Subchapter K. LIMITED WINERIES
Sec.
5.401. Definitions.
5.402. Tasting samples.
5.403. Sales generally.
5.404. Sales for on-premises consumption.
5.405. Sales for off-premises consumption.
5.406. Sales of other items.
5.407. Delivery of products.
5.408. Additional Board-approved locations.
5.409. Records, receipts and reports.
Authority The provisions of this Subchapter K added under section 207(i) of the Liquor Code (47 P.S. § 2-207(i)), unless otherwise noted.
Source The provisions of this Subchapter K added July 22, 2022, effective July 23, 2022, 52 Pa.B. 4090, unless otherwise noted.
§ 5.401. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Limited winery—A winery that produces at least 200 gallons per year but not more than 200,000 gallons per year of winery products for each full calendar year that the limited winery holds an active limited winery license from the Commonwealth.
Original container—Bottles, casks, kegs, cans, boxes or other suitable containers that have been securely capped, sealed or corked by the limited winery at the place of manufacture, with the name and address of the limited winery affixed to the bottle, cask, keg or other container.
Produce—To manufacture winery products from agricultural commodities, including preparation for fermentation, fermentation, blending, preserving, filtering and packaging the winery products.
Tasting sample—An individual portion of a winery product, in an open container, offered to allow a consumer to sample the flavor of the winery product.
Wine cooler—A beverage made from combining wine with a non-alcoholic beverage, such as fruit juice or a carbonated beverage, resulting in a beverage with lower alcohol by volume than the original wine. The term does not include a malt or brewed beverage.
Winery products—Alcoholic products including alcoholic cider, fermented fruit beverages, mead, wine and wine coolers that have been produced by the limited winery.§ 5.402. Tasting samples.
(a) A limited winery may provide tasting samples of winery products in accordance with section 505.2(a) of the Liquor Code (47 P.S. § 5-505.2(a)) and § 13.211 (relating to tasting events). To the extent possible, section 505.2 of the Liquor Code and § 13.211 shall be construed together. When there is a conflict between these two sections, including with regard to locations where tasting samples may be provided, the volume of each tasting sample that may be provided and whether a fee may be charged for a tasting sample, the provisions of section 505.2 of the Liquor Code shall prevail.
(b) Tasting samples may not be provided at a limited winery’s storage facilities since only the limited winery and its employees may be present at those locations, in accordance with section 505.2(a)(6.4) of the Liquor Code.
§ 5.403. Sales generally.
(a) A limited winery may sell winery products during the time periods or circumstances set forth in section 505.2(a)(6.3) of the Liquor Code (47 P.S. § 5-505.2(a)(6.3)).
(b) A limited winery may accept all of the following methods of payment:
(1) From licensees: checks drawn on their account, cash, money orders, cashier checks, debit cards and electronic funds transfers.
(2) From unlicensed individuals: all of the methods of payment listed in paragraph (1) and credit cards issued by banking or financial institutions subject to Federal or State regulations.
(c) A limited winery that manufactures alcoholic cider, fermented fruit beverages and mead, which are defined as ‘‘malt or brewed beverages’’ in section 102 of the Liquor Code (47 P.S. § 1-102), must register these brands with the Board as required under section 445 of the Liquor Code (47 P.S. § 4-445). The following apply:
(1) A limited winery may self-distribute alcoholic cider, fermented fruit beverages and mead to importing distributors, distributors or any other licensee that is authorized under the Liquor Code to sell, possess or store malt or brewed beverages.
(2) A limited winery may choose to grant territorial distribution rights and name a distributor or an importing distributor as the primary or original supplier of the product in accordance with section 431(b) of the Liquor Code (47 P.S. § 4-431(b)).
(d) A limited winery may not sell wine or wine coolers to importing distributors, distributors, retail dispensers or any other licensee that is not authorized under the Liquor Code to sell, possess or store any alcoholic beverages other than malt or brewed beverages.
