| SENATE AMENDED |
| PRIOR PRINTER'S NOS. 37, 1395, 1574, 2092 | PRINTER'S NO. 2368 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY M. O'BRIEN, JANUARY 26, 2009 |
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| AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 1, 2009 |
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| AN ACT |
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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 definitions, for special occasion | <-- |
18 | permits, for sacramental wine licenses, fees, privileges and | <-- |
19 | restrictions and for interlocking businesses prohibited; |
20 | providing for an enhanced restaurant license; and further |
21 | providing for number and kinds of licenses allowed same |
22 | licensee and for limited number of retail licenses to be |
23 | issued in each county. |
24 | The General Assembly of the Commonwealth of Pennsylvania |
25 | hereby enacts as follows: |
26 | Section 1. The definitions of "eligible entity" entity," | <-- |
27 | "performing arts facilities" and "public venue" in section 102 |
28 | of the act of April 12, 1951 (P.L.90, No.21), known as the |
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1 | Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14) |
2 | and amended December 20, 2000 (P.L.992, No.41), November 29, |
3 | 2006 (P.L.1421, No. 155) and July 16, 2007 (P.L.107, No.34), are |
4 | amended to read: |
5 | Section 102. Definitions.--The following words or phrases, |
6 | unless the context clearly indicates otherwise, shall have the |
7 | meanings ascribed to them in this section: |
8 | * * * |
9 | "Eligible entity" shall mean a city of the third class, a |
10 | hospital, a church, a synagogue, a volunteer fire company, a |
11 | volunteer ambulance company, a volunteer rescue squad, a unit of |
12 | a nationally chartered club which has been issued a club liquor |
13 | license, a club in a city of the third class which has been |
14 | issued a club liquor license and which, as of December 31, 2002, |
15 | has been in existence for at least 100 years, a library, a |
16 | nationally accredited Pennsylvania nonprofit zoological |
17 | institution licensed by the United States Department of |
18 | Agriculture, a nonprofit agricultural association in existence |
19 | for at least ten years, a bona fide sportsmen's club in |
20 | existence for at least ten years, a nationally chartered |
21 | veterans' organization and any affiliated lodge or subdivision |
22 | of such organization, a fraternal benefit society that is |
23 | licensed to do business in this Commonwealth and any affiliated |
24 | lodge or subdivision of such fraternal benefit society, a museum |
25 | operated by a nonprofit corporation in a city of the third class |
26 | or township of the first class, a nonprofit corporation engaged |
27 | in the performing arts in a city of the third class, borough or |
28 | in an incorporated town, an arts council, a nonprofit |
29 | corporation that operates an arts facility or museum in a city |
30 | of the third class in the county of the fourth class, a |
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1 | nonprofit organization as defined under section 501(c)(3) of the |
2 | Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § |
3 | 501(c)(3)) whose purpose is to protect the architectural |
4 | heritage of boroughs and which has been recognized as such by a |
5 | municipal resolution, a nonprofit organization as defined under |
6 | section 501(c)(3) of the Internal Revenue Code of 1986 (Public |
7 | Law 99-514, 26 U.S.C. § 501(c)(3)) conducting a regatta in a |
8 | city of the second class with the permit to be used on State |
9 | park grounds or conducting a family-oriented celebration as part |
10 | of Welcome America in a city of the first class on property |
11 | leased from that city for more than fifty years, a nonprofit |
12 | organization as defined under section 501(c)(3) of the Internal |
13 | Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to |
14 | raise funds for the research and treatment of cystic fibrosis, a |
15 | nonprofit organization as defined under section 501(c)(3) of the |
16 | Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose |
17 | purpose is to educate the public on issues dealing with |
18 | watershed conservation, a nonprofit organization as defined |
19 | under section 501(c)(3) of the Internal Revenue Code of 1986 |
20 | (Public Law 99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to |
21 | provide equine assisted activities for children and adults with |
