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PROPOSED RULEMAKING

[ 40 PA. CODE CH. 11 ]

Sale by Limited Winery Licensees

[43 Pa.B. 5826]
[Saturday, October 5, 2013]

 The Liquor Control Board (Board), under the authority of section 207(i) of the Liquor Code (47 P. S. § 2-207(i)), proposes to amend § 11.111 (relating to sale by limited winery licensees).

Summary

 The proposed rulemaking will amend § 11.111 by deleting the prohibition on limited wineries selling a specific code of wine listed for sale by the Board as a stock item at a price lower than that charged by the Board.

 The act of July 31, 1968 (P. L. 902, No. 272) first authorized the Board to issue licenses to limited wineries. License holders could produce no more than 50,000 gallons of wine per year and could sell their wines directly to the Board, licensees and the general public. In 1982, the Board amended § 11.111(a)(10) to prohibit a limited winery from selling a specific code of wine which is listed for sale as a stock item by the Board at a price which is lower than that charged by the Board. The proposed rulemaking would delete § 11.111(a)(10) to allow licensed limited wineries to sell a specific code of wine at a price which is lower than the Board's price for the same code. This proposed amendment will benefit licensed limited wineries, who may be able to sell their wines at lower prices than the Board, as they are not subject to the same mark-up and taxes.

Affected Parties

 Approximately 254 limited wineries currently licensed by the Board, of which 210 are currently active, will affected by this proposed rulemaking. The limited wineries will have increased pricing flexibility as a result of the proposed rulemaking. However, a licensee will not be required to take action due to this proposed rulemaking.

Paperwork Requirements

 The Board does not anticipate that this proposed rulemaking will affect the amount of paperwork or administrative costs of the regulated community.

Fiscal Impact

 The Board does not anticipate that this proposed rulemaking will have any adverse fiscal impact on the regulated community, since licensed limited wineries will have increased pricing flexibility. A licensee will not be required to take any action due to this change.

 This proposed rulemaking is not expected to have a substantial adverse fiscal impact on State and local governments, although there may be a nominal fiscal impact on Board revenues if increased licensed limited winery sales lead to reduced sales by the Board.

Effective Date

 This proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.

Public Comment/Contact Person

 Written comments, suggestions or objections will be accepted for 30 days after publication of the proposed rulemaking in the Pennsylvania Bulletin. Comments should be addressed to Alan Kennedy-Shaffer, Assistant Counsel, or Rodrigo Diaz, Executive Deputy Chief Counsel, Office of Chief Counsel, Liquor Control Board, Room 401, Northwest Office Building, Harrisburg, PA 17124-0001.

Regulatory Review

 Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 24, 2013, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Liquor Control Committee and the Senate Law and Justice Committee. A copy of this material is available to the public upon request.

 Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.

JOSEPH E. BRION, 
Chairperson

Fiscal Note: 54-76. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 40. LIQUOR

PART I. LIQUOR CONTROL BOARD

CHAPTER 11. PURCHASES AND SALES

Subchapter C. WINES

LIMITED WINERIES

§ 11.111. Sale by limited winery licensees.

 (a) A limited winery licensee, licensed under § 3.62 (relating to creation), may sell wines produced on the licensed premises in accordance with the Liquor Code and this part, under the conditions in this subsection.

*  *  *  *  *

 (10) [A specific code of wine which is listed for sale as a stock item by the Board in State Liquor Stores may not be offered for sale at a licensed winery location at a price which is lower than that charged by the Board.

(11)] Mail or telephone orders may be accepted. Delivery of products shall be accomplished through the use of vehicles properly registered by the limited winery licensees or through properly licensed transporters. It is the responsibility of the limited winery licensee to insure that wine is not delivered to minors and that proper invoices are maintained under § 5.103 (relating to limited wineries).

*  *  *  *  *

[Pa.B. Doc. No. 13-1853. Filed for public inspection October 4, 2013, 9:00 a.m.]



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