AN ACT

 

1Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2reenacted and amended, "An act relating to alcoholic liquors,
3alcohol and malt and brewed beverages; amending, revising,
4consolidating and changing the laws relating thereto;
5regulating and restricting the manufacture, purchase, sale,
6possession, consumption, importation, transportation,
7furnishing, holding in bond, holding in storage, traffic in
8and use of alcoholic liquors, alcohol and malt and brewed
9beverages and the persons engaged or employed therein;
10defining the powers and duties of the Pennsylvania Liquor
11Control Board; providing for the establishment and operation
12of State liquor stores, for the payment of certain license
13fees to the respective municipalities and townships, for the
14abatement of certain nuisances and, in certain cases, for
15search and seizure without warrant; prescribing penalties and
16forfeitures; providing for local option, and repealing
17existing laws," further providing for general powers of
18board, for specific subjects on which board may adopt
19regulations, for selection of personnel, for when sales may
20be made at Pennsylvania Liquor Stores, for sales by
21Pennsylvania Liquor Stores, for authority to issue liquor
22licenses to hotels, restaurants and clubs, for sale of malt
23or brewed beverages by liquor licensees, for malt and brewed
24beverages manufacturers', distributors' and importing
25distributors' licenses, for shipment of wine and for unlawful
26acts relative to liquor, malt and brewed beverages and
27licensees.

28The General Assembly of the Commonwealth of Pennsylvania
29hereby enacts as follows:

1Section 1. Section 207(b), (f) and (h) of the act of April
212, 1951 (P.L.90, No.21), known as the Liquor Code, reenacted
3and amended June 29, 1987 (P.L.32, No.14), are amended and the
4section is amended by adding a subsection to read:

5Section 207. General Powers of Board.--Under this act, the
6board shall have the power and its duty shall be:

7* * *

8(b) To control the manufacture, possession, sale,
9consumption, importation, use, storage, transportation and
10delivery of liquor, alcohol and malt or brewed beverages in
11accordance with the provisions of this act, and to fix the
12wholesale and retail prices at which liquors and alcohol shall
13be sold at Pennsylvania Liquor Stores. Prices shall be
14[proportional with prices paid by the board to its suppliers and
15shall reflect any advantage obtained through volume purchases by
16the board.] as set forth by the board so long as the price of a 
17particular item is uniform throughout this Commonwealth and that 
18the markup may not be less than twenty-five percent (25%) or 
19more than thirty-five percent (35%). Prices may not be changed 
20on any wine or spirit product more than once in any six-month 
21period. The board may establish a preferential price structure
22for wines produced within this Commonwealth for the promotion of
23such wines, as long as the price structure is uniform within
24each class of wine purchased by the board. The board shall
25require each Pennsylvania manufacturer and each nonresident
26manufacturer of liquors, other than wine, selling such liquors
27to the board, which are not manufactured in this Commonwealth,
28to make application for and be granted a permit by the board
29before such liquors not manufactured in this Commonwealth shall
30be purchased from such manufacturer. Each such manufacturer

1shall pay for such permit a fee which, in the case of a
2manufacturer of this Commonwealth, shall be equal to that
3required to be paid, if any, by a manufacturer or wholesaler of
4the state, territory or country of origin of the liquors, for
5selling liquors manufactured in Pennsylvania, and in the case of
6a nonresident manufacturer, shall be equal to that required to
7be paid, if any, in such state, territory or country by
8Pennsylvania manufacturers doing business in such state,
9territory or country. In the event that any such manufacturer
10shall, in the opinion of the board, sell or attempt to sell
11liquors to the board through another person for the purpose of
12evading this provision relating to permits, the board shall
13require such person, before purchasing liquors from him or it,
14to take out a permit and pay the same fee as hereinbefore
15required to be paid by such manufacturer. All permit fees so
16collected shall be paid into the State Stores Fund. The board
17shall not purchase any alcohol or liquor fermented, distilled,
18rectified, compounded or bottled in any state, territory or
19country, the laws of which result in prohibiting the importation
20therein of alcohol or liquor, fermented, distilled, rectified,
21compounded or bottled in Pennsylvania.

