PRIOR PRINTER'S NOS. 828, 1594                PRINTER'S NO. 1867

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 730 Session of 1983


                     Report of the Committee of Conference

        To the Members of the Senate and House of Representatives:

           We, the undersigned, Committee of Conference on the part of
        the Senate and House of Representatives for the purpose of
        considering Senate Bill No. 730, 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; amending, revising, consolidating and
        changing the laws relating thereto; regulating and restricting
        the manufacture, purchase, sale, possession, consumption,
        importation, transportation, furnishing, holding in bond,
        holding in storage, traffic in and use of alcoholic liquors,
        alcohol and malt and brewed beverages and the persons engaged or
        employed therein; * * * providing for local option, and
        repealing existing laws,' extending the hours of operation for
        certain holders of Sunday sales permits; AUTHORIZING THE BOARD
        TO ISSUE CERTAIN LICENSES; FURTHER PROVIDING FOR LICENSEE'S
        ADVERTISEMENTS; AND FURTHER PERMITTING BOWLING ALLEYS TO SELL
        LIQUOR, MALT OR BREWED BEVERAGES WHEN MINORS ARE PRESENT UNDER
        PROPER SUPERVISION,"

        respectfully submit the following bill as our report:

                                           STEWART J. GREENLEAF

                                           FRANK J. O'CONNELL

                                           EDWARD J. ZEMPRELLI

                                  (Committee on the part of the Senate.)

                                           THOMAS J. FEE

                                           BRIAN D. CLARK

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


                                     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 laws,"
    17     permitting certain licensees, distillers or manufacturers to
    18     sponsor certain sporting tournaments or contests; extending
    19     the hours of operation for certain holders of Sunday sales
    20     permits; authorizing the board to issue certain licenses;
    21     further providing for licensee's advertisements; and further
    22     permitting bowling alleys and hotels to sell liquor, malt or
    23     brewed beverages when minors are present under proper
    24     supervision.

    25     The General Assembly of the Commonwealth of Pennsylvania
    26  hereby enacts as follows:
    27     Section 1.  Sections 406(a)(1) and (3) and 406.1 of the act
    28  of April 12, 1951 (P.L.90, No.21), known as the Liquor Code,
    29  amended or added December 17, 1982 (P.L.1390, No.319), are
    30  amended to read:
    31     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
    32  (1)  Every hotel, restaurant or club liquor licensee may sell
    33  liquor and malt or brewed beverages by the glass, open bottle or
    34  other container, and in any mixture, for consumption only in
    35  that part of the hotel or restaurant habitually used for the
    36  serving of food to guests or patrons, or in a bowling alley that
    37  is immediately adjacent to and under the same roof as a
    38  restaurant when no minors are present, unless minors who are
    39  present are under proper supervision as defined in section 493,
    40  in the bowling alley, and in the case of hotels, to guests, and


