PRIOR PRINTER'S NOS. 2602, 3221, 3702         PRINTER'S NO. 3759

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2088 Session of 1981


                     Report of the Committee of Conference

        To the Members of the House of Representatives and Senate:

           We, the undersigned, Committee of Conference on the part of
        the House of Representatives and Senate for the purpose of
        considering House Bill No. 2088, entitled:
        "An act amending the act of April 12, 1951 (P.L.90, No.21),
        entitled 'An act relating to alcoholic liquors, alcohol and malt
        and brewed beverages; * * * prescribing penalties and
        forfeitures; providing for local option, and repealing existing
        laws,' further providing FOR THE APPROVAL OF SECONDARY SERVICE
        AREAS AND for the sale of wine by holders of a limited winery
        license,"


        respectfully submit the following bill as our report:

                                           STANFORD I. LEHR

                                           HARRY E. BOWSER

                                           BERNARD J. DOMBROWSKI

                (Committee on the part of the House of Representatives.)

                                           STEWART J. GREENLEAF

                                           FRANK J. O'CONNELL

                                           JAMES R. KELLEY

                                  (Committee on the part of the Senate.)



                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
     2     act relating to alcoholic liquors, alcohol and malt and
     3     brewed beverages; amending, revising, consolidating and
     4     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 law,"
    17     defining "golf course" and exempting certain privately-owned
    18     public golf courses from licensing quotas, further providing
    19     for the approval of secondary service areas, providing for
    20     trade show and convention licenses in cities of the third
    21     class, and further providing for the sale of wine by holders
    22     of a limited winery license.

    23     The General Assembly of the Commonwealth of Pennsylvania
    24  hereby enacts as follows:
    25     Section 1.  Section 102, act of April 12, 1951 (P.L.90,
    26  No.21), known as the "Liquor Code," is amended by adding a
    27  definition to read:
    28     Section 102.  Definitions.--The following words or phrases,
    29  unless the context clearly indicates otherwise, shall have the
    30  meanings ascribed to them in this section:
    31     * * *
    32     "Golf course" shall mean a course having a minimum of nine
    33  holes and a total length of at least twenty-five hundred yards.
    34     * * *
    35     Section 2.  Subsection (a) of section 406 of the act, amended
    36  February 18, 1982 (P.L.40, No.24), is amended to read:
    37     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
    38  (1)  Every hotel, restaurant or club liquor licensee may sell
    39  liquor and malt or brewed beverages by the glass, open bottle or

