PRINTER'S NO. 1821
No. 1365 Session of 2002
INTRODUCED BY CONTI, BODACK, THOMPSON AND TARTAGLIONE,
MARCH 20, 2002
REFERRED TO LAW AND JUSTICE, MARCH 20, 2002
AN ACT
1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2 reenacted, "An act relating to alcoholic liquors, alcohol and
3 malt and brewed beverages; amending, revising, consolidating
4 and changing the laws relating thereto; regulating and
5 restricting the manufacture, purchase, sale, possession,
6 consumption, importation, transportation, furnishing, holding
7 in bond, holding in storage, traffic in and use of alcoholic
8 liquors, alcohol and malt and brewed beverages and the
9 persons engaged or employed therein; defining the powers and
10 duties of the Pennsylvania Liquor Control Board; providing
11 for the establishment and operation of State liquor stores,
12 for the payment of certain license fees to the respective
13 municipalities and townships, for the abatement of certain
14 nuisances and, in certain cases, for search and seizure
15 without warrant; prescribing penalties and forfeitures;
16 providing for local option, and repealing existing laws,"
17 defining "arts council," "confectionery," "eligible entity"
18 and "pecuniary interest"; and further providing for the
19 definitions of "eating place" and "restaurant," for salaries,
20 for appointment of members, for bonds required of members and
21 secretary, for board and enforcement bureau subject to State
22 ethics and adverse interest acts, for restrictions on members
23 of the board and on certain employees of the Commonwealth,
24 for wine marketing, for sales by Pennsylvania liquor stores,
25 for confectionery containing alcohol or liquor, for authority
26 to issue liquor licenses to hotels, restaurants and clubs,
27 for applications for hotel, restaurant and club liquor
28 licenses, for issuance of hotel, restaurant and club liquor
29 licenses, for sales by liquor licensees, for secondary
30 service area, for special occasion permits, for sacramental
31 wine licenses, for liquor importers' licenses, for
32 interlocking business prohibited as to manufacturers, etc.,
33 for malt and brewed beverages (excluding manufacturers), for
1 malt and brewed beverages retail licenses, for application
2 for distributors', importing distributors' and retail
3 dispensers' licenses, for prohibitions against the grant of
4 licenses, for retail dispensers' restrictions on purchases
5 and sales, for interlocking business prohibited as to malt or
6 brewed beverages, for hearings upon refusal of licenses,
7 renewals or transfers, for renewal of licenses, for
8 revocation and suspension of licenses, for local option, for
9 exchange of certain licenses, for unlawful acts relative to
10 liquor, alcohol and liquor licensees, for unlawful acts
11 relative to malt or brewed beverages and licensees, for
12 unlawful acts relative to liquor, malt and brewed beverages
13 and licensees, for unlawful advertising, for distilleries and
14 for business hours.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. The definitions of "eating place" and
18 "restaurant" in section 102 of the act of April 12, 1951
19 (P.L.90, No.21), known as the Liquor Code, reenacted and amended
20 June 29, 1987 (P.L.32, No.14), and amended February 21, 2002
21 (P.L.103, No.10), are amended and the section is amended by
22 adding definitions to read:
23 Section 102. Definitions.--The following words or phrases,
24 unless the context clearly indicates otherwise, shall have the
25 meanings ascribed to them in this section:
26 * * *
27 "Arts council" shall mean a tax-exempt organization which
28 promotes the visual arts, performing arts, or both, and which
29 receives funding under the Local Arts Services Program
30 administered by the Pennsylvania Council of the Arts.
31 * * *
32 "Confectionery" shall mean sweets, such as ice cream,
33 candies, pastries, preserves and similar items.
34 * * *
35 "Eating place" shall mean a premise where food is regularly
36 and customarily prepared and sold, having a total area of not
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1 less than three hundred square feet available to the public in
2 one or more rooms, other than living quarters, and equipped with
3 tables and chairs, including bar seats, accommodating thirty
4 persons at one time. The board shall, by regulation, set forth
5 what constitutes tables and chairs sufficient to accommodate
6 thirty persons at one time.
7 "Eligible entity" shall mean a hospital, a church, a
8 synagogue, a volunteer fire company, a volunteer ambulance
9 company, a volunteer rescue squad, a unit of a nationally
10 chartered club which has been issued a club liquor license, a
11 library, a nationally accredited Pennsylvania nonprofit
12 zoological institution licensed by the United States Department
13 of Agriculture, a nonprofit agricultural association in
14 existence for at least ten years, a bona fide sportsmen's club
15 in existence for at least ten years, a nationally chartered
16 veterans' organization and any affiliated lodge or subdivision
17 of such organization, a fraternal benefit society that is
18 licensed to do business in this Commonwealth and any affiliated
19 lodge or subdivision of such fraternal benefit society, a museum
20 operated by a nonprofit corporation in a city of the third class
21 or township of the first class, a nonprofit corporation engaged
22 in the performing arts in a city of the third class or in an
23 incorporated town, an arts council, a nonprofit corporation that
24 operates an arts facility or museum in a city of the third class
25 in the county of the fourth class or a nonprofit organization as
26 defined under section 501(c)(4) of the Internal Revenue Code of
27 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(4)) conducting a
28 regatta in a city of the second class with the permit to be used
29 on State park grounds or conducting a family-oriented
30 celebration as part of Welcome America in a city of the first
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1 class on property leased from that city for more than fifty
2 years.
3 * * *
4 "Pecuniary interest" shall mean a person who exercises or has
5 the ability to exercise substantial control of a licensed
6 business and who receives a substantial portion of the proceeds
7 of the licensed business. There shall be a rebuttable
8 presumption that a person has acquired a pecuniary interest if
9 it receives the equivalent of ten per centum or more of the net
10 proceeds of the operation of the licensed business and it
11 exercises substantial control of the licensed business by
12 employing a majority of the employes at the licensed business by
13 independently making the day-to-day decisions concerning the
14 operation of the licensed business or by acting as the final
15 decision maker on the manner in which the licensed business
16 operates.
17 * * *
18 "Restaurant" shall mean a reputable place operated by
19 responsible persons of good reputation and habitually and
20 principally used for the purpose of providing food for the
21 public, the place to have an area within a building of not less
22 than four hundred square feet, equipped with tables and chairs,
23 including bar seats, accommodating at least thirty persons at
24 one time. The board shall, by regulation, set forth what
25 constitutes tables and chairs sufficient to accommodate thirty
26 persons at one time.
27 * * *
28 Section 2. Section 201 of the act, amended February 21, 2002
29 (P.L.103, No. 10), is amended to read:
30 Section 201. Appointment of Members; Terms[; Salaries].--An
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1 independent administrative board to be known as the
2 "Pennsylvania Liquor Control Board" is hereby created. The board
3 shall consist of three members to be appointed by the Governor
4 by and with the advice and consent of two-thirds of all the
5 members of the Senate, not more than two of whom shall be from
6 the same political party as the Governor. [Of the members first
7 appointed after the effective date of this amendatory act, one
8 member shall serve a term of three years, one member shall serve
9 a term of four years, and one member shall serve a term of five
10 years. Subsequent terms] Each term shall be for four years,
11 ending on the third Tuesday in May. A member may continue to
12 hold office for a period not to exceed six months beyond the
13 expiration of that member's term if a successor to that member
14 has not been duly appointed and qualified according to law.
15 [Each of the members shall receive an annual salary pursuant to
16 the provisions of the act of September 30, 1983 (P.L.160,
17 No.39), known as the "Public Official Compensation Law."]
18 Section 3. Sections 205 and 206.1(a) and (b) of the act are
19 amended to read:
20 [Section 205. Bonds Required of Members and Secretary.--
21 Before entering upon the duties of their respective offices or
22 positions, each member of the board and the secretary shall
23 execute and file with the State Treasurer a bond in such penal
24 sum as shall be fixed by the Executive Board of this
25 Commonwealth upon recommendation of the Governor, but the amount
26 of any such bond shall not be less than ten thousand dollars
27 ($10,000). Bonds in such penal sums as shall be fixed by the
28 Executive Board likewise shall be executed and filed with the
29 State Treasurer by such employes of the board as the head of
30 such board shall, with the approval of the Executive Board,
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1 prescribe. Such bonds shall be payable to the Commonwealth of
2 Pennsylvania and shall be conditioned for the faithful
3 performance of the members', secretary's or employes' duties
4 imposed by law or by lawful authority and that the person bonded
5 will not knowingly violate the provisions of this act. All bonds
6 required to be given under this section shall, before being
7 accepted by the State Treasurer, be approved by the Attorney
8 General, and unless the Commonwealth shall establish its own
9 indemnity fund, all such bonds shall be given with security
10 approved by the Attorney General. If the Commonwealth shall
11 establish its own indemnity fund, the Executive Board may,
12 nevertheless, require any bond given hereunder to be executed by
13 a surety or sureties satisfactory to the Attorney General. The
14 cost of such bonds required to be executed by a surety or
15 sureties shall be borne by the board as part of its operating
16 expense.]
17 Section 206.1. Board and Enforcement Bureau Subject to State
18 Ethics [and Adverse Interest Acts.--(a) Except to the extent
19 that the penalties provided in section 210 of this act for
20 violations are more stringent, the board, its members and all of
21 its employes and employes of the enforcement bureau shall be
22 subject to the act of October 4, 1978 (P.L.883, No.170),
23 referred to as the Public Official and Employee Ethics Law, and
24 the act of July 19, 1957 (P.L.1017, No.451), known as the "State
25 Adverse Interest Act."
26 (b) Membership on the board and employment or continued
27 employment as an employe of the board or enforcement bureau is
28 conditioned upon compliance with all of the provisions of the
29 acts specified in subsection (a), including, but not limited to,
30 the filing of statements of financial interests required by
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1 section 5 of the Public Official and Employee Ethics Law.
2 Acceptance or retention of employment shall be deemed as
3 voluntary consent to submit to the financial reporting
4 requirements of the Public Official and Employee Ethics Law as a
5 condition of employment. Failure to timely comply with the
6 requirements shall result in immediate termination of
7 employment.] Act.--Both the board and the enforcement bureau are
8 subject to the provisions of 65 Pa.C.S. Ch. 11 (relating to
9 ethics standards and financial disclosure).