22* * *

23(f) To appoint, fix the compensation and define the powers
24and duties of such managers, officers, inspectors, examiners,
25clerks and other employes as shall be required for the operation
26of this act, subject to the provisions of The Administrative
27Code of 1929 and the Civil Service Act. However, the board may 
28hire a limited number of retail wine specialists on an at-will 
29basis to be employed at up to twenty-five percent (25%) of the 
30total number of Pennsylvania Liquor Stores. Notwithstanding any 

1other provision of law to the contrary, a retail wine specialist 
2shall not be considered a member of the classified service, as 
3that term is defined in the act of August 5, 1941 (P.L.752, 
4No.286), known as the "Civil Service Act," except as set forth 
5in this act. A retail wine specialist shall be considered a 
6State employe for purposes of 71 Pa.C.S. Pt. XXV (relating to 
7retirement for State employees and officers). The board shall 
8establish a system of classification and compensation of its 
9retail wine specialists and they shall not be subject to the 
10provisions of the act of April 9, 1929 (P.L.177, No.175), known 
11as "The Administrative Code of 1929," as to classification and 
12compensation for its employes, and shall conduct its activities 
13consistent with the practices and procedures of Commonwealth 
14agencies. The board shall adhere to the provisions of 51 Pa.C.S. 
15Ch. 71 (relating to veterans' preference), as they relate to 
16noncivil service positions. This subsection may not be construed 
17to alter, remove or bar current or new employees from a 
18collective bargaining agreement.

19* * *

20(h) Without in any way limiting or being limited by the
21foregoing, to do all such things and perform all such acts as
22are deemed necessary or advisable for the purpose of carrying
23into effect the provisions of this act and the regulations made
24thereunder. Notwithstanding any other provision of law to the 
25contrary, the board is authorized to purchase all goods and 
26services in its sole discretion which are deemed necessary to 
27perform all such acts. The board is authorized to promulgate 
28regulations providing for the procurement of such goods and 
29services.

30* * *

1(l) To establish and implement a customer relations
2marketing program for the purpose of offering incentives, such
3as coupons or discounts on certain products, to customers of the
4board.

5Section 2. Sections 208(c) and 302 of the act are amended to
6read:

7Section 208. Specific Subjects on Which Board May Adopt
8Regulations.--Subject to the provisions of this act and without
9limiting the general power conferred by the preceding section,
10the board may make regulations regarding:

11* * *

12(c) The purchase, as provided in this act, of liquor and
13alcohol, and its supply to Pennsylvania Liquor Stores and the 
14procurement of all other goods and services which are deemed 
15necessary by the board, in its sole discretion, to perform all 
16such acts.

17* * *

18Section 302. Selection of Personnel.--Officers and employes
19of the board, except for retail wine specialists and as herein
20otherwise provided, shall be appointed and employed subject to
21the provisions of the Civil Service Act.

22Section 3. Section 304(b) of the act, amended December 8, 
232004 (P.L.1810, No.239), is amended to read:

24Section 304. When Sales May Be Made at Pennsylvania Liquor
25Stores.--* * *

26(b) Certain Pennsylvania Liquor Stores operated by the board 
27shall be open for Sunday retail sales between the hours of 
28[noon] nine o'clock antemeridian and [five] nine o'clock 
29postmeridian, except that no Sunday sales shall occur on Easter 
30Sunday or Christmas day. The board shall open [up to twenty-five 

1per centum of the total number of Pennsylvania Liquor Stores] at 
2its discretion as many Pennsylvania Liquor Stores as it deems 
3necessary for Sunday sales as provided for in this subsection. 
4The board shall submit yearly reports to the Appropriations and 
5the Law and Justice Committees of the Senate and the 
6Appropriations and the Liquor Control Committees of the House of 
7Representatives summarizing the total dollar value of sales 
8under this section.

