H0790B1207A00479 DMS:CDM 03/19/13 #90 A00479

 

 

 

 

AMENDMENTS TO HOUSE BILL NO. 790

Sponsor: REPRESENTATIVE P. COSTA

Printer's No. 1207

 

1Amend Bill, page 1, lines 1 through 29; page 2, lines 1
2through 51, by striking out all of said lines on said pages and
3inserting

4Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
5reenacted, "An act relating to alcoholic liquors, alcohol and
6malt and brewed beverages; amending, revising, consolidating
7and changing the laws relating thereto; regulating and
8restricting the manufacture, purchase, sale, possession,
9consumption, importation, transportation, furnishing, holding
10in bond, holding in storage, traffic in and use of alcoholic
11liquors, alcohol and malt and brewed beverages and the
12persons engaged or employed therein; defining the powers and
13duties of the Pennsylvania Liquor Control Board; providing
14for the establishment and operation of State liquor stores,
15for the payment of certain license fees to the respective
16municipalities and townships, for the abatement of certain
17nuisances and, in certain cases, for search and seizure
18without warrant; prescribing penalties and forfeitures;
19providing for local option, and repealing existing laws,"
20further providing for general powers of the Pennsylvania
21Liquor Control Board, for board to establish State liquor
22stores, for when sales may be made at Pennsylvania Liquor
23Stores, for sales by Pennsylvania Liquor Stores, for shipment
24of wine into Commonwealth and for limited wineries.

25Amend Bill, page 2, lines 54 and 55; pages 3 through 243,
26lines 1 through 30; page 244, lines 1 through 21, by striking
27out all of said lines on said pages and inserting

28Section 1. Section 207(b) and (e) of the act of April 12,
291951 (P.L.90, No.21), known as the Liquor Code, reenacted and
30amended June 29, 1987 (P.L.32, No.14), are amended to read:

31Section 207. General Powers of Board.--Under this act, the
32board shall have the power and its duty shall be:

33* * *

34(b) To control the manufacture, possession, sale,

1consumption, importation, use, storage, transportation and
2delivery of liquor, alcohol and malt or brewed beverages in
3accordance with the provisions of this act, and to fix the
4wholesale and retail prices at which liquors and alcohol shall
5be sold at Pennsylvania Liquor Stores. Prices shall be
6[proportional with prices paid by the board to its suppliers and
7shall reflect any advantage obtained through volume purchases by
8the board. The board may establish a preferential price
9structure for wines produced within this Commonwealth for the
10promotion of such wines, as long as the price structure is
11uniform within each class of wine purchased by the board.] as 
12set forth by the board so long as the price of a particular item 
13is uniform throughout this Commonwealth. This pricing provision 
14shall not apply to special liquor orders authorized under 
15section 305(a). The board shall require each Pennsylvania
16manufacturer and each nonresident manufacturer of liquors, other
17than wine, selling such liquors to the board, which are not
18manufactured in this Commonwealth, to make application for and
19be granted a permit by the board before such liquors not
20manufactured in this Commonwealth shall be purchased from such
21manufacturer. Each such manufacturer shall pay for such permit a
22fee which, in the case of a manufacturer of this Commonwealth,
23shall be equal to that required to be paid, if any, by a
24manufacturer or wholesaler of the state, territory or country of
25origin of the liquors, for selling liquors manufactured in
26Pennsylvania, and in the case of a nonresident manufacturer,
27shall be equal to that required to be paid, if any, in such
28state, territory or country by Pennsylvania manufacturers doing
29business in such state, territory or country. In the event that
30any such manufacturer shall, in the opinion of the board, sell
31or attempt to sell liquors to the board through another person
32for the purpose of evading this provision relating to permits,
33the board shall require such person, before purchasing liquors
34from him or it, to take out a permit and pay the same fee as
35hereinbefore required to be paid by such manufacturer. All
36permit fees so collected shall be paid into the State Stores
37Fund. The board shall not purchase any alcohol or liquor
38fermented, distilled, rectified, compounded or bottled in any
39state, territory or country, the laws of which result in
40prohibiting the importation therein of alcohol or liquor,
41fermented, distilled, rectified, compounded or bottled in
42Pennsylvania.

43* * *

44(e) [Through the Department of General Services as agent,
45to] To lease and furnish and equip such buildings, rooms and
46other accommodations as shall be required for the operation of
47this act.