10 Section 4. Section 210 of the act, amended December 21, 1988
11 (P.L.1879, No.183), is amended to read:
12 [Section 210. Restrictions on Members of the Board and
13 Certain Employes of Commonwealth.--(a) A member or employe of
14 the board or enforcement bureau or a member of the immediate
15 family of a member or employe of the board or enforcement bureau
16 shall not be directly or indirectly interested or engaged in any
17 other business or undertaking within the Commonwealth dealing in
18 liquor, alcohol, or malt or brewed beverages, whether as owner,
19 part owner, partner, member of syndicate, holder of stock
20 exceeding five percent (5%) of the equity at fair market value
21 of the business, independent contractor or manager of a licensed
22 establishment required under 40 Pa. Code § 5.23 (relating to
23 appointment of managers), and whether for his own benefit or in
24 a fiduciary capacity for some other person. For the purpose of
25 this subsection only, "employe of the board or Enforcement
26 Bureau" shall mean any individual employed by the board or
27 Enforcement Bureau who is responsible for taking or recommending
28 official action of a nonministerial nature with regard to:
29 (1) contracting or procurement;
30 (2) administering or monitoring grants or subsidies;
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1 (3) planning or zoning;
2 (4) inspecting, licensing, regulating or auditing any
3 person; or
4 (5) any other activity where the official action has an
5 economic impact of greater than a de minimis nature on the
6 interests of any person.
7 (b) No member or employe of the board or enforcement bureau
8 or a member of the immediate family of a member or employe of
9 the board or enforcement bureau nor any employe of the
10 Commonwealth shall solicit or receive, directly or indirectly,
11 any commission, remuneration or gift whatsoever, from any person
12 having sold, selling or offering liquor or alcohol for sale to
13 the board for use in Pennsylvania Liquor Stores.
14 (c) No person convicted of an infamous crime may be employed
15 as a member or employe by the board or enforcement bureau.
16 (d) No member or employe of the board or enforcement bureau
17 may use his position with the board or enforcement bureau, or
18 any confidential information received through his position with
19 the board or enforcement bureau, to obtain financial gain, other
20 than compensation provided by law, for himself, a member of his
21 immediate family or a business with which he is associated.
22 (e) No person may offer or give to a member or employe of
23 the board or enforcement bureau or a member of his immediate
24 family or a business with which he is associated, and no member
25 or employe of the board or enforcement bureau may solicit or
26 accept anything of value, including a gift, loan, political
27 contribution, reward or promise of future employment, based on
28 an understanding that the vote, official action or judgment of
29 the member or employe of the board or enforcement bureau would
30 be influenced thereby.
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1 (f) No member or employe of the board or enforcement bureau
2 or a member of his immediate family or any business in which the
3 member or employe or a member of his immediate family is a
4 director, officer or owner or holder of stock exceeding five
5 percent (5%) of the equity at fair market value of the business
6 may enter into any contract valued at five hundred dollars
7 ($500) or more to provide goods or services to the board or
8 enforcement bureau unless the contract has been awarded to the
9 lowest responsible bidder through an open and public process,
10 including prior public notice and subsequent public disclosure
11 of all proposals considered and contracts awarded.
12 (g) No former member or employe of the board or enforcement
13 bureau may represent a person, with or without compensation, on
14 any matter before the board or enforcement bureau for one year
15 after leaving the board or enforcement bureau.
16 (h) No member or employe of the board or enforcement bureau
17 or an advisor or consultant thereto having recommended to the
18 board or enforcement bureau either the making of a contract or a
19 course of action of which the making of a contract is an express
20 or implied part, may, at any time thereafter, have an adverse
21 interest in that contract.
22 (i) No member or employe of the board or enforcement bureau
23 may influence or attempt to influence the making of, or
24 supervise or deal with, a contract with the board or enforcement
25 bureau in which he has an adverse interest.
26 (j) No member or employe of the board or enforcement bureau
27 may have an adverse interest in a contract with the board or
28 enforcement bureau.
29 (k) No person having an adverse interest in a contract with
30 the board or enforcement bureau may become an employe of the
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1 board or enforcement bureau until the adverse interest has been
2 wholly divested.
3 (l) No member or employe of the board or enforcement bureau,
4 except in the performance of his duties as such employe, may,
5 for remuneration, directly or indirectly, represent a person
6 upon a matter pending before the board or enforcement bureau.
7 (m) (1) Any person who violates the provisions of this
8 section shall have his employment by the board or enforcement
9 bureau immediately terminated by the appropriate person having
10 the power to terminate and shall be liable to the board or
11 enforcement bureau to reimburse the board or enforcement bureau
12 for all compensation received by him from the board or
13 enforcement bureau while employed in violation of subsection
14 (c).
15 (2) Any person who violates the provisions of subsections
16 (b), (d) or (e) shall be guilty of a felony and, upon conviction
17 thereof, shall be sentenced to pay a fine of not more than ten
18 thousand dollars ($10,000) or to undergo imprisonment for not
19 more than five (5) years, or both.
20 (3) Any person who violates the provisions of subsections
21 (a) or (f) through (l) shall be guilty of a misdemeanor and,
22 upon conviction thereof, shall be sentenced to pay a fine of not
23 more than one thousand dollars ($1,000) or to undergo
24 imprisonment for not more than one (1) year, or both.
25 (4) Any person who obtains financial gain from violating any
26 provisions of this section, in addition to any other penalty
27 provided by law, shall pay into the accounts of the board a sum
28 of money equal to three (3) times the financial gain resulting
29 from the violation.
30 (5) Any person who violates the provisions of this section
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1 shall be barred for a period of five (5) years from engaging in
2 any business or contract with the board or enforcement bureau.
3 (6) The penalties and sanctions provided by this subsection
4 shall supersede any similar penalties and sanctions provided by
5 the act of July 19, 1957 (P.L.1017, No.451), known as the "State
6 Adverse Interest Act," and the act of October 4, 1978 (P.L.883,
7 No.170), referred to as the Public Official and Employee Ethics
8 Law.
9 (n) As used in this section, the following words and phrases
10 shall have the meanings given to them in this subsection:
11 "Business" shall mean a corporation, partnership, sole
12 proprietorship, firm, enterprise, franchise, association,
13 organization, self-employed individual, holding company, joint-
14 stock company, receivership, trust or legal entity organized for
15 profit or as a not-for-profit corporation or organization.
16 "Immediate family" shall mean a spouse residing in the
17 person's household and minor dependent children.
18 "Infamous crime" shall mean a violation and conviction for an
19 offense which would disqualify an individual from holding public
20 office pursuant to section 6 of Article II of the Constitution
21 of Pennsylvania; a conviction within the preceding ten (10)
22 years for a violation of this section or of 18 Pa.C.S. § 4113
23 (relating to misapplication of entrusted property and property
24 of government or financial institutions), Ch. 47 (relating to
25 bribery and corrupt influence), Ch. 49 (relating to
26 falsification and intimidation), Ch. 51 (relating to obstructing
27 governmental operations) or Ch. 53 (relating to abuse of
28 office); or a violation of the laws of this Commonwealth or
29 another state or the Federal Government for which an individual
30 has been convicted within the preceding ten (10) years and which
20020S1365B1821 - 11 -
1 is classified as a felony.]
2 Section 5. Sections 215(c) and (d) and 305(h) of the act are
3 amended to read:
4 Section 215. Wine Marketing.--* * *
5 [(c) The board shall establish that at least five per centum
6 of all State stores within a metropolitan area are wine
7 specialty stores, at which premium wine shall be sold. These
8 stores shall not sell any distilled product. The board may
9 establish the wine specialty stores in locations which provide
10 the greatest customer traffic and the greatest gross profit to
11 the board. These locations may include established retail
12 establishments. Board employes shall staff these locations. The
13 board shall have the option of closing stores which are
14 unprofitable for two consecutive fiscal years.]
15 (d) [(1) The term "metropolitan area," as used in this
16 section, shall mean any one county or any combination of two,
17 three or four counties contiguous and adjacent with a total
18 population of fifty thousand or more.]
19 (2) The term "wine," as used in this section, shall mean
20 liquor which is fermented from grapes and other fruits, having
21 alcoholic content of twenty-four per centum or less. The term
22 "wine" shall not include malt or brewed beverages, nor shall
23 wine include any products containing alcohol derived from malt,
24 grain, cereal, molasses or cactus.
25 Section 305. Sales by Pennsylvania Liquor Stores.--* * *
26 (h) Every Pennsylvania Liquor Store shall sell gift
27 certificates which may be redeemed for liquor. In addition, the
28 board may sell corkscrews and wine sleeves at Pennsylvania
29 liquor stores.
30 Section 6. Section 305.1 of the act, added July 13, 1987
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1 (P.L.331, No.61), is amended to read:
2 Section 305.1. Confectionery Containing Alcohol or Liquor.--
3 (a) Notwithstanding the prohibition against the manufacture of
4 confectionery containing alcohol as set forth in [the fifth
5 clause of subsection (a) of section 3 of the act of May 13, 1909
6 (P.L.520, No.292), referred to as the Pure Food Law,] section 3
7 of the act of July 7, 1994 (P.L.421, No.70), known as the "Food
8 Act," the manufacture, storage, transportation and delivery to
9 points out-of-State by manufacturers of confectionery containing
10 alcohol or liquor is permitted.
11 (b) The sale of confectionery containing alcohol or liquor
12 is prohibited within this Commonwealth.
13 (c) This section is not intended to cover, govern, nor
14 control the sale of confectionery containing tinctures or
15 extracts used for flavoring purposes or solvents for glazes.
16 (d) This section is not intended to cover confectioneries in
17 which the alcohol or liquor substantially evaporates during the
18 creation of the confectionery. In addition, notwithstanding
19 section 3 of the "Food Act," it shall be lawful to sell
20 confectioneries which contain one ounce of alcohol or less by
21 volume to individuals twenty-one years of age or older. Such
22 items may be sold by nonlicensed entities.