§ 5.404. Sales for on-premises consumption.
(a) A limited winery may sell winery products on the licensed premises and at additional Board-approved locations in accordance with the Liquor Code and this part. Sales of winery products for on-premises consumption may be made by the glass, bottle or any other open or closed container.
(b) A limited winery may sell, only for on-premises consumption, malt or brewed beverages and liquor produced by Pennsylvania-licensed manufacturers, under section 505.2(a)(6.1) of the Liquor Code (47 P.S. § 5-505.2(a)(6.1)).
(c) A limited winery that chooses to sell malt or brewed beverages through a malt or brewed beverage dispensing system, defined in § 5.50 (relating to definition), must comply with § § 5.51—5.54.
(d) A limited winery that chooses to sell wine or wine coolers through a wine dispensing system must comply with § 11.103 (relating to dispensing system sanitation).
§ 5.405. Sales for off-premises consumption.
(a) A limited winery may sell winery products for off-premises consumption as permitted under section 505.2(a) of the Liquor Code (47 P.S. § 5-505.2(a)).
(b) A limited winery may accept orders for the purchase of its winery products in person or through mail, telephone or the Internet. A limited winery shall make deliveries of winery products in accordance with § 5.407 (relating to delivery of products).
(c) A limited winery may employ individuals, known as agents, to solicit orders for winery products or promote the sale of winery products. The following apply:
(1) Agents may only advertise and promote the sale of winery products produced by the limited winery that has employed the agent. Agents may solicit orders from licensees and make deliveries on behalf of the limited winery in accordance with § 5.407.
(2) Agents may only sell, as that word is defined under section 102 of the Liquor Code (47 P.S. § 1-102), the limited winery’s products on the limited winery’s licensed premises, additional Board-approved location or a location that is covered by the limited winery’s wine exposition permit or farmer’s market permit.
(d) Under section 505.2(a)(4) of the Liquor Code, a limited winery may obtain a permit to participate in alcoholic cider, fermented fruit beverages, mead, wine and food expositions off the licensed premises. The following apply:
(1) Only the limited winery, including its employees and agents, may sell its winery products at a wine and food exposition.
(2) Sales of the limited winery’s products must occur on a location within the exposition that is covered by the limited winery’s wine exposition permit.
(e) Under section 505.2(a)(4.1) of the Liquor Code, a limited winery may obtain a permit to participate in one or more farmers’ markets at any given time and an unlimited number throughout the year. The following apply:
(1) Only the limited winery, including its employees and agent, may sell its winery products at a farmers market.
(2) Sales of the limited winery’s products must occur on a location within the farmers market that is covered by the limited winery’s farmers market permit.
§ 5.406. Sales of other items.
(a) In addition to the sale of food, wine-scented or liquor-scented candles, and any other item authorized under section 505.2(a) of the Liquor Code (47 P.S. § 5-505.2(a)), the following items are permitted to be offered for sale on the licensed premises and at additional Board-approved locations:
(1) Home winemaking, cider making, fermented fruit beverage making or mead making equipment, or both, and supplies.
(2) Serving and storage accessories as follows: cork removers, wine glasses and decanters, wine racks, serving baskets and buckets and bottle stoppers.
(3) Publications dealing with wine and winemaking, alcoholic cider and cider making, fermented fruit beverages and fermented fruit beverage making, and mead and mead making.
(4) Promotional items advertising the limited winery including tee shirts, glassware, caps and the like.
(b) If a limited winery wants to sell on the licensed premises or additional Board-approved location an item that is not listed in subsection (a), the limited winery shall request, in writing, Board approval to sell that item. The Board will advise the limited winery, in writing, whether approval to sell the item is granted, with or without conditions, or denied.
§ 5.407. Delivery of products.
