Bill to provide relief to licensees and boost local economies passes PA House
Rep. Steve Malagari July 6, 2023 | 4:33 PM
SOUDERTON, July 6 – State Rep. Steve Malagari, D-Montgomery, today announced that his bill to address the challenges faced by liquor licensees and promote economic growth has passed the house.
"The passage of H.B. 1096 in the House represents a significant step toward supporting our licensees and stimulating economic development," Malagari said. "This legislation provides a valuable opportunity for licensees to adapt to changing market conditions, while also addressing the shortage of restaurant licenses in our counties. It's a win-win situation that supports our local businesses and strengthens our communities."
Malagari said the legislation would re-open the application window for hotel liquor license conversions and offer a much-needed opportunity for licensees to unburden themselves of licenses they no longer require.
Act 125, enacted by the General Assembly in 2020, initially allowed approximately 350 licensees to apply for the conversion of their hotel liquor licenses issued prior to 1949 to restaurant liquor licenses for a nominal fee of $30,000. The measure was designed to address the challenges faced by businesses unable to transfer their licenses when closing down due to the license being tied to the specific location.
However, unforeseen circumstances resulting from the COVID-19 pandemic prevented many licensees from meeting the application deadline. To provide necessary relief and support, Malagari's legislation seeks to reopen the original application window for hotels licensed prior to 1949. Additionally, the bill would introduce a second category of hotel licensees issued before 1965 that qualify for the room exemption, granting them the opportunity to apply for conversion during a specified time frame.
The primary objective of the legislation, Malagari said, is to assist licensees in converting their outdated hotel licenses, enabling them to eliminate the burden of liquor licenses they no longer require. Simultaneously, the bill aims to address the shortage of restaurant licenses prevalent in various counties, thereby promoting economic growth and providing increased opportunities for entrepreneurs in the hospitality sector.
Malagari added that allowing licensees to convert their licenses gives them the flexibility to adapt their businesses to the changing market landscape. It encourages innovation and revitalization within the industry, allowing former hotel establishments to transform into new and thriving culinary destinations. Furthermore, he said, by expanding the availability of restaurant licenses, his bill would support the growth of local economies, attract investment and drive job creation.
This bill will now proceed to the Senate. If passed there, Malagari said, the legislation promises to create a more conducive environment for licensees and pave the way for a prosperous future for the hospitality industry.
###