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PRINTER'S NO. 2165
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1906
Session of
2021
INTRODUCED BY MERCURI, BERNSTINE, R. BROWN, GAYDOS, KERWIN,
MIHALEK, MILLARD, ROTHMAN, ROWE, ROZZI, RYAN, SMITH AND
WARNER, SEPTEMBER 27, 2021
REFERRED TO COMMITTEE ON LIQUOR CONTROL, SEPTEMBER 27, 2021
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; 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," in
licenses and regulations and liquor, alcohol and malt and
brewed beverages, further providing for shipment of wine.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 488 of the act of April 12, 1951 (P.L.90,
No.21), known as the Liquor Code, is amended by adding a
subsection to read:
Section 488. Shipment of Wine.--* * *
(m) Notwithstanding any other provision of law, a person
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licensed by the board as a warehouse wine direct to consumer
licensee, as provided under this subsection, may ship any wine
offered for sale at wholesale by the board and available to the
warehouse wine direct to consumer licensee from the board for
sale at retail to any resident of this Commonwealth who is at
least twenty-one (21) years of age for the resident's personal
use and not for resale and in compliance with the provisions
this subsection. The following shall apply:
(1) A warehouse wine direct to consumer licensee must
purchase all wine for sale to residents of this Commonwealth
from the board under the same terms and conditions of a wine
expanded permit holder under section 415.
(2) Prior to issuing a warehouse wine direct to consumer
license, the board shall require an applicant to:
(i) File an application with the board.
(ii) Pay a licensing fee of ten thousand dollars ($10,000).
(iii) Provide the board with:
(A) a copy of the applicant's lease, deed or other written
proof of occupancy for the applicant's proposed warehouse
premises; and
(B) a diagram showing the floor plan for a warehouse
premises that is at least forty thousand square feet in area and
which, in addition to storage, contains an office space for the
licensed business.
(iv) Provide documentation which evidences that the
applicant has obtained a sales tax license from the Department
of Revenue.
(v) Provide the board with any other information that the
board deems necessary and appropriate.
(3) A warehouse wine direct to consumer licensee shall:
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(i) Report to the board each year the total amount of wine
shipped to residents of this Commonwealth in the preceding
calendar year.
(ii) Permit the board, the enforcement bureau or the
Secretary of Revenue, or their designated representatives, to
enter and inspect the licensed premises and audit the warehouse
direct to consumer licensee records upon request.
(iii) Require proof of age of the recipient, in a manner or
format approved by the board for sale by direct wine shipper
licensees, before wine is shipped to a resident of this
Commonwealth.
(iv) Ensure that all boxes or exterior containers of wine
shipped directly to a resident of this Commonwealth are
conspicuously labeled with the words "CONTAINS ALCOHOL:
SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
DELIVERY."
(v) Pay to the Department of Revenue all taxes due on sales
to residents of this Commonwealth. The wine delivered under this
subsection shall be subject to only the following:
(A) All warehouse direct to consumer licensees shall comply
with the provisions of section 201(f), (k) and (o) of the Tax
Reform Code of 1971, regarding the purchase of wine from a
Pennsylvania Liquor Store.
(B) The sale of wine by a warehouse direct to consumer
licensee shall be considered a "purchase at retail" under
section 201(f) of the Tax Reform Code of 1971, a "sale at
retail" under section 201(k) of the Tax Reform Code of 1971 or a
"use" under section 201(o) of the Tax Reform Code of 1971.
(C) A warehouse direct to consumer licensee may, when filing
its required returns under Article II of the Tax Reform Code of
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1971, request a credit of any taxes paid in accordance with
paragraphs (1) and (2). The Department of Revenue may promulgate
rules or regulations and prescribe forms as may be necessary to
implement the provisions of this subsection.
(vi) Be prohibited from selling wine to a consumer located
in this Commonwealth at a price that is less than the warehouse
direct to consumer licensee's purchase price for the wine from
the board.
(vii) Be prohibited from selling any private label product.
(viii) Annually renew its license by paying a renewal fee of
one thousand dollars ($1,000).
(ix) Be prohibited from selling wine to any person or entity
holding any license issued by the board for resale.
(x) Be prohibited from selling wine to any walk-in or in-
person consumer at its warehouse premises.
(xi) Ship only to account holders of the warehouse direct to
consumer licensee.
(xii) Not hold any other license or permit issued by the
board in the warehouse wine direct to consumer licensee's name
or in the name of any subsidiary or related entity, or in the
name of any principal, officer, director, member, manager,
shareholder or general or limited partner.
(xiii) Not have or create any interior connection, inside
passage or communication between the licensed warehouse direct
to consumer licensed premises and any other business, whether
licensed or not licensed.
(xiv) Apply for and hold only one warehouse direct to
consumer license for one location in this Commonwealth in the
warehouse wine direct to consumer licensee's name or in the name
of any subsidiary or related entity, or in the name of any
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principal, officer, director, member, manager, shareholder or
general or limited partner .
(xv) Be prohibited from transferring its warehouse direct to
consumer license to any successor owner of the licensed business
and any successor shall be required to obtain a new warehouse
direct to consumer license.
(xvi) Be prohibited from selling any product other than wine
and wine gift baskets, including foodstuffs contained in wine
gift baskets, wine-related glassware, wine bottle openers and
other items ancillary to the sale and consumption of wine.
(xvii) Not be required to obtain a bailee for hire permit
for its warehouse premises, nor a transporter for hire permit
for vehicles used by the warehouse wine direct to consumer
licensee to transport wine to and from a board warehouse and the
warehouse direct to consumer licensee's licensed warehouse
premises. The privileges of other permits shall be included in
the warehouse direct to consumer license.
(xviii) Ship wine to unlicensed retail customers in this
Commonwealth only by way of a common carrier and may not ship
wine to purchasers in any vehicle owned or leased by the
warehouse wine direct to consumer licensee in its own name or in
the name of any subsidiary or related entity, or in the name of
any principal, officer, director, member, manager, shareholder
or general or limited partner of the licensee, and the common
carrier shall be contractually obligated to the warehouse direct
to consumer licensee to check the recipient's identification and
proof of age prior to delivery and refrain from delivering a
package if no person of demonstrated proper age is present to
receive the package.
(4) Any person who resells wine obtained under this section
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commits a misdemeanor of the second degree. A person convicted
of selling or offering to sell any wine in violation of this
section shall, in addition to any other penalty prescribed by
law, be sentenced to pay a fine of four dollars ($4) per fluid
ounce for each container of wine found on the premises where the
sale was made or attempted. The amount of fine per container
shall be based on the capacity of the container when full,
whether or not it is full at the time of sale or attempted sale.
All wine found on the premises shall be confiscated.
(5) The board may promulgate rules and regulations necessary
to implement and enforce the provisions of this section.
(6) The board shall submit annual reports to the
Appropriations Committee of the Senate, the Law and Justice
Committee of the Senate, the Appropriations Committee of the
House of Representatives and the Liquor Control Committee of the
House of Representatives summarizing the number of warehouse
wine direct to consumer licenses issued by the board and the
quantity of wine sold by warehouse wine direct to consumer
licensee pursuant to this section.
(7) Receipts from the tax under this section shall be
deposited into the General Fund.
(8) Deliveries made under this section shall only be made by
common carriers holding transporter for hire permits. The
warehouse wine direct to consumer licensee and common carrier
with a transporter for hire permit which makes deliveries under
this section shall:
(i) keep records as required under section 512, as required
for the direct shipment of wine; and
(ii) permit the board and the enforcement bureau, or their
designated representatives, to inspect the records under section
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513.
Section 2. This act shall take effect in 60 days.
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