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SENATE AMENDED
A02468
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
189
Session of
2015
INTRODUCED BY SONNEY, BARRAR, D. COSTA, ELLIS, GRELL, A. HARRIS,
JAMES, KILLION, KNOWLES, MACKENZIE, MARSICO, MILLARD,
O'BRIEN, O'NEILL, SAINATO, SAYLOR, DeLUCA, SIMMONS,
OBERLANDER, KIRKLAND, TRUITT, MOUL, GIBBONS, KORTZ, FARRY,
MICCARELLI AND DAVIS, JANUARY 23, 2015
SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JUNE 22, 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
preliminary provisions, further providing for definitions,;
in Pennsylvania Liquor Control Board, further providing for
general powers of the Pennsylvania Liquor Control Board,; in
Pennsylvania liquor stores, further providing for sales by
Pennsylvania liquor stores,; in licenses and regulations,
further providing for shipment of wine into Commonwealth,
PROVIDING FOR THE PENNSYLVANIA WINE MARKETING AND RESEARCH
PROGRAM BOARD, AND FURTHER PROVIDING FOR UNLAWFUL ACTS
RELATIVE TO LIQUOR, ALCOHOL AND LIQUOR LICENSEES; and, in
distilleries, wineries, warehouses, bailees and transporters,
further providing for limited wineries.
Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
reenacted, "An act relating to alcoholic liquors, alcohol and
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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
preliminary provisions, further providing for definitions; 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; and, in licenses and
regulations and liquor and alcohol and malt and brewed
beverages, further providing for authority to issue liquor
licenses to hotels, restaurants and clubs, for sale of malt
or brewed beverages by liquor licensees, for malt and brewed
beverages manufacturers', distributors' and importing
distributors' licenses, for distributors' and importing
distributors' restrictions on sales, storage, etc., for
retail dispensers' restrictions on purchases and sales and
for renewal of licenses and temporary provisions for
licensees in armed service, providing for license auction and
further providing for revocation and suspension of licenses
and fines and for shipment of wine into Commonwealth,
providing for direct shipment of wine and for unlawful acts
relative to liquor, malt and brewed beverages and licensees
and for premises to be vacated by patrons.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "eligible entity" in section
102 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 July 5, 2012 (P.L.1007, No.116), is amended to read:
SECTION 1. THE DEFINITION OF "DIRECT SHIPPER" IN SECTION 102
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 ADDED FEBRUARY 21, 2002 (P.L.103, NO.10), IS AMENDED TO
READ:
Section 102. Definitions.--The following words or phrases,
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unless the context clearly indicates otherwise, shall have the
meanings ascribed to them in this section:
* * *
"Eligible entity" shall mean a city of the third class, a
hospital, a church, a synagogue, a volunteer fire company, a
volunteer ambulance company, a volunteer rescue squad, a unit of
a nationally chartered club which has been issued a club liquor
license, a club which has been issued a club liquor license and
which, as of December 31, 2002, has been in existence for at
least 100 years, a library, a nationally accredited Pennsylvania
nonprofit zoological institution licensed by the United States
Department of Agriculture, a nonprofit agricultural association
in existence for at least ten years, a bona fide sportsmen's
club in existence for at least ten years, a nationally chartered
veterans' organization and any affiliated lodge or subdivision
of such organization, a fraternal benefit society that is
licensed to do business in this Commonwealth and any affiliated
lodge or subdivision of such fraternal benefit society, a museum
operated by a nonprofit corporation, a nonprofit corporation
engaged in the performing arts, an arts council, a nonprofit
corporation that operates an arts facility or museum, a
nonprofit organization as defined under section 501(c)(3) of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
501(c)(3)) whose purpose is to protect the architectural
heritage of boroughs or a township of the second class and which
has been recognized as such by a municipal resolution, a
nonprofit organization as defined under section 501(c)(3) of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
501(c)(3)) conducting a regatta in a city of the second class
with the permit to be used on State park grounds or conducting a
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family-oriented celebration as part of Welcome America in a city
of the first class on property leased from that city for more
than fifty years, a nonprofit organization as defined under
section 501(c)(3) of the Internal Revenue Code of 1986 (26
U.S.C. § 501(c)(3)) whose purpose is to raise funds for the
research and treatment of cystic fibrosis, a nonprofit
organization as defined under section 501(c)(3) of the Internal
Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to
