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                                                       PRINTER'S NO. 330

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 293 Session of 2007


        INTRODUCED BY FERLO, BOSCOLA, ERICKSON, ORIE, C. WILLIAMS, VANCE
           AND M. WHITE, MARCH 9, 2007

        REFERRED TO LAW AND JUSTICE, MARCH 9, 2007

                                     AN ACT

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

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20     Section 1.  Section 488 of the act of April 12, 1951 (P.L.90,
    21  No.21), known as the Liquor Code, reenacted and amended June 29,
    22  1987 (P.L.32, No.14) and added February 21, 2002 (P.L.103,
    23  No.10), is amended to read:
    24     Section 488.  Shipment of Wine [into Commonwealth].--(a)  The
    25  shipment of wine [from out-of-State] to residents of this

     1  Commonwealth [is prohibited, except as otherwise provided for
     2  in] shall be governed by this section.
     3     (b)  Notwithstanding any other provision of this act or law
     4  to the contrary, a person licensed by the board or another state
     5  as a producer, supplier, importer, wholesaler, distributor or
     6  retailer of wine and who obtains a direct wine shipper license
     7  as provided for in this section may ship up to [nine] eighteen
     8  liters per month of any wine [not included on the list provided
     9  for in subsection (c)] on the Internet or mail order of any
    10  resident of this Commonwealth who is at least twenty-one (21)
    11  years of age for such resident's personal use and not for
    12  resale.
    13     [(c)  Each month, the board shall publish on the Internet a
    14  list of all classes, varieties and brands of wine available for
    15  sale in the Pennsylvania Liquor Stores. A person holding a
    16  direct shipper license may ship only those classes, varieties
    17  and brands of wine not included on the list at the time an
    18  Internet order is placed.]
    19     (c.1)  Prior to issuing a direct wine shipper license, the
    20  board shall require the person seeking the license to:
    21     (1)  File an application with the board.
    22     (2)  Pay a one hundred dollar ($100) registration fee.
    23     (3)  Provide to the board a true copy of its current
    24  alcoholic beverage license issued by the board or another state,
    25  if applicable.
    26     (4)  Provide the board with any other information the board
    27  deems necessary and appropriate.
    28     (d)  [An out-of-State] A direct wine shipper shall:
    29     (1)  Not ship more than [nine] eighteen liters per month on
    30  the Internet or mail order of any person in this Commonwealth.
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     1     (2)  Report to the board each year the total of wine shipped
     2  [into] to residents of this Commonwealth in the preceding
     3  calendar year.
     4     (3)  Permit the board or the Secretary of Revenue, or their
     5  designated representatives, to perform an audit of the [out-of-
     6  State] direct wine shipper's records upon request.
     7     (4)  Be deemed to have submitted to the jurisdiction of the
     8  board, any other State agency and the courts of this
     9  Commonwealth for purposes of enforcement of this section and any
    10  related laws, rules or regulations.
    11     (5)  Ensure that all containers of wine shipped directly to a
    12  resident in this Commonwealth are conspicuously labeled with the
    13  words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
    14  REQUIRED FOR DELIVERY."
    15     (6)  Annually pay to the Department of Revenue all taxes due
    16  on sales to residents of this Commonwealth in the preceding
    17  calendar year and the amount of such taxes shall be calculated
    18  as if the sale were in this Commonwealth at the location where
    19  delivery is made.
    20     (7)  Annually renew its license by paying a renewal fee
    21  established by the board.
    22     (e)  A direct shipper may ship wine on the Internet or mail
    23  order of a resident into this Commonwealth provided that the
    24  wine [is shipped to a Pennsylvania Liquor Store selected by the
    25  resident. The wine will be subject to taxes in the same manner
    26  as wine sold directly by the board. The wine will not be
    27  released by the State store until all moneys due, including all
    28  taxes and fees, have been paid by the resident.] will be subject
    29  to all taxes due on sales to residents of this Commonwealth with
    30  the amount of such taxes to be calculated as if the sale were in
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     1  this Commonwealth at the location where delivery is made.
     2     (f)  [A person shall sign an affidavit provided by the
     3  Pennsylvania Liquor Store where the wine was delivered to
     4  stating that the wine will only be used for the person's
     5  personal use.] Any person who resells wine obtained under this
     6  section commits a misdemeanor of the second degree.
     7     (g)  The board may promulgate such rules and regulations as
     8  are necessary to implement and enforce the provisions of this
     9  section. [The board may charge the resident a fee to cover the
    10  cost associated with processing the Internet order.]
    11     (h)  The board shall submit [monthly] annual reports to the
    12  Appropriations Committee and the Law and Justice Committee of
    13  the Senate and to the Appropriations Committee and the Liquor
    14  Control Committee of the House of Representatives summarizing
    15  the number of direct shipper licenses issued by the board[,] and
    16  the quantity of wine sold by direct wine shippers pursuant to
    17  this section [and the total dollar value of sales under this
    18  section].
    19     (i)  The term "wine" as used in this section shall mean
    20  liquor which is fermented from grapes and other fruits, having
    21  alcoholic content of twenty-four per centum or less. The term
    22  "wine" shall not include malt or brewed beverages nor shall wine
    23  include any products containing alcohol derived from malt,
    24  grain, cereal, molasses or cactus.
    25     (j)  The term "direct wine shipper" as used in this section
    26  shall mean a person who holds a direct wine shipper license as
    27  provided in this section.
    28     Section 2.  This act shall take effect in 60 days.


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