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," in
17Pennsylvania Liquor Control Board, further providing for
18general powers of board; in Pennsylvania Liquor Stores,
19further providing for board to establish State liquor stores,
20for when sales may be made at Pennsylvania liquor stores, for

1sales by Pennsylvania liquor stores; in licenses and
2regulations and liquor and alcohol and malt and brewed
3beverages, further providing for renewal of licenses and
4temporary provisions for licensees in armed service, for
5revocation and suspension of licenses and fines and for
6shipment of wine into Commonwealth; providing for direct 
7shipment of wine; further providing for unlawful acts
8relative to liquor, malt and brewed beverages and licensees;
9and, in disposition of moneys collected under provisions of 
10act, further providing for moneys paid into the State Stores
11Fund for use of the Commonwealth.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 207 of the act of April 12, 1951 (P.L.90,
15No.21), known as the Liquor Code, reenacted and amended June 29,
161987 (P.L.32, No.14), and amended February 21, 2002 (P.L.103,
17No.10) and December 8, 2004 (P.L.1810, No.239), is amended to
18read:

19Section 207. General Powers of Board.--Under this act, the
20board shall have the power and its duty shall be:

21(a) To buy, import or have in its possession for sale and
22sell liquor, alcohol, corkscrews, wine and liquor accessories,
23trade publications, gift cards, gift certificates, wine- or
24liquor-scented candles and wine glasses in the manner set forth
25in this act: Provided, however, That all purchases shall be made
26subject to the approval of the State Treasurer, or his
27designated deputy. The board shall buy liquor and alcohol at the
28lowest price and in the greatest variety reasonably obtainable.
29Such sales and purchases may be to or from persons or entities 
30located both in and outside this Commonwealth.

31(b) To control the manufacture, possession, sale,
32consumption, importation, use, storage, transportation and
33delivery of liquor, alcohol and malt or brewed beverages in
34accordance with the provisions of this act, and to fix the
35wholesale and retail prices at which liquors and alcohol shall

1be sold at Pennsylvania Liquor Stores. Prices shall be
2[proportional with prices paid by the board to its suppliers and
3shall reflect any advantage obtained through volume purchases by
4the board. The board may establish a preferential price
5structure for wines produced within this Commonwealth for the
6promotion of such wines, as long as the price structure is
7uniform within each class of wine purchased by the board.] as 
8set forth by the board so long as the price of a particular item 
9is uniform throughout this Commonwealth. The board shall require
10each Pennsylvania manufacturer and each nonresident manufacturer
11of liquors, other than wine, selling such liquors to the board,
12which are not manufactured in this Commonwealth, to make
13application for and be granted a permit by the board before such
14liquors not manufactured in this Commonwealth shall be purchased
15from such manufacturer. Each such manufacturer shall pay for
16such permit a fee which, in the case of a manufacturer of this
17Commonwealth, shall be equal to that required to be paid, if
18any, by a manufacturer or wholesaler of the state, territory or
19country of origin of the liquors, for selling liquors
20manufactured in Pennsylvania, and in the case of a nonresident
21manufacturer, shall be equal to that required to be paid, if
22any, in such state, territory or country by Pennsylvania
23manufacturers doing business in such state, territory or
24country. In the event that any such manufacturer shall, in the
25opinion of the board, sell or attempt to sell liquors to the
26board through another person for the purpose of evading this
27provision relating to permits, the board shall require such
28person, before purchasing liquors from him or it, to take out a
29permit and pay the same fee as hereinbefore required to be paid
30by such manufacturer. All permit fees so collected shall be paid

1into the State Stores Fund. The board shall not purchase any
2alcohol or liquor fermented, distilled, rectified, compounded or
3bottled in any state, territory or country, the laws of which
4result in prohibiting the importation therein of alcohol or
5liquor, fermented, distilled, rectified, compounded or bottled
6in Pennsylvania.

7(c) To determine the municipalities within which
8Pennsylvania Liquor Stores shall be established and the
9locations of the stores within such municipalities.

10(d) To grant and issue all licenses and to grant, issue,
11suspend and revoke all permits authorized to be issued under
12this act.

13(e) Through the Department of General Services as agent, to
14lease and furnish and equip such buildings, rooms and other
15accommodations as shall be required for the operation of this
16act.

17(f) To appoint, fix the compensation and define the powers
18and duties of such managers, officers, inspectors, examiners,
19clerks and other employes as shall be required for the operation
20of this act, subject to the provisions of The Administrative
21Code of 1929 and the Civil Service Act.

