PRINTER'S NO. 2583
No. 1886 Session of 2007
INTRODUCED BY CLYMER, BOYD, CREIGHTON, DENLINGER, HELM, HENNESSEY, HERSHEY, KOTIK, ROHRER AND TRUE, OCTOBER 3, 2007
REFERRED TO COMMITTEE ON LIQUOR CONTROL, OCTOBER 3, 2007
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 further providing for issuance, transfer or extension of 18 hotel, restaurant and club liquor licenses, for sale of malt 19 or brewed beverages by liquor licensees, for malt and brewed 20 beverages manufacturers', distributors' and importing 21 distributors' licenses and for malt and brewed beverages 22 retail licenses. 23 The General Assembly of the Commonwealth of Pennsylvania 24 hereby enacts as follows: 25 Section 1. Section 404 of the act of April 12, 1951 (P.L.90, 26 No.21), known as the Liquor Code, reenacted and amended June 29, 27 1987 (P.L.32, No.14) and amended January 6, 2006 (P.L.1, No.1),
1 is amended to read: 2 Section 404. Issuance, Transfer or Extension of Hotel, 3 Restaurant and Club Liquor Licenses.--Upon receipt of the 4 application and the proper fees, and upon being satisfied of the 5 truth of the statements in the application that the applicant is 6 the only person in any manner pecuniarily interested in the 7 business so asked to be licensed and that no other person will 8 be in any manner pecuniarily interested therein during the 9 continuance of the license, except as hereinafter permitted, and 10 that the applicant is a person of good repute, that the premises 11 applied for meet all the requirements of this act and the 12 regulations of the board, that the applicant seeks a license for 13 a hotel, restaurant or club, as defined in this act, and that 14 the issuance of such license is not prohibited by any of the 15 provisions of this act, the board shall, in the case of a hotel 16 or restaurant, grant and issue to the applicant a liquor 17 license, and in the case of a club may, in its discretion, issue 18 or refuse a license: Provided, however, That in the case of any 19 new license or the transfer of any license to a new location or 20 the extension of an existing license to cover an additional area 21 the board may, in its discretion, grant or refuse such new 22 license, transfer or extension if such place proposed to be 23 licensed is within three hundred feet of any church, hospital, 24 charitable institution, school, or public playground, or if such 25 new license, transfer or extension is applied for a place which 26 is within two hundred feet of any other premises which is 27 licensed by the board: And provided further, That the board's 28 authority to refuse to grant a license because of its proximity 29 to a church, hospital, charitable institution, public playground 30 or other licensed premises shall not be applicable to license 20070H1886B2583 - 2 -
1 applications submitted for public venues or performing arts 2 facilities: And provided further, That the board shall refuse 3 any application for a new license, the transfer of any license 4 to a new location or the extension of an existing license to 5 cover an additional area if, in the board's opinion, such new 6 license, transfer or extension would be detrimental to the 7 welfare, health, peace and morals of the inhabitants of the 8 neighborhood within a radius of five hundred feet of the place 9 proposed to be licensed: And provided further, That the board 10 shall have the discretion to refuse a license to any person or 11 to any corporation, partnership or association if such person, 12 or any officer or director of such corporation, or any member or 13 partner of such partnership or association shall have been 14 convicted or found guilty of a felony within a period of five 15 years immediately preceding the date of application for the said 16 license. The board shall refuse any application for a new 17 license, the transfer of any license to a new location or the 18 extension of any license to cover an additional area where the 19 sale of liquid fuels or oil is conducted[.], it being the 20 legislative intent of this provision that no alcoholic beverages 21 may be sold from the same location as liquid fuels or oils. The 22 board may enter into an agreement with the applicant concerning 23 additional restrictions on the license in question. If the board 24 and the applicant enter into such an agreement, such agreement 25 shall be binding on the applicant. Failure by the applicant to 26 adhere to the agreement will be sufficient cause to form the 27 basis for a citation under section 471 and for the nonrenewal of 28 the license under section 470. If the board enters into an 29 agreement with an applicant concerning additional restrictions, 30 those restrictions shall be binding on subsequent holders of the 20070H1886B2583 - 3 -
