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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1843, 2613, 3090         PRINTER'S NO. 3160

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1519 Session of 2001


        INTRODUCED BY REINARD, LEH, MARSICO, McILHINNEY, WILT AND
           ADOLPH, MAY 3, 2001

        SENATOR CONTI, LAW AND JUSTICE, IN SENATE, AS AMENDED,
           JANUARY 23, 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     adding definitions; further providing for special occasion
    18     permits; providing for shipment of wine into the
    19     Commonwealth; further providing for general powers of the
    20     board, for sales by Pennsylvania liquor stores, for
    21     applications for hotel, restaurant and club liquor licenses,
    22     for public venue license, for performing arts facility
    23     license; providing FOR A CONTINUING CARE RETIREMENT COMMUNITY  <--
    24     RETAIL LICENSE NOT SUBJECT TO THE QUOTA SYSTEM AND for malt
    25     and brewed beverages alternating brewers' licenses; and
    26     further providing for application for distributors',
    27     importing distributors' and retail dispensers' licenses, for
    28     limiting number of retail licenses to be issued in each
    29     county, for places of amusement not to be licensed and
    30     penalty, for licenses not assignable and transfers, for
    31     revocation and suspension of licenses and fines, for local


     1     option, for clubs, for privately owned public golf courses,
     2     for establishments proximate to interstate highways not to be
     3     licensed, for applicants to provide State tax identification
     4     numbers and statement of State tax status and waiver of
     5     confidentiality of information in the possession of the
     6     Department of Revenue and other departments and review of
     7     State tax status, for unlawful acts relative to liquor, malt
     8     and brewed beverages and licensees, for identification cards
     9     and licensees and State liquor store employees saved from
    10     prosecution, for reporting of worthless checks, for unlawful
    11     advertising and for premises to be vacated by patrons.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The definitions of "eating place," "public venue"
    15  and "restaurant" in section 102 of the act of April 12, 1951
    16  (P.L.90, No.21), known as the Liquor Code, reenacted and amended
    17  June 29, 1987 (P.L.32, No.14) and amended December 20, 2000
    18  (P.L.992, No.141), are amended and the section is amended by
    19  adding definitions to read:
    20     Section 102.  Definitions.--The following words or phrases,
    21  unless the context clearly indicates otherwise, shall have the
    22  meanings ascribed to them in this section:
    23     * * *
    24     "Alternating brewer" shall mean any person, association,
    25  corporation or other business entity licensed by the board to
    26  produce malt or brewed beverages at premises that are licensed
    27  by another entity under a Pennsylvania manufacturer's license.
    28     * * *
    29     "Automobile racetrack" shall mean a track used principally
    30  for holding automobile races which has a seating capacity in
    31  excess of twenty-five thousand.
    32     * * *
    33     "Combination package" shall mean a package consisting of
    34  liquor or alcohol and a non-liquor or non-alcohol item as
    35  packaged by the manufacturer or its representative.
    20010H1519B3160                  - 2 -

     1     * * *
     2     "CONTINUING CARE RETIREMENT COMMUNITY" SHALL MEAN THE          <--
     3  BUILDING OR COMPLEX OPERATED BY A NONPROFIT ENTITY INCORPORATED
     4  UNDER 15 PA.C.S. SUBPT. C (RELATING TO NONPROFIT CORPORATIONS)
     5  WHICH PRIMARILY HOUSES PERSONS OVER THE AGE OF SIXTY-TWO. AT
     6  LEAST ONE HUNDRED PERSONS RESIDING IN THE BUILDING OR COMPLEX
     7  MUST BE OVER THE AGE OF SIXTY-TWO.
     8     * * *
     9     "Direct shipper" shall mean a person outside this
    10  Commonwealth who obtains a license from the board to accept
    11  orders placed for wine from within this Commonwealth by the
    12  Internet and who ships or facilitates in any way shipment of
    13  wine by a delivery agent or common carrier to a Pennsylvania
    14  liquor store.
    15     * * *
    16     "Eating place" shall mean a premise where food is regularly
    17  and customarily prepared and sold, having a total area of not
    18  less than three hundred square feet available to the public in
    19  one or more rooms, other than living quarters, and equipped with
    20  tables and chairs, including bar seats, accommodating thirty
    21  persons at one time.
    22     * * *
    23     "Management company" shall mean any entity employed or
    24  otherwise contracted by a licensee to operate, manage or
    25  supervise all or part of the operation of the licensed premises.
    26     * * *
    27     "Public venue" shall mean a stadium, arena, convention
    28  center, museum, amphitheater or similar structure. If the public
    29  venue is a cruise terminal owned or leased by a port authority
    30  created under the act of June 12, 1931 (P.L.575, No.200),
    20010H1519B3160                  - 3 -

     1  entitled "An act providing for joint action by Pennsylvania and
     2  New Jersey in the development of the ports on the lower Delaware
     3  River, and the improvement of the facilities for transportation
     4  across the river; authorizing the Governor, for these purposes,
     5  to enter into an agreement with New Jersey; creating The
     6  Delaware River Joint Commission and specifying the powers and
     7  duties thereof, including the power to finance projects by the
     8  issuance of revenue bonds; transferring to the new commission
     9  all the powers of the Delaware River Bridge Joint Commission;
    10  and making an appropriation," it shall have no permanent seating
    11  requirement. If the public venue is an open-air amphitheater
    12  owned by a port authority created under the act of December 6,
    13  1972 (P.L.1392, No.298), known as the "Third Class City Port
    14  Authority Act," it shall have no permanent seating requirement.
    15  If the public venue is owned by a political subdivision, a
    16  municipal authority, the Commonwealth, an authority created
    17  under the act of July 29, 1953 (P.L.1034, No.270), known as the
    18  "Public Auditorium Authorities Law," an authority created under
    19  Article XXV-A of the act of July 28, 1953 (P.L.723, No.230),
    20  known as the "Second Class County Code," an art museum
    21  established under the authority of the act of April 6, 1791 (3
    22  Sm.L.20, No.1536), entitled "An act to confer on certain
    23  associations of the citizens of this commonwealth the powers and
    24  immunities of corporations, or bodies politic in law," or an
    25  authority created under Article XXIII (n) or (o) of the act of
    26  August 9, 1955 (P.L.323, No.130), known as "The County Code," it
    27  shall have permanent seating for at least one thousand (1,000)
    28  people; otherwise, it shall have permanent seating for at least
    29  [five thousand (5,000)] three thousand (3,000) people. The term
    30  shall also mean any regional history center, multipurpose
    20010H1519B3160                  - 4 -

     1  cultural and science facility or museum, regardless of owner and
     2  seating capacity, that has a floor area of at least sixty
     3  thousand (60,000) square feet in one building.
     4     * * *
     5     "Restaurant" shall mean a reputable place operated by
     6  responsible persons of good reputation and habitually and
     7  principally used for the purpose of providing food for the
     8  public, the place to have an area within a building of not less
     9  than four hundred square feet, equipped with tables and chairs,
    10  including bar seats, accommodating at least thirty persons at
    11  one time.
    12     * * *
    13     Section 2.  Section 207 of the act is amended by adding a
    14  subsection to read:
    15     Section 207.  General Powers of Board.--Under this act, the
    16  board shall have the power and its duty shall be:
    17     * * *
    18     (k)  To issue grants to various entities for alcohol
    19  education and prevention efforts.
    20     Section 3.  Section 305(a) of the act is amended to read:
    21     Section 305.  Sales by Pennsylvania Liquor Stores.--(a)
    22  Every Pennsylvania Liquor Store shall keep in stock for sale
    23  such classes, varieties and brands of liquor and alcohol as the
    24  board shall prescribe. Every Pennsylvania Liquor Store shall be
    25  authorized to sell combination packages. If any person shall
    26  desire to purchase any class, variety or brand of liquor or
    27  alcohol which any such store does not have in stock, it shall be
    28  the duty of such store immediately to order the same upon the
    29  payment of a reasonable deposit by the purchaser in such
    30  proportion of the approximate cost of the order as shall be
    20010H1519B3160                  - 5 -

     1  prescribed by the regulations of the board. No purchaser may be
     2  required to purchase more than two bottles or containers of the
     3  product, provided that such product is available through the
     4  State store system. The customer shall be notified immediately
     5  upon the arrival of the goods.
     6     In computing the retail price of such special orders for
     7  liquor or alcohol, the board shall not include the cost of
     8  freight or shipping before applying the mark-up and taxes but
     9  shall add the freight or shipping charges to the price after the
    10  mark-up and taxes have been applied.
    11     Unless the customer pays for and accepts delivery of any such
    12  special order within ten days after notice of arrival, the store
    13  may place it in stock for general sale and the customer's
    14  deposit shall be forfeited.
    15     * * *
    16     Section 4.  Section 403(a) of the act, amended December 21,
    17  1998 (P.L.1202, No.155), is amended to read:
    18     Section 403.  Applications for Hotel, Restaurant and Club
    19  Liquor Licenses.--(a)  Every applicant for a hotel liquor
    20  license, restaurant liquor license or club liquor license or for
    21  the transfer of an existing license to another premises not then
    22  licensed or to another person shall file a written application
    23  with the board in such form and containing such information as
    24  the board shall from time to time prescribe, which shall be
    25  accompanied by a filing fee and an annual license fee as
    26  prescribed in section 614-A of the act of April 9, 1929
    27  (P.L.177, No.175), known as "The Administrative Code of 1929."
    28  Every such application shall contain a description of that part
    29  of the hotel, restaurant or club for which the applicant desires
    30  a license and shall set forth such other material information,
    20010H1519B3160                  - 6 -

     1  description or plan of that part of the hotel, restaurant or
     2  club where it is proposed to keep and sell liquor as may be
     3  required by the regulations of the board. The descriptions,
     4  information and plans referred to in this subsection shall show
     5  the hotel, restaurant, club, or the proposed location for the
     6  construction of a hotel, restaurant or club, at the time the
     7  application is made, and shall show any alterations proposed to
     8  be made thereto, or the new building proposed to be constructed
     9  after the approval by the board of the application for a license
    10  or for the transfer of an existing license to another premises
    11  not then licensed or to another person. No physical alterations,
    12  improvements or changes shall be required to be made to any
    13  hotel, restaurant or club, nor shall any new building for any
    14  such purpose, be required to be constructed until approval of
    15  the application for license or for the transfer of an existing
    16  license to another premises not then licensed or to another
    17  person by the board. After approval of the application, the
    18  licensee shall make the physical alterations, improvements and
    19  changes to the licensed premises, or shall construct the new
    20  building in the manner specified by the board at the time of
    21  approval, and the licensee shall not transact any business under
    22  the license until the board has approved the completed physical
    23  alterations, improvements and changes to the licensed premises,
    24  or the completed construction of the new building as conforming
    25  to the specifications required by the board at the time of
    26  issuance or transfer of the license, and is satisfied that the
    27  establishment is a restaurant, hotel or club as defined by this
    28  act. The board may require that all such alterations or
    29  construction or conformity to definition be completed within six
    30  months from the time of issuance or transfer of the license.
    20010H1519B3160                  - 7 -

