THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PAYNE, GEIST, KORTZ, MUSTIO, READSHAW, SONNEY, WAGNER AND STEVENSON, JANUARY 21, 2011

AS RE-REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 13, 2011   

AN ACT

Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as

reenacted, "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; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws,"

further providing for definitions, for hotel, restaurant and 

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club liquor licenses, for sales by liquor licensees and

restrictions and for unlawful acts relative to liquor, malt

and brewed beverages and licensees.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "eligible entity" in section

102 of the act of April 12, 1951 (P.L.90, No.21), known as the

Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14)

and amended June 25, 2010 (P.L.217, No.35), is amended and the

section is amended by adding definitions to read:

Section 102.  Definitions.--The following words or phrases,

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Catered event" shall mean the furnishing of prepared foods

in conjunction with alcoholic beverages for the accommodation of

a group of people who made arrangements for the event at least

forty-eight hours in advance and is paid for and sponsored by a

third party.

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"Eligible entity" shall mean a city of the third class, a

hospital, a church, a synagogue, a volunteer fire company, a

volunteer ambulance company, a volunteer rescue squad, a unit of

a nationally chartered club which has been issued a club liquor

license, a club in a city of the third class which has been

issued a club liquor license and which, as of December 31, 2002,

has been in existence for at least 100 years, a library, a

nationally accredited Pennsylvania nonprofit zoological

institution licensed by the United States Department of

Agriculture, a nonprofit agricultural association in existence

for at least ten years, a bona fide sportsmen's club in

existence for at least ten years, a nationally chartered

veterans' organization and any affiliated lodge or subdivision

of such organization, a fraternal benefit society that is

licensed to do business in this Commonwealth and any affiliated

lodge or subdivision of such fraternal benefit society, a museum

operated by a nonprofit corporation in a city of the third class

or township of the first class, a nonprofit corporation engaged

in the performing arts in a city of the third class, borough or

in an incorporated town, an arts council, a nonprofit

corporation that operates an arts facility or museum in a city

of the third class in the county of the fourth class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) whose purpose is to protect the architectural

heritage of boroughs or a township of the second class and which

has been recognized as such by a municipal resolution, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) conducting a regatta in a city of the second class

with the permit to be used on State park grounds or conducting a

family-oriented celebration as part of Welcome America in a city

of the first class on property leased from that city for more

than fifty years, a nonprofit organization as defined under

section 501(c)(3) of the Internal Revenue Code of 1986 (26

U.S.C. § 501(c)(3)) whose purpose is to raise funds for the

research and treatment of cystic fibrosis, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

educate the public on issues dealing with watershed

conservation, a nonprofit organization as defined under section

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to provide

equine assisted activities for children and adults with special

needs, a nonprofit economic development agency in a city of the

second class with the primary function to serve as an economic

generator for the greater southwestern Pennsylvania region by

attracting and supporting film, television and related media

industry projects and coordinating government and business

offices in support of a production, a county tourist promotion

agency as defined in section 3(1) of the act of April 28, 1961

(P.L.111, No.50), known as the "Tourist Promotion Law," and

located in a city of the third class in a county of the fourth

class or located in a township of the second class in a county

of the fifth class, a junior league in a third class county that

is a nonprofit organization as defined under section 501(c)(3)

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

that is comprised of women whose purpose is exclusively

educational and charitable in promoting the volunteerism of

women and developing and participating in community projects and

that has been in existence for over seventy years, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 which is located in counties of the second

class A or of the third class and whose purpose is the education

and promotion of American history, a nonprofit organization as

defined under section 501(c)(6) of the Internal Revenue Code of

1986 which is located in a city of the third class in a county

of the third class and whose purpose is to support business and

industry, a brewery which has been issued a license to

manufacture malt or brewed beverages and has been in existence

for at least 100 years or a club recognized by Rotary

International which is located in a county of the fourth class

and whose purpose is to provide service to others, to promote

high ethical standards and to advance world understanding,

goodwill and peace through its fellowship of business,

professional and community leaders or a nonprofit organization

as defined under section 501(c)(3) of the Internal Revenue Code

of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is

located in a borough in a county of the third class and whose

purpose is to promote mushrooms while supporting local and

regional charities, a nonprofit organization as defined under

section 501(c)(3) of the Internal Revenue Code of 1986 whose

main purpose is to temporarily foster stray and unwanted animals

and match them to suitable permanent homes, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 who operates either a Main Street Program

or Elm Street Program recognized by the Commonwealth, the

National Trust for Historic Preservation or both.

* * *

"Happy hour" shall mean the period of time during which a

licensee discounts alcoholic beverages.

