PRINTER'S NO. 2739
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2342
Session of
2022
INTRODUCED BY GAYDOS, ROTHMAN, MIHALEK, SMITH, MILLARD, ROWE,
GROVE, MIZGORSKI, KEEFER, JONES, JOZWIAK AND ORTITAY,
FEBRUARY 11, 2022
REFERRED TO COMMITTEE ON LIQUOR CONTROL, FEBRUARY 11, 2022
AN ACT
Amending the act of April 12, 1951 (P.L.90, No.21), entitled "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," in
licenses and regulations and liquor, alcohol and malt and
brewed beverages, providing for shipment of spirits; and
making an editorial change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The heading of Subarticle C.1 of Article IV of
the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code, is amended to read:
(C.1) Shipment of Wine and Spirits.
Section 2. The act is amended by adding a section to read:
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Section 489. Shipment of Spirits.--(a) The shipment of
spirits to residents of this Commonwealth shall be governed by
this section.
(b) Notwithstanding any other provision of this act or law,
a person licensed by the board or another state or country as a
producer or manufacturer of spirits and who obtains a direct
spirits shipper license as provided for in this section may ship
no more than nine liters of spirits per month in a calendar year
on the order of any resident of this Commonwealth who is at
least twenty-one (21) years of age for the resident's personal
use and not for resale.
(c) Each month, the board shall publish on the publicly
accessible Internet website a list of all classes, varieties and
brands of spirits available for sale in the Pennsylvania Liquor
Stores.
(c.1) Prior to issuing a direct spirits shipper license, the
board shall require an applicant to:
(1) File an application with the board.
(2) Pay a registration fee of two hundred fifty dollars
($250).
(3) Provide to the board a true copy of the applicant's
current alcoholic beverage license issued by the board or
another state or country.
(4) Provide documentation 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) A direct spirits shipper shall do all of the following:
(1) Report to the board each year the total of spirits
shipped to residents of this Commonwealth in the preceding
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calendar year.
(2) Permit the board, the enforcement bureau or the
Secretary of Revenue or their designated representatives to
perform an audit of the direct spirits shipper's records upon
request.
(3) 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.
(4) Require proof of age of the recipient, in a manner or
format approved by the board, before spirits are shipped to a
resident of this Commonwealth.
(5) Ensure that all boxes or exterior containers of spirits
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."
(6) Pay to the Department of Revenue all taxes due on sales
to residents of this Commonwealth. The amount of the taxes shall
be calculated as if the sales were in this Commonwealth at the
locations where delivery was made. The spirits delivered under
this subsection shall be subject to only the following:
(i) The sales and use tax imposed by section 202 and Article
II-B of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
(ii) The sales and use tax imposed by Article XXXI-B of the
act of July 28, 1953 (P.L.723, No.230), known as the Second
Class County Code.
(iii) The sales and use tax imposed by the act of June 5,
1991 (P.L.9, No.6), known as the Pennsylvania Intergovernmental
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Cooperation Authority Act for Cities of the First Class.
(iv) The spirits excise tax imposed under subsection (h).
(7) Annually renew its license by paying a renewal fee of
two hundred fifty dollars ($250).
(e) Any person who resells spirits obtained under this
section commits a misdemeanor of the second degree. A person
convicted of selling or offering to sell any spirits in
violation of this section shall, in addition to any other
penalty prescribed by law, be sentenced to pay a fine of four
dollars ($4) per fluid ounce for each container of spirits found
on the premises where the sale was made or attempted. The amount
of fine per container shall be based on the capacity of the
container when full, whether or not it is full at the time of
sale or attempted sale. All spirits found on the premises shall
be confiscated. The prohibition on reselling spirits shall not
apply to any entity who is licensed to resell spirits and who
acquires the spirits from a licensee under section 505.4.
(f) The board may promulgate rules and regulations as are
necessary to implement and enforce the provisions of this
section.
(g) The board shall submit annual reports to the
Appropriations Committee of the Senate, the Law and Justice
Committee of the Senate, the Appropriations Committee of the
House of Representatives and the Liquor Control Committee of the
House of Representatives summarizing the number of direct
spirits shipper licenses issued by the board and the quantity of
spirits sold by direct spirits shippers pursuant to this
section.
(h) A spirits excise tax is imposed and assessed at the rate
of four dollars and fifty cents ($4.50) per gallon on all
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spirits sold and delivered under this section. The tax shall be
collected by the direct spirits shipper from the purchaser and
shall be paid to the department. Unless otherwise specified, the
tax shall be assessed, collected and enforced by the department
in the same manner as the tax under Article II of the Tax Reform
Code of 1971.
(i) Delivery shall be by a licensed transporter for hire.
The licensed transporter for hire shall:
(1) keep records as required under section 512 pertaining to
the direct shipment of spirits; and
(2) permit the board and the enforcement bureau, or their
designated representatives, to inspect the records under section
513.
Section 3. This act shall take effect in 60 days.
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