     1  Failure to comply with these requirements shall be considered
     2  cause for revocation of the license. No such license shall be
     3  transferable between the time of issuance or transfer of the
     4  license and the approval of the completed alterations or
     5  construction by the board and full compliance by the licensee
     6  with the requirements of this act, except in the case of death
     7  of the licensee prior to full compliance with all of the
     8  aforementioned requirements, unless full compliance is
     9  impossible for reasons beyond the licensee's control, in which
    10  event, the license may be transferred by the board as provided
    11  in this act.
    12     * * *
    13     Section 5.  Section 408.4(a) of the act, amended November 10,
    14  1999 (P.L.514, No.47), is amended to read:
    15     Section 408.4.  Special Occasion Permits.--(a)  Upon
    16  application of any hospital, church, synagogue, volunteer fire
    17  company, volunteer ambulance company, volunteer rescue squad,
    18  nonprofit organization as defined under section 501(c)(3) of the
    19  Internal Revenue code of 1986 (Public Law 99-514, 26 U.S.C. §
    20  501(c)(3)) whose purpose is to protect the architectural
    21  heritage of boroughs, and which has been recognized as such by a
    22  municipal resolution, unit of a nationally chartered club which
    23  has been issued a club liquor license, nonprofit agricultural
    24  association in existence for at least ten years, bona fide
    25  sportsmen's club in existence for at least ten years, nationally
    26  chartered veterans' organization and any affiliated lodge or
    27  subdivision of such organization, fraternal benefit society that
    28  is licensed to do business in this Commonwealth and any
    29  affiliated lodge or subdivision of such fraternal benefit
    30  society, or one auxiliary of any of the foregoing, and upon
    20010H1519B3160                  - 8 -

     1  payment of the prescribed fee for special occasion permits under
     2  section 614-A of the act of April 9, 1929 (P.L.177, No.175),
     3  known as "The Administrative Code of 1929," the board shall
     4  issue a special occasion permit good for a period of not more
     5  than six consecutive or nonconsecutive days during a calendar
     6  year. Special occasion permits may also be issued to a museum
     7  operated by a nonprofit corporation in a city of the third class
     8  or township of the first class or a nonprofit corporation
     9  engaged in the performing arts in a city of the third class or
    10  in an incorporated town or to an arts council or to a nonprofit
    11  corporation that operates an arts facility or museum in a city
    12  of the third class in a county of the fourth class for a period
    13  of not more than six nonconsecutive or ten consecutive days at
    14  the prescribed fee for special occasion permits under section
    15  614-A of "The Administrative Code of 1929."
    16     * * *
    17     Section 6.  Sections 412(b), (d), (e) and (f) and 413(d), (e)
    18  and (g) of the act, added December 20, 2000 (P.L.992, No.141),
    19  are amended to read:
    20     Section 412.  Public Venue License.--* * *
    21     (b)  An application for a restaurant liquor license under
    22  this section may be made by the owner of the public venue, [a
    23  nonprofit corporation operating] the operator of the public
    24  venue or by a concessionaire designated by the governing body of
    25  either the owner of the public venue or the [nonprofit
    26  corporation] operator. The application and issuance of the
    27  license is subject to sections 403 and 404 unless otherwise
    28  stated. The licensing period shall be as set forth by the board
    29  under section 402. The application, renewal and filing fees
    30  shall be as prescribed in section 614-A(25) of the act of April
    20010H1519B3160                  - 9 -

     1  9, 1929 (P.L.177, No.175), known as "The Administrative Code of
     2  1929." [For the purposes of this section, a nonprofit
     3  corporation is an entity incorporated under the nonprofit
     4  corporation laws for the purpose of benefiting the public and
     5  not for the purpose of benefiting its members.]
     6     * * *
     7     (d)  Licenses under this section shall expire upon: (1)
     8  revocation by an administrative law judge under section 471; (2)
     9  nonrenewal by the board under section 470; (3) nonrenewal of the
    10  license by the license holder; (4) termination of the contract
    11  between the owner of the public venue and its concessionaire; or
    12  (5) termination of the contract between [a nonprofit
    13  corporation] an operator and its concessionaire.
    14     * * *
    15     (e)  The board may issue a license under this section at any
    16  time to a new applicant even if the previous license had: (1)
    17  been revoked by an administrative law judge under section 471;
    18  (2) not been renewed by the board under section 470; (3) not
    19  been renewed by the license holder; (4) expired because of the
    20  termination of the contract between the owner of the public
    21  venue and its concessionaire; or (5) expired because of the
    22  termination of the contract between [the nonprofit corporation]
    23  an operator and its concessionaire.
    24     (f)  Licenses issued under this section are to be considered
    25  restaurant liquor licenses. However, the following additional
    26  restrictions and privileges apply:
    27     (1)  Sales may only be made one hour before, during and one
    28  hour after any athletic performance, performing arts event,
    29  trade show, convention, banquet or any other performance at the
    30  facility; however, sales may not be made from two o'clock
    20010H1519B3160                 - 10 -

     1  antemeridian to seven o'clock antemeridian. In addition, sales
     2  may not occur prior to eleven o'clock antemeridian on Sundays or
     3  seven o'clock antemeridian on Mondays. Notwithstanding this
     4  section, facilities that had been licensed under former sections
     5  408.9 and 408.14 may sell liquor and/or malt or brewed beverages
     6  anytime except from two o'clock antemeridian to seven o'clock
     7  antemeridian or prior to eleven o'clock antemeridian on Sundays
     8  or seven o'clock antemeridian on Mondays, regardless of whether
     9  there is a performance at the facility.
    10     (2)  Sales of alcoholic beverages before, during and after
    11  all professional and amateur athletic events on the premises
    12  shall be limited to sales of malt or brewed beverages in
    13  shatterproof containers. Sales of alcoholic beverages before,
    14  during and after performing arts events or other entertainment
    15  events may consist of liquor or malt or brewed beverages in
    16  shatterproof containers. Sales during trade shows, conventions,
    17  banquets or at other events, or sales made in the club seats or
    18  at a restaurant facility, may consist of liquor or malt or
    19  brewed beverages in any type of container; however, any liquor
    20  or malt or brewed beverages sold in the club seats or restaurant
    21  facility must remain in the club seating level or restaurant
    22  facility. For purposes of this section, a club seat is any
    23  seating located on the designated club seating level and
    24  partitioned from general seating by a wall, divider, partial
    25  wall or railing. The club seating level must not be accessible
    26  by the general public. The board's records shall clearly
    27  delineate where the sale of liquor or malt or brewed beverages
    28  in any type of container may occur.
    29     (3)  Sales of malt or brewed beverages for off-premises
    30  consumption are prohibited.
    20010H1519B3160                 - 11 -

     1     (4)  Licenses issued under this section shall not be subject
     2  to: (i) the proximity provisions of sections 402 and 404; (ii)
     3  the quota restrictions of section 461; [(iii) the provisions of
     4  section 463;] (iv) the provisions of section 493(10) except as
     5  they relate to lewd, immoral or improper entertainment; and (v)
     6  the prohibition against minors frequenting as described in
     7  section 493(14). In addition, licenses issued under this section
     8  shall not be subject to the provisions defining "restaurant" in
     9  section 102.
    10     Section 413.  Performing Arts Facility License.--* * *
    11     (d)  Licenses under this section shall expire upon: (1)
    12  revocation by an administrative law judge under section 471; (2)
    13  nonrenewal by the board under section 470; (3) nonrenewal of the
    14  license by the license holder; or (4) termination of the
    15  contract between the [owner] operator of the [public venue]
    16  performing arts facilities and its concessionaire[; or (5)
    17  termination of the contract between a corporation and its
    18  concessionaire].
    19     (e)  The board may issue a license under this section at any
    20  time to a new applicant even if the previous license had: (1)
    21  been revoked by an administrative law judge under section 471;
    22  (2) not been renewed by the board under section 470; (3) not
    23  been renewed by the license holder; or (4) expired because of
    24  the termination of the contract between the [owner] operator of
    25  the [public venue] performing arts facilities and its
    26  concessionaire[; or (5) expired because of the termination of
    27  the contract between the corporation and its concessionaire].
    28     * * *
    29     (g)  Licenses issued under this section shall not be subject
    30  to: (1) the proximity provisions of sections 402 and 404; (2)
    20010H1519B3160                 - 12 -

     1  the quota restrictions of section 461; [(3) the provisions of
     2  section 463;] (4) the provisions of section 493(10) except as
     3  they relate to lewd, immoral or improper entertainment; and (5)
     4  the prohibitions against minors frequenting as described in
     5  section 493(14). In addition, licenses issued under this section
     6  shall not be subject to the provisions defining "restaurant" in
     7  section 102.
     8     * * *
     9     Section 7.  The act is amended by adding a section SECTIONS    <--
    10  to read:
    11     SECTION 414.  CONTINUING CARE RETIREMENT COMMUNITY RETAIL      <--
    12  LICENSES.--(A)  THE BOARD IS AUTHORIZED TO ISSUE A RESTAURANT
    13  LIQUOR LICENSE TO A CONTINUING CARE RETIREMENT COMMUNITY AS THAT
    14  TERM IS DEFINED IN THIS ACT, OR ITS DESIGNATED CONCESSIONAIRE.
    15  THE LICENSING PERIOD SHALL BE ESTABLISHED UNDER SECTION 402. THE
    16  APPLICATION AND ISSUANCE OF THE LICENSE IS SUBJECT TO SECTIONS
    17  403 AND 404 UNLESS OTHERWISE STATED. THE APPLICATION, RENEWAL,
    18  AND FILING FEE, SHALL BE AS PRESCRIBED IN SECTION 614-A(1) OF
    19  THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS "THE
    20  ADMINISTRATIVE CODE OF 1929."
    21     (B)  LICENSES ISSUED UNDER THIS SECTION ARE RESTAURANT LIQUOR
    22  LICENSES FOR ALL PURPOSES EXCEPT AS PROVIDED HEREIN. HOWEVER,
    23  THE FOLLOWING ADDITIONAL RESTRICTIONS AND PRIVILEGES APPLY:
    24     (1)  LICENSES ISSUED UNDER THIS SECTION ARE NOT SUBJECT TO
    25  THE QUOTA RESTRICTIONS OF SECTION 461.
    26     (2)  SALES OF LIQUOR AND MALT OR BREWED BEVERAGES MAY NOT
    27  OCCUR FROM TWO O'CLOCK ANTEMERIDIAN TO SEVEN O'CLOCK
    28  ANTEMERIDIAN. IN ADDITION, SALES MAY NOT OCCUR PRIOR TO ONE
    29  O'CLOCK POSTMERIDIAN OR AFTER TEN O'CLOCK POSTMERIDIAN ON
    30  SUNDAY.
    20010H1519B3160                 - 13 -