22(g) To determine the nature, form and capacity of all
23packages and original containers to be used for containing
24liquor, alcohol or malt or brewed beverages.

25(h) Without in any way limiting or being limited by the
26foregoing, to do all such things and perform all such acts as
27are deemed necessary or advisable for the purpose of carrying
28into effect the provisions of this act and the regulations made
29thereunder.

30(i) From time to time, to make such regulations not

1inconsistent with this act as it may deem necessary for the
2efficient administration of this act. The board shall cause such
3regulations to be published and disseminated throughout the
4Commonwealth in such manner as it shall deem necessary and
5advisable or as may be provided by law. Such regulations adopted
6by the board shall have the same force as if they formed a part
7of this act.

8(j) By regulation, to provide for the use of a computerized
9referral system to assist consumers in locating special items at
10Pennsylvania Liquor Stores and for the use of electronic
11transfer of funds and credit cards for the purchase of liquor
12and alcohol at Pennsylvania Liquor Stores.

13(k) To issue grants to various entities for alcohol
14education and prevention efforts.

15(l) Notwithstanding any other provision of law to the
16contrary, to enter into agreements with governmental units of
17this Commonwealth and other states, for the purchase or sale of
18goods and services with, from or to the governmental units. This
19authority includes, but is not limited to, the purchase or sale
20of alcohol.

21(m) To be licensed as a lottery sales agent, as set forth in
22section 305 of the act of August 26, 1971 (P.L.351, No.91),
23known as the "State Lottery Law," and to take any actions
24authorized by such designation, except that no bond, insurance
25or indemnification may be required from the board.

26(n) To establish and implement a customer relations
27management program for the purpose of offering incentives, such
28as coupons or discounts on certain products, to unlicensed
29customers of the board.

30Section 2. Section 301 of the act is amended to read:

1Section 301. Board to Establish State Liquor Stores.--(a)
2The board shall establish, operate and maintain at such places
3throughout the Commonwealth as it shall deem essential and
4advisable, stores to be known as "Pennsylvania Liquor Stores,"
5for the sale of liquor and alcohol in accordance with the
6provisions of and the regulations made under this act; except
7that no store not so already located shall be located within
8three hundred feet of any elementary or secondary school, nor
9within a dry municipality without there first having been a
10referendum approving such location. When the board shall have
11determined upon the location of a liquor store in any
12municipality, it shall give notice of such location by public
13advertisement in two newspapers of general circulation. In
14cities of the first class, the location shall also be posted for
15a period of at least fifteen days following its determination by
16the board as required in section 403(g) of this act. The notice
17shall be posted in a conspicuous place on the outside of the
18premises in which the proposed store is to operate or, in the
19event that a new structure is to be built in a similarly visible
20location. If, within five days after the appearance of such
21advertisement, or of the last day upon which the notice was
22posted, fifteen or more taxpayers residing within a quarter of a
23mile of such location, or the City Solicitor of the city of the
24first class, shall file a protest with the court of common pleas
25of the county averring that the location is objectionable
26because of its proximity to a church, a school, or to private
27residences, the court shall forthwith hold a hearing affording
28an opportunity to the protestants and to the board to present
29evidence. The court shall render its decision immediately upon
30the conclusion of the testimony and from the decision there

1shall be no appeal. If the court shall determine that the
2proposed location is undesirable for the reasons set forth in
3the protest, the board shall abandon it and find another
4location. Notwithstanding any other provision of law to the 
5contrary, the board may operate and maintain stores within other 
6businesses, including, but not limited to, supermarkets or large 
7retail stores selling packaged foods for human consumption, 
8owned by private persons or entities consistent with the 
9requirements of this section and under such conditions and 
10regulations as the board may enforce. The board may establish,
11operate and maintain such establishments for storing and testing
12liquors as it shall deem expedient to carry out its powers and
13duties under this act.

14(b) The board may lease the necessary premises for such
15stores or establishments, but all such leases shall be made
16through the Department of General Services as agent of the
17board. Notwithstanding any other provision of law to the 
18contrary, the Department of General Services shall have no more 
19than ninety days from the date the board officially approves a 
20lease recommendation to send the final lease packet to the 
21appropriate agencies for further processing. The Department of 
22General Services shall be required to submit quarterly reports 
23to the chairman and minority chairman of the Law and Justice 
24Committee of the Senate and the chairman and minority chairman 
25of the Liquor Control Committee of the House of Representatives, 
26indicating the number of lease recommendations approved by the 
27board during the preceding quarter, and whether the 
28corresponding final lease packets were sent to the appropriate 
29agencies within the ninety-day deadline. If the Department of 
30General Services fails to regularly submit these quarterly
 

1reports or fails to regularly meet the ninety-day deadline 
2imposed by this subsection, then the General Assembly may 
3consider legislation that would allow the board to lease 
4premises for its stores without the involvement of the 
5Department of General Services. The board, through the
6Department of General Services, shall have authority to purchase
7such equipment and appointments as may be required in the
8operation of such stores or establishments.

