
     3  four as to malt and brewed beverages, it shall be unlawful for
     4  any person without a license obtained under provisions of this
     5  article to hold in storage as bailee for hire, or transport for
     6  hire, any malt or brewed beverage, or to manufacture, produce,
     7  distill, develop or use in the process of manufacture, denature,
     8  redistill, recover, rectify, blend, reuse, hold in bond, hold in
     9  storage as bailee for hire, or transport for hire, within this
    10  Commonwealth, any alcohol or liquor, except that a person may
    11  manufacture wine out of grapes grown in Pennsylvania by
    12  fermentation only and with no alcohol or alcoholic product added
    13  thereto by way of fortification and sell the same to a licensed
    14  winery.
    15     Section 89.  Section 502 of the act is reenacted and amended
    16  to read:
    17     Section 502.  Exemptions.--No license hereunder shall be
    18  required from any registered pharmacist; or a physician licensed
    19  by the State Board of [Medical Education and Licensure]
    20  Medicine; or any person who makes and sells vinegar,
    21  nonalcoholic cider and fruit juices; or any person who
    22  manufactures, stores, sells or transports methanol, propanol,
    23  butanol and amanol; or any person who conducts a wholesale drug
    24  business; or any person who manufactures alcoholic preparations
    25  not fit for use as a beverage, other than denatured alcohol or
    26  for beverage purposes; any person engaged in the manufacture;
    27  possession or sale of patent, patented or proprietary medicines,
    28  toilet, medicinal or antiseptic preparations unfit for beverage
    29  purposes, or solutions or flavoring extracts or syrups unfit for
    30  beverage purposes; or any person who manufactures or sells
    19870H1000B1864                 - 202 -

     1  paints, varnishes, enamels, lacquers, stains or paint, or
     2  varnish removing or reducing compounds, or wood fillers; or any
     3  person who manufactures any substance where the alcohol or any
     4  liquor is changed into other chemical substances and does not
     5  appear in the finished product as alcohol or liquor; or any
     6  common carrier by railroad which is subject to regulation by the
     7  Pennsylvania Public Utility Commission of the Commonwealth of
     8  Pennsylvania, or scheduled common carriers by air of mail and
     9  passengers; or any person who sells, stores or transports
    10  alcohol or liquor completely denatured, as specified by the
    11  [board] commission.                                               <--
    12     Section 90.  Section 502.1 of the act, added December 14,
    13  1979 (P.L.565, No.129), is reenacted and amended to read:         <--
    14     Section 502.1.  Production of Denatured Ethyl Alcohol.--(a)
    15  Notwithstanding any other provisions of this act, a person may
    16  upon payment of an annual registration fee of twenty-five
    17  dollars ($25) and without the necessity of having to post a
    18  bond, manufacture or distill, hold in storage and use denatured
    19  ethyl alcohol for the purpose of providing fuel for personal or
    20  business vehicles or machinery.
    21     (b)  No denatured ethyl alcohol produced under the provisions
    22  of this section may be sold or utilized by any person other than
    23  the producer.
    24     (c)  Each licensee shall file annually with the [board]        <--
    25  commission accurate records of the monthly production and
    26  utilization of denatured ethyl alcohol fuel. The [board]          <--
    27  commission shall prescribe the form to be used for this report.
    28     (d)  Any violation of this section shall be subject to the
    29  penalties set forth in section 519.
    30     Section 91.  Section 503 of the act is reenacted to read:
    19870H1000B1864                 - 203 -

     1     Section 503.  Qualifications for License.--No license shall
     2  be issued under the provisions of this article to any person
     3  unless (a) in case of individuals, he or she is a citizen of the
     4  United States of America, (b) in case of companies or
     5  unincorporated associations of individuals, each and every one
     6  is a citizen of the United States of America, (c) in case of
     7  corporations, each and every stockholder thereof is a citizen of
     8  the United States of America.
     9     Section 92.  Section 504 of the act, amended September 28,
    10  1961 (P.L.1728, No.702), is reenacted and amended to read:
    11     Section 504.  Applications; Filing Fees.--(a)  Every
    12  applicant for a license under this article shall file with the
    13  [board] commission a written application in such form as the      <--
    14  [board] commission shall from time to time require. Every such    <--
    15  application shall be accompanied by a filing fee of twenty
    16  dollars ($20), the prescribed license fee and the bond
    17  hereinafter specified, and shall set forth:
    18     [1.] (1)  The legal names of the applicant and of the owner
    19  of the place where business under the license will be carried
    20  on, with their residence addresses by street and number, if a
    21  partnership, of each separate partner, and if a corporation, of
    22  each individual officer thereof.
    23     [2.] (2)  The exact location of said place of business and of
    24  every place to be occupied or used in connection with such
    25  business, the productive capacity of each plant where any
    26  alcohol or liquor is to be manufactured, produced, distilled,
    27  rectified, blended, developed or used in the process of
    28  manufacture, denatured, redistilled, recovered, reused, the
    29  capacity of every warehouse or other place where such alcohol or
    30  liquor or malt or brewed beverage is to be held in bond or
    19870H1000B1864                 - 204 -

     1  stored for hire, or the equipment to be used where a
     2  transportation business is to be carried on under the license.
     3     [3.] (3)  That each and every one of the applicants is a
     4  citizen of the United States of America.
     5     [4.] (4)  Such other relevant information as the [board]       <--
     6  commission shall from time to time require by rule or
     7  regulation.
     8     (b)  Each application must be verified by affidavit of the
     9  applicant made before any officer legally qualified to
    10  administer oaths, and if any false statement is wilfully made in
    11  any part of said application, the applicant or applicants shall
    12  be deemed guilty of a misdemeanor and, upon conviction, shall be
    13  subject to the penalties provided by this article.
    14     Section 93.  Section 505 of the act, amended July 31, 1968
    15  (P.L.902, No.272), is reenacted and amended to read:              <--
    16     Section 505.  Licenses Issued.--Upon receipt of the
    17  application in the form herein provided, the proper fees and an
    18  approved bond as herein designated, the [board] commission may    <--
    19  grant to such applicant a license to engage in, (a) the
    20  operation of a limited winery or a winery; or, (b) the
    21  manufacturing, producing, distilling, developing, or using in
    22  the process of manufacturing, denaturing, redistilling,
    23  recovering, rectifying, blending and reusing of alcohol and
    24  liquor; or, (c) the holding in bond of alcohol and liquor; or,
    25  (d) the holding in storage, as bailee for hire, of alcohol,
    26  liquor and malt or brewed beverages; or, (e) the transporting
    27  for hire of alcohol, liquor and malt or brewed beverages.
    28     Section 94.  Section 505.1 of the act, amended February 17,
    29  1956 (1955 P.L.1077, No.348), is reenacted and amended to read:
    30     Section 505.1.  Bonded Warehouse License Privilege
    19870H1000B1864                 - 205 -

