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 shipment of wine into Commonwealth and
18for limited wineries.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1.  Section 488 of the act of April 12, 1951 (P.L.90,
22No.21), known as the Liquor Code, reenacted and amended June 29,
231987 (P.L.32, No.14) and added February 21, 2002 (P.L.103,
24No.10), is amended to read:

25Section 488.  Shipment of Wine [into Commonwealth].--(a)  The

1shipment of wine [from out-of-State] to residents of this
2Commonwealth [is prohibited, except as otherwise provided for
3in] shall be governed by this section.

4(b)  Notwithstanding any other provision of this act or law
5to the contrary, a person licensed by the board or another state
6as a producer[, supplier, importer, wholesaler, distributor or
7retailer] of wine and who obtains a direct wine shipper license
8as provided for in this section may ship [up to nine liters per
9month of] any wine [not included on the list provided for in
10subsection (c)] on the [Internet] order of any resident of this
11Commonwealth who is at least twenty-one (21) years of age for
12such resident's personal use and not for resale.

13(c)  [Each month, the board shall publish on the Internet a
14list of all classes, varieties and brands of wine available for
15sale in the Pennsylvania Liquor Stores. A person holding a
16direct shipper license may ship only those classes, varieties
17and brands of wine not included on the list at the time an
18Internet order is placed.] Prior to issuing a direct wine 
19shipper license, the board shall require the person seeking the 
20license 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 the applicant's
24current alcoholic beverage license issued by the board or
25another state, if applicable.

26(4)  Provide documentation to the board which evidences that
27the applicant has obtained a sales tax license from the
28Department of Revenue.

29(5)  Provide the board with any other information that the
30board deems necessary and appropriate.

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

2(1)  [Not ship more than nine liters per month on the
3Internet order of any person in this Commonwealth.] On a 
4quarterly basis, pay to the Department of Revenue all taxes due 
5on sales to residents of this Commonwealth. The amount of such 
6taxes shall be calculated as if the sale were in this 
7Commonwealth at the locations where delivery is made.

8(2)  Report to the board each year the total of wine shipped
9[into] to residents of this Commonwealth in the preceding
10calendar year.

11(3)  Permit the board, the enforcement bureau or the
12Secretary of Revenue, or their designated representatives, to
13perform an audit of the [out-of-State] direct wine shipper's
14records upon request.

15(4)  Be deemed to have submitted to the jurisdiction of the
16board, any other State agency and the courts of this
17Commonwealth for purposes of enforcement of this section and any
18related laws, rules or regulations, including the collection and 
19remission of taxes as required under this section.

20(5)  Require proof of age of the recipient, in a manner or
21format approved by the board, before any wine is shipped to a
22resident of this Commonwealth.

23(6)  Ensure that all boxes or exterior containers of wine
24shipped directly to a resident of this Commonwealth are
25conspicuously labeled with the words "CONTAINS ALCOHOL:
26SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
27DELIVERY."

28(7)  Annually renew its license by paying a renewal fee
29established by the board.

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

1of a resident into this Commonwealth provided that the wine [is
2shipped to a Pennsylvania Liquor Store selected by the resident.
3The wine will be subject to taxes in the same manner as wine
4sold directly by the board. The wine will not be released by the
5State store until all moneys due, including all taxes and fees,
6have been paid by the resident.] will be subject to to all taxes 
7due on sales to residents of this Commonwealth with the amount 
8of such taxes to be calculated as if the sale were in this 
9Commonwealth at the location where delivery is made.

10(f)  [A person shall sign an affidavit provided by the
11Pennsylvania Liquor Store where the wine was delivered to
12stating that the wine will only be used for the person's
13personal use.] Any person who resells wine obtained under this
14section commits a misdemeanor of the second degree.

15(g)  The board may promulgate such rules and regulations as
16are necessary to implement and enforce the provisions of this
17section. [The board may charge the resident a fee to cover the
18cost associated with processing the Internet order.]

19(h)  The board shall submit [monthly] annual reports to the
20Appropriations Committee and the Law and Justice Committee of
21the Senate and to the Appropriations Committee and the Liquor
22Control Committee of the House of Representatives summarizing
23the number of direct shipper licenses issued by the board[,] and
24the quantity of wine sold by direct wine shippers pursuant to
25this section [and the total dollar value of sales under this
26section].

27(i)  The term "wine" as used in this section shall mean
28liquor which is fermented from grapes and other fruits, having
29alcoholic content of twenty-four per centum or less. The term
30"wine" shall not include malt or brewed beverages nor shall wine

1include any products containing alcohol derived from malt,
2grain, cereal, molasses or cactus.

3(j)  The term "direct wine shipper" as used in this section
4shall mean a person who holds a direct wine shipper license as
5provided for in this section and includes a limited winery.

6Section 2.  Section 505.2(a) of the act is amended by adding
7a clause to read:

8Section 505.2.  Limited Wineries.--(a)  In the interest of
9promoting tourism and recreational development in Pennsylvania,
10holders of a limited winery license may:

11* * *

12(2.1)  Notwithstanding any other provision of this act or law
13to the contrary, only ship wine to residents of this
14Commonwealth in accordance with the provisions of section 488.

15* * *

16Section 3.  This act shall take effect in 60 days.