PRIOR PRINTER'S NOS. 1793, 2631, 3066,        PRINTER'S NO. 3972
        3470

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1527 Session of 1979


                     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. 1527, 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; * * *,' PERMITTING CERTAIN HOTEL OR
        RESTAURANT LIQUOR LICENSEES TO SELL LIQUOR AND MALT OR BREWED
        BEVERAGES ON ELECTION DAYS, further providing for penalties for
        out-of-state manufacturers of malt or brewed beverages; FURTHER
        DEFINING THE TERM 'INCORPORATED UNIT OF A NATIONAL VETERANS'
        ORGANIZATION' and making editorial changes."


        respectfully submit the following bill as our report:

                                           STANFORD I. LEHR

                                           GEORGE C. HASAY

                                           FRED TAYLOR

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

                                           JAMES R. KELLEY

                                           H. CRAIG LEWIS

                                           FRANK J. O'CONNELL

                                  (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 laws,"
    17     permitting certain hotel or restaurant liquor licensees to
    18     sell liquor and malt or brewed beverages on election days,
    19     further providing for penalties for out-of-state
    20     manufacturers of malt or brewed beverages; providing for
    21     licenses of incorporated units of national veterans'
    22     organizations; authorizing the board to transfer certain
    23     licenses to performing arts facilities; providing for certain
    24     licensees who are immediately adjacent to bowling alleys;
    25     further providing for establishments proximate to interstate
    26     highways and making editorial changes.

    27     The General Assembly of the Commonwealth of Pennsylvania
    28  hereby enacts as follows:
    29     Section 1.  Section 102, act of April 12, 1951 (P.L.90,
    30  No.21), known as the "Liquor Code," is amended by adding a
    31  definition to read:
    32     Section 102.  Definitions.--The following words or phrases,
    33  unless the context clearly indicates otherwise, shall have the
    34  meanings ascribed to them in this section:
    35     * * *
    36     "Performing arts facilities" shall mean those halls or
    37  theaters in which live musical, concert dance, ballet and
    38  legitimate play book-length productions are performed.
    39  Performing arts facilities shall not mean those halls or
    40  theaters in which burlesque shows or reviews are performed.
    41     * * *

     1     Section 2.  Subsection (a) of section 406 of the act, amended
     2  July 3, 1980 (No.88), is amended to read:
     3     Section 406.  Sales by Liquor Licensees; Restrictions.--(a)
     4  Every hotel, restaurant or club liquor licensee may sell liquor
     5  and malt or brewed beverages by the glass, open bottle or other
     6  container, and in any mixture, for consumption only in that part
     7  of the hotel or restaurant habitually used for the serving of
     8  food to guests or patrons, or in a bowling alley that is
     9  immediately adjacent to and under the same roof as a restaurant
    10  when no minors are present in the bowling alley, and in the case
    11  of hotels, to guests, and in the case of clubs, to members, in
    12  their private rooms in the hotel or club. No club licensee nor
    13  its officers, servants, agents or employes, other than one
    14  holding a catering license, shall sell any liquor or malt or
    15  brewed beverages to any person except a member of the club. In
    16  the case of a restaurant located in a hotel which is not
    17  operated by the owner of the hotel and which is licensed to sell
    18  liquor under this act, liquor and malt or brewed beverages may
    19  be sold for consumption in that part of the restaurant
    20  habitually used for the serving of meals to patrons and also to
    21  guests in private guest rooms in the hotel. For the purpose of
    22  this paragraph, any person who is an active member of another
    23  club which is chartered by the same state or national
    24  organization shall have the same rights and privileges as
    25  members of the particular club. For the purpose of this
    26  paragraph, any person who is an active member of any volunteer
    27  firefighting company, association or group of this Commonwealth,
    28  whether incorporated or unincorporated, shall upon the approval
    29  of any club composed of volunteer firemen licensed under this
    30  act, have the same social rights and privileges as members of
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     1  such licensed club. For the purposes of this paragraph, the term
     2  "active member" shall not include a social member.
     3     Hotel and restaurant liquor licensees, airport restaurant
     4  liquor licensees and municipal golf course restaurant liquor
     5  licensees may sell liquor and malt or brewed beverages only
     6  after seven o'clock antemeridian of any day until two o'clock
     7  antemeridian of the following day, except Sunday, and except as
     8  hereinafter provided, may sell liquor and malt or brewed
     9  beverages on Sunday between the hours of twelve o'clock midnight
    10  and two o'clock antemeridian.
    11     Hotel and restaurant liquor licensees, airport restaurant
    12  liquor licensees and municipal golf course restaurant liquor
    13  licensees whose sales of food and nonalcoholic beverages are
    14  equal to forty per centum or more of the combined gross sales of
    15  both food and alcoholic beverages may sell liquor and malt or
    16  brewed beverages on Sunday between the hours of one o'clock
    17  postmeridian and two o'clock antemeridian Monday upon purchase
    18  of a special annual permit from the board at a fee of two
    19  hundred dollars ($200.00) per year, which shall be in addition
    20  to any other license fees. Every hotel and restaurant liquor
    21  licensee and every airport restaurant liquor licensee and
    22  municipal golf course restaurant liquor licensee who holds a
    23  special Sunday sales permit may make sales during regular hours
    24  on every general, municipal, primary or special election day.
    25     Hotel and restaurant liquor licensees, airport restaurant
    26  liquor licensees and municipal golf course restaurant liquor
    27  licensees which do not qualify for and purchase such annual
    28  special permit, their servants, agents or employes may sell
    29  liquor and malt or brewed beverages only after seven o'clock
    30  antemeridian of any day and until two o'clock antemeridian of
    19790H1527B3972                  - 3 -