9Section 3. Section 304 of the act, amended December 8, 2004
10(P.L.1810, No.239), is amended to read:

11Section 304. When Sales May Be Made at Pennsylvania Liquor
12Stores.--(a) Except as provided for in subsection (b), every
13Pennsylvania Liquor Store shall be open for business week days,
14except holidays as that term is defined in section 102. The
15board may, with the approval of the Governor, temporarily close
16any store in any municipality.

17(b) Certain Pennsylvania Liquor Stores operated by the board
18[shall] may be open for Sunday retail sales between the hours of
19[noon] nine o'clock postmeridian and [five] nine o'clock
20postmeridian, except that no Sunday sales shall occur on Easter
21Sunday or Christmas day. The board shall open [up to twenty-five
22per centum of the total number of Pennsylvania Liquor Stores at
23its discretion], at its discretion, as many Pennsylvania Liquor 
24Stores as it deems necessary for Sunday sales as provided for in
25this subsection. The board shall submit yearly reports to the
26Appropriations and the Law and Justice Committees of the Senate
27and the Appropriations and the Liquor Control Committees of the
28House of Representatives summarizing the total dollar value of
29sales under this section.

30Section 4. Section 305(b) of the act, amended July 6, 2005

1(P.L.135, No.39), is amended and the section is amended by
2adding a subsection to read:

3Section 305. Sales by Pennsylvania Liquor Stores.--* * *

4(b) Every Pennsylvania Liquor Store shall sell liquors at
5wholesale to hotels, restaurants, clubs, and railroad, pullman
6and steamship companies licensed under this act; and, under the
7regulations of the board, to pharmacists duly licensed and
8registered under the laws of the Commonwealth, and to
9manufacturing pharmacists, and to reputable hospitals approved
10by the board, or chemists. Sales to licensees shall be made at a
11price that includes a discount of ten per centum from the retail
12price. The board may sell to registered pharmacists only such
13liquors as conform to the Pharmacopoeia of the United States,
14the National Formulary, or the American Homeopathic
15Pharmacopoeia. The board may sell at special prices under the
16regulations of the board, to United States Armed Forces
17facilities which are located on United States Armed Forces
18installations and are conducted pursuant to the authority and
19regulations of the United States Armed Forces. All other sales
20by such stores shall be at retail[.], except that incentives, 
21such as coupons or discounts on certain products, may be offered 
22to unlicensed customers of the board as provided for under 
23sections 207(m) and 493(24)(iii) of this act. A person entitled
24to purchase liquor at wholesale prices may purchase the liquor
25at any Pennsylvania Liquor Store upon tendering cash, check or
26credit card for the full amount of the purchase. For this
27purpose, the board shall issue a discount card to each licensee
28identifying such licensee as a person authorized to purchase
29liquor at wholesale prices. Such discount card shall be retained
30by the licensee. The board may contract through the Commonwealth

1bidding process for delivery to wholesale licensees at the
2expense of the licensee receiving the delivery.

3* * *

4(j) If the board becomes a licensed lottery sales agent, as 
5set forth in section 305 of the act of August 26, 1971 (P.L.351, 
6No.91), known as the "State Lottery Law," then the following 
7shall apply, notwithstanding the provisions of the "State 
8Lottery Law":

9(i) The Secretary of Revenue shall permit the board to
10operate and maintain Pennsylvania lottery instant ticket vending
11machines, player-activated terminals and technologies or systems
12subsequently approved by the Department of Revenue for the self-
13service sale of lottery tickets and games in Pennsylvania Liquor
14Stores. The board and the Secretary of Revenue shall mutually
15agree upon the number and location of the stores authorized to
16conduct self-service sales of lottery tickets and games.

17(ii) The board shall not be required to post any type of
18bond prior to conducting self-service sales of lottery tickets
19and games.

20(iii) Any commissions, compensation or any type of incentive
21award based upon the sale of lottery tickets and games shall be
22deposited by the board into the State Stores Fund.