9Section 4. Section 305(a) and (b) of the act, amended May 8,
102003 (P.L.1, No.1) and July 6, 2005 (P.L.135, No.39), are
11amended to read:

12Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
13board shall in its discretion determine where and what classes,
14varieties and brands of liquor and alcohol it shall make
15available to the public and where such liquor and alcohol will
16be sold. Every Pennsylvania Liquor Store shall be authorized to
17sell combination packages. If a person desires to purchase a
18class, variety or brand of liquor or alcohol not currently
19available from the board, he or she may place a special order
20for such item so long as the order is for two or more bottles.
21The board may require a reasonable deposit from the purchaser as
22a condition for accepting the order. The customer shall be
23notified immediately upon the arrival of the goods.

24In computing the retail price of such special orders for
25liquor or alcohol, the board shall not include the cost of
26freight or shipping before applying [the] a mark-up calculated 
27at fifty per centum of the markup under section 207(b) and taxes
28but shall add the freight or shipping charges to the price after
29the mark-up and taxes have been applied.

30Unless the customer pays for and accepts delivery of any such

1special order within ten days after notice of arrival, the store
2may place it in stock for general sale and the customer's
3deposit shall be forfeited.

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] sixteen per centum from
12the retail price. The board may sell to registered pharmacists
13only such liquors as conform to the Pharmacopoeia of the United
14States, the 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. A person entitled to purchase
21liquor at wholesale prices may purchase the liquor at any
22Pennsylvania Liquor Store upon tendering cash, check or credit
23card for the full amount of the purchase. For this purpose, the
24board shall issue a discount card to each licensee identifying
25such licensee as a person authorized to purchase liquor at
26wholesale prices. Such discount card shall be retained by the
27licensee. The board may contract through the Commonwealth
28bidding process for delivery to wholesale licensees at the
29expense of the licensee receiving the delivery.

30* * *

1Section 5. Section 401(a) of the act, amended December 22, 
22011 (P.L.530, No.113), is amended to read:

3Section 401. Authority to Issue Liquor Licenses to Hotels,
4Restaurants and Clubs.--(a) Subject to the provisions of this 
5act and regulations promulgated under this act, the board shall 
6have authority to issue a retail liquor license for any premises 
7kept or operated by a hotel, restaurant or club and specified in 
8the license entitling the hotel, restaurant or club to purchase 
9liquor from a Pennsylvania Liquor Store and to keep on the 
10premises such liquor and, subject to the provisions of this act 
11and the regulations made thereunder, to sell the same and also 
12malt or brewed beverages to guests, patrons or members for 
13consumption on the hotel, restaurant or club premises. Such 
14licensees with an interior connection, other than clubs, shall 
15be permitted to sell malt or brewed beverages for consumption 
16off the premises where sold in quantities of not more than one 
17hundred ninety-two fluid ounces in a single sale to one person 
18as provided for in section 407.

19A licensee without an interior connection, other than clubs, 
20selling malt or brewed beverages for consumption off premises 
21may not sell more than three hundred eighty-four ounces in not 
22more than twenty-four original containers in a single sale to 
23one person as provided for in section 407, Provided, That the 
24licensee may not sell a package as prepared for sale or 
25distribution by the manufacturer containing more than twelve 
26containers. Such licenses shall be known as hotel liquor 
27licenses, restaurant liquor licenses and club liquor licenses, 
28respectively. No person who holds any public office that 
29involves the duty to enforce any of the penal laws of the United 
30States, this Commonwealth or of any political subdivision of 

1this Commonwealth may have any interest in a hotel or restaurant 
2liquor license. This prohibition applies to anyone with arrest 
3authority, including, but not limited to, United States 
4attorneys, State attorneys general, district attorneys, sheriffs 
5and police officers. This prohibition shall also apply to 
6magisterial district judges, judges or any other individuals who 
7can impose a criminal sentence. This prohibition does not apply 
8to members of the General Assembly, township supervisors, city 
9councilpersons, mayors without arrest authority and any other 
10public official who does not have the ability to arrest or the 
11ability to impose a criminal sentence. This section does not 
12apply if the proposed premises are located outside the 
13jurisdiction of the individual in question.