22 | special needs, a nonprofit economic development agency in a city |
23 | of the second class with the primary function to serve as an |
24 | economic generator for the greater southwestern Pennsylvania |
25 | region by attracting and supporting film, television and related |
26 | media industry projects and coordinating government and business |
27 | offices in support of a production, a county tourist promotion |
28 | agency as defined in section 3(1) of the act of April 28, 1961 |
29 | (P.L.111, No.50), known as the "Tourist Promotion Law," and |
30 | located in a city of the third class in a county of the fourth |
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1 | class or located in a township of the second class in a county |
2 | of the fifth class, a junior league in a third class county that |
3 | is a nonprofit organization as defined under section 501(c)(3) |
4 | of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) |
5 | that is comprised of women whose purpose is exclusively |
6 | educational and charitable in promoting the volunteerism of |
7 | women and developing and participating in community projects and |
8 | that has been in existence for over seventy years [or], a |
9 | nonprofit organization as defined under section 501(C)(6) of the |
10 | Internal Revenue Code of 1986 which is located in a city of the |
11 | third class in a county of the third class and whose purpose is |
12 | to support business and industry or a club recognized by Rotary |
13 | International which is located in a county of the fourth class | <-- |
14 | and whose purpose is to provide service to others, to promote |
15 | high ethical standards and to advance world understanding, |
16 | goodwill and peace through its fellowship of business, |
17 | professional and community leaders or a nonprofit organization | <-- |
18 | as defined under section 501(c)(3) of the Internal Revenue Code |
19 | of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is |
20 | located in a borough in a county of the third class and whose |
21 | purpose is to promote mushrooms while supporting local and |
22 | regional charities. |
23 | * * * |
24 | "Performing arts facilities" shall mean those halls or | <-- |
25 | theaters in which live musical, concert, dance, ballet and |
26 | legitimate play book-length productions are performed. |
27 | Performing arts facilities shall not mean those halls or |
28 | theaters in which burlesque shows or reviews are performed. If |
29 | the operator of the performing arts facility is a nonprofit |
30 | entity, the facility must have seating for at least [five |
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1 | hundred (500)] two hundred fifty (250) people; otherwise, the |
2 | facility must have seating for at least twenty-five hundred |
3 | (2,500) people. |
4 | * * * |
5 | "Public venue" shall mean a stadium, arena, convention |
6 | center, museum, amphitheater or similar structure. If the public |
7 | venue is a cruise terminal owned or leased by a port authority |
8 | created under the act of June 12, 1931 (P.L.575, No.200), |
9 | entitled "An act providing for joint action by Pennsylvania and |
10 | New Jersey in the development of the ports on the lower Delaware |
11 | River, and the improvement of the facilities for transportation |
12 | across the river; authorizing the Governor, for these purposes, |
13 | to enter into an agreement with New Jersey; creating The |
14 | Delaware River Joint Commission and specifying the powers and |
15 | duties thereof, including the power to finance projects by the |
16 | issuance of revenue bonds; transferring to the new commission |
17 | all the powers of the Delaware River Bridge Joint Commission; |
18 | and making an appropriation," it shall have no permanent seating |
19 | requirement. If the public venue is an open-air amphitheater |
20 | owned by a port authority created under the act of December 6, |
21 | 1972 (P.L.1392, No.298), known as the "Third Class City Port |
22 | Authority Act," it shall have no permanent seating requirement. |
23 | If the public venue is owned by a political subdivision, a |
24 | municipal authority, the Commonwealth, an authority created |
25 | under the act of July 29, 1953 (P.L.1034, No.270), known as the |
26 | "Public Auditorium Authorities Law," an authority created under |
27 | Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), |
28 | known as the "Second Class County Code," an art museum |
29 | established under the authority of the act of April 6, 1791 (3 |