23 Section 7. Section 401 of the act is amended to read:
24 Section 401. Authority to Issue Liquor Licenses to Hotels,
25 Restaurants and Clubs.--(a) Subject to the provisions of this
26 act and regulations promulgated under this act, the board shall
27 have authority to issue a retail liquor license for any premises
28 kept or operated by a hotel, restaurant or club and specified in
29 the license entitling the hotel, restaurant or club to purchase
30 liquor from a Pennsylvania Liquor Store and to keep on the
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1 premises such liquor and, subject to the provisions of this act
2 and the regulations made thereunder, to sell the same and also
3 malt or brewed beverages to guests, patrons or members for
4 consumption on the hotel, restaurant or club premises. Such
5 licensees, other than clubs, shall be permitted to sell malt or
6 brewed beverages for consumption off the premises where sold in
7 quantities of not more than one hundred ninety-two fluid ounces
8 in a single sale to one person. Such licenses shall be known as
9 hotel liquor licenses, restaurant liquor licenses and club
10 liquor licenses, respectively. [No person who holds, either by
11 appointment or election, any public office which involves the
12 duty to enforce any of the penal laws of the United States of
13 America or the penal laws of the Commonwealth of Pennsylvania or
14 any penal ordinance or resolution of any political subdivision
15 of this Commonwealth shall be issued any hotel or restaurant
16 liquor license, nor shall such a person have any interest,
17 directly or indirectly, in any such license.] No person who
18 holds any office which involves the duty to enforce any of the
19 penal laws of the United States of America, this Commonwealth or
20 of any political subdivision of this Commonwealth shall have any
21 interest in any hotel or restaurant liquor license. This
22 prohibition applies to anyone with arrest authority, including,
23 but not limited to, police officers, sheriffs, district
24 attorneys, state attorneys general and United States attorneys.
25 This prohibition shall also apply to district justices, judges
26 or any other individuals who can impose a criminal sentence.
27 This prohibition does not apply to members of the legislature,
28 township supervisors, city councilpersons, mayors without arrest
29 authority and any other office that does not involve the ability
30 to arrest or the ability to impose a criminal sentence. This
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1 prohibition does not apply if the proposed premises are located
2 outside the jurisdiction of the individual in question.
3 (b) The board may issue to any club which caters to groups
4 of non-members, either privately or for functions, a catering
5 license, and the board shall, by its rules and regulations,
6 define what constitutes catering under this subsection except
7 that any club which is issued a catering license shall not be
8 prohibited from catering on Sundays during the hours which the
9 club may lawfully serve liquor, malt or brewed beverages.
10 Section 8. Section 403(a), (b) and (c) of the act, amended
11 February 21, 2002 (P.L.103, No.10), are amended to read:
12 Section 403. Applications for Hotel, Restaurant and Club
13 Liquor Licenses.--(a) Every applicant for a hotel liquor
14 license, restaurant liquor license or club liquor license or for
15 the transfer of an existing license to another premises not then
16 licensed or to another person shall file a written application
17 with the board in such form and containing such information as
18 the board shall from time to time prescribe, which shall be
19 accompanied by a filing fee and an annual license fee as
20 prescribed in section 614-A of the act of April 9, 1929
21 (P.L.177, No.175), known as "The Administrative Code of 1929."
22 Every such application shall contain a description of that part
23 of the hotel, restaurant or club for which the applicant desires
24 a license and shall set forth such other material information,
25 description or plan of that part of the hotel, restaurant or
26 club where it is proposed to keep and sell liquor as may be
27 required by the regulations of the board. The descriptions,
28 information and plans referred to in this subsection shall show
29 the hotel, restaurant, club, or the proposed location for the
30 construction of a hotel, restaurant or club, at the time the
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1 application is made, and shall show any alterations proposed to
2 be made thereto, or the new building proposed to be constructed
3 after the approval by the board of the application for a license
4 or for the transfer of an existing license to another premises
5 not then licensed or to another person. No physical alterations,
6 improvements or changes shall be required to be made to any
7 hotel, restaurant or club, nor shall any new building for any
8 such purpose, be required to be constructed until approval of
9 the application for license or for the transfer of an existing
10 license to another premises not then licensed or to another
11 person by the board. After approval of the application, the
12 licensee shall make the physical alterations, improvements and
13 changes to the licensed premises, or shall construct the new
14 building in the manner specified by the board at the time of
15 approval, and the licensee shall not transact any business under
16 the license until the board has approved the completed physical
17 alterations, improvements and changes to the licensed premises,
18 or the completed construction of the new building as conforming
19 to the specifications required by the board at the time of
20 issuance or transfer of the license, and is satisfied that the
21 establishment is a restaurant, hotel or club as defined by this
22 act. The board may require that all such alterations or
23 construction or conformity to definition be completed within six
24 months from the time of issuance or transfer of the license.
25 Failure to comply with these requirements shall be considered
26 cause for revocation of the license. No such license shall be
27 transferable between the time of issuance or transfer of the
28 license and the approval of the completed alterations or
29 construction by the board and full compliance by the licensee
30 with the requirements of this act, except in the case of death
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1 of the licensee prior to full compliance with all of the
2 aforementioned requirements[,] or unless full compliance is
3 impossible for reasons beyond the licensee's control, in which
4 [event] events, the license may be transferred by the board as
5 provided in this act.
6 (b) If the applicant is a natural person, his application
7 must show that he is a citizen of the United States or a
8 resident alien and [has been] is a resident of this Commonwealth
9 [for at least two years immediately preceding his application].
10 (c) If the applicant is a corporation, the application must
11 show that the corporation was created under the laws of
12 Pennsylvania or holds a certificate of authority to transact
13 business in Pennsylvania, that all officers, directors and
14 stockholders are citizens of the United States or resident
15 aliens, and that the manager of the hotel, restaurant or club is
16 a citizen of the United States or a resident alien.
17 * * *
18 Section 9. Section 404 of the act, amended December 20, 2000
19 (P.L.992, No.141), is amended to read:
20 Section 404. Issuance of Hotel, Restaurant and Club Liquor
21 Licenses.--Upon receipt of the application and the proper fees,
22 and upon being satisfied of the truth of the statements in the
23 application that the applicant is the only person in any manner
24 pecuniarily interested in the business so asked to be licensed
25 and that no other person will be in any manner pecuniarily
26 interested therein during the continuance of the license, except
27 as hereinafter permitted, and that the applicant is a person of
28 good repute, that the premises applied for meet all the
29 requirements of this act and the regulations of the board, that
30 the applicant seeks a license for a hotel, restaurant or club,
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1 as defined in this act, and that the issuance of such license is
2 not prohibited by any of the provisions of this act, the board
3 shall, in the case of a hotel or restaurant, grant and issue to
4 the applicant a liquor license, and in the case of a club may,
5 in its discretion, issue or refuse a license: Provided, however,
6 That in the case of any new license or the transfer of any
7 license to a new location the board may, in its discretion,
8 grant or refuse such new license or transfer if such place
9 proposed to be licensed is within three hundred feet of any
10 church, hospital, charitable institution, school, or public
11 playground, or if such new license or transfer is applied for a
12 place which is within two hundred feet of any other premises
13 which is licensed by the board: And provided further, That the
14 board's authority to refuse to grant a license because of its
15 proximity to a church, hospital, charitable institution, public
16 playground or other licensed premises shall not be applicable to
17 license applications submitted for public venues or performing
18 arts facilities: And provided further, That the board shall
19 refuse any application for a new license or the transfer of any
20 license to a new location if, in the board's opinion, such new
21 license or transfer would be detrimental to the welfare, health,
22 peace and morals of the inhabitants of the neighborhood within a
23 radius of five hundred feet of the place proposed to be
24 licensed: [And provided further, That prior to July 1, 1996, in
25 any license district in a city of the first class, the board
26 may, in its opinion, refuse any application for a new license or
27 for any person-to-person transfer which shall include a change
28 in stockholders involving ten per centum or more of all
29 outstanding voting stock and/or less than ten per centum of all
30 outstanding voting stock when such change involves a majority or
20020S1365B1821 - 18 -
1 controlling interest, of any license if the licensed premises is
2 or would be within three hundred feet of any church, hospital,
3 charitable institution, school or public playground or within
4 two hundred feet of any other premises licensed by the board and
5 if, in the opinion of the board, the licensed premises is or
6 would be detrimental to the welfare, health, peace and morals of
7 such church, hospital, school, public playground and/or the
8 inhabitants of the neighborhood within a radius of five hundred
9 feet of the licensed premises. This authority to refuse a
10 person-to-person transfer in a city of the first class is in
11 addition to and not in derogation of the authority of the board
12 generally stated for all areas of this Commonwealth:] And
13 provided further, That the board shall have the discretion to
14 refuse a license to any person or to any corporation,
15 partnership or association if such person, or any officer or
16 director of such corporation, or any member or partner of such
17 partnership or association shall have been convicted or found
18 guilty of a felony within a period of five years immediately
19 preceding the date of application for the said license. The
20 board shall refuse any application for a new license or the
21 transfer of any license to a location where the sale of liquid
22 fuels or oil is conducted. The board may enter into an agreement
23 with the applicant concerning additional restrictions on the
24 license in question. If the board and the applicant enter into
25 such an agreement, such agreement shall be binding on the
26 applicant. Failure by the applicant to adhere to the agreement
27 will be sufficient cause to form the basis for a citation under
28 section 471 and for the nonrenewal of the license under section
29 470. The board may, in its discretion, refuse an application for
30 an economic development license under section 461(b.1) or an
20020S1365B1821 - 19 -
1 application for an intermunicipal transfer of a license if the
2 board receives a protest from the governing body of the
3 receiving municipality. The receiving municipality of an
4 intermunicipal transfer or an economic development license under
5 section 461(b.1) may file a protest against the transfer of a
6 license into its municipality, and the receiving municipality
7 shall have standing in a hearing to present testimony in support
8 of or against the issuance or transfer of a license. Upon any
9 opening in any quota, an application for a new license shall
10 only be filed with the board for a period of six months
11 following said opening.
