Regular Session 2019-2020 House Bill 2900 P.N. 4466

PRINTER'S NO. 4466

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2900

Session of

2020

INTRODUCED BY BURNS, T. DAVIS, SANCHEZ, READSHAW AND KORTZ,

OCTOBER 2, 2020

REFERRED TO COMMITTEE ON LIQUOR CONTROL, OCTOBER 2, 2020

AN ACT

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

licenses and regulations, liquor, alcohol and malt and brewed

beverages, further providing for authority to issue liquor

licenses to hotels, restaurants and clubs, for license

districts, license period and hearings and for issuance,

transfer or extension of hotel, restaurant and club liquor

licenses, providing for license database, further providing

for malt and brewed beverages retail licenses, for limiting

number of retail licenses to be issued in each county and for

hearings upon refusal of licenses, renewals or transfers and

appeals, and repealing provisions relating to license

auction.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 401(a) and 402(a) and (b) of the act of

April 12, 1951 (P.L.90, No.21), known as the Liquor Code, are

amended to read:

Section 401. Authority to Issue Liquor Licenses to Hotels,

Restaurants and Clubs.--(a) Subject to the provisions of this

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

kept or operated by a hotel, restaurant or club and specified in

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

premises such liquor and, subject to the provisions of this act

and the regulations made thereunder, to sell the same and also

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

licensees, other than clubs, shall be permitted to sell malt or

brewed beverages for consumption off the premises where sold in

quantities of not more than one hundred ninety-two fluid ounces

in a single sale to one person as provided for in section 407.

Such licenses for premises kept or operated by a hotel or

restaurant shall be known as [hotel liquor licenses,] restaurant

liquor licenses, and such licenses for premises kept or operated

by a club shall be known as club liquor licenses[,

respectively].

(a.1) Beginning January 1, 2020:

(1) The board may not issue a new hotel liquor license or

transfer a hotel liquor license to a new location.

(2) A hotel that seeks a retail liquor license must make

application for a restaurant liquor license.

(3) A hotel shall not be eligible for an eating place

license.

(4) A hotel may be issued a restaurant liquor license from

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within the same county or, if the hotel is located in a county

with a county retail ratio below the Statewide retail range, may

be issued a restaurant liquor license from a county with a

retail ratio above the Statewide retail range as long as neither

county has exceeded the limit for annual license transfers. For

purposes of this clause, "county retail ratio" shall have the

meaning given to it under section 461(d.1), and "Statewide

retail range" shall have the meaning given to it under section

461(g.1).

(5) This subsection shall not apply to hotels licensed prior

to January 1, 2020.

(a.2) No person who holds any public office that involves

the duty to enforce any of the penal laws of the United States,

this Commonwealth or of any political subdivision of this

Commonwealth may have any interest in a hotel or restaurant

liquor license. This prohibition applies to anyone with arrest

authority, including, but not limited to, United States

attorneys, State attorneys general, district attorneys, sheriffs

and police officers. This prohibition shall also apply to

magisterial district judges, judges or any other individuals who

can impose a criminal sentence. This prohibition does not apply

to members of the General Assembly, township supervisors, city

councilpersons, mayors without arrest authority and any other

public official who does not have the ability to arrest or the

ability to impose a criminal sentence. This section does not

apply if the proposed premises are located outside the

jurisdiction of the individual in question.

* * *

Section 402. License Districts; License Period; Hearings.--

(a) The board shall hold hearings on applications for licenses

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and renewals thereof, as it deems necessary, at such times as it

shall fix for the purpose of hearing testimony for and against

applications for new licenses and renewals thereof. The board

shall hold a hearing on any application for a new [hotel,] club

or restaurant liquor license or the transfer of any such license

to a new location, upon the request of any person with standing

to testify under subsection (b) if the request is filed with the

board within the first fifteen days of posting of the notice of

application pursuant to section 403(g). The board may provide

for the holding of such hearings by hearing examiners learned in

the law, to be appointed by the Governor, who shall not be

subject to the act of August 5, 1941 (P.L.752, No.286), known as

the "Civil Service Act." Such hearing examiners shall make a

report to the board in each case with their recommendations. The

board may fix the license period for each separate license so

that the expiration dates shall be staggered as to the State.

