THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY READSHAW, WAGNER, MUSTIO, CALTAGIRONE, D. COSTA, DeLUCA, KORTZ, KULA, MILLARD AND M. O'BRIEN, FEBRUARY 1, 2011

REFERRED TO COMMITTEE ON LIQUOR CONTROL, FEBRUARY 1, 2011  

AN ACT

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

reenacted, "An act relating to alcoholic liquors, alcohol and

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws,"

providing for municipal authority to establish maximum

saturation ratios for licensed establishments.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 404 of the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code, reenacted and amended June 29,

1987 (P.L.32, No.14) and amended January 6, 2006 (P.L.1, No.1),

is amended to read:

Section 404.  Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--Upon receipt of the

application and the proper fees, and upon being satisfied of the

truth of the statements in the application that the applicant is

the only person in any manner pecuniarily interested in the

business so asked to be licensed and that no other person will

be in any manner pecuniarily interested therein during the

continuance of the license, except as hereinafter permitted, and

that the applicant is a person of good repute, that the premises

applied for meet all the requirements of this act and the

regulations of the board, that the applicant seeks a license for

a hotel, restaurant or club, as defined in this act, and that

the issuance of such license is not prohibited by any of the

provisions of this act, the board shall, in the case of a hotel

or restaurant, grant and issue to the applicant a liquor

license, and in the case of a club may, in its discretion, issue

or refuse a license: Provided, however, That in the case of any

new license or the transfer of any license to a new location or

the extension of an existing license to cover an additional area

the board may, in its discretion, grant or refuse such new

license, transfer or extension if such place proposed to be

licensed is within three hundred feet of any church, hospital,

charitable institution, school, or public playground, or if such

new license, transfer or extension is applied for a place which

is within two hundred feet of any other premises which is

licensed by the board: And provided further, That the board's

authority to refuse to grant a license because of its proximity

to a church, hospital, charitable institution, public playground

or other licensed premises shall not be applicable to license

applications submitted for public venues or performing arts

facilities: And provided further, That the board shall refuse

any application for a new license, the transfer of any license

to a new location or the extension of an existing license to

cover an additional area if, in the board's opinion, such new

license, transfer or extension would be detrimental to the

welfare, health, peace and morals of the inhabitants of the

neighborhood within a radius of five hundred feet of the place

proposed to be licensed: And provided further, That the board

shall have the discretion to refuse a license to any person or

to any corporation, partnership or association if such person,

or any officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

license. The board shall refuse any application for a new

license, the transfer of any license to a new location or the

extension of any license to cover an additional area where the

sale of liquid fuels or oil is conducted. All issuances,

transfers or extensions under this section shall be subject to

any maximum saturation ratio established under section 493.1(a). 

The board may enter into an agreement with the applicant

concerning additional restrictions on the license in question.

If the board and the applicant enter into such an agreement,

such agreement shall be binding on the applicant. Failure by the

applicant to adhere to the agreement will be sufficient cause to

form the basis for a citation under section 471 and for the

nonrenewal of the license under section 470. If the board enters

into an agreement with an applicant concerning additional

restrictions, those restrictions shall be binding on subsequent

holders of the license until the license is transferred to a new

location or until the board enters into a subsequent agreement

removing those restrictions. If the application in question

involves a location previously licensed by the board, then any

restrictions imposed by the board on the previous license at

that location shall be binding on the applicant unless the board

enters into a new agreement rescinding those restrictions. The

board may, in its discretion, refuse an application for an

economic development license under section 461(b.1) or an

application for an intermunicipal transfer of a license if the

board receives a protest from the governing body of the

receiving municipality. The receiving municipality of an

intermunicipal transfer or an economic development license under

section 461(b.1) may file a protest against the transfer of a

license into its municipality, and the receiving municipality

shall have standing in a hearing to present testimony in support

of or against the issuance or transfer of a license. Upon any

opening in any quota, an application for a new license shall

only be filed with the board for a period of six months

following said opening.

Section 2.  Section 461(b.3) of the act, amended November 29,

2006 (P.L.1421, No.155), is amended to read:

Section 461.  Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

(b.3)  An intermunicipal transfer of a license or issuance of

a license for economic development under subsection (b.1)(2)(i)

must first be approved by the governing body of the receiving

municipality when the total number of existing restaurant liquor

licenses and eating place retail dispenser licenses in the

receiving municipality equal or exceed one license per three

thousand inhabitants. An intramunicipal transfer of a license or

issuance of a license for economic development under subsection

(b.1)(2)(i) must first be approved by the governing body of the

municipality if the municipality has created a maximum

saturation ratio pursuant to section 493.1(a) and the saturation

level is met or exceeded. Upon request for approval of an

intermunicipal transfer of a license or issuance of an economic

development license by an applicant, at least one public hearing

shall be held by the municipal governing body for the purpose of

receiving comments and recommendations of interested individuals

residing within the municipality concerning the applicant's

intent to transfer a license into the municipality or acquire an

economic development license from the Pennsylvania Liquor

Control Board. The governing body shall, within forty-five days

of a request for approval, render a decision by ordinance or

resolution to approve or disapprove the applicant's request for

an intermunicipal transfer of a license or issuance of an

economic development license. The municipality may approve the

request. A decision by the governing body of the municipality to

deny the request may not be appealed. A copy of the approval

must be submitted with the license application. The approval

requirement shall not apply to licenses transferred into a tax

increment district created pursuant to the act of July 11, 1990

(P.L.465, No.113), known as the "Tax Increment Financing Act,"

located in a township of the second class that is located within

a county of the second class if the district was created prior

to December 31, 2002, and the governing body of the township has

adopted an agreement at a public meeting that consents to the

transfer of licenses into the tax increment district. Failure by

the governing body of the municipality to render a decision

within forty-five days of the applicant's request for approval

shall be deemed an approval of the application in terms as

presented unless the governing body has notified the applicant

in writing of their election for an extension of time not to

exceed sixty days. Failure by the governing body of the

municipality to render a decision within the extended time

period shall be deemed an approval of the application in terms

as presented.

* * *

Section 3.  Section 493.1(a) of the act, amended December 9,

2002 (P.L.1653, No.212), is amended to read:

Section 493.1.  Rights of Municipalities Preserved.--(a)

Nothing in this act shall be construed to preempt the right of

any municipality to regulate zoning and enforce any other local

ordinances and codes dealing with health and welfare issues.

Further, a municipality may, in any zoning district where

licensed facilities are permitted, establish a maximum

saturation ratio for licensed establishments taking into account

one or more of the following: type of licensed use, type of

zoning district, the current saturation rate and the size of the

zoning district.

* * *

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