14* * *

15Section 6. Section 407(a) of the act, amended June 28, 2011 
16(P.L.55, No.11), is amended to read:

17Section 407. Sale of Malt or Brewed Beverages by Liquor
18Licensees.--(a) Every liquor license issued to a hotel, 
19restaurant, club, or a railroad, pullman or steamship company 
20under this subdivision (A) for the sale of liquor shall 
21authorize the licensee to sell malt or brewed beverages at the 
22same places but subject to the same restrictions and penalties 
23as apply to sales of liquor, except that licensees with an 
24interior connection, other than clubs, may sell malt or brewed 
25beverages for consumption off the premises where sold in 
26quantities of not more than one hundred ninety-two fluid ounces 
27in a single sale to one person. A licensee without an interior 
28connection, other than clubs, selling malt or brewed beverages 
29for consumption off premises may not sell more than three 
30hundred eighty-four ounces in not more than twenty-four original 

1containers in a single sale to one person, Provided, That the 
2licensee may not sell a package as prepared for sale or 
3distribution by the manufacturer containing more than twelve 
4containers. The sales may be made in either open or closed 
5containers, Provided, however, That a municipality may adopt an 
6ordinance restricting open containers in public places. No 
7licensee under this subdivision (A) shall at the same time be 
8the holder of any other class of license, except a retail 
9dispenser's license authorizing the sale of malt or brewed 
10beverages only.

11* * * 

12Section 7. Section 431(b) of the act, amended December 8,
132004 (P.L.1810, No.239), is amended and the section is amended
14by adding a subsection to read:

15Section 431. Malt and Brewed Beverages Manufacturers',
16Distributors' and Importing Distributors' Licenses.--* * *

17(b) The board shall issue to any reputable person who
18applies therefor, and pays the license fee hereinafter
19prescribed, a distributor's or importing distributor's license
20for the place which such person desires to maintain for the sale
21of malt or brewed beverages, not for consumption on the premises
22where sold, and except as provided for under subsection (g), in
23quantities of not less than a case or original containers
24containing one hundred twenty-eight ounces or more which may be
25sold separately as prepared for the market by the manufacturer
26at the place of manufacture. The board shall have the discretion
27to refuse a license to any person or to any corporation,
28partnership or association if such person, or any officer or
29director of such corporation, or any member or partner of such
30partnership or association shall have been convicted or found

1guilty of a felony within a period of five years immediately
2preceding the date of application for the said license: And
3provided further, That, in the case of any new license or the
4transfer of any license to a new location, the board may, in its
5discretion, grant or refuse such new license or transfer if such
6place proposed to be licensed is within three hundred feet of
7any church, hospital, charitable institution, school or public
8playground, or if such new license or transfer is applied for a
9place which is within two hundred feet of any other premises
10which is licensed by the board: And provided further, That the
11board shall refuse any application for a new license or the
12transfer of any license to a new location if, in the board's
13opinion, such new license or transfer would be detrimental to
14the welfare, health, peace and morals of the inhabitants of the
15neighborhood within a radius of five hundred feet of the place
16proposed to be licensed. The board shall refuse any application
17for a new license or the transfer of any license to a location
18where the sale of liquid fuels or oil is conducted. The board
19may enter into an agreement with the applicant concerning
20additional restrictions on the license in question. If the board
21and the applicant enter into such an agreement, such agreement
22shall be binding on the applicant. Failure by the applicant to
23adhere to the agreement will be sufficient cause to form the
24basis for a citation under section 471 and for the nonrenewal of
25the license under section 470. If the board enters into an
26agreement with an applicant concerning additional restrictions,
27those restrictions shall be binding on subsequent holders of the
28license until the license is transferred to a new location or
29until the board enters into a subsequent agreement removing
30those restrictions. If the application in question involves a

1location previously licensed by the board, then any restrictions
2imposed by the board on the previous license at that location
3shall be binding on the applicant unless the board enters into a
4new agreement rescinding those restrictions. The board shall
5require notice to be posted on the property or premises upon
6which the licensee or proposed licensee will engage in sales of
7malt or brewed beverages. This notice shall be similar to the
8notice required of hotel, restaurant and club liquor licensees.