     1  Restrictions.--(a)  Holders of bonded warehouse licenses may:
     2     [(a)] (1)  Receive and store in bond liquor owned by
     3  Pennsylvania licensed manufacturers and importers.
     4     [(b)] (2)  Receive and store in bond alcohol owned by
     5  Pennsylvania licensed manufacturers.
     6     [(c)] (3)  Receive and store in bond liquor owned by
     7  licensees outside this Commonwealth. Such liquor shall be
     8  released from the bonded warehouse for delivery within this
     9  Commonwealth only to persons holding a liquor importer's license
    10  issued by the [Pennsylvania Liquor Control Board] commission      <--
    11  BOARD authorizing the importation of liquor or to other storage   <--
    12  facilities or persons outside this Commonwealth.
    13     [(d)] (4)  Receive and store in bond alcohol owned by
    14  licensees outside this Commonwealth. Such alcohol shall be
    15  released from the bonded warehouse for delivery within this
    16  Commonwealth only to persons holding an alcohol permit issued by
    17  the [Pennsylvania Liquor Control Board] commission BOARD          <--
    18  authorizing the importation of alcohol or to other storage
    19  facilities or persons outside this Commonwealth.
    20     (b)  All liquor and alcohol received and stored pursuant to
    21  this section shall be in original containers of ten gallons or
    22  greater capacity. Liquor and alcohol placed in storage in
    23  accordance with the foregoing provisions may remain in storage
    24  notwithstanding any change in ownership.
    25     Section 95.  Section 505.2 of the act, amended November 5,
    26  1981 (P.L.329, No.119) and December 17, 1982 (P.L.1390, No.319),
    27  is reenacted and amended to read:
    28     Section 505.2.  Limited Wineries.--Holders of a limited
    29  winery license may:
    30     (1)  Produce wines and wine coolers only from fruits grown in
    19870H1000B1864                 - 206 -

     1  Pennsylvania in an amount not to exceed [one hundred thousand     <--
     2  (100,000)] TWO HUNDRED THOUSAND (200,000) gallons per year.       <--
     3     (2)  Sell wine and wine coolers produced by the limited
     4  winery or purchased in bulk in bond from another Pennsylvania
     5  limited winery on the licensed premises, under such conditions
     6  and regulations as the [board] commission may enforce, to the     <--
     7  [Liquor Control Board] commission BOARD, to individuals and to    <--
     8  hotel, restaurant, club and public service liquor licensees, and
     9  to Pennsylvania winery licensees: Provided, That a limited
    10  winery shall not, in any calendar year, purchase wine produced
    11  by other limited wineries in an amount in excess of fifty per
    12  centum of the wine produced by the purchasing limited winery in
    13  the preceding calendar year.
    14     (3)  [Sell] Separately or in conjunction with other limited
    15  wineries, sell wine and wine coolers produced by the limited
    16  winery [on no more than [three] FIVE board-approved] at           <--
    17  commission-approved locations other than the licensed premises,
    18  with no bottling or production requirement at those additional
    19  [board-approved] commission-approved locations and under such     <--
    20  conditions and regulations as the [board] commission may          <--
    21  enforce, to the [Liquor Control Board] commission BOARD, to       <--
    22  individuals and to hotel, restaurant, club and public service
    23  liquor licensees.
    24     Section 96.  Section 505.3 of the act, added July 30, 1975
    25  (P.L.136, No.68), is reenacted and amended to read:               <--
    26     Section 505.3.  Distilleries.--Distilleries of historical
    27  significance established more than one hundred years prior to
    28  January 1, 1975 which hold a license issued under section 505
    29  may sell liquor produced by the distillery on the licensed
    30  premises under such conditions and regulations as the [board]     <--
    19870H1000B1864                 - 207 -

     1  commission may enforce.
     2     Section 97.  Sections 506 and 507 of the act are reenacted
     3  and amended to read:
     4     Section 506.  Bonds Required.--(a)  No license shall be
     5  issued to any such applicant until he has filed with the [board]  <--
     6  commission an approved bond, duly executed, payable to the
     7  Commonwealth of Pennsylvania, together with a warrant of
     8  attorney to confess judgment in the penal sum herein set forth.
     9  All such bonds shall be conditioned for the faithful observance
    10  of all the laws of this Commonwealth and regulations of the
    11  [board] commission relating to alcohol, liquor and malt or        <--
    12  brewed beverages and the conditions of the license, and shall
    13  have as surety a duly authorized surety company, or shall have
    14  deposited therewith, as collateral security, cash or negotiable
    15  obligations of the United States of America or the Commonwealth
    16  of Pennsylvania in the same amount as herein provided for the
    17  penal sum of bonds.
    18     (b)  In all cases where cash or securities in lieu of other
    19  surety have been deposited with the [board] commission, the       <--
    20  depositor shall be permitted to continue the same deposit from
    21  year to year on each renewal of license, but in no event shall
    22  he be permitted to withdraw his deposit during the time he holds
    23  said license, or until six months after the expiration of the
    24  license held by him, or while revocation proceedings are pending
    25  against such licensee.
    26     (c)  All cash or securities received by the [board]            <--
    27  commission in lieu of other surety shall be turned over by the
    28  [board] commission to the State Treasurer and held by him. The    <--
    29  State Treasurer shall repay or return money or securities
    30  deposited with him to the respective depositors only on the
    19870H1000B1864                 - 208 -

     1  order of the [board] commission.                                  <--
     2     (d)  After notice from the [board] commission that such a      <--
     3  bond has been forfeited, the State Treasurer shall immediately
     4  pay into the State Stores Fund all cash deposited as collateral
     5  with such bond, and when securities have been deposited with
     6  such a bond, the State Treasurer shall sell at private sale, at
     7  not less than the prevailing market price, any such securities
     8  so deposited as collateral with any such forfeited bond. The
     9  State Treasurer shall thereafter deposit in The State Stores
    10  Fund the net amount realized from the sale of such securities,
    11  except that if the amount so realized, after deducting proper
    12  costs and expenses, is in excess of the penal amount of the
    13  bond, such excess shall be paid over by him to the obligor on
    14  such forfeited bond.
    15     (e)  The penal sum of bonds required to be filed by
    16  applicants for license shall be as follows:
    17     In the case of a distillery (manufacturer), the bond shall be
    18  in the amount of ten thousand dollars ($10,000); in the case of
    19  a bonded warehouse, a bailee for hire and a transporter for
    20  hire, each shall be in the amount of three thousand dollars
    21  ($3000); and in the case of a winery, shall be in the amount of
    22  five thousand dollars ($5000). Such bonds shall be filed with
    23  and retained by the [board] commission.                           <--
    24     (f)  Every such bond shall be turned over to the [Department
    25  of Justice] Attorney General to be collected if and when the
    26  licensee's license shall have been revoked and his bond
    27  forfeited as provided in this act.
    28     Section 507.  Hearings [Upon Refusal of Licenses] on Licenses
    29  and Refusals.--(a)  The [board] commission may of its own         <--
    30  motion, and shall upon the written request of the enforcement
    19870H1000B1864                 - 209 -