12 Section 10. Section 406(a)(1) of the act, amended November
13 10, 1999 (P.L.514, No.47), is amended and the section is amended
14 by adding a subsection to read:
15 Section 406. Sales by Liquor Licensees; Restrictions.--(a)
16 (1) Every hotel, restaurant or club liquor licensee may sell
17 liquor and malt or brewed beverages by the glass, open bottle or
18 other container, and in any mixture, for consumption only in
19 that part of the hotel or restaurant habitually used for the
20 serving of food to guests or patrons, or in a bowling alley that
21 is immediately adjacent to and under the same roof as a
22 restaurant when no minors are present, unless minors who are
23 present are under proper supervision as defined in section 493,
24 in the bowling alley, and in the case of hotels, to guests, and
25 in the case of clubs, to members, in their private rooms in the
26 hotel or club. No club licensee nor its officers, servants,
27 agents or employes, other than one holding a catering license,
28 shall sell any liquor or malt or brewed beverages to any person
29 except a member of the club. [In the case of a restaurant
30 located in a hotel which is not operated by the owner of the
20020S1365B1821 - 20 -
1 hotel and which is licensed to sell liquor under this act,
2 liquor and malt or brewed beverages may be sold] The holder of a
3 restaurant license located in a hotel may sell liquor or malt or
4 brewed beverages for consumption in that part of the restaurant
5 habitually used for the serving of meals to patrons and also to
6 guests in private guest rooms in the hotel. For the purpose of
7 this paragraph, any person who is an active member of another
8 club which is chartered by the same state or national
9 organization shall have the same rights and privileges as
10 members of the particular club. For the purpose of this
11 paragraph, any person who is an active member of any volunteer
12 firefighting company, association or group of this Commonwealth,
13 whether incorporated or unincorporated, shall upon the approval
14 of any club composed of volunteer firemen licensed under this
15 act, have the same social rights and privileges as members of
16 such licensed club. For the purposes of this paragraph, the term
17 "active member" shall not include a social member. Any club
18 licensee which is either an incorporated unit of a national
19 veterans' organization or an affiliated organization as defined
20 in section 461.1 shall be permitted to sell liquor or malt or
21 brewed beverages to any active member of another unit which is
22 chartered by the same national veterans' organization or to any
23 member of a nationally chartered auxiliary associated with the
24 same national veterans' organization.
25 * * *
26 (e) The holder of a hotel license or the holder of a
27 restaurant license located in a hotel may allow persons to
28 transport liquor or malt or brewed beverages from the licensed
29 portion of the premises to the unlicensed portion of the
30 premises, so long as the liquor or malt or brewed beverages
20020S1365B1821 - 21 -
1 remain on the hotel property. In addition, a holder of a
2 restaurant license located on a golf course may allow its
3 patrons to order malt or brewed beverages on licensed premises
4 for subsequent delivery by licensee on nonlicensed portions of
5 the premises, including the golf course.
6 Section 11. Section 406.1 of the act, amended July 1, 1994
7 (P.L.402, No.61),is amended to read:
8 Section 406.1. Secondary Service Area.--Upon application of
9 any restaurant, hotel, club[, any stadium as described in
10 section 408.9] or municipal golf course liquor licensee, and
11 payment of the appropriate fee, the board may approve a
12 secondary service area by extending the licensed premises to
13 include one additional permanent structure with dimensions of at
14 least one hundred seventy-five square feet, enclosed on three
15 sides and having adequate seating. Such secondary service area
16 must be located on property having a minimum area of one (1)
17 acre, and must be on land which is immediate, abutting, adjacent
18 or contiguous to the licensed premises with no intervening
19 public thoroughfare. [In any stadium as described in section
20 408.9, only malt or brewed beverages may be served.] There shall
21 be no requirement that the secondary service area be physically
22 connected to the original licensed premises. In addition, there
23 shall be no requirement that the secondary service area be
24 located in the same municipality as the original licensed
25 premises, provided, however, that the board shall not approve a
26 secondary service area in this case if that secondary service
27 area is located in any municipality where the granting of liquor
28 licenses has been prohibited as provided in this article.
29 Notwithstanding 40 Pa. Code § 7.21(c)(3), the licensee shall be
30 permitted to store, serve, sell or dispense food, liquor and
20020S1365B1821 - 22 -
1 malt or brewed beverages at the board approved secondary service
2 area.
3 Section 12. Section 408.4 of the act, amended or added April
4 29, 1994 (P.L.212, No.30), October 5, 1994 (P.L.522, No.77),
5 June 18, 1998 (P.L.664, No.86), December 21, 1998 (P.L.1202,
6 No.155), November 10, 1999 (P.L.514, No.47) and February 10,
7 2002 (P.L.103, No.10), is amended to read:
8 Section 408.4. Special Occasion Permits.--(a) [Upon
9 application of any hospital, church, synagogue, volunteer fire
10 company, volunteer ambulance company, volunteer rescue squad,
11 unit of a nationally chartered club which has been issued a club
12 liquor license, nonprofit agricultural association in existence
13 for at least ten years, bona fide sportsmen's club in existence
14 for at least ten years, nationally chartered veterans'
15 organization and any affiliated lodge or subdivision of such
16 organization, fraternal benefit society that is licensed to do
17 business in this Commonwealth and any affiliated lodge or
18 subdivision of such fraternal benefit society, or one auxiliary
19 of any of the foregoing, and upon payment of the prescribed fee
20 for special occasion permits under section 614-A of the act of
21 April 9, 1929 (P.L.177, No.175), known as "The Administrative
22 Code of 1929," the board shall issue a special occasion permit
23 good for a period of not more than six consecutive or
24 nonconsecutive days during a calendar year. Special occasion
25 permits may also be issued to a museum operated by a nonprofit
26 corporation in a city of the third class or township of the
27 first class or a nonprofit corporation engaged in the performing
28 arts in a city of the third class or in an incorporated town or
29 to an arts council or to a nonprofit corporation that operates
30 an arts facility or museum in a city of the third class in a
20020S1365B1821 - 23 -
1 county of the fourth class for a period of not more than six
2 nonconsecutive or ten consecutive days at the prescribed fee for
3 special occasion permits under section 614-A of "The
4 Administrative Code of 1929."
5 (a.1) Upon application by a nationally accredited
6 Pennsylvania nonprofit zoological institution licensed by the
7 United States Department of Agriculture, the board shall issue a
8 special occasion permit in accordance with subsection (a) for
9 six nonconsecutive days or ten consecutive days in a calendar
10 year.
11 (b) In any city, borough, incorporated town or township in
12 which the sale of liquor and/or malt or brewed beverages has
13 been approved by the electorate, such special occasion permit
14 shall authorize the permittee to sell liquor and/or malt or
15 brewed beverages as the case may be to any adult person on any
16 day for which the permit is issued.
17 (c) Such special occasion permit shall only be valid for the
18 number of days stated in the permit. Only one permit may be
19 issued to any permittee during the year. Provided, that a museum
20 operated by a nonprofit corporation in a city of the third class
21 or township of the first class, and a nonprofit corporation
22 engaged in the performing arts in a city of the third class, or
23 an arts council or a nonprofit corporation that operates an arts
24 facility or museum in a city of the third class in a county of
25 the fourth class may be issued no more than six permits during
26 the year, each permit being valid for only one day, or in the
27 alternative, one permit valid for no more than a total of ten
28 consecutive days per year, which may be issued only during the
29 month of August.
30 (d) Such permits shall only be issued for use at a special
20020S1365B1821 - 24 -
1 event including, but not limited to bazaars, picnics and
2 clambakes. The special event must be one which is used by the
3 permittee as a means of raising funds for itself.
4 (d.1) The hours during which the holder of a special
5 occasion permit may sell liquor or malt or brewed beverages
6 shall be limited to the hours set forth in section 406 which are
7 applicable to hotel and restaurant licensees. The hours during
8 which a nonprofit corporation engaged in the performing arts in
9 a city of the third class may sell liquor or malt or brewed
10 beverages pursuant to a special occasion permit shall be limited
11 to those hours set forth in section 408.3(g.1).
12 (d.2) At least forty-eight hours prior to the sale of any
13 liquor or malt or brewed beverages, the holder of a special
14 occasion permit shall notify the local police department, or in
15 the absence of a local police department, the Pennsylvania State
16 Police, of the times when and place where the sale of liquor or
17 malt or brewed beverages shall occur.
18 (e) The provisions of this section shall not be applicable
19 to any of the following:
20 (1) A licensee now or hereafter possessing a caterer's
21 license, other than a volunteer fire company, volunteer
22 ambulance company or volunteer rescue squad, which owns its own
23 facility and wishes to use its special occasion permit at that
24 facility.
25 (2) A professional fund raiser.
26 (e.1) Notwithstanding any provisions of law to the contrary,
27 a permittee who is a nonprofit organization as defined under
28 section 501(c)(4) of the Internal Revenue Code of 1986 (Public
29 Law 99-514, 26 U.S.C. § 501(c)(4)) may do any of the following:
30 (1) If the permittee is conducting a regatta, sell for
20020S1365B1821 - 25 -
1 consumption liquor and malt or brewed beverages in or on the
2 grounds of a State park located within a city of the second
3 class for a period not to exceed ten consecutive days per
4 calendar year.
5 (2) If the permittee is conducting a family-oriented
6 celebration as part of Welcome America in a city of the first
7 class on property leased from that city for a period of more
8 than fifty years, sell for consumption liquor and malt or brewed
9 beverages on such leased property for a period not to exceed ten
10 consecutive days per calendar year.
11 (3) If the permittee is a nonprofit corporation designated
12 by a city of the first class to conduct a millenium celebration
13 on behalf of the city on property located at four sites approved
14 by the board, sell for consumption champagne for a period not to
15 exceed two consecutive days between December 31, 1999, and
16 January 1, 2000.
17 (f) Any person selling liquor or malt or brewed beverages in
18 violation of this section shall, upon summary conviction, be
19 sentenced to pay a fine of two hundred fifty dollars ($250) for
20 the first offense and a fine of five hundred dollars ($500) for
21 each subsequent offense. This fine shall be in addition to any
22 other penalty imposed by law for the illegal sale of malt or
23 brewed beverages.
