PRINTER'S NO. 3713
No. 2574 Session of 2002
INTRODUCED BY DONATUCCI, REINARD, LEDERER, MANDERINO, SATHER,
THOMAS, CLYMER, MELIO, KELLER, JAMES, PISTELLA, CASORIO,
SCRIMENTI, CORRIGAN, CREIGHTON, WASHINGTON, YOUNGBLOOD,
SHANER, J. WILLIAMS, CRUZ, HORSEY, JOSEPHS AND ROEBUCK,
APRIL 17, 2002
REFERRED TO COMMITTEE ON LIQUOR CONTROL, APRIL 17, 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 providing for the entering into agreement by the board and
18 license applicants regarding the pending application.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 404 of the act of April 12, 1951 (P.L.90,
22 No.21), known as the Liquor Code, reenacted and amended June 29,
23 1987 (P.L.32, No.14) and amended December 20, 2000 (P.L.992,
24 No.141), is amended to read:
1 Section 404. Issuance of Hotel, Restaurant and Club Liquor
2 Licenses.--Upon receipt of the application and the proper fees,
3 and upon being satisfied of the truth of the statements in the
4 application that the applicant is the only person in any manner
5 pecuniarily interested in the business so asked to be licensed
6 and that no other person will be in any manner pecuniarily
7 interested therein during the continuance of the license, except
8 as hereinafter permitted, and that the applicant is a person of
9 good repute, that the premises applied for meet all the
10 requirements of this act and the regulations of the board, that
11 the applicant seeks a license for a hotel, restaurant or club,
12 as defined in this act, and that the issuance of such license is
13 not prohibited by any of the provisions of this act, the board
14 shall, in the case of a hotel or restaurant, grant and issue to
15 the applicant a liquor license, and in the case of a club may,
16 in its discretion, issue or refuse a license: Provided, however,
17 That in the case of any new license or the transfer of any
18 license to a new location the board may, in its discretion,
19 grant or refuse such new license or transfer if such place
20 proposed to be licensed is within three hundred feet of any
21 church, hospital, charitable institution, school, or public
22 playground, or if such new license or transfer is applied for a
23 place which is within two hundred feet of any other premises
24 which is licensed by the board: And provided further, That the
25 board's authority to refuse to grant a license because of its
26 proximity to a church, hospital, charitable institution, public
27 playground or other licensed premises shall not be applicable to
28 license applications submitted for public venues or performing
29 arts facilities: And provided further, That the board shall
30 refuse any application for a new license or the transfer of any
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1 license to a new location if, in the board's opinion, such new
2 license or transfer would be detrimental to the welfare, health,
3 peace and morals of the inhabitants of the neighborhood within a
4 radius of five hundred feet of the place proposed to be
5 licensed: And provided further, That prior to July 1, 1996, in
6 any license district in a city of the first class, the board
7 may, in its opinion, refuse any application for a new license or
8 for any person-to-person transfer which shall include a change
9 in stockholders involving ten per centum or more of all
10 outstanding voting stock and/or less than ten per centum of all
11 outstanding voting stock when such change involves a majority or
12 controlling interest, of any license if the licensed premises is
13 or would be within three hundred feet of any church, hospital,
14 charitable institution, school or public playground or within
15 two hundred feet of any other premises licensed by the board and
16 if, in the opinion of the board, the licensed premises is or
17 would be detrimental to the welfare, health, peace and morals of
18 such church, hospital, school, public playground and/or the
19 inhabitants of the neighborhood within a radius of five hundred
20 feet of the licensed premises. The board may enter into an
21 agreement with the applicant concerning additional restrictions
22 on the license in question. If the board and the applicant enter
23 into such an agreement, such agreement shall be binding on the
24 applicant. Failure by the applicant to adhere to the agreement
25 will be sufficient cause to form the basis for a citation under
26 section 471 and for the nonrenewal of the license under section
27 470. This authority to refuse a person-to-person transfer in a
28 city of the first class is in addition to and not in derogation
29 of the authority of the board generally stated for all areas of
30 this Commonwealth: And provided further, That the board shall
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1 have the discretion to refuse a license to any person or to any
2 corporation, partnership or association if such person, or any
3 officer or director of such corporation, or any member or
4 partner of such partnership or association shall have been
5 convicted or found guilty of a felony within a period of five
6 years immediately preceding the date of application for the said
7 license. The board shall refuse any application for a new
8 license or the transfer of any license to a location where the
9 sale of liquid fuels or oil is conducted. The board may, in its
10 discretion, refuse an application for an economic development
11 license under section 461(b.1) or an application for an
12 intermunicipal transfer of a license if the board receives a
13 protest from the governing body of the receiving municipality.