     1     (3)  LIQUOR AND MALT OR BREWED BEVERAGES SOLD OR FURNISHED BY
     2  THE LICENSEE MAY BE POSSESSED ANYWHERE WITHIN THE CONTINUING
     3  CARE RETIREMENT COMMUNITY REGARDLESS OF WHETHER THAT PORTION OF
     4  THE PREMISES IS LICENSED. HOWEVER, NO LIQUOR OR MALT OR BREWED
     5  BEVERAGES SOLD OR FURNISHED BY THE LICENSEE MAY BE TAKEN BEYOND
     6  THE CONFINES OF THE CONTINUING CARE RETIREMENT COMMUNITY.
     7     (4)  SALES OF LIQUOR OR MALT OR BREWED BEVERAGES MAY OCCUR IN
     8  THOSE PORTIONS OF THE PREMISES LICENSED BY THE BOARD AS WELL AS
     9  IN ROOMS THAT ARE LIVED IN OR USED BY RESIDENTS OF THE
    10  CONTINUING CARE RETIREMENT COMMUNITY. SALES OF LIQUOR AND MALT
    11  OR BREWED BEVERAGES ARE LIMITED TO RESIDENTS OF THE CONTINUING
    12  CARE RETIREMENT COMMUNITY, EMPLOYES OF THE CONTINUING CARE
    13  RETIREMENT COMMUNITY AND THE GUESTS OF RESIDENTS AND EMPLOYES.
    14     (5)  LICENSES ISSUED UNDER THIS SECTION ARE NOT SUBJECT TO
    15  THE PROVISIONS DEFINING "RESTAURANT" IN SECTION 102.
    16     (C)  LICENSES ISSUED UNDER THIS SECTION ARE NONTRANSFERABLE
    17  AND IF ISSUED TO A CONCESSIONAIRE SHALL EXPIRE UPON THE
    18  TERMINATION OF THE CONTRACT BETWEEN THE CONTINUING CARE
    19  RETIREMENT COMMUNITY AND THE CONCESSIONAIRE.
    20     (D)  THE BOARD MAY ISSUE AN EATING PLACE RETAIL DISPENSER
    21  LICENSE TO A CONTINUING CARE RETIREMENT COMMUNITY LOCATED IN A
    22  MUNICIPALITY THAT HAS VOTED TO ALLOW THE ISSUANCE OF EATING
    23  PLACE RETAIL DISPENSER LICENSES BUT HAS NOT VOTED TO ALLOW THE
    24  ISSUANCE OF RESTAURANT LIQUOR LICENSES.
    25     Section 431.1.  Malt and Brewed Beverages Alternating
    26  Brewers' Licenses.--(a)  The board shall be authorized to issue
    27  an alternating brewer's license to qualified entities. In order
    28  to qualify for the alternating brewer's license, the applicant
    29  must demonstrate that it holds a Federal brewer's notice
    30  registration issued for a premises within this Commonwealth and
    20010H1519B3160                 - 14 -

     1  meet all the qualifications imposed on the holder of a malt and
     2  brewed beverage manufacturer's license.
     3     (b)  The holder of an alternating brewer's license shall have
     4  all the rights and be subject to the same conditions and
     5  qualifications as those imposed on holders of a malt or brewed
     6  beverage manufacturer's license except as set forth in this
     7  section.
     8     (c)  The holder of an alternating brewer's license is not
     9  required to maintain separate manufacturing premises; rather,
    10  the alternating brewer's license shall be valid at premises that
    11  are licensed by another entity under a Pennsylvania
    12  manufacturer's license. The holder of an alternating brewer's
    13  license shall not be entitled to the limited tax credit
    14  available under section 2010 of the act of March 4, 1971 (P.L.6,
    15  No.2), known as the "Tax Reform Code of 1971."
    16     (d)  Malt and brewed beverages manufactured under the
    17  authority of an alternating brewer's license must be distributed
    18  in this Commonwealth only through specific importing
    19  distributors who shall first have been given distributor rights
    20  for such products in designated geographical areas through the
    21  distribution system required for out-of-State manufacturers
    22  under section 431(b) as well as all other pertinent sections of
    23  this act. The alternating brewer must comply with section 444.
    24     (e)  The application, renewal and filing fees for a malt and
    25  brewed beverages alternating brewer's license shall be as
    26  prescribed in section 614-A(10) of the act of April 9, 1929
    27  (P.L.177, No.175), known as "The Administrative Code of 1929."
    28     Section 8.  Section 436(b) of the act, amended April 29, 1994
    29  (P.L.212, No.30), is amended to read:
    30     Section 436.  Application for Distributors', Importing
    20010H1519B3160                 - 15 -

     1  Distributors' and Retail Dispensers' Licenses.--Application for
     2  distributors', importing distributors' and retail dispensers'
     3  licenses, or for the transfer of an existing license to another
     4  premises not then licensed, shall contain or have attached
     5  thereto the following information and statements:
     6     * * *
     7     (b)  The particular place for which the license is desired
     8  and a detailed description thereof. The description, information
     9  and plans referred to in this subsection shall show the premises
    10  or the proposed location for the construction of the premises at
    11  the time the application is made, and shall show any alterations
    12  proposed to be made thereto, or the new building proposed to be
    13  constructed after the approval by the board of the application
    14  for a license, or for the transfer of an existing license to
    15  another premises not then licensed or to another person. No
    16  physical alterations, improvements or changes shall be required
    17  to be made to any hotel, eating place or club, nor shall any new
    18  building for any such purpose be required to be constructed
    19  until approval of the application for license or for the
    20  transfer of an existing license to another premises not then
    21  licensed or to another person by the board. After approval of
    22  the application, the licensee shall make the physical
    23  alterations, improvements and changes to the licensed premises,
    24  or shall construct the new building in the manner specified by
    25  the board at the time of approval. The licensee shall not
    26  transact any business under the license until the board has
    27  approved the completed physical alterations, improvements and
    28  changes of the licensed premises or the completed construction
    29  of the new building as conforming to the specifications required
    30  by the board at the time of issuance or transfer of the license
    20010H1519B3160                 - 16 -

     1  and is satisfied that the premises meet the requirements for a
     2  distributor's or importing distributor's license as set forth in
     3  this act or that the establishment is an eating place, hotel or
     4  club as defined by this act. The board may require that all such
     5  alterations or construction or conformity to definition be
     6  completed within six months from the time of issuance or
     7  transfer of the license. Failure to comply with these
     8  requirements shall be considered cause for revocation of the
     9  license. No such license shall be transferable between the time
    10  of issuance or transfer of the license and the approval of the
    11  completed alterations or construction by the board and full
    12  compliance by the licensee with the requirements of this act,
    13  except in the case of death of the licensee prior to full
    14  compliance with all of the aforementioned requirements, unless
    15  full compliance is impossible for reasons beyond the licensee's
    16  control, in which event the license may be transferred by the
    17  board as provided in this act.
    18     Section 9.  Section 461(a), (b.1), (b.2), (b.3) and (e.1),
    19  amended or added December 20, 2000 (P.L.992, No.141), are
    20  amended to read:
    21     Section 461.  Limiting Number of Retail Licenses To Be Issued
    22  In Each County.--(a)  No additional restaurant, eating place
    23  retail dispenser or club licenses shall be issued within a
    24  county if the total number of restaurant and eating place retail
    25  dispenser licenses is greater than one license for each three
    26  thousand inhabitants in the county, except the board may issue
    27  licenses to public venues, performing arts facilities,
    28  CONTINUING CARE RETIREMENT COMMUNITIES, airport restaurants,      <--
    29  municipal golf courses, hotels, privately-owned private golf
    30  courses, privately-owned public golf courses, racetracks,
    20010H1519B3160                 - 17 -

     1  automobile racetracks, nonprimary pari-mutuel wagering locations
     2  and to any other entity which this act specifically exempts from
     3  the limitations provided in this section, and the board may
     4  issue a license to a club situated in a borough having a
     5  population less than eight thousand inhabitants which is located
     6  in a county of the second class A whose application is filed on
     7  or before February 28, 2001. In addition, the board may issue an
     8  eating place retail dispenser license for on-premises sales only
     9  to the owner or operator of a facility having a minimum of a
    10  one-half mile asphalt track and having a permanent seating
    11  capacity of at least six thousand people used principally for
    12  holding automobile races, regardless of the number of restaurant
    13  and eating place retail dispenser licenses already issued in
    14  that county. When determining the number of restaurant and
    15  eating place retail dispenser licenses issued in a county for
    16  the purposes of this section, licenses exempted from this
    17  limitation and club licenses shall not be considered.
    18  Inhabitants of dry municipalities shall be considered when
    19  determining the population in a county. Licenses shall not be
    20  issued or transferred into municipalities where such licenses
    21  are prohibited pursuant to local referendum in accordance with
    22  section 472. Licenses approved for intermunicipal transfer may
    23  not be transferred from the receiving municipality for a period
    24  of five years after the date that the licensed premises are
    25  operational in the receiving municipality.
    26     (b.1)  The board may issue restaurant and eating place retail
    27  dispenser licenses and renew licenses issued under this
    28  subsection without regard to the quota restrictions set forth in
    29  subsection (a) for the purpose of economic development in a
    30  municipality under the following conditions:
    20010H1519B3160                 - 18 -

     1     (1)  A license may only be issued under this subsection if
     2  the applicant has exhausted reasonable means for obtaining a
     3  suitable license within the county.
     4     (2)  The proposed licensed premises must be located within
     5  either of the following:
     6     (i)  A keystone opportunity zone established under the
     7  authority of the act of October 6, 1998 (P.L.705, No.92), known
     8  as the ["Pennsylvania Keystone Opportunity Zone Act,"] "Keystone
     9  Opportunity Zone and Keystone Opportunity Expansion Zone Act,"
    10  or an area designated as an enterprise zone by the Department of
    11  Community and Economic Development.
    12     (ii)  A municipality in which the issuance of a restaurant or
    13  eating place retail dispenser license has been approved by the
    14  governing body of the municipality for the purpose of local
    15  economic development. Upon request for approval of an economic
    16  development license by an applicant, at least one public hearing
    17  shall be held by the municipal governing body for the purpose of
    18  receiving comments and recommendations of interested individuals
    19  residing within the municipality concerning the applicant's
    20  intent to acquire an economic development license from the
    21  Pennsylvania Liquor Control Board. The governing body shall,
    22  within forty-five days of a request for approval, render a
    23  decision by ordinance or resolution to approve or disapprove the
    24  applicant's request for an economic development license. [The
    25  municipality must approve the request unless it finds that doing
    26  so] If the municipality finds that the issuance of the license
    27  would promote economic development it may approve the request;
    28  however, it must refuse the request if it finds that approval of
    29  the request would adversely affect the welfare, health, peace
    30  and morals of the municipality or its residents. A decision by
    20010H1519B3160                 - 19 -

