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.

18The General Assembly of the Commonwealth of Pennsylvania
19hereby enacts as follows:

20Section 1.  Section 488 of the act of April 12, 1951 (P.L.90, 
21No.21), known as the Liquor Code, reenacted and amended June 29, 
221987 (P.L.32, No.14) and added February 21, 2002 (P.L.103, 
23No.10), is amended to read:

24Section 488.  Shipment of Wine [into Commonwealth].--(a)  The
25shipment of wine [from out-of-State] to residents of this

1Commonwealth [is prohibited, except as otherwise provided for
2in] shall be governed by this section.

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

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.]

19(c.1)  Prior to issuing a direct wine shipper license, the
20board 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
24alcoholic beverage license issued by the board or another state,
25if applicable.

26(4)  Provide the board with any other information the board
27deems necessary and appropriate.

28(5)  Provide documentation which evidences that it has
29obtained a sales tax license from the Department of Revenue.

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

1(1)  Not ship more than [nine] eighteen liters per month on
2the Internet, telephone or mail order of any person in this
3Commonwealth.

4(2)  Report to the board each year the total of wine shipped
5[into] to residents of this Commonwealth in the preceding
6calendar year.

7(3)  Permit the board or the Secretary of Revenue, or their
8designated representatives, to perform an audit of the [out-of-
9State] direct wine shipper's records upon request.

10(4)  Be deemed to have submitted to the jurisdiction of the
11board, any other State agency and the courts of this
12Commonwealth for purposes of enforcement of this section and any
13related laws, rules or regulations.

14(5)  Require proof of age of the recipient in a manner or
15format approved by the board before any wine is shipped to a
16resident of this Commonwealth.

17(6)  Ensure that all boxes or exterior containers of wine
18shipped directly to a resident in this Commonwealth are
19conspicuously labeled with the words "CONTAINS ALCOHOL:
20SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
21DELIVERY."

22(7)  Pay to the Department of Revenue all taxes due on sales
23to residents of this Commonwealth. The amount of such taxes
24shall be calculated as if the sales were in this Commonwealth at
25the locations where delivery is made.

26(8)  Annually renew its license by paying a renewal fee 
27established by the board.

28(e)  A direct shipper may ship wine on the Internet or mail
29order of a resident into this Commonwealth provided that the
30wine [is shipped to a Pennsylvania Liquor Store selected by the

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

8(f)  [A person shall sign an affidavit provided by the
9Pennsylvania Liquor Store where the wine was delivered to
10stating that the wine will only be used for the person's
11personal use.] Any person who resells wine obtained under this
12section commits a misdemeanor of the second degree.

13(g)  The board may promulgate such rules and regulations as
14are necessary to implement and enforce the provisions of this
15section. [The board may charge the resident a fee to cover the
16cost associated with processing the Internet order.]

17(h)  The board shall submit [monthly] annual reports to the
18Appropriations Committee and the Law and Justice Committee of
19the Senate and to the Appropriations Committee and the Liquor
20Control Committee of the House of Representatives summarizing
21the number of direct shipper licenses issued by the board[,] and
22the quantity of wine sold by direct wine shippers pursuant to
23this section [and the total dollar value of sales under this
24section].

25(i)  The term "wine" as used in this section shall mean
26liquor which is fermented from grapes and other fruits, having
27alcoholic content of twenty-four per centum or less. The term
28"wine" shall not include malt or brewed beverages nor shall wine
29include any products containing alcohol derived from malt,
30grain, cereal, molasses or cactus.

1(j)  The term "direct wine shipper" as used in this section 
2shall mean a wine producer who holds a direct wine shipper 
3license as provided in this section and includes a limited 
4winery.

5Section 2.  This act shall take effect in 60 days.