24 (g) For the purposes of this section, "arts council" means a
25 tax-exempt organization which promotes the visual arts,
26 performing arts, or both, and which receives funding under the
27 Local Arts Services Program administered by the Pennsylvania
28 Council on the Arts.] The board is authorized to issue a
29 special occasion permit to an eligible entity. The board may
30 also issue a special occasion permit to one auxiliary of any
20020S1365B1821 - 26 -
1 eligible entity. Any eligible entity that wishes to acquire a
2 special occasion permit must submit a written application to the
3 board in such form and containing such information as the board
4 shall from time to time prescribe. The fee for special occasion
5 permits shall be as set forth under section 614-A(24) of the act
6 of April 9, 1929 (P.L.177, No.175), known as "The Administrative
7 Code of 1929."
8 (b) Only one special occasion permit shall be issued to each
9 eligible entity per calendar year. Each permit may only be used
10 for six consecutive or nonconsecutive days; however, if the
11 eligible entity is a museum operated by a nonprofit corporation
12 in a city of the third class or township of the first class, a
13 nonprofit corporation engaged in the performing arts in a city
14 of the third class or in an incorporated town, or an arts
15 council, then the special occasion permit can be used for six
16 nonconsecutive or ten consecutive days.
17 (c) The eligible entity must give the local police
18 department or the Pennsylvania State Police, if there is no
19 local police department, written notice at least forty-eight
20 hours prior to each use of the special occasion permit. Written
21 notice consists of notifying the police of the date, time and
22 place of the impending sale of alcoholic beverages.
23 (d) Special occasion permit holders may sell alcoholic
24 beverages during the same hours as restaurant liquor license
25 holders. In addition, special occasion permit holders may sell
26 any type of alcohol for consumption off the licensed premises.
27 (e) The issuance of a special occasion permit does not
28 preclude the eligible entity from acquiring and retaining any
29 other liquor license to which it may be entitled; however, the
30 board shall not issue a special occasion permit for premises
20020S1365B1821 - 27 -
1 already licensed by the board unless the applicant owns the
2 premises and is a volunteer fire company, volunteer rescue
3 company or volunteer ambulance squad.
4 (f) The purpose of a special occasion permit is to provide
5 the eligible entity with a means of raising funds for itself.
6 The permit may be used in conjunction with activities and events
7 involving other entities; however, no one other than the holder
8 of the special occasion permit may acquire a pecuniary interest
9 in the permit.
10 (g) The board may refuse to issue a special occasion permit
11 if it finds that the applicant is not reputable, or does not
12 otherwise meet the requirements of this act. The right to refuse
13 to issue a special occasion permit may be based in whole or in
14 part on the applicant's prior operational history with either a
15 special occasion permit or a license issued by the board.
16 (h) The holder of a special occasion permit is subject to
17 the provisions of section 493(1).
18 Section 13. Sections 409(c) and 410(d) of the act are
19 amended to read:
20 Section 409. Sacramental Wine Licenses; Fees; Privileges;
21 Restrictions.--* * *
22 (c) If the applicant is a natural person, his application
23 must show that he is a citizen of the United States or a
24 resident alien and a resident of this Commonwealth. If the
25 applicant is an association or partnership, each and every
26 member of the association or partnership must be a citizen of
27 the United States or a resident alien and a resident of this
28 Commonwealth. If the applicant is a corporation, the application
29 must show that the corporation was created under the laws of
30 Pennsylvania or holds a certificate of authority to transact
20020S1365B1821 - 28 -
1 business in Pennsylvania, and that all officers, directors and
2 stockholders are citizens of the United States or resident
3 aliens.
4 * * *
5 Section 410. Liquor Importers' Licenses; Fees; Privileges;
6 Restrictions.--* * *
7 (d) If the applicant is a natural person, his application
8 must show that he is a citizen of the United States or a
9 resident alien and a resident of this Commonwealth. If the
10 applicant is an association or partnership, each and every
11 member of the association or partnership must be a citizen of
12 the United States or a resident alien and a resident of this
13 Commonwealth. If the applicant is a corporation, the application
14 must show that the corporation was created under the laws of
15 Pennsylvania or holds a certificate of authority to transact
16 business in Pennsylvania, and that all officers, directors and
17 stockholders are citizens of the United States or resident
18 aliens.
19 * * *
20 Section 14. Section 411 of the act is amended by adding a
21 subsection to read:
22 Section 411. Interlocking Business Prohibited.--* * *
23 (f) Notwithstanding any other provisions of this act, it
24 shall be lawful for a person to own an interest in a holder of a
25 manufacturer, importer or sacramental wine license and an
26 interest in a holder of a hotel, restaurant or club license so
27 long as the person is not an officer or director of either
28 license holder, does not hold a license of its own, and does not
29 exercise any control over any of the licensed entities.
30 Section 15. Section 431(b) and (c) of the act, amended June
20020S1365B1821 - 29 -
1 18, 1998 (P.L.664, No.86) and December 21, 1998 (P.L.1202,
2 No.155), are amended to read:
3 Section 431. Malt and Brewed Beverages Manufacturers',
4 Distributors' and Importing Distributors' Licenses.--* * *
5 (b) The board shall issue to any reputable person who
6 applies therefor, and pays the license fee hereinafter
7 prescribed, a distributor's or importing distributor's license
8 for the place which such person desires to maintain for the sale
9 of malt or brewed beverages, not for consumption on the premises
10 where sold, and in quantities of not less than a case or
11 original containers containing one hundred twenty-eight ounces
12 or more which may be sold separately as prepared for the market
13 by the manufacturer at the place of manufacture. The board shall
14 have the discretion to refuse a license to any person or to any
15 corporation, partnership or association if such person, or any
16 officer or director of such corporation, or any member or
17 partner of such partnership or association shall have been
18 convicted or found guilty of a felony within a period of five
19 years immediately preceding the date of application for the said
20 license: And provided further, That, in the case of any new
21 license or the transfer of any license to a new location, the
22 board may, in its discretion, grant or refuse such new license
23 or transfer if such place proposed to be licensed is within
24 three hundred feet of any church, hospital, charitable
25 institution, school or public playground, or if such new license
26 or transfer is applied for a place which is within two hundred
27 feet of any other premises which is licensed by the board: And
28 provided further, That the board shall refuse any application
29 for a new license or the transfer of any license to a new
30 location if, in the board's opinion, such new license or
20020S1365B1821 - 30 -
1 transfer would be detrimental to the welfare, health, peace and
2 morals of the inhabitants of the neighborhood within a radius of
3 five hundred feet of the place proposed to be licensed. 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. The board may enter into an agreement
7 with the applicant concerning additional restrictions on the
8 license in question. If the board and the applicant enter into
9 such an agreement, such agreement shall be binding on the
10 applicant. Failure by the applicant to adhere to the agreement
11 will be sufficient cause to form the basis for a citation under
12 section 471 and for the nonrenewal of the license under section
13 470. The board shall require notice to be posted on the property
14 or premises upon which the licensee or proposed licensee will
15 engage in sales of malt or brewed beverages. This notice shall
16 be similar to the notice required of hotel, restaurant and club
17 liquor licensees.
18 Except as hereinafter provided, such license shall authorize
19 the holder thereof to sell or deliver malt or brewed beverages
20 in quantities above specified anywhere within the Commonwealth
21 of Pennsylvania, which, in the case of distributors, have been
22 purchased only from persons licensed under this act as
23 manufacturers or importing distributors, and in the case of
24 importing distributors, have been purchased from manufacturers
25 or persons outside this Commonwealth engaged in the legal sale
26 of malt or brewed beverages or from manufacturers or importing
27 distributors licensed under this article. In the case of an
28 importing distributor, the holder of such a license shall be
29 authorized to store malt or brewed beverages owned by an out of
30 State manufacturer at a segregated portion of a warehouse or
20020S1365B1821 - 31 -
1 other storage facility authorized by section 441(d) and operated
2 by the importing distributor within its appointed territory and
3 deliver such beverages to another importing distributor who has
4 been granted distribution rights by the out of State
5 manufacturer as provided herein. The importing distributor shall
6 be permitted to receive a fee from the out of State manufacturer
7 for any related storage or delivery services. In the case of a
8 bailee for hire hired by an out of State manufacturer, the
9 holder of such a permit shall be authorized: to receive or store
10 malt or brewed beverages under the same conditions as permitted
11 for a distributor or importing distributor under section 441(f)
12 produced by that out of State manufacturer for sale by that
13 manufacturer to importing distributors to whom that out of State
14 manufacturer has given distribution rights pursuant to this
15 subsection or to purchasers outside this Commonwealth for
16 delivery outside this Commonwealth; or to ship to that out of
17 State manufacturer's storage facilities outside this
18 Commonwealth. The bailee for hire shall be permitted to receive
19 a fee from the out of State manufacturer for any related storage
20 or delivery services. The bailee for hire shall, as required in
21 Article V of this act, keep complete and accurate records of all
22 transactions, inventory, receipts and shipments and make all
23 records and the licensed areas available for inspection by the
24 board and for the Pennsylvania State Police, Bureau of Liquor
25 Control Enforcement, during normal business hours.
26 Each out of State manufacturer of malt or brewed beverages
27 whose products are sold and delivered in this Commonwealth shall
28 give distributing rights for such products in designated
29 geographical areas to specific importing distributors, and such
30 importing distributor shall not sell or deliver malt or brewed
20020S1365B1821 - 32 -
1 beverages manufactured by the out of State manufacturer to any
2 person issued a license under the provisions of this act whose
3 licensed premises are not located within the geographical area
4 for which he has been given distributing rights by such
5 manufacturer. Should a licensee accept the delivery of such malt
6 or brewed beverages in violation of this section, said licensee
7 shall be subject to a suspension of his license for at least
8 thirty days: Provided, That the importing distributor holding
9 such distributing rights for such product shall not sell or
10 deliver the same to another importing distributor without first
11 having entered into a written agreement with the said secondary
12 importing distributor setting forth the terms and conditions
13 under which such products are to be resold within the territory
14 granted to the primary importing distributor by the
15 manufacturer.