9Except as hereinafter provided, such license shall authorize
10the holder thereof to sell or deliver malt or brewed beverages
11in quantities above specified anywhere within the Commonwealth
12of Pennsylvania, which, in the case of distributors, have been
13purchased only from persons licensed under this act as
14manufacturers or importing distributors, and in the case of
15importing distributors, have been purchased from manufacturers
16or persons outside this Commonwealth engaged in the legal sale
17of malt or brewed beverages or from manufacturers or importing
18distributors licensed under this article. In the case of an
19importing distributor, the holder of such a license shall be
20authorized to store and repackage malt or brewed beverages owned
21by a manufacturer at a segregated portion of a warehouse or
22other storage facility authorized by section 441(d) and operated
23by the importing distributor within its appointed territory and
24deliver such beverages to another importing distributor who has
25been granted distribution rights by the manufacturer as provided
26herein. The importing distributor shall be permitted to receive
27a fee from the manufacturer for any related storage, repackaging
28or delivery services. In the case of a bailee for hire hired by
29a manufacturer, the holder of such a permit shall be authorized:
30to receive, store and repackage malt or brewed beverages

1produced by that manufacturer for sale by that manufacturer to
2importing distributors to whom that manufacturer has given
3distribution rights pursuant to this subsection or to purchasers
4outside this Commonwealth for delivery outside this
5Commonwealth; or to ship to that manufacturer's storage
6facilities outside this Commonwealth. The bailee for hire shall
7be permitted to receive a fee from the manufacturer for any
8related storage, repackaging or delivery services. The bailee
9for hire shall, as required in Article V of this act, keep
10complete and accurate records of all transactions, inventory,
11receipts and shipments and make all records and the licensed
12areas available for inspection by the board and for the
13Pennsylvania State Police, Bureau of Liquor Control Enforcement,
14during normal business hours.

15Each out of State manufacturer of malt or brewed beverages
16whose products are sold and delivered in this Commonwealth shall
17give distributing rights for such products in designated
18geographical areas to specific importing distributors, and such
19importing distributor shall not sell or deliver malt or brewed
20beverages manufactured by the out of State manufacturer to any
21person issued a license under the provisions of this act whose
22licensed premises are not located within the geographical area
23for which he has been given distributing rights by such
24manufacturer. Should a licensee accept the delivery of such malt
25or brewed beverages in violation of this section, said licensee
26shall be subject to a suspension of his license for at least
27thirty days: Provided, That the importing distributor holding
28such distributing rights for such product shall not sell or
29deliver the same to another importing distributor without first
30having entered into a written agreement with the said secondary

1importing distributor setting forth the terms and conditions
2under which such products are to be resold within the territory
3granted to the primary importing distributor by the
4manufacturer.

5When a Pennsylvania manufacturer of malt or brewed beverages
6licensed under this article names or constitutes a distributor
7or importing distributor as the primary or original supplier of
8his product, he shall also designate the specific geographical
9area for which the said distributor or importing distributor is
10given distributing rights, and such distributor or importing
11distributor shall not sell or deliver the products of such
12manufacturer to any person issued a license under the provisions
13of this act whose licensed premises are not located within the
14geographical area for which distributing rights have been given
15to the distributor and importing distributor by the said
16manufacturer: Provided, That the importing distributor holding
17such distributing rights for such product shall not sell or
18deliver the same to another importing distributor without first
19having entered into a written agreement with the said secondary
20importing distributor setting forth the terms and conditions
21under which such products are to be resold within the territory
22granted to the primary importing distributor by the
23manufacturer. Nothing herein contained shall be construed to
24prevent any manufacturer from authorizing the importing
25distributor holding the distributing rights for a designated
26geographical area from selling the products of such manufacturer
27to another importing distributor also holding distributing
28rights from the same manufacturer for another geographical area,
29providing such authority be contained in writing and a copy
30thereof be given to each of the importing distributors so

1affected.