(b) Where a hearing is held in the case of an application

for a new [hotel,] club or restaurant liquor license or an

application for the transfer of a [hotel,] club or restaurant

liquor license to a new location, the board shall permit

residents residing within a radius of five hundred feet of the

premises to testify at the hearing. The board and any hearing

examiner thereof shall give appropriate evidentiary weight to

any testimony of such residents given at the hearing.

* * *

Section 2. Section 404(a) of the act, amended June 5, 2020

(P.L.213, No.29), is amended to read:

Section 404. Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--(a) Upon receipt of the

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

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truth of the statements in the application that the applicant

and management company or companies, if any, are the only

persons 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

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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 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

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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 3. The act is amended by adding a section to read:

Section 404.1. License Database.--(a) The board shall

establish and maintain a database on the board's publicly

accessible Internet website that provides the following

information for licenses issued or transferred after January 1,

2020:

(1) The license number.

(2) The owner's name.

(3) The municipality of origin.

(4) The receiving municipality, if different.

(5) The date of purchase.

(6) Purchase price.

(b) This section shall apply to the following:

(1) The issuance or transfer of a restaurant liquor license,

an eating place retail dispenser license or a club license.

(2) The transfer of a hotel license.

Section 4. Section 432(d) and (h) of the act, amended June

5, 2020 (P.L.213, No.29), are amended to read:

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Section 432. Malt and Brewed Beverages Retail Licenses.--* *

(d) The board shall, in its discretion, grant or refuse any

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

the extension of an existing license to cover an additional area

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. 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

to be licensed. 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

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previous license at that location shall be binding on the

applicant unless the board enters into a new agreement

rescinding those restrictions. 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 may, in its discretion, refuse an application

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

an application for an] intermunicipal transfer or 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 approval

for issuance of a license for economic development or an

intermunicipal transfer of a license into its municipality, and

such 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.

* * *

[(h) In a municipality which has approved the granting of

liquor licenses and upon application to the board and payment of

a fee of thirty thousand dollars ($30,000), the board shall

convert an eating place retail dispensing license to a

restaurant license without regard to the quota restrictions set

forth in section 461(a). The converted restaurant license shall

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be subject to the provisions of this act governing restaurant

liquor licenses. The provisions of this subsection allowing a

holder of an eating place retail dispensing license to convert

the license to a restaurant liquor license shall only apply to a

license holder whose license is not subject to a pending

objection by the director of the Bureau of Licensing or the

board under section 470(a.1), until the matter is decided. A

conversion under this subsection shall be considered a transfer

or issuance of a new license for the purposes of section 402.

This subsection does not apply to licenses in a city of the

first class.]

Section 5. Section 461(a), (b.1), (b.2), (b.3) and (b.4)(1)

(i) of the act, amended July 2, 2019 (P.L.371, No.57) and

November 21, 2019 (P.L.635, No.86), are amended and the section

is amended by adding subsections to read:

Section 461. Limiting Number of Retail Licenses To Be Issued

In Each County.--(a) No additional restaurant, eating place

retail dispenser or club licenses shall be issued within a

county [if the total number of restaurant and eating place

retail dispenser licenses is greater than one license for each

three thousand inhabitants in the county] unless the conditions

under subsection (g) are satisfied, except the board may issue

licenses to public venues, performing arts facilities,

continuing care retirement communities, airport restaurants,

municipal golf courses, [hotels,] privately-owned private golf

courses, privately-owned public golf courses, racetracks,

automobile racetracks, nonprimary pari-mutuel wagering

locations, privately-owned ski resorts and to any other entity

which this act specifically exempts from the limitations

provided in this section, and the board may issue a license to a

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club situated in a borough having a population less than eight