     1  other container, and in any mixture, for consumption only in
     2  that part of the hotel or restaurant habitually used for the
     3  serving of food to guests or patrons, or in a bowling alley that
     4  is immediately adjacent to and under the same roof as a
     5  restaurant when no minors are present in the bowling alley, and
     6  in the case of hotels, to guests, and in the case of clubs, to
     7  members, in their private rooms in the hotel or club. No club
     8  licensee nor its officers, servants, agents or employes, other
     9  than one holding a catering license, shall sell any liquor or
    10  malt or brewed beverages to any person except a member of the
    11  club. In the case of a restaurant located in a hotel which is
    12  not operated by the owner of the hotel and which is licensed to
    13  sell liquor under this act, liquor and malt or brewed beverages
    14  may be sold for consumption in that part of the restaurant
    15  habitually used for the serving of meals to patrons and also to
    16  guests in private guest rooms in the hotel. For the purpose of
    17  this paragraph, any person who is an active member of another
    18  club which is chartered by the same state or national
    19  organization shall have the same rights and privileges as
    20  members of the particular club. For the purpose of this
    21  paragraph, any person who is an active member of any volunteer
    22  firefighting company, association or group of this Commonwealth,
    23  whether incorporated or unincorporated, shall upon the approval
    24  of any club composed of volunteer firemen licensed under this
    25  act, have the same social rights and privileges as members of
    26  such licensed club. For the purposes of this paragraph, the term
    27  "active member" shall not include a social member.
    28     (2)  Hotel and restaurant liquor licensees, airport
    29  restaurant liquor licensees [and], municipal golf course
    30  restaurant liquor licensees, privately-owned public golf course
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     1  restaurant licensees may sell liquor and malt or brewed
     2  beverages only after seven o'clock antemeridian of any day until
     3  two o'clock antemeridian of the following day, except Sunday,
     4  and except as hereinafter provided, may sell liquor and malt or
     5  brewed beverages on Sunday between the hours of twelve o'clock
     6  midnight and two o'clock antemeridian.
     7     (3)  Hotel and restaurant liquor licensees, airport
     8  restaurant liquor licensees [and], municipal golf course
     9  restaurant liquor licensees, privately-owned public golf course
    10  restaurant licensees whose sales of food and nonalcoholic
    11  beverages are equal to forty per centum or more of the combined
    12  gross sales of both food and alcoholic beverages may sell liquor
    13  and malt or brewed beverages on Sunday between the hours of one
    14  o'clock postmeridian and two o'clock antemeridian Monday upon
    15  purchase of a special annual permit from the board at a fee of
    16  two hundred dollars ($200.00) per year, which shall be in
    17  addition to any other license fees.
    18     (4)  Hotel and restaurant liquor licensees, airport
    19  restaurant liquor licensees [and], municipal golf course
    20  restaurant liquor licensees, privately-owned public golf course
    21  restaurant licensees which do not qualify for and purchase such
    22  annual special permit, their servants, agents or employes may
    23  sell liquor and malt or brewed beverages only after seven
    24  o'clock antemeridian of any day and until two o'clock
    25  antemeridian of the following day, and shall not sell after two
    26  o'clock antemeridian on Sunday. No hotel, restaurant and public
    27  service liquor licensee which does not have the special annual
    28  permit for Sunday sales shall sell liquor and malt or brewed
    29  beverages after two o'clock antemeridian on any day on which a
    30  general, municipal, special or primary election is being held
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     1  until one hour after the time fixed by law for closing the
     2  polls, except, that, in the case of a special election for
     3  members of the General Assembly or members of the Congress of
     4  the United States, when such special election is held on other
     5  than a primary, municipal or general election day, licensees in
     6  those Legislative or Congressional Districts may make such
     7  sales, as though the day were not a special election day. No
     8  club licensee or its servants, agents or employes may sell
     9  liquor or malt or brewed beverages between the hours of three
    10  o'clock antemeridian and seven o'clock antemeridian on any day.
    11  No public service liquor licensee or its servants, agents, or
    12  employes may sell liquor or malt or brewed beverages between the
    13  hours of two o'clock antemeridian and seven o'clock antemeridian
    14  on any day.
    15     (5)  Any hotel, restaurant, club or public service liquor
    16  licensee may, by giving notice to the board, advance by one hour
    17  the hours herein prescribed as those during which liquor and
    18  malt or brewed beverages may be sold during such part of the
    19  year when daylight saving time is being observed generally in
    20  the municipality in which the place of business of such licensee
    21  is located. Any licensee who elects to operate his place of
    22  business in accordance with daylight saving time shall post a
    23  conspicuous notice in his place of business that he is operating
    24  in accordance with daylight saving time.
    25     (6)  Notwithstanding any provisions to the contrary, whenever
    26  the thirty-first day of December falls on a Sunday, every hotel
    27  or restaurant liquor licensee, their servants, agents or
    28  employes may sell liquor and malt or brewed beverages on any
    29  such day after one o'clock postmeridian and until two o'clock
    30  antemeridian of the following day.
    19810H2088B3759                  - 4 -