1 license until the license is transferred to a new location or 2 until the board enters into a subsequent agreement removing 3 those restrictions. If the application in question involves a 4 location previously licensed by the board, then any restrictions 5 imposed by the board on the previous license at that location 6 shall be binding on the applicant unless the board enters into a 7 new agreement rescinding those restrictions. The board may, in 8 its discretion, refuse an application for an economic 9 development license under section 461(b.1) or an application for 10 an intermunicipal transfer of a license if the board receives a 11 protest from the governing body of the receiving municipality. 12 The receiving municipality of an intermunicipal transfer or an 13 economic development license under section 461(b.1) may file a 14 protest against the transfer of a license into its municipality, 15 and the receiving municipality shall have standing in a hearing 16 to present testimony in support of or against the issuance or 17 transfer of a license. Upon any opening in any quota, an 18 application for a new license shall only be filed with the board 19 for a period of six months following said opening. 20 Section 2. Section 407 of the act is amended by adding a 21 subsection to read: 22 Section 407. Sale of Malt or Brewed Beverages by Liquor 23 Licensees.--* * * 24 (c) A restaurant or hotel licensee who is otherwise 25 permitted to sell malt or brewed beverages for consumption off 26 the licensed premises shall not do so if its licensed premises 27 has an inside passage or connection to or with another business 28 or is operated in conjunction with another business occupying 29 one thousand square feet or more. The existing licensed premises 30 of a restaurant or hotel licensee that has an inside passage or 20070H1886B2583 - 4 -
1 connection to or with another business or is operated in 2 conjunction with another business occupying one thousand square 3 feet or more as of the effective date of this subsection shall 4 not be subject to this restriction, but the board shall refuse 5 any application for a new restaurant or hotel license or the 6 transfer of any restaurant or hotel license to a new location 7 with an inside passage or connection to or with another business 8 or that is operated in conjunction with another business 9 occupying one thousand square feet or more. 10 Section 3. Section 431(b) of the act, amended December 8, 11 2004 (P.L.1810, No.239), is amended to read: 12 Section 431. Malt and Brewed Beverages Manufacturers', 13 Distributors' and Importing Distributors' Licenses.--* * * 14 (b) The board shall issue to any reputable person who 15 applies therefor, and pays the license fee hereinafter 16 prescribed, a distributor's or importing distributor's license 17 for the place which such person desires to maintain for the sale 18 of malt or brewed beverages, not for consumption on the premises 19 where sold, and in quantities of not less than a case or 20 original containers containing one hundred twenty-eight ounces 21 or more which may be sold separately as prepared for the market 22 by the manufacturer at the place of manufacture. The board shall 23 have the discretion to refuse a license to any person or to any 24 corporation, partnership or association if such person, or any 25 officer or director of such corporation, or any member or 26 partner of such partnership or association shall have been 27 convicted or found guilty of a felony within a period of five 28 years immediately preceding the date of application for the said 29 license: And provided further, That, in the case of any new 30 license or the transfer of any license to a new location, the 20070H1886B2583 - 5 -
1 board may, in its discretion, grant or refuse such new license 2 or transfer if such place proposed to be licensed is within 3 three hundred feet of any church, hospital, charitable 4 institution, school or public playground, or if such new license 5 or transfer is applied for a place which is within two hundred 6 feet of any other premises which is licensed by the board: And 7 provided further, That the board shall refuse any application 8 for a new license or the transfer of any license to a new 9 location if, in the board's opinion, such new license or 10 transfer would be detrimental to the welfare, health, peace and 11 morals of the inhabitants of the neighborhood within a radius of 12 five hundred feet of the place proposed to be licensed. The 13 board shall refuse any application for a new license or the 14 transfer of any license to a location where the sale of liquid 15 fuels or oil is conducted[.], it being the legislative intent of 16 this provision that no alcoholic beverages may be sold from the 17 same location as liquid fuels or oils. The board may enter into 18 an agreement with the applicant concerning additional 19 restrictions on the license in question. If the board and the 20 applicant enter into such an agreement, such agreement shall be 21 binding on the applicant. Failure by the applicant to adhere to 22 the agreement will be sufficient cause to form the basis for a 23 citation under section 471 and for the nonrenewal of the license 24 under section 470. If the board enters into an agreement with an 25 applicant concerning additional restrictions, those restrictions 26 shall be binding on subsequent holders of the license until the 27 license is transferred to a new location or until the board 28 enters into a subsequent agreement removing those restrictions. 29 If the application in question involves a location previously 30 licensed by the board, then any restrictions imposed by the 20070H1886B2583 - 6 -
