PRINTER'S NO. 2837

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2278 Session of 1993


        INTRODUCED BY M. N. WRIGHT, O'BRIEN, HENNESSEY, BELFANTI,
           TRELLO, WOZNIAK, GIGLIOTTI AND SCRIMENTI, NOVEMBER 24, 1993

        REFERRED TO COMMITTEE ON LIQUOR CONTROL, NOVEMBER 24, 1993

                                     AN ACT

     1  Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
     2     reenacted, "An act relating to alcoholic liquors, alcohol and
     3     malt and brewed beverages; amending, revising, consolidating
     4     and 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     defining "catering hall"; providing for the issuance of
    18     restaurant liquor licenses to catering halls; and further
    19     providing for sales by liquor licensees, for local option and
    20     for unlawful acts.

    21     The General Assembly of the Commonwealth of Pennsylvania
    22  hereby enacts as follows:
    23     Section 1.  Section 102 of the act of April 12, 1951 (P.L.90,
    24  No.21), known as the Liquor Code, reenacted and amended June 29,
    25  1987 (P.L.32, No.14), is amended by adding a definition to read:
    26     Section 102.  Definitions.--The following words or phrases,


     1  unless the context clearly indicates otherwise, shall have the
     2  meanings ascribed to them in this section:
     3     * * *
     4     "Catering hall" shall mean a reputable place operated by
     5  responsible persons of good reputation and exclusively used to
     6  serve food prepared on the premises for the accommodation of
     7  groups who are using the facility by prior arrangement, made at
     8  least twenty-four hours in advance of an event, and which is
     9  paid for by such groups.
    10     * * *
    11     Section 2.  The heading of section 401 of the act is amended
    12  and the section is amended by adding a subsection to read:
    13     Section 401.  Authority to Issue Liquor Licenses to Hotels,
    14  Restaurants [and], Clubs and Catering Halls.--* * *
    15     (c)  The board shall have authority to issue a restaurant
    16  liquor license to catering halls as defined in this act. For
    17  purposes of this act, events for which a catering hall may be
    18  used shall include, but not be limited to, banquets, parties and
    19  receptions. The restaurant liquor license issued under this
    20  section shall be subject to all conditions and restrictions
    21  applicable to restaurant liquor licensees, except as otherwise
    22  provided by law.
    23     Section 3.  Sections 404, 406, 406.1, 407, 472, 491(6) and
    24  493(25) of the act are amended to read:
    25     Section 404.  Issuance of Hotel, Restaurant and Club Liquor
    26  Licenses.--Upon receipt of the application, the proper fees and
    27  bond, and upon being satisfied of the truth of the statements in
    28  the application that the applicant is the only person in any
    29  manner pecuniarily interested in the business so asked to be
    30  licensed and that no other person will be in any manner
    19930H2278B2837                  - 2 -