educate the public on issues dealing with watershed
conservation, a nonprofit organization as defined under section
501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-
514, 26 U.S.C. § 501(c)(3)) whose purpose is to provide equine
assisted activities for children and adults with special needs,
a nonprofit economic development agency in a city of the second
class with the primary function to serve as an economic
generator for the greater southwestern Pennsylvania region by
attracting and supporting film, television and related media
industry projects and coordinating government and business
offices in support of a production, a county tourist promotion
agency as defined in section 3(1) of the act of April 28, 1961
(P.L.111, No.50), known as the "Tourist Promotion Law," a junior
league that is a nonprofit organization as defined under section
501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. §
501(c)(3)) that is comprised of women whose purpose is
exclusively educational and charitable in promoting the
volunteerism of women and developing and participating in
community projects and that has been in existence for over
seventy years, a nonprofit organization as defined under section
501(c)(3) of the Internal Revenue Code of 1986 and whose purpose
is the education and promotion of American history, a nonprofit
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organization as defined under section 501(c)(6) of the Internal
Revenue Code of 1986 whose purpose is to support business and
industry, a brewery which has been issued a license to
manufacture malt or brewed beverages and has been in existence
for at least 100 years or a club recognized by Rotary
International and whose purpose is to provide service to others,
to promote high ethical standards and to advance world
understanding, goodwill and peace through its fellowship of
business, professional and community leaders or a nonprofit
organization as defined under section 501(c)(3) of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3))
whose purpose is to promote mushrooms while supporting local and
regional charities, a museum operated by a not-for-profit
corporation in a city of the second class A, a nonprofit
organization as defined under section 501(c)(3) of the Internal
Revenue Code of 1986 which is located in a city of the second
class A and has as its purpose economic and community
development, a nonprofit organization as defined under section
501(c)(3) or (6) of the Internal Revenue Code of 1986 that is
located in a city of the third class in a county of the fifth
class, a nonprofit social service organization defined under
section 501(c)(3) of the Internal Revenue Code of 1986 located
in a county of the third class whose purpose is to serve
individuals and families in that county of the third class, a
nonprofit organization as defined under section 501(c)(3) of the
Internal Revenue Code of 1986 whose main purpose is to
temporarily foster stray and unwanted animals and match them to
suitable permanent homes or a nonprofit organization as defined
under section 501(c)(3) of the Internal Revenue Code of 1986 who
operates either a Main Street Program or Elm Street Program
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recognized by the Commonwealth, the National Trust for Historic
Preservation or both, a nonprofit radio station that is a member
of the National Public Radio network, a nonprofit public
television station that is a member of the Pennsylvania Public
Television Network or a nonprofit organization as defined under
section 501(c)(3) of the Internal Revenue Code of 1986 whose
purpose is to promote awareness, education and research and to
provide a support system for patients with neutropenia and their
families through a national resource network or a nonprofit
organization as defined under section 501(c)(3) of the Internal
Revenue Code of 1986 whose purpose is to allocate funds for
research to expedite a cure for achromatopsia.
"DIRECT WINE SHIPPER" SHALL MEAN A PERSON [OUTSIDE THIS
COMMONWEALTH WHO OBTAINS A LICENSE FROM] LICENSED AS A PRODUCER
OF WINE BY THE BOARD [TO ACCEPT] OR BY ANOTHER STATE OR COUNTRY
THAT ACCEPTS ORDERS PLACED FOR WINE FROM WITHIN THIS
COMMONWEALTH. [BY THE INTERNET AND WHO SHIPS OR FACILITATES IN
ANY WAY SHIPMENT OF WINE BY A DELIVERY AGENT OR COMMON CARRIER
TO A PENNSYLVANIA LIQUOR STORE.] THE TERM INCLUDES A LIMITED
WINERY.
* * *
Section 2. Section 207(b) of the act is amended to read:
Section 207. General Powers of Board.--Under this act, the
board shall have the power and its duty shall be:
* * *
(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
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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. This proportional pricing provision shall not apply
to special liquor orders authorized under section 305(a) of this
act. 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 uniform within
each class of wine purchased by the board. 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
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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.
