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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1402, 1610               PRINTER'S NO. 1998

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1164 Session of 1997


        INTRODUCED BY THOMPSON, WAGNER, EARLL, STOUT, SALVATORE,
           WOZNIAK, HART AND MURPHY, OCTOBER 20, 1997

        AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 5, 1998

                                     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     further providing for breweries; and authorizing the           <--
    18     production of beer or malt or brewed beverages in limited
    19     quantities for personal or family use. FURTHER PROVIDING FOR   <--
    20     SECONDARY SERVICE AREAS OF CERTAIN LICENSEES, FOR CERTAIN
    21     PERFORMING ARTS FACILITIES, FOR EXCEPTIONS TO LIMITING THE
    22     NUMBER OF RETAIL LICENSES ISSUED IN EACH MUNICIPALITY, FOR
    23     APPLICATION FILING DATES, FOR THE FILING OF LICENSE RENEWAL
    24     APPLICATIONS, FOR DISPLAY OF PRICES OF ALCOHOLIC BEVERAGES,
    25     FOR LICENSEE'S OUTSIDE ADVERTISEMENTS, FOR SPECIAL OCCASION
    26     PERMITS AND FOR LICENSEES EMPLOYED BY OTHERS.

    27     The General Assembly of the Commonwealth of Pennsylvania
    28  hereby enacts as follows:


     1     Section 1.  Sections 446(2) and 492(1) of the act of April     <--
     2  12, 1951 (P.L.90, No.21), known as the Liquor Code, reenacted
     3  and amended June 29, 1987 (P.L.32, No.14), are amended to read:
     4     Section 446.  Breweries.--Holders of a brewery license may:
     5     * * *
     6     (2)  Operate a restaurant or brewery pub on the licensed
     7  premises under such conditions and regulations as the board may
     8  enforce[.]: Provided, however, That sales on Sunday may be made
     9  irrespective of the volume of food sales if the licensed
    10  premises are at a stadium or arena location.
    11     * * *
    12     Section 492.  Unlawful Acts Relative to Malt or Brewed
    13  Beverages and Licensees.--
    14     It shall be unlawful--
    15     (1)  Manufacturing Without License. [For] Except as provided
    16  herein, for any person, to manufacture malt or brewed beverages,
    17  unless such person holds a valid manufacturer's license for such
    18  purpose issued by the board. Malt or brewed beverages may be
    19  produced by any person without a license, if such malt or brewed
    20  beverages are produced not for sale and total production does
    21  not exceed two hundred gallons per calendar year. Malt or brewed
    22  beverages produced in accordance with this paragraph may be used
    23  at organized affairs, exhibitions, competitions, contests,
    24  tastings or judging, provided it is not sold or offered for
    25  sale.
    26     * * *
    27     Section 2.  This act shall take effect immediately.
    28     SECTION 1.  SECTION 406.1 OF THE ACT OF APRIL 12, 1951         <--
    29  (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, REENACTED AND AMENDED
    30  JUNE 29, 1987 (P.L.32, NO.14) AND AMENDED JULY 1, 1994 (P.L.402,
    19970S1164B1998                  - 2 -