     1  pecuniarily interested therein during the continuance of the
     2  license, except as hereinafter permitted, and that the applicant
     3  is a person of good repute, that the premises applied for meet
     4  all the requirements of this act and the regulations of the
     5  board, that the applicant seeks a license for a hotel,
     6  restaurant [or], club or catering hall, as defined in this act,
     7  and that the issuance of such license is not prohibited by any
     8  of the provisions of this act, the board shall, in the case of a
     9  hotel [or], restaurant or catering hall, grant and issue to the
    10  applicant a liquor license, and in the case of a club may, in
    11  its discretion, issue or refuse a license: Provided, however,
    12  That in the case of any new license or the transfer of any
    13  license to a new location the board may, in its discretion,
    14  grant or refuse such new license or transfer if such place
    15  proposed to be licensed is within three hundred feet of any
    16  church, hospital, charitable institution, school, or public
    17  playground, or if such new license or transfer is applied for a
    18  place which is within two hundred feet of any other premises
    19  which is licensed by the board: And provided further, That the
    20  board shall refuse any application for a new license or the
    21  transfer of any license to a new location if, in the board's
    22  opinion, such new license or transfer would be detrimental to
    23  the welfare, health, peace and morals of the inhabitants of the
    24  neighborhood within a radius of five hundred feet of the place
    25  proposed to be licensed: And provided further, That the board
    26  shall not issue new licenses in any license district more than
    27  twice each license year, effective from specific dates fixed by
    28  the board, and new licenses shall not be granted, except for
    29  hotels as defined in this act, unless the application therefor
    30  shall have been filed at least thirty days before the effective
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     1  date of the license: And provided further, That nothing herein
     2  contained shall prohibit the board from issuing a new license
     3  for the balance of any unexpired term in any license district to
     4  any applicant in such district, who shall have become eligible
     5  to hold such license as the result of legislative enactment,
     6  when such enactment shall have taken place during the license
     7  term of that district for which application is made or within
     8  the thirty days immediately preceding such term, nor shall
     9  anything herein contained prohibit the board from issuing at any
    10  time a new license for an airport restaurant, or municipal golf
    11  course, as defined in section 461 of this act, for the balance
    12  of the unexpired license term in any license district: And
    13  provided further, That the board shall have the discretion to
    14  refuse a license to any person or to any corporation,
    15  partnership or association if such person, or any officer or
    16  director of such corporation, or any member or partner of such
    17  partnership or association shall have been convicted or found
    18  guilty of a felony within a period of five years immediately
    19  preceding the date of application for the said license. The
    20  board shall refuse any application for a new license or the
    21  transfer of any license to a location where the sale of liquid
    22  fuels or oil is conducted.
    23     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
    24  (1)  Every hotel, restaurant or club liquor licensee may sell
    25  liquor and malt or brewed beverages by the glass, open bottle or
    26  other container, and in any mixture, for consumption only in
    27  that part of the hotel [or], restaurant or catering hall
    28  habitually used for the serving of food to guests or patrons, or
    29  in a bowling alley that is immediately adjacent to and under the
    30  same roof as a restaurant when no minors are present, unless
    19930H2278B2837                  - 4 -

     1  minors who are present are under proper supervision as defined
     2  in section 493, in the bowling alley, and in the case of hotels,
     3  to guests, and in the case of clubs, to members, in their
     4  private rooms in the hotel or club. No club licensee nor its
     5  officers, servants, agents or employes, other than one holding a
     6  catering license, shall sell any liquor or malt or brewed
     7  beverages to any person except a member of the club. In the case
     8  of a restaurant located in a hotel which is not operated by the
     9  owner of the hotel and which is licensed to sell liquor under
    10  this act, liquor and malt or brewed beverages may be sold for
    11  consumption in that part of the restaurant habitually used for
    12  the serving of meals to patrons and also to guests in private
    13  guest rooms in the hotel. For the purpose of this paragraph, any
    14  person who is an active member of another club which is
    15  chartered by the same state or national organization shall have
    16  the same rights and privileges as members of the particular
    17  club. For the purpose of this paragraph, any person who is an
    18  active member of any volunteer firefighting company, association
    19  or group of this Commonwealth, whether incorporated or
    20  unincorporated, shall upon the approval of any club composed of
    21  volunteer firemen licensed under this act, have the same social
    22  rights and privileges as members of such licensed club. For the
    23  purposes of this paragraph, the term "active member" shall not
    24  include a social member.
    25     (1.1)  Catering halls to which a restaurant liquor license is
    26  issued shall only sell liquor and malt and brewed beverages for
    27  consumption on its premises during events for which the facility
    28  is being used, and only to a person associated with such events.
    29     (2)  Hotel and restaurant liquor licensees, airport
    30  restaurant liquor licensees, municipal golf course restaurant
    19930H2278B2837                  - 5 -

     1  liquor licensees and privately-owned public golf course
     2  restaurant licensees may sell liquor and malt or brewed
     3  beverages only after seven o'clock antemeridian of any day until
     4  two o'clock antemeridian of the following day, except Sunday,
     5  and except as hereinafter provided, may sell liquor and malt or
     6  brewed beverages on Sunday between the hours of twelve o'clock
     7  midnight and two o'clock antemeridian.
     8     (3)  Hotel and restaurant liquor licensees, airport
     9  restaurant liquor licensees, municipal golf course restaurant
    10  liquor licensees and privately-owned public golf course
    11  restaurant licensees whose sales of food and nonalcoholic
    12  beverages are equal to forty per centum or more of the combined
    13  gross sales of both food and alcoholic beverages may sell liquor
    14  and malt or brewed beverages on Sunday between the hours of
    15  eleven o'clock antemeridian and two o'clock antemeridian Monday
    16  upon purchase of a special annual permit from the board at a fee
    17  of two hundred dollars ($200.00) per year, which shall be in
    18  addition to any other license fees.
    19     (4)  Hotel and restaurant liquor licensees, airport
    20  restaurant liquor licensees, municipal golf course restaurant
    21  liquor licensees and privately-owned public golf course
    22  restaurant licensees which do not qualify for and purchase such
    23  annual special permit, their servants, agents or employes may
    24  sell liquor and malt or brewed beverages only after seven
    25  o'clock antemeridian of any day and until two o'clock
    26  antemeridian of the following day, and shall not sell after two
    27  o'clock antemeridian on Sunday. No hotel, restaurant and public
    28  service liquor licensee which does not have the special annual
    29  permit for Sunday sales shall sell liquor and malt or brewed
    30  beverages after two o'clock antemeridian on any day on which a
    19930H2278B2837                  - 6 -

