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PRINTER'S NO. 222
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
228
Session of
2015
INTRODUCED BY DiGIROLAMO, PASHINSKI, BROWNLEE, HARKINS, KORTZ,
FRANKEL, GODSHALL, DAVIS, READSHAW, SCHLOSSBERG, MURT, DEASY,
COHEN, SCHREIBER, SCHWEYER, DeLUCA, CARROLL, GIBBONS AND
SABATINA, JANUARY 27, 2015
REFERRED TO COMMITTEE ON LIQUOR CONTROL, JANUARY 27, 2015
AN ACT
Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
reenacted, "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
Pennsylvania Liquor Control Board, further providing for
general powers of board; in Pennsylvania Liquor Stores,
further providing for board to establish State liquor stores,
for when sales may be made at Pennsylvania Liquor Stores, and
for sales by Pennsylvania Liquor Stores; in licenses and
regulations and liquor and alcohol and malt and brewed
beverages, further providing for renewal of licenses and
temporary provisions for licensees in armed service, for
revocation and suspension of licenses and fines and for
shipment of wine into Commonwealth; providing for direct
shipment of wine; further providing for unlawful acts
relative to liquor, malt and brewed beverages and licensees;
and, in disposition of moneys collected under provisions of
act, further providing for moneys paid into the State Stores
Fund for use of the Commonwealth.
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The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 207(a) and (b) of the act of April 12,
1951 (P.L.90, No.21), known as the Liquor Code, reenacted and
amended June 29, 1987 (P.L.32, No.14) and amended December 8,
2004 (P.L.1810, No.239), are amended and the section is amended
by adding subsections to read:
Section 207. General Powers of Board.--Under this act, the
board shall have the power and its duty shall be:
(a) To buy, import or have in its possession for sale and
sell liquor, alcohol, corkscrews, wine and liquor accessories,
trade publications, gift cards, gift certificates, wine- or
liquor-scented candles and wine glasses in the manner set forth
in this act: Provided, however, That all purchases shall be made
subject to the approval of the State Treasurer, or his
designated deputy. The board shall buy liquor and alcohol at the
lowest price and in the greatest variety reasonably obtainable.
Such sales and purchases may be to or from persons or entities
located both in and outside this Commonwealth.
(b) To control the manufacture, possession, sale,
consumption, importation, use, storage, transportation and
delivery of liquor, alcohol and malt or brewed beverages in
accordance with the provisions of this act, and to fix the
wholesale and retail prices at which liquors and alcohol shall
be sold at Pennsylvania Liquor Stores. Prices shall be
[proportional with prices paid by the board to its suppliers and
shall reflect any advantage obtained through volume purchases by
the board. The board may establish a preferential price
structure for wines produced within this Commonwealth for the
promotion of such wines, as long as the price structure is
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uniform within each class of wine purchased by the board.] as
set forth by the board so long as the price of a particular item
is uniform throughout this Commonwealth. The board shall require
each Pennsylvania manufacturer and each nonresident manufacturer
of liquors, other than wine, selling such liquors to the board,
which are not manufactured in this Commonwealth, to make
application for and be granted a permit by the board before such
liquors not manufactured in this Commonwealth shall be purchased
from such manufacturer. Each such manufacturer shall pay for
such permit a fee which, in the case of a manufacturer of this
Commonwealth, shall be equal to that required to be paid, if
any, by a manufacturer or wholesaler of the state, territory or
country of origin of the liquors, for selling liquors
manufactured in Pennsylvania, and in the case of a nonresident
manufacturer, shall be equal to that required to be paid, if
any, in such state, territory or country by Pennsylvania
manufacturers doing business in such state, territory or
country. In the event that any such manufacturer shall, in the
opinion of the board, sell or attempt to sell liquors to the
board through another person for the purpose of evading this
provision relating to permits, the board shall require such
person, before purchasing liquors from him or it, to take out a
permit and pay the same fee as hereinbefore required to be paid
by such manufacturer. All permit fees so collected shall be paid
into the State Stores Fund. The board shall not purchase any
alcohol or liquor fermented, distilled, rectified, compounded or
bottled in any state, territory or country, the laws of which
result in prohibiting the importation therein of alcohol or
liquor, fermented, distilled, rectified, compounded or bottled
in Pennsylvania.
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* * *
(l) Notwithstanding any other provision of law to the
contrary, to enter into agreements with governmental units of
this Commonwealth and other states, for the purchase or sale of
goods and services with, from or to the governmental units. This
authority includes, but is not limited to, the purchase or sale
of alcohol.
