THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SONNEY, MOUL, BARRAR, EVERETT, GRELL, KILLION, MILLARD, REICHLEY, CREIGHTON, FARRY AND P. COSTA, FEBRUARY 28, 2011

AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 9, 2012   

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 shipment of wine into Commonwealth and

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for limited wineries.

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, reenacted and amended June 29,

1987 (P.L.32, No.14) and added February 21, 2002 (P.L.103,

No.10), is amended to read:

Section 488.  Shipment of Wine [into Commonwealth].--(a)  The

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shipment of wine [from out-of-State] to residents of this

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Commonwealth [is [prohibited, except as otherwise] allowed as  

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[provided for in] shall be governed by this section.

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(b)  Notwithstanding any other provision of this act or law

to the contrary, a person licensed by the board or another state

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as a producer[, supplier, importer, wholesaler, distributor or

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retailer] of wine and who obtains a direct wine shipper license

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as provided for in this section may ship [up to nine liters per

month of] any wine [not included on the list provided for in

subsection (c)] on the [Internet] order of any resident of this

Commonwealth who is at least twenty-one (21) years of age for

such resident's personal use and not for resale. This section

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shall represent the only means through which wine may be shipped

into this Commonwealth.

(c)  [Each month, the board shall publish on the Internet a

list of all classes, varieties and brands of wine available for

sale in the Pennsylvania Liquor Stores. A person holding a

direct shipper license may ship only those classes, varieties

and brands of wine not included on the list at the time an

Internet order is placed.] (Reserved). Prior to issuing a direct

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wine shipper license, the board shall require the person seeking

the license to:

(1)  File an application with the board.

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

(3)  Provide to the board a true copy of the applicant's

current alcoholic beverage license issued by the board or

another state, if applicable.

(4)  Provide documentation to the board which evidences that

the applicant has obtained a sales tax license from the

Department of Revenue.

(5)  Provide the board with any other information that the

board deems necessary and appropriate.

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

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(1)  [Not ship more than nine liters per month on the

Internet order of any person in this Commonwealth.] Add the six

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per centum sales tax to a wine order shipped into this

Commonwealth and remit the tax to the Department of Revenue. On

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a quarterly basis, pay to the Department of Revenue all taxes

due on sales to residents of this Commonwealth. The amount of

such taxes shall be calculated as if the sale were in this

Commonwealth at the locations where delivery is made.

(2)  Report to the board each year the total of wine shipped

[into] to residents of this Commonwealth in the preceding

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calendar year.

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

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Secretary of Revenue, or their designated representatives, to

perform an audit of the [out-of-State] direct wine shipper's

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records upon request.

(4)  Be deemed to have submitted to the jurisdiction of the

board, any other State agency and the courts of this

Commonwealth for purposes of enforcement of this section and any

related laws, rules or regulations, including the collection and

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remission of taxes as required under this section.

(5)  Require proof of age of the recipient, in a manner or

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format approved by the board, before any wine is shipped to a

resident of this Commonwealth.

(6)  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."

(7)  Annually renew its license by paying a renewal fee

established by the board.

(e)  [A direct shipper may ship wine on the [Internet] order

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of a resident into this Commonwealth provided that the wine [is

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shipped to a Pennsylvania Liquor Store selected by the resident.

The wine will be subject to taxes in the same manner as wine

sold directly by the board. The wine will not be released by the

State store until all moneys due, including all taxes and fees,

have been paid by the resident.] (Reserved). will be subject to

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to all taxes due on sales to residents of this Commonwealth with

the amount of such taxes to be calculated as if the sale were in

this Commonwealth at the location where delivery is made.

(f)  [A person shall sign an affidavit provided by the

Pennsylvania Liquor Store where the wine was delivered to

stating that the wine will only be used for the person's

personal use.] Any person who resells wine obtained under this

section commits a misdemeanor of the second degree.

(g)  The board may promulgate such rules and regulations as

are necessary to implement and enforce the provisions of this

section. [The board may charge the resident a fee to cover the

cost associated with processing the Internet order.]

(h)  [The board shall submit [monthly] annual reports to the

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Appropriations Committee and the Law and Justice Committee of

the Senate and to the Appropriations Committee and the Liquor

Control Committee of the House of Representatives summarizing

the number of direct shipper licenses issued by the board[,] and 

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the quantity of wine sold by direct wine shippers pursuant to

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this section [and the total dollar value of sales under this

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section.] (Reserved).

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(i)  The term "wine" as used in this section shall mean

liquor which is fermented from grapes and other fruits, having

alcoholic content of twenty-four per centum or less. The term

"wine" shall not include malt or brewed beverages nor shall wine

include any products containing alcohol derived from malt,

grain, cereal, molasses or cactus.

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

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shall mean a person who holds a direct wine shipper license as

provided for in this section and includes a limited winery.

Section 2.  Section 505.2(a) of the act is amended by adding

a clause to read:

Section 505.2.  Limited Wineries.--(a)  In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

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(2.1)  Notwithstanding any other provision of this act or law

to the contrary, only ship wine to residents of this

Commonwealth in accordance with the provisions of section 488.

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Section 2 3.  This act shall take effect in 60 days.

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