23Section 5. Section 470(a) of the act, amended December 22, 
242011 (P.L.530, No.113), is amended to read:

25Section 470. Renewal of Licenses; Temporary Provisions for
26Licensees in Armed Service.--(a) All applications for renewal 
27of licenses under the provisions of this article shall be filed 
28with tax clearance from the Department of Revenue and the 
29Department of Labor and Industry and requisite license and 
30filing fees at least sixty days before the expiration date of
 

1same: Provided, however, That the board, in its discretion, may 
2accept nunc pro tunc a renewal application filed less than sixty 
3days before the expiration date of the license with the required 
4fees, upon reasonable cause shown and the payment of an 
5additional filing fee of one hundred dollars ($100.00) for late 
6filing: And provided further, That except where the failure to 
7file a renewal application on or before the expiration date has 
8created a license quota vacancy after said expiration date which 
9has been filled by the issuance of a new license, after such 
10expiration date, but before the board has received a renewal 
11application nunc pro tunc within the time prescribed herein the 
12board, in its discretion, may, after hearing, accept a renewal 
13application filed within two years after the expiration date of 
14the license with the required fees upon the payment of an 
15additional filing fee of two hundred fifty dollars ($250.00) for 
16late filing. In addition, the renewal application must indicate 
17the total dollar amount of alcoholic beverages sold by the 
18licensee during the twelve-month period immediately preceding 
19the filing of the renewal application. Where any such renewal 
20application is filed less than sixty days before the expiration 
21date, or subsequent to the expiration date, no license shall 
22issue upon the filing of the renewal application until the 
23matter is finally determined by the board and if an appeal is 
24taken from the board's action the courts shall not order the 
25issuance of the renewal license until final determination of the 
26matter by the courts. The board may enter into an agreement with 
27the applicant concerning additional restrictions on the license 
28in question. If the board and the applicant enter into such an 
29agreement, such agreement shall be binding on the applicant. 
30Failure by the applicant to adhere to the agreement will be
 

1sufficient cause to form the basis for a citation under section 
2471 and for the nonrenewal of the license under this section. A 
3renewal application will not be considered filed unless 
4accompanied by the requisite filing and license fees and any 
5additional filing fee required by this section. Unless the board 
6shall have given ten days' previous notice to the applicant of 
7objections to the renewal of his license, based upon violation 
8by the licensee or his servants, agents or employes of any of 
9the laws of the Commonwealth or regulations of the board 
10relating to the manufacture, transportation, use, storage, 
11importation, possession or sale of liquors, alcohol or malt or 
12brewed beverages, or the conduct of a licensed establishment, or 
13unless the applicant has by his own act become a person of ill 
14repute, or unless the premises do not meet the requirements of 
15this act or the regulations of the board, the license of a 
16licensee shall be renewed. Notwithstanding any other provision 
17of this act, a noise violation shall not be the sole basis for 
18objection by the board to the renewal of a license unless the 
19licensee has received six prior adjudicated noise citations 
20within a twenty-four-month period.

21* * *

22Section 6. Section 471(b) of the act, amended July 6, 2005 
23(P.L.135, No.39), is amended to read:

24Section 471. Revocation and Suspension of Licenses; Fines.--
25* * *

26(b) Hearing on such citations shall be held in the same
27manner as provided herein for hearings on applications for
28license. Upon such hearing, if satisfied that any such violation
29has occurred or for other sufficient cause, the administrative
30law judge shall immediately suspend or revoke the license, or

1impose a fine of not less than [fifty dollars ($50)] one hundred 
2dollars ($100) nor more than [one thousand dollars ($1,000),]
3the greater of two thousand dollars ($2,000) or 10% of the 
4average gross monthly sales of alcoholic beverages sold by the 
5licensee during the twelve-month period immediately preceding 
6the filing of the licensee's renewal application, or both,
7notifying the licensee by registered letter addressed to his
8licensed premises.

9(b.1) If the licensee has been cited and found to have
10violated section 493(1) insofar as it relates to sales to minors
11or sales to a visibly intoxicated person, section 493(10)
12insofar as it relates to lewd, immoral or improper entertainment
13or section 493(14), (16) or (21), or has been found to be a
14public nuisance pursuant to section 611, or if the owner or
15operator of the licensed premises or any authorized agent of the
16owner or operator has been convicted of any violation of the act
17of April 14, 1972 (P.L.233, No.64), known as "The Controlled
18Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 
195902 (relating to prostitution and related offenses) or 6301
20(relating to corruption of minors), at or relating to the
21licensed premises, the administrative law judge shall
22immediately suspend or revoke the license, or impose a fine [of
23not less than one thousand dollars ($1,000)] two thousand 
24dollars ($2,000) nor more than [five thousand dollars ($5,000)]
25the greater of ten thousand dollars ($10,000) or 10% of the 
26average gross monthly sales of alcoholic beverages sold by the 
27licensee during the twelve-month period immediately preceding 
28the filing of the licensee's renewal application, or both.
29However, if a licensee has been cited and found to have violated
30section 493(1) as it relates to sales to minors or sales to a