thousand inhabitants which is located in a county of the second

class A whose application is filed on or before February 28,

2001. In addition, the board may issue an eating place retail

dispenser license for on-premises sales only to the owner or

operator of a facility having a minimum of a one-half mile

asphalt track and having a permanent seating capacity of at

least six thousand people used principally for holding

automobile races, regardless of the number of restaurant and

eating place retail dispenser licenses already issued in that

county. When determining the number of restaurant and eating

place retail dispenser licenses issued in a county for the

purposes of this section, licenses exempted from this

limitation, licenses subject to the mixed-use town development

project provisions of this act, licenses subject to the

commercial and mixed-use overlay project provisions of this act,

licenses subject to the tourist development project provisions

of this act [and club licenses] shall not be considered.

Inhabitants of dry municipalities shall be considered when

determining the population in a county. Licenses shall not be

issued or transferred into municipalities where such licenses

are prohibited pursuant to local referendum in accordance with

section 472. Licenses approved for intermunicipal transfer may

not be transferred from the receiving municipality for a period

of five years after the date that the licensed premises are

operational in the receiving municipality.

[(b.1) The board may issue restaurant and eating place

retail dispenser licenses and renew licenses issued under this

subsection without regard to the quota restrictions set forth in

subsection (a) for the purpose of economic development in a

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municipality under the following conditions:

(1) A license may only be issued under this subsection if

the applicant has exhausted reasonable means for obtaining a

suitable license within the county.

(2) The proposed licensed premises must be located within

either of the following:

(i) A keystone opportunity zone established under the

authority of the act of October 6, 1998 (P.L.705, No.92), known

as the "Keystone Opportunity Zone and Keystone Opportunity

Expansion Zone Act," or an area designated as an enterprise zone

by the Department of Community and Economic Development.

(ii) A municipality in which the issuance of a restaurant or

eating place retail dispenser license has been approved by the

governing body of the municipality for the purpose of local

economic development. Upon request for approval 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 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 economic development license. If the

municipality finds that the issuance of the license would

promote economic development, it may approve the request. A

decision by the governing body of the municipality to deny the

request may not be appealed to the court of common pleas in the

county in which the municipality is located. A copy of the

approval must be submitted with the license application. Failure

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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.

(3) The board may issue no more than two licenses total in

each county of the first through fourth class and no more than

one license total in each county of the fifth through eighth

class per calendar year.

(4) An applicant under this subsection shall be required to

sell food and nonalcoholic beverages equal to fifty per centum

(50%) or more of its combined gross sales of food and alcoholic

beverages.

(5) In addition to renewal and license fees provided under

existing law for the type of license issued, an applicant shall

be required to pay an initial application surcharge as follows:

(i) Fifty thousand dollars ($50,000) if the licensed

premises is located in a county of the first through fourth

class.

(ii) Twenty-five thousand dollars ($25,000) if the licensed

premises is located in a county of the fifth through eighth

class.

(iii) The initial application surcharge minus a seven

hundred dollar ($700) processing fee shall be refunded to the

applicant if the board refuses to issue a provisional license

under subsection (b.2). Otherwise, the initial application

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surcharge minus a seven hundred dollar ($700) processing fee

shall be credited to The State Stores Fund. The processing fee

shall be treated as an application filing fee as prescribed in

section 614-A(1)(i) of the act of April 9, 1929 (P.L.177,

No.175), known as "The Administrative Code of 1929."

(6) A license issued under this subsection and a provisional

license issued under subsection (b.2) shall be nontransferable

with regard to ownership or location.

(7) An appeal of the board's decision refusing to grant or

renew a license under this subsection shall not act as a

supersedeas of the decision of the board if the decision is

based, in whole or in part, on the licensee's failure to

demonstrate that its food and nonalcoholic beverages were at

least fifty per centum (50%) of its combined gross sales of food

and alcoholic beverages.