     1  bureau or of any applicant for license or for renewal thereof
     2  whose application for such license or renewal has been refused,
     3  fix a time and place for hearing of such application or renewal,
     4  notice of which hearing shall be sent to the bureau and to the
     5  applicant, by registered mail, at the address given in his
     6  application. Such hearing shall be before the [board]             <--
     7  commission, a member thereof, or an [examiner designated by the   <--
     8  board] administrative law judge.                                  <--
     9     (b)  At such hearing, the [board] commission shall present     <--
    10  its reasons for its refusal or withholding of such license or
    11  renewal thereof or the bureau shall present its objections to
    12  the granting or renewal of the license, as the case may be. The
    13  applicant may appear in person or by counsel, may cross-examine
    14  the witnesses for the [board] commission or the bureau, and may   <--
    15  present evidence which shall likewise be subject to cross-
    16  examination by the [board] commission or the bureau. Such         <--
    17  hearing shall be stenographically recorded. The [examiner]        <--
    18  administrative law judge shall thereafter report to the [board]   <--
    19  commission. The [board] commission shall thereafter grant or      <--
    20  refuse the license or renewal thereof. [If the board shall
    21  refuse such license or renewal following such hearing, notice in
    22  writing of such refusal shall be mailed to the applicant at the
    23  address given in his application. In all cases, the board shall
    24  file of record at least a brief statement in the form of an
    25  opinion of the reasons for the ruling or order.]
    26     (c)  Hearings and adjudications pursuant to this section
    27  shall be in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating
    28  to practice and procedure of Commonwealth agencies).
    29     Section 98.  Section 508 of the act, amended July 31, 1968
    30  (P.L.902, No.272), is reenacted and amended to read:
    19870H1000B1864                 - 210 -

     1     Section 508.  License Fees.--(a)  The annual fee for every
     2  license issued to a limited winery or a winery shall be two
     3  hundred and fifty dollars ($250). The annual fee for every
     4  license issued to a distillery (manufacturer) shall be twenty-
     5  five hundred dollars ($2500) per annum if the annual production
     6  is five hundred thousand (500,000) proof gallons or less, and an
     7  additional fee of one hundred dollars ($100) for each one
     8  hundred thousand (100,000) proof gallons or fraction thereof in
     9  excess of five hundred thousand (500,000) proof gallons, but for
    10  the purpose of determining the amount of the fee payable by a
    11  distillery, the annual production of alcohol that is denatured
    12  by the manufacturer thereof during the license year in
    13  Pennsylvania and not elsewhere shall be excluded, but alcohol or
    14  liquor used by the manufacturer thereof during the license year
    15  in rectification or blending shall not be excluded, except that
    16  no fee for a distillery shall be less than twenty-five hundred
    17  dollars ($2500) per annum. The annual fee for all other licenses
    18  shall be one hundred dollars ($100). The fee for any license
    19  when applied for and issued on or after April first, but prior
    20  to July first, shall be three-fourths of the annual fee; July
    21  first, but prior to October first, shall be one-half of the
    22  annual fee; October first, but prior to January first, one-
    23  fourth of the annual fee.
    24     (b)  For the purpose of this section, the term "proof gallon"
    25  shall mean a gallon liquid which contains one-half its volume of
    26  alcohol of a specific gravity of seven thousand nine hundred
    27  thirty-nine ten thousandths (.7939) at sixty degrees Fahrenheit.
    28     Section 99.  Section 509 of the act is reenacted and amended   <--
    29  to read:
    30     Section 509.  License Must Be Posted; Business Hours.--
    19870H1000B1864                 - 211 -

     1  Licenses shall be issued by the [board] commission under its      <--
     2  official seal. Every license so issued must at all times be
     3  posted in a conspicuous place where the business is carried on
     4  under it, and said place of business must be kept open during
     5  general business hours of every day in the year except Sundays
     6  and legal holidays.
     7     Section 100.  Sections 510 and 511 of the act are reenacted
     8  to read:
     9     Section 510.  Containers To Be Labeled.--All persons, except
    10  as exempted by section five hundred two hereof, manufacturing,
    11  producing, distilling, developing or using in the process of
    12  manufacture, denaturing, redistilling, recovering, rectifying,
    13  blending, reusing, holding in bond, holding in storage as bailee
    14  for hire, or transporting for hire of alcohol or liquor under
    15  the provisions of this article, shall securely and permanently
    16  attach to every container ready for shipment thereof as the same
    17  is manufactured, produced, distilled, developed, denatured,
    18  redistilled, recovered, rectified, blended, reused, a label
    19  stating the name of the manufacturer, kind and quantity of
    20  alcohol or liquor contained therein, and the date of its
    21  manufacture, together with the number of the license authorizing
    22  the manufacture thereof, and all persons possessing such alcohol
    23  or liquor in wholesale quantities shall securely keep and
    24  maintain such label thereon.
    25     Section 511.  License To Specify Each Place Authorized For
    26  Use.--Every license issued under the provision of this article
    27  shall specify by definite location every place to be occupied or
    28  used in connection with the business to be conducted thereunder.
    29  It shall be unlawful for the holder of any license to occupy or
    30  use any place in connection with any business authorized under a
    19870H1000B1864                 - 212 -

     1  license other than the place or places designated therein.
     2     Section 101.  Sections 512, AND 513 and 514 of the act are     <--
     3  reenacted and amended to read:                                    <--
     4     Section 512.  Records To Be Kept.--Every person holding a
     5  license issued under the provisions of this article shall keep
     6  on the licensed premises daily permanent records which shall
     7  show, (a) the quantities of any alcohol or liquor manufactured,
     8  produced, distilled, developed, denatured, redistilled,
     9  recovered, reused, stored in bond, stored as bailee for hire,
    10  received or used in the process of manufacture by him, and of
    11  all other material used in manufacturing or developing any
    12  alcohol or liquor; (b) the sales or other disposition of any
    13  alcohol, liquor or malt or brewed beverages if covered by said
    14  license; (c) the quantities thereof, if any, stored in bond,
    15  stored for hire, or transported for hire by or for the licensee;
    16  and (d) the names and addresses of the purchasers or other
    17  recipients thereof: Provided, however, That persons holding
    18  licenses issued under the provisions of this article for the
    19  transportation for hire of any alcohol, liquor or malt or brewed
    20  beverages shall not be required to keep the above records, but
    21  shall keep daily permanent records showing the names and
    22  addresses of the persons from whom any alcohol, liquor or malt
    23  or brewed beverage was received and to whom delivered, and such
    24  other permanent records as the [board] commission shall           <--
    25  prescribe.
    26     Section 513.  Premises and Records Subject To Inspection.--
    27  Every place operated under license secured under the provisions
    28  of this article where any alcohol, liquor or malt or brewed
    29  beverage covered by the license is manufactured, produced,
    30  distilled, developed or used in the process of manufacture,
    19870H1000B1864                 - 213 -

     1  denatured, redistilled, rectified, blended, recovered, reused,
     2  held in bond, stored for hire or in connection with a licensee's
     3  business, shall be subject to inspection by members of the
     4  [board] commission or by persons duly authorized and designated   <--
     5  by the [board] commission at any and all times of the day or      <--
     6  night, as they may deem necessary, (a) for the detection of
     7  violations of this act or of the rules and regulations of the
     8  [board] commission promulgated under the authority of this act,   <--
     9  or (b) for the purpose of ascertaining the correctness of the
    10  records required by this act to be kept by licensees and the
    11  books and records of licensees, and the books and records of
    12  their customers, in so far as they relate to purchases from said
    13  licensees, shall at all times be open to inspection by the
    14  members of the [board] commission or by persons duly authorized   <--
    15  and designated by the [board] commission for the purpose of       <--
    16  making inspections as authorized by this section. Members of the
    17  [board] commission and the persons duly authorized and            <--
    18  designated by the [board] commission shall have the right,        <--
    19  without fee or hindrance, to enter any place which is subject to
    20  inspection hereunder, or any place where records subject to
    21  inspection hereunder are kept, for the purpose of making such
    22  inspections.
    23     SECTION 101.1.  SECTION 514 OF THE ACT IS REENACTED AND        <--
    24  AMENDED TO READ:
    25     Section 514.  Suspension and Revocation of Licenses.--(a)
    26  Upon learning of any violation of this act or of any rule or
    27  regulation promulgated by the [board] commission under the        <--
    28  authority of this act, or any violation of any laws of the
    29  Commonwealth or of the United States of America relating to the
    30  tax payment of alcohol, liquor or malt or brewed beverages by
    19870H1000B1864                 - 214 -

