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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 2523, 3058, 3313,        PRINTER'S NO. 4323
        3058, 4201, 4290

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1946 Session of 1989


        INTRODUCED BY SALOOM, MOWERY, J. L. WRIGHT, CAPPABIANCA,
           STABACK, HOWLETT, MICOZZIE, CIVERA, CORRIGAN AND ACOSTA,
           OCTOBER 4, 1989

        SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, NOVEMBER 14, 1990

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
     2     reenacted, "An act relating to alcoholic liquors, alcohol and
     3     malt and brewed beverages; amending, revising, consolidating
     4     and changing the laws relating thereto; regulating and
     5     restricting the manufacture, purchase, sale, possession,
     6     consumption, importation, transportation, furnishing, holding
     7     in bond, holding in storage, traffic in and use of alcoholic
     8     liquors, alcohol and malt and brewed beverages and the
     9     persons engaged or employed therein; defining the powers and
    10     duties of the Pennsylvania Liquor Control Board; providing
    11     for the establishment and operation of State liquor stores,
    12     for the payment of certain license fees to the respective
    13     municipalities and townships, for the abatement of certain
    14     nuisances and, in certain cases, for search and seizure
    15     without warrant; prescribing penalties and forfeitures;
    16     providing for local option, and repealing existing laws,"
    17     further providing for INTERPRETATION AND FOR the quota on the  <--
    18     issuance of distributors licenses and retail licenses;
    19     PROVIDING FOR PRICE CHANGES FOR MALT AND BREWED BEVERAGES;     <--
    20     further providing for privately-owned public golf courses;
    21     providing that patrons be required to leave licensed premises
    22     at a certain time; authorizing the serving of food after the
    23     hour to cease serving liquor or malt or brewed beverages has
    24     arrived; and prohibiting the consumption of liquor or malt or  <--
    25     brewed beverages while tending bar or otherwise serving such
    26     beverages; AND FURTHER PROVIDING FOR ADMINISTRATIVE LAW        <--
    27     JUDGES, LICENSES AND LICENSING PROCEDURES.

    28     The General Assembly of the Commonwealth of Pennsylvania


     1  hereby enacts as follows:
     2     Section 1.  Sections 437(f) and 461(a) of the act of April     <--
     3  12, 1951 (P.L.90, No.21), known as the Liquor Code, reenacted
     4  and amended June 29, 1987 (P.L.32, No.14), are amended to read:
     5     SECTION 1.  SECTIONS 104(C), (D) AND (E), 212(C) AND (H),      <--
     6  402, 433 AND 437(F) OF THE ACT OF APRIL 12, 1951 (P.L.90,
     7  NO.21), KNOWN AS THE LIQUOR CODE, REENACTED AND AMENDED JUNE 29,
     8  1987 (P.L.32, NO.14), ARE AMENDED TO READ:
     9     SECTION 104.  INTERPRETATION OF ACT.--* * *
    10     (C)  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED, THE PURPOSE OF
    11  THIS ACT IS TO PROHIBIT THE MANUFACTURE OF AND TRANSACTIONS IN
    12  LIQUOR, ALCOHOL AND MALT OR BREWED BEVERAGES WHICH TAKE PLACE IN
    13  THIS COMMONWEALTH, EXCEPT BY AND UNDER THE CONTROL OF THE BOARD
    14  AS HEREIN SPECIFICALLY PROVIDED, AND EVERY SECTION AND PROVISION
    15  OF THE ACT SHALL BE CONSTRUED ACCORDINGLY; TO PROVIDE A
    16  STRUCTURE IN THIS COMMONWEALTH FOR A DISTRIBUTION SYSTEM,
    17  INCLUDING THE ESTABLISHMENT OF PENNSYLVANIA LIQUOR STORES AND
    18  LICENSING OF IMPORTING DISTRIBUTORS AND DISTRIBUTORS; AND TO
    19  PRESERVE MANUFACTURERS OF LIQUOR AND ALCOHOL AND MALT AND BREWED
    20  BEVERAGES SELLING THOSE PRODUCTS WITHIN THIS COMMONWEALTH. THE
    21  PROVISIONS OF THIS ACT DEALING WITH THE MANUFACTURE,
    22  IMPORTATION, SALE, DISTRIBUTION AND DISPOSITION OF LIQUOR,
    23  ALCOHOL AND MALT OR BREWED BEVERAGES WITHIN THE COMMONWEALTH
    24  THROUGH THE INSTRUMENTALITY OF THE BOARD, LICENSEES AND
    25  OTHERWISE, PROVIDE THE MEANS BY WHICH SUCH CONTROL SHALL BE MADE
    26  EFFECTIVE. THIS ACT SHALL NOT BE CONSTRUED AS FORBIDDING,
    27  AFFECTING OR REGULATING ANY TRANSACTION WHICH IS NOT SUBJECT TO
    28  THE LEGISLATIVE AUTHORITY OF THIS COMMONWEALTH.
    29     (D)  THE PROVISIONS OF THIS ACT ARE INTENDED TO CREATE A
    30  SYSTEM FOR DISTRIBUTION THAT SHALL INCLUDE THE FIXING OF PRICES
    19890H1946B4323                  - 2 -

