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 powers of the board and for shipment of 
18wine into Commonwealth; and establishing the Pennsylvania 
19Wine Industry Promotion Board.

20The General Assembly of the Commonwealth of Pennsylvania
21hereby enacts as follows:

22Section 1. Section 207(a) of the act of April 12, 1951 
23(P.L.90, No.21), known as the Liquor Code, reenacted and amended
24June 29, 1987 (P.L.32, No.14), and amended November 30, 2004 
25(P.L.1727, No.221) and December 8, 2004 (P.L.1810, No.239), is

1amended to read:

2Section 207. General Powers of Board.--Under this act, the
3board shall have the power and its duty shall be:

4(a) To buy, import or have in its possession for sale and
5sell liquor, alcohol, corkscrews, wine and liquor accessories,
6trade publications, gift cards, gift certificates, wine- or
7liquor-scented candles and wine glasses in the manner set forth
8in this act: Provided, however, That all purchases shall be made
9subject to the approval of the State Treasurer, or his
10designated deputy. The board shall buy liquor and alcohol at the
11lowest price and in the greatest variety reasonably obtainable.
12Such sales may be to persons and entities located both in this 
13Commonwealth and outside this Commonwealth.

14* * *

15Section 2. Section 488 of the act, added February 21, 2002 
16(P.L.103, No.10), is amended to read:

17Section 488. Shipment of Wine [into Commonwealth].--(a) The
18shipment of wine [from out-of-State] to residents of this
19Commonwealth [is prohibited, except as otherwise provided for
20in] shall be governed by this section.

21(b) Notwithstanding any other provision of this act or law
22to the contrary, a person licensed by the board or another state
23as a producer[, supplier, importer, wholesaler, distributor or
24retailer] of wine and who obtains a direct wine shipper license
25as provided for in this section may ship up to [nine] eighteen
26liters per month of any wine [not included on the list provided
27for in subsection (c)] on the Internet, telephone or mail order
28of any resident of this Commonwealth who is at least twenty-one
29(21) years of age for such resident's personal use and not for
30resale.

1(c) Each month, the board shall publish on the Internet a
2list of all classes, varieties and brands of wine available for
3sale in the Pennsylvania Liquor Stores. [A person holding a
4direct shipper license may ship only those classes, varieties
5and brands of wine not included on the list at the time an
6Internet order is placed.]

7(c.1) Prior to issuing a direct wine shipper license, the
8board shall require the person seeking the license to:

9(1) File an application with the board.

10(2) Pay a one hundred dollar ($100) registration fee.

11(3) Provide to the board a true copy of its current
12alcoholic beverage license issued by the board or another state,
13if applicable.

14(4) Provide the board with any other information the board
15deems necessary and appropriate.

16(5) Provide documentation which evidences that it has
17obtained a sales tax license from the Department of Revenue.

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

19(1) Not ship more than [nine] eighteen liters per month on
20the Internet, telephone or mail order of any person in this
21Commonwealth.

22(2) Report to the board each year the total of wine shipped
23[into] to residents of this Commonwealth in the preceding
24calendar year.

25(3) Permit the board or the Secretary of Revenue, or their
26designated representatives, to perform an audit of the [out-of-
27State] direct wine shipper's records upon request.

28(4) Be deemed to have submitted to the jurisdiction of the
29board, any other State agency and the courts of this
30Commonwealth for purposes of enforcement of this section and any

1related laws, rules or regulations.

2(5) Require proof of age of the recipient, in a manner or
3format approved by the board before any wine is shipped to a
4resident of this Commonwealth.

5(6) Ensure that all boxes or exterior containers of wine
6shipped directly to a resident in this Commonwealth are
7conspicuously labeled with the words "CONTAINS ALCOHOL:
8SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
9DELIVERY."

