THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL, PIPPY, BAKER, VANCE, WAUGH, ERICKSON, MENSCH, PICCOLA, PILEGGI AND FARNESE, MARCH 8, 2011

AS AMENDED ON THIRD CONSIDERATION, MARCH 27, 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.

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

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

Commonwealth [is prohibited, except as otherwise provided for

in] shall be governed by this section.

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

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

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] eighteen 

liters per month of any wine [not included on the list provided

for in subsection (c)] on the Internet, telephone or mail 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.

(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.]

(c.1)  Prior to issuing a direct 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 its current

alcoholic beverage license issued by the board or another state,

if applicable.

(4)  Provide the board with any other information the board

deems necessary and appropriate.

(5)  Provide documentation which evidences that it has

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obtained a sales tax license from the Department of Revenue.

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

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

the Internet, telephone or mail order of any person in this

Commonwealth.

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

[into] to residents of this Commonwealth in the preceding

calendar year.

(3)  Permit the board or the Secretary of Revenue, or their

designated representatives, to perform an audit of the [out-of-

State] direct wine shipper's 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.

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

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 in this Commonwealth are

conspicuously labeled with the words "CONTAINS ALCOHOL:

SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR

DELIVERY."

(7)  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 sales were in this Commonwealth at

the locations where delivery is made.

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

established by the board.

(e)  A direct shipper may ship wine on the Internet or mail 

order of a resident into this Commonwealth provided that the

wine [is 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.] will be subject

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

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 

the quantity of wine sold by direct wine shippers pursuant to

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

section].

(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

shall mean a person wine producer who holds a direct wine

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shipper license as provided in this section and includes a

limited winery.

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