30 | Sm.L.20, No.1536), entitled "An act to confer on certain |
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1 | associations of the citizens of this commonwealth the powers and |
2 | immunities of corporations, or bodies politic in law," or an |
3 | authority created under Article XXIII (n) or (o) of the act of |
4 | August 9, 1955 (P.L.323, No.130), known as "The County Code," it |
5 | shall have permanent seating for at least one thousand (1,000) |
6 | people; otherwise, it shall have permanent seating for at least |
7 | two thousand (2,000) people. The term shall also mean any |
8 | regional history center, multipurpose cultural and science |
9 | facility, museum or convention or trade show center, regardless |
10 | of owner and seating capacity, that has a floor area of at least |
11 | sixty thousand (60,000) square feet in one building. The term |
12 | shall also mean a convention or conference center owned by a |
13 | city of the third class or a university which is a member of the |
14 | Pennsylvania State System of Higher Education which is operated |
15 | by a university foundation or alumni association, regardless of |
16 | seating capacity, that has a floor area of at least fifteen |
17 | thousand (15,000) square feet in one building. The term shall |
18 | shall also mean a visitor center, regardless of floor area or | <-- |
19 | seating capacity, that was established under the authority of |
20 | the Gateway Visitor Center Authorization Act of 1999 (Public Law |
21 | 106-131, 113 Stat. 1678; 16 USCA 1678, 16 U.S.C. § 407m)). | <-- |
22 | * * * |
23 | Section 2. Section 408.4(h) and (j) of the act, amended | <-- |
24 | December 9, 2002 (P.L.1653, No.212), are amended to read: |
25 | Section 408.4. Special Occasion Permits.-- |
26 | (h) The board may issue a special occasion permit to an |
27 | eligible entity. The board may also issue a special occasion |
28 | permit to one auxiliary of any eligible entity. Any eligible |
29 | entity that wishes to acquire a special occasion permit must |
30 | submit [a] an original written application to the board in such |
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1 | form and containing such information as the board shall from |
2 | time to time prescribe. The application shall include a |
3 | resolution by the eligible entity setting forth its current |
4 | officers and approving the application. Upon approval of the |
5 | application by the board, the special occasion permit shall be |
6 | sent to the eligible entity only. The fee for special occasion |
7 | permits shall be as set forth under section 614-A(24) of the act |
8 | of April 9, 1929 (P.L.177, No.175), known as "The Administrative |
9 | Code of 1929." |
10 | * * * |
11 | (j) The eligible entity shall give the local police |
12 | department or the Pennsylvania State Police if there is no local |
13 | police department written notice at least forty-eight hours |
14 | prior to each use of the special occasion permit. Written notice |
15 | consists of notifying the police of the date, time and place of |
16 | the impending sale of alcoholic beverages. Prior to use of the |
17 | special occasion permit, the eligible entity shall submit to the |
18 | board written proof of notification of the police. |
19 | * * * |
20 | Section 2. Section 409 of the act, amended December 21, 1998 | <-- |
21 | (P.L.1202, No.155) and December 9, 2002 (P.L.1653, No.212), is |
22 | amended to read: |
23 | Section 409. Sacramental Wine Licenses; Fees; Privileges; |
24 | Restrictions.--(a) Subject to the provisions of this act in |
25 | general and more particularly to the following provisions of |
26 | this section, the board shall issue sacramental wine licenses to |
27 | qualified applicants. |
28 | (b) Every applicant for a sacramental wine license shall |
29 | file a written application with the board in such form as the |
30 | board shall from time to time prescribe, which shall be |
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1 | accompanied by a filing fee and a license fee as prescribed in |
2 | section 614-A of the act of April 9, 1929 (P.L.177, No.175), |
3 | known as "The Administrative Code of [1929," and a license fee |
4 | of one hundred dollars.] 1929." Every such application shall |
5 | contain a description of the premises for which the applicant |
6 | desires a license and shall set forth such other material |
7 | information as may be required by the board. |
8 | (c) If the applicant is a natural person, his application |
9 | must show that he is a citizen of the United States or a |
