AN ACT

 

1Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2reenacted, "An act relating to alcoholic liquors, alcohol and
3malt and brewed beverages; amending, revising, consolidating
4and changing the laws relating thereto; regulating and
5restricting the manufacture, purchase, sale, possession,
6consumption, importation, transportation, furnishing, holding
7in bond, holding in storage, traffic in and use of alcoholic
8liquors, alcohol and malt and brewed beverages and the
9persons engaged or employed therein; defining the powers and
10duties of the Pennsylvania Liquor Control Board; providing
11for the establishment and operation of State liquor stores,
12for the payment of certain license fees to the respective
13municipalities and townships, for the abatement of certain
14nuisances and, in certain cases, for search and seizure
15without warrant; prescribing penalties and forfeitures;
16providing for local option, and repealing existing laws,"
17further providing for <-definitions, for general powers of the 
18Pennsylvania Liquor Control Board, for sales by Pennsylvania 
19liquor stores, for shipment of wine into Commonwealth and for
20limited wineries.

21The General Assembly of the Commonwealth of Pennsylvania
22hereby enacts as follows:

<-23Section 1. Section 488 of the act of April 12, 1951 (P.L.90,
24No.21), known as the Liquor Code, reenacted and amended June 29,
251987 (P.L.32, No.14) and added February 21, 2002 (P.L.103,

1No.10), is amended to read:

<-2Section 1. The definition of "eligible entity" in section
3102 of the act of April 12, 1951 (P.L.90, No.21), known as the
4Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14)
5and amended July 5, 2012 (P.L.1007, No.116), is amended to read:

6Section 102. Definitions.--The following words or phrases,
7unless the context clearly indicates otherwise, shall have the
8meanings ascribed to them in this section:

9* * *

10"Eligible entity" shall mean a city of the third class, a 
11hospital, a church, a synagogue, a volunteer fire company, a 
12volunteer ambulance company, a volunteer rescue squad, a unit of 
13a nationally chartered club which has been issued a club liquor 
14license, a club which has been issued a club liquor license and 
15which, as of December 31, 2002, has been in existence for at 
16least 100 years, a library, a nationally accredited Pennsylvania 
17nonprofit zoological institution licensed by the United States 
18Department of Agriculture, a nonprofit agricultural association 
19in existence for at least ten years, a bona fide sportsmen's 
20club in existence for at least ten years, a nationally chartered 
21veterans' organization and any affiliated lodge or subdivision 
22of such organization, a fraternal benefit society that is 
23licensed to do business in this Commonwealth and any affiliated 
24lodge or subdivision of such fraternal benefit society, a museum 
25operated by a nonprofit corporation, a nonprofit corporation 
26engaged in the performing arts, an arts council, a nonprofit 
27corporation that operates an arts facility or museum, a 
28nonprofit organization as defined under section 501(c)(3) of the 
29Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 
30501(c)(3)) whose purpose is to protect the architectural 

1heritage of boroughs or a township of the second class and which 
2has been recognized as such by a municipal resolution, a 
3nonprofit organization as defined under section 501(c)(3) of the 
4Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 
5501(c)(3)) conducting a regatta in a city of the second class 
6with the permit to be used on State park grounds or conducting a 
7family-oriented celebration as part of Welcome America in a city 
8of the first class on property leased from that city for more 
9than fifty years, a nonprofit organization as defined under 
10section 501(c)(3) of the Internal Revenue Code of 1986 (26 
11U.S.C. § 501(c)(3)) whose purpose is to raise funds for the 
12research and treatment of cystic fibrosis, a nonprofit 
13organization as defined under section 501(c)(3) of the Internal 
14Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to 
15educate the public on issues dealing with watershed 
16conservation, a nonprofit organization as defined under section 
17501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-
18514, 26 U.S.C. § 501(c)(3)) whose purpose is to provide equine 
19assisted activities for children and adults with special needs, 
20a nonprofit economic development agency in a city of the second 
21class with the primary function to serve as an economic 
22generator for the greater southwestern Pennsylvania region by 
23attracting and supporting film, television and related media 
24industry projects and coordinating government and business 
25offices in support of a production, a county tourist promotion 
26agency as defined in section 3(1) of the act of April 28, 1961 
27(P.L.111, No.50), known as the "Tourist Promotion Law," a junior 
28league that is a nonprofit organization as defined under section 
29501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. § 
30501(c)(3)) that is comprised of women whose purpose is 