     1  general, municipal, special or primary election is being held
     2  until one hour after the time fixed by law for closing the
     3  polls, except, that, in the case of a special election for
     4  members of the General Assembly or members of the Congress of
     5  the United States, when such special election is held on other
     6  than a primary, municipal or general election day, licensees in
     7  those Legislative or Congressional Districts may make such
     8  sales, as though the day were not a special election day. No
     9  club licensee or its servants, agents or employes may sell
    10  liquor or malt or brewed beverages between the hours of three
    11  o'clock antemeridian and seven o'clock antemeridian on any day.
    12  No public service liquor licensee or its servants, agents, or
    13  employes may sell liquor or malt or brewed beverages between the
    14  hours of two o'clock antemeridian and seven o'clock antemeridian
    15  on any day.
    16     (5)  Any hotel, restaurant, club or public service liquor
    17  licensee may, by giving notice to the board, advance by one hour
    18  the hours herein prescribed as those during which liquor and
    19  malt or brewed beverages may be sold during such part of the
    20  year when daylight saving time is being observed generally in
    21  the municipality in which the place of business of such licensee
    22  is located. Any licensee who elects to operate his place of
    23  business in accordance with daylight saving time shall post a
    24  conspicuous notice in his place of business that he is operating
    25  in accordance with daylight saving time.
    26     (6)  Notwithstanding any provisions to the contrary, whenever
    27  the thirty-first day of December or Saint Patrick's Day falls on
    28  a Sunday, every hotel or restaurant liquor licensee, their
    29  servants, agents or employes may sell liquor and malt or brewed
    30  beverages on any such day after one o'clock postmeridian and
    19930H2278B2837                  - 7 -

     1  until two o'clock antemeridian of the following day.
     2     (b)  Such Sunday sales by hotel and restaurant liquor
     3  licensees which qualify for and purchase such annual special
     4  permit, their servants, agents and employes, shall be made
     5  subject to the restrictions imposed by the act on sales by
     6  hotels and restaurants for sales on weekdays as well as those
     7  restrictions set forth in this section.
     8     Section 406.1.  Secondary Service Area.--Upon application of
     9  any restaurant, hotel, club, catering hall, any stadium as
    10  described in section 408.9 or municipal golf course liquor
    11  licensee, and payment of the appropriate fee, the board may
    12  approve a secondary service area by extending the licensed
    13  premises to include one additional permanent structure with
    14  dimensions of at least one hundred seventy-five square feet,
    15  enclosed on three sides and having adequate seating. Such
    16  secondary service area must be located on property having a
    17  minimum area of one (1) acre, and must be on land which is
    18  immediate, abutting, adjacent or contiguous to the licensed
    19  premises with no intervening public thoroughfare. In any stadium
    20  as described in section 408.9, only malt or brewed beverages may
    21  be served. There shall be no requirement that the secondary
    22  service area be physically connected to the original licensed
    23  premises. Notwithstanding 40 Pa. Code § 7.21(c)(3), the licensee
    24  shall be permitted to store, serve, sell or dispense food,
    25  liquor and malt or brewed beverages at the board approved
    26  secondary service area.
    27     Section 407.  Sale of Malt or Brewed Beverages by Liquor
    28  Licensees.--Every liquor license issued to a hotel, restaurant,
    29  club, catering hall or a railroad, pullman or steamship company
    30  under this subdivision (A) for the sale of liquor shall
    19930H2278B2837                  - 8 -