* * *
Section 3. Section 305(a) of the act, amended May 8, 2003
(P.L.1, No.1), is amended AND THE SECTION IS AMENDED BY ADDING A
SUBSECTION to read:
SECTION 3. SECTION 305(A) AND (B) OF THE ACT, AMENDED MAY 8,
2003 (P.L.1, NO.1) AND JULY 6, 2005 (P.L.135, NO.39), ARE
AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
READ:
Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
board shall in its discretion determine where and what classes,
varieties and brands of liquor and alcohol it shall make
available to the public and where such liquor and alcohol will
be sold. Every Pennsylvania Liquor Store shall be authorized to
sell combination packages. If a person desires to purchase a
class, variety or brand of liquor or alcohol not currently
available from the board, he or she may place a special order
for such item so long as the order is for two or more bottles.
The board may require a reasonable deposit from the purchaser as
a condition for accepting the order. The customer shall be
notified immediately upon the arrival of the goods.
In computing the retail price of such special orders for
liquor or alcohol, the board shall not include the cost of
freight or shipping before applying [the] a mark-up that shall
not exceed IS EQUAL TO ten per centum of the cost of the product
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and taxes but shall add the freight or shipping charges to the
price after the mark-up and taxes have been applied. IN ADDITION
TO THE TEN PER CENTUM MARK-UP, THE BOARD SHALL IMPOSE HANDLING
FEES ON SPECIAL ORDERS WHICH COME TO REST AT A STORE, IN THE
SAME MANNER THAT IT IMPOSES THEM ON THE OTHER ALCOHOL THAT IT
SELLS.
A LICENSED IMPORTER OR A LICENSED VENDOR MAY PLACE SPECIAL
ORDERS ON BEHALF OF CUSTOMERS AND MAY DELIVER THE ORDERS TO
CUSTOMERS. THE ORDERS DO NOT NEED TO COME TO REST AT A STORE,
BUT DELIVERY MAY NOT OCCUR UNTIL PAYMENT FOR THE ORDER HAS BEEN
FORWARDED TO THE BOARD AND THE BOARD HAS AUTHORIZED THE DELIVERY
OF THE ORDER. A HANDLING FEE MAY NOT BE ASSESSED ON AN ORDER
DELIVERED DIRECTLY TO A CUSTOMER. LIABILITY FOR SPECIAL ORDERS
THAT DO NOT COME TO REST AT A STORE, SHALL, UNTIL THE ORDER IS
DELIVERED TO THE CUSTOMER, REMAIN WITH THE LICENSED IMPORTER OR
LICENSED VENDOR THAT PLACED THE ORDER ON BEHALF OF THE CUSTOMER.
THE BOARD SHALL, BY JANUARY 1, 2017, IMPLEMENT A PROCEDURE FOR
PROCESSING SPECIAL ORDERS WHICH DO NOT COME TO REST AT A STORE.
THE BOARD MAY CONTINUE TO ACCEPT SPECIAL ORDERS AT ITS STORES
EVEN AFTER THE PROCEDURE IS IMPLEMENTED.
Unless the customer pays for and accepts delivery of any such
special order within ten days after notice of arrival, the store
may place it in stock for general sale and the customer's
deposit shall be forfeited.
(A.1) THE BOARD MAY REFUSE TO PROCESS A SPECIAL ORDER AND
PRECLUDE A VENDOR OR IMPORTER FROM PROCESSING A SPECIAL ORDER,
IF IT APPEARS THAT THE SPECIAL ORDER IS FOR AN ITEM
SUBSTANTIALLY SIMILAR TO AN ITEM THAT IS ON THE MONTHLY LIST THE
BOARD PUBLISHES UNDER SECTION 488(C) OR IF THE BOARD BELIEVES
THAT DEMAND FOR THE ITEM IS SUCH THAT IT SHOULD BE MADE
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AVAILABLE GENERALLY. IF THE PROCESSING OF A SPECIAL ORDER IS
REFUSED OR PRECLUDED UNDER THIS SUBSECTION, THE ITEM SHALL BE
MADE AVAILABLE THROUGH THE BOARD IN THE AMOUNT AND MANNER THE
BOARD DEEMS APPROPRIATE.