(8) A license issued under this subsection may not be

validated or renewed unless the licensee can establish that its

sale of food and nonalcoholic beverages during the license year

immediately preceding application for validation or renewal is

equal to fifty per centum (50%) or more of its food and

alcoholic beverage sales.

(b.2) Qualified applicants under subsection (b.1) shall

receive a provisional license for one hundred twenty days,

exclusive of periods of safekeeping. After ninety days from the

date of issuance, the licensee may file an application for a

permanent license. A license shall be issued if the licensee

establishes that for ninety consecutive days from the date of

initial issue its sales of food and nonalcoholic beverages is

equal to at least fifty per centum (50%) of its combined gross

sales of food and alcoholic beverages. Licensees shall not be

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subject to citation by the Enforcement Bureau for a violation of

the requirement that food and nonalcoholic beverages equal at

least fifty per centum (50%) of the combined gross sales of food

and alcoholic beverages during the provisional licensing period.

(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. 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

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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.]

(b.4) (1) Notwithstanding any other provision of this act

to the contrary, the board may approve the transfer of a

restaurant liquor or eating place retail dispenser license from

a city of the first class to a county designated as a second

class A county or a county of the third class for the purpose of

economic development, subject to the following conditions:

(i) The application to the board is accompanied by municipal

approval as set forth in subsection [(b.1)(2)(ii)] (c.1)(8).

* * *

(c.1) (1) Notwithstanding any other provision of this

section to the contrary, the board may approve the transfer of a

restaurant, eating place or club retail liquor license in a

county with a county ratio that is at least five-tenths of a

point above the Statewide retail ratio to another county whose

county ratio is at least forty-six hundredths of a point below

the Statewide retail ratio until such time as each county of

this Commonwealth is within the Statewide retail range. The

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board may not approve the transfer of a retail license issued in

a county with a ratio within the range to a restaurant, eating

place or club located outside of the county. The following

apply:

(i) For the first two years after the effective date of this

subsection, the board may only approve the transfer of a license

between counties for licenses in safekeeping or for a licensee

whose gross annual sales are five hundred thousand dollars

($500,000) or less.

(ii) For year three after the effective date of this

subsection, and every year thereafter, a transfer of a license

shall not be subject to a gross annual sales amount.

(iii) Transfers within a county shall not be subject to

limitations based on safekeeping or a gross sales amount.

(2) The board may not approve the application to list for

sale of a license that was listed for sale and not sold unless

three years have elapsed from the date the license was first

listed for sale.

(3) The total number of licenses transferred into or out of

a county annually shall not exceed ten per centum (10%) of the

county's total number of licenses eligible for transfer

following the effective date of this subsection.

(4) When all counties in this Commonwealth are within the

Statewide retail range, the board shall transmit notice of the

same to the Legislative Reference Bureau for publication in the

Pennsylvania Bulletin and thereafter may not approve the

transfer of a retail license between counties.

(5) A licensee that proposes the sale of its license must

submit a form to the board that declares the licensee's intent

to sell and the date the license will be listed for sale. There

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shall be no limit to the number of licenses listed for sale

annually in an eligible county.

(6) Subject to all other licensing conditions, the board

shall approve the transfer of licenses between counties provided

that neither the selling county nor the receiving county has

transferred more than ten per centum (10%) of the number of

licenses eligible for transfer that year.

(7) The board shall establish and maintain a database on the

board's publicly accessible Internet website that provides the

the following information:

(i) Licenses available for purchase, including contact

information for the seller and encumbrances, if any, that exist

on the license.

(ii) The following information relating to license sales

transactions, which may be provided by way of a separate

database:

(A) The license number.

(B) The owner's name.

(D) The number of days on the market.

(E) The date of purchase.

(F) Purchase price.