14 The receiving municipality of an intermunicipal transfer or an
15 economic development license under section 461(b.1) may file a
16 protest against the transfer of a license into its municipality,
17 and the receiving municipality shall have standing in a hearing
18 to present testimony in support of or against the issuance or
19 transfer of a license. Upon any opening in any quota, an
20 application for a new license shall only be filed with the board
21 for a period of six months following said opening.
22 Section 2. Section 431(b) of the act, amended December 21,
23 1998 (P.L.1202, No.155), is amended to read:
24 Section 431. Malt and Brewed Beverages Manufacturers',
25 Distributors' and Importing Distributors' Licenses.--* * *
26 (b) The board shall issue to any reputable person who
27 applies therefor, and pays the license fee hereinafter
28 prescribed, a distributor's or importing distributor's license
29 for the place which such person desires to maintain for the sale
30 of malt or brewed beverages, not for consumption on the premises
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1 where sold, and in quantities of not less than a case or
2 original containers containing one hundred twenty-eight ounces
3 or more which may be sold separately as prepared for the market
4 by the manufacturer at the place of manufacture. The board may
5 enter into an agreement with the applicant concerning additional
6 restrictions on the license in question. If the board and the
7 applicant enter into such an agreement, such agreement shall be
8 binding on the applicant. Failure by the applicant to adhere to
9 the agreement will be sufficient cause to form the basis for a
10 citation under section 471 and for the nonrenewal of the license
11 under section 470. The board shall have the discretion to refuse
12 a license to any person or to any corporation, partnership or
13 association if such person, or any officer or director of such
14 corporation, or any member or partner of such partnership or
15 association shall have been convicted or found guilty of a
16 felony within a period of five years immediately preceding the
17 date of application for the said license: And provided further,
18 That, in the case of any new license or the transfer of any
19 license to a new location, the board may, in its discretion,
20 grant or refuse such new license or transfer if such place
21 proposed to be licensed is within three hundred feet of any
22 church, hospital, charitable institution, school or public
23 playground, or if such new license or transfer is applied for a
24 place which is within two hundred feet of any other premises
25 which is licensed by the board: And provided further, That the
26 board shall refuse any application for a new license or the
27 transfer of any license to a new location if, in the board's
28 opinion, such new license or transfer would be detrimental to
29 the welfare, health, peace and morals of the inhabitants of the
30 neighborhood within a radius of five hundred feet of the place
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1 proposed to be licensed. The board shall refuse any application
2 for a new license or the transfer of any license to a location
3 where the sale of liquid fuels or oil is conducted. The board
4 shall require notice to be posted on the property or premises
5 upon which the licensee or proposed licensee will engage in
6 sales of malt or brewed beverages. This notice shall be similar
7 to the notice required of hotel, restaurant and club liquor
8 licensees.
