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PA Bulletin, Doc. No. 96-736

NOTICES

INDEPENDENT REGULATORY REVIEW COMMISSION

Actions Taken by the Commission

[26 Pa.B. 2134]

   The Independent Regulatory Review Commission met publicly at 11 a.m., Thursday, April 18, 1996, and took the following actions:

Regulation Approved:

   Pennsylvania Liquor Control Board #54-47: Events/Tournaments/Contests (amends 40 Pa. Code Chapter 5)

Commissioners Present:  John R. McGinley, Jr., Chairperson; Robert J. Harbison, III, Vice Chairperson; Arthur Coccodrilli; John F. Mizner; Irvin G. Zimmerman

Public meeting held
April 18, 1996

Liquor Control Board--Events/Tournaments/Contests; Doc. No. 54-47

Order

   On December 21, 1995, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Liquor Control Board (LCB). This rulemaking would amend 40 Pa. Code Chapter 5 by removing some restrictions on the sponsorship of events, tournaments or contests at licensed premises. The authority for this regulation is contained in section 207 of the Pennsylvania Liquor Code (47 P. S. § 2-207). The proposed regulation was published in the January 6, 1996 edition of the Pennsylvania Bulletin with a 30-day comment period. The final-form regulation was submitted to the Commission on March 20, 1996.

   This regulation is a result of a request from the Pennsylvania Licensed Beverage Association to modify some of the restrictions currently placed on a licensee's ability to sponsor an event, tournament or contest. The LCB's current regulations limit the activities that a licensee may sponsor. For example, a restaurant or tavern cannot currently hold a special contest/event where prizes are awarded without the event being associated with a bona fide charity and the revenue generated from the event (outside any food or beverage revenue) going to the charity. The proposed regulation will allow a licensee to sponsor an event or contest and award prizes to the winners without being associated with a charity. However, the total value of the prizes that are awarded cannot exceed a cash value of $500 for one contest or a total value of $5,000 in any 7-day period.

   The proposed amendments will also allow hotels, restaurants, privately-owned public golf courses, privately-owned private golf courses, municipal golf courses, brew pubs and malt beverage eating places to conduct a self-sponsored tournament, event or contest and award prizes for the tournament, event or contest. Additionally, governing bodies of professional golf, tennis, skiing and bowling will be allowed to hold events, tournaments or contests on licensed premises. The regulations do not include a limitation on prizes that may be awarded for these events.

   We submitted a comment on the proposed rulemaking recommending the LCB include the specific prize limitations in the regulation instead of simply referencing the Small Games of Chance Act. In response, the LCB agreed with our comment and amended the regulation to provide that the total value of all prizes for any given event, tournament or contest shall not exceed $500 and that the total value of all prizes awarded in any 7-day period may not exceed $5,000.

   We have reviewed this regulation and find it to be in the public interest. The regulation will allow licensees increased business opportunities by permitting licensees to sponsor events, tournaments and contests. Furthermore, we commend the LCB for responding to the request of the Pennsylvania Licensed Beverage Association in a prompt manner.

Therefore, It Is Ordered That:

   1.  Regulation No. 54-47 from the Pennsylvania Liquor Control Board, as submitted to the Commission on March 20, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

JOHN R. MCGINLEY, Jr.,   
Chairperson

[Pa.B. Doc. No. 96-736. Filed for public inspection May 3, 1996, 9:00 a.m.]


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