(G) The receiving county.

(8) The transfer of a retail license shall also be subject

to the following:

(i) The municipality to which the license is proposed to be

transferred must approve the transfer of the retail license.

Upon request for approval of the transfer of the license by an

applicant, at least one public hearing shall be held by the

municipal governing body for the purpose of receiving comments

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and recommendations of interested individuals residing within

the municipality concerning the applicant's intent to acquire a

license through transfer. 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 the transfer of the license. A decision by the

governing body of the municipality to deny the request may not

be appealed to the court of common pleas in the county in which

the municipality is located. A copy of the approval must be

submitted with the license transfer application. 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 its election of 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.

(ii) The issuance or transfer of a license to the applicant

and the proposed location must otherwise be permissible under

the requirements for the issuance of such licenses under this

act.

(iii) Should the board approve the transfer, the transferred

license may not be either returned to the board for safekeeping

pursuant to section 474.1 or transferred, until at least five

years have passed from the date that the licensed premises are

operational.

(iv) In addition to any other fee prescribed for the

transfer of a license, a fee payable upon the transfer of a

retail license to a restaurant, eating place or club located

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outside of the county shall be required from the person to whom

such transfer is made. The fee shall be payable to the board in

an amount equivalent to six per centum (6%) of the total amount

of the purchase price of the license.

* * *

(d.1) "County retail ratio" as used in this section shall

mean the ratio calculated by multiplying the total combined

number of restaurant, eating place and club licenses in the

county by three thousand and dividing the product obtained by

the population of the county. The initial calculation shall be

performed using the total combined number of restaurant, eating

place and club licenses in the county as of December 31, 2017,

and the population of the county as of the two thousand ten

Federal decennial census. The ratio shall be calculated to two

decimal places and recalculated following each Federal decennial

census.

* * *

(g.1) "Statewide retail range" as used in this section shall

mean one-half points above the Statewide retail ratio to forty-

six hundredths points below the Statewide retail ratio.

(g.2) "Statewide retail ratio" as used in this section shall

mean the ratio calculated by averaging the county retail ratios

for all counties in this Commonwealth. The ratio shall be

calculated to two decimal places and recalculated following each

Federal decennial census.

* * *

Section 6. Section 464 of the act is amended to read:

Section 464. Hearings Upon Refusal of Licenses, Renewals or

Transfers; Appeals.--The board may of its own motion, and shall

upon the written request of any applicant for club, hotel or

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restaurant liquor license, or any applicant for any malt or

brewed beverage license other than a public service license, or

for renewal or transfer thereof, or for the renewal of an

amusement permit, whose application for such license, renewal or

transfer, or the renewal of an amusement permit, has been

refused, fix a time and place for hearing of such application

for license or for renewal or transfer thereof, or the renewal

of an amusement permit, notice of which hearing shall be mailed

to the applicant at the address given in his application. Such

hearing shall be before a hearing examiner designated by the

board. At such hearing, the board shall present its reasons for

its refusal or withholding of license, renewal or transfer

thereof, or its refusal for renewal of an amusement permit. The

applicant may appear in person or by counsel, may cross-examine

the witnesses for the board and may present evidence which shall

likewise be subject to cross-examination by the board. Such

hearing shall be stenographically recorded. The hearing examiner

shall thereafter report, with the examiner's recommendation, to

the board in each case. The board shall thereupon grant or

refuse the license, renewal or transfer thereof or the renewal

of an amusement permit. In considering the renewal of a license

or amusement permit, the board shall not refuse any such renewal

on the basis of the propriety of the original issuance or any

prior renewal of such license or amusement permit. If the board

shall refuse such license, renewal or transfer or the renewal of

an amusement permit, following such hearing, notice in writing

of such refusal shall be mailed to the applicant at the address

given in his application. In all such cases, the board shall

file of record at least a brief statement in the form of an

opinion of the reasons for the ruling or order and furnish a

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copy thereof to the applicant. Any applicant who has appeared at