16 When a Pennsylvania manufacturer of malt or brewed beverages
17 licensed under this article names or constitutes a distributor
18 or importing distributor as the primary or original supplier of
19 his product, he shall also designate the specific geographical
20 area for which the said distributor or importing distributor is
21 given distributing rights, and such distributor or importing
22 distributor shall not sell or deliver the products of such
23 manufacturer to any person issued a license under the provisions
24 of this act whose licensed premises are not located within the
25 geographical area for which distributing rights have been given
26 to the distributor and importing distributor by the said
27 manufacturer: Provided, That the importing distributor holding
28 such distributing rights for such product shall not sell or
29 deliver the same to another importing distributor without first
30 having entered into a written agreement with the said secondary
20020S1365B1821 - 33 -
1 importing distributor setting forth the terms and conditions
2 under which such products are to be resold within the territory
3 granted to the primary importing distributor by the
4 manufacturer. Nothing herein contained shall be construed to
5 prevent any manufacturer from authorizing the importing
6 distributor holding the distributing rights for a designated
7 geographical area from selling the products of such manufacturer
8 to another importing distributor also holding distributing
9 rights from the same manufacturer for another geographical area,
10 providing such authority be contained in writing and a copy
11 thereof be given to each of the importing distributors so
12 affected.
13 * * *
14 (c) The aforesaid licenses shall be issued only to reputable
15 individuals, partnerships and associations who are, or whose
16 members are, citizens of the United States [and have for two
17 years prior to the date of their applications been] or resident
18 aliens and are residents of the Commonwealth of Pennsylvania or
19 to reputable limited partnerships or corporations organized or
20 duly registered under the laws of the Commonwealth of
21 Pennsylvania. Such licenses shall be issued to limited
22 partnerships duly organized or registered under the laws of the
23 Commonwealth of Pennsylvania only when it appears that all
24 general partners of such limited partnership are residents of
25 the Commonwealth of Pennsylvania. Such licenses shall be issued
26 to corporations duly organized or registered under the laws of
27 the Commonwealth of Pennsylvania only when it appears that all
28 of the officers and directors of the corporation are citizens of
29 the United States [and have been residents of the Commonwealth
30 of Pennsylvania for a period of at least two years prior to] or
20020S1365B1821 - 34 -
1 resident aliens and residents of the Commonwealth of
2 Pennsylvania on the date of application, and that at least
3 fifty-one per centum of the capital stock of such corporation is
4 actually owned by individuals who are citizens of the United
5 States [and have been residents of the Commonwealth of
6 Pennsylvania for a period of at least two years prior to] or
7 resident aliens and residents of the Commonwealth of
8 Pennsylvania on the date of application: Provided, That the
9 provisions of this subsection with respect to residence
10 requirements shall not apply to individuals, partners, officers,
11 directors and owners of capital stock, of corporations licensed
12 or applying for licenses as manufacturers of malt or brewed
13 beverages, nor shall the provisions of this subsection with
14 respect to stockholder requirements apply to corporations
15 licensed or applying for licenses as manufacturers of malt or
16 brewed beverages.
17 * * *
18 Section 16. Section 432(b) and (d) of the act, amended
19 December 20, 2000 (P.L.992, No.141), are amended to read:
20 Section 432. Malt and Brewed Beverages Retail Licenses.--* *
21 *
22 (b) In the case of hotels and eating places, licenses shall
23 be issued only to reputable persons who are citizens of the
24 United States [and have for two years been] or resident aliens
25 and residents of the Commonwealth of Pennsylvania at the date of
26 their application, or to reputable corporations organized or
27 duly registered under the laws of the Commonwealth of
28 Pennsylvania, all of whose officers and directors are citizens
29 of the United States. In the case of incorporated clubs,
30 licenses shall be issued only to those incorporated under the
20020S1365B1821 - 35 -
1 laws of Pennsylvania.
2 * * *
3 (d) The board shall, in its discretion, grant or refuse any
4 new license or the transfer of any license to a new location if
5 such place proposed to be licensed is within three hundred feet
6 of any church, hospital, charitable institution, school, or
7 public playground, or if such new license or transfer is applied
8 for a place which is within two hundred feet of any other
9 premises which is licensed by the board. The board shall refuse
10 any application for a new license or the transfer of any license
11 to a new location if, in the board's opinion, such new license
12 or transfer would be detrimental to the welfare, health, peace
13 and morals of the inhabitants of the neighborhood within a
14 radius of five hundred feet of the place to be licensed. The
15 board may enter into an agreement with the applicant concerning
16 additional restrictions on the license in question. If the board
17 and the applicant enter into such an agreement, such agreement
18 shall be binding on the applicant. Failure by the applicant to
19 adhere to the agreement will be sufficient cause to form the
20 basis for a citation under section 471 and for the nonrenewal of
21 the license under section 470. The board shall refuse any
22 application for a new license or the transfer of any license to
23 a location where the sale of liquid fuels or oil is conducted:
24 And provided further, That the board shall have the discretion
25 to refuse a license to any person or to any corporation,
26 partnership or association if such person, or any officer or
27 director of such corporation, or any member or partner of such
28 partnership or association shall have been convicted or found
29 guilty of a felony within a period of five years immediately
30 preceding the date of application for the said license. The
20020S1365B1821 - 36 -
1 board may, in its discretion, refuse an application for an
2 economic development license under section 461(b.1) or an
3 application for an intermunicipal transfer or a license if the
4 board receives a protest from the governing body of the
5 receiving municipality. The receiving municipality of an
6 intermunicipal transfer or an economic development license under
7 section 461(b.1) may file a protest against the approval for
8 issuance of a license for economic development or an
9 intermunicipal transfer of a license into its municipality, and
10 such municipality shall have standing in a hearing to present
11 testimony in support of or against the issuance or transfer of a
12 license. Upon any opening in any quota, an application for a new
13 license shall only be filed with the board for a period of six
14 months following said opening.
15 * * *
16 Section 17. Section 436(b) of the act, amended February 21,
17 2002 (P.L.103, No.10), is amended to read:
18 Section 436. Application for Distributors', Importing
19 Distributors' and Retail Dispensers' Licenses.--Application for
20 distributors', importing distributors' and retail dispensers'
21 licenses, or for the transfer of an existing license to another
22 premises not then licensed, or to another person, shall contain
23 or have attached thereto the following information and
24 statements:
25 * * *
26 (b) The particular place for which the license is desired
27 and a detailed description thereof. The description, information
28 and plans referred to in this subsection shall show the premises
29 or the proposed location for the construction of the premises at
30 the time the application is made, and shall show any alterations
20020S1365B1821 - 37 -
1 proposed to be made thereto, or the new building proposed to be
2 constructed after the approval by the board of the application
3 for a license, or for the transfer of an existing license to
4 another premises not then licensed or to another person. No
5 physical alterations, improvements or changes shall be required
6 to be made to any hotel, eating place or club, nor shall any new
7 building for any such purpose be required to be constructed
8 until approval of the application for license or for the
9 transfer of an existing license to another premises not then
10 licensed or to another person by the board. After approval of
11 the application, the licensee shall make the physical
12 alterations, improvements and changes to the licensed premises,
13 or shall construct the new building in the manner specified by
14 the board at the time of approval. The licensee shall not
15 transact any business under the license until the board has
16 approved the completed physical alterations, improvements and
17 changes of the licensed premises or the completed construction
18 of the new building as conforming to the specifications required
19 by the board at the time of issuance or transfer of the license
20 and is satisfied that the premises meet the requirements for a
21 distributor's or importing distributor's license as set forth in
22 this act or that the establishment is an eating place, hotel or
23 club as defined by this act. The board may require that all such
24 alterations or construction or conformity to definition be
25 completed within six months from the time of issuance or
26 transfer of the license. Failure to comply with these
27 requirements shall be considered cause for revocation of the
28 license. No such license shall be transferable between the time
29 of issuance or transfer of the license and the approval of the
30 completed alterations or construction by the board and full
20020S1365B1821 - 38 -
1 compliance by the licensee with the requirements of this act,
2 except in the case of death of the licensee prior to full
3 compliance with all of the aforementioned requirements[,] or
4 unless full compliance is impossible for reasons beyond the
5 licensee's control, in which [event] events the license may be
6 transferred by the board as provided in this act.
7 * * *
8 Section 18. Section 437(d) of the act is amended to read:
9 Section 437. Prohibitions Against the Grant of Licenses.--*
10 * *
11 (d) [No person who holds, either by appointment or election,
12 any public office which involves the duty to enforce any of the
13 penal laws of the United States of America or any of the penal
14 laws of this Commonwealth or any penal ordinance or resolution
15 of any political subdivision of this Commonwealth shall be
16 issued any manufacturer's, importing distributor's,
17 distributor's or retail dispenser's license, nor shall such a
18 person have any interest, directly or indirectly, in any such
19 license.] No person who holds any office which involves the duty
20 to enforce any of the penal laws of the United States of
21 America, this Commonwealth or of any political subdivision of
22 this Commonwealth shall have any interest in any manufacturer,
23 distributor, importing distributor, or eating place retail
24 dispenser license. This prohibition applies to anyone with
25 arrest authority, including, but not limited to, police
26 officers, sheriffs, district attorneys, state attorneys general
27 and United States attorneys. This prohibition shall also apply
28 to district justices, judges, or any other individuals who can
29 impose a criminal penalty. This prohibition does not apply to
30 members of the legislature, township supervisors, city council
20020S1365B1821 - 39 -
1 persons, mayors without arrest authority, and any other office
2 that does not involve the ability to arrest or the ability to
3 impose a criminal sentence. This prohibition also does not apply
4 if the proposed premises are located outside the jurisdiction of
5 the individual in question.
6 * * *
7 Section 19. Sections 442 and 443 of the act are amended by
8 adding subsections to read:
9 Section 442. Retail Dispensers' Restrictions on Purchases
10 and Sales.--* * *
11 (e) The holder of a retail dispenser license located in a
12 hotel may allow persons to transport malt or brewed beverages
13 from the licensed portion of the premises to the unlicensed
14 portion of the premises so long as the malt or brewed beverages
15 remain on the hotel property. In addition, the holder of a
16 retail dispenser license located on a golf course may allow its
17 patrons to order malt or brewed beverages on licensed premises
18 for subsequent delivery by the licensee on nonlicensed portions
19 of the premises, including the golf course.