     1  the governing body of the municipality to deny the request may
     2  be appealed to the court of common pleas in the county in which
     3  the municipality is located. A copy of the approval must be
     4  submitted with the license application.
     5     (3)  The board may issue no more than two licenses total in
     6  each county of the first through fourth class and no more than
     7  one license total in each county of the fifth through eighth
     8  class per calendar year.
     9     (4)  An applicant under this subsection shall be required to
    10  sell food and nonalcoholic beverages equal to seventy per centum
    11  (70%) or more of its combined gross sales of food and alcoholic
    12  beverages.
    13     (5)  In addition to renewal and license fees provided under
    14  existing law for the type of license issued, an applicant shall
    15  be required to pay an initial application surcharge as follows:
    16     (i)  Fifty thousand dollars ($50,000) if the licensed
    17  premises is located in a county of the first through fourth
    18  class.
    19     (ii)  Twenty-five thousand dollars ($25,000) if the licensed
    20  premises is located in a county of the fifth through eighth
    21  class.
    22     (iii)  The initial application surcharge minus a seven
    23  hundred dollar ($700) processing fee shall be refunded to the
    24  applicant if the board refuses to issue a provisional license
    25  under subsection (b.2). Otherwise, the initial application
    26  surcharge minus a seven hundred dollar ($700) processing fee
    27  shall be credited to The State Stores Fund. The processing fee
    28  shall be treated as an application filing fee as prescribed in
    29  section 614(A)(1)(i) of the act of April 9, 1929 (P.L.177,
    30  No.175), known as "The Administrative Code of 1929."
    20010H1519B3160                 - 20 -

     1     (6)  A license issued under this subsection and a provisional
     2  license issued under subsection (b.2) shall be nontransferable
     3  with regard to ownership or location.
     4     (7)  An appeal of the board's decision refusing to grant or
     5  renew a license under this subsection shall not act as a
     6  supersedeas of the decision of the board if the decision is
     7  based, in whole or in part, on the licensee's failure to
     8  demonstrate that its food and nonalcoholic beverages were at
     9  least seventy per centum (70%) of its combined gross sales of
    10  food and alcoholic beverages.
    11     (8)  A license issued under this subsection may not be
    12  validated or renewed unless the licensee can establish that its
    13  sale of food and nonalcoholic beverages during the license year
    14  immediately preceding application for validation or renewal is
    15  equal to seventy per centum (70%) or more of its food and
    16  alcoholic beverage sales.
    17     (b.2)  Qualified applicants under subsection [(b)] (b.1)
    18  shall receive a provisional license for one hundred twenty days,
    19  exclusive of periods of safekeeping. After ninety days from the
    20  date of issuance, the licensee may file an application for a
    21  permanent license. A license shall be issued if the licensee
    22  establishes that for ninety consecutive days from the date of
    23  initial issue its sales of food and nonalcoholic beverages is
    24  equal to at least seventy per centum (70%) of its combined gross
    25  sales of food and alcoholic beverages. Licensees shall not be
    26  subject to citation by the Enforcement Bureau for a violation of
    27  the requirement that food and nonalcoholic beverages equal at
    28  least seventy per centum (70%) of the combined gross sales of
    29  food and alcoholic beverages during the provisional licensing
    30  period.
    20010H1519B3160                 - 21 -

     1     (b.3)  An intermunicipal transfer of a license or issuance of
     2  a license for economic development under subsection (b.1)(2)(i)
     3  must first be approved by the governing body of the receiving
     4  municipality when the total number of existing restaurant liquor
     5  licenses and eating place retail dispenser licenses in the
     6  receiving municipality exceed one license per three thousand
     7  inhabitants. Upon request for approval of an intermunicipal
     8  transfer of a license or issuance of an economic development
     9  license by an applicant, at least one public hearing shall be
    10  held by the municipal governing body for the purpose of
    11  receiving comments and recommendations of interested individuals
    12  residing within the municipality concerning the applicant's
    13  intent to transfer a license into the municipality or acquire an
    14  economic development license from the Pennsylvania Liquor
    15  Control Board. The governing body shall, within forty-five days
    16  of a request for approval, render a decision by ordinance or
    17  resolution to approve or disapprove the applicant's request for
    18  an intermunicipal transfer of a license or issuance of an
    19  economic development license. The municipality must approve the
    20  request unless it finds that doing so would adversely affect the
    21  welfare, health, peace and morals of the municipality or its
    22  residents. A decision by the governing body of the municipality
    23  to deny the request may be appealed to the court of common pleas
    24  in the county in which the municipality is located. A copy of
    25  the approval must be submitted with the license application.
    26     * * *
    27     (e.1)  "Privately-owned public golf course" as used in this
    28  section shall mean the restaurant facilities at any privately-
    29  owned golf course open for public accommodation. The license may
    30  be issued to the operator of the privately-owned public golf
    20010H1519B3160                 - 22 -

     1  course. The license holder may designate a concessionaire to
     2  provide food, alcoholic beverage and non-alcoholic beverage
     3  service at the restaurant facility.
     4     * * *
     5     Section 10.  Section 463 of the act, amended May 31, 1990
     6  (P.L.224, No.48) and December 20, 2000 (P.L.992, No.141), is
     7  amended to read:
     8     [Section 463.  Places of Amusement Not To Be Licensed;
     9  Penalty.--(a)  No license for the sale of liquor or malt or
    10  brewed beverages in any quantity shall be granted to the
    11  proprietors, lessees, keepers or managers of any theater,
    12  circus, museum or other place of amusement, nor shall any house
    13  be licensed for the sale of liquor or malt or brewed beverages
    14  which has passage or communication to or with any theater,
    15  circus, museum or other place of amusement, and any license
    16  granted contrary to this act shall be null and void. Nothing
    17  contained in this section shall be construed as denying to the
    18  board the right to grant a restaurant liquor license regardless
    19  of quota restrictions to the owner or operator of:
    20     (1)  a racetrack as defined in section 102 of this act;
    21     (2)  a nonprimary pari-mutuel wagering location as defined in
    22  section 102 of this act; or
    23     (3)  a restaurant in a building on a plot of ground owned or
    24  possessed under lease by a corporation incorporated under the
    25  laws of this Commonwealth and used principally by such
    26  corporation for holding outdoor sport events wherein such events
    27  are held under a license issued as provided by law to such
    28  corporation by a department, board or commission of the
    29  Commonwealth of Pennsylvania.
    30  The restaurant liquor license aforementioned shall be subject to
    20010H1519B3160                 - 23 -

     1  all the conditions and restrictions herein applicable to
     2  restaurant liquor licenses, except the above prohibition against
     3  any passageway or communication between such licensed premises
     4  and the place of amusement, and except that nothing contained in
     5  this act shall be construed to prohibit the licensed nonprimary
     6  pari-mutuel wagering location or the racetrack from providing
     7  wagering within the entire licensed premises of the nonprimary
     8  pari-mutuel wagering location or the racetrack, and a restaurant
     9  liquor license issued for a nonprimary pari-mutuel wagering
    10  location or a restaurant liquor license issued for a racetrack
    11  issued subsequent to the enactment of this amendment shall not
    12  be transferable.
    13     Nothing contained in this act shall be construed as denying
    14  to the board the right to grant a new restaurant liquor license,
    15  regardless of quota restrictions, at any time, to the owner or
    16  operator of a restaurant in a building or plot of ground having
    17  a seating capacity in excess of twenty-five thousand, used
    18  principally for holding automobile races.
    19     (a.1)  Nothing contained in subsection (a) of this section or
    20  in section 102 of this act shall be construed as denying to the
    21  board the right to grant a club or restaurant liquor or malt and
    22  brewed beverage license to a club incorporated in this
    23  Commonwealth which has been in existence less than one year
    24  prior to making application under this section or to a
    25  restaurant either of which has a clubhouse or restaurant located
    26  in a stadium or arena having an available seating capacity of
    27  twelve thousand or more and owned and operated by or pursuant to
    28  an agreement with any city of the first class or created and
    29  operated under and in compliance with the act of July 29, 1953
    30  (P.L.1034), known as the "Public Auditorium Authorities Law,"
    20010H1519B3160                 - 24 -

     1  and used principally for events at which athletes compete or
     2  other types of performers entertain. The club or restaurant
     3  liquor or malt and brewed beverage license aforementioned shall
     4  be subject to all the conditions and restrictions applicable to
     5  such licenses and licenses for places of amusement, except the
     6  above prohibition against any passageway or communication
     7  between such licensed premises and the place of amusement.
     8     (a.2)  Nothing contained in this act shall be construed to
     9  prevent the holder of a hotel, restaurant liquor or malt and
    10  brewed beverage license from selling liquor and malt or brewed
    11  beverages in a bowling alley, or other recreational areas
    12  including, but no limited to, game rooms and video arcade areas
    13  of hotels, when no minors are present, unless minors who are
    14  present are under proper supervision as defined in section 493,
    15  where the restaurant, bowling alley, or other recreational areas
    16  including, but not limited to, game rooms and video arcade areas
    17  of hotels are immediately adjacent and under the same roof. The
    18  restaurant liquor or malt and brewed beverage licensee
    19  aforementioned shall be subject to all the conditions and
    20  restrictions applicable to such restaurant licenses except the
    21  above prohibition against any passageway or communication
    22  between a licensed premise and a place of amusement.
    23     (a.3)  Nothing contained in subsection (a) or in section 102
    24  shall be construed as denying to the board the right to grant a
    25  new retail dispenser license for on-premises sales only,
    26  regardless of quota restrictions, to the owner or operator of a
    27  facility having a minimum of a one-half mile asphalt track and
    28  having a permanent seating capacity of at least six thousand
    29  used principally for holding automobile races.
    30     (b)  Any proprietor, lessee, keeper or manager of any
    20010H1519B3160                 - 25 -