2* * *

3(g) (1) In addition to being able to sell a case as 
4provided for under subsection (b), a distributor or import
5distributor may break the bulk of a case and sell units of the
6case in quantities not less than forty-two ounces, provided the
7distributor or import distributor sells a package prepared for
8sale by the manufacturer of no more than twelve units.

9(2) Before a distributor or import distributor breaks the
10bulk of a case for the purpose of selling units, the distributor
11or import distributor shall inspect the case for damage and
12appropriate production date. When the distributor or import
13distributor breaks the bulk of a case for the purpose of selling
14units of the case, the distributor or import distributor bears
15the risk of loss and is responsible for the destruction of any
16malt and brewed beverages that violate the manufacturer's
17specifications relating to sales by a certain date or within a
18number of days of the production date.

19(3) As used in this subsection the term "unit" means an
20undamaged bottle or can from a case.

21Section 8. Section 488 of the act, added February 21, 2002 
22(P.L.103, No.10), is amended to read:

23Section 488. Shipment of Wine [into Commonwealth].--(a) The
24shipment of wine [from out-of-State] to residents of this
25Commonwealth [is prohibited, except as otherwise provided for
26in] shall be governed by this section.

27(b) Notwithstanding any other provision of this act or law
28to the contrary, a person licensed by the board or another state
29as a producer[, supplier, importer, wholesaler, distributor or
30retailer] of wine and who obtains a direct wine shipper license

1as provided for in this section may ship up to [nine] eighteen
2liters per month of any wine [not included on the list provided
3for in subsection (c) on] upon the Internet, telephone or mail
4order of any resident of this Commonwealth who is at least
5twenty-one (21) years of age for such resident's personal use
6and not for resale.

7(c) Each month, the board shall publish on the Internet a
8list of all classes, varieties and brands of wine available for
9sale in the Pennsylvania Liquor Stores. [A person holding a
10direct shipper license may ship only those classes, varieties
11and brands of wine not included on the list at the time an
12Internet order is placed.]

13(c.1) Prior to issuing a direct wine shipper license, the
14board shall require the person seeking the license to:

15(1) File an application with the board.

16(2) Pay a one hundred dollar ($100) registration fee.

17(3) Provide to the board a true copy of its current
18alcoholic beverage license issued by the board or another state,
19if applicable.

20(4) Provide the board with any other information the board
21deems necessary and appropriate.

22(5) Provide documentation which evidences that it has
23obtained a sales tax license from the Department of Revenue.

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

25(1) Not ship more than [nine] eighteen liters per month on
26the Internet, telephone or mail order of any person in this
27Commonwealth.

28(2) Report to the board each year the total of wine shipped
29[into] to residents of this Commonwealth in the preceding
30calendar year.

1(3) Permit the board or the Secretary of Revenue, or their
2designated representatives, to perform an audit of the [out-of-
3State] direct wine shipper's records upon request.

4(4) Be deemed to have submitted to the jurisdiction of the
5board, any other State agency and the courts of this
6Commonwealth for purposes of enforcement of this section and any
7related laws, rules or regulations.

8(5) Require proof of age of the recipient in a manner or
9format approved by the board before any wine is shipped to a
10resident of this Commonwealth.

11(6) Ensure that all boxes or exterior containers of wine
12shipped directly to a resident in this Commonwealth are
13conspicuously labeled with the words "CONTAINS ALCOHOL:
14SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
15DELIVERY."

16(7) Collect and remit to the Department of Revenue all taxes
17due on sales to residents of this Commonwealth. The amount of
18such taxes shall be calculated as if the sales were in this
19Commonwealth at the locations where delivery is made.

20(8) Annually renew its license by paying a renewal fee 
21established by the board.

22(e) A direct shipper may ship wine on the Internet or mail
23order of a resident into this Commonwealth provided that the
24wine [is shipped to a Pennsylvania Liquor Store selected by the
25resident. The wine will be subject to taxes in the same manner
26as wine sold directly by the board. The wine will not be
27released by the State store until all moneys due, including all
28taxes and fees, have been paid by the resident.] will be subject 
29to all taxes due on sales to residents of this Commonwealth with 
30the amount of such taxes to be calculated as if the sale were in 

1this Commonwealth at the location where delivery is made.