1exclusively educational and charitable in promoting the 
2volunteerism of women and developing and participating in 
3community projects and that has been in existence for over 
4seventy years, a nonprofit organization as defined under section 
5501(c)(3) of the Internal Revenue Code of 1986 and whose purpose 
6is the education and promotion of American history, a nonprofit 
7organization as defined under section 501(c)(6) of the Internal 
8Revenue Code of 1986 whose purpose is to support business and 
9industry, a brewery which has been issued a license to 
10manufacture malt or brewed beverages and has been in existence 
11for at least 100 years or a club recognized by Rotary 
12International and whose purpose is to provide service to others, 
13to promote high ethical standards and to advance world 
14understanding, goodwill and peace through its fellowship of 
15business, professional and community leaders or a nonprofit 
16organization as defined under section 501(c)(3) of the Internal 
17Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) 
18whose purpose is to promote mushrooms while supporting local and 
19regional charities, a museum operated by a not-for-profit 
20corporation in a city of the second class A, a nonprofit 
21organization as defined under section 501(c)(3) of the Internal 
22Revenue Code of 1986 which is located in a city of the second 
23class A and has as its purpose economic and community 
24development, a nonprofit organization as defined under section 
25501(c)(3) or (6) of the Internal Revenue Code of 1986 that is 
26located in a city of the third class in a county of the fifth 
27class, a nonprofit social service organization defined under 
28section 501(c)(3) of the Internal Revenue Code of 1986 located 
29in a county of the third class whose purpose is to serve 
30individuals and families in that county of the third class, a 

1nonprofit organization as defined under section 501(c)(3) of the 
2Internal Revenue Code of 1986 whose main purpose is to 
3temporarily foster stray and unwanted animals and match them to 
4suitable permanent homes or a nonprofit organization as defined 
5under section 501(c)(3) of the Internal Revenue Code of 1986 who 
6operates either a Main Street Program or Elm Street Program 
7recognized by the Commonwealth, the National Trust for Historic 
8Preservation or both, a nonprofit radio station that is a member 
9of the National Public Radio network, a nonprofit public 
10television station that is a member of the Pennsylvania Public 
11Television Network or a nonprofit organization as defined under 
12section 501(c)(3) of the Internal Revenue Code of 1986 whose 
13purpose is to promote awareness, education and research and to 
14provide a support system for patients with neutropenia and their 
15families through a national resource network or a nonprofit 
16organization as defined under section 501(c)(3) of the Internal 
17Revenue Code of 1986 whose purpose is to allocate funds for 
18research to expedite a cure for achromatopsia.

19* * *

20Section 2. Section 207(b) of the act is amended to read:

21Section 207. General Powers of Board.--Under this act, the
22board shall have the power and its duty shall be:

23* * *

24(b) To control the manufacture, possession, sale,
25consumption, importation, use, storage, transportation and
26delivery of liquor, alcohol and malt or brewed beverages in
27accordance with the provisions of this act, and to fix the
28wholesale and retail prices at which liquors and alcohol shall
29be sold at Pennsylvania Liquor Stores. Prices shall be
30proportional with prices paid by the board to its suppliers and

1shall reflect any advantage obtained through volume purchases by
2the board. This proportional pricing provision shall not apply 
3to special liquor orders authorized under section 305(a) of this 
4act. The board may establish a preferential price structure for
5wines produced within this Commonwealth for the promotion of
6such wines, as long as the price structure is uniform within
7each class of wine purchased by the board. The board shall
8require each Pennsylvania manufacturer and each nonresident
9manufacturer of liquors, other than wine, selling such liquors
10to the board, which are not manufactured in this Commonwealth,
11to make application for and be granted a permit by the board
12before such liquors not manufactured in this Commonwealth shall
13be purchased from such manufacturer. Each such manufacturer
14shall pay for such permit a fee which, in the case of a
15manufacturer of this Commonwealth, shall be equal to that
16required to be paid, if any, by a manufacturer or wholesaler of
17the state, territory or country of origin of the liquors, for
18selling liquors manufactured in Pennsylvania, and in the case of
19a nonresident manufacturer, shall be equal to that required to
20be paid, if any, in such state, territory or country by
21Pennsylvania manufacturers doing business in such state,
22territory or country. In the event that any such manufacturer
23shall, in the opinion of the board, sell or attempt to sell
24liquors to the board through another person for the purpose of
25evading this provision relating to permits, the board shall
26require such person, before purchasing liquors from him or it,
27to take out a permit and pay the same fee as hereinbefore
28required to be paid by such manufacturer. All permit fees so
29collected shall be paid into the State Stores Fund. The board
30shall not purchase any alcohol or liquor fermented, distilled,

1rectified, compounded or bottled in any state, territory or
2country, the laws of which result in prohibiting the importation
3therein of alcohol or liquor, fermented, distilled, rectified,
4compounded or bottled in Pennsylvania.