     1  in the case of clubs, to members, in their private rooms in the
     2  hotel or club. No club licensee nor its officers, servants,
     3  agents or employes, other than one holding a catering license,
     4  shall sell any liquor or malt or brewed beverages to any person
     5  except a member of the club. In the case of a restaurant located
     6  in a hotel which is not operated by the owner of the hotel and
     7  which is licensed to sell liquor under this act, liquor and malt
     8  or brewed beverages may be sold for consumption in that part of
     9  the restaurant habitually used for the serving of meals to
    10  patrons and also to guests in private guest rooms in the hotel.
    11  For the purpose of this paragraph, any person who is an active
    12  member of another club which is chartered by the same state or
    13  national organization shall have the same rights and privileges
    14  as members of the particular club. For the purpose of this
    15  paragraph, any person who is an active member of any volunteer
    16  firefighting company, association or group of this Commonwealth,
    17  whether incorporated or unincorporated, shall upon the approval
    18  of any club composed of volunteer firemen licensed under this
    19  act, have the same social rights and privileges as members of
    20  such licensed club. For the purposes of this paragraph, the term
    21  "active member" shall not include a social member.
    22     * * *
    23     (3)  Hotel and restaurant liquor licensees, airport
    24  restaurant liquor licensees, municipal golf course restaurant
    25  liquor licensees and privately-owned public golf course
    26  restaurant licensees whose sales of food and nonalcoholic
    27  beverages are equal to forty per centum or more of the combined
    28  gross sales of both food and alcoholic beverages may sell liquor
    29  and malt or brewed beverages on Sunday between the hours of [one
    30  o'clock postmeridian] eleven o'clock antemeridian and two
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     1  o'clock antemeridian Monday upon purchase of a special annual
     2  permit from the board at a fee of two hundred dollars ($200.00)
     3  per year, which shall be in addition to any other license fees.
     4     * * *
     5     Section 406.1.  Secondary Service Area.--Upon application of
     6  any restaurant, hotel, club, any stadium as described in section
     7  408.9 or municipal golf course liquor licensee, and payment of
     8  the appropriate fee, the board may approve a secondary service
     9  area by extending the licensed premises to include one
    10  additional permanent structure with dimensions of at least one
    11  hundred seventy-five square feet, enclosed on three sides and
    12  having adequate seating. Such secondary service area must be
    13  located on property having a minimum area of one (1) acre, and
    14  must be on land which is immediate, abutting, adjacent or
    15  contiguous to the licensed premises with no intervening public
    16  thoroughfare. In any stadium as described in section 408.9, only
    17  malt or brewed beverages may be served. There shall be no
    18  requirement that the secondary service area be physically
    19  connected to the original licensed premises. Notwithstanding 40
    20  Pa. Code § 7.21(c)(3), the licensee shall be permitted to store,
    21  serve, sell or dispense food, liquor and malt or brewed
    22  beverages at the board approved secondary service area.
    23     Section 2.  The act is amended by adding a section to read:
    24     Section 408.9.  Stadium and Restaurant Licenses in Third
    25  Class Cities.--The board is authorized to issue one restaurant
    26  license in any city of the third class for the retail sale of
    27  liquor and malt or brewed beverages by the glass, open bottles
    28  or other containers, and in any mixture, for consumption in any
    29  restaurant which is located not more than one thousand feet from
    30  a stadium which has a seating capacity of five thousand persons
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     1  situate on the same lot or parcel of land not less than twenty-
     2  five acres in size with no intervening public thoroughfare
     3  between the restaurant and the stadium.
     4     Section 3.  Section 432(f) of the act, added June 24, 1982
     5  (P.L.624, No.176), is amended to read:
     6     Section 432.  Malt and Brewed Beverages Retail Licenses.--
     7  * * *
     8     (f)  Hotel, eating places, or municipal golf course retail
     9  dispenser licensees whose sales of food and nonalcoholic
    10  beverages are equal to forty per centum (40%) or more of the
    11  combined gross sales of both food and malt or brewed beverages
    12  may sell malt or brewed beverages between the hours of [one
    13  o'clock postmeridian] eleven o'clock antemeridian on Sunday and
    14  two o'clock antemeridian on Monday upon purchase of a special
    15  annual permit from the board at a fee of two hundred dollars
    16  ($200.00) per year, which shall be in addition to any other
    17  license fees. Provided further, the holder of such special
    18  annual permit may sell malt or brewed beverages after seven
    19  o'clock antemeridian and until two o'clock antemeridian of the
    20  following day, on any day on which a general, municipal, special
    21  or primary election is being held.
    22     Section 4.  Sections 442(b) and 463(a.2) of the act, amended
    23  or added December 12, 1980 (P.L.1195, No.221), is amended to
    24  read:
    25     Section 442.  Retail Dispensers' Restrictions on Purchases
    26  and Sales.--* * *
    27     (b)  No retail dispenser shall sell any malt or brewed
    28  beverages for consumption on the licensed premises except in a
    29  room or rooms or place on the licensed premises at all times
    30  accessible to the use and accommodation of the general public,
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     1  but this section shall not be interpreted to prohibit a retail
     2  dispenser from selling malt or brewed beverages in a hotel or