48* * *

49Section 2. Section 301 of the act is amended to read:

50Section 301. Board to Establish State Liquor Stores.--(a)
51The board shall establish, operate and maintain at such places

1throughout the Commonwealth as it shall deem essential and
2advisable, stores to be known as "Pennsylvania Liquor Stores,"
3for the sale of liquor and alcohol in accordance with the
4provisions of and the regulations made under this act; except
5that no store not so already located shall be located within
6three hundred feet of any elementary or secondary school, nor
7within a dry municipality without there first having been a
8referendum approving such location. When the board shall have
9determined upon the location of a liquor store in any
10municipality, it shall give notice of such location by public
11advertisement in two newspapers of general circulation. In
12cities of the first class, the location shall also be posted for
13a period of at least fifteen days following its determination by
14the board as required in section 403(g) of this act. The notice
15shall be posted in a conspicuous place on the outside of the
16premises in which the proposed store is to operate or, in the
17event that a new structure is to be built in a similarly visible
18location. If, within five days after the appearance of such
19advertisement, or of the last day upon which the notice was
20posted, fifteen or more taxpayers residing within a quarter of a
21mile of such location, or the City Solicitor of the city of the
22first class, shall file a protest with the court of common pleas
23of the county averring that the location is objectionable
24because of its proximity to a church, a school, or to private
25residences, the court shall forthwith hold a hearing affording
26an opportunity to the protestants and to the board to present
27evidence. The court shall render its decision immediately upon
28the conclusion of the testimony and from the decision there
29shall be no appeal. If the court shall determine that the
30proposed location is undesirable for the reasons set forth in
31the protest, the board shall abandon it and find another
32location. The board may establish, operate and maintain such
33establishments for storing and testing liquors as it shall deem
34expedient to carry out its powers and duties under this act.

35(b) The board may lease the necessary premises for such
36stores or establishments[, but all such leases shall be made
37through the Department of General Services as agent of the
38board. The board, through the Department of General Services,] 
39and shall have authority to purchase such equipment and
40appointments as may be required in the operation of such stores
41or establishments.

42Section 3. Section 304(b) of the act, amended December 8,
432004 (P.L.1810, No.239), is amended to read:

44Section 304. When Sales May Be Made at Pennsylvania Liquor
45Stores.--* * *

46(b) Certain Pennsylvania Liquor Stores operated by the board
47shall be open for Sunday retail sales between the hours of
48[noon] nine o'clock antemeridian and [five] nine o'clock
49postmeridian, except that no Sunday sales shall occur on Easter
50Sunday or Christmas day. The board shall open [up to twenty-five
51per centum of the total number of Pennsylvania Liquor Stores at

1its discretion] as many Pennsylvania Liquor Stores as it deems 
2necessary for Sunday sales as provided for in this subsection.
3The board shall submit yearly reports to the Appropriations and
4the Law and Justice Committees of the Senate and the
5Appropriations and the Liquor Control Committees of the House of
6Representatives summarizing the total dollar value of sales
7under this section.

8Section 4. Section 305(a) of the act, amended May 8, 2003
9(P.L.1, No.1), is amended to read:

10Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
11board shall in its discretion determine where and what classes,
12varieties and brands of liquor and alcohol it shall make
13available to the public and where such liquor and alcohol will
14be sold. Every Pennsylvania Liquor Store shall be authorized to
15sell combination packages. If a person desires to purchase a
16class, variety or brand of liquor or alcohol not currently
17available from the board, he or she may place a special order
18for such item so long as the order is for two or more bottles.
19The board may require a reasonable deposit from the purchaser as
20a condition for accepting the order. The customer shall be
21notified immediately upon the arrival of the goods.

22In computing the retail price of such special orders for
23liquor or alcohol, the board shall not include the cost of
24freight or shipping before applying [the] a mark-up that shall 
25not exceed ten per centum of the cost of the product and taxes
26but shall add the freight or shipping charges to the price after
27the mark-up and taxes have been applied.

28Unless the customer pays for and accepts delivery of any such
29special order within ten days after notice of arrival, the store
30may place it in stock for general sale and the customer's
31deposit shall be forfeited.

32* * *

33Section 5. Section 488 of the act, added February 21, 2002
34(P.L.103, No.10), is amended to read:

35Section 488. Shipment of Wine [into Commonwealth].--(a) The
36shipment of wine [from out-of-State] to residents of this
37Commonwealth [is prohibited, except as otherwise provided for
38in] shall be governed by this section.

39(b) Notwithstanding any other provision of this act or law
40to the contrary, a person licensed by the board or another state
41as a producer[, supplier, importer, wholesaler, distributor or
42retailer] of wine and who obtains a direct wine shipper license
43as provided for in this section may ship [up to nine liters per
44month of] any wine [not included on the list provided for in
45subsection (c)] on the [Internet] order of any resident of this
46Commonwealth who is at least twenty-one (21) years of age for
47such resident's personal use and not for resale.

48(c) [Each month, the board shall publish on the Internet a
49list of all classes, varieties and brands of wine available for
50sale in the Pennsylvania Liquor Stores. A person holding a
51direct shipper license may ship only those classes, varieties

1and brands of wine not included on the list at the time an
2Internet order is placed.] Prior to issuing a direct wine 
3shipper license, the board shall require the person seeking the 
4license to:

5(1) File an application with the board.

6(2) Pay a one hundred dollar ($100) registration fee.

7(3) Provide to the board a true copy of the applicant's
8current alcoholic beverage license issued by the board or
9another state, if applicable.

10(4) Provide documentation to the board which evidences that
11the applicant has obtained a sales tax license from the
12Department of Revenue.

13(5) Provide the board with any other information that the
14board deems necessary and appropriate.