1visibly intoxicated person but at the time of the sale the
2licensee was in compliance with the requirements set forth in
3section 471.1 and the licensee had not sold to minors or visibly
4intoxicated persons in the previous four years, then the
5administrative law judge shall immediately suspend or revoke the
6license, or impose a fine of not less than [fifty dollars ($50)]
7one hundred dollars ($100) nor more than [one thousand dollars
8($1,000)] the greater of two thousand dollars ($2,000) or 10% of 
9the average gross monthly sales of alcoholic beverages sold by 
10the licensee during the twelve-month period immediately 
11preceding the filing of the licensee's renewal application, or
12both.

13(b.2) The administrative law judge shall notify the licensee
14by registered mail, addressed to the licensed premises, of such
15suspension, revocation or fine. In the event the fine is not
16paid within twenty days of the adjudication, the administrative
17law judge shall suspend or revoke the license, notifying the
18licensee by registered mail addressed to the licensed premises.
19Suspensions and revocations shall not go into effect until
20thirty days have elapsed from the date of the adjudication
21during which time the licensee may take an appeal as provided
22for in this act, except that revocations mandated in section
23481(c) shall go into effect immediately. Any licensee whose
24license is revoked shall be ineligible to have a license under
25this act until the expiration of three years from the date such
26license was revoked. In the event a license is revoked, no
27license shall be granted for the premises or transferred to the
28premises in which the said license was conducted for a period of
29at least one year after the date of the revocation of the
30license conducted in the said premises, except in cases where

1the licensee or a member of his immediate family is not the
2owner of the premises, in which case the board may, in its
3discretion, issue or transfer a license within the said year. In
4the event the bureau or the person who was fined or whose
5license was suspended or revoked shall feel aggrieved by the
6adjudication of the administrative law judge, there shall be a
7right to appeal to the board. The appeal shall be based solely
8on the record before the administrative law judge. The board
9shall only reverse the decision of the administrative law judge
10if the administrative law judge committed an error of law,
11abused its discretion or if its decision is not based on
12substantial evidence. In the event the bureau or the person who
13was fined or whose license was suspended or revoked shall feel
14aggrieved by the decision of the board, there shall be a right
15to appeal to the court of common pleas in the same manner as
16herein provided for appeals from refusals to grant licenses.
17Each of the appeals shall act as a supersedeas unless, upon
18sufficient cause shown, the reviewing authority shall determine
19otherwise; however, if the licensee has been cited and found to
20have violated section 493(1) insofar as it relates to sales to
21minors or sales to a visibly intoxicated person, section 493(10)
22insofar as it relates to lewd, immoral or improper entertainment
23or section 493(14), (16) or (21), or has been found to be a
24public nuisance pursuant to section 611, or if the owner or
25operator of the licensed premises or any authorized agent of the
26owner or operator has been convicted of any violation of "The
27Controlled Substance, Drug, Device and Cosmetic Act," or of 18 
28Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
29or if the license has been revoked under section 481(c), its
30appeal shall not act as a supersedeas unless the reviewing

1authority determines otherwise upon sufficient cause shown. In
2any hearing on an application for a supersedeas under this
3section, the reviewing authority may consider, in addition to
4other relevant evidence, documentary evidence, including records
5of the bureau, showing the prior history of citations, fines,
6suspensions or revocations against the licensee; and the
7reviewing authority may also consider, in addition to other
8relevant evidence, evidence of any recurrence of the unlawful
9activity occurring between the date of the citation which is the
10subject of the appeal and the date of the hearing. If the
11reviewing authority is the board, no hearing shall be held on
12the application for a supersedeas; however, a decision shall be
13made based on the application, answer and documentary evidence
14under this subsection. If the application for a supersedeas is
15for a license that has been revoked under section 481(c), the
16reviewing authority shall grant the supersedeas only if it finds
17that the licensee will likely prevail on the merits. No penalty
18provided by this section shall be imposed for any violations
19provided for in this act unless the bureau notifies the licensee
20of its nature within thirty days of the completion of the
21investigation.

22* * *

23Section 7. Section 488 of the act, added February 21, 2002
24(P.L.103, No.10), is amended to read:

25Section 488. Shipment of Wine [into Commonwealth.--(a) The
26shipment of wine from out-of-State to residents of this
27Commonwealth is prohibited, except as otherwise provided for in
28this section.] to Pennsylvania Liquor Stores.--(a) (Reserved).

