Subchapter K. ECONOMIC DEVELOPMENT LICENSES
Sec.
3.101. Economic development licenses.
3.102. Approval for economic development license.
3.103. Filing criteria for provisional economic development license.
3.104. Municipal standing before the Board.
3.105. Quarterly filing of applications and application hearings.
3.106. Criteria for issuance of a permanent economic development license.
3.107. Failure to meet the minimum requirement.
3.108. Subsequent transfers.
Source The provisions of this Subchapter K adopted November 12, 2004, effective November 13, 2004, 34 Pa.B. 6139, unless otherwise noted.
§ 3.101. Economic development licenses.
(a) Issuance of license. The Board may issue restaurant and eating place retail dispenser licenses without regard to county quota restrictions for the purpose of economic development in a municipality for premises situated within any of the following:
(1) A KOZ established under the authority of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act (73 P. S. § § 820.101—820.1309).
(2) An EZ, as designated by the Department of Community and Economic Development in accordance with the Neighborhood Assistance Act (62 P. S. § § 2081—2089).
(3) A municipality that has approved the issuance of a restaurant or eating place retail dispenser license for the purpose of local economic development.
(b) Definitions. The following words and terms, when used in this subchapter, have the following meanings:
EZ—Enterprise zone.
KOZ—Keystone opportunity zone.
§ 3.102. Approval for economic development license.
(a) An applicant shall request written certification from the KOZ local coordinator or EZ administrator that the proposed licensed premises is situated in a zone or an area designated for economic development.
(b) An applicant shall request approval from the municipality for a KOZ, EZ or local economic development license.
(1) The municipality will hold at least one public hearing on the applicant’s request for an economic development license.
(2) The municipality shall, within 45 days of a request for approval, render a decision by ordinance or resolution to approve or disapprove the applicant’s request for an economic development license.
(3) If the municipality finds that the issuance of the license would promote economic development, it may approve the request. The municipality shall refuse the request if it finds that the approval of the request would adversely affect the welfare, health, peace and morals of the municipality or its residents.
(4) If the receiving municipality denies the applicant’s request for approval of an economic development license, the applicant may appeal the decision of the municipality to the court of common pleas in the county in which the proposed licensed premises is located.
§ 3.103. Filing criteria for provisional economic development license.
A license application may be filed with the Board for premises situated within a KOZ, an EZ or a municipality that has approved the issuance of a license for the purpose of local economic development, provided that the applicant submits the following with its application:
(1) The required initial application surcharge fee as determined by county class, the appropriate license fee and application-processing fee.
(2) Written certification from the KOZ local coordinator or EZ administrator or from the municipality that the proposed licensed premises is situated in a zone or an area designated for economic development.
(3) Municipal approval in the form of an ordinance or resolution, including the applicant’s name and exact address, approving the issuance of an economic development license.
§ 3.104. Municipal standing before the Board.
(a) The receiving municipality may file a protest against the issuance of a license for economic development into its municipality and the municipality shall have standing in a hearing to present testimony in support of or against the issuance of a license.
(b) If the Board receives a protest from the receiving municipality, the Board may in its discretion refuse an application for an economic development license.
(c) A protest must be filed within 30 days of the filing of the application.
§ 3.105. Quarterly filing of applications and application hearings.
(a) Issuance of economic development licenses is limited to two licenses per calendar year in counties of the first through fourth class and one license per calendar year in counties of the fifth through eighth class.
(b) Quarterly filing periods are established for all counties as follows:
1st Quarter—January 1 through March 31
2nd Quarter—April 1 through June 30
3rd Quarter—July 1 through September 30
4th Quarter—October 1 through December 31
(c) At the end of the first quarter, every properly filed license application in a county will be subject to an administrative hearing before a Board hearing examiner in accordance with section 464 of the Liquor Code (47 P. S. § 4-464). Second quarter applications will be held in abeyance until after hearings are held for first quarter applications and a determination is made by the Board as to the availability of a license within the county.
(d) If a vacancy continues to exist in a county after hearings are held and a determination has been made by the Board, properly filed applications for the next quarter will be scheduled for hearings.