15(d) [An out-of-State] A direct wine shipper shall:

16(1) [Not ship more than nine liters per month on the
17Internet order of any person in this Commonwealth.] On a 
18quarterly basis, pay to the Department of Revenue all taxes due 
19on sales to residents of this Commonwealth. Notwithstanding any 
20other provision of law to the contrary, the wine delivered under 
21the authority of this section will be subject to the sales and 
22use tax imposed by section 202 of the act of March 4, 1971 
23(P.L.6, No.2), known as the "Tax Reform Code of 1971," the sales 
24and use tax imposed by Article XXXI-B of the act of July 28, 
251953 (P.L.723, No.230), known as the "Second Class County Code," 
26the sales and use tax imposed by the act of June 5, 1991 (P.L.9, 
27No.6), known as the "Pennsylvania Intergovernmental Cooperation 
28Authority Act for Cities of the First Class," and the emergency 
29State tax imposed on wines sold by the board under the act of 
30June 9, 1936 (1st Sp. Sess., P.L.13, No.4), entitled "An act 
31imposing an emergency State tax on liquor, as herein defined, 
32sold by the Pennsylvania Liquor Control Board; providing for the 
33collection and payment of such tax; and imposing duties upon the 
34Department of Revenue and the Pennsylvania Liquor Control 
35Board."

36(2) Report to the board each year the total of wine shipped
37[into] to residents of this Commonwealth in the preceding
38calendar year.

39(3) Permit the board, the enforcement bureau or the
40Secretary of Revenue, or their designated representatives, to
41perform an audit of the [out-of-State] direct wine shipper's
42records upon request.

43(4) Be deemed to have submitted to the jurisdiction of the
44board, any other State agency and the courts of this
45Commonwealth for purposes of enforcement of this section and any
46related laws, rules or regulations, including the collection and 
47remission of taxes as required under this section.

48(5) Require proof of age of the recipient, in a manner or
49format approved by the board, before any wine is shipped to a
50resident of this Commonwealth.

51(6) Ensure that all boxes or exterior containers of wine

1shipped directly to a resident of this Commonwealth are
2conspicuously labeled with the words "CONTAINS ALCOHOL:
3SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
4DELIVERY."

5(7) Annually renew its license by paying a renewal fee
6established by the board.

7(e) A direct shipper may ship wine on the [Internet] order
8of a resident into this Commonwealth provided that the wine [is
9shipped to a Pennsylvania Liquor Store selected by the resident.
10The wine will be subject to taxes in the same manner as wine
11sold directly by the board. The wine will not be released by the
12State store until all moneys due, including all taxes and fees,
13have been paid by the resident.] delivered under the authority 
14of this section will be subject to the sales and use tax imposed 
15by section 202 of the "Tax Reform Code of 1971," the sales and 
16use tax imposed by Article XXXI-B of the "Second Class County 
17Code," the sales and use tax imposed by the "Pennsylvania 
18Intergovernmental Cooperation Authority Act for Cities of the 
19First Class," and the emergency State tax imposed on wines sold 
20by the board under the act of June 9, 1936 (1st Sp. Sess., 
21P.L.13, No.4).

22(e.1) A transporter for hire shall:

23(1) keep records as required under section 512 pertaining to
24the direct shipment of wine; and

25(2) permit the board and the enforcement bureau, or their
26designated representatives, to inspect such records in
27accordance with section 513.

28(f) [A person shall sign an affidavit provided by the
29Pennsylvania Liquor Store where the wine was delivered to
30stating that the wine will only be used for the person's
31personal use.] Any person who resells wine obtained under this
32section commits a misdemeanor of the second degree.

33(g) The board may promulgate such rules and regulations as
34are necessary to implement and enforce the provisions of this
35section. [The board may charge the resident a fee to cover the
36cost associated with processing the Internet order.]

37(h) The board shall submit [monthly] annual reports to the
38Appropriations Committee and the Law and Justice Committee of
39the Senate and to the Appropriations Committee and the Liquor
40Control Committee of the House of Representatives summarizing
41the number of direct shipper licenses issued by the board[,] and
42the quantity of wine sold by direct wine shippers pursuant to
43this section [and the total dollar value of sales under this
44section].

45(i) The term "wine" as used in this section shall mean
46liquor which is fermented from grapes and other fruits, having
47alcoholic content of twenty-four per centum or less. The term
48"wine" shall not include malt or brewed beverages nor shall wine
49include any products containing alcohol derived from malt,
50grain, cereal, molasses or cactus.

51(j) The term "direct wine shipper" as used in this section

1shall mean a person who holds a direct wine shipper license as
2provided for in this section and includes a limited winery.

3Section 6. Section 505.2(a) of the act is amended by adding
4a clause to read:

5Section 505.2. Limited Wineries.--(a) In the interest of
6promoting tourism and recreational development in Pennsylvania,
7holders of a limited winery license may:

8* * *

9(2.1) Notwithstanding any other provision of this act or law
10to the contrary, only ship wine to residents of this
11Commonwealth in accordance with the provisions of section 488.

12* * *

13Section 7. This act shall take effect in 60 days.

 

See A00479 in
the context
of HB0790