(m) To be licensed as a lottery sales agent, as set forth in
section 305 of the act of August 26, 1971 (P.L.351, No.91),
known as the "State Lottery Law," and to take any actions
authorized by such designation, except that no bond, insurance
or indemnification may be required from the board.
(n) To establish and implement a customer relations
management program for the purpose of offering incentives, such
as coupons or discounts on certain products, to unlicensed
customers of the board.
Section 2. Section 301 of the act is amended to read:
Section 301. Board to Establish State Liquor Stores.--(a)
The board shall establish, operate and maintain at such places
throughout the Commonwealth as it shall deem essential and
advisable, stores to be known as "Pennsylvania Liquor Stores,"
for the sale of liquor and alcohol in accordance with the
provisions of and the regulations made under this act; except
that no store not so already located shall be located within
three hundred feet of any elementary or secondary school, nor
within a dry municipality without there first having been a
referendum approving such location. When the board shall have
determined upon the location of a liquor store in any
municipality, it shall give notice of such location by public
advertisement in two newspapers of general circulation. In
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cities of the first class, the location shall also be posted for
a period of at least fifteen days following its determination by
the board as required in section 403(g) of this act. The notice
shall be posted in a conspicuous place on the outside of the
premises in which the proposed store is to operate or, in the
event that a new structure is to be built in a similarly visible
location. If, within five days after the appearance of such
advertisement, or of the last day upon which the notice was
posted, fifteen or more taxpayers residing within a quarter of a
mile of such location, or the City Solicitor of the city of the
first class, shall file a protest with the court of common pleas
of the county averring that the location is objectionable
because of its proximity to a church, a school, or to private
residences, the court shall forthwith hold a hearing affording
an opportunity to the protestants and to the board to present
evidence. The court shall render its decision immediately upon
the conclusion of the testimony and from the decision there
shall be no appeal. If the court shall determine that the
proposed location is undesirable for the reasons set forth in
the protest, the board shall abandon it and find another
location. Notwithstanding any other provision of law to the
contrary, the board may operate and maintain stores located in
commercial locations. The board may make decisions to relocate
and lease stores in more convenient and consumer-heavy areas,
after consumer trends and market trends are analyzed by the
board. The board may work with private persons or entities,
consistent with the requirements of this section and under such
conditions and regulations as the board may enforce, to operate
and maintain stores in areas where the board concludes a store
is needed to meet consumer demand. The board may establish,
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operate and maintain such establishments for storing and testing
liquors as it shall deem expedient to carry out its powers and
duties under this act.
(b) The board may lease the necessary premises for such
stores or establishments, but all such leases shall be made
through the Department of General Services as agent of the
board. Notwithstanding any other provision of law to the
contrary, the Department of General Services shall have no more
than ninety days from the date the board officially approves a
lease recommendation to send the final lease packet to the
appropriate agencies for further processing. The Department of
General Services shall be required to submit quarterly reports
to the chairman and minority chairman of the Law and Justice
Committee of the Senate and the chairman and minority chairman
of the Liquor Control Committee of the House of Representatives
indicating the number of lease recommendations approved by the
board during the preceding quarter and whether the corresponding
final lease packets were sent to the appropriate agencies within
the ninety-day deadline. If the Department of General Services
fails to regularly submit these quarterly reports or fails to
regularly meet the ninety-day deadline imposed by this
subsection, then the General Assembly may consider legislation
that would allow the board to lease premises for its stores
without the involvement of the Department of General Services.
The board, through the Department of General Services, shall
have authority to purchase such equipment and appointments as
may be required in the operation of such stores or
establishments.
Section 3. Section 304 of the act, amended December 8, 2004
(P.L.1810, No.239), is amended to read:
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Section 304. When Sales May Be Made at Pennsylvania Liquor
Stores.--(a) Except as provided for in subsection (b), every
Pennsylvania Liquor Store shall be open for business week days,
except holidays as that term is defined in section 102. The
board may, with the approval of the Governor, temporarily close
any store in any municipality.
