SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WATERS, DONATUCCI, YOUNGBLOOD, KIRKLAND, PARKER, BRENNAN, CALTAGIRONE, M. O'BRIEN, STABACK, PASHINSKI, VULAKOVICH, KOTIK AND CRUZ, JANUARY 30, 2009

SENATOR RAFFERTY, LAW AND JUSTICE, IN SENATE, AS AMENDED, JUNE 10, 2009   

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 an exception to the interlocking business

prohibition; further exempting certain hotels from certain

requirements; and further providing for responsible alcohol

management.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 411(e) 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), is amended to read:

Section 411.  Interlocking Business Prohibited.--* * *

(e)  Except as herein provided, no hotel, restaurant, retail

dispenser or club licensee, and no officer, director or

stockholder, agent or employe of any such licensee shall in any

wise be interested, directly or indirectly, in the ownership or

leasehold of any property or the equipment of any property or

any mortgage lien against the same, used by a distributor,

importing distributor, or by an importer or sacramental wine

licensee, in the conduct of his business; nor shall any hotel,

restaurant, retail dispenser or club licensee, or any officer,

director, stockholder, agent or employe of any such licensee,

either directly or indirectly, lend any moneys, credit, or give

anything of value or the equivalent thereof, to any distributor,

importing distributor, importer or sacramental wine licensee,

for equipping, fitting out, or maintaining and conducting,

either in whole or in part, an establishment used in the conduct

of his business.

The purpose of this section is to require a separation of the

financial and business interests between manufacturers and

holders of hotel or restaurant liquor licenses and, as herein

provided, of club licenses, issued under this article, and no

person shall, by any device whatsoever, directly or indirectly,

evade the provisions of the section. But in view of existing

economic conditions, nothing contained in this section shall be

construed to prohibit the ownership of property or conflicting

interest by a manufacturer of any place occupied by a licensee

under this article after the manufacturer has continuously owned

and had a conflicting interest in such place for a period of at

least five years prior to July eighteenth, one thousand nine

hundred thirty-five: Provided, however, That this clause shall

not prohibit any hotel, restaurant or club liquor licensee from

owning land which is leased to, and the buildings thereon owned

by, a holder of a retail dispenser's license; and nothing in

this clause shall prevent the issuance of a retail dispenser's

license to a lessee of such lands who owns the buildings

thereon: And, provided further, That nothing contained in this

section shall be construed to prohibit any hotel, restaurant,

retail dispenser or club licensee or any officer, director or

stockholder, agent or employe of any such licensee from having a

financial or other interest, directly or indirectly in the

ownership or leasehold of any property or the equipment of any

property or any mortgage lien against same, used, leased by an

importer or sacramental wine licensee for the exclusive purpose

of maintaining commercial offices and on the condition that said

property is not used for the storage or sale of liquor or malt

or brewed beverages in any quantity: And, provided further, that

nothing contained herein shall prohibit an officer or member of

the board of a licensed privately owned private golf course

catering club from having an interest in a limited winery

license.

Section 2.  Section 461(c) of the act, amended July 16, 2007

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(P.L.107, No.34), is amended to read:

Section 2.  Section 461(b.3) and (c) of the act, amended or

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added November 29, 2006 (P.L.1421, No.155) and July 16, 2007

(P.L.107, No.34), are amended to read:

Section 461.  Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

(b.3)  (1)  An intermunicipal transfer of a license or

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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 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.

(2)  An intramunicipal transfer of a license within a city of

the second class located within a county of the second class

must first be approved by the governing body. Upon request for

approval of an intramunicipal transfer of a license, 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 within

the municipality. 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 intramunicipal transfer of a 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.

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.