2(f) [A person shall sign an affidavit provided by the
3Pennsylvania Liquor Store where the wine was delivered to
4stating that the wine will only be used for the person's
5personal use.] Any person who resells wine obtained under this
6section commits a misdemeanor of the second degree.

7(g) The board may promulgate such rules and regulations as
8are necessary to implement and enforce the provisions of this
9section. [The board may charge the resident a fee to cover the
10cost associated with processing the Internet order.]

11(h) The board shall submit [monthly] annual reports to the
12Appropriations Committee and the Law and Justice Committee of
13the Senate and to the Appropriations Committee and the Liquor
14Control Committee of the House of Representatives summarizing
15the number of direct shipper licenses issued by the board[,] and
16the quantity of wine sold by direct wine shippers pursuant to
17this section [and the total dollar value of sales under this
18section].

19(i) The term "wine" as used in this section shall mean
20liquor which is fermented from grapes and other fruits, having
21alcoholic content of twenty-four per centum or less. The term
22"wine" shall not include malt or brewed beverages nor shall wine
23include any products containing alcohol derived from malt,
24grain, cereal, molasses or cactus.

25(j) The term "direct wine shipper" as used in this section
26shall mean a wine producer who holds a direct wine shipper
27license as provided in this section and includes a limited
28winery.

29Section 9. Section 493(24) of the act, amended November 29,
302006 (P.L.1421, No.155), is amended to read:

1Section 493. Unlawful Acts Relative to Liquor, Malt and
2Brewed Beverages and Licensees.--The term "licensee," when used
3in this section, shall mean those persons licensed under the
4provisions of Article IV, unless the context clearly indicates
5otherwise.

6It shall be unlawful--

7* * *

8(24) (i) Things of Value Offered as Inducement. Except as
9provided in subclause (ii), for any licensee under the
10provisions of this article, or the board or any manufacturer, or
11any employe or agent of a manufacturer, licensee or of the
12board, to offer to give anything of value or to solicit or
13receive anything of value as a premium for the return of caps,
14stoppers, corks, stamps or labels taken from any bottle, case,
15barrel or package containing liquor or malt or brewed beverage,
16or to offer or give or solicit or receive anything of value as a
17premium or present to induce directly the purchase of liquor or
18malt or brewed beverage, or for any licensee, manufacturer or
19other person to offer or give to trade or consumer buyers any
20prize, premium, gift or other inducement to purchase liquor or
21malt or brewed beverages, except advertising novelties of
22nominal value which the board shall define. This section shall
23not prevent any manufacturer or any agent of a manufacturer from
24offering and honoring coupons which offer monetary rebates on
25purchases of wines and spirits through State Liquor Stores or
26purchases of malt or brewed beverages through distributors and
27importing distributors in accordance with conditions or
28regulations established by the board. The board may redeem
29coupons offered by a manufacturer or an agent of a manufacturer
30at the time of purchase. Coupons offered by a manufacturer or an

1agent of a manufacturer shall not be redeemed without proof of
2purchase. This section shall not apply to the return of any
3monies specifically deposited for the return of the original
4container to the owners thereof.

5(ii) Notwithstanding subclause (i) or any other provision of 
6law, a holder of a restaurant license that is also approved to 
7hold a slot machine license or a conditional slot machine 
8license under 4 Pa.C.S. Part II (relating to gaming) may give 
9liquor and malt or brewed beverages free of charge to any person 
10actively engaged in playing a slot machine.

11(iii) Notwithstanding subclause (i) or any other provision 
12of law, the board may establish and implement a customer 
13relations marketing program for the purpose of offering 
14incentives, such as coupons or discounts on certain products 
15that may be conditioned upon the purchase of liquor, to 
16customers of the board.

17* * *

18Section 10. This act shall take effect in 60 days.