(b) Certain Pennsylvania Liquor Stores operated by the board
[shall] may be open for Sunday retail sales between the hours of
[noon] nine o'clock antemeridian and [five] nine o'clock
postmeridian, except that no Sunday sales shall occur on Easter
Sunday or Christmas day. The board shall open [up to twenty-five
per centum of the total number of Pennsylvania Liquor Stores at
its discretion], at its discretion, as many Pennsylvania Liquor
Stores as it deems necessary for Sunday sales as provided for in
this subsection. The board shall submit yearly reports to the
Appropriations and the Law and Justice Committees of the Senate
and the Appropriations and the Liquor Control Committees of the
House of Representatives summarizing the total dollar value of
sales under this section.
Section 4. Section 305(b) of the act, amended July 6, 2005
(P.L.135, No.39), is amended and the section is amended by
adding a subsection to read:
Section 305. Sales by Pennsylvania Liquor Stores.--* * *
(b) Every Pennsylvania Liquor Store shall sell liquors at
wholesale to hotels, restaurants, clubs, and railroad, pullman
and steamship companies licensed under this act; and, under the
regulations of the board, to pharmacists duly licensed and
registered under the laws of the Commonwealth, and to
manufacturing pharmacists, and to reputable hospitals approved
by the board, or chemists. Sales to licensees shall be made at a
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price that includes a discount of ten per centum from the retail
price. The board may sell to registered pharmacists only such
liquors as conform to the Pharmacopoeia of the United States,
the National Formulary, or the American Homeopathic
Pharmacopoeia. The board may sell at special prices under the
regulations of the board, to United States Armed Forces
facilities which are located on United States Armed Forces
installations and are conducted pursuant to the authority and
regulations of the United States Armed Forces. All other sales
by such stores shall be at retail[.], except that incentives,
such as coupons or discounts on certain products, may be offered
to unlicensed customers of the board as provided for under
sections 207(n) and 493(24)(iii). A person entitled to purchase
liquor at wholesale prices may purchase the liquor at any
Pennsylvania Liquor Store upon tendering cash, check or credit
card for the full amount of the purchase. For this purpose, the
board shall issue a discount card to each licensee identifying
such licensee as a person authorized to purchase liquor at
wholesale prices. Such discount card shall be retained by the
licensee. The board may contract through the Commonwealth
bidding process for delivery to wholesale licensees at the
expense of the licensee receiving the delivery.
* * *
(j) If the board becomes a licensed lottery sales agent, as
set forth in section 305 of the act of August 26, 1971 (P.L.351,
No.91), known as the "State Lottery Law," then the following
shall apply, notwithstanding the provisions of the "State
Lottery Law":
(i) The Secretary of Revenue shall permit the board to
operate and maintain Pennsylvania lottery instant ticket vending
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machines, player-activated terminals and technologies or systems
subsequently approved by the Department of Revenue for the self-
service sale of lottery tickets and games in Pennsylvania Liquor
Stores. The board and the Secretary of Revenue shall mutually
agree upon the number and location of the stores authorized to
conduct self-service sales of lottery tickets and games.
(ii) The board shall not be required to post any type of
bond prior to conducting self-service sales of lottery tickets
and games.
(iii) Any commissions, compensation or any type of incentive
award based upon the sale of lottery tickets and games shall be
deposited by the board into the State Stores Fund.
Section 5. Section 470(a) of the act, amended December 22,
2011 (P.L.530, No.113), is amended to read:
Section 470. Renewal of Licenses; Temporary Provisions for
Licensees in Armed Service.--(a) All applications for renewal
of licenses under the provisions of this article shall be filed
with tax clearance from the Department of Revenue and the
Department of Labor and Industry and requisite license and
filing fees at least sixty days before the expiration date of
same: Provided, however, That the board, in its discretion, may
accept nunc pro tunc a renewal application filed less than sixty
days before the expiration date of the license with the required
fees, upon reasonable cause shown and the payment of an
additional filing fee of one hundred dollars ($100.00) for late
filing: And provided further, That except where the failure to
file a renewal application on or before the expiration date has
created a license quota vacancy after said expiration date which
has been filled by the issuance of a new license, after such
expiration date, but before the board has received a renewal
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application nunc pro tunc within the time prescribed herein the
board, in its discretion, may, after hearing, accept a renewal
application filed within two years after the expiration date of
the license with the required fees upon the payment of an
additional filing fee of two hundred fifty dollars ($250.00) for
late filing. In addition, the renewal application must indicate
the total dollar amount of alcoholic beverages sold by the
licensee during the twelve-month period immediately preceding
the filing of the renewal application. Where any such renewal
application is filed less than sixty days before the expiration
date, or subsequent to the expiration date, no license shall
issue upon the filing of the renewal application until the
matter is finally determined by the board and if an appeal is
taken from the board's action the courts shall not order the
issuance of the renewal license until final determination of the
matter by the courts. The board may enter into an agreement with
the applicant concerning additional restrictions on the license
in question. If the board and the applicant enter into such an
agreement, such agreement shall be binding on the applicant.