10(7) Pay to the Department of Revenue all taxes due on sales
11to residents of this Commonwealth. The amount of such taxes
12shall be calculated as if the sales were in this Commonwealth at
13the locations where delivery is made. The wine delivered under
14the authority of this subsection shall be subject to the sales
15and use tax imposed by section 202 of the act of March 4, 1971
16(P.L.6, No.2), known as the "Tax Reform Code of 1971," the sales
17and use tax imposed by Article XXXI-B of the act of July 28,
181953 (P.L.723, No.230), known as the "Second Class County Code,"
19and the sales and use tax imposed by the act of June 5, 1991
20(P.L.9, No.6), known as the "Pennsylvania Intergovernmental
21Cooperation Authority Act for Cities of the First Class," and
22the direct wine shipment tax imposed under this section.

23(8) Annually renew its license by paying a renewal fee 
24established by the board.

25(e) A direct shipper may ship wine on the Internet, 
26telephone or mail order of a resident into this Commonwealth
27provided that the wine [is shipped to a Pennsylvania Liquor
28Store selected by the resident. The wine will be subject to
29taxes in the same manner as wine sold directly by the board. The
30wine will not be released by the State store until all moneys

1due, including all taxes and fees, have been paid by the
2resident.] will be subject to all taxes due on sales to 
3residents of this Commonwealth with the amount of such taxes to 
4be calculated as if the sale were in this Commonwealth at the 
5location where delivery is made. The wine delivered under the 
6authority of this subsection shall be subject to the sales and 
7use tax imposed by section 202 of the "Tax Reform Code of 1971," 
8the sales and use tax imposed by Article XXXI-B of the "Second 
9Class County Code," and the sales and use tax imposed by the 
10"Pennsylvania Intergovernmental Cooperation Authority Act for 
11Cities of the First Class," and the direct wine shipment tax 
12imposed under this section.

13(f) [A person shall sign an affidavit provided by the
14Pennsylvania Liquor Store where the wine was delivered to
15stating that the wine will only be used for the person's
16personal use.] Any person who resells wine obtained under this
17section commits a misdemeanor of the second degree.

18(g) The board may promulgate such rules and regulations as
19are necessary to implement and enforce the provisions of this
20section. [The board may charge the resident a fee to cover the
21cost associated with processing the Internet order.]

22(h) The board shall submit [monthly] annual reports to the
23Appropriations Committee and the Law and Justice Committee of
24the Senate and to the Appropriations Committee and the Liquor
25Control Committee of the House of Representatives summarizing
26the number of direct shipper licenses issued by the board[,] and
27the quantity of wine sold by direct wine shippers pursuant to
28this section [and the total dollar value of sales under this
29section].

30(i) The term "wine" as used in this section shall mean 

1liquor which is fermented from grapes and other fruits, having 
2alcoholic content of twenty-four per centum or less. The term 
3"wine" shall not include malt or brewed beverages nor shall wine 
4include any products containing alcohol derived from malt, 
5grain, cereal, molasses or cactus.

6(j) The term "direct wine shipper" as used in this section 
7shall mean a wine producer who holds a direct wine shipper 
8license as provided in this section and includes a limited 
9winery.

10(k) A direct wine shipment tax is hereby imposed and 
11assessed at the rate of twelve per centum of the net price of 
12all wines sold and delivered under the authority of this 
13section, which tax shall be collected by the direct wine shipper 
14from the purchaser and shall be paid over to the Department of 
15Revenue as provided in this section. Unless otherwise specified, 
16the tax shall be assessed, collected and enforced by the 
17Department of Revenue under the provisions of Article II of the 
18"Tax Reform Code of 1971."

19(l) Receipts from the tax imposed under subsection (k) shall
20be deposited into the General Fund. Annually, on January 15 and
21July 15, the amount of two hundred fifty thousand dollars
22($250,000) shall be transferred from the General Fund to a
23restricted account within the General Fund. The moneys of the
24restricted account are hereby appropriated on a continuing basis
25to the Pennsylvania Wine Industry Promotion Board for the
26purpose of awarding grants under section 488.1.