10 | resident alien and a resident of this Commonwealth. If the |
11 | applicant is an association or partnership, each and every |
12 | member of the association or partnership must be a citizen of |
13 | the United States or a resident alien and a resident of this |
14 | Commonwealth. If the applicant is a corporation, the application |
15 | must show that the corporation was created under the laws of |
16 | Pennsylvania or holds a certificate of authority to transact |
17 | business in Pennsylvania, and that all officers, directors and |
18 | stockholders are citizens of the United States or resident |
19 | aliens. |
20 | (d) [Holders] Except as otherwise provided under subsection |
21 | (d.1), holders of such licenses may purchase from manufacturers |
22 | or bring or import into this Commonwealth wine to be used for |
23 | sacramental or religious purposes only, and bottle and sell the |
24 | same to priests, clergymen and rabbis for use in the cathedral, |
25 | church, synagogue or temple, or for sustaining members of the |
26 | congregation or members of the faith who attend religious |
27 | services, duly certified by such priests, clergymen or rabbis. |
28 | The sale and use of wine for sacramental or religious purposes |
29 | shall be subject to and in accordance with the regulations of |
30 | the board. |
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1 | (d.1) In addition to the privileges conferred under |
2 | subsection (d), the holder of a sacramental wine license who |
3 | owns or operates an eating place or a restaurant may sell food |
4 | for consumption on or off the premises and sell for consumption |
5 | on the premises only the wine that it may acquire and sell |
6 | pursuant to its license. In addition, the holder of a |
7 | sacramental wine license may allow persons who have purchased |
8 | but only partially consumed a bottle of wine on the premises to |
9 | remove the bottle from the premises so long as the bottle was |
10 | purchased in conjunction with a meal that was consumed on the |
11 | premises and so long as the bottle is resealed. |
12 | (e) [Any] Except as provided under subsection (d.1), any |
13 | wine purchased under the authority of this section shall not be |
14 | used for any other than sacramental or religious purposes. |
15 | Sacramental wine may not be sold by any person except the holder |
16 | of a sacramental wine license. |
17 | (f) Every sacramental wine licensee shall maintain on the |
18 | licensed premises such records as the board may prescribe. No |
19 | deliveries of sacramental wine shall be made unless and until an |
20 | order therefor is on file at the principal place of business in |
21 | Pennsylvania. All shipments into Pennsylvania of wine to be used |
22 | [for sacramental or religious purposes] as prescribed in this |
23 | section shall be consigned to the principal place of business |
24 | maintained by the licensee. |
25 | (g) Any such license may be suspended or revoked by the |
26 | board upon proof satisfactory to it that the licensee has |
27 | violated any law of this Commonwealth or any regulation of the |
28 | board relating to liquor and alcohol. The procedure in such |
29 | cases shall be the same as for the revocation and suspension of |
30 | hotel, restaurant and club licenses. |
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1 | (h) For purposes of this section the term "sacramental wine" |
2 | shall mean any wine that is clearly marked on the bottle by the |
3 | manufacturer as being produced or manufactured in accordance |
4 | with religious law, practice or custom. |
5 | Section 3. Section 411(e) of the act is amended to read: |
6 | Section 411. Interlocking Business Prohibited.--* * * |
7 | (e) Except as herein provided, no hotel, restaurant, retail |
8 | dispenser or club licensee, and no officer, director or |
9 | stockholder, agent or employe of any such licensee shall in any |
10 | wise be interested, directly or indirectly, in the ownership or |
11 | leasehold of any property or the equipment of any property or |
12 | any mortgage lien against the same, used by a distributor, |
13 | importing distributor, or by an importer or sacramental wine |
14 | licensee, in the conduct of his business; nor shall any hotel, |
15 | restaurant, retail dispenser or club licensee, or any officer, |
16 | director, stockholder, agent or employe of any such licensee, |
17 | either directly or indirectly, lend any moneys, credit, or give |
18 | anything of value or the equivalent thereof, to any distributor, |