     1  theater, circus, museum or other place of amusement, or any
     2  other person who shall violate the provisions of this section,
     3  shall be guilty of a misdemeanor and, upon conviction thereof,
     4  shall be sentenced to pay a fine of one hundred dollars and to
     5  undergo an imprisonment of not less than thirty days.
     6     (c)  This section is not applicable to public venues or
     7  performing arts facilities licensed under sections 412 and 413.]
     8     Section 11.  Section 468(a) of the act is amended by adding a
     9  clause to read:
    10     Section 468.  Licenses Not Assignable; Transfers.--(a)  * * *
    11     (4)  In the event the license to be transferred has been
    12  ordered to serve a suspension under section 471, and has not
    13  served the suspension at the time the board considers the
    14  application and all appeals regarding the suspension have been
    15  exhausted, the board may require the transferee to serve the
    16  suspension as a condition for approval of the transfer. Further,
    17  the board may convert the outstanding suspension into a fine and
    18  require the transferee to pay the fine as a condition for
    19  approval of the transfer. If the board converts the outstanding
    20  suspension to a fine, the fine need not comply with the minimum
    21  and maximum amounts set forth in section 471 for the underlying
    22  citation.
    23     * * *
    24     Section 12.  Section 471(b) and (c) of the act, amended
    25  December 20, 2000 (P.L.992, No.141), are amended to read:
    26     Section 471.  Revocation and Suspension of Licenses; Fines.--
    27  * * *
    28     (b)  Hearing on such citations shall be held in the same
    29  manner as provided herein for hearings on applications for
    30  license. Upon such hearing, if satisfied that any such violation
    20010H1519B3160                 - 26 -

     1  has occurred or for other sufficient cause, the administrative
     2  law judge shall immediately suspend or revoke the license, or
     3  impose a fine of not less than fifty dollars ($50) nor more than
     4  one thousand dollars ($1,000), or both, notifying the licensee
     5  by registered letter addressed to his licensed premises. If the
     6  licensee has been cited and found to have violated section
     7  493(1) insofar as it relates to sales to minors or sales to a
     8  visibly intoxicated person, section 493(10) insofar as it
     9  relates to lewd, immoral or improper entertainment or section
    10  493(14), (16) or (21), or has been found to be a public nuisance
    11  pursuant to section 611, or if the owner or operator of the
    12  licensed premises or any authorized agent of the owner or
    13  operator has been convicted of any violation of the act of April
    14  14, 1972 (P.L.233, No.64), known as "The Controlled Substance,
    15  Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 5902
    16  (relating to prostitution and related offenses) or 6301
    17  (relating to corruption of minors), at or relating to the
    18  licensed premises, the administrative law judge shall
    19  immediately suspend or revoke the license, or impose a fine of
    20  not less than one thousand dollars ($1,000) nor more than five
    21  thousand dollars ($5,000), or both. However, if a licensee has
    22  been cited and found to have violated section 493(1) as it
    23  relates to sales to minors or sales to a visibly intoxicated
    24  person but at the time of the sale the licensee was in
    25  compliance with the requirements set forth in section 471.1 and
    26  the licensee had not sold to minors or visibly intoxicated
    27  persons in the previous four years, then the administrative law
    28  judge shall immediately suspend or revoke the license, or impose
    29  a fine of not less than fifty dollars ($50) nor more than one
    30  thousand dollars ($1,000), or both. The administrative law judge
    20010H1519B3160                 - 27 -

     1  shall notify the licensee by registered mail, addressed to the
     2  licensed premises, of such suspension, revocation or fine. In
     3  the event the fine is not paid within twenty days of the
     4  adjudication, the administrative law judge shall suspend or
     5  revoke the license, notifying the licensee by registered mail
     6  addressed to the licensed premises. Suspensions and revocations
     7  shall not go into effect until thirty days have elapsed from the
     8  date of the adjudication during which time the licensee may take
     9  an appeal as provided for in this act. Any licensee whose
    10  license is revoked shall be ineligible to have a license under
    11  this act until the expiration of three years from the date such
    12  license was revoked. In the event a license is revoked, no
    13  license shall be granted for the premises or transferred to the
    14  premises in which the said license was conducted for a period of
    15  at least one year after the date of the revocation of the
    16  license conducted in the said premises, except in cases where
    17  the licensee or a member of his immediate family is not the
    18  owner of the premises, in which case the board may, in its
    19  discretion, issue or transfer a license within the said year. In
    20  the event the bureau or the person who was fined or whose
    21  license was suspended or revoked shall feel aggrieved by the
    22  adjudication of the administrative law judge, there shall be a
    23  right to appeal to the board. The appeal shall be based solely
    24  on the record before the administrative law judge. [The board
    25  shall affirm the decision of the administrative law judge if it
    26  is based on substantial evidence; otherwise, the board shall
    27  reverse the decision of the administrative law judge.] The board
    28  shall only reverse the decision of the administrative law judge
    29  if the administrative law judge committed an error of law,
    30  abused its discretion or if its decision is not based on
    20010H1519B3160                 - 28 -

     1  substantial evidence. In the event the bureau or the person who
     2  was fined or whose license was suspended or revoked shall feel
     3  aggrieved by the decision of the board, there shall be a right
     4  to appeal to the court of common pleas in the same manner as
     5  herein provided for appeals from refusals to grant licenses.
     6  Each of the appeals shall act as a supersedeas unless, upon
     7  sufficient cause shown, the reviewing authority shall determine
     8  otherwise; however, if the licensee has been cited and found to
     9  have violated section 493(1) insofar as it relates to sales to
    10  minors or sales to a visibly intoxicated person, section 493(10)
    11  insofar as it relates to lewd, immoral or improper entertainment
    12  or section 493(14), (16) or (21), or has been found to be a
    13  public nuisance pursuant to section 611, or if the owner or
    14  operator of the licensed premises or any authorized agent of the
    15  owner or operator has been convicted of any violation of "The
    16  Controlled Substance, Drug, Device and Cosmetic Act," or of 18
    17  Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
    18  its appeal shall not act as a supersedeas unless the reviewing
    19  authority determines otherwise upon sufficient cause shown. In
    20  any hearing on an application for a supersedeas under this
    21  section, the reviewing authority may consider, in addition to
    22  other relevant evidence, documentary evidence, including records
    23  of the bureau, showing the prior history of citations, fines,
    24  suspensions or revocations against the licensee; and the
    25  reviewing authority may also consider, in addition to other
    26  relevant evidence, evidence of any recurrence of the unlawful
    27  activity occurring between the date of the citation which is the
    28  subject of the appeal and the date of the hearing. No penalty
    29  provided by this section shall be imposed for any violations
    30  provided for in this act unless the bureau notifies the licensee
    20010H1519B3160                 - 29 -

     1  of its nature within thirty days of the completion of the
     2  investigation.
     3     (c)  The administrative law judge may consider the licensee's
     4  prior citation history when imposing a penalty. If the violation
     5  in question is a third or subsequent violation of this act or
     6  Title 18 of the Pennsylvania Consolidated Statutes (relating to
     7  crimes and offenses), occurring within a period of four years,
     8  the administrative law judge shall impose a suspension or
     9  revocation.
    10     * * *
    11     Section 13.  Section 472(a) of the act, amended December 20,
    12  2000 (P.L.992, No.141), is amended and the section is amended by
    13  adding subsections to read:
    14     Section 472.  Local Option.--(a)  In any municipality or any
    15  part of a municipality where such municipality is split so that
    16  each part thereof is separated by another municipality, an
    17  election may be held, subject to subsection (c), on the date of
    18  the primary election immediately preceding any municipal
    19  election, but not oftener than once in four years, to determine
    20  the will of the electors with respect to the granting of liquor
    21  licenses to hotels, restaurants, resort facilities and clubs,
    22  not oftener than once in four years, to determine the will of
    23  the electors with respect to the granting of liquor licenses to
    24  public venues, to performing arts facilities, TO CONTINUING CARE  <--
    25  RETIREMENT COMMUNITIES, to hotels located on property owned by
    26  an accredited college or university, to privately-owned private
    27  golf courses or to privately-owned public golf courses, not
    28  oftener than once in four years, to determine the will of the
    29  electors with respect to the granting of licenses to retail
    30  dispensers of malt and brewed beverages, not oftener than once
    20010H1519B3160                 - 30 -

     1  in four years, to determine the will of the electors with
     2  respect to granting of licenses to wholesale distributors and
     3  importing distributors, not more than once in two years, to
     4  determine the will of the electors with respect to the granting
     5  of club liquor licenses or club retail dispenser licenses to
     6  incorporated units of national veterans' organizations, not
     7  oftener than once in two years to determine the will of the
     8  electors with respect to the granting of special occasion
     9  permits to qualified organizations, or not more than once in
    10  four years, to determine the will of the electors with respect
    11  to the establishment, operation and maintenance by the board of
    12  Pennsylvania liquor stores, within the limits of such
    13  municipality or part of a split municipality, under the
    14  provisions of this act: Provided, however, Where an election
    15  shall have been held at the primary preceding a municipal
    16  election in any year, another election may be held under the
    17  provisions of this act at the primary occurring the fourth year
    18  after such prior election: And provided further, That an
    19  election on the question of establishing and operating a State
    20  liquor store shall be initiated only in those municipalities, or
    21  that part of a split municipality that shall have voted against
    22  the granting of liquor licenses; and that an election on the
    23  question of granting wholesale distributor and importing
    24  distributor licenses shall be initiated only in those
    25  municipalities or parts of split municipalities that shall have
    26  at a previous election voted against the granting of dispenser's
    27  licenses. Whenever electors equal to at least twenty-five per
    28  centum of the highest vote cast for any office in the
    29  municipality or part of a split municipality at the last
    30  preceding general election shall file a petition with the county
    20010H1519B3160                 - 31 -

     1  board of elections of the county for a referendum on the
     2  question of granting any of said classes of licenses or the
     3  establishment of Pennsylvania liquor stores, the said county
     4  board of elections shall cause a question to be placed on the
     5  ballots or on the voting machine board and submitted at the
     6  primary immediately preceding the municipal election. Separate
     7  petitions must be filed for each question to be voted on. Said
     8  proceedings shall be in the manner and subject to the provisions
     9  of the election laws which relate to the signing, filing and
    10  adjudication of nomination petitions, insofar as such provisions
    11  are applicable.
    12     When the question is in respect to the granting of liquor
    13  licenses, it shall be in the following form:
    14     Do you favor the granting of liquor licenses
    15     for the sale of liquor in..........................  Yes
    16     of................................................?  No
    17     When the question is in respect to the granting of liquor
    18  licenses to resort facilities in those municipalities that do
    19  not already allow the retail sale of liquor, it shall be in the
    20  following form:
    21     Do you favor the granting of liquor licenses to resort
    22     facilities for the sale of liquor in the..........  Yes
    23     of...............................................?  No
    24     When the question is in respect to the granting of restaurant
    25  liquor licenses for use at public venues in those municipalities
    26  that do not already allow the retail sale of liquor, it shall be
    27  in the following form:
    28     Do you favor the granting of liquor licenses to public
    29     venues for the sale of liquor in the.............  Yes
    30     of..............................................?  No
    20010H1519B3160                 - 32 -