     1  the following day, and shall not sell after two o'clock
     2  antemeridian on Sunday. [No] Except for hotel, restaurant,
     3  airport restaurant and municipal golf course restaurant
     4  licensees who hold a special Sunday sales permit and who may
     5  make sales on any election day, no other hotel, restaurant and
     6  public service liquor licensee shall sell liquor and malt or
     7  brewed beverages after two o'clock antemeridian on any day on
     8  which a general, municipal, special or primary election is being
     9  held until one hour after the time fixed by law for closing the
    10  polls, except, that, in the case of a special election for
    11  members of the General Assembly or members of the Congress of
    12  the United States, when such special election is held on other
    13  than a primary, municipal or general election day, licensees in
    14  those Legislative or Congressional Districts may make such
    15  sales, as though the day were not a special election day. No
    16  club licensee or its servants, agents or employes may sell
    17  liquor or malt or brewed beverages between the hours of three
    18  o'clock antemeridian and seven o'clock antemeridian on any day.
    19  No public service liquor licensee or its servants, agents, or
    20  employes may sell liquor or malt or brewed beverages between the
    21  hours of two o'clock antemeridian and seven o'clock antemeridian
    22  on any day.
    23     Any hotel, restaurant, club or public service liquor licensee
    24  may, by [given] giving notice to the board, advance by one hour
    25  the hours herein prescribed as those during which liquor and
    26  malt or brewed beverages may be sold during such part of the
    27  year when daylight saving time is being observed generally in
    28  the municipality in which the place of business of such licensee
    29  is located. Any licensee who elects to operate his place of
    30  business in accordance with daylight saving time shall post a
    19790H1527B3972                  - 4 -

     1  conspicuous notice in his place of business that he is operating
     2  in accordance with daylight saving time.
     3     Notwithstanding any provisions to the contrary, whenever the
     4  thirty-first day of December falls on a Sunday, every hotel or
     5  restaurant liquor licensee, their servants, agents or employes
     6  may sell liquor and malt or brewed beverages on any such day
     7  after one o'clock postmeridian and until two o'clock
     8  antemeridian of the following day.
     9     * * *
    10     Section 3.  The act is amended by adding a section to read:
    11     Section 408.7.  Performing Arts Facilities.--(a)  The board
    12  is authorized to transfer a restaurant liquor license purchased
    13  by any person or by a concessionaire selected by such person in
    14  any city of the first or second class for the retail sale of
    15  liquor and malt or brewed beverages by the glass, open bottles
    16  or other container or in any mixture for consumption on any
    17  city-owned premises utilized as a performing arts facility or
    18  any other premise utilized as a performing arts facility where
    19  there is an available seating capacity within the premises of
    20  one thousand or more: Provided, however, That no sale or
    21  consumption of such beverages shall take place on any portions
    22  of such premises other than service areas approved by the board.
    23     (b)  An application for transfer may be filed at any time by
    24  a person operating such a theater for the performing arts or by
    25  a concessionaire selected by such person. Any such license
    26  granted under these provisions need not conform to the
    27  requirements of the act relating to restaurant liquor licenses,
    28  except as provided herein. Applicant shall submit such other
    29  information as the board may require. Applications shall be in
    30  writing on forms prescribed by the board and shall be signed and
    19790H1527B3972                  - 5 -