     1     * * *
     2     Section 3.  The act is amended by adding sections to read:
     3     Section 406.1.  Secondary Service Area.--Upon application of
     4  any restaurant, hotel, club or municipal golf course liquor
     5  licensee, and payment of the appropriate fee, the board may
     6  approve a secondary service area by extending the licensed
     7  premises to include one additional permanent structure with
     8  dimensions of at least one hundred seventy-five square feet,
     9  enclosed on three sides and having adequate seating. Such
    10  secondary service area must be located on property having a
    11  minimum area of one (1) acre, and must be on land which is
    12  immediate, abutting, adjacent or contiguous to the licensed
    13  premises with no intervening public thoroughfare. There shall be
    14  no requirement that the secondary service area be physically
    15  connected to the original licensed premises. Notwithstanding 40
    16  Pa. Code § 7.21(c)(3), the licensee shall be permitted to store,
    17  serve, sell or dispense food, liquor and malt or brewed
    18  beverages at the board approved secondary service area.
    19     Section 408.8.  Trade Shows and Convention Licenses; Cities
    20  of the Third Class.--(a)  The board is authorized to issue a
    21  restaurant liquor license to a nonprofit corporation or to a
    22  concessionaire selected by such nonprofit corporation in any
    23  city of the third class for the retail sale of liquor and malt
    24  or brewed beverages by the glass, open bottles or other
    25  container or in any mixture for consumption on any city-owned
    26  premises customarily used or available for use for trade shows
    27  and conventions with a capacity within the premises for one
    28  thousand people or more: Provided, however, That no sale or
    29  consumption of such beverages shall take place on any portions
    30  of such premises other than service areas approved by the board.
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     1     (b)  An application for the issuance may be filed at any time
     2  by a nonprofit corporation operating such a facility for trade
     3  shows or conventions or by a concessionaire selected by such
     4  nonprofit corporation. Any such license granted under these
     5  provisions need not conform to the requirements of the act
     6  relating to restaurant liquor licenses, except as provided
     7  herein. Applicant shall submit such other information as the
     8  board may require. Applications shall be in writing on forms
     9  prescribed by the board and shall be signed and submitted to the
    10  board by the applicant. The filing fee which shall accompany the
    11  license application shall be thirty dollars ($30).
    12     (c)  Upon receipt of the application in proper form and the
    13  application fee and upon being satisfied that the applicant is
    14  of good repute and financially responsible and that the proposed
    15  place of business is proper, the board shall issue the
    16  restaurant liquor license for the trade show or convention
    17  facility.
    18     (d)  The license shall be issued for the same period of time
    19  as provided for restaurant licenses and shall be renewed as
    20  provided in section 402. The license shall terminate upon
    21  revocation by the board or upon termination and nonrenewal of
    22  the contract between the concessionaire and such nonprofit
    23  corporation.
    24     (e)  The annual fee for a trade show or convention facility
    25  shall be as provided in section 405 and shall accompany the
    26  application for the license. Whenever and if a concessionaire's
    27  contract terminates and is not renewed the license shall be
    28  returned to the board for cancellation but the board may issue a
    29  restaurant liquor license to a subsequent application.
    30     (f)  The penal sum of the bond which shall be filed by an
    19810H2088B3759                  - 6 -