9 Except as hereinafter provided, such license shall authorize
10 the holder thereof to sell or deliver malt or brewed beverages
11 in quantities above specified anywhere within the Commonwealth
12 of Pennsylvania, which, in the case of distributors, have been
13 purchased only from persons licensed under this act as
14 manufacturers or importing distributors, and in the case of
15 importing distributors, have been purchased from manufacturers
16 or persons outside this Commonwealth engaged in the legal sale
17 of malt or brewed beverages or from manufacturers or importing
18 distributors licensed under this article. In the case of an
19 importing distributor, the holder of such a license shall be
20 authorized to store malt or brewed beverages owned by an out of
21 State manufacturer at a segregated portion of a warehouse or
22 other storage facility authorized by section 441(d) and operated
23 by the importing distributor within its appointed territory and
24 deliver such beverages to another importing distributor who has
25 been granted distribution rights by the out of State
26 manufacturer as provided herein. The importing distributor shall
27 be permitted to receive a fee from the out of State manufacturer
28 for any related storage or delivery services. In the case of a
29 bailee for hire hired by an out of State manufacturer, the
30 holder of such a permit shall be authorized: to receive or store
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1 malt or brewed beverages under the same conditions as permitted
2 for a distributor or importing distributor under section 441(f)
3 produced by that out of State manufacturer for sale by that
4 manufacturer to importing distributors to whom that out of State
5 manufacturer has given distribution rights pursuant to this
6 subsection or to purchasers outside this Commonwealth for
7 delivery outside this Commonwealth; or to ship to that out of
8 State manufacturer's storage facilities outside this
9 Commonwealth. The bailee for hire shall be permitted to receive
10 a fee from the out of State manufacturer for any related storage
11 or delivery services. The bailee for hire shall, as required in
12 Article V of this act, keep complete and accurate records of all
13 transactions, inventory, receipts and shipments and make all
14 records and the licensed areas available for inspection by the
15 board and for the Pennsylvania State Police, Bureau of Liquor
16 Control Enforcement, during normal business hours.
17 Each out of State manufacturer of malt or brewed beverages
18 whose products are sold and delivered in this Commonwealth shall
19 give distributing rights for such products in designated
20 geographical areas to specific importing distributors, and such
21 importing distributor shall not sell or deliver malt or brewed
22 beverages manufactured by the out of State manufacturer to any
23 person issued a license under the provisions of this act whose
24 licensed premises are not located within the geographical area
25 for which he has been given distributing rights by such
26 manufacturer. Should a licensee accept the delivery of such malt
27 or brewed beverages in violation of this section, said licensee
28 shall be subject to a suspension of his license for at least
29 thirty days: Provided, That the importing distributor holding
30 such distributing rights for such product shall not sell or
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1 deliver the same to another importing distributor without first
2 having entered into a written agreement with the said secondary
3 importing distributor setting forth the terms and conditions
4 under which such products are to be resold within the territory
5 granted to the primary importing distributor by the
6 manufacturer.
7 When a Pennsylvania manufacturer of malt or brewed beverages
8 licensed under this article names or constitutes a distributor
9 or importing distributor as the primary or original supplier of
10 his product, he shall also designate the specific geographical
11 area for which the said distributor or importing distributor is
12 given distributing rights, and such distributor or importing
13 distributor shall not sell or deliver the products of such
14 manufacturer to any person issued a license under the provisions
15 of this act whose licensed premises are not located within the
16 geographical area for which distributing rights have been given
17 to the distributor and importing distributor by the said
18 manufacturer: Provided, That the importing distributor holding
19 such distributing rights for such product shall not sell or
20 deliver the same to another importing distributor without first
21 having entered into a written agreement with the said secondary
22 importing distributor setting forth the terms and conditions
23 under which such products are to be resold within the territory
24 granted to the primary importing distributor by the
25 manufacturer. Nothing herein contained shall be construed to
26 prevent any manufacturer from authorizing the importing
27 distributor holding the distributing rights for a designated
28 geographical area from selling the products of such manufacturer
29 to another importing distributor also holding distributing
30 rights from the same manufacturer for another geographical area,
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1 providing such authority be contained in writing and a copy
2 thereof be given to each of the importing distributors so
3 affected.