     1  FOR LIQUOR AND ALCOHOL AND CONTROLS PLACED ON PRICES FOR MALT
     2  AND BREWED BEVERAGES AND WHICH SHALL BE CONSTRUED AS INTEGRAL TO
     3  THE PRESERVATION OF THE SYSTEM, WITHOUT WHICH THE COMMONWEALTH'S
     4  CONTROL OF THE SALE OF LIQUOR AND ALCOHOL AND MALT AND BREWED
     5  BEVERAGES WOULD NOT BE POSSIBLE.
     6     [(D)] (E)  ANY REFERENCE IN THIS ACT TO THE PROVISIONS OF LAW
     7  ON ANY SUBJECT SHALL APPLY TO STATUTES BECOMING EFFECTIVE AFTER
     8  THE EFFECTIVE DATE OF THIS ACT AS WELL AS TO THOSE THEN IN
     9  EXISTENCE.
    10     [(E)] (F)  SECTION HEADINGS SHALL NOT BE TAKEN TO GOVERN OR
    11  LIMIT THE SCOPE OF THE SECTIONS OF THIS ACT. THE SINGULAR SHALL
    12  INCLUDE THE PLURAL AND THE MASCULINE SHALL INCLUDE THE FEMININE
    13  AND THE NEUTER.
    14     SECTION 212.  OFFICE OF ADMINISTRATIVE LAW JUDGE.--* * *
    15     (C)  ADMINISTRATIVE LAW JUDGES SHALL PRESIDE AT ALL
    16  LICENSING, CITATION AND OTHER ENFORCEMENT HEARINGS REQUIRED OR
    17  PERMITTED UNDER THIS ACT. AN ADMINISTRATIVE LAW JUDGE SHALL
    18  RECUSE HIMSELF IN A LICENSING PROCEEDING IF THE LICENSEE OR
    19  PROSPECTIVE LICENSEE CAN DEMONSTRATE THAT THE JUDGE HAS HEARD AN
    20  ENFORCEMENT MATTER CONCERNING THE LICENSEE OR PROSPECTIVE
    21  LICENSEE. AN ADMINISTRATIVE LAW JUDGE SHALL RECUSE HIMSELF IN AN
    22  ENFORCEMENT PROCEEDING IF THE PERSON SUBJECT TO ENFORCEMENT CAN
    23  DEMONSTRATE THAT THE JUDGE HAS HEARD A LICENSING MATTER
    24  CONCERNING THE PERSON. ADMINISTRATIVE LAW JUDGES SHALL INFORM
    25  PERSONS AND THEIR COUNSEL OF RECUSAL RIGHTS UNDER THIS
    26  SUBSECTION.
    27     * * *
    28     [(H)  NOTHING IN THIS SECTION OR THIS ACT SHALL BE CONSTRUED
    29  OR INTENDED TO CHANGE OR AFFECT THE TERMS AND CONDITIONS OF
    30  EMPLOYMENT OR THE EMPLOYMENT SECURITY OF HEARING EXAMINERS
    19890H1946B4323                  - 3 -