     1  NO.61), IS AMENDED TO READ:
     2     SECTION 406.1.  SECONDARY SERVICE AREA.--[UPON APPLICATION OF
     3  ANY RESTAURANT, HOTEL, CLUB, ANY STADIUM AS DESCRIBED IN SECTION
     4  408.9 OR MUNICIPAL GOLF COURSE LIQUOR LICENSEE, AND PAYMENT OF
     5  THE APPROPRIATE FEE,] UPON APPLICATION AND PAYMENT OF THE
     6  APPROPRIATE FEE BY ANY GOLF COURSE LICENSEE PRESCRIBED IN
     7  SECTION 461, ANY CLASS OF RETAIL LICENSEE OPERATING AT AND IN
     8  CONJUNCTION WITH A GOLF COURSE AS DEFINED IN SECTION 102 OR SKI
     9  FACILITY, OR ANY STADIUM AS PRESCRIBED IN SECTION 408.9, THE
    10  BOARD MAY APPROVE A SECONDARY SERVICE AREA BY EXTENDING THE
    11  LICENSED PREMISES TO INCLUDE ONE ADDITIONAL PERMANENT STRUCTURE
    12  WITH DIMENSIONS OF AT LEAST ONE HUNDRED SEVENTY-FIVE SQUARE
    13  FEET, ENCLOSED ON AT LEAST THREE SIDES [AND HAVING ADEQUATE
    14  SEATING]. SUCH SECONDARY SERVICE AREA MUST BE LOCATED ON
    15  PROPERTY HAVING A MINIMUM AREA OF ONE (1) ACRE, AND MUST BE ON
    16  LAND WHICH IS IMMEDIATE, ABUTTING, ADJACENT OR CONTIGUOUS TO THE
    17  LICENSED PREMISES [WITH NO INTERVENING PUBLIC THOROUGHFARE]. IN
    18  ANY STADIUM AS DESCRIBED IN SECTION 408.9, ONLY MALT OR BREWED
    19  BEVERAGES MAY BE SERVED AND THERE SHALL BE NO INTERVENING PUBLIC
    20  THOROUGHFARE BETWEEN THE LICENSED PREMISES AND A SECONDARY
    21  SERVICE AREA. THERE SHALL BE NO REQUIREMENT THAT THE SECONDARY
    22  SERVICE AREA BE PHYSICALLY CONNECTED TO THE ORIGINAL LICENSED
    23  PREMISES. IN ADDITION, THERE SHALL BE NO REQUIREMENT THAT THE
    24  SECONDARY SERVICE AREA BE LOCATED IN THE SAME MUNICIPALITY AS
    25  THE ORIGINAL LICENSED PREMISES, PROVIDED, HOWEVER, THAT THE
    26  BOARD SHALL NOT APPROVE A SECONDARY SERVICE AREA IN THIS CASE IF
    27  THAT SECONDARY SERVICE AREA IS LOCATED IN ANY MUNICIPALITY WHERE
    28  THE GRANTING OF LIQUOR LICENSES HAS BEEN PROHIBITED AS PROVIDED
    29  IN THIS ARTICLE. NOTWITHSTANDING 40 PA. CODE § 7.21(C)(3), THE
    30  LICENSEE SHALL BE PERMITTED TO STORE, SERVE, SELL OR DISPENSE
    19970S1164B1998                  - 3 -

     1  FOOD, LIQUOR AND MALT OR BREWED BEVERAGES AT THE BOARD APPROVED
     2  SECONDARY SERVICE AREA.
     3     SECTION 2.  SECTION 408.4(E) OF THE ACT, AMENDED OCTOBER 5,
     4  1994 (P.L.522, NO.77), IS AMENDED TO READ:
     5     SECTION 408.4.  SPECIAL OCCASION PERMITS.--* * *
     6     (E)  THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE
     7  TO ANY OF THE FOLLOWING:
     8     (1)  A LICENSEE NOW OR HEREAFTER POSSESSING A CATERER'S
     9  LICENSE, [NOR TO ANY] OTHER THAN A VOLUNTEER FIRE COMPANY,
    10  VOLUNTEER AMBULANCE COMPANY OR VOLUNTEER RESCUE SQUAD, WHICH
    11  OWNS ITS OWN FACILITY.
    12     (2)  A PROFESSIONAL FUND RAISER.
    13     * * *
    14     SECTION 3.  SECTION 408.6(A) OF THE ACT, AMENDED FEBRUARY 18,
    15  1998 (P.L.162, NO.25), IS AMENDED TO READ:
    16     SECTION 408.6.  PERFORMING ARTS FACILITIES IN SECOND CLASS A
    17  CITIES, THIRD CLASS CITIES, BOROUGHS AND TOWNSHIPS OF THE SECOND
    18  CLASS LOCATED IN FOURTH CLASS COUNTIES.--(A)  THE BOARD IS
    19  AUTHORIZED TO ISSUE A RESTAURANT LIQUOR LICENSE TO A NONPROFIT
    20  CORPORATION OR TO A CONCESSIONAIRE SELECTED BY SUCH NONPROFIT
    21  CORPORATION IN ANY CITY OF THE SECOND CLASS A, ANY CITY OF THE
    22  THIRD CLASS OR ANY BOROUGH FOR THE RETAIL SALE OF LIQUOR AND
    23  MALT OR BREWED BEVERAGES BY THE GLASS, OPEN BOTTLES OR OTHER
    24  CONTAINER OR IN ANY MIXTURE FOR CONSUMPTION ON ANY CITY-OWNED
    25  PREMISES UTILIZED AS A NONPROFIT PERFORMING ARTS FACILITY OR ANY
    26  OTHER PREMISES UTILIZED AS A NONPROFIT PERFORMING ARTS FACILITY
    27  WHERE THERE IS AN AVAILABLE SEATING CAPACITY WITHIN THE PREMISES
    28  OF [SIX HUNDRED FIFTY] FIVE HUNDRED OR MORE: PROVIDED, HOWEVER,
    29  THAT NO SALE OR CONSUMPTION OF SUCH BEVERAGES SHALL TAKE PLACE
    30  ON ANY PORTIONS OF SUCH PREMISES OTHER THAN SERVICE AREAS
    19970S1164B1998                  - 4 -