4 * * *
5 Section 3. Section 432(d) of the act, amended December 20,
6 2000 (P.L.992, No.141), is amended to read:
7 Section 432. Malt and Brewed Beverages Retail Licenses.--* *
8 *
9 (d) The board shall, in its discretion, grant or refuse any
10 new license or the transfer of any license to a new location if
11 such place proposed to be licensed is within three hundred feet
12 of any church, hospital, charitable institution, school, or
13 public playground, or if such new license or transfer is applied
14 for a place which is within two hundred feet of any other
15 premises which is licensed by the board. The board may enter
16 into an agreement with the applicant concerning additional
17 restrictions on the license in question. If the board and the
18 applicant enter into such an agreement, such agreement shall be
19 binding on the applicant. Failure by the applicant to adhere to
20 the agreement will be sufficient cause to form the basis for a
21 citation under section 471 and for the nonrenewal of the license
22 under section 470. The board shall refuse any application for a
23 new license or the transfer of any license to a new location if,
24 in the board's opinion, such new license or transfer would be
25 detrimental to the welfare, health, peace and morals of the
26 inhabitants of the neighborhood within a radius of five hundred
27 feet of the place to be licensed. The board shall refuse any
28 application for a new license or the transfer of any license to
29 a location where the sale of liquid fuels or oil is conducted:
30 And provided further, That the board shall have the discretion
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1 to refuse a license to any person or to any corporation,
2 partnership or association if such person, or any officer or
3 director of such corporation, or any member or partner of such
4 partnership or association shall have been convicted or found
5 guilty of a felony within a period of five years immediately
6 preceding the date of application for the said license. The
7 board may, in its discretion, refuse an application for an
8 economic development license under section 461(b.1) or an
9 application for an intermunicipal transfer or a license if the
10 board receives a protest from the governing body of the
11 receiving municipality. The receiving municipality of an
12 intermunicipal transfer or an economic development license under
13 section 461(b.1) may file a protest against the approval for
14 issuance of a license for economic development or an
15 intermunicipal transfer of a license into its municipality, and
16 such municipality shall have standing in a hearing to present
17 testimony in support of or against the issuance or transfer of a
18 license. Upon any opening in any quota, an application for a new
19 license shall only be filed with the board for a period of six
20 months following said opening.
21 * * *
22 Section 4. Section 470(a) of the act, amended December 21,
23 1998 (P.L.1202, No.155), is amended to read:
24 Section 470. Renewal of Licenses; Temporary Provisions for
25 Licensees in Armed Service.--(a) All applications for renewal
26 of licenses under the provisions of this article shall be filed
27 with tax clearance from the Department of Revenue and the
28 Department of Labor and Industry and requisite license and
29 filing fees at least sixty days before the expiration date of
30 same: Provided, however, That the board, in its discretion, may
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1 accept nunc pro tunc a renewal application filed less than sixty
2 days before the expiration date of the license with the required
3 fees, upon reasonable cause shown and the payment of an
4 additional filing fee of one hundred dollars ($100.00) for late
5 filing: And provided further, That except where the failure to
6 file a renewal application on or before the expiration date has
7 created a license quota vacancy after said expiration date which
8 has been filled by the issuance of a new license, after such
9 expiration date, but before the board has received a renewal
10 application nunc pro tunc within the time prescribed herein the
11 board, in its discretion, may, after hearing, accept a renewal
12 application filed within two years after the expiration date of
13 the license with the required fees upon the payment of an
14 additional filing fee of two hundred fifty dollars ($250.00) for
15 late filing. Where any such renewal application is filed less
16 than sixty days before the expiration date, or subsequent to the
17 expiration date, no license shall issue upon the filing of the
18 renewal application until the matter is finally determined by
19 the board and if an appeal is taken from the board's action the
20 courts shall not order the issuance of the renewal license until
21 final determination of the matter by the courts. The board may
22 enter into an agreement with the applicant concerning additional
23 restrictions on the license in question. If the board and the
24 applicant enter into such an agreement, such agreement shall be
25 binding on the applicant. Failure by the applicant to adhere to
26 the agreement will be sufficient cause to form the basis for a
27 citation under section 471 and for the nonrenewal of the license
28 under this section. A renewal application will not be considered
29 filed unless accompanied by the requisite filing and license
30 fees and any additional filing fee required by this section.
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1 Unless the board shall have given ten days' previous notice to
2 the applicant of objections to the renewal of his license, based
3 upon violation by the licensee or his servants, agents or
4 employes of any of the laws of the Commonwealth or regulations
5 of the board relating to the manufacture, transportation, use,
6 storage, importation, possession or sale of liquors, alcohol or
7 malt or brewed beverages, or the conduct of a licensed
8 establishment, or unless the applicant has by his own act become
9 a person of ill repute, or unless the premises do not meet the
10 requirements of this act or the regulations of the board, the
11 license of a licensee shall be renewed.
12 * * *
13 Section 5. This act shall take effect immediately.
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