     1  the holder of a license issued under the provisions of this
     2  article, or upon other sufficient cause, the [board] enforcement
     3  bureau may, within one year from the date of such violation or
     4  cause appearing, cite such licensee to appear before [it or its
     5  examiner] an administrative law judge not less than ten (10) nor
     6  more than [fifteen (15)] sixty (60) days from the date of
     7  sending such licensee, by registered mail, a notice addressed to
     8  his licensed premises, to show cause why the license should not
     9  be suspended or revoked. Hearings on such citations shall be
    10  held in the same manner as provided herein for hearings on
    11  applications for license. And upon such hearing, if satisfied
    12  that any such violation has occurred or for other sufficient
    13  cause, the [board] administrative law judge shall immediately
    14  suspend or revoke such license, notifying the licensee thereof
    15  by registered letter addressed to his licensed premises, or to
    16  the address given in his application where no licensed premises
    17  is maintained in Pennsylvania.
    18     (b)  When a license is revoked, the licensee's bond may be
    19  forfeited [by the board]. Any licensee whose license is revoked
    20  shall be ineligible to have a license under this act or under
    21  any other act relating to alcohol, liquor or malt or brewed
    22  beverages until the expiration of three (3) years from the date
    23  such license was revoked. In the event [the board shall revoke a
    24  license] of a revocation, no license shall be granted for the
    25  premises or transferred to the premises in which said license
    26  was conducted for a period of at least one (1) year after the
    27  date of the revocation of the license conducted in the said
    28  premises, except in cases where the licensee or a member of his
    29  immediate family is not the owner of the premises, in which case
    30  the [board] commission may, in its discretion, issue or transfer  <--
    19870H1000B1864                 - 215 -

     1  a license within said year. [In all such cases, the board shall
     2  file of record at least a brief statement in the form of an
     3  opinion of the reasons for the ruling or order.] Such hearing
     4  before and adjudication by an administrative law judge shall be
     5  in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
     6  practice and procedure of Commonwealth agencies).
     7     Section 102.  Section 515 of the act, repealed in part June
     8  3, 1971 (P.L.118, No.6) and April 28, 1978 (P.L.202, No.53), is
     9  reenacted and amended to read:
    10     Section 515.  Appeals.--[Any] The commission BOARD, the        <--
    11  enforcement bureau or any applicant or any licensee aggrieved by
    12  any decision [of the board] refusing, suspending or revoking a
    13  license under the provisions of this article may appeal to the
    14  court of the county in which the licensed premises or the
    15  premises to be licensed are located. In the event an applicant
    16  or a licensee shall have no place of business established within
    17  the Commonwealth, his appeal shall be to the [court of Dauphin
    18  County] Commonwealth Court. Such appeal shall be [upon petition
    19  of the applicant or licensee, as the case may be, who shall
    20  serve a copy thereof upon the board. The said appeal shall act
    21  as a supersedeas, unless upon sufficient cause shown the court
    22  shall determine otherwise. The court shall hear the application
    23  de novo at such time as it shall fix, of which notice shall be
    24  given to the board. The court shall, in the case of a refusal by
    25  the board, either sustain such refusal or order the issuance of
    26  the license to the applicant] in accordance with 2 Pa.C.S. Ch. 7
    27  Subch. A (relating to judicial review of Commonwealth agency
    28  action).
    29     Section 103.  Sections 516 and 517 of the act are SECTION 516  <--
    30  OF THE ACT IS reenacted and amended to read:
    19870H1000B1864                 - 216 -

     1     Section 516.  Compromise Penalty In Lieu of Suspension.--In
     2  those cases where the [board] administrative law judge shall
     3  suspend a license, the [board] administrative law judge may
     4  accept from the licensee an offer in compromise as a penalty in
     5  lieu of such suspension and shall thereupon rescind its order of
     6  suspension. In the case of a distillery licensee, the offer in
     7  compromise shall be at the rate of one hundred dollars ($100)
     8  for each day of suspension; in the case of a bonded warehouse,
     9  bailee for hire and transporter for hire licensees, twenty-five
    10  dollars ($25) for each day; and in the case of a winery
    11  licensee, fifty dollars ($50) for each day. No offer in
    12  compromise may be accepted [by the board] in those cases where
    13  the suspension is for a period in excess of one hundred (100)
    14  days.
    15     SECTION 103.1.  SECTION 517 OF THE ACT IS REENACTED TO READ:   <--
    16     Section 517.  Expiration of Licenses; Renewals.--All licenses
    17  issued under this article shall expire at the close of the
    18  calendar year, but new licenses for the succeeding year shall be
    19  issued upon written application therefor, duly verified by
    20  affidavit, stating that the facts in the original application
    21  are unchanged, and upon payment of the fee as hereinafter
    22  provided and the furnishing of a new bond, without the filing of
    23  further statements or the furnishing of any further information
    24  unless specifically requested by the [board] commission:          <--
    25  Provided, however, That any such license issued to a corporation
    26  shall expire thirty (30) days after any change in the officers
    27  of such corporation, unless the name and address of each such
    28  new officer of such corporation shall, within that period, be
    29  reported to the [board] commission by certificate, duly           <--
    30  verified. Applications for renewals must be made not less than
    19870H1000B1864                 - 217 -

     1  thirty (30) nor more than sixty (60) days before the first day
     2  of January of the ensuing year. All applications for renewal
     3  received otherwise shall be treated as original applications.
     4     Section 104.  Section 518 of the act is reenacted to read:
     5     Section 518.  Unlawful Acts.--(a)  It shall be unlawful for
     6  any person to transport any illegal alcohol, liquor or malt or
     7  brewed beverages.
     8     (b)  Whenever any person withdraws or removes any alcohol or
     9  liquor which has not been denatured from any distillery,
    10  denaturing plant, winery or bonded warehouse for the purpose of
    11  denaturing the same, it shall be unlawful for any such person to
    12  use, sell or conceal, or attempt to use, sell or conceal, or be
    13  concerned in the sale, use or concealment of, any such alcohol
    14  or liquor, unless before such sale or use the said alcohol or
    15  liquor shall be denatured by adding thereto denaturing material
    16  or materials or admixtures thereof which render it unfit for
    17  beverage purposes.
    18     (c)  It shall be unlawful for any person to recover and reuse
    19  or attempt to recover and reuse, by redistillation or by any
    20  other process or means whatsoever, any alcohol or liquor from
    21  denatured alcohol or from any other liquor from denatured
    22  alcohol or from any other liquid, or to knowingly use, sell,
    23  conceal, or otherwise dispose of, alcohol or liquor so recovered
    24  or redistilled.
    25     Section 105.  Section 519 of the act is reenacted and amended
    26  to read:
    27     Section 519.  Penalties.--Any person or persons who knowingly
    28  violate any of the provisions of this article, or any person who
    29  shall violate any of the conditions of any license issued under
    30  the provisions of this article, or who shall falsify any record
    19870H1000B1864                 - 218 -

