Bill Text: PA HB633 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Further providing for shipment of wine into Commonwealth, for unlawful acts relative to liquor, malt and brewed beverages and licensees, for licenses issued and for limited wineries.

Spectrum: Slight Partisan Bill (Republican 12-5)

Status: (Introduced - Dead) 2013-02-08 - Referred to LIQUOR CONTROL [HB633 Detail]

Download: Pennsylvania-2013-HB633-Introduced.html

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PRINTER'S NO. 695

 

THE GENERAL ASSEMBLY OF PENNSYLVANIA

 

HOUSE BILL

No.

633

Session of 2013

 

 

 

INTRODUCED BY PETRI, D. COSTA, EVERETT, GINGRICH, GRELL, GROVE, M. K. KELLER, MAHER, MILLARD, O'BRIEN, SANTARSIERO, WATSON, YOUNGBLOOD, MOUL AND MARSICO, FEBRUARY 8, 2013

 

 

REFERRED TO COMMITEE ON LIQUOR CONTROL, FEBRUARY 8, 2013

 

 

 

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," 
further providing for shipment of wine into Commonwealth, for 
unlawful acts relative to liquor, malt and brewed beverages 
and licensees, for licenses issued and for limited wineries.

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

Section 1. Section 488 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 488. Shipment of Wine into Commonwealth.--(a) The

shipment of wine from [out-of-State] a direct wine shipper to
residents of this Commonwealth is prohibited, except as
otherwise provided for in this section.

(b) Notwithstanding any other provision of this act or law
to the contrary, a person licensed by the board or by another
state 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 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] Reserved.

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

(1) [Not ship more than nine liters per month on the
Internet order of any person in this Commonwealth.] File a 
written application with the board in such form and containing 
such information as the board shall require. A completed 
application shall contain a true and correct copy of the 
applicant's current license or certificate of operating 
authority issued by the board or by another state. The applicant 
must provide documentation that it has obtained a sales tax 
license from the Pennsylvania Department of Revenue. The 
licensing period for a direct wine shipper license shall be 
established under section 402. An applicant for the license 

shall adhere to the provisions of section 477. The application, 
renewal and filing fee for the license shall be as prescribed by 
the board. Notwithstanding this provision, if an applicant, at 
the time of the initial application for the license, holds a 
valid limited winery license issued by the board, the applicant 
may not be required to pay the application fee prescribed by the 
board. If an applicant properly renews its limited winery 
license, as provided for in section 517, the applicant shall not 
be required to pay the renewal fee prescribed by the board.

(2) Report to the board each [year] month the total [of]
number of bottles sold and shipped during the preceding calendar 
month, the size of those bottles, the name brand of each wine in 
the shipments, the quantities of each wine included in the 
shipments and the price of each item included in the shipments, 
for all wine shipped within and into this Commonwealth in the
preceding calendar [year] month.

(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 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.

(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] Wine sold by a direct shipper pursuant to this section
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.] 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."

(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.] A direct wine shipper shall only ship wine 
pursuant to this section provided that the resident placing the 
order has provided the shipper with a written or electronic 
acknowledgment that the wine is for personal consumption only 
and not for resale. Any person who resells wine obtained under
this section commits a misdemeanor of the second degree. A 
direct wine shipper shall:

(1) Ensure that all containers of wine shipped directly to a
resident of this Commonwealth are conspicuously labeled with the
words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE TWENTY-ONE (21)
OR OLDER REQUIRED FOR DELIVERY."

(2) Ensure that shipments shall be delivered by an entity
holding a valid transporter-for-hire license issued by the board
and that the transporter-for-hire may 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
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.

(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.]

(g.1) On a quarterly basis, a direct wine shipper shall
provide to the Pennsylvania Department of Revenue, with a copy
to the board, an accounting of the taxes collected pursuant to
this section. All taxes collected by the direct wine shipper
shall be remitted to the Pennsylvania Department of Revenue on a
quarterly basis. A direct wine shipper shall permit the board,
the enforcement bureau or the Pennsylvania Department of
Revenue, any additional information deemed necessary to ensure
compliance with this section.

(h) The board shall submit monthly 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, the
quantity of wine sold 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.

(j) A direct wine shipper license shall be subject to the
citation process set forth in section 471.

(k) A shipment of wine direct to a person in this
Commonwealth from a person who does not possess a direct wine

shipper license from the board is prohibited. A person who
knowingly makes, participates in, transports, imports or
receives such shipment commits a misdemeanor.

(l) An applicant for a direct wine shipper license shall
obtain a tax bond in the amount of one thousand dollars
($1,000).

Section 2. Section 493 of the act 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--

* * *

(35) Sale of wine received by direct shipment. For a
licensee to sell or offer to sell wine purchased or acquired
from a direct wine shipper pursuant to the authority of section
488.

Section 3. Section 505 of the act, amended June 25, 2010
(P.L.217, No.35), is amended to read:

Section 505. Licenses Issued.--Upon receipt of the 
application in the form herein provided and the proper fees, the 
board may grant to such applicant a license to engage in, (a) 
the operation of a limited winery or a winery; or, (b) the 
manufacturing, producing, distilling, developing, or using in 
the process of manufacturing, denaturing, redistilling, 
recovering, rectifying, blending and reusing of alcohol and 
liquor; or, (c) the holding in bond of alcohol and liquor; or, 
(d) the holding in storage, as bailee for hire, of alcohol, 

liquor and malt or brewed beverages; or, (e) the transporting 
for hire of alcohol, liquor and malt or brewed beverages. Such
licenses may be transferred from one person to another or from
one location to another, or both. Every applicant for a transfer
of such licenses shall file a written application with the
board, together with a filing fee of five hundred fifty dollars
($550) if the transfer is to a new location, six hundred fifty
dollars ($650) if the transfer is to a new person, or seven
hundred dollars ($700) if the transfer is to a new person for
use at a new location. Whenever such a license is transferred,
no license or other fees shall be required from the persons to
whom such transfer is made for the portion of the license period
for which the license fee has been paid by the transferor. Every 
applicant for renewal of such licenses shall file a written 
application with the board together with an application 
surcharge of seven hundred dollars ($700).

Section 4. Section 505.2(a) of the act is amended by adding
a paragraph to read:

Section 505.2. Limited Wineries.--(a) In the interest of
promoting tourism and recreational development in Pennsylvania,
holders of a limited winery license may:

* * *

(2.1) Notwithstanding any other provision of this act or law
to the contrary, only ship wine to residents of this
Commonwealth in accordance with the provisions of section 488. A
sale to a licensee of the board shall take place on the licensed
premises of the limited winery. A limited winery is prohibited
from shipping or delivering wine sold to licensees of the board.

* * *

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