[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.grossmcginley.com\/resources\/blog\/liquor-licenses-in-pa-transferring-an-h-to-r\/#BlogPosting","mainEntityOfPage":"https:\/\/www.grossmcginley.com\/resources\/blog\/liquor-licenses-in-pa-transferring-an-h-to-r\/","headline":"Liquor Licenses in PA: Transferring an \u201cH\u201d to \u201cR\u201d","name":"Liquor Licenses in PA: Transferring an \u201cH\u201d to \u201cR\u201d","description":"During the last year here at Gross McGinley, we\u2019ve understandably spent a lot of our time writing\u00a0liquor […]","datePublished":"2021-03-29","dateModified":"2021-10-18","author":{"@type":"Person","@id":"https:\/\/www.grossmcginley.com\/resources\/author\/jason-ulrich\/#Person","name":"Jason Ulrich","url":"https:\/\/www.grossmcginley.com\/resources\/author\/jason-ulrich\/","identifier":50,"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/Jason-A-Ulrich-headshot-150x150.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/Jason-A-Ulrich-headshot-150x150.jpg","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Gross McGinley, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/03\/liquor-law-allentown-pa.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/03\/liquor-law-allentown-pa.jpg","height":800,"width":800},"url":"https:\/\/www.grossmcginley.com\/resources\/blog\/liquor-licenses-in-pa-transferring-an-h-to-r\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY","name":"Liquor Licenses in PA: Transferring an \"H\" to \"R\"","description":"While impacting only approximately 300 businesses in PA, Act 125 of 2020 provides the opportunity to transfer an \"H\" (Hotel) liquor license to an \"R\" (restaurant) liquor license. \n\nBusiness Attorney Thomas E. Reilly, Jr. shares insights about the new PA law and what businesses looking to transfer their licenses can expect and should consider. \n\nTo learn more, please visit GrossMcGinley.com.","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/zr5LG7QDmQY\/default.jpg","https:\/\/i.ytimg.com\/vi\/zr5LG7QDmQY\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/zr5LG7QDmQY\/hqdefault.jpg"],"uploadDate":"2021-03-15T14:22:37+00:00","duration":"PT5M24S","embedUrl":"https:\/\/www.youtube.com\/embed\/zr5LG7QDmQY","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCOYR3tHLYW5VxFjUoxeMQzA#Organization","url":"https:\/\/www.youtube.com\/channel\/UCOYR3tHLYW5VxFjUoxeMQzA","name":"Gross McGinley","description":"Gross McGinley, LLP offers a powerhouse legal team serving individuals & businesses in the Greater Lehigh Valley & Monroe County. Our team of attorneys offer a full range of legal services including banking, tax, business, & employment law, litigation, divorce & family law, intellectual property, insurance defense, medical malpractice defense, municipal law, real estate, estate planning, criminal defense, & sports law. Our services are provided by a team of dedicated people offering innovative solutions with professional service. Rooted in Lehigh Valley for nearly 50 years, we emphasize the importance of community leadership & support. \n\nThe content found in these resources is for informational reference use only & is not considered legal advice. Laws at all levels of government change frequently & the information found here may be or become outdated. It is recommended to consult your attorney for the most up-to-date information regarding current laws & legal matters.\n","logo":{"url":"https:\/\/yt3.ggpht.com\/dvCtFoacLzBb2fnN1EnRLyYMmzaIT8stgK3-UrJ2u9eYfkwRkLXEVf3dEh3ZLrU-3K_JLZUwCA=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":547}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=zr5LG7QDmQY#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":5}]},"about":["Blog"],"wordCount":665,"keywords":["Business Law","liquor law"],"articleBody":"During the last year here at Gross McGinley, we\u2019ve understandably spent a lot of our time writing\u00a0liquor license blogs\u00a0addressing issues associated with restaurants and bars arising from the pandemic.