1 board on the previous license at that location shall be binding 2 on the applicant unless the board enters into a new agreement 3 rescinding those restrictions. The board shall require notice to 4 be posted on the property or premises upon which the licensee or 5 proposed licensee will engage in sales of malt or brewed 6 beverages. This notice shall be similar to the notice required 7 of hotel, restaurant and club liquor licensees. 8 Except as hereinafter provided, such license shall authorize 9 the holder thereof to sell or deliver malt or brewed beverages 10 in quantities above specified anywhere within the Commonwealth 11 of Pennsylvania, which, in the case of distributors, have been 12 purchased only from persons licensed under this act as 13 manufacturers or importing distributors, and in the case of 14 importing distributors, have been purchased from manufacturers 15 or persons outside this Commonwealth engaged in the legal sale 16 of malt or brewed beverages or from manufacturers or importing 17 distributors licensed under this article. In the case of an 18 importing distributor, the holder of such a license shall be 19 authorized to store and repackage malt or brewed beverages owned 20 by a manufacturer at a segregated portion of a warehouse or 21 other storage facility authorized by section 441(d) and operated 22 by the importing distributor within its appointed territory and 23 deliver such beverages to another importing distributor who has 24 been granted distribution rights by the manufacturer as provided 25 herein. The importing distributor shall be permitted to receive 26 a fee from the manufacturer for any related storage, repackaging 27 or delivery services. In the case of a bailee for hire hired by 28 a manufacturer, the holder of such a permit shall be authorized: 29 to receive, store and repackage malt or brewed beverages 30 produced by that manufacturer for sale by that manufacturer to 20070H1886B2583 - 7 -
1 importing distributors to whom that manufacturer has given 2 distribution rights pursuant to this subsection or to purchasers 3 outside this Commonwealth for delivery outside this 4 Commonwealth; or to ship to that manufacturer's storage 5 facilities outside this Commonwealth. The bailee for hire shall 6 be permitted to receive a fee from the manufacturer for any 7 related storage, repackaging or delivery services. The bailee 8 for hire shall, as required in Article V of this act, keep 9 complete and accurate records of all transactions, inventory, 10 receipts and shipments and make all records and the licensed 11 areas available for inspection by the board and for the 12 Pennsylvania State Police, Bureau of Liquor Control Enforcement, 13 during normal business hours. 14 Each out of State manufacturer of malt or brewed beverages 15 whose products are sold and delivered in this Commonwealth shall 16 give distributing rights for such products in designated 17 geographical areas to specific importing distributors, and such 18 importing distributor shall not sell or deliver malt or brewed 19 beverages manufactured by the out of State manufacturer to any 20 person issued a license under the provisions of this act whose 21 licensed premises are not located within the geographical area 22 for which he has been given distributing rights by such 23 manufacturer. Should a licensee accept the delivery of such malt 24 or brewed beverages in violation of this section, said licensee 25 shall be subject to a suspension of his license for at least 26 thirty days: Provided, That the importing distributor holding 27 such distributing rights for such product shall not sell or 28 deliver the same to another importing distributor without first 29 having entered into a written agreement with the said secondary 30 importing distributor setting forth the terms and conditions 20070H1886B2583 - 8 -
1 under which such products are to be resold within the territory 2 granted to the primary importing distributor by the 3 manufacturer. 4 When a Pennsylvania manufacturer of malt or brewed beverages 5 licensed under this article names or constitutes a distributor 6 or importing distributor as the primary or original supplier of 7 his product, he shall also designate the specific geographical 8 area for which the said distributor or importing distributor is 9 given distributing rights, and such distributor or importing 10 distributor shall not sell or deliver the products of such 11 manufacturer to any person issued a license under the provisions 12 of this act whose licensed premises are not located within the 13 geographical area for which distributing rights have been given 14 to the distributor and importing distributor by the said 15 manufacturer: Provided, That the importing distributor holding 16 such distributing rights for such product shall not sell or 17 deliver the same to another importing distributor without first 18 having entered into a written agreement with the said secondary 19 importing distributor setting forth the terms and conditions 20 under which such products are to be resold within the territory 21 granted to the primary importing distributor by the 22 manufacturer. Nothing herein contained shall be construed to 23 prevent any manufacturer from authorizing the importing 24 distributor holding the distributing rights for a designated 25 geographical area from selling the products of such manufacturer 26 to another importing distributor also holding distributing 27 rights from the same manufacturer for another geographical area, 28 providing such authority be contained in writing and a copy 29 thereof be given to each of the importing distributors so 30 affected. 20070H1886B2583 - 9 -