     1  authorize the licensee to sell malt or brewed beverages at the
     2  same places but subject to the same restrictions and penalties
     3  as apply to sales of liquor, except that licensees other than
     4  clubs or catering halls may sell malt or brewed beverages for
     5  consumption off the premises where sold in quantities of not
     6  more than one hundred ninety-two fluid ounces in a single sale
     7  to one person. No licensee under this subdivision (A) shall at
     8  the same time be the holder of any other class of license,
     9  except a retail dispenser's license authorizing the sale of malt
    10  or brewed beverages only.
    11     Section 472.  Local Option.--In any municipality or any part
    12  of a municipality where such municipality is split so that each
    13  part thereof is separated by another municipality, an election
    14  may be held on the date of the primary election immediately
    15  preceding any municipal election, but not oftener than once in
    16  four years, to determine the will of the electors with respect
    17  to the granting of liquor licenses to hotels, restaurants [and],
    18  clubs and catering halls, not oftener than once in four years,
    19  to determine the will of the electors with respect to the
    20  granting of liquor licenses to privately-owned private golf
    21  courses, not oftener than once in four years, to determine the
    22  will of the electors with respect to the granting of licenses to
    23  retail dispensers of malt and brewed beverages, not oftener than
    24  once in four years, to determine the will of the electors with
    25  respect to granting of licenses to wholesale distributors and
    26  importing distributors, or not more than once in four years, to
    27  determine the will of the electors with respect to the
    28  establishment, operation and maintenance by the board of
    29  Pennsylvania liquor stores, within the limits of such
    30  municipality or part of a split municipality, under the
    19930H2278B2837                  - 9 -

     1  provisions of this act: Provided, however, Where an election
     2  shall have been held at the primary preceding a municipal
     3  election in any year, another election may be held under the
     4  provisions of this act at the primary occurring the fourth year
     5  after such prior election: And provided further, That an
     6  election on the question of establishing and operating a State
     7  liquor store shall be initiated only in those municipalities, or
     8  that part of a split municipality that shall have voted against
     9  the granting of liquor licenses; and that an election on the
    10  question of granting wholesale distributor and importing
    11  distributor licenses shall be initiated only in those
    12  municipalities or parts of split municipalities that shall have
    13  at a previous election voted against the granting of dispenser's
    14  licenses. Whenever electors equal to at least twenty-five per
    15  centum of the highest vote cast for any office in the
    16  municipality or part of a split municipality at the last
    17  preceding general election shall file a petition with the county
    18  board of elections of the county for a referendum on the
    19  question of granting any of said classes of licenses or the
    20  establishment of Pennsylvania liquor stores, the said county
    21  board of elections shall cause a question to be placed on the
    22  ballots or on the voting machine board and submitted at the
    23  primary immediately preceding the municipal election. Separate
    24  petitions must be filed for each question to be voted on. Said
    25  proceedings shall be in the manner and subject to the provisions
    26  of the election laws which relate to the signing, filing and
    27  adjudication of nomination petitions, insofar as such provisions
    28  are applicable.
    29     When the question is in respect to the granting of liquor
    30  licenses, it shall be in the following form:
    19930H2278B2837                 - 10 -

     1     Do you favor the granting of liquor licenses
     2     for the sale of liquor in........................  Yes
     3     of..............................................?  No
     4     When the question is in respect to the granting of liquor
     5  licenses, for privately-owned private golf courses, it shall be
     6  in the following form:
     7     Do you favor the granting of liquor licenses for
     8     privately-owned private golf courses for the sale
     9     of liquor in.................by..................  Yes
    10     of..............................................?  No
    11     When the question is in respect to the granting of licenses
    12  to retail dispensers of malt and brewed beverages, it shall be
    13  in the following form:
    14     Do you favor the granting of malt and brewed
    15     beverage retail dispenser licenses for
    16     consumption on premises where sold in the........  Yes
    17     of..............................................?  No
    18     When the question is in respect to the granting of licenses
    19  to wholesale distributors of malt or brewed beverages and
    20  importing distributors, it shall be in the following form:
    21     Do you favor the granting of malt and brewed
    22     beverage wholesale distributor's and importing
    23     distributor's licenses not for consumption on
    24     premises where sold in the.......................  Yes
    25     of..............................................?  No
    26     When the question is in respect to the establishment,
    27  operation and maintenance of Pennsylvania liquor stores it shall
    28  be in the following form:
    29     Do you favor the establishment, operation
    30     and maintenance of Pennsylvania liquor
    19930H2278B2837                 - 11 -