     1  or report required by this article to be kept, or who shall
     2  violate any rule or regulation of the [board] commission, or who  <--
     3  shall interfere with, hinder or obstruct any inspection
     4  authorized by this article, or prevent any member of the [board]  <--
     5  commission or the enforcement bureau or any person duly
     6  authorized and designated by the [board] commission or the        <--
     7  bureau from entering any place which such member of the [board]   <--
     8  commission or the bureau or such person is authorized by this
     9  article to enter for the purpose of making an inspection, or who
    10  shall violate any other provision of this article, shall be
    11  guilty of a misdemeanor and, upon conviction thereof, shall be
    12  sentenced to pay a fine of not less than one hundred dollars
    13  ($100), nor more than five thousand dollars ($5000), or undergo
    14  imprisonment of not more than three (3) years, or both, at the
    15  discretion of the court.
    16     Section 106.  The headings of Article VI and Subdivision (A)
    17  of Article VI of the act are reenacted to read:
    18                            ARTICLE VI.
    19         PROPERTY ILLEGALLY POSSESSED OR USED; FORFEITURES;
    20                             NUISANCES.
    21                         (A)  Forfeitures.
    22     Section 107.  Sections 601, 602 and 603 of the act, amended
    23  April 20, 1956 (1955 P.L.1508, No.499), are reenacted and
    24  amended to read:
    25     Section 601.  Forfeiture of Property Illegally Possessed or
    26  Used.--No property rights shall exist in any liquor, alcohol or
    27  malt or brewed beverage illegally manufactured or possessed, or
    28  in any still, equipment, material, utensil, vehicle, boat,
    29  vessel, animals or aircraft used in the illegal manufacture or
    30  illegal transportation of liquor, alcohol or malt or brewed
    19870H1000B1864                 - 219 -

     1  beverages, and the same shall be deemed contraband and
     2  proceedings for its forfeiture to the Commonwealth may[, at the
     3  discretion of the board,] be instituted in the manner
     4  hereinafter provided. No such property when in the custody of
     5  the law shall be seized or taken therefrom on any writ of
     6  replevin or like process.
     7     Section 602.  Forfeiture Proceedings.--(a)  The proceedings
     8  for the forfeiture or condemnation of all property shall be in
     9  rem, in which the Commonwealth shall be the plaintiff and the
    10  property the defendant. A petition shall be filed in the court
    11  of [quarter sessions] common pleas, verified by oath or
    12  affirmation of any officer or citizen, containing the following:
    13  (1) a description of the property so seized; (2) a statement of
    14  the time and place where seized; (3) the owner, if known; (4)
    15  the person or persons in possession, if known; (5) an allegation
    16  that the same had been possessed or used or was intended for use
    17  in violation of this act; (6) and, a prayer for an order of
    18  forfeiture that the same be adjudged forfeited to the
    19  Commonwealth, unless cause be shown to the contrary.
    20     (b)  A copy of said petition shall be served personally on
    21  said owner if he can be found within the jurisdiction of the
    22  court, or upon the person or persons in possession at the time
    23  of the seizure thereof. Said copy shall have endorsed thereon a
    24  notice as follows:
    25     "To the Claimant of Within Described Property: You are
    26  required to file an answer to this petition, setting forth your
    27  title in and right to possession of said property, within
    28  fifteen (15) days from the service hereof; and you are also
    29  notified that if you fail to file said answer, a decree of
    30  forfeiture and condemnation will be entered against said
    19870H1000B1864                 - 220 -

     1  property."
     2     Said notice shall be signed by petitioner or his attorney, or
     3  the district attorney or the Attorney General.
     4     (c)  If the owner of said property is unknown or outside the
     5  jurisdiction of the court and there was no person in possession
     6  of said property when seized, or such person so in possession
     7  cannot be found within the jurisdiction of the court, notice of
     8  said petition shall be given by an advertisement in only one
     9  newspaper of general circulation published in the county where
    10  such property shall have been seized, once a week for two (2)
    11  successive weeks. No other advertisement of any sort shall be
    12  necessary, any other law to the contrary notwithstanding. Said
    13  notice shall contain a statement of the seizure of said
    14  property, with a description thereof, the place and date of
    15  seizure, and shall direct any claimants thereof to file a claim
    16  therefor on or before a date given in said notice, which date
    17  shall not be less than ten (10) days from the date of the last
    18  publication.
    19     (d)  Upon the filing of any claim for said property, setting
    20  forth a right of possession thereof, the case shall be deemed at
    21  issue and a time be fixed for the hearing thereof.
    22     (e)  At the time of said hearing, if the Commonwealth shall
    23  produce evidence that the property in question was unlawfully
    24  possessed or used, the burden shall be upon the claimant to show
    25  (1) that he is the owner of said property, (2) that he lawfully
    26  acquired the same, and (3) that it was not unlawfully used or
    27  possessed.
    28     In the event such claimant shall prove by competent evidence
    29  to the satisfaction of the court that said liquor, alcohol or
    30  malt or brewed beverage, or still, equipment, material, utensil,
    19870H1000B1864                 - 221 -

     1  vehicle, boat, vessel, container, animal or aircraft was
     2  lawfully acquired, possessed and used, then the court may order
     3  the same returned or delivered to the claimant; but if it
     4  appears that said liquor, alcohol or malt or brewed beverage or
     5  still, equipment, material or utensil was unlawfully possessed
     6  or used, the court shall order the same destroyed, delivered to
     7  a hospital, or turned over to the [board] commission or           <--
     8  enforcement bureau, as hereinafter provided, or if it appears
     9  that said vehicle, boat, vessel, container, animal or aircraft
    10  was unlawfully possessed or used, the court may, in its
    11  discretion, adjudge same forfeited and condemned as hereinafter
    12  provided.
    13     Section 603.  Disposition of Forfeited Property.--If, upon
    14  petition as hereinbefore provided and hearing before the court
    15  of [quarter sessions] common pleas, it appears that any liquor,
    16  alcohol, or malt or brewed beverage or still, equipment,
    17  material or utensil was so illegally possessed, or used, such
    18  liquor, alcohol or malt or brewed beverage or still, equipment,
    19  material or utensil shall be adjudged forfeited and condemned,
    20  or if it appears that any vehicle, boat, vessel, container,
    21  animal or aircraft was so used in the illegal manufacture or
    22  transportation of liquor, alcohol or malt or brewed beverage,
    23  such property may, in the discretion of the court, be adjudged
    24  forfeited and condemned and in such case shall be disposed of as
    25  follows:
    26     (a)  Upon conviction of any person of a violation of any of
    27  the provisions of this act, the court shall order the sheriff to
    28  destroy all condemned liquor, alcohol or malt or brewed beverage
    29  and property seized or obtained from such defendants, except
    30  that the court may order the liquor, alcohol or malt or brewed
    19870H1000B1864                 - 222 -