     1  applicant for a trade show or convention facility pursuant to
     2  section 465 shall be two thousand dollars ($2,000).
     3     (g)  Sales by the holder of a trade show or convention
     4  facility license may be made except to those persons prohibited
     5  under clause (1) of section 493 on board-approved service areas
     6  of the premises of such a facility for trade shows or
     7  conventions during the hours in which the trade show or
     8  convention is being held and up to one hour before the scheduled
     9  opening and one hour after the scheduled closing, but such sales
    10  may not be made beyond the hours expressed in the code for the
    11  sale of liquor and malt or brewed beverages by restaurant
    12  licensees: Provided, however, That such sales may be made on
    13  Sunday between the hours of one o'clock postmeridian and ten
    14  o'clock postmeridian, irrespective of the volume of food sales.
    15     (h)  Whenever a contract with a concessionaire is terminated
    16  prior to the expiration date provided in the contract between
    17  such nonprofit corporation and the concessionaire and is not
    18  renewed, such nonprofit corporation may apply to the board for
    19  the issuance of a restaurant liquor license or may select and
    20  certify to the board a different concessionaire which
    21  concessionaire shall apply to the board for issuance of a
    22  restaurant liquor license. If the applicant meets the
    23  requirements of the board as herein provided, the issuance shall
    24  thereupon occur. If any such trade show or convention license is
    25  revoked, the board shall issue a new license to any qualified
    26  applicant without regard to the prohibition in section 471,
    27  against the grant of a license at the same premises for a period
    28  of at least one year.
    29     (i)  Licenses issued under the provisions of this section
    30  shall not be subject to the quota restrictions of section 461.
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     1     (j)  Trade show or convention licenses shall not be subject
     2  to the provisions of section 404 except insofar as they relate
     3  to the reputation of the applicant not to the provisions of
     4  sections 461 and 463, nor to the provisions of clause (10) of
     5  section 493.
     6     (k)  Sales under such licenses (including food sales) may be
     7  limited by the licensee to patrons of the events scheduled in
     8  the facility for trade shows or conventions. Provided food is
     9  offered for sale when sales are made under the license, such
    10  food may be catered from off the premises.
    11     Section 4.  Subsection (a) of section 461 of the act, amended
    12  December 12, 1980 (P.L.1195, No.221), is amended and subsections
    13  are added to read:
    14     Section 461.  Limiting Number of Retail Licenses To Be Issued
    15  In Each Municipality.--(a)  No licenses shall hereafter be
    16  granted by the board for the retail sale of malt or brewed
    17  beverages or the retail sale of liquor and malt or brewed
    18  beverages in excess of one of such licenses of any class for
    19  each two thousand inhabitants in any municipality, exclusive of
    20  licenses granted to airport restaurants, municipal golf courses,
    21  [and] hotels, privately-owned public golf courses, as defined in
    22  this section, and clubs; but at least one such license may be
    23  granted in each municipality and in each part of a municipality
    24  where such municipality is split so that each part thereof is
    25  separated by another municipality, except in municipalities
    26  where the electors have voted against the granting of any retail
    27  licenses and except in that part of a split municipality where
    28  the electors have voted against the granting of any retail
    29  licenses. Nothing contained in this section shall be construed
    30  as denying the right to the board to renew or to transfer
    19810H2088B3759                  - 8 -

     1  existing retail licenses of any class notwithstanding that the
     2  number of such licensed places in a municipality shall exceed
     3  the limitation hereinbefore prescribed; but where such number
     4  exceeds the limitation prescribed by this section, no new
     5  license, except for hotels, municipal golf courses, [and]
     6  airport restaurants, privately-owned public golf courses and
     7  privately-owned private golf course licensees, as defined in
     8  this section, shall be granted so long as said limitation is
     9  exceeded.
    10     * * *
    11     (e.1)  "Privately-owned public golf course," as used in this
    12  section shall mean the restaurant facilities at any privately-
    13  owned golf course open for public accommodation.
    14     (f)  The provisions of subsection (a) which apply to
    15  privately-owned public golf courses shall not apply to the owner
    16  of such course who has, within three years prior to the
    17  effective date of this amendatory act or at any time after the
    18  effective date of this amendatory act, sold or transferred a
    19  regularly issued license for such course.
    20     Section 5.  Section 505.2 of the act, amended March 27, 1972
    21  (P.L.153, No.57), is amended to read:
    22     Section 505.2.  Limited Wineries.--Holders of a limited
    23  winery license may:
    24     (1)  Produce wines only from fruits grown in Pennsylvania in
    25  an amount not to exceed one hundred thousand (100,000) gallons
    26  per year.
    27     (2)  Sell wine produced by the limited winery or purchased in
    28  bulk in bond from another Pennsylvania limited winery on the
    29  licensed premises, under such conditions and regulations as the
    30  board may enforce, to the Liquor Control Board, to individuals
    19810H2088B3759                  - 9 -

     1  and to hotel, restaurant, club and public service liquor
     2  licensees, and to Pennsylvania winery licensees: Provided, That
     3  a limited winery shall not, in any calendar year, purchase wine
     4  produced by other limited wineries in an amount in excess of
     5  fifty per centum of the wine produced by the purchasing limited
     6  winery in the preceding calendar year.
     7     Section 6.  This act shall take effect in 60 days.
















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