     1  submitted to the board by the applicant. The filing fee which
     2  shall accompany the license transfer application shall be thirty
     3  dollars ($30).
     4     (c)  Upon receipt of the application in proper form and the
     5  application fee and upon being satisfied that the applicant is
     6  of good repute and financially responsible and that the proposed
     7  place of business is proper, the board shall transfer the
     8  restaurant liquor license for the performing arts facility.
     9     (d)  The license shall be transferred for the same period of
    10  time as provided for restaurant licenses and shall be renewed as
    11  provided in section 402. The license shall terminate upon
    12  revocation by the board or upon termination and nonrenewal of
    13  the contract between the concessionaire and such person.
    14     (e)  The annual fee for a performing arts facility shall be
    15  as provided in section 405 and shall accompany the application
    16  for the license. Whenever and if a concessionaire's contract
    17  terminates and is not renewed the license shall be returned to
    18  the board for cancellation and the board may transfer a
    19  restaurant liquor license purchased by a subsequent applicant.
    20     (f)  The penal sum of the bond which shall be filed by an
    21  applicant for a performing arts facility pursuant to section 465
    22  shall be two thousand dollars ($2,000).
    23     (g)  Sales by the holder of a performing arts facility
    24  license may be made except to those persons prohibited under
    25  clause (1) of section 493 on board-approved service areas of the
    26  premises of such a facility for the performing arts during the
    27  hours in which the performance is being held and up to one hour
    28  before the scheduled opening and one hour after the scheduled
    29  closing, but such sales may not be made beyond the hours
    30  expressed in the code for the sale of liquor and malt or brewed
    19790H1527B3972                  - 6 -

     1  beverages by restaurant licensees: Provided, however, That such
     2  sales may be made on Sunday between the hours of one o'clock
     3  postmeridian and ten o'clock postmeridian, irrespective of the
     4  volume of food sales.
     5     (h)  Whenever a contract with a concessionaire is terminated
     6  prior to the expiration date provided in the contract between
     7  such person and the concessionaire and is not renewed, such
     8  person may apply to the board for the transfer of a restaurant
     9  liquor license purchased by such person, or may select and
    10  certify to the board a different concessionaire which
    11  concessionaire shall apply to the board for the transfer of a
    12  restaurant liquor license purchased by such concessionaire. If
    13  the applicant meets the requirements of the board as herein
    14  provided, a transfer shall thereupon occur. If any such
    15  performing arts facility license is revoked, the board shall
    16  transfer a license for any qualified applicant who has purchased
    17  a restaurant liquor license without regard to the prohibition in
    18  section 471, against the grant of a license at the same premises
    19  for a period of at least one year.
    20     (i)  Performing arts licenses shall not be subject to the
    21  provisions of section 404 except insofar as they relate to the
    22  reputation of the applicant nor to the provisions of section
    23  463, nor to the provisions of clause (10) of section 493.
    24     (j)  Sales under such licenses (including food sales) may be
    25  limited by the licensee to portions of the events scheduled in
    26  the facility of the performing arts. Provided food is offered
    27  for sale when sales are made under the license, such food may be
    28  catered from off the premises.
    29     Section 4.  Subsection (b) of section 442 of the act, amended
    30  October 9, 1967 (P.L.413, No.183), is amended to read:
    19790H1527B3972                  - 7 -