     1     stores in the....................................  Yes
     2     of..............................................?  No
     3     In case of a tie vote, the status quo shall obtain. If a
     4  majority of the voting electors on any such question vote "yes,"
     5  then liquor licenses shall be granted by the board to hotels,
     6  restaurants and clubs, or liquor licenses shall be granted by
     7  the board to privately-owned private golf courses, or malt and
     8  brewed beverage retail dispenser licenses or wholesale
     9  distributor's and importing distributor's license for the sale
    10  of malt or brewed beverages shall be granted by the board, or
    11  the board may establish, operate and maintain Pennsylvania
    12  liquor stores, as the case may be, in such municipality or part
    13  of a split municipality, as provided by this act; but if a
    14  majority of the electors voting on any such question vote "no,"
    15  then the board shall have no power to grant or to renew upon
    16  their expiration any licenses of the class so voted upon in such
    17  municipality or part of a split municipality; or if the negative
    18  vote is on the question in respect to the establishment,
    19  operation and maintenance of Pennsylvania liquor stores, the
    20  board shall not open and operate a Pennsylvania liquor store in
    21  such municipality or part of a split municipality, nor continue
    22  to operate a then existing Pennsylvania liquor store in the
    23  municipality or part of a split municipality for more than two
    24  years thereafter or after the expiration of the term of the
    25  lease on the premises occupied by such store, whichever period
    26  is less, unless and until at a later election a majority of the
    27  voting electors vote "yes" on such question.
    28     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
    29  Liquor Licensees.--
    30     It shall be unlawful--
    19930H2278B2837                 - 12 -

     1     * * *
     2     (6)  Sales by Restaurant and Hotel Liquor Licensees. For any
     3  restaurant or hotel licensee, his servants, agents or employes,
     4  to sell any liquor or malt or brewed beverages for consumption
     5  on the licensed premises except in a room or rooms or place on
     6  the licensed premises at all times accessible to the use and
     7  accommodation of the general public, or in the case of a
     8  catering hall to which a restaurant liquor license has been
     9  issued, accessible to the use and accommodation of the group
    10  using the facility, but this section shall not be interpreted to
    11  prohibit a restaurant liquor licensee from providing private
    12  affairs the primary function of which is for catering only to
    13  weddings or special occasions arranged twenty-four hours in
    14  advance, nor to prohibit a hotel licensee, or a restaurant
    15  licensee when the restaurant is located in a hotel, from selling
    16  liquor or malt or brewed beverages in any room of such hotel
    17  occupied by a bona fide guest or to prohibit a restaurant
    18  licensee from selling liquor or malt or brewed beverages in a
    19  bowling alley when no minors are present where the restaurant
    20  and bowling alley are immediately adjacent and under the same
    21  roof.
    22     * * *
    23     Section 493.  Unlawful Acts Relative to Liquor, Malt and
    24  Brewed Beverages and Licensees.--The term "licensee," when used
    25  in this section, shall mean those persons licensed under the
    26  provisions of Article IV, unless the context clearly indicates
    27  otherwise.
    28     It shall be unlawful--
    29     * * *
    30     (25)  Employment in Licensed Places. For any licensee or his
    19930H2278B2837                 - 13 -

     1  agent, to employ or permit the employment of any person at his
     2  licensed hotel, restaurant, catering hall or eating place for
     3  the purpose of enticing customers, or to encourage them to drink
     4  liquor, or make assignations for improper purposes.
     5     Any person violating the provisions of this clause shall be
     6  guilty of a misdemeanor and, upon conviction of the same, shall
     7  be sentenced to pay a fine of not less than one hundred dollars
     8  ($100), nor more than five hundred dollars ($500), for each and
     9  every person so employed, or undergo an imprisonment of not less
    10  than three (3) months, nor more than one (1) year, or either or
    11  both, at the discretion of the court having jurisdiction of the
    12  case. The administrative law judge shall have the power to
    13  revoke or refuse licenses for violation of this clause.
    14     * * *
    15     Section 4.  This act shall take effect in 60 days.










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