20 Section 443. Interlocking Business Prohibited.--* * *
21 (f.1) Notwithstanding any other provisions of this act, it
22 shall be lawful for a person to own an interest in a holder of a
23 manufacturing license and an interest in a holder of a
24 distributor, importing distributor or retail dispenser license
25 so long as the entity is not an officer or director of any of
26 the licensed entities, does not hold a license of its own, and
27 does not exercise any control over any of the licensed entities.
28 Likewise, it shall be permissible for a person to have an
29 interest in a holder of a distributor or importing distributor
30 license and an interest in a holder of a retail dispenser
20020S1365B1821 - 40 -
1 license so long as that person is not an officer or director of
2 either license holder, does not hold a license of its own, and
3 does not exercise any control over any of the licensed entities.
4 * * *
5 Section 20. Section 464 of the act, amended December 20,
6 2000 (P.L.992, No.141), is amended to read:
7 Section 464. Hearings Upon Refusal of Licenses, Renewals or
8 Transfers; Appeals.--The board may of its own motion, and shall
9 upon the written request of any applicant for club, hotel or
10 restaurant liquor license, or any applicant for any malt or
11 brewed beverage license other than a public service license, or
12 for renewal or transfer thereof, or for the renewal of an
13 amusement permit, whose application for such license, renewal or
14 transfer, or the renewal of an amusement permit, has been
15 refused, fix a time and place for hearing of such application
16 for license or for renewal or transfer thereof, or the renewal
17 of an amusement permit, notice of which hearing shall be mailed
18 to the applicant at the address given in his application. Such
19 hearing shall be before a hearing examiner designated by the
20 board. At such hearing, the board shall present its reasons for
21 its refusal or withholding of license, renewal or transfer
22 thereof, or its refusal for renewal of an amusement permit. The
23 applicant may appear in person or by counsel, may cross-examine
24 the witnesses for the board and may present evidence which shall
25 likewise be subject to cross-examination by the board. Such
26 hearing shall be stenographically recorded. The hearing examiner
27 shall thereafter report, with the examiner's recommendation, to
28 the board in each case. The board shall thereupon grant or
29 refuse the license, renewal or transfer thereof or the renewal
30 of an amusement permit. In considering the renewal of a license
20020S1365B1821 - 41 -
1 or amusement permit, the board shall not refuse any such renewal
2 on the basis of the propriety of the original issuance or any
3 prior renewal of such license or amusement permit. If the board
4 shall refuse such license, renewal or transfer or the renewal of
5 an amusement permit, following such hearing, notice in writing
6 of such refusal shall be mailed to the applicant at the address
7 given in his application. In all such cases, the board shall
8 file of record at least a brief statement in the form of an
9 opinion of the reasons for the ruling or order and furnish a
10 copy thereof to the applicant. Any applicant who has appeared at
11 any hearing, as above provided, who is aggrieved by the refusal
12 of the board to issue any such license or to renew or transfer
13 any such license or to renew any amusement permit may appeal, or
14 any church, hospital, charitable institution, school or public
15 playground located within three hundred feet of the premises
16 applied for, aggrieved by the action of the board in granting
17 the issuance of any such license or the transfer of any such
18 license, may take an appeal limited to the question of such
19 grievance, within twenty days from date of refusal or grant, to
20 the court of common pleas of the county in which the premises or
21 permit applied for is located. If the application is for an
22 economic development license under section 461(b.1) or the
23 intermunicipal transfer of a license, the governing body of the
24 municipality receiving the new license or the transferred
25 license may file an appeal of the board decision granting the
26 license, within twenty days of the date of the board's decision,
27 to the court of common pleas of the county in which the proposed
28 premises is located. Such appeal shall be upon petition of the
29 aggrieved party, who shall serve a copy thereof upon the board,
30 whereupon a hearing shall be held upon the petition by the court
20020S1365B1821 - 42 -
1 upon ten days' notice to the board. The said appeal shall act as
2 a supersedeas unless upon sufficient cause shown the court shall
3 determine otherwise. [The court shall hear the application de
4 novo on questions of fact, administrative discretion and such
5 other matters as are involved, at such time as it shall fix, of
6 which notice shall be given to the board. The court shall either
7 sustain or over-rule the action of the board and either order or
8 deny the issuance of a new license or the renewal or transfer of
9 the license or the renewal of an amusement permit to the
10 applicant.] The court shall accept a copy of the record from the
11 previous proceedings. The court may conduct an additional
12 evidentiary hearing on the appeal at such time as it shall fix,
13 and it shall provide notice of the hearing to the board. The
14 court is bound by the findings of fact made by the board unless
15 the evidence before it is materially different from the evidence
16 before the board. The court may only reverse the board if the
17 board made an error of law, abused its discretion or if the
18 board's decision is not supported by substantial evidence.
19 Section 21. Section 470(a) of the act, amended December 21,
20 1998 (P.L.1202, No.155), is amended to read:
21 Section 470. Renewal of Licenses; Temporary Provisions for
22 Licensees in Armed Service.--(a) All applications for renewal
23 of licenses under the provisions of this article shall be filed
24 with tax clearance from the Department of Revenue and the
25 Department of Labor and Industry and requisite license and
26 filing fees at least sixty days before the expiration date of
27 same: Provided, however, That the board, in its discretion, may
28 accept nunc pro tunc a renewal application filed less than sixty
29 days before the expiration date of the license with the required
30 fees, upon reasonable cause shown and the payment of an
20020S1365B1821 - 43 -
1 additional filing fee of one hundred dollars ($100.00) for late
2 filing: And provided further, That except where the failure to
3 file a renewal application on or before the expiration date has
4 created a license quota vacancy after said expiration date which
5 has been filled by the issuance of a new license, after such
6 expiration date, but before the board has received a renewal
7 application nunc pro tunc within the time prescribed herein the
8 board, in its discretion, may, after hearing, accept a renewal
9 application filed within two years after the expiration date of
10 the license with the required fees upon the payment of an
11 additional filing fee of two hundred fifty dollars ($250.00) for
12 late filing. Where any such renewal application is filed less
13 than sixty days before the expiration date, or subsequent to the
14 expiration date, no license shall issue upon the filing of the
15 renewal application until the matter is finally determined by
16 the board and if an appeal is taken from the board's action the
17 courts shall not order the issuance of the renewal license until
18 final determination of the matter by the courts. The board may
19 enter into an agreement with the applicant concerning additional
20 restrictions on the license in question. If the board and the
21 applicant enter into such an agreement, such agreement shall be
22 binding on the applicant. Failure by the applicant to adhere to
23 the agreement will be sufficient cause to form the basis for a
24 citation under section 471 and for the nonrenewal of the license
25 under section 470. A renewal application will not be considered
26 filed unless accompanied by the requisite filing and license
27 fees and any additional filing fee required by this section.
28 Unless the board shall have given ten days' previous notice to
29 the applicant of objections to the renewal of his license, based
30 upon violation by the licensee or his servants, agents or
20020S1365B1821 - 44 -
1 employes of any of the laws of the Commonwealth or regulations
2 of the board relating to the manufacture, transportation, use,
3 storage, importation, possession or sale of liquors, alcohol or
4 malt or brewed beverages, or the conduct of a licensed
5 establishment, or unless the applicant has by his own act become
6 a person of ill repute, or unless the premises do not meet the
7 requirements of this act or the regulations of the board, the
8 license of a licensee shall be renewed.
9 * * *
10 Section 22. Section 471(b) of the act, amended February 21,
11 2002 (P.L.103, No.10), is amended to read:
12 Section 471. Revocation and Suspension of Licenses; Fines.--
13 * * *
14 (b) Hearing on such citations shall be held in the same
15 manner as provided herein for hearings on applications for
16 license. Upon such hearing, if satisfied that any such violation
17 has occurred or for other sufficient cause, the administrative
18 law judge shall immediately suspend or revoke the license, or
19 impose a fine of not less than fifty dollars ($50) nor more than
20 one thousand dollars ($1,000), or both, notifying the licensee
21 by registered letter addressed to his licensed premises. If the
22 licensee has been cited and found to have violated section
23 493(1) insofar as it relates to sales to minors or sales to a
24 visibly intoxicated person, section 493(10) insofar as it
25 relates to lewd, immoral or improper entertainment or section
26 493(14), (16) or (21), or has been found to be a public nuisance
27 pursuant to section 611, or if the owner or operator of the
28 licensed premises or any authorized agent of the owner or
29 operator has been convicted of any violation of the act of April
30 14, 1972 (P.L.233, No.64), known as "The Controlled Substance,
20020S1365B1821 - 45 -
1 Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 5902
2 (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. However, if a licensee has
8 been cited and found to have violated section 493(1) as it
9 relates to sales to minors or sales to a visibly intoxicated
10 person but at the time of the sale the licensee was in
11 compliance with the requirements set forth in section 471.1 and
12 the licensee had not sold to minors or visibly intoxicated
13 persons in the previous four years, then the administrative law
14 judge shall immediately suspend or revoke the license, or impose
15 a fine of not less than fifty dollars ($50) nor more than one
16 thousand dollars ($1,000), or both. The administrative law judge
17 shall notify the licensee by registered mail, addressed to the
18 licensed premises, of such suspension, revocation or fine. In
19 the event the fine is not paid within twenty days of the
20 adjudication, the administrative law judge shall suspend or
21 revoke the license, notifying the licensee by registered mail
22 addressed to the licensed premises. Suspensions and revocations
23 shall not go into effect until thirty days have elapsed from the
24 date of the adjudication during which time the licensee may take
25 an appeal as provided for in this act. Any licensee whose
26 license is revoked shall be ineligible to have a license under
27 this act until the expiration of three years from the date such
28 license was revoked. In the event a license is revoked, no
29 license shall be granted for the premises or transferred to the
30 premises in which the said license was conducted for a period of
20020S1365B1821 - 46 -
1 at least one year after the date of the revocation of the
2 license conducted in the said premises, except in cases where
3 the licensee or a member of his immediate family is not the
4 owner of the premises, in which case the board may, in its
5 discretion, issue or transfer a license within the said year. In
6 the event the bureau or the person who was fined or whose
7 license was suspended or revoked shall feel aggrieved by the
8 adjudication of the administrative law judge, there shall be a
9 right to appeal to the board. The appeal shall be based solely
10 on the record before the administrative law judge. The board
11 shall only reverse the decision of the administrative law judge
12 if the administrative law judge committed an error of law,
13 abused its discretion or if its decision is not based on
14 substantial evidence. In the event the bureau or the person who
15 was fined or whose license was suspended or revoked shall feel
16 aggrieved by the decision of the board, there shall be a right
17 to appeal to the court of common pleas [in the same manner as
18 herein provided for appeals from refusals to grant licenses].