     1     Section 442.  Retail Dispensers' Restrictions on Purchases
     2  and Sales.--* * *
     3     (b)  No retail dispenser shall sell any malt or brewed
     4  beverages for consumption on the licensed premises except in a
     5  room or rooms or place on the licensed premises at all times
     6  accessible to the use and accommodation of the general public,
     7  but this section shall not be interpreted to prohibit a retail
     8  dispenser from selling malt or brewed beverages in a hotel or
     9  club house in any room of such hotel or club house occupied by a
    10  bona fide registered guest or member entitled to purchase the
    11  same or to prohibit a retail dispenser from selling malt or
    12  brewed beverages in a bowling alley when no minors are present
    13  where the licensed premises and bowling alley are immediately
    14  adjacent and under the same roof.
    15     * * *
    16     Section 5.  Subsections (e), (f) and (i) of section 444 of
    17  the act are amended to read:
    18     Section 444.  Malt or Brewed Beverages Manufactured Outside
    19  This Commonwealth.--* * *
    20     (e)  Upon such hearing, whether or not an appearance was made
    21  by such outside manufacturer, if satisfied that any such
    22  violation has occurred, the board is specifically empowered and
    23  directed to [immediately issue an order prohibiting the
    24  importation of malt or brewed beverages manufactured by such
    25  manufacturer into this Commonwealth for a period of not less
    26  than six months nor more than three years] issue an order
    27  imposing a fine upon such outside manufacturer of not less than
    28  five hundred dollars ($500) or more than ten thousand dollars
    29  ($10,000), or prohibiting the importation of malt or brewed
    30  beverages manufactured by such outside manufacturer into this
    19790H1527B3972                  - 8 -

     1  Commonwealth for a period not exceeding three years, or both.
     2  Such fine or prohibition shall not go into effect until twenty
     3  days have elapsed from the date of notice of issuance of the
     4  board's order, during which time such manufacturer may take an
     5  appeal as provided for in this act. The aforesaid appeal shall
     6  act as a supersedeas unless upon sufficient cause shown the
     7  court shall determine otherwise.
     8     (f)  [Notice] If, after hearing, the board prohibits the
     9  importation of malt or brewed beverages manufactured by such
    10  outside manufacturer into this Commonwealth, notice of such
    11  board action shall be given immediately to such manufacturer and
    12  to all persons licensed to import malt or brewed beverages
    13  within this Commonwealth by mailing a copy of such order to such
    14  manufacturer at its principal place of business, wherever
    15  located, and to such licensees at their licensed premises.
    16  Thereafter, it shall be unlawful for any person licensed to
    17  import malt or brewed beverages within this Commonwealth to
    18  purchase [or sell] any malt or brewed beverages manufactured by
    19  such outside manufacturer during the term of such prohibition.
    20     * * *
    21     (i)  Any outside manufacturer aggrieved by the action of the
    22  board may appeal to the [quarter sessions court of Dauphin
    23  County] Commonwealth Court in the same manner as herein provided
    24  for appeals from refusals to grant licenses. Upon appeal, the
    25  court shall in the exercise of its discretion, sustain, reject,
    26  alter or modify the findings, conclusions and penalties of the
    27  board, based on the findings of fact and conclusions of law as
    28  found by the court.
    29     Section 6.  Subsections (a) and (f) of section 461 of the
    30  act, subsection (a) amended July 11, 1980 (No.117) and
    19790H1527B3972                  - 9 -

     1  subsection (f) added June 1, 1978 (P.L.451, No.56), are amended
     2  to read:
     3     Section 461.  Limiting Number of Retail Licenses To Be Issued
     4  In Each Municipality.--(a)  No licenses shall hereafter be
     5  granted by the board for the retail sale of malt or brewed
     6  beverages or the retail sale of liquor and malt or brewed
     7  beverages in excess of one of such licenses of any class for
     8  each two thousand inhabitants in any municipality, exclusive of
     9  licenses granted to airport restaurants, municipal golf courses,
    10  and hotels [and incorporated units of national veterans'
    11  organizations], as defined in this section, and clubs; but at
    12  least one such license may be granted in each municipality and
    13  in each part of a municipality where such municipality is split
    14  so that each part thereof is separated by another municipality,
    15  except in municipalities where the electors have voted against
    16  the granting of any retail licenses and except in that part of a
    17  split municipality where the electors have voted against the
    18  granting of any retail licenses. Nothing contained in this
    19  section shall be construed as denying the right to the board to
    20  renew or to transfer existing retail licenses of any class
    21  notwithstanding that the number of such licensed places in a
    22  municipality shall exceed the limitation hereinbefore
    23  prescribed; but where such number exceeds the limitation
    24  prescribed by this section, no new license, except for hotels,
    25  municipal golf courses, and airport restaurants [and
    26  incorporated units of national veterans' organizations], as
    27  defined in this section, shall be granted so long as said
    28  limitation is exceeded.
    29     * * *
    30     [(f)  The term "national veterans' organization" shall mean
    19790H1527B3972                 - 10 -