     1  APPROVED BY THE BOARD.
     2     * * *
     3     SECTION 4.  SECTION 461(A) OF THE ACT, AMENDED OCTOBER 5,
     4  1994 (P.L.522, NO.77), IS AMENDED TO READ:
     5     SECTION 461.  LIMITING NUMBER OF RETAIL LICENSES TO BE ISSUED
     6  IN EACH MUNICIPALITY.--(A)  NO LICENSES SHALL HEREAFTER BE
     7  GRANTED BY THE BOARD FOR THE RETAIL SALE OF MALT OR BREWED
     8  BEVERAGES OR THE RETAIL SALE OF LIQUOR AND MALT OR BREWED
     9  BEVERAGES IN EXCESS OF ONE OF SUCH LICENSES OF ANY CLASS FOR
    10  EACH THREE THOUSAND INHABITANTS IN ANY MUNICIPALITY, EXCLUSIVE
    11  OF LICENSES GRANTED TO AIRPORT RESTAURANTS, MUNICIPAL GOLF
    12  COURSES, HOTELS, PRIVATELY-OWNED PUBLIC GOLF COURSES AND UNITS
    13  OF NONPROFIT NATIONALLY CHARTERED CLUBS, AS DEFINED IN THIS
    14  SECTION, WHOSE APPLICATIONS ARE FILED ON OR BEFORE DECEMBER 31,
    15  [1994] 1998, AND EXCEPT THOSE UNITS FALLING UNDER SECTION 461.1,
    16  AND CLUBS; BUT AT LEAST ONE SUCH LICENSE MAY BE GRANTED IN EACH
    17  MUNICIPALITY AND IN EACH PART OF A MUNICIPALITY WHERE SUCH
    18  MUNICIPALITY IS SPLIT SO THAT EACH PART THEREOF IS SEPARATED BY
    19  ANOTHER MUNICIPALITY, EXCEPT IN MUNICIPALITIES WHERE THE
    20  ELECTORS HAVE VOTED AGAINST THE GRANTING OF ANY RETAIL LICENSES
    21  AND EXCEPT IN THAT PART OF A SPLIT MUNICIPALITY WHERE THE
    22  ELECTORS HAVE VOTED AGAINST THE GRANTING OF ANY RETAIL LICENSES.
    23  NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED AS DENYING
    24  THE RIGHT TO THE BOARD TO RENEW OR TO TRANSFER EXISTING RETAIL
    25  LICENSES OF ANY CLASS NOTWITHSTANDING THAT THE NUMBER OF SUCH
    26  LICENSED PLACES IN A MUNICIPALITY SHALL EXCEED THE LIMITATION
    27  HEREINBEFORE PRESCRIBED; BUT WHERE SUCH NUMBER EXCEEDS THE
    28  LIMITATION PRESCRIBED BY THIS SECTION, NO NEW LICENSE, EXCEPT
    29  FOR HOTELS, MUNICIPAL GOLF COURSES, AIRPORT RESTAURANTS,
    30  PRIVATELY-OWNED PUBLIC GOLF COURSES, PRIVATELY-OWNED PRIVATE
    19970S1164B1998                  - 5 -