Failure by the applicant to adhere to the agreement will be
sufficient cause to form the basis for a citation under section
471 and for the nonrenewal of the license under this section. A
renewal application will not be considered filed unless
accompanied by the requisite filing and license fees and any
additional filing fee required by this section. Unless the board
shall have given ten days' previous notice to the applicant of
objections to the renewal of his license, based upon violation
by the licensee or his servants, agents or employes of any of
the laws of the Commonwealth or regulations of the board
relating to the manufacture, transportation, use, storage,
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importation, possession or sale of liquors, alcohol or malt or
brewed beverages, or the conduct of a licensed establishment, or
unless the applicant has by his own act become a person of ill
repute, or unless the premises do not meet the requirements of
this act or the regulations of the board, the license of a
licensee shall be renewed. Notwithstanding any other provision
of this act, a noise violation shall not be the sole basis for
objection by the board to the renewal of a license unless the
licensee has received six prior adjudicated noise citations
within a twenty-four-month period.
* * *
Section 6. Section 471(b) of the act, amended July 6, 2005
(P.L.135, No.39), is amended to read:
Section 471. Revocation and Suspension of Licenses; Fines.--
* * *
(b) Hearing on such citations shall be held in the same
manner as provided herein for hearings on applications for
license. Upon such hearing, if satisfied that any such violation
has occurred or for other sufficient cause, the administrative
law judge shall immediately suspend or revoke the license, or
impose a fine of not less than [fifty dollars ($50)] one hundred
dollars ($100) nor more than [one thousand dollars ($1,000),]
the greater of two thousand dollars ($2,000) or ten per centum
of the average gross monthly sales of alcoholic beverages sold
by the licensee during the twelve-month period immediately
preceding the filing of the licensee's renewal application, or
both, notifying the licensee by registered letter addressed to
his licensed premises.
(b.1) If the licensee has been cited and found to have
violated section 493(1) insofar as it relates to sales to minors
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or sales to a visibly intoxicated person, section 493(10)
insofar as it relates to lewd, immoral or improper entertainment
or section 493(14), (16) or (21), or has been found to be a
public nuisance pursuant to section 611, or if the owner or
operator of the licensed premises or any authorized agent of the
owner or operator has been convicted of any violation of the act
of April 14, 1972 (P.L.233, No.64), known as "The Controlled
Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §
5902 (relating to prostitution and related offenses) or 6301
(relating to corruption of minors), at or relating to the
licensed premises, the administrative law judge shall
immediately suspend or revoke the license, or impose a fine [of
not less than one thousand dollars ($1,000)] two thousand
dollars ($2,000) nor more than [five thousand dollars ($5,000)]
the greater of ten thousand dollars ($10,000) or ten per centum
of the average gross monthly sales of alcoholic beverages sold
by the licensee during the twelve-month period immediately
preceding the filing of the licensee's renewal application, or
both. However, if a licensee has been cited and found to have
violated section 493(1) as it relates to sales to minors or
sales to a visibly intoxicated person but at the time of the
sale the licensee was in compliance with the requirements set
forth in section 471.1 and the licensee had not sold to minors
or visibly intoxicated persons in the previous four years, then
the administrative law judge shall immediately suspend or revoke
the license, or impose a fine of not less than [fifty dollars
($50)] one hundred dollars ($100) nor more than [one thousand
dollars ($1,000)] the greater of two thousand dollars ($2,000)
or ten per centum of the average gross monthly sales of
alcoholic beverages sold by the licensee during the twelve-month
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period immediately preceding the filing of the licensee's
renewal application, or both.
(b.2) The administrative law judge shall notify the licensee
by registered mail, addressed to the licensed premises, of such
suspension, revocation or fine. In the event the fine is not
paid within twenty days of the adjudication, the administrative
law judge shall suspend or revoke the license, notifying the
licensee by registered mail addressed to the licensed premises.