     1     When the question is in respect to the granting of restaurant
     2  liquor licenses for use at performing arts facilities in those
     3  municipalities that do not already allow the retail sale of
     4  alcohol, it shall be in the following form:
     5     Do you favor the granting of liquor licenses to
     6     performing arts facilities for the sale of liquor
     7     in the...........................................  Yes
     8     of..............................................?  No
     9     When the question is in respect to the granting of liquor
    10  licenses for hotels located on property owned by an accredited
    11  college or university in those municipalities that do not
    12  already allow the granting of liquor licenses, it shall be in
    13  the following form:
    14     Do you favor the granting of liquor licenses to hotels on
    15     property owned by an accredited college or university
    16     in the............................................  Yes
    17     of...............................................?  No
    18     When the question is in respect to the granting of liquor
    19  licenses, for privately-owned private golf courses, it shall be
    20  in the following form:
    21     Do you favor the granting of liquor licenses for
    22     privately-owned private golf courses for the sale
    23     of liquor in.................by..................  Yes
    24     of..............................................?  No
    25     When the question is in respect to the granting of liquor
    26  licenses, for privately-owned public golf courses, it shall be
    27  in the following form:
    28     Do you favor the granting of liquor licenses for
    29     privately-owned public golf courses for the sale
    30     of liquor in.................by..................  Yes
    20010H1519B3160                 - 33 -

     1     of..............................................?  No
     2     WHEN THE QUESTION IS IN RESPECT TO THE GRANTING OF LIQUOR      <--
     3  LICENSES TO CONTINUING CARE RETIREMENT COMMUNITIES IN THOSE
     4  MUNICIPALITIES THAT HAVE NOT ALREADY APPROVED THE GRANTING OF
     5  LIQUOR LICENSES, IT SHALL BE IN THE FOLLOWING FORM:
     6     DO YOU FAVOR THE GRANTING OF LIQUOR LICENSES FOR
     7     CONTINUING CARE RETIREMENT COMMUNITIES
     8     IN.................BY.........................   YES
     9     OF.............................................?  NO
    10     When the question is in respect to the granting of licenses
    11  to retail dispensers of malt and brewed beverages, it shall be
    12  in the following form:
    13     Do you favor the granting of malt and brewed
    14     beverage retail dispenser licenses for
    15     consumption on premises where sold in the........  Yes
    16     of..............................................?  No
    17     When the question is in respect to the granting of licenses
    18  to wholesale distributors of malt or brewed beverages and
    19  importing distributors, it shall be in the following form:
    20     Do you favor the granting of malt and brewed
    21     beverage wholesale distributor's and importing
    22     distributor's licenses not for consumption on
    23     premises where sold in the.......................  Yes
    24     of..............................................?  No
    25     When the question is in respect to the granting of club
    26  liquor licenses to incorporated units of national veterans'
    27  organizations, it shall be in the following form:
    28     Do you favor the granting of club liquor licenses
    29     to incorporated units of national veterans' organizations
    30     in the...........................................  Yes
    20010H1519B3160                 - 34 -

     1     of..............................................?  No
     2     When the question is in respect to the granting of club
     3  retail dispenser licenses to incorporated units of national
     4  veterans' organizations, it shall be in the following form:
     5     Do you favor the granting of club retail dispenser
     6     licenses to incorporated units of national veterans'
     7     organizations in the.............................  Yes
     8     of..............................................?  No
     9     When the question is in respect to the granting of special
    10  occasion permits allowing the sale of liquor by qualified
    11  organizations in municipalities that do not already allow the
    12  retail sale of liquor, it shall be in the following form:
    13     Do you favor the granting of special occasion permits to
    14     allow the sale of liquor by qualified organizations in
    15     the...............................................  Yes
    16     of...............................................?  No
    17     When the question is in respect to the granting of special
    18  occasion permits allowing the sale of malt or brewed beverages
    19  only by qualified organizations in municipalities that do not
    20  already allow the retail sale of malt or brewed beverages, it
    21  shall be in the following form:
    22     Do you favor the granting of special occasion permits to
    23     allow the sale of malt or brewed beverages only by qualified
    24     organizations in the..............................  Yes
    25     of...............................................?  No
    26     When the question is in respect to the establishment,
    27  operation and maintenance of Pennsylvania liquor stores it shall
    28  be in the following form:
    29     Do you favor the establishment, operation
    30     and maintenance of Pennsylvania liquor
    20010H1519B3160                 - 35 -

     1     stores in the....................................  Yes
     2     of..............................................?  No
     3     In case of a tie vote, the status quo shall obtain. If a
     4  majority of the voting electors on any such question vote "yes,"
     5  then liquor licenses shall be granted by the board to hotels,
     6  restaurants, resort facilities and clubs, or liquor licenses
     7  shall be granted by the board to public venues, to performing
     8  arts facilities, to hotels located on property owned by an
     9  accredited college or university, to privately-owned private
    10  golf courses or to privately-owned public golf courses, or malt
    11  and brewed beverage retail dispenser licenses or wholesale
    12  distributor's and importing distributor's license for the sale
    13  of malt or brewed beverages shall be granted by the board, or
    14  club liquor licenses or club retail dispenser licenses shall be
    15  granted by the board to incorporated units of national veterans'
    16  organizations, or special occasion permits may be issued to
    17  qualified organizations, or the board may establish, operate and
    18  maintain Pennsylvania liquor stores, as the case may be, in such
    19  municipality or part of a split municipality, as provided by
    20  this act; but if a majority of the electors voting on any such
    21  question vote "no," then the board shall have no power to grant
    22  or to renew upon their expiration any licenses of the class so
    23  voted upon in such municipality or part of a split municipality;
    24  or if the negative vote is on the question in respect to the
    25  establishment, operation and maintenance of Pennsylvania liquor
    26  stores, the board shall not open and operate a Pennsylvania
    27  liquor store in such municipality or part of a split
    28  municipality, nor continue to operate a then existing
    29  Pennsylvania liquor store in the municipality or part of a split
    30  municipality for more than two years thereafter or after the
    20010H1519B3160                 - 36 -

     1  expiration of the term of the lease on the premises occupied by
     2  such store, whichever period is less, unless and until at a
     3  later election a majority of the voting electors vote "yes" on
     4  such question.
     5     * * *
     6     (e)  An election may be held on the question of granting
     7  liquor licenses to resort facilities in municipalities that do
     8  not already allow the retail sale of liquor in section 472(a) at
     9  the primary election immediately following the effective date of
    10  this subsection, and at each subsequent primary election,
    11  notwithstanding any referendum frequency restriction in this act
    12  to the contrary.
    13     (f)  For purposes of this section, "resort facilities" shall
    14  mean any hotel, restaurant or club located on property owned by
    15  or contiguous to a convention center that offers skiing, golf,
    16  hiking and horseback riding. The convention center itself must
    17  be located on property at least two thousand acres in size. The
    18  property may be located in more than one municipality or county.
    19     Section 14.  Section 472.1 of the act is amended to read:
    20     Section 472.1.  Clubs.--(a)  Whenever any club in existence
    21  at least five years prior to the time of application for license
    22  owns a contiguous plot of land in more than two municipalities
    23  in one or more but less than all of which the granting of liquor
    24  licenses has not been prohibited and at least one acre of the
    25  plot of land owned by the club is situated in each municipality
    26  in which the granting of liquor licenses has not been
    27  prohibited, the club may be issued a club liquor license or a
    28  catering license by the board if the board finds that the
    29  license will not be detrimental to any residential neighborhood.
    30  This section shall not be construed to prohibit the issuance of
    20010H1519B3160                 - 37 -

     1  club liquor licenses or catering licenses which may otherwise be
     2  issued under the provisions of this act.
     3     (b)  Any club which holds a liquor license or a catering
     4  license under this section on the effective date of this
     5  subsection may, for a period of six (6) months from the
     6  effective date of this subsection, exchange such license for a
     7  restaurant liquor license. The restaurant liquor license shall
     8  be nontransferable and shall be issued to the club or
     9  concessionaire chosen by the club to operate the restaurant. A    <--
    10  RESTAURANT LIQUOR LICENSE ISSUED TO A CONCESSIONAIRE UNDER THIS
    11  SECTION SHALL BE IMMEDIATELY RESCINDED UPON THE TERMINATION OF
    12  THE CONTRACT BETWEEN THE CLUB AND THE CONCESSIONAIRE.
    13  NOTWITHSTANDING ANY OTHER PROVISIONS OF THE LAW, IF A RESTAURANT
    14  LIQUOR LICENSE ISSUED UNDER THIS SUBSECTION IS RESCINDED BECAUSE
    15  OF THE TERMINATION OF THE AGREEMENT BETWEEN THE CLUB AND THE
    16  CONCESSIONAIRE, THE BOARD MAY ISSUE A NEW RESTAURANT LICENSE TO
    17  THE CLUB OR ITS NEWLY DESIGNATED CONCESSIONAIRE, AT ANY TIME.
    18     Section 15.  Section 472.4 of the act, added December 7, 1990
    19  (P.L.622, No.160), is amended to read:
    20     [Section 472.4.  Privately-Owned Public Golf Courses.--(a)
    21  Any privately-owned public golf course licensee may, upon
    22  application to and the approval of the board, contract with a
    23  concessionaire to operate a restaurant or provide food service
    24  and, in the case of a restaurant liquor licensee, sell liquor
    25  and malt and brewed beverages or, in the case of a malt and
    26  brewed beverage dispenser licensee, sell malt and brewed
    27  beverages pursuant to the provisions of this act pertaining to
    28  such licensees.
    29     (b)  The board shall approve the application of any
    30  privately-owned public golf course licensee to contract with a
    20010H1519B3160                 - 38 -

     1  concessionaire pursuant to subsection (a) upon being satisfied
     2  that the concessionaire is of good repute and financially
     3  responsible.]
     4     Section 16.  Section 475 of the act is amended to read:
     5     [Section 475.  Establishments Proximate to Interstate
     6  Highways Not To Be Licensed.--(a)  No license for the sale of
     7  liquor or malt or brewed beverages in any quantity shall be
     8  granted to the proprietor, lessee, keeper or manager of an
     9  establishment the building entrance to which is located within
    10  three hundred feet of the entrance or exit of an interstate
    11  limited access highway.
    12     (b)  This section shall not apply to existing licenses, nor
    13  be deemed to affect the right of an existing licensee to
    14  reinstatement or renewal of his license.]
    15     Section 17.  Section 477 of the act is amended by adding a
    16  subsection to read:
    17     Section 477.  Applicants to Provide State Tax Identification
    18  Numbers and Statement of State Tax Status; Waiver of
    19  Confidentiality of Information in the Possession of the
    20  Department of Revenue and Other Departments; Review of State Tax
    21  Status.--* * *
    22     (g)  This section shall also be applicable to any management
    23  company utilized by the applicant.
    24     Section 18.  Article IV of the act is amended by adding a
    25  subdivision to read:
    26                      (C.1)  Shipment of Wine.
    27     Section 488.  Shipment of Wine into Commonwealth.--(a)  The
    28  shipment of wine from out-of-State to residents of this
    29  Commonwealth is prohibited, except as otherwise provided for in
    30  this section.
    20010H1519B3160                 - 39 -