any hearing, as above provided, who is aggrieved by the refusal

of the board to issue any such license or to renew or transfer

any such license or to issue or renew any amusement permit may

appeal, or any church, hospital, charitable institution, school

or public playground located within three hundred feet of the

premises applied for, aggrieved by the action of the board in

granting the issuance of any such license or the transfer of any

such license, may take an appeal limited to the question of such

grievance, within twenty days from date of refusal or grant, to

the court of common pleas of the county in which the premises or

permit applied for is located. If the application is for [an

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

intermunicipal transfer of a license, the governing body of the

municipality receiving the new license or the transferred

license may file an appeal of the board decision granting the

license, within twenty days of the date of the board's decision,

to the court of common pleas of the county in which the proposed

premises is located. Such appeal shall be upon petition of the

aggrieved party, who shall serve a copy thereof upon the board,

whereupon a hearing shall be held upon the petition by the court

upon ten days' notice to the board. The said appeal shall act as

a supersedeas unless upon sufficient cause shown the court shall

determine otherwise. The court shall hear the application de

novo on questions of fact, administrative discretion and such

other matters as are involved, at such time as it shall fix, of

which notice shall be given to the board. The court shall either

sustain or over-rule the action of the board and either order or

deny the issuance of a new license or the renewal or transfer of

the license or the renewal of an amusement permit to the

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applicant.

Section 7. Section 470.3 of the act is repealed:

[Section 470.3. License Auction.--(a) A restaurant liquor

license shall become available for auction by the board under

the following conditions:

(1) the license has not been renewed under section 470;

(2) the license has been revoked under section 471; or

(3) the licensee has failed to meet the requirements under

474.1.

(a.1) (1) Subsection (a) shall apply to all restaurant

liquor licenses that became available after December 31, 1999.

(2) Any licenses not sold shall be available for sale at

future auctions, provided, however, that no more than fifty

licenses shall be auctioned in any county per year.

(b) A license becomes available for auction by the board the

day after the deadline has passed for appealing a decision

revoking or not renewing the license or the day after the two-

year window to file a renewal application nunc pro tunc under

section 470 has passed.

(f) A person who would be precluded from acquiring a license

under sections 411 or 443 or who, in the board's opinion is not

of good repute, may not apply for a license under this section

and the board shall refuse any applications submitted by the

person.

(g) The auction shall be conducted in the manner set forth

by the board and at the date and time appointed by the board.

After the auction, the board shall provisionally award to the

person making the highest bid for the license, the right to file

an application for the license. The board shall not accept a bid

lower than twenty-five thousand dollars ($25,000).

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(h) The winning bidder shall pay to the board the bid amount

within two weeks. Payment shall be by cashier's check, certified

check or any other method acceptable to the board. If the

winning bidder does not pay the bid amount within two weeks, the

second highest bidder shall be awarded the right to file an

application for the license, so long as the bid amount is in

accordance with subsection (g). The board shall hold the bid

amount in escrow until the license is approved.

(i) Within six months of being awarded the license, the

bidder or its assignee shall file an application to transfer the

license. The application shall be processed in the same manner

as any other transfer application and shall be subject to the

same restrictions as any other transfer application, including

any conditional licensing agreements and county quota

restrictions under section 461. The board shall only approve the

transfer of a license under this section to a municipality,

other than the municipality it last operated in, upon approval

by the governing body of the municipality.

(j) Once a license has become available as set forth in this

section, it may no longer be subject to any unpaid fines,

unserved suspensions, liens or judgments accrued by the previous

license holder. A winning bidder under this section shall not be

required to supply any information about or secure any

information from the previous license holder during the

application process.

(k) A license acquired under this section may subsequently

be transferred subject to any restrictions that would otherwise

be applicable to the transfer of the license.]

Section 8. This act shall take effect immediately.

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