(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
PRICE THAT INCLUDES A DISCOUNT OF TEN PER CENTUM FROM THE RETAIL
PRICE[.]; EXCEPT THAT SPECIAL ORDER SALES TO LICENSEES
AUTHORIZED IN SECTION 305(A) SHALL NOT BE SUBJECT TO THE TEN PER
CENTUM DISCOUNT. 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. 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
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BIDDING PROCESS FOR DELIVERY TO WHOLESALE LICENSEES AT THE
EXPENSE OF THE LICENSEE RECEIVING THE DELIVERY.
* * *
Section 4. 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] shall be governed by this section.
(b) Notwithstanding any other provision of this act or law
[to the contrary], a person licensed by the board or another
state OR COUNTRY as a producer[, supplier, importer, wholesaler,
distributor or retailer] of wine and who obtains a direct wine
shipper license as provided for in this section may ship [up to
nine liters per month of] UP TO THIRTY-SIX CASES OF UP TO NINE
LITERS PER CASE IN A CALENDAR YEAR 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
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.] Prior to issuing a direct wine
INTERNET ORDER IS PLACED.]
(C.1) PRIOR TO ISSUING A DIRECT WINE shipper license, the
board shall require the person seeking the license AN APPLICANT
to:
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(1) File an application with the board.
(2) Pay a one hundred dollar ($100) registration fee.
(3) Provide to the board a true copy of the applicant's
current alcoholic beverage license issued by the board or
another state , if applicable OR COUNTRY .
(4) Provide documentation to the board which evidences that
the applicant has obtained a sales tax license from the
Department of Revenue.
(5) Provide the board with any other information that the
board deems necessary and appropriate.
(d) [An out-of-State] A direct wine shipper shall DO ALL OF
THE FOLLOWING:
[(1) [Not ship more than nine liters per month on the
Internet order of any person in this Commonwealth.] On a
quarterly basis, pay to the Department of Revenue all taxes due
on sales to residents of this Commonwealth. Notwithstanding any
other provision of law to the contrary, the wine delivered under
the authority of this section will be 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 June 5, 1991 (P.L.9,
No.6), known as the "Pennsylvania Intergovernmental Cooperation
Authority Act for Cities of the First 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 Control Board; providing for the
collection and payment of such tax; and imposing duties upon the
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Department of Revenue and the Pennsylvania Liquor Control
Board."
(2) Report to the board each year the total of wine shipped
[into] to residents of this Commonwealth in the preceding
calendar year.
(3) Permit the board, the enforcement bureau , THE
ENFORCEMENT BUREAU or the Secretary of Revenue, or their
designated representatives, to perform an audit of the [out-of-
State] direct 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[.], including the collection
and remission of taxes as required under this section.
(5) 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.
(6) 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."
(7) PAY TO THE DEPARTMENT OF REVENUE ALL TAXES DUE ON SALES
TO RESIDENTS OF THIS COMMONWEALTH. THE AMOUNT OF THE TAXES SHALL
BE CALCULATED AS IF THE SALES WERE IN THIS COMMONWEALTH AT THE
LOCATIONS WHERE DELIVERY WAS MADE. THE WINE DELIVERED UNDER
THIS SUBSECTION SHALL BE SUBJECT TO ONLY THE FOLLOWING:
(I) THE SALES AND USE TAX IMPOSED BY SECTION 202 AND ARTICLE
II-B OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE
"TAX REFORM CODE OF 1971."
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(II) THE SALES AND USE TAX IMPOSED BY ARTICLE XXXI-B OF THE
ACT OF JULY 28, 1953 (P.L.723, NO.230), KNOWN AS THE "SECOND
CLASS COUNTY CODE."
(III) THE SALES AND USE TAX IMPOSED BY THE ACT OF JUNE 5,
1991 (P.L.9, NO.6), KNOWN AS THE "PENNSYLVANIA INTERGOVERNMENTAL
COOPERATION AUTHORITY ACT FOR CITIES OF THE FIRST CLASS."
(IV) THE WINE EXCISE TAX IMPOSED UNDER SUBSECTION (J).