* * *

(c)  The word "hotel" as used in this section shall mean any

reputable place operated by a responsible person of good

reputation where the public may, for a consideration, obtain

sleeping accommodations, and which shall have the following

number of bedrooms and requirements in each case--at least one-

half of the required number of bedrooms shall be regularly

available to transient guests seven days weekly, except in

resort areas; at least one-third of such bedrooms shall be

equipped with hot and cold water, a lavatory, commode, bathtub

or shower and a clothes closet; and an additional one-third of

the total of such required rooms shall be equipped with lavatory

and commode:

(1)  In municipalities having a population of less than three

thousand, at least twelve permanent bedrooms for the use of

guests.

(2)  In municipalities having a population of three thousand

and more but less than ten thousand inhabitants, at least

sixteen permanent bedrooms for the use of guests.

(3)  In municipalities having a population of ten thousand

and more but less than twenty-five thousand inhabitants, at

least thirty permanent bedrooms for the use of guests.

(4)  In municipalities having a population of twenty-five

thousand and more but less than one hundred thousand

inhabitants, at least forty permanent bedrooms for the use of

guests.

(5)  In municipalities having a population of one hundred

thousand and more inhabitants, at least fifty permanent bedrooms

for the use of guests.

(6)  A public dining room or rooms operated by the same

management accommodating at least thirty persons at one time and

a kitchen, apart from the dining room or rooms, in which food is

regularly prepared for the public.

(7)  Each room to be considered a bedroom under the

requirements of this section shall have an area of not less than

eighty square feet and an outside window.

(8)  The provisions of this subsection (c) shall not apply to

hotel licenses granted prior to the first day of September, one

thousand nine hundred forty-nine, or that have been granted on

any application made and pending prior to said date, nor to any

renewal or transfer thereof, or hotels under construction or for

which a bona fide contract had been entered into for

construction prior to said date. In such cases, the provisions

of section one of the act, approved the twenty-fourth day of

June, one thousand nine hundred thirty-nine (Pamphlet Laws 806),

shall continue to apply.

(8.1)  The provisions of this subsection (c) shall not apply

to hotel licenses that were granted prior to the first day of

January, [one thousand nine hundred sixty-five] one thousand

nine hundred sixty-six, in municipalities having a population of

less than ten thousand during the two thousand Federal Decennial

Census. Further, the provisions of this subsection (c) shall not

apply to hotel licenses that were granted prior to the first day

of September, one thousand nine hundred forty-nine, and that

lapsed not more than once, provided that the board issued the

hotel a new hotel license prior to the first day of January, one

thousand nine hundred seventy-one. In such cases, the provisions

of section one of the act, approved the twenty-fourth day of

June, one thousand nine hundred thirty-nine (Pamphlet Laws 806),

shall continue to apply.

(9)  Upon application to and subject to inspection by the

board, hotel licensees under clause (8) of this subsection shall

no longer be required to maintain bedrooms for public

accommodation. However, areas required and designated as

bedrooms for public accommodation prior to the effective date of

this clause may not subsequently be used as licensed serving

area. Such area may be used as licensed storage area consistent

with this act and existing regulations.

(9.1)  Upon application to and subject to inspection by the

board, hotel licensees under clause (8.1) of this subsection

shall no longer be required to maintain bedrooms for public

accommodation. However, areas required and designated as

bedrooms for public accommodation prior to the effective date of

this clause may not subsequently be used as licensed serving

areas. Such areas may be used as licensed storage area

consistent with this act and existing regulations.

* * *

Section 3.  Section 471.1 of the act is amended by adding a

subsection to read:

Section 471.1.  Responsible Alcohol Management.--* * *

(g)  Unless successfully completed prior to appointment, a

manager appointed by any restaurant, eating place retail

dispenser, hotel, club or distributor licensee shall be required

to complete the manager/owner training under subsection (c)

within 180 days of approval of appointment by the board.

Section 4.  The addition of section 471.1(g) of the act shall

apply to the appointment of managers made pursuant to

applications for appointment, license transfer and applications

for new licenses filed with the Pennsylvania Liquor Control

Board after the effective date of this section.

Section 5.  This act shall take effect in 60 days.