(a) The only winery products a limited winery is authorized to deliver are those it has produced. A limited winery may not deliver any liquor or malt or brewed beverages, as those terms are defined in section 102 of the Liquor Code (47 P.S. § 1-102), that were manufactured by another entity. The following apply:
(1) A limited winery shall ensure that winery products sold and delivered to points within this Commonwealth are sealed in original containers and labeled as required by applicable law.
(2) A limited winery may deliver food or other non-alcoholic items that have already been purchased by the customer. A limited winery may not offer for sale items from the delivery vehicle.
(3) A limited winery shall include with the delivery of any winery products a sales receipt in accordance with § 5.409(b) (relating to records, receipts and reports).
(b) A limited winery may utilize its own vehicle to deliver its winery products. The following apply:
(1) A limited winery’s vehicle must be identified in accordance with § 9.22 (relating to identification of vehicles).
(2) A limited winery may utilize the same vehicle to deliver alcoholic cider, fermented fruit beverages or mead as well as wine or wine coolers.
(c) A limited winery may utilize a transporter-for-hire licensee to deliver its winery products. The following apply:
(1) Alcoholic cider, fermented fruit beverages and mead may be delivered by a transporter-for-hire Class A, B or C, in accordance with § § 9.1 and 9.11 (relating to definitions; and transportation-for-hire).
(2) Wine or wine coolers must be delivered by a transporter-for-hire Class A or Class C, but may not be delivered by a Transporter-for-Hire Class B, in accordance with § § 9.1 and 9.11.
(d) Prior to delivering wine or wine coolers to an unlicensed individual in this Commonwealth, a limited winery shall obtain a direct wine shipping license under section 488 of the Liquor Code (47 P.S. § 4-488). The following apply:
(1) A direct wine shipping license is required whether the delivery of wine or wine coolers is accomplished by the limited winery or by a transporter-for-hire.
(2) A direct wine shipping license is not required for the lawful delivery of wine or wine coolers to another licensee, or for the lawful delivery of alcoholic cider, fermented fruit beverages or mead.
(e) It is the limited winery’s responsibility to ensure that its winery products are not delivered to minors or visibly intoxicated persons and that proper receipts are provided under § 5.409.
Cross References This section cited in 40 Pa. Code § 5.405 (relating to sales for off-premises consumption); and 40 Pa. Code § 5.409 (relating to records, receipts and reports).
§ 5.408. Additional Board-approved locations.
(a) A limited winery may not use additional locations, as authorized under section 505.2(a)(3) of the Liquor Code (47 P.S. § 5-505.2(a)(3)), in the operation of a licensed business unless the additional location is approved by the Board.
(b) Applications and fees are as follows:
(1) A limited winery seeking Board approval of an additional location shall submit an application to the Board, accompanied by payment of a $220 fee. Board approval is valid for that calendar year.
(2) If a limited winery wants to continue use of the additional Board-approved location, it shall submit a renewal application on an annual basis, accompanied by payment of a $75 fee.
(c) If the additional location requires physical alterations or new construction, the Board may grant prior approval for the additional location, as similarly provided in section 403(a) of the Liquor Code (47 P.S. § 4-403(a)). The limited winery may not produce or sell any winery products at the location until the additional location has been re-inspected and the Board has approved the completed alterations or construction and issued the limited winery a license for the additional location.
(d) Portions of an additional Board-approved location must be contiguous.
(e) The licensed premises and any additional Board-approved locations of a limited winery are subject to the following regulations:
(1) § 3.51 (relating to connection with residence);
(2) § 3.52 (relating to connection with other business);
(3) § 3.53 (relating to restriction on storage and sales where Board has approved connection with other business); and
(4) § 3.54 (relating to separation between licensed premises and other business).
(f) The limited winery shall appoint a manager for each additional Board-approved location in accordance with § 5.23 (relating to appointment of managers).
(g) Additional Board-approved locations of a limited winery license shall be enclosed by soundly constructed walls, with controlled points of access and egress directly accessible to the general public. The application shall be subject to the provisions of section 468(e)(2) of the Liquor Code (47 P.S. § 4-468(e)(2)).