(7) (8) Annually renew its license by paying a renewal fee
established by the board OF ONE HUNDRED DOLLARS ($100) .
[(e) A direct 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.] delivered under the authority
of this section will be subject to the sales and use tax imposed
by section 202 of the Tax Reform Code of 1971, the sales and use
tax imposed by Article XXXI-B of the Second Class County Code,
the sales and use tax imposed by the Pennsylvania
Intergovernmental Cooperation Authority Act for Cities of the
First 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
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.1) A transporter for hire shall:
(1) keep records as required under section 512 pertaining to
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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) [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. A PERSON
CONVICTED OF SELLING OR OFFERING TO SELL ANY WINE IN VIOLATION
OF THIS SECTION SHALL, IN ADDITION TO ANY OTHER PENALTY
PRESCRIBED BY LAW, BE SENTENCED TO PAY A FINE OF FOUR DOLLARS
($4) PER FLUID OUNCE FOR EACH CONTAINER OF WINE FOUND ON THE
PREMISES WHERE THE SALE WAS MADE OR ATTEMPTED. THE AMOUNT OF
FINE PER CONTAINER SHALL BE BASED ON THE CAPACITY OF THE
CONTAINER WHEN FULL, WHETHER OR NOT IT IS FULL AT THE TIME OF
SALE OR ATTEMPTED SALE. ALL WINE FOUND ON THE PREMISES SHALL BE
CONFISCATED. THE PROHIBITION ON RESELLING WINE SHALL NOT APPLY
TO ANY ENTITY WHO IS LICENSED TO RESELL WINE AND WHO ACQUIRES
THE WINE FROM A LIMITED WINERY LICENSED UNDER SECTION 505.2.
(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 shipper licenses issued by the board[,] and
the quantity of wine sold by direct wine shippers pursuant to
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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.]
(j) The term "direct wine shipper" as used in this section
shall mean a person who holds a direct wine shipper license as
provided for in this section and includes a limited winery.
(J) A WINE EXCISE TAX IS IMPOSED AND ASSESSED AT THE RATE OF
ONE DOLLAR ($1.00) PER GALLON ON ALL WINE SOLD AND DELIVERED
UNDER THIS SECTION. THE TAX SHALL BE COLLECTED BY THE DIRECT
WINE SHIPPER FROM THE PURCHASER AND SHALL BE PAID TO THE
DEPARTMENT AS PROVIDED UNDER THIS SECTION. UNLESS OTHERWISE
SPECIFIED, THE TAX SHALL BE ASSESSED, COLLECTED AND ENFORCED BY
THE DEPARTMENT IN THE SAME MANNER AS THE TAX UNDER ARTICLE II OF
THE "TAX REFORM CODE OF 1971."
(K) RECEIPTS FROM THE TAX UNDER SUBSECTION (J) SHALL BE
DEPOSITED INTO THE GENERAL FUND. ANNUALLY, THE AMOUNT OF TWO
HUNDRED AND FIFTY THOUSAND DOLLARS ($250,000) SHALL BE
TRANSFERRED FROM THE GENERAL FUND TO A RESTRICTED ACCOUNT WITHIN
THE GENERAL FUND. THE MONEY IN THE RESTRICTED ACCOUNT IS
APPROPRIATED ON A CONTINUING BASIS TO THE PENNSYLVANIA WINE
MARKETING AND RESEARCH PROGRAM BOARD FOR THE PURPOSE OF AWARDING
GRANTS UNDER SECTION 488.1.
(L) A TRANSPORTER FOR HIRE SHALL:
(1) KEEP RECORDS AS REQUIRED UNDER SECTION 512 PERTAINING TO
THE DIRECT SHIPMENT OF WINE; AND
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(2) PERMIT THE BOARD AND THE ENFORCEMENT BUREAU, OR THEIR
DESIGNATED REPRESENTATIVES, TO INSPECT THE RECORDS UNDER SECTION
513.