     1  any veterans' organization having a national charter.
     2     The term "incorporated unit of a national veterans'
     3  organization" shall mean any incorporated post, branch, camp,
     4  detachment, lodge or other subordinate unit of a national
     5  veterans' organization having one hundred or more paid up
     6  members as of, and organized prior to, January 1, 1975.]
     7     Section 7.  The act is amended by adding a section to read:
     8     Section 461.1.  Incorporated Units of National Veterans'
     9  Organizations.--(a)  The board shall have the authority to issue
    10  new licenses to incorporated units of national veterans'
    11  organizations, as defined herein, in municipalities where the
    12  number of licenses exceeds the limitation prescribed by section
    13  461.
    14     (b)  The term "national veterans' organization" shall mean
    15  any veterans' organization having a national charter.
    16     The term "incorporated unit of a national veterans'
    17  organization" shall mean any incorporated post, branch, camp,
    18  detachment, lodge or other subordinate unit of a national
    19  veterans' organization having one hundred or more paid up
    20  members and organized for a period of at least three years prior
    21  to filing the application for a license.
    22     (c)  When the charter of an incorporated unit of a national
    23  veterans' organization is suspended or revoked, the retail
    24  license of the organization shall also be suspended or revoked.
    25  The retail license of an incorporated unit of a national
    26  veterans' organization is not transferable to any other
    27  organization or person.
    28     Section 8.  Section 463 of the act is amended by adding a
    29  subsection to read:
    30     Section 463.  Places of Amusement Not To Be Licensed;
    19790H1527B3972                 - 11 -

     1  Penalty.--* * *
     2     (a.2)  Nothing contained in this act shall be construed to
     3  prevent the holder of restaurant liquor or malt and brewed
     4  beverage license from selling liquor and malt or brewed
     5  beverages in a bowling alley when no minors are present where
     6  the restaurant and bowling alley are immediately adjacent and
     7  under the same roof. The restaurant liquor or malt and brewed
     8  beverage licensee aforementioned shall be subject to all the
     9  conditions and restrictions applicable to such restaurant
    10  licenses except the above prohibition against any passageway or
    11  communication between a licensed premise and a place of
    12  amusement.
    13     * * *
    14     Section 9.  Subsection (a) of section 475 of the act, added
    15  November 26, 1978 (P.L.1389, No.326), is amended to read:
    16     Section 475.  Establishments Proximate to Interstate Highways
    17  Not To Be Licensed.--(a)  No license for the sale of liquor or
    18  malt or brewed beverages in any quantity shall be granted to the
    19  proprietor, lessee, keeper or manager of an establishment [any
    20  part of] the entrance to which is located within three hundred
    21  feet of any part of a ramp of an interstate limited access
    22  highway.
    23     * * *
    24     Section 10.  Clause (6) of section 491 of the act is amended
    25  to read:
    26     Section 491.  Unlawful Acts Relative to Liquor, Alcohol and
    27  Liquor Licensees.--
    28     It shall be unlawful--
    29     * * *
    30     (6)  Sales by Restaurant and Hotel Liquor Licensees. For any
    19790H1527B3972                 - 12 -

     1  restaurant or hotel licensee, his servants, agents or employes,
     2  to sell any liquor or malt or brewed beverages for consumption
     3  on the licensed premises except in a room or rooms or place on
     4  the licensed premises at all times accessible to the use and
     5  accommodation of the general public, but this section shall not
     6  be interpreted to prohibit a hotel licensee, or a restaurant
     7  licensee when the restaurant is located in a hotel, from selling
     8  liquor or malt or brewed beverages in any room of such hotel
     9  occupied by a bona fide guest or to prohibit a restaurant
    10  licensee from selling liquor or malt or brewed beverages in a
    11  bowling alley when no minors are present where the restaurant
    12  and bowling alley are immediately adjacent and under the same
    13  roof.
    14     * * *
    15     Section 11.  This act shall take effect immediately.










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