     1  beverages, or any part thereof, to be delivered to a hospital
     2  for its use, and make return to the court of compliance with
     3  said order, and any vehicle, container, boat, vessel, animals or
     4  aircraft seized under the provisions of this act shall be
     5  disposed of as hereinafter provided.
     6     (b)  In any case in which the defendant is acquitted of a
     7  violation of this act and denies the ownership or possession
     8  thereof, or no claimant appears for same, or appearing, is
     9  unable to sustain claim thereof, the court shall order all
    10  condemned liquor, alcohol and malt or brewed beverages and
    11  property (except vehicles, boats, vessels, containers, animals
    12  and aircraft) publicly destroyed by the sheriff, except that the
    13  court may order the liquor, alcohol or malt or brewed beverages,
    14  or any part thereof, to be delivered to a hospital for its use.
    15  Return of compliance with said order shall be made by the
    16  sheriff to the court.
    17     (c)  In the case of any vehicle, boat, vessel, container,
    18  animal or aircraft seized under the provisions of this act and
    19  condemned, the court shall order the same to be delivered to the
    20  [board] enforcement bureau for its use or for sale or
    21  disposition by the [board] bureau, in its discretion. Notice of
    22  such sale shall be given in such manner as the [board] bureau
    23  may prescribe. The proceeds of such sale shall be paid into The
    24  State Stores Fund.
    25     Section 108.  Section 604 of the act is reenacted and amended
    26  to read:
    27     Section 604.  Motor Vehicle Licenses To Be Revoked.--In
    28  addition to the foregoing provisions, the court may, in its
    29  order of condemnation, and in every conviction under this act
    30  where it shall appear that liquor, alcohol or malt or brewed
    19870H1000B1864                 - 223 -

     1  beverages were unlawfully transported in a motor vehicle,
     2  declare that the license issued by the Department of [Revenue]
     3  Transportation for any motor vehicle so forfeited and condemned,
     4  or issued to any defendant convicted of transporting liquor,
     5  alcohol or malt or brewed beverages in any motor vehicle, shall
     6  be forfeited and revoked, and it shall be the duty of the clerk
     7  of the court in which such conviction is had and order of
     8  condemnation made to certify such conviction to the Secretary of
     9  [Revenue] Transportation, who shall suspend or revoke the
    10  license issued for such motor vehicles: Provided, That a license
    11  may be issued for such motor vehicle to the [board] commission    <--
    12  or the enforcement bureau to any purchaser of the vehicle after
    13  the sale thereof, as above provided.
    14     Section 109.  Section 605 of the act is reenacted to read:
    15     Section 605.  Application of Subdivision.--The provisions of
    16  this subdivision shall apply to the disposition of any liquor,
    17  alcohol or malt or brewed beverage or property in the custody of
    18  the law or of any officer at the time of the passage of this
    19  act.
    20     Section 110.  The heading of Subdivision (B) of Article VI of
    21  the act is reenacted to read:
    22                          (B)  Nuisances.
    23     Section 111.  Section 611 of the act is reenacted and amended
    24  to read:
    25     Section 611.  Nuisances; Actions To Enjoin.--(a)  Any room,
    26  house, building, boat, vehicle, structure or place, except a
    27  private home, where liquor, alcohol or malt or brewed beverages
    28  are manufactured, possessed, sold, transported, offered for
    29  sale, bartered or furnished, or stored in bond, or stored for
    30  hire, in violation of this act, and all such liquids, beverages
    19870H1000B1864                 - 224 -

     1  and property kept or used in maintaining the same, are hereby
     2  declared to be common nuisances, and any person who maintains
     3  such a common nuisance shall be guilty of a misdemeanor and,
     4  upon conviction thereof, shall be subject to the same penalties
     5  provided in section four hundred ninety four of this act.
     6     (b)  An action to enjoin any nuisance defined in this act may
     7  be brought in the name of the Commonwealth of Pennsylvania by
     8  the Attorney General [or], by the district attorney of the
     9  proper county or by a person who resides or has a place of
    10  business within five hundred feet of the location of the alleged
    11  nuisance. Such action shall be brought and tried as an action in
    12  equity and may be brought in any court having jurisdiction to
    13  hear and determine equity cases within the county in which the
    14  offense occurs. If it is made to appear, by affidavit or
    15  otherwise, to the satisfaction of the court that such nuisance
    16  exists, a temporary writ of injunction shall forthwith issue,
    17  restraining the defendant from conducting or permitting the
    18  continuance of such nuisance until the conclusion of the
    19  proceedings. If a temporary injunction is prayed for, the court
    20  may issue an order restraining the defendant and all other
    21  persons from removing or in any way interfering with the
    22  liquids, beverages or other things used in connection with the
    23  violation of this act constituting such nuisance. No bond shall
    24  be required in instituting such proceedings brought in the name
    25  of the Commonwealth by the Attorney General or the district
    26  attorney. Where such proceedings are brought by a person, the
    27  court, upon application of the defendant and prior to any
    28  injunction being issued, may direct the plaintiff to post bond
    29  in such amount as the court may find to be reasonable and
    30  sufficient. It shall not be necessary for the court to find the
    19870H1000B1864                 - 225 -

     1  property involved was being unlawfully used, as aforesaid, at
     2  the time of the hearing, but on finding that the material
     3  allegations of the petition are true, the court shall order that
     4  no liquor, alcohol or malt or brewed beverage shall be
     5  manufactured, sold, offered for sale, transported, bartered or
     6  furnished, or stored in bond, or stored for hire in such room,
     7  house, building, structure, boat, vehicle, or place, or any part
     8  thereof.
     9     (c)  Upon the decree of the court ordering such nuisance to
    10  be abated, the court may, upon proper cause shown, order that
    11  the room, house, building, structure, boat, vehicle or place
    12  shall not be occupied or used for one year thereafter, but the
    13  court may, in its discretion, permit it to be occupied or used
    14  if the owner, lessee, tenant or occupant thereof shall give bond
    15  with sufficient surety to be approved by the court making the
    16  order in the penal and liquidated sum of not less than five
    17  hundred dollars ($500.00), payable to the Commonwealth of
    18  Pennsylvania, for use of the county in which said proceedings
    19  are instituted, and conditioned that neither liquor, alcohol,
    20  nor malt or brewed beverages will thereafter be manufactured,
    21  sold, transported, offered for sale, bartered or furnished, or
    22  stored in bond, or stored for hire therein or thereon in
    23  violation of this act, and that he will pay all fines, costs and
    24  damages that may be assessed for any violation of this act upon
    25  said property.
    26     Section 112.  The headings of Article VII and Subdivision (A)
    27  of Article VII of the act are reenacted to read:
    28                            ARTICLE VII.
    29               DEALING IN DISTILLERY BONDED WAREHOUSE
    30                           CERTIFICATES.
    19870H1000B1864                 - 226 -