\u00a0 However, because owners of bars and restaurants typically have what are known as \u201cR\u201d (Restaurant) or \u201cE\u201d (Eating Place) licenses, we\u2019ve neglected to spend a lot of time addressing some of the other license types in Pennsylvania. Read on to find out about the possible transfer of a \u201cH\u201d (Hotel) license and what\u2019s changing in light of new PA liquor law.Provisions of Act 125 of 2020Governor Wolf recently signed into law\u00a0Act 125 of 2020,\u00a0which has a direct impact on a very specific subset of \u201cH\u201d (Hotel) licenses. Specifically, this law allows licensees to convert their \u201cH\u201d into \u201cR\u201d licenses.\u00a0 As \u201cR\u201d licenses do not require\u00a0rentable guest rooms for overnight stay, and are considerably more transferable, many \u201cH\u201d license holders might be interested in this conversion. However, there are some very unique limitations on this conversion.It is important to note that due to legislation back in 2006, there was a class of \u201cH\u201d licenses which, if the license holder applied to PLCB, were able to remove the requirement for overnight stay guest rooms (generally \u201cH\u201d licenses that were in existence prior to 1949).\u00a0 If the \u201cH\u201d license holder had done this, then the \u201cH\u201d license functioned exactly like an \u201cR\u201d license.\u00a0 Ironically, despite these \u201cH\u201d licenses functioning as bars and restaurants, they were still classified as \u201cH\u201d licenses. Moreover, due to Pennsylvania\u2019s quota system, these oddball \u201cH\u201d licenses were never counted in the county \u201cR\u201d license quotas.Act 125 is designed to specifically address this issue and permits the outright change in classification of the license from \u201cH\u201d to \u201cR\u201d.\u00a0 Upon payment of a $30,000 fee at the time of Application on PLCB+, the \u201cH\u201d license can be converted to an \u201cR\u201d license if:\tThe License complies with the statutory requirements in section\u00a047 Pa.C.S.A. \u00a0\u00a7 461(c)(8)\u00a0of the Liquor Code regarding the prior age and applicability of an \u201cH\u201d license\tThe license holder applied for an exemption under section\u00a047 Pa.C.S.A. \u00a0\u00a7 461(c)(9)\u00a0or\u00a047 Pa.C.S.A. \u00a0\u00a7 461(c)(9.1)\u00a0of the Liquor Code prior to January 1, 2019, and\tThe license is not located in a city of the first class (Philadelphia).If those conditions are met, and an application is submitted, PLCB will review to determine if there are any outstanding objections to the license renewal.\u00a0 If no objections are outstanding, then the license conversion will be approved.\u00a0 Additionally, per the PLCB, there is no need for the posting of a placard for this conversion process.Considerations when transferring an \u201cH\u201d to an \u201cR\u201d liquor licenseWhile this may seem like an easy decision if you hold one of these \u201cH\u201d licenses, there a few factors you should weigh as to whether this is of value to you.First, there is a hefty, one-time fee of $30,000 which is due upon submission of the Application for Conversion on PLCB+.Second, if you sell the liquor license within five years of the date of conversion, there is an\u00a0additional transfer fee\u00a0due to the PLCB in the amount of the greater of 25% of the sale price or $30,000.Third and finally, under\u00a047 P.S. \u00a7 4-461(c)(9.2), the option for conversion will expire on January 24, 2023, so this option is time limited.When weighing these factors and determining if conversion is right for your business, we strongly suggest you consult with an accountant, real estate appraiser and attorney. Our Business Services Group is happy to assist you with your PA liquor license transfer. As always, feel free to reach out to us should you have any questions and would like some guidance on whether you qualify for this type of conversion, or, if you would like to discuss the option.Attorneys\u00a0Jason A. Ulrich\u00a0and\u00a0Thomas E. Reilly, Jr.\u00a0practice in Gross McGinley\u2019s Business Services Group, providing legal counsel to local, regional and national businesses."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Resources","item":"https:\/\/www.grossmcginley.com\/resources\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.grossmcginley.com\/resources\/\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Liquor Licenses in PA: Transferring an \u201cH\u201d to \u201cR\u201d","item":"https:\/\/www.grossmcginley.com\/resources\/blog\/liquor-licenses-in-pa-transferring-an-h-to-r\/#breadcrumbitem"}]}]