5* * *

6Section 3. Section 305(a) of the act, amended May 8, 2003
7(P.L.1, No.1), is amended to read:

8Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
9board shall in its discretion determine where and what classes,
10varieties and brands of liquor and alcohol it shall make
11available to the public and where such liquor and alcohol will
12be sold. Every Pennsylvania Liquor Store shall be authorized to
13sell combination packages. If a person desires to purchase a
14class, variety or brand of liquor or alcohol not currently
15available from the board, he or she may place a special order
16for such item so long as the order is for two or more bottles.
17The board may require a reasonable deposit from the purchaser as
18a condition for accepting the order. The customer shall be
19notified immediately upon the arrival of the goods.

20In computing the retail price of such special orders for
21liquor or alcohol, the board shall not include the cost of
22freight or shipping before applying [the] a mark-up that shall 
23not exceed ten per centum of the cost of the product and taxes
24but shall add the freight or shipping charges to the price after
25the mark-up and taxes have been applied.

26Unless the customer pays for and accepts delivery of any such
27special order within ten days after notice of arrival, the store
28may place it in stock for general sale and the customer's
29deposit shall be forfeited.

30* * *

1Section 4. Section 488 of the act, added February 21, 2002 
2(P.L.103, No.10), is amended to read:

3Section 488. Shipment of Wine [into Commonwealth].--(a) The
4shipment of wine [from out-of-State] to residents of this
5Commonwealth [is prohibited, except as otherwise provided for
6in] shall be governed by this section.

7(b) Notwithstanding any other provision of this act or law
8to the contrary, a person licensed by the board or another state
9as a producer[, supplier, importer, wholesaler, distributor or
10retailer] of wine and who obtains a direct wine shipper license
11as provided for in this section may ship [up to nine liters per
12month of] any wine [not included on the list provided for in
13subsection (c)] on the [Internet] order of any resident of this
14Commonwealth who is at least twenty-one (21) years of age for
15such resident's personal use and not for resale.

16(c) [Each month, the board shall publish on the Internet a
17list of all classes, varieties and brands of wine available for
18sale in the Pennsylvania Liquor Stores. A person holding a
19direct shipper license may ship only those classes, varieties
20and brands of wine not included on the list at the time an
21Internet order is placed.] Prior to issuing a direct wine 
22shipper license, the board shall require the person seeking the 
23license to:

24(1) File an application with the board.

25(2) Pay a one hundred dollar ($100) registration fee.

26(3) Provide to the board a true copy of the applicant's
27current alcoholic beverage license issued by the board or
28another state, if applicable.

29(4) Provide documentation to the board which evidences that
30the applicant has obtained a sales tax license from the

1Department of Revenue.

2(5) Provide the board with any other information that the
3board deems necessary and appropriate.

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

5(1) [Not ship more than nine liters per month on the
6Internet order of any person in this Commonwealth.] On a 
7quarterly basis, pay to the Department of Revenue all taxes due 
8on sales to residents of this Commonwealth. The amount of <-such 
9taxes shall be calculated as if the sale were in this 
10Commonwealth at the locations where delivery is made. 
11Notw<-ithstanding any other provision of law to the contrary, the 
12wine delivered under the authority of this section will be 
13subject to the sales and use tax imposed by section 202 of the 
14act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform 
15Code of 1971," the sales and use tax imposed by Article XXXI-B 
16of the act of July 28, 1953 (P.L.723, No.230), known as the 
17"Second Class County Code," the sales and use tax imposed by the 
18act of June 5, 1991 (P.L.9, No.6), known as the "Pennsylvania 
19Intergovernmental Cooperation Authority Act for Cities of the 
20First Class," and the emergency State tax imposed on wines sold 
21by the board under the act of June 9, 1936 (1st Sp. Sess., 
22P.L.13, No.4), entitled "An act imposing an emergency State tax 
23on liquor, as herein defined, sold by the Pennsylvania Liquor 
24Control Board; providing for the collection and payment of such 
25tax; and imposing duties upon the Department of Revenue and the 
26Pennsylvania Liquor Control Board."