19 The court shall accept a copy of the record from the previous
20 proceedings. The court may conduct an additional evidentiary
21 hearing on the appeal at such time as it shall fix, and it shall
22 provide notice of the hearing to the parties. The court is bound
23 by the findings of fact made by the board unless the evidence
24 before it is materially different from the evidence before the
25 board. The court may only reverse the board or modify the
26 penalty imposed by the board if the board made an error of law,
27 abused its discretion or if the finding of facts do not support
28 the board's decision. Each of the appeals shall act as a
29 supersedeas unless, upon sufficient cause shown, the reviewing
30 authority shall determine otherwise; however, if the licensee
20020S1365B1821 - 47 -
1 has been cited and found to have violated section 493(1) insofar
2 as it relates to sales to minors or sales to a visibly
3 intoxicated person, section 493(10) insofar as it relates to
4 lewd, immoral or improper entertainment or section 493(14), (16)
5 or (21), or has been found to be a public nuisance pursuant to
6 section 611, or if the owner or operator of the licensed
7 premises or any authorized agent of the owner or operator has
8 been convicted of any violation of "The Controlled Substance,
9 Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 5902 or 6301,
10 at or relating to the licensed premises, its appeal shall not
11 act as a supersedeas unless the reviewing authority determines
12 otherwise upon sufficient cause shown. In any hearing on an
13 application for a supersedeas under this section, the reviewing
14 authority may consider, in addition to other relevant evidence,
15 documentary evidence, including records of the bureau, showing
16 the prior history of citations, fines, suspensions or
17 revocations against the licensee; and the reviewing authority
18 may also consider, in addition to other relevant evidence,
19 evidence of any recurrence of the unlawful activity occurring
20 between the date of the citation which is the subject of the
21 appeal and the date of the hearing. No penalty provided by this
22 section shall be imposed for any violations provided for in this
23 act unless the bureau notifies the licensee of its nature within
24 thirty days of the completion of the investigation.
25 * * *
26 Section 23. Section 472 of the act is amended by adding a
27 subsection to read:
28 Section 472. Local Option.--* * *
29 (e) A vote on the ballot question regarding the granting of
30 liquor licenses that changes the municipality's status on that
20020S1365B1821 - 48 -
1 issue supersedes any earlier contrary votes on the granting of
2 liquor licenses to public venues, performing arts facilities,
3 hotels, golf courses, incorporated units of national veterans'
4 clubs and special occasion permits. In addition, a vote on the
5 ballot question regarding the granting of liquor licenses that
6 changes the municipality's status on that issue supersedes any
7 earlier contrary votes on the issuance of granting licenses to
8 retail dispensers of malt and brewed beverages.
9 Section 24. Section 472.3(a) of the act is amended to read:
10 Section 472.3. Exchange of Certain Licenses.--(a) In any
11 municipality wherein restaurant liquor license issue, the board
12 may issue to a club as defined in this act, a club liquor
13 license in exchange for a club retail dispenser license in any
14 municipality which has approved the granting of liquor licenses.
15 * * *
16 Section 25. Section 491(4), (7) and (11) of the act, amended
17 February 21, 2002 (PL.103, No.10), are amended to read:
18 Section 491. Unlawful Acts Relative to Liquor, Alcohol and
19 Liquor Licensees.--
20 It shall be unlawful--
21 * * *
22 (4) Possession and Use of Decanters. For any [person]
23 licensee, his servants, agents or employes to use decanters of
24 alcoholic beverages except that the use of decanters or other
25 similar receptacles by licensees shall be permitted in the case
26 of wines and then only in accordance with the regulations of the
27 board, but nothing herein contained shall prohibit the
28 manufacture and possession of wine as provided in clause (2) of
29 this section.
30 * * *
20020S1365B1821 - 49 -
1 (7) Sales of Liquor by Manufacturers and Licensed Importers.
2 For any manufacturer or licensed importer of liquor in this
3 Commonwealth, his agents, servants or employes, to sell or offer
4 to sell any liquor in this Commonwealth except to the board for
5 use in Pennsylvania Liquor Stores, and in the case of a
6 manufacturer, to the holder of a sacramental wine license or an
7 importer's license[, but a manufacturer or licensed importer may
8 sell or offer to sell liquor to persons outside of this
9 Commonwealth]. Notwithstanding any other provision of this act,
10 a manufacturer or licensed importer may sell or offer to sell
11 liquor for delivery outside of this Commonwealth.
12 * * *
13 (11) Importation of Liquor. For any person, other than the
14 board or the holder of a sacramental wine license, an importer's
15 license or a direct shipper's license, to import any liquor
16 whatsoever into this Commonwealth, but this section shall not be
17 construed to prohibit railroad and pullman companies from
18 purchasing and selling liquors purchased outside the
19 Commonwealth in their dining, club and buffet cars which are
20 covered by public service liquor licenses and which are operated
21 in this Commonwealth.
22 * * *
23 Section 26. Section 492(8) and (10) of the act, amended
24 December 21 1998 (P.L.1202, No.155), are amended to read:
25 Section 492. Unlawful Acts Relative to Malt or Brewed
26 Beverages and Licensees.--
27 It shall be unlawful--
28 * * *
29 (8) Transportation of Malt or Brewed Beverages. For any
30 person, to transport malt or brewed beverages except in the
20020S1365B1821 - 50 -
1 original containers, or to transport malt or brewed beverages
2 for another who is engaged in selling either liquor or malt or
3 brewed beverages, unless such person shall hold (a) a license to
4 transport for hire, alcohol, liquor and malt or brewed
5 beverages, as hereinafter provided in this act, or (b) shall
6 hold a permit issued by the board and shall have paid to the
7 board such permit fee, as prescribed in section 614-A of the act
8 of April 9, 1929 (P.L.177, No.175), known as "The Administrative
9 Code of 1929," any other law to the contrary notwithstanding.
10 This clause shall not be construed to prohibit transportation of
11 malt or brewed beverages through this Commonwealth and not for
12 delivery in this Commonwealth if such transporting is done in
13 accordance with the rules and regulations of the board.
14 * * *
15 [(10) Importing or Transporting Malt or Brewed Beverages
16 Without Tax Stamps. For any person, to transport within or
17 import any malt or brewed beverages into this Commonwealth,
18 except in accordance with the rules and regulations of the
19 board, or for any person to transport malt or brewed beverages
20 into or within this Commonwealth, unless there shall be affixed
21 to the original containers in which such malt or brewed
22 beverages are transported, stamps or crowns evidencing the
23 payment of the malt liquor tax to the Commonwealth: Provided,
24 however, That this clause shall not be construed to prohibit
25 transportation of malt or brewed beverages through this
26 Commonwealth and not for delivery therein, if such transporting
27 is done in accordance with the rules and regulations of the
28 board.]
29 * * *
30 Section 27. Section 493(17) of the act is amended to read:
20020S1365B1821 - 51 -
1 Section 493. Unlawful Acts Relative to Liquor, Malt and
2 Brewed Beverages and Licensees.--The term "licensee," when used
3 in this section, shall mean those persons licensed under the
4 provisions of Article IV, unless the context clearly indicates
5 otherwise.
6 It shall be unlawful--
7 * * *
8 (17) Licensees, etc., Interested or Employed in
9 Manufacturing or Sale of Equipment or Fixtures. For any
10 licensee, or any officer, director, stockholder, servant, agent
11 or employe of any licensee, to own any interest, directly or
12 indirectly, in or be employed or engaged in any business which
13 involves the manufacture or sale of any equipment, furnishings
14 or fixtures to any hotel, restaurant or club licensees, or to
15 any importing distributors, distributors or retail dispensers[:
16 Provided, however, That as to malt or brewed beverage licensees,
17 the provisions of this subsection shall not apply to such a
18 conflicting interest if it has existed for a period of not less
19 than three years prior to the first day of January, one thousand
20 nine hundred thirty-seven, and the board shall approve].
21 * * *
22 Section 28. Section 498(g) of the act, amended February 21,
23 2002 (P.L.103, No.10), is amended to read:
24 Section 498. Unlawful Advertising.-- * * *
25 (g) For purposes of this subsection, the term
26 "advertisement" shall mean any advertising of alcoholic
27 beverages through the medium of radio broadcast, television
28 broadcast, newspapers, periodicals or other publication, outdoor
29 advertisement, any form of electronic transmission or any other
30 printed or graphic matter, including booklets, flyers or cards,
20020S1365B1821 - 52 -
1 or on the product label or attachment itself.
2 Section 29. Sections 505.3 and 509 of the act are amended to
3 read:
4 [Section 505.3. Distilleries.--Distilleries of historical
5 significance established more than one hundred years prior to
6 January 1, 1975 which hold a license issued under section 505
7 may sell liquor produced by the distillery on the licensed
8 premises under such conditions and regulations as the board may
9 enforce.]
10 Section 509. License Must Be Posted; Business Hours.--
11 Licenses shall be issued by the board under its official seal.
12 Every license so issued must at all times be posted in a
13 conspicuous place where the business is carried on under it[,
14 and said place of business must be kept open during general
15 business hours of every day in the year except Sundays and legal
16 holidays]. Licensees may be open every day except limited
17 wineries which may be open as set forth by the board through
18 regulations.
19 Section 30. This act shall take effect in 60 days.
C7L47RLE/20020S1365B1821 - 53 -