     3  club house in any room of such hotel or club house occupied by a
     4  bona fide registered guest or member entitled to purchase the
     5  same or to prohibit a retail dispenser from selling malt or
     6  brewed beverages in a bowling alley when no minors are present,
     7  unless minors who are present are under proper supervision as
     8  defined in section 493, where the licensed premises and bowling
     9  alley are immediately adjacent and under the same roof.
    10     * * *
    11     Section 463.  Places of Amusement Not To Be Licensed;
    12  Penalty.--* * *
    13     (a.2)  Nothing contained in this act shall be construed to
    14  prevent the holder of a hotel, restaurant liquor or malt and
    15  brewed beverage license from selling liquor and malt or brewed
    16  beverages in a bowling alley, or other recreational areas
    17  including, but not limited to, game rooms and video arcade areas
    18  of hotels, when no minors are present, unless minors who are
    19  present are under proper supervision as defined in section 493,
    20  where the restaurant [and], bowling alley, or other recreational
    21  areas including, but not limited to, game rooms and video arcade
    22  areas of hotels, are immediately adjacent and under the same
    23  roof. The restaurant liquor or malt and brewed beverage licensee
    24  aforementioned shall be subject to all the conditions and
    25  restrictions applicable to such restaurant licenses except the
    26  above prohibition against any passageway or communication
    27  between a licensed premise and a place of amusement.
    28     * * *
    29     Section 5.  The act is amended by adding a section to read:
    30     Section 476.  Sporting Tournaments.--(a)  Any distiller,
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     1  manufacturer or retail or club licensee, either alone or in
     2  combination, may sponsor, hold or permit to be held, on the
     3  licensed premises or on premises contiguous and adjacent
     4  thereto, a dart, billiard, bowling, shuffleboard, rings or card
     5  tournament or contest without having to obtain any permits
     6  therefor.
     7     (b)  The distiller, manufacturer or retail or club licensee
     8  may directly or indirectly advertise a dart, billiard, bowling,
     9  shuffleboard, rings or card tournament or contest and may
    10  directly or indirectly advertise, offer, award or permit the
    11  award, on the licensed premises, of trophies, prizes or premiums
    12  therefor.
    13     (c)  Cash moneys or negotiable instruments of any type or
    14  kind, or trophies, prizes or premiums may be offered or awarded,
    15  traded or received by any person at such dart, billiard,
    16  bowling, shuffleboard, rings or card tournaments or contests.
    17     (d)  Alcoholic beverages may be served, sold, serviced or
    18  delivered and the same shall be permitted, in or within the area
    19  in which such dart, billiard, bowling, shuffleboard, rings or
    20  card tournament or contest is held, and a bar or service bar may
    21  be installed in the lobby of the licensed premises, passageway
    22  or entrance immediately adjacent thereto.
    23     Section 6.  Section 493(20) of the act is amended and clauses
    24  are added to read:
    25     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    26  Brewed Beverages and Licensees.--The term "licensee," when used
    27  in this section, shall mean those persons licensed under the
    28  provisions of Article IV, unless the context clearly indicates
    29  otherwise.
    30     It shall be unlawful--
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     1     * * *
     2     (20)  (i)  Retail Liquor and Retail Malt or Brewed Beverages
     3  Licensee's Inside Advertisements. For any retail liquor or
     4  retail malt or brewed beverages licensee, to display or permit
     5  the display in the show window or doorways of his licensed
     6  premises, any placard or sign advertising the brands of liquor
     7  or malt or brewed beverages produced by any one manufacturer, if
     8  the total display area of any such placard or sign advertising
     9  the products of any one manufacturer exceeds three hundred
    10  square inches. Nothing herein shall prohibit a licensee from
    11  displaying inside his licensed premises point of sale displays
    12  advertising brand names of products sold by him, other than a
    13  window or door display: Provided, That the total cost of all
    14  such point of sale advertising matter relating to [products] any
    15  one brand of any one manufacturer shall not exceed the sum of
    16  [twenty dollars ($20)] seventy dollars ($70) at any one time,
    17  and no single piece of advertising shall exceed a cost of [ten
    18  dollars ($10)] thirty-five dollars ($35). All such advertising
    19  material, including the window and door signs, may be furnished
    20  by a manufacturer, distributor or importing distributor. The
    21  restrictions on advertising set forth in subclause (ii) and in
    22  clauses (20.1) and (20.2) shall also apply to this subclause.
    23     (ii)  Cooperative Advertising. No distributor or importing
    24  distributor, directly or indirectly, independent or otherwise,
    25  shall, except by prior written agreement, be required to
    26  participate with a manufacturer in the purchase of any
    27  advertising of a brand name product in any name, in any form,
    28  whether it be radio, television, newspaper, magazine or
    29  otherwise.
    30     (20.1)  Manufacturer Shall Not Require Advertising. For a
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     1  manufacturer to require a distributor or importing distributor
     2  to purchase any type of advertising.
     3     (20.2)  Advertising Shall Be Ordered and Authorized in
     4  Advance. For any advertising to be done on behalf of a
     5  distributor or importing distributor which was not ordered and
     6  authorized in advance by the distributor or importing
     7  distributor.
     8     * * *
     9     Section 7.  This act shall take effect immediately.














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