29(b) Notwithstanding any other provision of this act or law
30to the contrary, a person licensed by another state as a

1producer, supplier, importer, wholesaler, distributor or
2retailer of wine and who obtains a [direct wine shipper] direct-
3to-store wine shipper license as provided for in this section
4may ship up to nine liters per month of any wine not included on
5the list provided for in subsection (c) on the [Internet] order
6of any resident of this Commonwealth who is at least twenty-one
7(21) years of age for such resident's personal use and not for
8resale.

9(c) [Each month, the board shall publish on the Internet a
10list of all classes, varieties and brands of wine available for
11sale in the Pennsylvania Liquor Stores. A person holding a
12direct shipper license may ship only those classes, varieties
13and brands of wine not included on the list at the time an
14Internet order is placed.] (Reserved).

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

16(1) Not ship more than nine liters per month on the Internet
17order of any person in this Commonwealth.

18(2) Report to the board each year the total amount of wine
19shipped [into this Commonwealth] to Pennsylvania Liquor Stores
20in the preceding calendar year.

21(3) Permit the board, the enforcement bureau or the
22Secretary of Revenue, or their designated representatives, to
23perform an audit of the [out-of-State] direct-to-store wine
24shipper's records upon request.

25(4) Be deemed to have submitted to the jurisdiction of the
26board, any other State agency and the courts of this
27Commonwealth for purposes of enforcement of this section and any
28related laws, rules or regulations.

29(e) A [direct] direct-to-store wine shipper may ship wine on
30the [Internet] order of a resident into this Commonwealth

1provided that the wine is shipped to a Pennsylvania Liquor Store
2selected by the resident. The wine will be subject to taxes in
3the same manner as wine sold directly by the board. The wine
4will not be released by the State store until all moneys due,
5including all taxes and fees, have been paid by the resident.

6(f) A person shall sign an affidavit provided by the
7Pennsylvania Liquor Store where the wine was delivered to
8stating that the wine will only be used for the person's
9personal use. Any person who resells wine obtained under this
10section commits a misdemeanor of the second degree.

11(g) The board may promulgate such rules and regulations as
12are necessary to implement and enforce the provisions of this
13section. The board may charge the resident a fee to cover the
14cost associated with processing the [Internet] order.

15(h) The board shall submit [monthly] annual reports to the
16Appropriations Committee and the Law and Justice Committee of
17the Senate and to the Appropriations Committee and the Liquor
18Control Committee of the House of Representatives summarizing
19the number of [direct] direct-to-store wine shipper licenses
20issued by the board, the quantity of wine sold and shipped by 
21direct-to-store wine shipper licensees pursuant to this section
22and the total dollar value of sales under this section.

23(i) The term "wine" as used in this section shall mean
24liquor which is fermented from [grapes and other fruits, having
25alcoholic content of twenty-four per centum or less. The term
26"wine" shall not include malt or brewed beverages nor shall wine
27include any products containing alcohol derived from malt,
28grain, cereal, molasses or cactus] an agricultural commodity as 
29that term is defined in section 505.2(c).

30Section 8. The act is amended by adding a section to read:

1Section 489. Direct Shipment of Wine.--(a) Notwithstanding
2any other provision of law to the contrary, a person licensed by
3the board or another state as a producer of wine, and who
4obtains a license as provided for in this section, may ship up
5to eighteen liters per month of any wine on the order of any
6resident of this Commonwealth who is at least twenty-one years
7of age for such resident's personal use and not for resale.

8(b) Prior to issuing such a license, the board shall require
9the person seeking the license to:

10(1) File an application with the board.

11(2) Pay a registration fee of one hundred dollars ($100).

12(3) Provide to the board a copy of the applicant's current
13alcoholic beverage license issued by the board or another state,
14if applicable.

15(4) Provide documentation to the board which evidences that
16the applicant has obtained a sales tax license from the
17Department of Revenue.

18(5) Obtain a tax bond, in the amount of one thousand dollars
19($1,000), such that if the licensee does not pay the taxes
20imposed under this section when due, the surety of the bond
21shall pay all taxes and any related penalties, and any interest
22that may be due or become due.

23(6) Provide the board with any other information that the
24board deems necessary and appropriate.

25(c) The licensee shall:

26(1) Require proof of age of the recipient, in a manner or
27format approved by the board, before any wine is shipped to a
28resident of this Commonwealth.