     1     (b)  Notwithstanding any other provision of this act or law
     2  to the contrary, a person licensed by another state as a
     3  producer, supplier, importer, wholesaler, distributor or
     4  retailer of wine and who obtains a direct wine shipper license
     5  as provided for in this section may ship up to nine liters per
     6  month of any wine on the Internet order of any resident of this
     7  Commonwealth who is at least twenty-one years of age for such
     8  resident's personal use and not for resale.
     9     (c)  An out-of-State wine shipper shall:
    10     (1)  Not ship more than nine liters per month on the Internet
    11  order of any person in this Commonwealth.
    12     (2)  Not ship to any address in a municipality that has        <--
    13  adopted a local option referendum under section 472.
    14     (3) (2)  Report to the board each year the total of wine
    15  shipped into this Commonwealth in the preceding calendar year.
    16     (4) (3)  Permit the board or the Secretary of Revenue, or      <--
    17  their designated representatives, to perform an audit of the
    18  out-of-State wine shipper's records upon request.
    19     (5) (4)  Be deemed to have submitted to the jurisdiction of    <--
    20  the board, any other State agency and the courts of this
    21  Commonwealth for purposes of enforcement of this section and any
    22  related laws, rules or regulations.
    23     (d)  A direct shipper may ship wine on the Internet order of
    24  a resident into this Commonwealth provided that the wine is
    25  shipped to a Pennsylvania Liquor Store selected by the resident.  <--
    26  and the resident pays all taxes due on the wine at the time the   <--
    27  wine is picked up. THE WINE WILL BE SUBJECT TO TAXES IN THE SAME  <--
    28  MANNER AS WINE SOLD DIRECTLY BY THE BOARD. THE WINE WILL NOT BE
    29  RELEASED BY THE STATE STORE UNTIL ALL MONEYS DUE, INCLUDING ALL
    30  TAXES AND FEES, HAVE BEEN PAID BY THE RESIDENT.
    20010H1519B3160                 - 40 -

     1     (e)  A person shall sign an affidavit provided by the
     2  Pennsylvania Liquor Store where the wine was delivered to
     3  stating that the wine will only be used for the person's
     4  personal use. Any person who resells wine obtained under this
     5  section commits a misdemeanor of the second degree.
     6     (f)  The board may promulgate such rules and regulations as
     7  are necessary to implement and enforce the provisions of this
     8  section. THE BOARD MAY CHARGE THE RESIDENT A FEE TO COVER THE     <--
     9  COST ASSOCIATED WITH PROCESSING THE INTERNET ORDER.
    10     (g)  The term "wine" as used in this section shall mean
    11  liquor which is fermented from grapes and other fruits, having
    12  alcoholic content of twenty-four per centum or less. The term
    13  "wine" shall not include malt or brewed beverages, nor shall
    14  wine include any products containing alcohol derived from malt,
    15  grain, cereal, molasses or cactus.
    16     Section 19.  Section 491(2), (8) and (11) of the act are
    17  amended to read:
    18     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
    19  Liquor Licensees.--
    20     It shall be unlawful--
    21     * * *
    22     (2)  Possession or Transportation of Liquor or Alcohol. For
    23  any person, except a manufacturer or the board or the holder of
    24  a sacramental wine license or of an importer's license, to
    25  possess or transport any liquor or alcohol within this
    26  Commonwealth which was not lawfully acquired prior to January
    27  first, one thousand nine hundred and thirty-four, or has not
    28  been purchased from a Pennsylvania Liquor Store or a licensed
    29  limited winery in Pennsylvania, except [miniatures totalling
    30  less than one gallon purchased by a collector of the same in
    20010H1519B3160                 - 41 -

     1  another state or foreign country, or] in accordance with section
     2  488 or the board's regulations. IN ADDITION IT SHALL BE LAWFUL    <--
     3  FOR ANYONE TO POSSESS MINIATURES TOTALING LESS THAN ONE GALLON
     4  PURCHASED IN ANOTHER STATE OR A FOREIGN COUNTRY. The burden
     5  shall be upon the person possessing or transporting such liquor
     6  or alcohol to prove that it was so acquired. But nothing herein
     7  contained shall prohibit the manufacture or possession of wine
     8  by any person in his home for consumption of himself, his family
     9  and guests and not for sale, not exceeding, during any one
    10  calendar year, two hundred gallons, any other law to the
    11  contrary notwithstanding. Such wine shall not be manufactured,
    12  possessed, offered for sale or sold on any licensed premises.
    13     None of the provisions herein contained shall prohibit nor
    14  shall it be unlawful for any person to import into Pennsylvania,
    15  transport or have in his possession, an amount of liquor not
    16  exceeding one gallon in volume upon which a State tax has not
    17  been paid, if it can be shown to the satisfaction of the board
    18  that such person purchased the liquor in a foreign country or
    19  United States territory and was allowed to bring it into the
    20  United States. Neither shall the provisions contained herein
    21  prohibit nor make it unlawful for (i) any member of the armed
    22  forces on active duty, or (ii) any retired member of the armed
    23  forces, or (iii) any totally disabled veteran, or (iv) the
    24  spouse of any person included in the foregoing classes of
    25  persons to import into Pennsylvania, transport or have in his
    26  possession an amount of liquor not exceeding one gallon per
    27  month in volume upon which the State tax has not been paid, so
    28  long as such liquor has been lawfully purchased from a package
    29  store established and maintained under the authority of the
    30  United States and is in containers identified in accordance with
    20010H1519B3160                 - 42 -

     1  regulations issued by the Department of Defense. Such liquor
     2  shall not be possessed, offered for sale or sold on any licensed
     3  premises.
     4     None of the provisions herein contained shall prohibit nor
     5  shall it be unlawful for any consul general, consul or other
     6  diplomatic officer of a foreign government to import into
     7  Pennsylvania, transport or have in his possession liquor upon
     8  which a State tax has not been paid, if it can be shown to the
     9  satisfaction of the board that such person acquired the liquor
    10  in a foreign country and was allowed to bring it into the United
    11  States. Such liquor shall not be possessed, offered for sale or
    12  sold on any licensed premises.
    13     Any person violating the provisions of this clause for a
    14  first offense involving the possession or transportation in
    15  Pennsylvania of any liquor in a package (bottle or other
    16  receptacle) or wine not purchased from a Pennsylvania Liquor
    17  Store or from a licensed limited winery in Pennsylvania, with
    18  respect to which satisfactory proof is produced that the
    19  required Federal tax has been paid and which was purchased,
    20  procured or acquired legally outside of Pennsylvania shall upon
    21  conviction thereof in a summary proceeding be sentenced to pay a
    22  fine of twenty-five dollars ($25) for each such package, plus
    23  costs of prosecution, or undergo imprisonment for a term not
    24  exceeding ninety (90) days. Each full quart or major fraction
    25  thereof shall be considered a separate package (bottle or other
    26  receptacle) for the purposes of this clause. Such packages of
    27  liquor shall be forfeited to the Commonwealth in the manner
    28  prescribed in Article VI of this act but the vehicle, boat,
    29  vessel, animal or aircraft used in the illegal transportation of
    30  such packages shall not be subject to forfeiture: Provided,
    20010H1519B3160                 - 43 -

     1  however, That if it is a second or subsequent offense or if it
     2  is established that the illegal possession or transportation was
     3  in connection with a commercial transaction, then the other
     4  provisions of this act providing for prosecution as a
     5  misdemeanor and for the forfeiture of the vehicle, boat, vessel,
     6  animal or aircraft shall apply.
     7     * * *
     8     (8)  Importation and Sales of Alcohol. For any person, to
     9  import alcohol into this Commonwealth, or to sell alcohol to any
    10  person, except in accordance with section 488 and the
    11  regulations of the board.
    12     * * *
    13     (11)  Importation of Liquor. For any person, other than the
    14  board or the holder of a sacramental wine license [or of], an
    15  importer's license or a direct shipper's license, to import any
    16  liquor whatsoever into this Commonwealth, but this section shall
    17  not be construed to prohibit railroad and pullman companies from
    18  selling liquors purchased outside the Commonwealth in their
    19  dining, club and buffet cars which are covered by public service
    20  liquor licenses and which are operated in this Commonwealth.
    21     * * *
    22     Section 20.  Section 493(3), (4), (9), (14) and (26) of the
    23  act, amended December 20, 2000 (P.L.992, No.141), are amended to
    24  read:
    25     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    26  Brewed Beverages and Licensees.--The term "licensee," when used
    27  in this section, shall mean those persons licensed under the
    28  provisions of Article IV, unless the context clearly indicates
    29  otherwise.
    30     It shall be unlawful--
    20010H1519B3160                 - 44 -

     1     * * *
     2     [(3)  Exchange of Liquor or Malt or Brewed Beverages For
     3  Merchandise, etc. For any licensee or the board, or any employe,
     4  servant or agent of a licensee or of the board, to sell, offer
     5  to sell or furnish any liquor or malt or brewed beverages to any
     6  person on a pass book or store order, or to receive from any
     7  person any goods, wares, merchandise or other articles in
     8  exchange for liquor or malt or brewed beverages.
     9     (4)  Peddling Liquor or Malt or Brewed Beverages. For any
    10  person, to hawk or peddle any liquor or malt or brewed beverages
    11  in this Commonwealth.]
    12     * * *
    13     [(9)  Retail Licensees Furnishing Free Lunch, etc. For any
    14  retail liquor licensee or any retail dispenser, his agents,
    15  servants or employes, to furnish, give or sell below a fair cost
    16  any lunch to any consumer, except such articles of food as the
    17  board may authorize and approve.]
    18     * * *
    19     (14)  Permitting Undesirable Persons or Minors to Frequent
    20  Premises. For any hotel, restaurant or club liquor licensee, or
    21  any retail dispenser, his servants, agents or employes, to
    22  permit persons of ill repute, [known criminals,] prostitutes or
    23  minors to frequent his licensed premises or any premises
    24  operated in connection therewith, except minors accompanied by
    25  parents, guardians, or under proper supervision or except minors
    26  who frequent any restaurant or retail dispensing licensee whose
    27  sales of food and non-alcoholic beverages are equal to [seventy]
    28  sixty FIFTY per centum or more of the combined gross sales of     <--
    29  both food and alcoholic beverages on the condition that
    30  alcoholic beverages may not be served at the table or booth at
    20010H1519B3160                 - 45 -