     1                    (A)  Preliminary Provisions.
     2     Section 113.  Section 701 of the act is reenacted and amended  <--
     3  to read:
     4     Section 701.  Definitions and Interpretation.--(a)  When used
     5  in this article, the following words or phrases, unless the
     6  context clearly indicates otherwise, shall have the meanings
     7  ascribed to them in this section.
     8     "Agent" shall mean and include every person employed by a
     9  distillery certificate broker to sell, offer for sale or
    10  delivery, to purchase, exchange, or to enter into agreements for
    11  the purchase, sale or exchange, or to solicit subscriptions to,
    12  or orders for, or to undertake to dispose of, or to deal in any
    13  manner in, distillery bonded warehouse certificates.
    14     "Fraud," "fraudulent" and "fraudulent practice" shall include
    15  any misrepresentation in any manner of a relevant fact not made
    16  honestly and in good faith; any promise or representation or
    17  prediction as to the future not made honestly and in good faith,
    18  or an intentional failure to disclose a material fact; the
    19  gaining, directly or indirectly, through the purchase, sale or
    20  exchange of distillery bonded warehouse certificates, of any
    21  promotion fee or profit, selling or managing commission or
    22  profit, so gross and exorbitant as to be unconscionable and
    23  fraudulent; and any scheme, device, artifice or investment plan
    24  to obtain such an unconscionable profit: Provided, however, that
    25  nothing herein shall limit or diminish the full meaning of the
    26  terms "fraud" and "fraudulent" as applied or accepted in courts
    27  of law or equity.
    28     (b)  Nothing contained in this article shall be construed as
    29  permitting the holder or owner of a distillery bonded warehouse
    30  certificate, as defined in this act, to secure possession of the
    19870H1000B1864                 - 227 -

     1  whiskey or other potable distilled spirits named or designated
     2  in such certificate, except in accordance with the provisions of
     3  this act and the laws of this Commonwealth hereafter enacted
     4  relating to alcohol or alcoholic beverages and the regulations
     5  of the [board] commission adopted and promulgated thereunder.     <--
     6     Section 114.  The heading of Subdivision (B) of Article VII
     7  of the act is reenacted to read:
     8                           (B)  Permits.
     9     Section 115.  Section 702 of the act is reenacted to read:
    10     Section 702.  Unlawful to Act as a Distillery Certificate
    11  Broker or to Buy or Sell Distillery Bonded Warehouse Certificate
    12  Without a Permit.--It shall be unlawful for any person, except
    13  as hereinafter exempted, directly or through an agent, to sell,
    14  purchase, exchange, offer for sale, deliver, enter into
    15  agreements for the purchase, sale, exchange, solicit
    16  subscriptions to, orders for, undertake to dispose of, deal in
    17  any manner in, distillery bonded warehouse certificates, without
    18  first having obtained a permit to act as a distillery
    19  certificate broker as provided in this article.
    20     Section 116.  Section 703 of the act is reenacted and amended  <--
    21  to read:
    22     Section 703.  Authority to Issue Permits to Distillery
    23  Certificate Brokers.--Subject to the provisions of this article
    24  and regulations promulgated under this act, the [board]           <--
    25  commission shall have authority to issue to any reputable
    26  financially responsible person whose plan of business in dealing
    27  in distillery bonded warehouse certificates is not deemed by the
    28  [board] commission to constitute "fraudulent practice," as        <--
    29  defined herein, a permit to act as distillery certificate
    30  broker.
    19870H1000B1864                 - 228 -

     1     Section 117.  Section 704 of the act, amended September 28,
     2  1961 (P.L.1728, No.702), is reenacted and amended to read:        <--
     3     Section 704.  Application for Permit; Filing Fee.--Every
     4  applicant for a distillery certificate broker permit shall file
     5  a written application with the [board] commission outlining his   <--
     6  plan of business in dealing in distillery bonded warehouse
     7  certificates, in such form and containing such other information
     8  as the [board] commission shall from time to time prescribe,      <--
     9  which shall be accompanied by a filing fee of twenty dollars
    10  ($20) and the prescribed permit fee. If the applicant is a
    11  natural person, his application must show that he is a citizen
    12  of the United States, and if a corporation, the application must
    13  show that the corporation was created under the laws of
    14  Pennsylvania or holds a certificate of authority to transact
    15  business in Pennsylvania. The application shall be signed and
    16  verified by oath or affirmation of the applicant, if a natural
    17  person, or in the case of an association, by a member or partner
    18  thereof, or in the case of a corporation, by an executive
    19  officer thereof or any person specifically authorized by the
    20  corporation to sign the application, to which shall be attached
    21  written evidence of his authority. If the applicant is an
    22  association, the application shall set forth the names and
    23  addresses of the persons constituting the association, and if a
    24  corporation, the names and addresses of all the officers
    25  thereof. All applications must be verified by affidavit of
    26  applicant and if any false statement is intentionally made in
    27  any part of the application, the signer shall be guilty of a
    28  misdemeanor and upon indictment and conviction, shall be subject
    29  to penalties provided by this article.
    30     Section 118.  Section 705 of the act is reenacted and amended  <--
    19870H1000B1864                 - 229 -

     1  to read:
     2     Section 705.  Issuance of Permits.--Upon receipt of the
     3  application and proper fees and upon being satisfied of the
     4  truth of the statements in the application, and being also
     5  satisfied that the applicant's plan of business in dealing in
     6  distillery bonded warehouse certificates does not constitute
     7  "fraudulent practice," as defined in this article, and that the
     8  applicant is a person of good repute and financially
     9  responsible, the [board] commission may issue to such applicant   <--
    10  a permit authorizing the permittee to sell, purchase, exchange,
    11  pledge and deal in distillery bonded warehouse certificates.
    12     Section 119.  Section 706 of the act is reenacted to read:
    13     Section 706.  Office or Place of Business to be Maintained.--
    14  Every applicant for a distillery certificate broker permit under
    15  this article and every person to whom such a permit is issued
    16  shall maintain an office or place of business within the
    17  Commonwealth.
    18     Section 120.  Sections 707, 708 and 709 of the act are
    19  reenacted and amended to read:                                    <--
    20     Section 707.  Permit Fee; Permits Not Assignable or
    21  Transferable; Display of Permit; Term of Permit.--Every
    22  applicant for distillery certificate broker permit shall, before
    23  receiving such permit, pay to the [board] commission an annual    <--
    24  permit fee of one hundred dollars ($100). Permits issued under
    25  this act may not be assigned or transferred and shall be
    26  conspicuously displayed at the place of business of the
    27  permittee. All permits shall be valid only during the year for
    28  which issued and shall automatically expire on the thirty-first
    29  day of December of each calendar year unless suspended, revoked
    30  or cancelled prior thereto.
    19870H1000B1864                 - 230 -

     1     Section 708.  Records to be Kept.--Every person holding a
     2  permit issued under this act shall keep daily permanent records
     3  containing a complete record of all transactions in distillery
     4  bonded warehouse certificates within this Commonwealth, in such
     5  form and manner as the [board] commission may from time to time   <--
     6  prescribe. Such records shall be available for examination by
     7  the [board's] commission's officers at the broker's principal     <--
     8  place of business or office in Pennsylvania.
     9     Section 709.  Renewal of Permits.--Upon the filing of an
    10  application and the payment of the prescribed filing fee and
    11  permit fee in the same amount as herein required on original
    12  applications for permits, the [board] commission may renew the    <--
    13  permit for the calendar year beginning January first, provided
    14  such application for renewal is filed and fee paid on or before
    15  December fifteenth of the preceding year, unless the [board]      <--
    16  commission shall have given previous notice of objections to the
    17  renewal of the permit, based upon violation of this article or
    18  the [board's] commission's regulations promulgated thereunder,    <--
    19  or unless the applicant has by his own act become a person of
    20  ill repute or ceases to be financially responsible.
    21     Section 121.  Section 710 of the act, amended June 3, 1971
    22  (P.L.118, No.6) and April 28, 1978 (P.L.202, No.53), is
    23  reenacted and amended to read:                                    <--
    24     Section 710.  Permit Hearings; Appeals From Refusal of the
    25  [Board] Commission to Issue or Renew Permits.--The [board]        <--
    26  commission may of its own motion, and shall upon written request
    27  of any applicant for distillery certificate broker permit or for
    28  renewal thereof whose application for such permit or renewal has
    29  been refused, fix a time and place for hearings of such
    30  application for permit or for renewal thereof, notice of which
    19870H1000B1864                 - 231 -