29(2) Ensure that all boxes or exterior containers of wine
30shipped directly to a resident of this Commonwealth are

1conspicuously labeled with the words "CONTAINS ALCOHOL:
2SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
3DELIVERY."

4(3) Ensure that shipments shall be delivered by an entity
5holding a valid transporter-for-hire license issued by the board
6and that such transporter-for-hire shall not deliver any wine
7unless it does all of the following:

8(i) Obtains the signature of the recipient of the wine upon
9delivery.

10(ii) Verifies by inspecting a valid form of photo
11identification, as provided for in section 495(a), that the
12recipient is at least twenty-one (21) years of age.

13(iii) Determines that the recipient is not visibly
14intoxicated at the time of delivery.

15(4) On a quarterly basis, remit to the Department of Revenue
16all taxes due on sales to residents of this Commonwealth.

17(5) Permit the board, the enforcement bureau or the
18Secretary of Revenue, or their designated representatives, to
19perform an audit of the licensee's records upon request.

20(6) Be deemed to have submitted to the jurisdiction of the
21board, any other State agency and the courts of this
22Commonwealth for purposes of enforcement of this section and any
23related laws, rules or regulations, including the collection and
24remission of taxes as required under this section.

25(7) Annually renew its license by paying a renewal fee
26established by the board and report to the board, at the time of
27renewal, the total amount of wine shipped to residents of this
28Commonwealth in the preceding calendar year.

29(d) Wine delivered under the authority of this section is
30subject to the sales and use tax imposed by section 202 of the

1act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
2of 1971, the sales and use tax imposed by Article XXXI-B of the
3act of July 28, 1953 (P.L.723, No.230), known as the Second
4Class County Code, the sales and use tax imposed by the act of
5February 12, 2004 (P.L.73, No.11), known as the
6Intergovernmental Cooperation Authority Act for Cities of the
7Second Class, and the emergency State tax imposed on wines sold
8by the board under the act of June 9, 1936 (1st Sp. Sess.,
9P.L.13, No.4), entitled "An act imposing an emergency State tax
10on liquor, as herein defined, sold by the Pennsylvania Liquor
11Control Board; providing for the collection and payment of such
12tax; and imposing duties upon the Department of Revenue and the
13Pennsylvania Liquor Control Board."

14(e) A transporter for hire shall:

15(1) keep records as required under section 512 pertaining to
16the direct shipment of wine; and

17(2) permit the board and the enforcement bureau, or their
18designated representatives, to inspect such records in
19accordance with section 513.

20(f) Any person who resells wine obtained under this section
21commits a misdemeanor of the second degree.

22(g) Shipments of wine to persons in this Commonwealth from
23persons who do not possess a license from the board authorizing
24such shipments are prohibited. Any person who knowingly makes,
25participates in, transports, imports or receives such shipment
26commits a misdemeanor.

27(h) The board shall submit annual reports to the
28Appropriations and the Law and Justice Committees of the Senate
29and to the Appropriations and the Liquor Control Committees of
30the House of Representatives summarizing the number of licenses

1issued by the board under this section, the quantity of wine
2sold and shipped by licensees pursuant to this section, and the
3total dollar value of sales under this section.

4(i) The board may promulgate such rules and regulations as
5are necessary to implement and enforce the provisions of this
6section.

7(j) The term "wine" as used in this section shall mean
8liquor which is fermented from an agricultural commodity as that
9term is defined in section 505.2(c).

10Section 9. Section 493(24) of the act, amended November 29, 
112006 (P.L.1421, No.155), is amended and the section is amended 
12by adding a paragraph to read:

13Section 493. Unlawful Acts Relative to Liquor, Malt and
14Brewed Beverages and Licensees.--The term "licensee," when used
15in this section, shall mean those persons licensed under the
16provisions of Article IV, unless the context clearly indicates
17otherwise.

18It shall be unlawful--

19* * *

20(24) (i) Things of Value Offered as Inducement. Except as
21provided in subclause (ii), for any licensee under the
22provisions of this article, or the board or any manufacturer, or
23any employe or agent of a manufacturer, licensee or of the
24board, to offer to give anything of value or to solicit or
25receive anything of value as a premium for the return of caps,
26stoppers, corks, stamps or labels taken from any bottle, case,
27barrel or package containing liquor or malt or brewed beverage,
28or to offer or give or solicit or receive anything of value as a
29premium or present to induce directly the purchase of liquor or
30malt or brewed beverage, or for any licensee, manufacturer or

1other person to offer or give to trade or consumer buyers any
2prize, premium, gift or other inducement to purchase liquor or
3malt or brewed beverages, except advertising novelties of
4nominal value which the board shall define. This section shall
5not prevent any manufacturer or any agent of a manufacturer from
6offering and honoring coupons which offer monetary rebates on
7purchases of wines and spirits through State Liquor Stores or
8purchases of malt or brewed beverages through distributors and
9importing distributors in accordance with conditions or
10regulations established by the board. The board may redeem
11coupons offered by a manufacturer or an agent of a manufacturer
12at the time of purchase. Coupons offered by a manufacturer or an
13agent of a manufacturer shall not be redeemed without proof of
14purchase. This section shall not apply to the return of any
15monies specifically deposited for the return of the original
16container to the owners thereof.