* * *

Section 2.  Section 404 of the act, amended January 6, 2006

(P.L.1, No.1), is amended to read:

Section 404.  Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--Upon receipt of the

application and the proper fees, and upon being satisfied of the

truth of the statements in the application that the applicant is

the only person in any manner pecuniarily interested in the

business so asked to be licensed and that no other person will

be in any manner pecuniarily interested therein during the

continuance of the license, except as hereinafter permitted, and

that the applicant is a person of good repute, that the premises

applied for meet all the requirements of this act and the

regulations of the board, that the applicant seeks a license for

a hotel, restaurant or club, as defined in this act, and that

the issuance of such license is not prohibited by any of the

provisions of this act, the board shall, in the case of a hotel

or restaurant, grant and issue to the applicant a liquor

license, and in the case of a club may, in its discretion, issue

or refuse a license: Provided, however, That in the case of any

new license or the transfer of any license to a new location or

the extension of an existing license to cover an additional area

the board may, in its discretion, grant or refuse such new

license, transfer or extension if such place proposed to be

licensed is within three hundred feet of any church, hospital,

charitable institution, school, or public playground, or if such

new license, transfer or extension is applied for a place which

is within two hundred feet of any other premises which is

licensed by the board: And provided further, That the board's

authority to refuse to grant a license because of its proximity

to a church, hospital, charitable institution, public playground

or other licensed premises shall not be applicable to license

applications submitted for public venues or performing arts

facilities: And provided further, That the board shall refuse

any application for a new license, the transfer of any license

to a new location or the extension of an existing license to

cover an additional area if, in the board's opinion, such new

license, transfer or extension would be detrimental to the

welfare, health, peace and morals of the inhabitants of the

neighborhood within a radius of five hundred feet of the place

proposed to be licensed: And provided further, That the board

shall have the discretion to refuse a license to any person or

to any corporation, partnership or association if such person,

or any officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

license. The board shall refuse any application for a new

license, the transfer of any license to a new location or the

extension of any license to cover an additional area where the

sale of liquid fuels or oil is conducted. The board may enter

into an agreement with the applicant concerning additional

restrictions on the license in question. If the board and the

applicant enter into such an agreement, such agreement shall be

binding on the applicant. Failure by the applicant to adhere to

the agreement will be sufficient cause to form the basis for a

citation under section 471 and for the nonrenewal of the license

under section 470. If the board enters into an agreement with an

applicant concerning additional restrictions, those restrictions

shall be binding on subsequent holders of the license until the

license is transferred to a new location or until the board

enters into a subsequent agreement removing those restrictions.

If the application in question involves a location previously

licensed by the board, then any restrictions imposed by the

board on the previous license at that location shall be binding

on the applicant unless the board enters into a new agreement

rescinding those restrictions. The board may, in its discretion,

refuse an application for an economic development license under

section 461(b.1) or an application for an intermunicipal

transfer of a license if the board receives a protest from the

governing body of the receiving municipality. The receiving

municipality of an intermunicipal transfer or an economic

development license under section 461(b.1) may file a protest

against the transfer of a license into its municipality, and the

receiving municipality shall have standing in a hearing to

present testimony in support of or against the issuance or

transfer of a license. Upon any opening in any quota, an

application for a new license shall only be filed with the board

for a period of six months following said opening.

Notwithstanding another provision of law, the board may not

refuse to transfer or renew a license previously issued for

premises located in a township of the second class within a

county of the third class that is a dry municipality based on

the fact that the municipality is a dry municipality if the

premises for which the license is being transferred or renewed

have been continuously licensed by the board for a period of

fifty years or more.

Section 3.  Section 406(a)(1) of the act, amended July 6,

2005 (P.L.135, No.39), is amended and the section is amended by

adding subsections to read:

Section 406.  Sales by Liquor Licensees; Restrictions.--(a)  

(1)  Every hotel, restaurant or club liquor licensee may sell

liquor and malt or brewed beverages by the glass, open bottle or

other container, and in any mixture, for consumption only in

that part of the hotel or restaurant habitually used for the

serving of food to guests or patrons, or, in the case of a

restaurant, hotel or eating place licensee, at a catered event

off the licensed premises, or in a bowling alley that is

immediately adjacent to and under the same roof as a restaurant,

and in the case of hotels, to guests, and in the case of clubs,

to members, in their private rooms in the hotel or club. No club

licensee nor its officers, servants, agents or employes, other

than one holding a catering license, shall sell any liquor or

malt or brewed beverages to any person except a member of the

club. The holder of a restaurant license located in a hotel may

sell liquor or malt or brewed beverages for consumption in that

part of the restaurant habitually used for the serving of meals

to patrons and also to guests in private guest rooms in the

hotel. For the purpose of this paragraph, any person who is an

active member of another club which is chartered by the same

state or national organization shall have the same rights and

privileges as members of the particular club. For the purpose of

this paragraph, any person who is an active member of any

volunteer firefighting company, association or group of this

Commonwealth, whether incorporated or unincorporated, shall upon

the approval of any club composed of volunteer firemen licensed

under this act, have the same social rights and privileges as

members of such licensed club. For the purposes of this

paragraph, the term "active member" shall not include a social

member. Any club licensee which is either an incorporated unit

of a national veterans' organization or an affiliated

organization as defined in section 461.1 shall be permitted to

sell liquor or malt or brewed beverages to any active member of

another unit which is chartered by the same national veterans'

organization or to any member of a nationally chartered

auxiliary associated with the same national veterans'

organization.