     1  EMPLOYED BY THE BOARD ON THE EFFECTIVE DATE OF THIS SECTION.]
     2     SECTION 402.  LICENSE DISTRICTS; LICENSE YEAR; HEARINGS.--(A)
     3  THE BOARD SHALL, BY REGULATION, DIVIDE THE STATE INTO CONVENIENT
     4  LICENSE DISTRICTS AND SHALL HOLD HEARINGS ON APPLICATIONS FOR
     5  LICENSES AND RENEWALS THEREOF, AS IT DEEMS NECESSARY, AT A
     6  CONVENIENT PLACE OR PLACES IN EACH OF SAID DISTRICTS, AT SUCH
     7  TIMES AS IT SHALL FIX, BY REGULATION, FOR THE PURPOSE OF HEARING
     8  TESTIMONY FOR AND AGAINST APPLICATIONS FOR NEW LICENSES AND
     9  RENEWALS THEREOF. THE BOARD SHALL HOLD A HEARING ON ANY
    10  APPLICATION FOR A NEW HOTEL, CLUB OR RESTAURANT LIQUOR LICENSE
    11  OR THE TRANSFER OF ANY SUCH LICENSE TO A NEW LOCATION, UPON THE
    12  REQUEST OF ANY PERSON WITH STANDING TO TESTIFY UNDER SUBSECTION
    13  (B) IF THE REQUEST IS FILED WITH THE BOARD WITHIN THE FIRST
    14  FIFTEEN DAYS OF POSTING OF THE NOTICE OF APPLICATION PURSUANT TO
    15  SECTION 403(G). THE BOARD [MAY] SHALL PROVIDE FOR THE HOLDING OF
    16  SUCH HEARINGS BY [EXAMINERS LEARNED IN THE LAW, TO BE APPOINTED
    17  BY THE GOVERNOR, WHO SHALL NOT BE SUBJECT TO THE "CIVIL SERVICE
    18  ACT." SUCH EXAMINERS] ADMINISTRATIVE LAW JUDGES, WHO SHALL MAKE
    19  A REPORT TO THE BOARD IN EACH CASE WITH THEIR RECOMMENDATIONS.
    20  THE BOARD SHALL, BY REGULATION, FIX THE LICENSE YEAR FOR EACH
    21  SEPARATE DISTRICT SO THAT THE EXPIRATION DATES SHALL BE UNIFORM
    22  IN EACH OF THE SEVERAL DISTRICTS BUT STAGGERED AS TO THE STATE.
    23     (B)  WHERE A HEARING IS HELD IN THE CASE OF AN APPLICATION
    24  FOR A NEW HOTEL, CLUB OR RESTAURANT LIQUOR LICENSE OR AN
    25  APPLICATION FOR THE TRANSFER OF A HOTEL, CLUB OR RESTAURANT
    26  LIQUOR LICENSE TO A NEW LOCATION, THE BOARD SHALL PERMIT
    27  RESIDENTS RESIDING WITHIN A RADIUS OF FIVE HUNDRED FEET OF THE
    28  PREMISES TO TESTIFY AT THE HEARING. THE BOARD AND ANY [HEARING
    29  OFFICER] ADMINISTRATIVE LAW JUDGE THEREOF SHALL GIVE APPROPRIATE
    30  EVIDENTIARY WEIGHT TO ANY TESTIMONY OF SUCH RESIDENTS GIVEN AT
    19890H1946B4323                  - 4 -

     1  THE HEARING.
     2     SECTION 433.  PUBLIC SERVICE LICENSES.--THE BOARD MAY ISSUE
     3  PUBLIC SERVICE MALT AND BREWED BEVERAGE LICENSES TO A RAILROAD,
     4  PULLMAN OR STEAMSHIP COMPANY PERMITTING MALT OR BREWED BEVERAGES
     5  TO BE SOLD AT RETAIL IN DINING, CLUB OR BUFFET CARS, OR THE
     6  DINING COMPARTMENTS OF STEAMSHIPS OR VESSELS, FOR CONSUMPTION ON
     7  THE TRAINS, STEAMSHIPS OR VESSELS WHEREVER OPERATED IN THE
     8  STATE, EXCEPT WHEN STANDING IN STATIONS OR TERMINALS WITHIN A
     9  MUNICIPALITY WHEREIN RETAIL SALES ARE PROHIBITED. SUCH LICENSES
    10  SHALL ONLY BE GRANTED TO REPUTABLE PERSONS AND FOR FIT PLACES.
    11  THE BOARD MAY ISSUE A MASTER LICENSE TO RAILROAD OR PULLMAN
    12  COMPANIES TO COVER THE MAXIMUM NUMBER OF CARS WHICH THE COMPANY
    13  SHALL ESTIMATE THAT IT WILL OPERATE WITHIN THE COMMONWEALTH ON
    14  ANY ONE DAY. SUCH LICENSEES SHALL FILE MONTHLY REPORTS WITH THE
    15  BOARD SHOWING THE MAXIMUM NUMBER OF CARS OPERATED AT ANY TIME ON
    16  ANY DAY DURING THE PRECEDING MONTH, AND IF IT APPEARS THAT MORE
    17  CARS HAVE BEEN OPERATED THAN COVERED BY ITS LICENSE IT SHALL
    18  FORTHWITH REMIT TO THE BOARD THE SUM OF TEN DOLLARS FOR EACH
    19  EXTRA CAR SO OPERATED. THE BOARD SHALL HAVE THE POWER TO SUSPEND
    20  OR REVOKE ANY SUCH LICENSES FOR CAUSE AFTER GRANTING A HEARING
    21  BEFORE [A HEARING EXAMINER TO THE LICENSEE] AN ADMINISTRATIVE
    22  LAW JUDGE. ANY PERSON AGGRIEVED BY THE DECISION OF THE BOARD IN
    23  REFUSING, SUSPENDING OR REVOKING ANY SUCH LICENSE MAY APPEAL TO
    24  THE COMMONWEALTH COURT IN THE SAME MANNER AS PROVIDED IN THIS
    25  ARTICLE FOR APPEALS FROM REFUSALS OF LICENSES.
    26     Section 437.  Prohibitions Against the Grant of Licenses.--*
    27  * *
    28     (f)  No new distributor's or importing distributor's license
    29  shall hereafter be granted by the board in any county of the
    30  Commonwealth where the combined number of distributor and
    19890H1946B4323                  - 5 -