Suspensions and revocations shall not go into effect until
thirty days have elapsed from the date of the adjudication
during which time the licensee may take an appeal as provided
for in this act, except that revocations mandated in section
481(c) shall go into effect immediately. Any licensee whose
license is revoked shall be ineligible to have a license under
this act until the expiration of three years from the date such
license was revoked. In the event a license is revoked, no
license shall be granted for the premises or transferred to the
premises in which the said license was conducted for a period of
at least one year after the date of the revocation of the
license conducted in the said premises, except in cases where
the licensee or a member of his immediate family is not the
owner of the premises, in which case the board may, in its
discretion, issue or transfer a license within the said year. In
the event the bureau or the person who was fined or whose
license was suspended or revoked shall feel aggrieved by the
adjudication of the administrative law judge, there shall be a
right to appeal to the board. The appeal shall be based solely
on the record before the administrative law judge. The board
shall only reverse the decision of the administrative law judge
if the administrative law judge committed an error of law,
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abused its discretion or if its decision is not based on
substantial evidence. In the event the bureau or the person who
was fined or whose license was suspended or revoked shall feel
aggrieved by the decision of the board, there shall be a right
to appeal to the court of common pleas in the same manner as
herein provided for appeals from refusals to grant licenses.
Each of the appeals shall act as a supersedeas unless, upon
sufficient cause shown, the reviewing authority shall determine
otherwise; however, if the licensee has been cited and found to
have violated section 493(1) insofar as it relates to sales to
minors or sales to a visibly intoxicated person, section 493(10)
insofar as it relates to lewd, immoral or improper entertainment
or section 493(14), (16) or (21), or has been found to be a
public nuisance pursuant to section 611, or if the owner or
operator of the licensed premises or any authorized agent of the
owner or operator has been convicted of any violation of "The
Controlled Substance, Drug, Device and Cosmetic Act," or of 18
Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
or if the license has been revoked under section 481(c), its
appeal shall not act as a supersedeas unless the reviewing
authority determines otherwise upon sufficient cause shown. In
any hearing on an application for a supersedeas under this
section, the reviewing authority may consider, in addition to
other relevant evidence, documentary evidence, including records
of the bureau, showing the prior history of citations, fines,
suspensions or revocations against the licensee; and the
reviewing authority may also consider, in addition to other
relevant evidence, evidence of any recurrence of the unlawful
activity occurring between the date of the citation which is the
subject of the appeal and the date of the hearing. If the
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reviewing authority is the board, no hearing shall be held on
the application for a supersedeas; however, a decision shall be
made based on the application, answer and documentary evidence
under this subsection. If the application for a supersedeas is
for a license that has been revoked under section 481(c), the
reviewing authority shall grant the supersedeas only if it finds
that the licensee will likely prevail on the merits. No penalty
provided by this section shall be imposed for any violations
provided for in this act unless the bureau notifies the licensee
of its nature within thirty days of the completion of the
investigation.
* * *
Section 7. Section 488 of the act, added February 21, 2002
(P.L.103, No.10), is amended to read:
Section 488. Shipment of Wine [into Commonwealth.--(a) The
shipment of wine from out-of-State to residents of this
Commonwealth is prohibited, except as otherwise provided for in
this section.] to Pennsylvania Liquor Stores.--
(b) Notwithstanding any other provision of this act or law
to the contrary, a person licensed by another state as a
producer, supplier, importer, wholesaler, distributor or
retailer of wine and who obtains a [direct wine shipper] direct-
to-store wine shipper license as provided for in this section
may ship up to nine liters per month of any wine [not included
on the list provided for in subsection (c)] on the [Internet]
order of any resident of this Commonwealth who is at least
twenty-one (21) years of age for such resident's personal use
and not for resale.
[(c) Each month, the board shall publish on the Internet a
list of all classes, varieties and brands of wine available for
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sale in the Pennsylvania Liquor Stores. A person holding a
direct shipper license may ship only those classes, varieties
and brands of wine not included on the list at the time an
Internet order is placed.]
(d) [An out-of-State] A direct-to-store wine shipper shall:
(1) Not ship more than nine liters per month on the Internet
order of any person in this Commonwealth.
(2) Report to the board each year the total amount of wine
shipped [into this Commonwealth] to Pennsylvania Liquor Stores
in the preceding calendar year.
(3) Permit the board, the enforcement bureau or the
Secretary of Revenue, or their designated representatives, to
perform an audit of the [out-of-State] direct-to-store wine
shipper's records upon request.
(4) 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.