(h) A limited winery shall provide Board officers who are conducting licensing investigations of additional locations with all of the following:
(1) Leases or other evidence of the right to occupy the premises.
(2) Management agreements.
(3) Employee agreements.
(4) Commission agreements.
(5) Other agreements the Board may deem necessary.
(i) The Board may grant permission for two or more limited wineries to share a single, additional Board-approved location, in accordance with section 505.2(a)(3) of the Liquor Code.
(j) The Board shall not grant permission for a limited winery and another manufacturer, such as a brewery, limited distillery or distillery, to share a single, additional Board-approved location.
(k) If a limited winery licensee holds, under identical ownership, a manufacturing license other than a limited winery license, such as a brewery, limited distillery or distillery license, each licensee may have an additional Board-approved location at the same property, but each licensee shall have its own separate designated area at the property.
(l) If a limited winery discontinues use of an additional Board-approved location, it shall notify the Board within 15 days of the discontinuance.
§ 5.409. Records, receipts and reports.
(a) A limited winery shall maintain and keep on the licensed premises daily permanent records that shall conform to the requirements of section 512 of the Liquor Code (47 P.S. § 5-512). The following apply:
(1) The records shall include complete details concerning the source of any agricultural commodity, as that term is defined in section 505.2(c) of the Liquor Code (47 P.S. § 5-505.2(c)), used in the production of limited winery products.
(2) Electronic media recordkeeping, maintained and based upon generally accepted accounting principles, may be kept instead of hard copy records.
(3) The recordkeeping system utilized by the limited winery shall have the capability to provide for the reconciling of required data.
(4) Entries shall be verifiable by supporting original documents.
(b) In addition to the records prescribed in subsection (a), the limited winery shall prepare a sales receipt at the licensed premises for each sale to a private individual when the purchase is for greater than 16 liters in a single transaction. The sales receipt shall include all of the following:
(1) The name and address of the limited winery.
(2) The name and address of the recipient of the winery products if the winery products are being delivered off the licensed premises to the recipient.
(3) The winery products’ name, the date of sale, the size of the package in milliliters, number of units sold, the price per unit of the winery products, the Commonwealth sales tax and any other taxes applicable and the total amount paid by the customer.
(4) Items other than winery products that are sold by the limited winery, which shall be listed on the receipt separately from the winery products.
(c) Winery products that are delivered shall be accompanied by two copies of a sales receipt that includes the information identified in subsection (b)(1)—(4). The limited winery shall require the person who is delivering the winery products to obtain the signature of the recipient, 21 years of age or older, on one copy of the sales receipt.
(1) The person delivering the winery products shall give an unsigned copy of the sales receipt to the recipient of the winery products and the limited winery licensee, or a transporter-for-hire acting on behalf of a limited winery licensee, shall retain the signed copy of the sales receipt on the licensed premises for 2 years.
(2) Delivery shall be accomplished in accordance with § 5.407 (relating to delivery of products).
(d) A limited winery shall file reports, in the manner set forth by the Board, covering operations of their licensed business during the preceding calendar year. The following apply:
(1) The reports shall be signed and sworn to by the limited winery or his authorized agent and shall be filed with the Board at the time of the renewal or validation of the license. The following apply:
(i) A copy of each report shall be retained on the licensed premises for at least 2 years from the date of filing.
(ii) Failure to file the reports will preclude the Board from renewing or validating the license in question.
(2) These reports are in addition to information or reports the limited winery may be required to provide to the Department of Agriculture under 3 Pa.C.S. Chapter 45 (relating to Agricultural Commodities Marketing Act) and regulations promulgated thereunder, including 7 Pa. Code § 104.75 (relating to accounting and payment), as well as any reports required under section 488.1 of the Liquor Code (47 P.S. § 4-488.1).
Cross References This section cited in 40 Pa. Code § 5.407 (relating to delivery of products).
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