     1  hearing shall be sent by registered mail to the applicant at the
     2  address given in his application. Such hearing shall be before
     3  the [board] commission or a member thereof. At such hearing, the  <--
     4  [board] commission shall present its reasons for its refusal or   <--
     5  withholding a permit or renewal thereof. The applicant may
     6  appear in person or by counsel, cross-examine the witnesses of
     7  the [board] commission, and may present evidence which shall be   <--
     8  subject to cross-examination by the [board] commission. Such      <--
     9  hearings shall be stenographically recorded. The [board]          <--
    10  commission shall thereupon grant or refuse the permit or renewal
    11  thereof. If the [board] commission shall refuse such permit or    <--
    12  renewal following such hearing, notice in writing of such
    13  refusal shall be sent by registered mail to the applicant at the
    14  address given in his application. In all such cases, the [board]  <--
    15  commission shall file of record at least a brief statement in
    16  the form of an opinion of the reasons for the ruling or order
    17  and furnish a copy thereof to the applicant.
    18     Section 122.  Section 712 of the act, amended April 28, 1978
    19  (P.L.202, No.53), is reenacted and amended to read:               <--
    20     Section 712.  Revocation and Suspension of Permit.--Upon
    21  learning of any violation of this act or regulations of the
    22  [board] commission promulgated thereunder, or any violation of    <--
    23  any laws of this Commonwealth or of the United States of America
    24  by the permittee, his officers, servants, agents or employes, or
    25  upon any other sufficient cause shown, the [board] commission     <--
    26  may cite such permittee to appear before it or a member thereof
    27  not less than ten or more than fifteen days from the date of
    28  sending such permittee, by registered mail, a notice addressed
    29  to him at the address set forth in the application for permit,
    30  to show cause why such permit should not be suspended or
    19870H1000B1864                 - 232 -

     1  revoked. When such notice is duly addressed and deposited in the
     2  post office, it shall be deemed due and sufficient notice.
     3  Hearings on such citations shall be held in the same manner as
     4  provided herein for hearing on application for permit. Upon such
     5  hearing, if satisfied that any such violation has occurred, or
     6  for other sufficient cause, the [board] commission shall          <--
     7  immediately suspend or revoke the permit, notifying the
     8  permittee thereof by registered letter addressed to the address
     9  set forth in the application for permit. Any permittee whose
    10  permit is revoked shall be ineligible to have a permit under
    11  this act until the expiration of three years from the date such
    12  permit was revoked. In all such cases, the [board] commission     <--
    13  shall file of record at least a brief statement in the form of
    14  an opinion of the reasons for the ruling or order.
    15     Section 123.  The heading of Subdivision (C) of Article VII
    16  of the act is reenacted to read:
    17                (C)  Permittees' Registered Agents.
    18     Section 124.  Section 721 of the act is reenacted to read:
    19     Section 721.  Unlawful to Act as Agent or to Employ Agents
    20  Without Registration.--It shall be unlawful for a distillery
    21  certificate broker to employ any person to act as agent, or for
    22  any person to act as agent for any distillery certificate
    23  broker, in purchasing, exchanging, offering for sale,
    24  delivering, entering into agreements for the purchase, sale,
    25  exchange, soliciting subscriptions to, orders for, undertaking
    26  to dispose of, dealing in any manner in, distillery bonded
    27  warehouse certificates, without such person first having been
    28  registered as an agent as provided in this article.
    29     Section 125.  Section 722 of the act is reenacted and amended  <--
    30  to read:
    19870H1000B1864                 - 233 -

     1     Section 722.  Registered Agents.--Every person holding a
     2  distillery certificate broker permit under this article who
     3  desires to employ an agent or agents in the operation of his
     4  business under the permit shall make application to the [board]   <--
     5  commission for registration of such agent or agents. Every such
     6  permittee's application shall set forth the name of the
     7  permittee and the address of his main office or principal place
     8  of business in Pennsylvania, and the full address where complete
     9  records are maintained covering the permittee's operations in
    10  Pennsylvania. With each such permittee's application there shall
    11  be filed an agent's application for each agent to be registered.
    12  Permittees' applications for agents and agents' applications
    13  shall contain such information as the [board] commission shall    <--
    14  from time to time require, and shall be signed and verified by
    15  oath or affirmation of the agent. Each application shall be
    16  accompanied by two unmounted photographs of the agent.
    17     Section 126.  Section 723 of the act is reenacted to read:
    18     Section 723.  Registration Fee.--Every application for the
    19  registration of agents filed by a permittee shall be accompanied
    20  by a registration fee in the amount of ten dollars ($10) for
    21  each agent to be registered, which shall cover the agent's
    22  registration from date of approval until December thirty-first
    23  of the year in which approved. Registrations may be renewed for
    24  a period of one calendar year upon the filing of a new
    25  application and payment of the same registration fee as herein
    26  provided for original registration, together with agent's new
    27  application and photographs of each agent. Applications for
    28  renewal of registration shall be filed not later than December
    29  fifteenth of each year.
    30     Section 127.  Section 724 of the act is reenacted and amended  <--
    19870H1000B1864                 - 234 -

     1  to read:
     2     Section 724.  Registration and Issuance of Identification
     3  Card.--Upon receipt of the application, the proper fees, and
     4  upon being satisfied of the truth of the statements in the
     5  application and that the applicant is a person of good
     6  reputation and the applicant seeks a registration as defined in
     7  this act, the [board] commission may register such agent and      <--
     8  issue to him an identification card.
     9     Section 128.  Sections 725 and 726 of the act, amended April
    10  28, 1978 (P.L.202, No.53), are reenacted and amended to read:     <--
    11     Section 725.  Hearings Upon Refusal of the [Board]             <--
    12  Commission; Appeals.--In the event that the [board] commission    <--
    13  shall refuse to issue or to renew an agent's registration, a
    14  hearing shall be had.
    15     Section 726.  Revocation and Suspension of Agents'
    16  Registrations.--Upon learning of any violation of this act or
    17  regulation of the [board] commission promulgated thereunder, or   <--
    18  any violation of any laws of this Commonwealth or of the United
    19  States of America by a registered agent, the [board] commission   <--
    20  may revoke or suspend the agent's registration in the same
    21  manner as provided herein for the revocation and suspension of
    22  distillery certificate broker permits.
    23     Section 129.  Section 727 of the act is reenacted and amended
    24  to read:
    25     Section 727.  Identification Cards.--(a)  Upon approval by
    26  the [board] commission of the application for registration of an  <--
    27  agent, there shall be issued to such registered agent an
    28  identification card containing the name and address of the
    29  distillery certificate broker, the name, address and physical
    30  description of the agent. There shall also be affixed to the
    19870H1000B1864                 - 235 -

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