     1  importing distributor licenses exceeds one license for each
     2  [fifteen] thirty thousand inhabitants of the county in which the
     3  license is to be issued: Provided, That a combined total of five
     4  such licenses may be granted in any county of the Commonwealth.
     5     Nothing in this subsection shall be construed as denying the
     6  right of the board to renew or to transfer existing
     7  distributors' or importing distributors' licenses or to exchange
     8  a distributor's license for an importing distributor's license
     9  or to exchange an importing distributor's license for a
    10  distributor's license, upon adjustment of the applicable fee,
    11  notwithstanding that the number of such licensed places in the
    12  county shall exceed the limitation hereinbefore prescribed:
    13  Provided, That no distributor's license or importing
    14  distributor's license shall be transferred from one county to
    15  another county so long as the quota is filled in the county to
    16  which the license is proposed to be transferred.
    17     SECTION 2.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:    <--
    18     SECTION 447.  PRICE CHANGES OF MALT AND BREWED BEVERAGES.--
    19  (A)  (1)  THE PURPOSE OF THIS SECTION IS TO REGULATE THE MANNER
    20  IN WHICH PRICES OF MALT OR BREWED BEVERAGES IS CHANGED BY THE
    21  MANUFACTURERS, IMPORTING DISTRIBUTORS AND OTHER DISTRIBUTORS,
    22  AND TO PROVIDE FOR THE RETENTION AND THE FURNISHING OF RECORDS
    23  OF PRICE CHANGES BY SUCH MANUFACTURERS, IMPORTING DISTRIBUTORS
    24  AND DISTRIBUTORS.
    25     (2)  ANY MANUFACTURER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR
    26  WHO REDUCES THE PRICE ON ANY PACKAGE OF ANY BRAND OF MALT OR
    27  BREWED BEVERAGES SOLD FOR RESALE WITHIN THIS COMMONWEALTH MAY
    28  FURTHER REDUCE THE PRICE AT ANY TIME, BUT ANY REDUCTION SHALL
    29  CONTINUE IN FULL FORCE AND EFFECT FOR AT LEAST ONE HUNDRED
    30  EIGHTY DAYS FROM THE DATE ON WHICH THE LAST SUCH REDUCED PRICE
    19890H1946B4323                  - 6 -

     1  BECOMES EFFECTIVE, EXCEPT FOR THE MEETING OF COMPETITION AS SET
     2  FORTH IN PARAGRAPH (B). HOWEVER, SUCH REDUCED PRICE MAY BE
     3  INCREASED DURING SUCH ONE HUNDRED EIGHTY-DAY PERIOD TO REFLECT
     4  ANY TAX INCREASE ON MALT OR BREWED BEVERAGES.
     5     (3)  IF A MANUFACTURER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR
     6  OF MALT OR BREWED BEVERAGES LOWERS THE WHOLESALE PRICE ON ANY
     7  PACKAGE OF ANY BRAND OF MALT OR BREWED BEVERAGES TO ONE
     8  IMPORTING DISTRIBUTOR OR DISTRIBUTOR OR RETAIL LICENSEE WITHIN
     9  THIS COMMONWEALTH, THE MANUFACTURER, IMPORTING DISTRIBUTOR OR
    10  DISTRIBUTOR SHALL LOWER THE WHOLESALE PRICE ON SUCH PACKAGE OF
    11  SUCH BRAND OFFERED OR SOLD TO ALL OTHER IMPORTING DISTRIBUTORS
    12  OR DISTRIBUTORS OR RETAIL LICENSEES WITHIN THIS COMMONWEALTH BY
    13  A LIKE AMOUNT. ANY IMPORTING DISTRIBUTOR OR DISTRIBUTOR WHO
    14  LOWERS THE WHOLESALE PRICE ON ANY PACKAGE OF ANY BRAND OF MALT
    15  OR BREWED BEVERAGES SHALL FILE A NOTICE OF THE LOWERED PRICE
    16  WITH THE COMMONWEALTH NO LATER THAN SEVEN DAYS OF SUCH CHANGE
    17  AND RETAIN A RECORD OF THE LOWERED PRICE FOR AT LEAST TWO YEARS
    18  FROM THE DATE OF FILING. IF SUCH MANUFACTURER, IMPORTING
    19  DISTRIBUTOR OR DISTRIBUTOR, HAVING LOWERED THE WHOLESALE PRICE
    20  ON A PACKAGE OF A BRAND PURSUANT TO THIS SECTION, SUBSEQUENTLY
    21  RAISES THE WHOLESALE PRICE ON SUCH PACKAGE OF SUCH BRAND TO ONE
    22  IMPORTING DISTRIBUTOR, OR DISTRIBUTOR OR RETAIL LICENSEE WITHIN
    23  THIS COMMONWEALTH, SUCH MANUFACTURER, IMPORTING DISTRIBUTOR OR
    24  DISTRIBUTOR SHALL RAISE THE WHOLESALE PRICE ON SUCH PACKAGE OF
    25  SUCH BRAND OFFERED OR SOLD TO ALL OTHER IMPORTING DISTRIBUTORS
    26  OR DISTRIBUTORS OR RETAIL LICENSEES WITHIN THIS COMMONWEALTH BY
    27  A LIKE AMOUNT.
    28     (4)  NO IMPORTING DISTRIBUTOR OR DISTRIBUTOR SHALL BE
    29  REQUIRED BY ANY MANUFACTURER OR IMPORTING DISTRIBUTOR TO REDUCE
    30  THE RESALE PRICE OF ANY PACKAGE OF ANY BRAND OF MALT OR BREWED
    19890H1946B4323                  - 7 -