* * *

(f)  The holder of a hotel license or a restaurant license

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may sell up to three bottles of wine for consumption off the

licensed premises so long as the bottles of wine remain sealed.

For purposes of this subsection, "wine" shall have the meaning

given to it under section 488(i).

(g)  The holder of a hotel license, eating place license or a

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restaurant license may obtain an off-premises catering license 

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permit subject to section 493(33) to hold a catered event off

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the licensed premises and on otherwise unlicensed premises where

the licensee may sell wine, liquor and malt or brewed beverages

by the glass, open bottle or other container, and in any

mixture, for consumption on those premises solely used for

catering purposes so long as the liquor and malt or brewed

beverages were purchased in conjunction with a meal which will

be consumed on the catered premises. The holder of an eating

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place license may obtain an off-premises catering permit subject

to section 493(33) to hold a catered event off the licensed

premises and on otherwise unlicensed premises where the licensee

may sell malt or brewed beverages by the glass, open bottle or

other container for consumption on those premises solely used

for catering purposes so long as the malt or brewed beverages

were purchased in conjunction with a meal which will be consumed

on the catered premises. There shall be no limitation on the

number of off-premises catered events a licensee may hold at any

given time. At no time may an off-premises catering permittee

agree to hold a catered event that includes the sale of alcohol

at a location within a dry municipality. In addition, the off-

premises catering permittee shall give the local police

department or the Pennsylvania State Police, if there is no

local police department, written notice at least forty-eight

hours prior to each off-premises catered event. Written notice

shall consist of notifying the police of the date, time and

place of the impending sale of alcoholic beverages.

(h) (g)  The Notwithstanding any other provision of law or

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regulation, the holder of a hotel license or a restaurant

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license or an eating place license retail license may have up to 

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four hours per day and up to fourteen hours per week during

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which the holder discounts the price of alcoholic beverages. The

licensee may use as many of the fourteen hours per business day

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as the licensee chooses up to four hours per day so long as the

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hours do not exceed fourteen hours in any given week and so long

as no discounts are given between the hours of midnight and the

legal closing time and so long as notice of all happy hours is

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visibly posted on the licensed premises seven days prior to the

happy hour.

Section 4.  Section 493(10) of the act, amended December 20,

2000 (P.L.992, No.141), is amended and the section is amended by

adding a paragraph to read:

Section 493.  Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(10)  Entertainment on Licensed Premises (Except Clubs);

Permits; Fees. For any licensee, his servants, agents or

employes, except club licensees, public venue licensees or

performing arts facility licensees, to permit in any licensed

premises or in any place operated in connection therewith,

dancing, theatricals or floor shows of any sort, or moving

pictures other than television, or such as are exhibited through

machines operated by patrons by the deposit of coins, which

project pictures on a screen not exceeding in size twenty-four

by thirty inches and which forms part of the machine, unless the

licensee shall first have obtained from the board a special

permit to provide such entertainment, or for any licensee, under

any circumstances, to permit in any licensed premises or in any

place operated in connection therewith any lewd, immoral or

improper entertainment, regardless of whether a permit to

provide entertainment has been obtained or not. The special

permit may be used only during the hours when the sale of liquor

or malt or brewed beverages is permitted, unless the licensee

holds an extended hours food license under section 499(b) which

license would allow the special permit to be used while the

establishment is open, and between eleven o'clock antemeridian

on Sunday and two o'clock antemeridian on the following Monday,

regardless of whether the licensee possesses a Sunday sales

permit. The board shall have power to provide for the issue of

such special permits, and to collect an annual fee for such

permits as prescribed in section 614-A of the act of April 9,

1929 (P.L.177, No.175), known as "The Administrative Code of

1929." All such fees shall be paid into the State Stores Fund.

No such permit shall be issued in any municipality which, by

ordinance, prohibits amusements in licensed places. Any

violation of this clause shall, in addition to the penalty

herein provided, subject the licensee to suspension or

revocation of his permit and his license.

* * *

(33)  Off-premises Catering Permit; Fees. For any licensee,

his servants, agents or employes to cater an event that includes

the sale and service of alcoholic beverages at a location other

than the licensed premises, unless the licensee shall first have

obtained from the board a special permit to provide such

catering services. Only those licensees currently holding a

valid restaurant, hotel or eating place license that has been

certified under the board's responsible alcohol management

program as required by section 471.1 shall be allowed to apply

for such a permit. The board shall have the power to provide for

the issue of such special permits to qualified licensees and to

collect an annual fee for such permits as prescribed in section

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614-A of "The Administrative Code of 1929." that shall not

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exceed five hundred dollars ($500) per year. All such fees shall

be paid into the State Stores Fund. Any violation of this act

shall subject the licensee to suspension or revocation of his

permit and preclude him from applying for a future off-premises

catering permit.

Section 5.  This act shall take effect in 60 days.