27(2) Report to the board each year the total of wine shipped
28[into] to residents of this Commonwealth in the preceding
29calendar year.

30(3) Permit the board, the enforcement bureau or the

1Secretary of Revenue, or their designated representatives, to
2perform an audit of the [out-of-State] direct wine shipper's
3records upon request.

4(4) Be deemed to have submitted to the jurisdiction of the
5board, any other State agency and the courts of this
6Commonwealth for purposes of enforcement of this section and any
7related laws, rules or regulations, including the collection and 
8remission of taxes as required under this section.

9(5) Require proof of age of the recipient, in a manner or
10format approved by the board, before any wine is shipped to a
11resident of this Commonwealth.

12(6) Ensure that all boxes or exterior containers of wine
13shipped directly to a resident of this Commonwealth are
14conspicuously labeled with the words "CONTAINS ALCOHOL:
15SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
16DELIVERY."

17(7) Annually renew its license by paying a renewal fee
18established by the board.

19(e) A direct shipper may ship wine on the [Internet] order
20of a resident into this Commonwealth provided that the wine [is
21shipped to a Pennsylvania Liquor Store selected by the resident.
22The wine will be subject to taxes in the same manner as wine
23sold directly by the board. The wine will not be released by the
24State store until all moneys due, including all taxes and fees,
25have been paid by the resident.] will be subject to<- to all taxes 
26due on sales to residents of this Commonwealth with the amount 
27of such taxes to be calculated as if the sale were in this 
28Commonwealth at the location where delivery is made. d<-elivered 
29under the authority of this section will be subject to the sales 
30and use tax imposed by section 202 of the Tax Reform Code of 

11971, the sales and use tax imposed by Article XXXI-B of the 
2Second Class County Code, the sales and use tax imposed by the 
3Pennsylvania Intergovernmental Cooperation Authority Act for 
4Cities of the First Class, and the emergency State tax imposed 
5on wines sold by the board under the act of June 9, 1936 (1st 
6Sp. Sess., P.L.13, No.4), entitled "An act imposing an emergency 
7State tax on liquor, as herein defined, sold by the Pennsylvania 
8Liquor Control Board; providing for the collection and payment 
9of such tax; and imposing duties upon the Department of Revenue 
10and the Pennsylvania Liquor Control Board."

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

12(1) keep records as required under section 512 pertaining to
13the direct shipment of wine; and

14(2) permit the board and the enforcement bureau, or their
15designated representatives, to inspect such records in
16accordance with section 513.

17(f) [A person shall sign an affidavit provided by the
18Pennsylvania Liquor Store where the wine was delivered to
19stating that the wine will only be used for the person's
20personal use.] Any person who resells wine obtained under this
21section commits a misdemeanor of the second degree.

22(g) The board may promulgate such rules and regulations as
23are necessary to implement and enforce the provisions of this
24section. [The board may charge the resident a fee to cover the
25cost associated with processing the Internet order.]

26(h) The board shall submit [monthly] annual reports to the
27Appropriations Committee and the Law and Justice Committee of
28the Senate and to the Appropriations Committee and the Liquor
29Control Committee of the House of Representatives summarizing
30the number of direct shipper licenses issued by the board[,] and

1the quantity of wine sold by direct wine shippers pursuant to
2this section [and the total dollar value of sales under this
3section].

4(i) The term "wine" as used in this section shall mean
5liquor which is fermented from grapes and other fruits, having
6alcoholic content of twenty-four per centum or less. The term
7"wine" shall not include malt or brewed beverages nor shall wine
8include any products containing alcohol derived from malt,
9grain, cereal, molasses or cactus.

10(j) The term "direct wine shipper" as used in this section
11shall mean a person who holds a direct wine shipper license as
12provided for in this section and includes a limited winery.

13Section <-2 5. Section 505.2(a) of the act is amended by
14adding a clause to read:

15Section 505.2. Limited Wineries.--(a) In the interest of
16promoting tourism and recreational development in Pennsylvania,
17holders of a limited winery license may:

18* * *

19(2.1) Notwithstanding any other provision of this act or law
20to the contrary, only ship wine to residents of this
21Commonwealth in accordance with the provisions of section 488.

22* * *

23Section <-3 6. This act shall take effect in 60 days.