(e) A [direct] direct-to-store wine shipper may ship wine on
the [Internet] order of a resident into this Commonwealth
provided that the wine is shipped to a Pennsylvania Liquor Store
selected by the resident. The wine will be subject to taxes in
the same manner as wine sold directly by the board. The wine
will not be released by the State store until all moneys due,
including all taxes and fees, have been paid by the resident.
(f) A person shall sign an affidavit provided by the
Pennsylvania Liquor Store where the wine was delivered to
stating that the wine will only be used for the person's
personal use. Any person who resells wine obtained under this
section commits a misdemeanor of the second degree.
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(g) The board may promulgate such rules and regulations as
are necessary to implement and enforce the provisions of this
section. The board may charge the resident a fee to cover the
cost associated with processing the [Internet] order.
(h) The board shall submit [monthly] annual reports to the
Appropriations Committee and the Law and Justice Committee of
the Senate and to the Appropriations Committee and the Liquor
Control Committee of the House of Representatives summarizing
the number of [direct] direct-to-store wine shipper licenses
issued by the board, the quantity of wine sold and shipped by
direct-to-store wine shipper licensees pursuant to this section
and the total dollar value of sales under this section.
(i) The term "wine" as used in this section shall mean
liquor which is fermented from [grapes and other fruits, having
alcoholic content of twenty-four per centum or less. The term
"wine" shall not include malt or brewed beverages nor shall wine
include any products containing alcohol derived from malt,
grain, cereal, molasses or cactus] an agricultural commodity as
that term is defined in section 505.2(c).
Section 8. The act is amended by adding a section to read:
Section 489. Direct Shipment of Wine.--(a) Notwithstanding
any other provision of law to the contrary, a person licensed by
the board or another state as a producer of wine, and who
obtains a license as provided for in this section, may ship up
to eighteen liters per month of any wine on the order of any
resident of this Commonwealth who is at least twenty-one years
of age for such resident's personal use and not for resale.
(b) Prior to issuing such a license, the board shall require
the person seeking the license to:
(1) File an application with the board.
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(2) Pay a registration fee of one hundred dollars ($100).
(3) Provide to the board a copy of the applicant's current
alcoholic beverage license issued by the board or another state,
if applicable.
(4) Provide documentation to the board which evidences that
the applicant has obtained a sales tax license from the
Department of Revenue.
(5) Obtain a tax bond, in the amount of one thousand dollars
($1,000), such that if the licensee does not pay the taxes
imposed under this section when due, the surety of the bond
shall pay all taxes and any related penalties, and any interest
that may be due or become due.
(6) Provide the board with any other information that the
board deems necessary and appropriate.
(c) The licensee shall:
(1) Require proof of age of the recipient, in a manner or
format approved by the board, before any wine is shipped to a
resident of this Commonwealth.
(2) Ensure that all boxes or exterior containers of wine
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."
(3) Ensure that shipments shall be delivered by an entity
holding a valid transporter-for-hire license issued by the board
and that such transporter-for-hire shall not deliver any wine
unless it does all of the following:
(i) Obtains the signature of the recipient of the wine upon
delivery.
(ii) Verifies by inspecting a valid form of photo
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identification, as provided for in section 495(a), that the
recipient is at least twenty-one (21) years of age.
(iii) Determines that the recipient is not visibly
intoxicated at the time of delivery.
(4) On a quarterly basis, remit to the Department of Revenue
all taxes due on sales to residents of this Commonwealth.
(5) Permit the board, the enforcement bureau or the
Secretary of Revenue, or their designated representatives, to
perform an audit of the licensee's records upon request.
(6) 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, including the collection and
remission of taxes as required under this section.
(7) Annually renew its license by paying a renewal fee
established by the board and report to the board, at the time of
renewal, the total amount of wine shipped to residents of this
Commonwealth in the preceding calendar year.
(d) Wine delivered under the authority of this section is
subject to the sales and use tax imposed by section 202 of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971, 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, the sales and use tax imposed by the act of
February 12, 2004 (P.L.73, No.11), known as the
Intergovernmental Cooperation Authority Act for Cities of the
Second Class, and the emergency State tax imposed on wines sold
by the board under the act of June 9, 1936 (1st Sp. Sess.,
P.L.13, No.4), entitled "An act imposing an emergency State tax
on liquor, as herein defined, sold by the Pennsylvania Liquor
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Control Board; providing for the collection and payment of such
tax; and imposing duties upon the Department of Revenue and the
Pennsylvania Liquor Control Board."