1 * * * 2 Section 4. Section 432(d) of the act, amended January 6, 3 2006 (P.L.1, No.1), is amended and the section is amended by 4 adding a subsection to read: 5 Section 432. Malt and Brewed Beverages Retail Licenses.--* * 6 * 7 (d) The board shall, in its discretion, grant or refuse any 8 new license, the transfer of any license to a new location or 9 the extension of an existing license to cover an additional area 10 if such place proposed to be licensed is within three hundred 11 feet of any church, hospital, charitable institution, school, or 12 public playground, or if such new license, transfer or extension 13 is applied for a place which is within two hundred feet of any 14 other premises which is licensed by the board. The board shall 15 refuse any application for a new license, the transfer of any 16 license to a new location or the extension of an existing 17 license to cover an additional area if, in the board's opinion, 18 such new license, transfer or extension would be detrimental to 19 the welfare, health, peace and morals of the inhabitants of the 20 neighborhood within a radius of five hundred feet of the place 21 to be licensed. The board may enter into an agreement with the 22 applicant concerning additional restrictions on the license in 23 question. If the board and the applicant enter into such an 24 agreement, such agreement shall be binding on the applicant. 25 Failure by the applicant to adhere to the agreement will be 26 sufficient cause to form the basis for a citation under section 27 471 and for the nonrenewal of the license under section 470. If 28 the board enters into an agreement with an applicant concerning 29 additional restrictions, those restrictions shall be binding on 30 subsequent holders of the license until the license is 20070H1886B2583 - 10 -
1 transferred to a new location or until the board enters into a 2 subsequent agreement removing those restrictions. If the 3 application in question involves a location previously licensed 4 by the board, then any restrictions imposed by the board on the 5 previous license at that location shall be binding on the 6 applicant unless the board enters into a new agreement 7 rescinding those restrictions. The board shall refuse any 8 application for a new license, the transfer of any license to a 9 location where the sale of liquid fuels or oil is conducted or 10 the extension of an existing license to cover an additional 11 area[:], it being the legislative intent of this provision that 12 under no circumstances alcoholic beverages may be sold from the 13 same location as liquid fuels or oils: And provided further, 14 That the board shall have the discretion to refuse a license to 15 any person or to any corporation, partnership or association if 16 such person, or any officer or director of such corporation, or 17 any member or partner of such partnership or association shall 18 have been convicted or found guilty of a felony within a period 19 of five years immediately preceding the date of application for 20 the said license. The board may, in its discretion, refuse an 21 application for an economic development license under section 22 461(b.1) or an application for an intermunicipal transfer or a 23 license if the board receives a protest from the governing body 24 of the receiving municipality. The receiving municipality of an 25 intermunicipal transfer or an economic development license under 26 section 461(b.1) may file a protest against the approval for 27 issuance of a license for economic development or an 28 intermunicipal transfer of a license into its municipality, and 29 such municipality shall have standing in a hearing to present 30 testimony in support of or against the issuance or transfer of a 20070H1886B2583 - 11 -
1 license. Upon any opening in any quota, an application for a new 2 license shall only be filed with the board for a period of six 3 months following said opening. 4 (d.1) An eating place retail dispenser licensee who is 5 otherwise permitted to sell malt or brewed beverages for 6 consumption off the licensed premises shall not do so if its 7 licensed premises has an inside passage or connection to or with 8 another business or is operated in conjunction with another 9 business occupying one thousand square feet or more. The 10 existing licensed premises of an eating place retail dispenser 11 licensee that has an inside passage or connection to or with 12 another business or is operated in conjunction with another 13 business occupying one thousand square feet or more as of the 14 effective date of this subsection shall not be subject to this 15 restriction, but the board shall refuse any application for a 16 new eating place retail dispenser license or the transfer of any 17 eating place retail dispenser license to a new location with an 18 inside passage or connection to or with another business or that 19 is operated in conjunction with another business occupying one 20 thousand square feet or more. 21 * * * 22 Section 5. This act shall take effect in 60 days. G18L47JS/20070H1886B2583 - 12 -