     1  BEVERAGES BY AN AMOUNT GREATER THAN THE AMOUNT BY WHICH SUCH
     2  MANUFACTURER OR IMPORTING DISTRIBUTOR HAS REDUCED THE WHOLESALE
     3  PRICE ON SUCH PACKAGE OF SUCH BRAND TO SUCH IMPORTING
     4  DISTRIBUTOR OR DISTRIBUTOR.
     5     (5)  EVERY IMPORTING DISTRIBUTOR AND DISTRIBUTOR RECEIVING A
     6  PRICE REDUCTION ON ANY PACKAGE OF ANY BRAND OF MALT OR BREWED
     7  BEVERAGES PURSUANT TO THIS SECTION SHALL REDUCE HIS PRICE BY A
     8  LIKE AMOUNT TO ALL CLASSES OF CUSTOMERS.
     9     (6)  MANUFACTURERS OF MALT OR BREWED BEVERAGES SHALL NOTIFY
    10  IMPORTING DISTRIBUTORS AND DISTRIBUTORS, IN WRITING, OF ANY
    11  PRICE REDUCTIONS, PRICES ON NEWLY INTRODUCED BRAND OR PACKAGES
    12  AND SUBSEQUENT INCREASES AFTER EXPIRATION OF ONE HUNDRED EIGHTY
    13  DAYS, IF ANY, AT LEAST FIFTEEN DAYS IN ADVANCE OF SUCH PRICE
    14  CHANGES.
    15     (B)  IF A MANUFACTURER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR
    16  HAS REDUCED THE WHOLESALE PRICE ON ANY PACKAGE OF ANY BRAND OF
    17  MALT OR BREWED BEVERAGES, ANY OTHER MANUFACTURER, IMPORTING
    18  DISTRIBUTOR OR DISTRIBUTOR MAY REDUCE THE WHOLESALE PRICE ON THE
    19  SAME OR SIMILAR PACKAGE OF SUCH BRAND IN ORDER TO MEET
    20  COMPETITION. SUCH PRICE REDUCTION SHALL BE NO GREATER THAN THE
    21  PRICE REDUCTION BEING MET. ALL SUCH PRICE REDUCTIONS TO MEET
    22  COMPETITION SHALL CONTINUE IN FULL FORCE AND EFFECT FOR THE
    23  BALANCE OF THE ONE HUNDRED EIGHTY-DAY PERIOD DURING WHICH THE
    24  PRICE REDUCTION BEING MET IS REQUIRED TO REMAIN IN FULL FORCE
    25  AND EFFECT.
    26     (C)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE
    27  BOARD SHALL HAVE THE AUTHORITY, UPON APPLICATION BY A
    28  MANUFACTURER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR TO PERMIT
    29  SUCH MANUFACTURER, IMPORTING DISTRIBUTOR OR DISTRIBUTOR TO
    30  CHANGE THE PRICE WITHIN A TIME PERIOD OF LESS THAN ONE HUNDRED
    19890H1946B4323                  - 8 -

     1  EIGHTY DAYS FROM WHEN THE PRICE WENT INTO EFFECT UPON AN
     2  APPROPRIATE SHOWING THAT MARKET CONDITIONS WARRANT A CHANGE IN
     3  PRICE.
     4     SECTION 3.  SECTIONS 461(A) AND 464 OF THE ACT ARE AMENDED TO
     5  READ:
     6     Section 461.  Limiting Number of Retail Licenses To Be Issued
     7  In Each Municipality.--(a)  No licenses shall hereafter be
     8  granted by the board for the retail sale of malt or brewed
     9  beverages or the retail sale of liquor and malt or brewed
    10  beverages in excess of one of such licenses of any class for
    11  each [two thousand] three thousand inhabitants in any
    12  municipality, exclusive of licenses granted to airport
    13  restaurants, municipal golf courses, hotels, privately-owned
    14  public golf courses, as defined in this section, and clubs; but
    15  at least one such license may be granted in each municipality
    16  and in each part of a municipality where such municipality is
    17  split so that each part thereof is separated by another
    18  municipality, except in municipalities where the electors have
    19  voted against the granting of any retail licenses and except in
    20  that part of a split municipality where the electors have voted
    21  against the granting of any retail licenses. Nothing contained
    22  in this section shall be construed as denying the right to the
    23  board to renew or to transfer existing retail licenses of any
    24  class notwithstanding that the number of such licensed places in
    25  a municipality shall exceed the limitation hereinbefore
    26  prescribed; but where such number exceeds the limitation
    27  prescribed by this section, no new license, except for hotels,
    28  municipal golf courses, airport restaurants, privately-owned
    29  public golf courses and privately-owned private golf course
    30  licensees, as defined in this section, shall be granted so long
    19890H1946B4323                  - 9 -