     1  GOLF COURSE LICENSEES AND UNITS OF NONPROFIT NATIONALLY
     2  CHARTERED CLUBS, AS DEFINED IN THIS SECTION, WHOSE APPLICATIONS
     3  ARE FILED ON OR BEFORE DECEMBER 31, [1994] 1998, AND EXCEPT
     4  THOSE UNITS FALLING UNDER SECTION 461.1, SHALL BE GRANTED SO
     5  LONG AS SAID LIMITATION IS EXCEEDED.
     6     * * *
     7     SECTION 5.  SECTION 470(A) OF THE ACT, AMENDED APRIL 29, 1994
     8  (P.L.212, NO.30), IS AMENDED TO READ:
     9     SECTION 470.  RENEWAL OF LICENSES; TEMPORARY PROVISIONS FOR
    10  LICENSEES IN ARMED SERVICE.--(A)  ALL APPLICATIONS FOR RENEWAL
    11  OF LICENSES UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE FILED
    12  WITH A NEW BOND, TAX CLEARANCE FROM THE DEPARTMENT OF REVENUE
    13  AND THE DEPARTMENT OF LABOR AND INDUSTRY AND REQUISITE LICENSE
    14  AND FILING FEES AT LEAST SIXTY DAYS BEFORE THE EXPIRATION DATE
    15  OF SAME: PROVIDED, HOWEVER, THAT THE BOARD, IN ITS DISCRETION,
    16  MAY ACCEPT A RENEWAL APPLICATION FILED LESS THAN SIXTY DAYS
    17  BEFORE THE EXPIRATION DATE OF THE LICENSE WITH THE REQUIRED BOND
    18  AND FEES, UPON REASONABLE CAUSE SHOWN AND THE PAYMENT OF AN
    19  ADDITIONAL FILING FEE OF ONE HUNDRED DOLLARS ($100.00) FOR LATE
    20  FILING: AND PROVIDED FURTHER, THAT EXCEPT WHERE THE FAILURE TO
    21  FILE A RENEWAL APPLICATION ON OR BEFORE THE EXPIRATION DATE HAS
    22  CREATED A LICENSE QUOTA VACANCY AFTER SAID EXPIRATION DATE WHICH
    23  HAS BEEN FILLED BY THE ISSUANCE OF A NEW LICENSE, AFTER SUCH
    24  EXPIRATION DATE, BUT BEFORE THE BOARD HAS RECEIVED A RENEWAL
    25  APPLICATION WITHIN THE TIME PRESCRIBED HEREIN THE BOARD, IN ITS
    26  DISCRETION, MAY, AFTER HEARING, ACCEPT A RENEWAL APPLICATION
    27  FILED WITHIN [TEN MONTHS] TWO YEARS AFTER THE EXPIRATION DATE OF
    28  THE LICENSE WITH THE REQUIRED BOND AND FEES UPON THE PAYMENT OF
    29  AN ADDITIONAL FILING FEE OF TWO HUNDRED FIFTY DOLLARS ($250.00)
    30  FOR LATE FILING. WHERE ANY SUCH RENEWAL APPLICATION IS FILED
    19970S1164B1998                  - 6 -

     1  LESS THAN SIXTY DAYS BEFORE THE EXPIRATION DATE, OR SUBSEQUENT
     2  TO THE EXPIRATION DATE, NO LICENSE SHALL ISSUE UPON THE FILING
     3  OF THE RENEWAL APPLICATION UNTIL THE MATTER IS FINALLY
     4  DETERMINED BY THE BOARD AND IF AN APPEAL IS TAKEN FROM THE
     5  BOARD'S ACTION THE COURTS SHALL NOT ORDER THE ISSUANCE OF THE
     6  RENEWAL LICENSE UNTIL FINAL DETERMINATION OF THE MATTER BY THE
     7  COURTS. A RENEWAL APPLICATION WILL NOT BE CONSIDERED FILED
     8  UNLESS ACCOMPANIED BY A NEW BOND AND THE REQUISITE FILING AND
     9  LICENSE FEES AND ANY ADDITIONAL FILING FEE REQUIRED BY THIS
    10  SECTION. UNLESS THE BOARD SHALL HAVE GIVEN TEN DAYS' PREVIOUS
    11  NOTICE TO THE APPLICANT OF OBJECTIONS TO THE RENEWAL OF HIS
    12  LICENSE, BASED UPON VIOLATION BY THE LICENSEE OR HIS SERVANTS,
    13  AGENTS OR EMPLOYES OF ANY OF THE LAWS OF THE COMMONWEALTH OR
    14  REGULATIONS OF THE BOARD RELATING TO THE MANUFACTURE,
    15  TRANSPORTATION, USE, STORAGE, IMPORTATION, POSSESSION OR SALE OF
    16  LIQUORS, ALCOHOL OR MALT OR BREWED BEVERAGES, OR THE CONDUCT OF
    17  A LICENSED ESTABLISHMENT, OR UNLESS THE APPLICANT HAS BY HIS OWN
    18  ACT BECOME A PERSON OF ILL REPUTE, OR UNLESS THE PREMISES DO NOT
    19  MEET THE REQUIREMENTS OF THIS ACT OR THE REGULATIONS OF THE
    20  BOARD, THE LICENSE OF A LICENSEE SHALL BE RENEWED.
    21     * * *
    22     SECTION 6.  SECTION 493(11) OF THE ACT IS AMENDED TO READ:
    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     (11)  LICENSEES EMPLOYED BY OTHERS. [FOR ANY HOTEL,
    19970S1164B1998                  - 7 -