(e) A transporter for hire shall:
(1) keep records as required under section 512 pertaining to
the direct shipment of wine; and
(2) permit the board and the enforcement bureau, or their
designated representatives, to inspect such records in
accordance with section 513.
(f) Any person who resells wine obtained under this section
commits a misdemeanor of the second degree.
(g) Shipments of wine to persons in this Commonwealth from
persons who do not possess a license from the board authorizing
such shipments are prohibited. Any person who knowingly makes,
participates in, transports, imports or receives such shipment
commits a misdemeanor.
(h) The board shall submit annual reports to the
Appropriations and the Law and Justice Committees of the Senate
and to the Appropriations and the Liquor Control Committees of
the House of Representatives summarizing the number of licenses
issued by the board under this section, the quantity of wine
sold and shipped by licensees pursuant to this section and the
total dollar value of sales under this section.
(i) The board may promulgate such rules and regulations as
are necessary to implement and enforce the provisions of this
section.
(j) The term "wine" as used in this section shall mean
liquor which is fermented from an agricultural commodity as that
term is defined in section 505.2(c).
Section 9. Section 493(24) of the act, amended November 29,
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2006 (P.L.1421, No.155), is amended and the section is amended
by adding a paragraph to read:
Section 493. Unlawful Acts Relative to Liquor, Malt and
Brewed Beverages and Licensees.--The term "licensee," when used
in this section, shall mean those persons licensed under the
provisions of Article IV, unless the context clearly indicates
otherwise.
It shall be unlawful--
* * *
(24) (i) Things of Value Offered as Inducement. Except as
provided in subclause (ii), for any licensee under the
provisions of this article, or the board or any manufacturer, or
any employe or agent of a manufacturer, licensee or of the
board, to offer to give anything of value or to solicit or
receive anything of value as a premium for the return of caps,
stoppers, corks, stamps or labels taken from any bottle, case,
barrel or package containing liquor or malt or brewed beverage,
or to offer or give or solicit or receive anything of value as a
premium or present to induce directly the purchase of liquor or
malt or brewed beverage, or for any licensee, manufacturer or
other person to offer or give to trade or consumer buyers any
prize, premium, gift or other inducement to purchase liquor or
malt or brewed beverages, except advertising novelties of
nominal value which the board shall define. This section shall
not prevent any manufacturer or any agent of a manufacturer from
offering and honoring coupons which offer monetary rebates on
purchases of wines and spirits through State Liquor Stores or
purchases of malt or brewed beverages through distributors and
importing distributors in accordance with conditions or
regulations established by the board. The board may redeem
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coupons offered by a manufacturer or an agent of a manufacturer
at the time of purchase. Coupons offered by a manufacturer or an
agent of a manufacturer shall not be redeemed without proof of
purchase. This section shall not apply to the return of any
monies specifically deposited for the return of the original
container to the owners thereof.
(ii) Notwithstanding subclause (i) or any other provision of
law, a holder of a restaurant license that is also approved to
hold a slot machine license or a conditional slot machine
license under 4 Pa.C.S. Part II (relating to gaming) may give
liquor and malt or brewed beverages free of charge to any person
actively engaged in playing a slot machine.
(iii) Notwithstanding subclause (i) or any other provision
of law, the board may establish and implement a customer
relations management program for the purpose of offering
incentives, such as coupons or discounts on certain products
which may be conditioned upon the purchase of liquor, to
unlicensed customers of the board.
* * *
(35) Sale of wine received by direct-to-store or direct
shipment. For any licensee to sell or offer to sell any wine
purchased or acquired, directly or indirectly, from a licensee
pursuant to the authority of section 488, or from a licensee
pursuant to the authority of section 489.
Section 10. Section 802(c) of the act is amended to read:
Section 802. Moneys Paid Into The State Stores Fund for Use
of the Commonwealth.--* * *
(c) [Two] Two and one-half per centum of annual profits from
the sale of liquor and alcohol shall be annually transferred to
the Department of Health for use by the Office of Drug and
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Alcohol Programs, or its successor in function, for the
following purposes:
(1) Treatment and rehabilitation of persons addicted to the
excessive use of alcoholic beverages.
(2) Promotion of education, prevention and early
intervention programs designed to eliminate abuse and addiction
to alcohol or other mood-altering substances or secure
appropriate treatment for the already addicted.
(3) Study of the problem of addiction.
* * *
Section 11. This act shall take effect in 60 days.
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