     1  as said limitation is exceeded.
     2     * * *
     3     SECTION 464.  HEARINGS UPON REFUSAL OF LICENSES, RENEWALS OR   <--
     4  TRANSFERS; APPEALS.--THE BOARD MAY OF ITS OWN MOTION, AND SHALL
     5  UPON THE WRITTEN REQUEST OF ANY APPLICANT FOR CLUB, HOTEL OR
     6  RESTAURANT LIQUOR LICENSE, OR ANY APPLICANT FOR ANY MALT OR
     7  BREWED BEVERAGE LICENSE OTHER THAN A PUBLIC SERVICE LICENSE, OR
     8  FOR RENEWAL OR TRANSFER THEREOF, WHOSE APPLICATION FOR SUCH
     9  LICENSE, RENEWAL OR TRANSFER HAS BEEN REFUSED, FIX A TIME AND
    10  PLACE FOR HEARING OF SUCH APPLICATION FOR LICENSE OR FOR RENEWAL
    11  OR TRANSFER THEREOF, NOTICE OF WHICH HEARING SHALL BE MAILED TO
    12  THE APPLICANT AT THE ADDRESS GIVEN IN HIS APPLICATION. SUCH
    13  HEARING SHALL BE BEFORE [A HEARING EXAMINER DESIGNATED BY THE
    14  BOARD] AN ADMINISTRATIVE LAW JUDGE. AT SUCH HEARING, THE BOARD
    15  SHALL PRESENT ITS REASONS FOR ITS REFUSAL OR WITHHOLDING OF
    16  LICENSE, RENEWAL OR TRANSFER THEREOF. THE APPLICANT MAY APPEAR
    17  IN PERSON OR BY COUNSEL, MAY CROSS-EXAMINE THE WITNESSES FOR THE
    18  BOARD AND MAY PRESENT EVIDENCE WHICH SHALL LIKEWISE BE SUBJECT
    19  TO CROSS-EXAMINATION BY THE BOARD. SUCH HEARING SHALL BE
    20  STENOGRAPHICALLY RECORDED. THE [EXAMINER] ADMINISTRATIVE LAW
    21  JUDGE SHALL THEREAFTER MAKE A REPORT, INCLUDING THE JUDGE'S
    22  RECOMMENDATION, TO THE BOARD [UPON SUCH HEARING] IN EACH CASE.
    23  THE BOARD SHALL THEREUPON GRANT OR REFUSE THE LICENSE, RENEWAL
    24  OR TRANSFER THEREOF. IN CONSIDERING THE RENEWAL OF A LICENSE,
    25  THE BOARD SHALL NOT REFUSE ANY SUCH RENEWAL ON THE BASIS OF THE
    26  PROPRIETY OF THE ORIGINAL ISSUANCE OR ANY PRIOR RENEWAL OF SUCH
    27  LICENSE. IF THE BOARD SHALL REFUSE SUCH LICENSE, RENEWAL OR
    28  TRANSFER FOLLOWING SUCH HEARING, NOTICE IN WRITING OF SUCH
    29  REFUSAL SHALL BE MAILED TO THE APPLICANT AT THE ADDRESS GIVEN IN
    30  HIS APPLICATION. IN ALL SUCH CASES, THE BOARD SHALL FILE OF
    19890H1946B4323                 - 10 -