     1  which the said minor is seated at the time (unless said minor is
     2  under proper supervision as hereinafter defined) and on the
     3  further condition that only table service of alcoholic beverages
     4  or take-out service of beer shall be permitted in the room
     5  wherein the minor is located: Provided, however, That it shall
     6  not be unlawful for any hotel, restaurant or club liquor
     7  licensee or any retail dispenser to permit minors under proper
     8  supervision upon the licensed premises or any premises operated
     9  in connection therewith for the purpose of a social gathering,
    10  even if such gathering is exclusively for minors: And provided
    11  further, That no liquor shall be sold, furnished or given to
    12  such minors nor shall the licensee knowingly permit any liquor
    13  or malt or brewed beverages to be sold, furnished or given to or
    14  be consumed by any minor, and the area of such gathering shall
    15  be segregated from the remainder of the licensed premises. In
    16  the event the area of such gathering cannot be segregated from
    17  the remainder of the licensed premises, all alcoholic beverages
    18  must be either removed from the licensed premises or placed
    19  under lock and key during the time the gathering is taking
    20  place. [Notice of such gathering shall be given the board as it
    21  may, by regulation, require.] Written notice, at least forty-
    22  eight (48) hours in advance of such gathering, shall be given to
    23  the enforcement bureau. Any licensee violating the provisions of
    24  this clause shall be subject to the provisions of section 471.
    25  Nothing in this clause shall be construed to make it unlawful
    26  for minors to frequent public venues or performing arts
    27  facilities.
    28     "Proper supervision," as used in this clause, means the
    29  presence, on that portion of the licensed premises where a minor
    30  or minors are present, of one person twenty-five years of age or
    20010H1519B3160                 - 46 -

     1  older for every fifty minors or part thereof who is directly
     2  responsible for the care and conduct of such minor or minors
     3  while on the licensed premises and in such proximity that the
     4  minor or minors are constantly within his sight or hearing. The
     5  presence of the licensee or any employe or security officer of
     6  the licensee shall not constitute proper supervision.
     7     * * *
     8     (26)  Worthless Checks. For any retail liquor licensee or any
     9  retail dispenser, distributor or importing distributor, to make,
    10  draw, utter, issue or deliver, or cause to be made, drawn,
    11  uttered, issued or delivered, any check, draft or similar order,
    12  for the payment of money in payment for any purchase of malt or
    13  brewed beverages, when such retail liquor licensee, retail
    14  dispenser, distributor or importing distributor, has not
    15  sufficient funds in, or credit with, such bank, banking
    16  institution, trust company or other depository, for the payment
    17  of such check. Any person who is a licensee under the provisions
    18  of this article, who shall receive in payment for malt or brewed
    19  beverages sold by him any check, draft or similar order for the
    20  payment of money, which is subsequently dishonored by the bank,
    21  banking institution, trust company or other depository, upon
    22  which drawn, for any reason whatsoever, shall, within five days
    23  of receipt of notice of such dishonor, notify by certified mail
    24  the person who presented the said worthless check, draft or
    25  similar order. This clause shall not be deemed to have been       <--
    26  violated if the check, draft or similar order is honored within
    27  twenty days of the date on which it was made, drawn, issued or
    28  presented. IF THE VIOLATION OF THIS CLAUSE IS THE FIRST SUCH      <--
    29  VIOLATION BY THE LICENSEE THAT CALENDAR YEAR INVOLVING A CHECK,
    30  DRAFT OR SIMILAR ORDER FROM THE PURCHASER TO THE SELLER, AND IF
    20010H1519B3160                 - 47 -

     1  THE CHECK, DRAFT OR SIMILAR ORDER IS SUBSEQUENTLY HONORED WITHIN
     2  TEN DAYS FROM THE DAY IT WAS MADE, DRAWN, UTTERED, ISSUED OR
     3  DELIVERED, THEN THE ENFORCEMENT BUREAU SHALL ISSUE AN
     4  ADMINISTRATIVE WARNING IN LIEU OF CITATION.
     5     Section 21.  Section 495(a), (e) and (f) of the act, amended
     6  or added December 21, 1988 (P.L.1879, No.183) and December 20,
     7  1996 (P.L.1523, No.199), are amended to read:
     8     Section 495.  Identification Cards; Licensees and State
     9  Liquor Store Employes Saved From Prosecution.--(a)  The valid
    10  photo driver's license or identification card issued by the
    11  Department of Transportation or by any other state, [an] a valid
    12  armed forces of the United States identification card, a valid
    13  passport or a travel visa issued by the United States or a
    14  foreign country that contains the holder's photograph shall, for
    15  the purpose of this act, be accepted as an identification card.
    16     * * *
    17     [(e)  Any such signed form in the possession of a licensee or
    18  an employe of a State Liquor Store may be offered as a defense
    19  in all civil and criminal prosecutions for serving a minor, and
    20  no penalty shall be imposed if the administrative law judge or
    21  the courts are satisfied that the licensee or State Liquor Store
    22  employe acted in good faith.
    23     (f)  A photograph or photocopy or other visual or video
    24  presentation of the identification card set forth in subsection
    25  (a) in the possession of a licensee or an employe of a State
    26  Liquor Store may be offered as a defense in all civil and
    27  criminal prosecutions for serving a minor, and no penalty shall
    28  be imposed if the administrative law judge or the courts are
    29  satisfied that the licensee or State Liquor Store employe acted
    30  in good faith.]
    20010H1519B3160                 - 48 -

     1     (e)  No penalty shall be imposed on a licensee, licensee's
     2  employe or State Liquor Store employe for serving alcohol to a
     3  minor if the licensee or employe can establish that the minor
     4  was required to produce an identification card as set forth in
     5  subsection (a), the minor completed and signed the form as set
     6  forth in subsection (c), and these documents were relied upon in
     7  good faith. This defense shall apply to all civil and criminal
     8  prosecutions.
     9     (f)  In addition to the defense set forth in subsection (e),
    10  no penalty shall be imposed on a licensee, licensee's employe or
    11  State Liquor Store employe for serving alcohol to a minor if the
    12  licensee or employe can establish that the minor was required to
    13  produce an identification card as set forth in subsection (a), a
    14  photograph, photocopy or other visual or video presentation of
    15  the identification card was made and those documents were relied
    16  upon in good faith. This defense shall apply to all civil and
    17  criminal prosecutions.
    18     Section 22.  Section 496 of the act is amended to read:
    19     Section 496.  Reporting of Worthless Checks.--Any person who
    20  is a licensee under the provisions of this article, who shall
    21  receive in payment for malt or brewed beverages sold by him any
    22  check, draft or similar order, for the payment of money, which
    23  is subsequently dishonored by the bank, banking institution,
    24  trust company or other depository, upon which drawn, for any
    25  reason whatsoever, and which violates the provisions of section
    26  493(26) shall, within [twenty days of receipt of notice of such   <--
    27  dishonor] thirty days of the date on which the check, draft or    <--
    28  similar order was made, drawn, issued or presented, notify the
    29  board thereof. Such notification to the board shall be in such
    30  manner and form as the board shall direct.
    20010H1519B3160                 - 49 -

     1     Section 23.  Section 498 of the act, amended December 20,
     2  1996 (P.L.1523, No.199), is amended to read:
     3     Section 498.  Unlawful Advertising.--(a)  Manufacturers,
     4  wholesalers, retailers and shippers, whether from outside or
     5  inside this Commonwealth, and any licensee under this act are
     6  permitted to advertise their products and prices in this
     7  Commonwealth. All advertisements shall be subject to all Federal
     8  and State laws and regulations.
     9     (b)  No advertisement of price may contain the following:
    10     (1)  Any statement that is false, deceptive or misleading.
    11     (2)  Any statement that is disparaging of the products of a
    12  competitor.
    13     (3)  Any statement referring to monetary comparison between
    14  brands.
    15     (c)  Prices that are advertised or displayed on the licensed
    16  premises shall be those that are in effect at the time of the
    17  advertisement or display.
    18     [(d)  No prices, other than the posting of a printed menu or
    19  wine list as expressly provided for in section 493(20)(i), may
    20  be displayed in a window of any licensed establishment.]
    21     (e)  The following shall apply to all alcoholic beverage and
    22  malt beverage advertising:
    23     (1)  The entity responsible for the advertisement shall be
    24  clearly identified in the advertisement.
    25     (2)  No licensee may distribute, by mail, personally or
    26  through servants, agents or employees, price lists, circulars or
    27  handbills off the licensed premises to the general public as a
    28  means of advertising liquor, wine or malt or brewed beverages.
    29     (3)  No print advertisement of alcoholic beverages of any
    30  type shall be permitted within three hundred feet of any church,
    20010H1519B3160                 - 50 -

     1  school or public playground. This prohibition shall not preclude
     2  any point of sale advertisement, menus or other print
     3  advertisement regarding alcoholic beverages inside the licensed
     4  premises.
     5     (4)  The use in any advertisement of alcoholic beverages of
     6  any subject matter, language or slogan directed to minors to
     7  promote consumption of alcoholic beverages is prohibited.
     8  Nothing in this section shall be deemed to restrict or prohibit
     9  any advertisement of alcoholic beverages to those persons of
    10  legal drinking age.
    11     (5)  No advertisement shall be permitted, either directly or
    12  indirectly, in any booklet, program book, yearbook, magazine,
    13  newspaper, periodical, brochure, circular or other similar
    14  publication published by, for or in behalf of any educational
    15  institution.
    16     (6)  No advertisement that is obscene shall be permitted.
    17     (f)  Advertisement of alcoholic beverages and malt and brewed
    18  beverages shall not be inconsistent with the spirit of safety or
    19  safe driving programs.
    20     (g)  For purposes of this subsection, the term
    21  "advertisement" shall mean any advertising of alcoholic
    22  beverages through the medium of radio broadcast, television
    23  broadcast, newspapers, periodicals or other publication, outdoor
    24  advertisement or any other printed or graphic matter, including
    25  booklets, flyers or cards, or on the product label or attachment
    26  itself.
    27     Section 24.  Section 499 of the act is amended by adding
    28  subsections to read:
    29     Section 499.  Premises to be Vacated by Patrons.--* * *
    30     (d)  This section shall not apply to holders of public
    20010H1519B3160                 - 51 -

     1  service licenses.
     2     (e)  Nothing in this section shall prohibit restaurant
     3  liquor, eating place retail dispenser or hotel licenses from
     4  being open 7:00 ante meridian on Sunday until 2:00 ante meridian
     5  Monday for the purpose of serving food and non-alcoholic
     6  beverages.
     7     Section 25.  This act shall take effect in 60 days.            <--
     8     SECTION 25.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:            <--
     9         (1)  THE AMENDMENT OR ADDITION OF SECTIONS 102, 412, 413,
    10     431.1, 461, 463, 472, 472.1 AND 472.4 OF THE ACT SHALL TAKE
    11     EFFECT IMMEDIATELY.
    12         (2)  THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.
    13         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    14     DAYS.











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