SECTION 5. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 488.1. PENNSYLVANIA WINE MARKETING AND RESEARCH
PROGRAM BOARD.--(A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
THE PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM BOARD
SHALL, IN ADDITION TO THE MEMBERS APPOINTED BY THE SECRETARY OF
AGRICULTURE UNDER 3 PA.C.S. § 4504(A) (RELATING TO COMMODITY
MARKETING BOARD), BE COMPOSED OF FOUR MEMBERS APPOINTED BY THE
GENERAL ASSEMBLY AS FOLLOWS:
(1) ONE INDIVIDUAL APPOINTED BY THE PRESIDENT PRO TEMPORE OF
THE SENATE.
(2) ONE INDIVIDUAL APPOINTED BY THE MINORITY LEADER OF THE
SENATE.
(3) ONE INDIVIDUAL APPOINTED BY THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES.
(4) ONE INDIVIDUAL APPOINTED BY THE MINORITY LEADER OF THE
HOUSE OF REPRESENTATIVES.
(B) THE MEMBERS APPOINTED UNDER SUBSECTION (A) SHALL:
(1) EXCEPT AS PROVIDED UNDER THIS SECTION, SERVE ON THE SAME
TERMS AND CONDITIONS AS MEMBERS APPOINTED BY THE SECRETARY OF
AGRICULTURE.
(2) BE RESIDENTS OF THIS COMMONWEALTH.
(3) HAVE SUBSTANTIAL EXPERIENCE OR EXPERTISE IN THE
PENNSYLVANIA WINE INDUSTRY.
(4) SERVE AT THE PLEASURE OF THE APPOINTING AUTHORITY.
(C) APPOINTING AUTHORITIES UNDER SUBSECTION (A) SHALL
APPOINT INITIAL MEMBERS WITHIN THIRTY DAYS OF THE EFFECTIVE DATE
OF THIS SECTION.
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(D) IN ADDITION TO DUTIES IMPOSED UNDER OTHER LAWS, THE
PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM BOARD SHALL DO
ALL OF THE FOLLOWING:
(1) MEET AS OFTEN AS NECESSARY BUT AT LEAST ANNUALLY.
(2) ADOPT GUIDELINES ESTABLISHING THE PROCEDURE BY WHICH AN
ENTITY MAY SUBMIT AN APPLICATION FOR GRANT FUNDING UNDER THIS
SECTION TO THE PENNSYLVANIA WINE MARKETING AND RESEARCH PROGRAM
BOARD.
(3) HAVE THE FOLLOWING DUTIES AS TO AWARDING GRANTS:
(I) AWARD GRANTS TO ENTITIES FOR THE PURPOSE OF INCREASING
THE PRODUCTION OF PENNSYLVANIA-MADE WINES AND ENHANCING THE
PENNSYLVANIA WINE INDUSTRY THROUGH PROMOTION, MARKETING AND
RESEARCH-BASED PROGRAMS AND PROJECTS.
(II) ALLOCATE GRANTS THROUGH A COMPETITIVE GRANT REVIEW
PROCESS ESTABLISHED BY THE PENNSYLVANIA WINE MARKETING AND
RESEARCH PROGRAM BOARD. THE APPLICATION FOR A GRANT SHALL
INCLUDE:
(A) THE PURPOSE FOR WHICH THE GRANT SHALL BE UTILIZED;
(B) INFORMATION INDICATING NEED FOR THE GRANT;
(C) AN ESTIMATED BUDGET;
(D) METHODS FOR MEASURING OUTCOMES; AND
(E) ANY OTHER CRITERIA AS THE BOARD MAY REQUIRE.
(III) REQUIRE GRANT RECIPIENTS TO PROVIDE THE PENNSYLVANIA
WINE MARKETING AND RESEARCH PROGRAM BOARD WITH FULL AND COMPLETE
ACCESS TO ALL RECORDS RELATING TO THE PERFORMANCE OF THE GRANT
AND TO SUBMIT AT THE TIME AND IN THE FORM AS MAY BE PRESCRIBED
TRUTHFUL AND ACCURATE INFORMATION THAT THE PENNSYLVANIA WINE
MARKETING AND RESEARCH PROGRAM BOARD MAY REQUIRE.
(IV) CONDUCT A THOROUGH ANNUAL EVALUATION OF EACH PROGRAM
FOR WHICH A GRANT UNDER THIS SECTION IS MADE. THE PENNSYLVANIA
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