     1  RECORD AT LEAST A BRIEF STATEMENT IN THE FORM OF AN OPINION OF
     2  THE REASONS FOR THE RULING OR ORDER AND FURNISH A COPY THEREOF
     3  TO THE APPLICANT. ANY APPLICANT WHO HAS APPEARED AT ANY HEARING,
     4  AS ABOVE PROVIDED, WHO IS AGGRIEVED BY THE REFUSAL OF THE BOARD
     5  TO ISSUE ANY SUCH LICENSE OR TO RENEW OR TRANSFER ANY SUCH
     6  LICENSE MAY APPEAL, OR ANY CHURCH, HOSPITAL, CHARITABLE
     7  INSTITUTION, SCHOOL OR PUBLIC PLAYGROUND LOCATED WITHIN THREE
     8  HUNDRED FEET OF THE PREMISES APPLIED FOR, AGGRIEVED BY THE
     9  ACTION OF THE BOARD IN GRANTING THE ISSUANCE OF ANY SUCH LICENSE
    10  OR THE TRANSFER OF ANY SUCH LICENSE, MAY TAKE AN APPEAL LIMITED
    11  TO THE QUESTION OF SUCH GRIEVANCE, WITHIN TWENTY DAYS FROM DATE
    12  OF REFUSAL OR GRANT, TO THE COURT OF COMMON PLEAS OF THE COUNTY
    13  IN WHICH THE PREMISES APPLIED FOR IS LOCATED. SUCH APPEAL SHALL
    14  BE UPON PETITION OF THE AGGRIEVED PARTY, WHO SHALL SERVE A COPY
    15  THEREOF UPON THE BOARD, WHEREUPON A HEARING SHALL BE HELD UPON
    16  THE PETITION BY THE COURT UPON TEN DAYS' NOTICE TO THE BOARD.
    17  THE SAID APPEAL SHALL ACT AS A SUPERSEDEAS UNLESS UPON
    18  SUFFICIENT CAUSE SHOWN THE COURT SHALL DETERMINE OTHERWISE. THE
    19  COURT SHALL HEAR THE APPLICATION DE NOVO ON QUESTIONS OF FACT,
    20  ADMINISTRATIVE DISCRETION AND SUCH OTHER MATTERS AS ARE
    21  INVOLVED, AT SUCH TIME AS IT SHALL FIX, OF WHICH NOTICE SHALL BE
    22  GIVEN TO THE BOARD. THE COURT SHALL EITHER SUSTAIN OR OVER-RULE
    23  THE ACTION OF THE BOARD AND EITHER ORDER OR DENY THE ISSUANCE OF
    24  A NEW LICENSE OR THE RENEWAL OR TRANSFER OF THE LICENSE TO THE
    25  APPLICANT.
    26     Section 2 4.  The act is amended by adding a section to read:  <--
    27     Section 472.4.  Privately-Owned Public Golf Courses.--(a)
    28  Any privately-owned public golf course licensee may, upon
    29  application to and the approval of the board, contract with a
    30  concessionaire to operate a restaurant or provide food service
    19890H1946B4323                 - 11 -

     1  and, in the case of a restaurant liquor licensee, sell liquor
     2  and malt and brewed beverages or, in the case of a malt and
     3  brewed beverage dispenser licensee, sell malt and brewed
     4  beverages pursuant to the provisions of this act pertaining to
     5  such licensees.
     6     (b)  The board shall approve the application of any
     7  privately-owned public golf course licensee to contract with a
     8  concessionaire pursuant to subsection (a) upon being satisfied
     9  that the concessionaire is of good repute and financially
    10  responsible.
    11     Section 3 5.  Section 493 of the act is amended by adding a    <--
    12  clause to read:
    13     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    14  Brewed Beverages and Licensees.--The term "licensee," when used
    15  in this section, shall mean those persons licensed under the
    16  provisions of Article IV, unless the context clearly indicates
    17  otherwise.
    18     It shall be unlawful--
    19     * * *
    20     (28)  Consumption of Liquor or Malt or Brewed Beverages While
    21  Tending Bar. For any licensee, his servants, agents or employes,
    22  to consume liquor or malt or brewed beverages while tending bar
    23  or otherwise serving liquor or malt or brewed beverages. No
    24  action shall be taken against a licensee under this clause
    25  unless the licensee is the individual consuming liquor or malt
    26  or brewed beverages in violation of this clause.
    27     Section 4 6.  The act is amended by adding a section to read:  <--
    28     Section 499.  Premises to be Vacated by Patrons.--(a)  Except
    29  as provided for in subsection (b), all patrons of a licensee
    30  shall be required to leave that part of the premises habitually
    19890H1946B4323                 - 12 -