     1  RESTAURANT OR CLUB LIQUOR LICENSEE, OR ANY MALT OR BREWED
     2  BEVERAGE LICENSEE, OR ANY SERVANT, AGENT OR EMPLOYE OF SUCH
     3  LICENSEE, TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR
     4  INDIRECTLY, BY ANY OTHER PERSON ENGAGED IN THE MANUFACTURE,
     5  SALE, TRANSPORTATION OR STORAGE OF LIQUOR, MALT OR BREWED
     6  BEVERAGES OR ALCOHOL: PROVIDED, THAT ANY PERSON (EXCEPT A
     7  LICENSEE OR THE MANAGER, OFFICER OR DIRECTOR OF A LICENSEE) WHO
     8  IS EMPLOYED BY A RETAIL LICENSEE TO PREPARE OR SERVE FOOD AND
     9  BEVERAGES MAY BE EMPLOYED IN THE SAME CAPACITY BY ANOTHER RETAIL
    10  LICENSEE DURING OTHER HOURS OR ON OTHER DAYS.] FOR ANY HOTEL,
    11  RESTAURANT OR CLUB LIQUOR LICENSEE, OR ANY MALT OR BREWED
    12  BEVERAGE LICENSEE, OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE OF
    13  SUCH LICENSEE, TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR
    14  INDIRECTLY, BY ANY DISTRIBUTOR, IMPORTING DISTRIBUTOR,
    15  MANUFACTURER, IMPORTER OR VENDOR LICENSEE OR ANY OUT-OF-STATE
    16  MANUFACTURER. IT SHALL ALSO BE UNLAWFUL FOR ANY DISTRIBUTOR OR
    17  IMPORTING DISTRIBUTOR, OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE
    18  OF SUCH LICENSEE TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR
    19  INDIRECTLY, BY ANY OTHER DISTRIBUTOR, IMPORTING DISTRIBUTOR,
    20  MANUFACTURER, IMPORTER, VENDOR, OUT-OF-STATE MANUFACTURER, HOTEL
    21  RESTAURANT, MALT OR BREWED BEVERAGE LICENSEE, OR CLUB LIQUOR
    22  LICENSEE. IT SHALL ALSO BE UNLAWFUL FOR ANY MANUFACTURER,
    23  IMPORTER, OR VENDOR LICENSEE, OR ANY OUT-OF-STATE MANUFACTURER
    24  OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE OF SUCH LICENSEE, OR
    25  MANUFACTURER, TO BE AT THE SAME TIME EMPLOYED, DIRECTLY OR
    26  INDIRECTLY, BY ANY HOTEL, RESTAURANT OR CLUB LIQUOR LICENSEE OR
    27  ANY MALT OR BREWED BEVERAGE LICENSEE OR ANY DISTRIBUTOR OR
    28  IMPORTING DISTRIBUTOR LICENSEE. NOTHING IN THIS SUBSECTION SHALL
    29  BE CONSTRUED TO PROHIBIT A MANUFACTURER OR LIMITED WINERY
    30  LICENSEE OR ANY OFFICER, SERVANT, AGENT OR EMPLOYE OF SUCH
    19970S1164B1998                  - 8 -

     1  LICENSEE TO BE EMPLOYED AT THE SAME TIME BY A HOTEL, RESTAURANT
     2  OR RETAIL DISPENSER LICENSEE, IF THE HOTEL, RESTAURANT OR RETAIL
     3  DISPENSER LICENSEE IS LOCATED AT THE MANUFACTURER OR LIMITED
     4  WINERY PREMISES PURSUANT TO SECTION 443. FOR THE PURPOSES OF
     5  THIS SUBSECTION, AN OFFICER, SERVANT, AGENT OR EMPLOYE OF A
     6  LICENSEE OR MANUFACTURER IS AN INDIVIDUAL WHO HAS EITHER AN
     7  OWNERSHIP INTEREST IN THE LICENSEE OR MANUFACTURER OR WHO
     8  RECEIVES COMPENSATION FOR HIS OR WORK ON BEHALF OF THE LICENSEE
     9  OR MANUFACTURER.
    10     * * *
    11     SECTION 7.  SECTION 493(18) AND (19) OF THE ACT ARE REPEALED.
    12     SECTION 8.  THE AMENDMENT OF SECTION 406.1 OF THE ACT
    13  RELATING TO SECONDARY SERVICE AREAS SHALL ONLY APPLY TO
    14  APPLICATIONS ON FILE ON OR AFTER THE EFFECTIVE DATE OF THIS
    15  SECTION.
    16     SECTION 9.  THIS ACT SHALL TAKE EFFECT IN 60 DAYS.             <--










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