19 | importing distributor, importer or sacramental wine licensee, |
20 | for equipping, fitting out, or maintaining and conducting, |
21 | either in whole or in part, an establishment used in the conduct |
22 | of his business. |
23 | The purpose of this section is to require a separation of the |
24 | financial and business interests between manufacturers and |
25 | holders of hotel or restaurant liquor licenses and, as herein |
26 | provided, of club licenses, issued under this article, and no |
27 | person shall, by any device whatsoever, directly or indirectly, |
28 | evade the provisions of the section. But in view of existing |
29 | economic conditions, nothing contained in this section shall be |
30 | construed to prohibit the ownership of property or conflicting |
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1 | interest by a manufacturer of any place occupied by a licensee |
2 | under this article after the manufacturer has continuously owned |
3 | and had a conflicting interest in such place for a period of at |
4 | least five years prior to July eighteenth, one thousand nine |
5 | hundred thirty-five: Provided, however, That this clause shall |
6 | not prohibit any hotel, restaurant or club liquor licensee from |
7 | owning land which is leased to, and the buildings thereon owned |
8 | by, a holder of a retail dispenser's license; and nothing in |
9 | this clause shall prevent the issuance of a retail dispenser's |
10 | license to a lessee of such lands who owns the buildings |
11 | thereon: And, provided further, That nothing contained in this |
12 | section shall be construed to prohibit any hotel, restaurant, |
13 | retail dispenser or club licensee or any officer, director or |
14 | stockholder, agent or employe of any such licensee from having a |
15 | financial or other interest, directly or indirectly in the |
16 | ownership or leasehold of any property or the equipment of any |
17 | property or any mortgage lien against same, used, leased by an |
18 | importer or sacramental wine licensee for the exclusive purpose |
19 | of maintaining commercial offices and on the condition that said |
20 | property is not used for the storage or sale of liquor or malt |
21 | or brewed beverages in any quantity[.]: And, provided further, |
22 | That nothing contained in this section shall be construed to |
23 | prohibit a member of the governing board of a public authority |
24 | created under subdivision (n) of Article XXIII of the act of |
25 | August 9, 1955 (P.L.323, No.130), known as "The County Code," |
26 | from having an interest in a distributor or importing |
27 | distributor license notwithstanding the fact that the public |
28 | authority has an interest in one or more retail licenses or acts |
29 | as a landlord for one or more retail licenses. |
30 | Section 4. The act is amended by adding a section to read: |
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1 | Section 415. Enhanced Restaurant License.--(a) |
2 | Notwithstanding any other provision of law, a person holding a |
3 | slot machine license who also holds a restaurant license issued |
4 | by the Pennsylvania Liquor Control Board shall be eligible to |
5 | receive an enhanced restaurant license by registering with the |
6 | Liquor Control Board and paying an enhanced license fee of |
7 | $250,000. The holder of an enhanced restaurant license shall pay |
8 | an annual fee of $30,000. |
9 | (b) An enhanced restaurant license shall not be subject to |
10 | section 471(c). |
11 | (c) If the holder of an enhanced restaurant license is cited |
12 | and found to have violated a provision of this act, the enhanced |
13 | restaurant license shall be subject to a fine of not less than |
14 | $250 nor more than $25,000. The prior citation history of the |
15 | enhanced restaurant licensee shall be considered in determining |
16 | the amount of the fine. |
17 | Section 5. Section 438(c) of the act is amended to read: |
18 | Section 438. Number and Kinds of Licenses Allowed Same |
19 | Licensee.--* * * |
20 | (c) No person shall possess more than one class of license, |
21 | except that a holder of a retail dispenser's license may also be |
22 | a holder of a retail liquor license[.]: Provided, however, That |
23 | nothing contained in this section shall be construed to prohibit |
24 | a member of the governing board of a public authority created |
25 | under subdivision (n) of Article XXIII of the act of August 9, |
26 | 1955 (P.L.323, No.130), known as "The County Code," from having |
27 | an interest in a distributor or importing distributor license |
