PROPOSED RULEMAKINGS
LIQUOR CONTROL BOARD
[ 40 PA. CODE CH. 11 ]
Sale by Licensed Limited Distilleries and Distilleries
[43 Pa.B. 2040]
[Saturday, April 13, 2013]The Liquor Control Board (Board), under the authority of sections 207(i) and 505.4 of the Liquor Code (47 P. S. §§ 2-207(i) and 5-505.4), proposes to add § 11.221 (relating to sale by licensed limited distilleries and distilleries).
Summary
The act of December 22, 2011 (P. L. 530, No. 113) (Act 113) made changes to numerous sections of the Liquor Code, including section 505.4, regarding distilleries. Under section 505.4 of the Liquor Code, the Board may issue, effective February 20, 2012, a limited distillery license that allows the holder to: operate a distillery that may not produce more than 100,000 gallons of distilled liquor per year; and sell bottled liquors produced on the licensed premises to the Board, to licensees and to the public.
This proposed rulemaking permits licensed limited distilleries and distilleries to deliver their products directly to consumers, retail licensees or the Board, similar to licensed limited wineries. While section 505.4 of the Liquor Code does not explicitly address the issue, legislative staff members have confirmed that the intent of Act 113 was to enable limited distillery and distillery licensees to have the same privileges as limited wineries. Toward that end, the licensed limited distillery language was modeled after section 505.2 of the Liquor Code (47 P. S. § 5-505.2), which allows the Board to issue limited winery licenses. Section 505.4 of the Liquor Code authorizes limited distillery and distillery licensees to sell their products to consumers, retail licensees and the Board and does not place constraints on the manner in which products are delivered. Therefore, this proposed rulemaking would promote clarity and reduce confusion as to whether limited distilleries and distilleries have privileges identical to limited wineries. Therefore, consistent with § 11.111 (relating to sale by limited winery licensees), this proposed rulemaking allows licensed limited distilleries and distilleries to deliver their products through the use of vehicles properly registered with the Board or through properly licensed transporters.
Affected Parties
The proposed rulemaking will affect licensed limited distilleries and distilleries. Currently, there are eight active and two pending limited distilleries licensed by the Board and two active distilleries licensed by the Board. Potentially affected parties licensed by the Board have been or will be given notice of this proposed rulemaking.
Paperwork Requirements
This proposed rulemaking is not expected to have adverse impact on the amount of paperwork required to be completed by the regulated community.
Fiscal Impact
This proposed rulemaking is not expected to have adverse fiscal impact on the regulated community or State and local governments. The proposed rulemaking is likely to have a positive fiscal impact on limited distilleries and distilleries, similar to that experienced by limited wineries.
Effective Date
This proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 27, 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 Senate Committee on Law and Justice. 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 Department, the General Assembly and the Governor of comments, recommendations or objections raised.
Contact Person
Written comments, suggestions or objections will be accepted for 30 days after publication of the proposed rulemaking in the Pennsylvania Bulletin and should be addressed to Rodrigo J. Diaz, Executive Deputy Chief Counsel, or Alan Kennedy-Shaffer, Assistant Counsel, Office of Chief Counsel, Liquor Control Board, Room 401, Northwest Office Building, Harrisburg, PA 17124-0001.
JOSEPH E. BRION,
ChairpersonFiscal Note: 54-73. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 40. LIQUOR
PART I. LIQUOR CONTROL BOARD
CHAPTER 11. PURCHASES AND SALES
Subchapter N. LICENSED LIMITED DISTILLERIES AND DISTILLERIES Sec.
11.221. Sale by licensed limited distilleries and distilleries. § 11.221. Sale by licensed limited distilleries and distilleries.
(a) A licensed limited distillery or distillery may sell on the licensed premises liquor produced on the premises in accordance with the Liquor Code and this title.
(b) Liquor produced by a licensed limited distillery or distillery may be shipped by common carrier or transporter-for-hire, as provided in Chapter 9, Subchapter A (relating to transportation of liquor, malt or brewed beverages or alcohol).
(c) A licensed limited distillery or distillery may accept checks drawn by the purchaser on his account, and from retail customers, credit cards issued by banking or financial institutions, subject to State or Federal regulations.
(d) Mail, Internet and telephone orders may be accepted. Delivery of products must be accomplished through the use of vehicles properly registered by the licensed limited distillery or distillery or through properly licensed transporters. It is the responsibility of the licensed limited distillery or distillery licensee to ensure that liquor is not delivered to minors and that proper invoices and records are maintained.
[Pa.B. Doc. No. 13-660. Filed for public inspection April 12, 2013, 9:00 a.m.]
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