(e) In addition to any objections to, or support of, an application for the issuance of a license, an applicant shall provide evidence at the administrative hearing that it has exhausted reasonable means to find a suitable license within the existing county quota law. Evidence includes the following:
(1) Evidence that the applicant, or the applicant’s agent, made contact with existing restaurant liquor licensees, if a restaurant liquor economic development license is sought, or existing eating place retail dispenser licensees, if an eating place retail dispenser economic development license is sought, in the county.
(i) The purpose of the contact is to inquire as to the availability of the licensee’s license for purchase.
(ii) In counties of the first through fourth class, the number of licensees contacted by the applicant, or the applicant’s agent, must be equal to or greater than 50% of the existing restaurant liquor or eating place retail dispenser licensees in the county.
(iii) In counties of the fifth through eighth class, the number of licensees contacted by the applicant, or the applicant’s agent, must be equal to or greater than 75% of the existing restaurant liquor or eating place retail dispenser licensees in the county.
(2) Evidence that the applicant, or the applicant’s agent, has offered to purchase restaurant liquor or eating place retail dispenser licenses in the county that are in safekeeping at the time the application is filed with the Board, including the offered and requested amounts.
(3) An explanation as to why it is not economically feasible for the applicant business to pay the amount requested for an existing restaurant liquor or eating place retail dispenser license. The applicant shall provide evidence of the following factors:
(i) The applicant’s capital and financial resources.
(ii) The applicant’s projected revenue and expenses for its business, as well as actual revenue and expenses if the business is currently in operation.
(iii) Other factors the applicant considered when deciding that obtaining a liquor license in the marketplace was not economically feasible.
(4) A written estimation, with supporting documentation, of the expected economic benefits to the municipality if the application is granted.
(f) If the applicant, or any of the applicant’s stockholders, directors, officers or members, owns, in whole or in part, a restaurant liquor or eating place retail dispenser license which is in safekeeping with the Board, the Board will refuse the application. This only applies if the license in safekeeping is in the same county as the license applied for.
(g) Upon approval of an application, the applicant will receive a provisional license for 120 days, exclusive of periods of safekeeping.
(h) In the event of an appeal from the Board’s decision regarding the issuance or renewal of an economic development license, the appeal will act as a supersedeas and will preclude the processing of additional applications for vacancies in that county.
Authority The provisions of this § 3.105 amended under section 207(i) of the Liquor Code (47 P. S. § 2-207(i)).
Source The provisions of this § 3.105 amended September 18, 2015, effective September 19, 2015, 45 Pa.B. 5681. Immediately preceding text appears at serial page (376812).
§ 3.106. Criteria for issuance of a permanent economic development license.
(a) After 90 days from the date of issuance of the provisional license, the licensee may file an application with the Board for a permanent license. The licensee shall certify that for 90 consecutive days since the granting of the provisional license, the licensee’s sales of food and nonalcoholic beverages were equal to or greater than 70% of the combined gross sales of food and alcoholic beverages.
(b) Upon submission of certification, the Board will issue a permanent economic development license.
(c) The economic development license will be governed by the license district in which it is situated for the purpose of validation and renewal. Validation and renewal applications will require submission of certification that during the license year immediately preceding its application for renewal or validation, the licensee met or exceeded the 70% minimum requirement.
(d) An appeal of the Board’s decision refusing to grant or renew a license will not act as a supersedeas if the decision is based, in whole or in part, on the licensee’s failure to demonstrate that its sales of food and nonalcoholic beverages were at least 70% of its combined gross sales of food and alcoholic beverages.
§ 3.107. Failure to meet the minimum requirement.
(a) Failure to meet the 70% minimum requirement as set forth in this subchapter, as submitted upon renewal or validation application will result in an investigation by the Bureau of Licensing. If the investigation discloses that the licensee failed to meet the 70% minimum requirement, the license will be cancelled.
(b) An appeal of the Board’s decision refusing to grant or renew a license will not act as a supersedeas if the decision is based, in whole or in part, on the licensee’s failure to demonstrate that its food and nonalcoholic beverages were at least 70% of its combined gross sales of food and alcoholic beverages.
§ 3.108. Subsequent transfers.
Neither an economic development license nor a provisional license is transferable with regard to ownership or location.
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