17(ii) Notwithstanding subclause (i) or any other provision of
18law, a holder of a restaurant license that is also approved to
19hold a slot machine license or a conditional slot machine
20license under 4 Pa.C.S. Part II (relating to gaming) may give
21liquor and malt or brewed beverages free of charge to any person
22actively engaged in playing a slot machine.

23(iii) Notwithstanding subclause (i) or any other provision
24of law, the board may establish and implement a customer
25relations management program for the purpose of offering
26incentives, such as coupons or discounts on certain products
27which may be conditioned upon the purchase of liquor, to
28unlicensed customers of the board.

29* * *

30(35) Sale of wine received by direct-to-store or direct

1shipment. For any licensee to sell or offer to sell any wine
2purchased or acquired, directly or indirectly, from a licensee
3pursuant to the authority of section 488, or from a licensee
4pursuant to the authority of section 489.

5Section 10. Section 802 of the act, amended April 29, 1994 
6(P.L.212, No.30) and July 11, 1996 (P.L.654, No.111), is amended 
7to read:

8Section 802. Moneys Paid Into The State Stores Fund for Use
9of the Commonwealth.--(a) All moneys, except fees to be paid
10into the Liquor License Fund as provided by section 801,
11collected, received or recovered under the provisions of this
12act for license fees, permit fees, filing fees and registration
13fees, from forfeitures, sales of forfeited property, compromise
14penalties and sales of liquor and alcohol at the Pennsylvania
15Liquor Stores, shall be paid into the State Treasury through the
16Department of Revenue into a special fund to be known as "The
17State Stores Fund."

18(c) [Two] Two and one-half per centum of annual profits from
19the sale of liquor and alcohol shall be annually transferred to
20the Department of Health for use by the Office of Drug and
21Alcohol Programs, or its successor in function, for the
22following purposes:

23(1) Treatment and rehabilitation of persons addicted to the
24excessive use of alcoholic beverages.

25(2) Promotion of education, prevention and early
26intervention programs designed to eliminate abuse and addiction
27to alcohol or other mood-altering substances or secure
28appropriate treatment for the already addicted.

29(3) Study of the problem of addiction.

30(d) All other moneys in such fund shall be available for the

1purposes for which they are appropriated by law.

2(e) Annually, the General Assembly shall make an
3appropriation from the State Stores Fund to provide for the
4operational expenses of the enforcement bureau.

5(f) Any moneys in the State Stores Fund, from time to time,
6which may not be required for any of the purposes specified in
7this act or in the act of December 20, 1933 (Sp.Sess., P.L.89,
8No.15), entitled "An act appropriating the moneys in The State
9Stores Fund," shall be paid over into the General Fund and shall
10be available for the payment of appropriations made from the
11General Fund. The Pennsylvania Liquor Control Board, with the
12approval of the Governor, shall, from time to time, fix the
13amount of money which may be so paid over into the General Fund
14and by its requisition shall direct the Department of the
15Auditor General and the Treasury Department to transfer such
16moneys from the State Stores Fund to the General Fund. The
17Pennsylvania Liquor Control Board shall, immediately upon voting
18to pay over any moneys from the State Stores Fund to the General
19Fund, notify the chairman and minority chairman of the
20Appropriations Committee of the Senate and the chairman and
21minority chairman of the Appropriations Committee of the House
22of Representatives of such transfer of moneys.

23(g) The sum of five million dollars ($5,000,000) shall be
24transferred from The State Stores Fund in accordance with
25subsection (f) to the Children's Health Fund for health care for
26indigent children established by section 1296 of the act of
27March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
281971," to carry out the provisions of the act of December 2,
291992 (P.L.741, No.113), known as the "Children's Health Care
30Act," for the fiscal year July 1, 1996, to June 30, 1997. Funds

1transferred under this subsection shall not be subject to the
2limitation set forth in section 3101 of the "Children's Health
3Care Act."

4Section 11. This act shall take effect in 60 days.