Citizenship Requirements of the Liquor Code

65 Pa. D. & C.2d 431
CourtPennsylvania Department of Justice
DecidedApril 30, 1974
DocketOfficial Opinion No. 23
StatusPublished

This text of 65 Pa. D. & C.2d 431 (Citizenship Requirements of the Liquor Code) is published on Counsel Stack Legal Research, covering Pennsylvania Department of Justice primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Citizenship Requirements of the Liquor Code, 65 Pa. D. & C.2d 431 (Pa. 1974).

Opinion

PACKEL, Attorney General,

It has been brought to our attention that certain corporate licensees of the Liquor Control Board may be employing resident aliens as officers of such corporations in apparent contravention of the United States citizenship requirements of the Liquor Code of April 12,1951, P. L. 90, as amended, 47 PS §4-403(c). Question is now raised whether or not the Liquor Control Board should invoke its statutory authority to revoke any and all licenses held by such corporations under the provisions of the Liquor Code, secs. 4-403(a) and (c) which authorize the board to revoke licenses where a corporate licensee has an officer who is not a United States citizen. It is our opinion, and you are hereby advised that the board shall not take any action to revoke such licenses on the ground that the licensee has an officer who is a resident alien inasmuch as the citizenship requirement of the Liquor Code, 47 PS §4-403, is in contravention of Federal law, 42 U.S.C. §1981, and the Fourteenth Amendment.1

[432]*432The Liquor Code provides for a United States citizenship requirement for applicants for hotel, restaurant and club liquor licenses and establishes that subsequent violation of such standards is also grounds for revocation of a license already issued:

“(b) If the applicant is a natural person, his application must show that he is a citizen of the United States.

“(c) If the applicant is a corporation, the application must show that... all officers, directors and stockholders are citizens of the United States, and that the manager of the hotel, restaurant or club is a citizen of the United States”: 47 PS §4-403(b) and (c).

Question is now raised about the validity of such citizenship restriction in light of 42 U.S.C. §1981 and the Fourteenth Amendment of the United States Constitution.

42 U.S.C. §1981, formerly, 8 U.S.C. §41, provides as follows:

“All persons within the jurisdiction of the United States shall have . . . full and equal benefit of all laws . . . and shall be subject to like punishment, pains, licenses . . . and to no other.”

In Takahashi v. Fish and Game Commission, 334 U.S. 410, 68 S. Ct. 1138, 92 L. Ed. 1478 (1948), the court held that, although this statute was originally passed to guarantee black residents equal benefit of the laws, the language of the statute clearly guaran[433]*433tees alien residents the same rights within the States as nonalien residents. See also Whitfield v. Harges, 222 F. 745 (1915); and Martinez v. Fox Valley Bus Lines, 17 F. Supp. 576 (1936). The question must now be answered whether or not the Pennsylvania Liquor Code which, in ultimate effect, establishes two sets of standards for applicants for liquor 'licenses, one for citizens and another for aliens, can stand in light of Federal law which mandates that aliens within the jurisdiction of the United States are guaranteed the same benefits of the laws as granted to nonaliens and further provides that alien residents shall be subjected to the same licensing laws as nonaliens and to no other.

The effect of Pennsylvania’s citizenship requirement of 47 PS §4-403 is to provide for an additional requirement for alien applicants for liquor licenses: naturalization pursuant to the terms and conditions as established by the United States Congress. Yet Congress decreed in 42 U.S.C. §1981 that aliens shall not be subjected to different regulatory standards when the States choose to exercise their power to issue licenses under the State police power. 47 PS §4-403(b) and (c) inevitably and invariably conflicts with Federal law regarding the treatment and regulations of aliens as enunciated in 42 U.S.C. §1981. Under the general principle of supremacy and also under the exclusive power of Congress to legislate for the purpose of controlling immigration, see Truax v. Raich, 239 U.S. 33, 42, 36 S. Ct. 7, 60 L. Ed. 131 (1915), inconsistent State laws must yield to the wisdom of Congress, and the requirements of U. S. citizenship of 47 PS §4-403(b) and (c) for applicants for liquor licenses must be held invalid.

In addition to the provisions of 42 U.S.C. §1981, the United States Supreme Court has consistently held [434]*434that the equal protection clause of the Fourteenth Amendment is, in itself, sufficient authority to strike down State laws which discriminate against aliens. In Truax v. Raich, 239 U.S. 33, 36 S. Ct. 7, 60 L. Ed. 131 (1915), the court struck down as unconstitutional an Arizona Anti-Alien Labor Law which required that employers must employ a work force of at least 80 percent native-born citizens of the United States. In writing for the majority, Justice Hughes observed that the Fourteenth Amendment guaranteed aliens equal economic opportunity, and an attempt by the State to regulate the rights of aliens to the benefit of their non-alien residents was unconstitutional:

“ [State police power] does not go so far as to make it possible for the state to deny to lawful inhabitants, because of their race or nationality, the ordinary means of earning a livelihood. It requires no argument to show that the right to work for a living in the common occupations of the community is of the very essence of the personal freedom and opportunity that it was the purpose of the [XIV] Amendment to secure”: 239 U.S. at 41, 36 S. Ct. at 10.

“The assertion of an authority to deny to aliens the opportunity of earning a livelihood when lawfully admitted to the state would be tantamount to the assertion of the right to deny them entrance and abode, for in ordinary cases they cannot live where they cannot work”: 239 U.S. at 42, 36 S. Ct. at 11.

In the instant case, Pennsylvania law would impinge upon the economic equality of opportunity of aliens to earn a livelihood by dispensing and selling alcoholic beverages pursuant to State law, which prohibition is for the ultimate economic benefit of non-alien residents of the Commonwealth. This economic discrimination cannot stand in light of the holding of [435]*435Truax v. Raich, supra, and 47 PS §4-403(b) and (c) must be considered invalid.2

In Takahashi v. Fish and Game Commission, 334 U.S. 410, 68 S. Ct. 1138, 92 L. Ed. 1478 (1948), the Supreme Court held that the California Fish and Game Commission could not lawfully refuse to issue California resident aliens commercial fishing licenses which were otherwise available to nonalien California residents. As Justice Hugo Black observed for the majority:

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Related

Yick Wo v. Hopkins
118 U.S. 356 (Supreme Court, 1886)
Truax v. Raich
239 U.S. 33 (Supreme Court, 1915)
Takahashi v. Fish & Game Commission
334 U.S. 410 (Supreme Court, 1948)
Harisiades v. Shaughnessy
342 U.S. 580 (Supreme Court, 1951)
Graham v. Richardson
403 U.S. 365 (Supreme Court, 1971)
California v. LaRue
409 U.S. 109 (Supreme Court, 1973)
Sugarman v. Dougall
413 U.S. 634 (Supreme Court, 1973)
In Re Griffiths
413 U.S. 717 (Supreme Court, 1973)
Martinez v. Fox Valley Bus Lines, Inc.
17 F. Supp. 576 (N.D. Illinois, 1936)
Whitfield v. Hanges
222 F. 745 (Eighth Circuit, 1915)

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Bluebook (online)
65 Pa. D. & C.2d 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizenship-requirements-of-the-liquor-code-padeptjust-1974.