27Section 3. The act is amended by adding a section to read:

28Section 488.1. Pennsylvania Wine Industry Promotion Board.--
29(a) There is established a board to be known as the
30Pennsylvania Wine Industry Promotion Board.

1(b) The Pennsylvania Wine Industry Promotion Board shall be
2composed of the following members:

3(1) Four members appointed by the General Assembly under
4subsection (c).

5(2) One member appointed by the Governor under subsection
6(d).

7(c) Appointments of members by the General Assembly shall be
8made as follows:

9(1) One individual appointed by the president pro tempore of
10the Senate.

11(2) One individual appointed by the minority leader of the
12Senate.

13(3) One individual appointed by the speaker of the House of
14Representatives.

15(4) One individual appointed by the minority leader of the
16House of Representatives.

17(5) Legislative appointees must be residents of this
18Commonwealth, have substantial experience or expertise in the
19Pennsylvania wine industry and serve at the pleasure of the
20appointing authority.

21(d) One gubernatorial appointee must be a resident of this
22Commonwealth, have substantial experience or expertise in the
23Pennsylvania wine industry and serve at the pleasure of the
24Governor.

25(e) Three members of the Pennsylvania Wine Industry
26Promotion Board shall constitute a quorum. The adoption of a
27resolution, awarding of a grant or other action of the
28Pennsylvania Wine Industry Promotion Board shall require a
29majority vote of the members of the Pennsylvania Wine Industry
30Promotion Board.

1(f) The members of the Pennsylvania Wine Industry Promotion
2Board shall not be entitled to compensation for their services
3as members of the board.

4(g) Appointing authorities shall appoint initial
5Pennsylvania Wine Industry Promotion Board members within thirty
6(30) days of the effective date of this section. Whenever a
7vacancy occurs on the Pennsylvania Wine Industry Promotion
8Board, the appointing authority shall appoint a successor member
9within 30 days of the vacancy.

10(h) The act of July 19, 1957 (P.L.1017, No.451), known as
11the "State Adverse Interest Act," shall apply to the
12Pennsylvania Wine Industry Promotion Board.

13(i) The Pennsylvania Wine Industry Promotion Board shall do
14all of the following:

15(1) Meet as often as necessary but at least annually.

16(2) Adopt guidelines establishing the procedure by which an
17entity may submit an application for grant funding under this
18section to the Pennsylvania Wine Industry Promotion Board.

19(3) The Pennsylvania Wine Industry Promotion Board shall
20have the following duties as to awarding grants:

21(i) Award grants to entities for the purpose of increasing
22the production of Pennsylvania made wines and enhancing the
23Pennsylvania wine industry through promotion, marketing and
24research-based programs and projects.

25(ii) Allocate grants through a competitive grant review
26process established by the Pennsylvania Wine Industry Promotion
27Board. The application for a grant shall include:

28(A) the purpose for which the grant shall be utilized;

29(B) information indicating need for the grant;

30(C) an estimated budget;

1(D) methods for measuring outcomes; and

2(E) any other criteria as the office may require.

3(iii) Require grant recipients to provide the Pennsylvania
4Wine Industry Promotion Board with full and complete access to
5all records relating to the performance of the grant and to
6submit at such time and in such form as may be prescribed
7truthful and accurate information that the Pennsylvania Wine
8Industry Promotion Board may require.

9(iv) Conduct a thorough annual evaluation of each program
10for which a grant under this section is made. The Pennsylvania
11Wine Industry Promotion Board shall seek repayment of funds if
12it determines that funds are not utilized for the original
13stated purpose.

14(v) Submit an annual report to the General Assembly
15detailing all actions of the Pennsylvania Wine Industry
16Promotion Board and grants awarded under this section.

17(j) The Department of Agriculture shall supply all necessary
18assistance to assist the Pennsylvania Wine Industry Promotion
19Board in carrying out its duties and responsibilities.

20Section 4. This act shall take effect in 60 days.