28 | notwithstanding the fact that the public authority has an |
29 | interest in one or more retail licenses or acts as a landlord |
30 | for one or more retail licenses. |
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1 | Section 6. Section 443(g) of the act, amended May 31, 1996 |
2 | (P.L.312, No.49), is amended to read: |
3 | Section 443. Interlocking Business Prohibited.--* * * |
4 | (g) The purpose of this section is to require a separation |
5 | of the financial and business interests between the various |
6 | classes of business regulated by subdivision (B) of this |
7 | article, and no person or corporation shall, by any device |
8 | whatsoever, directly or indirectly, evade the provisions of this |
9 | section. But in view of existing economic conditions, nothing |
10 | contained in this section shall be construed to prohibit the |
11 | ownership of property or conflicting interest by a malt or |
12 | brewed beverage manufacturer of any place occupied by a |
13 | distributor, importing distributor or retail dispenser after the |
14 | manufacturer has continuously owned and had a conflicting |
15 | interest in such place for a period of at least five years prior |
16 | to the eighteenth day of July, one thousand nine hundred thirty- |
17 | five: Provided, however, That a holder of a manufacturer's |
18 | license under section 431(a) who is eligible to operate a |
19 | brewery pub under section 446(2) or a limited winery as provided |
20 | for under section 505.2 may also hold and operate under a hotel |
21 | liquor license, a restaurant liquor license or a malt and brewed |
22 | beverages retail license on the manufacturer's or limited |
23 | winery's licensed premises. The hotel liquor license or |
24 | restaurant liquor license or the malt and brewed beverages |
25 | retail license shall be acquired by the manufacturer or limited |
26 | winery subject to section 461 and shall satisfy all requirements |
27 | for each respective license[.]: And, provided further, That |
28 | nothing contained in this section shall be construed to prohibit |
29 | a member of the governing board of a public authority created |
30 | under subdivision (n) of Article XXIII of the act of August 9, |
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1 | 1955 (P.L.323, No.130), known as "The County Code," from having |
2 | an interest in a distributor or importing distributor license |
3 | notwithstanding the fact that the public authority has an |
4 | interest in one or more retail licenses or acts as a landlord |
5 | for one or more retail licenses. |
6 | The term "manufacturer" as used in this section shall include |
7 | manufacturers of malt or brewed beverages as defined in this act |
8 | and any person manufacturing any malt or brewed beverages |
9 | outside of this Commonwealth. |
10 | Section 3 2 7. Section 461(c)(9) of the act, amended July | <-- |
11 | 16, 2007 (P.L.107, No.34), is amended to read: |
12 | Section 461. Limiting Number of Retail Licenses To Be Issued |
13 | In Each County.--* * * |
14 | (c) The word "hotel" as used in this section shall mean any |
15 | reputable place operated by a responsible person of good |
16 | reputation where the public may, for a consideration, obtain |
17 | sleeping accommodations, and which shall have the following |
18 | number of bedrooms and requirements in each case--at least one- |
19 | half of the required number of bedrooms shall be regularly |
20 | available to transient guests seven days weekly, except in |
21 | resort areas; at least one-third of such bedrooms shall be |
22 | equipped with hot and cold water, a lavatory, commode, bathtub |
23 | or shower and a clothes closet; and an additional one-third of |
24 | the total of such required rooms shall be equipped with lavatory |
25 | and commode: |
26 | * * * |
27 | (9) Upon application to and subject to inspection by the |
28 | board, hotel licensees under clause (8) of this subsection shall |
29 | no longer be required to maintain bedrooms for public |
30 | accommodation. [However, areas required and designated as |
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1 | bedrooms for public accommodation prior to the effective date of |
2 | this clause may not subsequently be used as licensed serving |
3 | area.] Such area may be used as licensed storage area or serving |
4 | area consistent with this act and existing regulations. |
5 | * * * |
6 | Section 4 3 8. This act shall take effect in 60 days. | <-- |
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