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PA Bulletin, Doc. No. 14-436

RULES AND REGULATIONS

Title 40—LIQUOR

LIQUOR CONTROL BOARD

[ 40 PA. CODE CH. 11 ]

Sale by Limited Winery Licensees

[44 Pa.B. 1233]
[Saturday, March 1, 2014]

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

Summary

 The final-form rulemaking amends § 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 was lower than that charged by the Board. This final-form rulemaking deletes former § 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 final-form rulemaking will benefit licensed limited wineries who may be able to sell their wines at lower prices than the Board.

Response to Comments

 On December 4, 2013, the Independent Regulatory Review Commission (IRRC) notified the Board, House Liquor Control Committee and the Senate Law and Justice Committee that it did not have objections, comments or recommendations to offer on the proposed rulemaking.

Affected Parties

 Approximately 262 limited wineries licensed by the Board, of which 226 are currently active, will have increased pricing flexibility as a result of this final-form rulemaking. A licensee will not be required to take action due to this final-form rulemaking.

Paperwork Requirements

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

Fiscal Impact

 The Board does not anticipate that this final-form rulemaking will have 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 final-form 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 final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.

Contact Person

 Questions regarding this final-form should be addressed to Norina Blynn, 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 the notice of proposed rulemaking, published at 43 Pa.B. 5826 (October 5, 2013), to IRRC and the Chairpersons of the House Liquor Control Committee and the Senate Law and Justice Committee for review and comment.

 Under section 5(c) of the Regulatory Review Act, IRRC and the House and Senate Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Board considered all comments from IRRC, the Chairpersons of the House and the Senate Committees and the public.

 Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on January 15, 2014, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5(g) of the Regulatory Review Act, the final-form rulemaking was deemed approved by IRRC effective January 16, 2014.

Findings

 The Board finds that:

 (1) Public notice of intention to adopt the administrative amendments adopted by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.

 (2) The amendments to the Board's regulations in the manner provided in this order are necessary and appropriate for the administration of the Liquor Code.

Order

 The Board, acting under authorizing statute, orders that:

 (a) The regulations of the Board, 40 Pa. Code Chapter 11, are amended by amending § 11.111 to read as set forth at 43 Pa.B. 5826.

 (b) The Board shall certify this order and 43 Pa.B. 5826 and deposit them with the Legislative Reference Bureau as required by law.

 (c) This order shall become effective upon publication in the Pennsylvania Bulletin.

JOSEPH E. BRION, 
Chairperson

 (Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 44 Pa.B. 751 (February 1, 2014).)

 Fiscal Note: Fiscal Note 54-76 remains valid for the final adoption of the subject regulation.

[Pa.B. Doc. No. 14-436. Filed for public inspection February 28, 2014, 9:00 a.m.]


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