     1  used for the serving of food LIQUOR OR MALT OR BREWED BEVERAGES   <--
     2  to guests or patrons not later than one-half hour after the time
     3  the licensee is required by this act to cease serving liquor or
     4  malt or brewed beverages, and shall not be permitted to have any
     5  previously served liquor or malt or brewed beverages in their
     6  possession, nor shall they be permitted to remove any previously
     7  served liquor or malt or brewed beverages from that part of the
     8  premises.
     9     (b)  A licensee may serve food between the hours of two
    10  o'clock antemeridian and seven o'clock antemeridian on any day
    11  if such licensee either possesses or is eligible to purchase a
    12  Sunday Sales Permit in accordance with section 406 (relating to
    13  sales by liquor licensees, restrictions), and receives an
    14  extended hours food license. The board shall establish an annual
    15  fee for the extended hours food license which shall not exceed
    16  $50. FIFTY DOLLARS ($50).                                         <--
    17     (c)  Any owner of licensed premises who violates this section
    18  for the first offense commits a summary offense and shall, upon
    19  conviction, be sentenced to pay a fine of not more than three
    20  hundred dollars ($300) or to imprisonment for not more than
    21  ninety (90) days, or both, and for the second or any subsequent
    22  offense commits a misdemeanor of the third degree and shall,
    23  upon conviction, be sentenced to pay a fine of not more than two
    24  thousand five hundred dollars ($2,500) or to imprisonment for
    25  not more than one (1) year, or both.
    26     Section 5.  This act shall take effect in 60 days.             <--
    27     SECTION 7.  SECTION 507 OF THE ACT IS AMENDED TO READ:         <--
    28     SECTION 507.  HEARINGS ON LICENSES AND REFUSALS.--(A)  THE
    29  BOARD MAY OF ITS OWN MOTION, AND SHALL UPON THE WRITTEN REQUEST
    30  OF THE ENFORCEMENT BUREAU OR OF ANY APPLICANT FOR LICENSE OR FOR
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     1  RENEWAL THEREOF WHOSE APPLICATION FOR SUCH LICENSE OR RENEWAL
     2  HAS BEEN REFUSED, FIX A TIME AND PLACE FOR HEARING OF SUCH
     3  APPLICATION OR RENEWAL, NOTICE OF WHICH HEARING SHALL BE SENT TO
     4  THE BUREAU AND TO THE APPLICANT, BY REGISTERED MAIL, AT THE
     5  ADDRESS GIVEN IN HIS APPLICATION. SUCH HEARING SHALL BE BEFORE
     6  [THE BOARD, A MEMBER THEREOF, OR] AN [EXAMINER DESIGNATED BY THE
     7  BOARD] ADMINISTRATIVE LAW JUDGE.
     8     (B)  AT SUCH HEARING, THE BOARD SHALL PRESENT ITS REASONS FOR
     9  ITS REFUSAL OR WITHHOLDING OF SUCH LICENSE OR RENEWAL THEREOF OR
    10  THE BUREAU SHALL PRESENT ITS OBJECTIONS TO THE GRANTING OR
    11  RENEWAL OF THE LICENSE, AS THE CASE MAY BE. THE APPLICANT MAY
    12  APPEAR IN PERSON OR BY COUNSEL, MAY CROSS-EXAMINE THE WITNESSES
    13  FOR THE BOARD OR THE BUREAU, AND MAY PRESENT EVIDENCE WHICH
    14  SHALL LIKEWISE BE SUBJECT TO CROSS-EXAMINATION BY THE BOARD OR
    15  THE BUREAU. SUCH HEARING SHALL BE STENOGRAPHICALLY RECORDED. THE
    16  [EXAMINER] ADMINISTRATIVE LAW JUDGE SHALL THEREAFTER MAKE A
    17  REPORT, INCLUDING THE JUDGE'S RECOMMENDATION, TO THE BOARD IN
    18  EACH CASE. THE BOARD SHALL THEREAFTER GRANT OR REFUSE THE
    19  LICENSE OR RENEWAL THEREOF.
    20     (C)  HEARINGS AND ADJUDICATIONS PURSUANT TO THIS SECTION
    21  SHALL BE IN ACCORDANCE WITH 2 PA.C.S. CH. 5 SUBCH. A (RELATING
    22  TO PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES).
    23     SECTION 8.  BY NOVEMBER 13, 1991, THE PENNSYLVANIA LIQUOR
    24  CONTROL BOARD SHALL DEPOSIT WITH THE LEGISLATIVE REFERENCE
    25  BUREAU A NOTICE EXPLAINING THE IMPLEMENTATION OF THIS ACT.
    26     SECTION 9.  UPON APPROVAL OF THE PENNSYLVANIA LIQUOR CONTROL
    27  BOARD, EQUIPMENT, MATERIALS AND FUNDS UTILIZED IN CONNECTION
    28  WITH THE FUNCTIONS OF HEARING EXAMINERS ARE TRANSFERRED TO THE
    29  OFFICE OF ADMINISTRATIVE LAW JUDGE.
    30     SECTION 10.  HEARING EXAMINERS SHALL HAVE 30 DAYS FOLLOWING
    19890H1946B4323                 - 14 -

     1  THE EFFECTIVE DATE OF THIS SECTION TO COMPLETE WORK ON HEARINGS
     2  CONDUCTED PRIOR TO THE EFFECTIVE DATE OF THIS ACT.
     3     SECTION 11.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:            <--
     4         (1)  SECTIONS 1 (SECTIONS 212, 402, AND 433), 3 (SECTION
     5     464), 7 (SECTION 507), 9 AND 10 SHALL TAKE EFFECT JANUARY 1,
     6     1992.
     7         (2)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
     8     DAYS.
     9     SECTION 11.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:            <--
    10         (1)  SECTIONS 1 (SECTION 104), 2 (SECTION 447) AND THIS
    11     SECTION SHALL TAKE EFFECT IMMEDIATELY.
    12         (2)  SECTIONS 1 (SECTIONS 212, 402 AND 433), 3 (SECTION
    13     464), 7 (SECTION 507), 9 AND 10 SHALL TAKE EFFECT JANUARY 1,
    14     1992.
    15         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    16     DAYS.










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