PROPOSED RULEMAKING
LIQUOR CONTROL BOARD
[ 40 PA. CODE CH. 11 ]
Purchases, Sales and Returns; General Provisions
[51 Pa.B. 1997]
[Saturday, April 10, 2021]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 §§ 11.1 and 11.3—11.5 to read as set forth in Annex A.
Summary
The Board submits this proposed rulemaking to update its regulations in Chapter 11 (relating to purchases, sales and returns). This proposed rulemaking is undertaken as part of a larger effort to update the Board's regulations. The intent behind this proposed rulemaking is to eliminate outdated provisions in Chapter 11 to provide streamlined regulations for the regulated community.
Section 11.1 (relating to definitions) includes two definitions: ''Manufacturer'' and ''State, territory or county of origin.'' The first sentence for ''Manufacturer'' is left unchanged. The second sentence is proposed to be deleted, since it modifies the definition of ''Manufacturer'' for Subsection L, which no longer exists. The definition of ''state, territory or county of origin'' is proposed to be deleted, since this phrase does not appear anywhere in the Board's regulations.
Section 11.3 (relating to sales at retail) is proposed to be amended in the title so that the new title of the section is ''Sales of ethyl alcohol at retail.'' This new title more accurately reflects the contents of the section after subsection (b) is deleted. Subsection (b) is proposed to be deleted because ethyl alcohol is no longer procured by the special order process. Subsection (a) accurately describes the process for obtaining ethyl alcohol at retail.
Section 11.4 (relating to sales at wholesale) is proposed to be amended in the title so that the new title of the section is ''Sales at wholesale for United States Armed Forces facilities.'' This new title more accurately reflects the contents of the section after subsections (a) and (b) are deleted. Subsections (a) and (b) are proposed to be deleted because ethyl alcohol is no longer procured by the process described in these subsections. The current process is set forth in § 11.33 (relating to purchase of alcohol by AN and AE permittees).
Section 11.5 (relating to issuance of wholesale liquor purchase permit cards) is proposed to be amended to delete, in subsection (a), the phrase ''if the retail cost of the order is $50 or more.'' By deleting this phrase, a retail liquor licensee or a United States Armed Forces facility will be able to obtain all liquor purchases—not just those that cost $50 or more—at the discounted rate allowed by the wholesale liquor purchase permit card. This amendment was requested by the Pennsylvania Tavern Association.
In addition, § 11.5 is proposed to be amended by the deletion of subsection (b). This subsection describes a special form of Wholesale Liquor Purchase Permit Card that is issued to pharmacists, State-owned institutions and to certain manufacturers of nonbeverage products. The type of card issued to these entities is called a Wholesale Alcohol Purchase Permit Card, and its use is covered in §§ 11.21—11.23 (relating to wholesale alcohol purchase permits). Since the information in this subsection is superfluous, it is being deleted.
Affected Parties
The affected parties include those retail licensees and United States Armed Forces facilities that will be entitled to a discount on every purchase of liquor with their Wholesale Liquor Purchase Permit Card. As of November 19, 2020, there were approximately 13,165 of these licensees.
Paperwork Requirements
This proposed rulemaking does not impose any new paperwork requirements on licensees.
Fiscal Impact
This proposed rulemaking will have a positive impact on licensees, since it removes a minimum purchase requirement before licensees may receive a 10% licensee discount.
Effective Date
This proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.
Public Comments
Interested persons are invited to submit written comments about this proposed rulemaking to Rodrigo Diaz, Chief Counsel, Jason M. Worley, Deputy Chief Counsel, or Norina Foster, Assistant Counsel, Office of Chief Counsel, Liquor Control Board, by e-mail at ra-lblegal@pa.gov, within 30 days after publication of this proposed rulemaking in the Pennsylvania Bulletin. When commenting, individuals should indicate if they wish to be apprised of future developments regarding this proposed rulemaking, and include a name, address and e-mail address. Comments submitted by facsimile will not be accepted.
Public comments will be posted on the Independent Regulatory Review Commission's (IRRC) web site. Personal information will not be redacted from the public comments received.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on March 10, 2021, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to 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 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 in section 5.2 of the Regulatory Review Act (71 P.S. § 745.5b) 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.
TIM HOLDEN,
ChairpersonFiscal Note: 54-102. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 40. LIQUOR
PART I. LIQUOR CONTROL BOARD
CHAPTER 11. PURCHASES, SALES AND RETURNS
Subchapter A. GENERAL PROVISIONS
RETAIL AND WHOLESALE PURCHASE—GENERAL § 11.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Manufacturer—A person engaged in the manufacture, rectification or compounding of liquors, other than wines, or an agent or representative of the manufacturer. [The term, as it relates to Subchapter L (relating to manner of changing prices of malt or brewed beverages), is any entity licensed for and engaged in the manufacture of malt or brewed beverages within this Commonwealth or elsewhere.
State, territory or county of origin—The place where liquors other than wines offered for sale to the Board are manufactured, rectified or compounded for the market.]
§ 11.3. Sales of ethyl alcohol at retail.
[(a)] State liquor stores may stock ethyl alcohol, 190 proof, for retail sales subject to the following:
(1) An individual or entity desiring to purchase ethyl alcohol shall file an application on forms provided by the Board.
(2) The Board may approve the application of an individual or entity who swears or affirms that the alcohol will be purchased for nonpotable use only.
[(b) Special orders are subject to the following:
(1) Special orders for ethyl alcohol shall be accepted for a minimum quantity of one case of 24 pints or one case of 12 quarts.
(2) Special orders of absolute ethyl alcohol, 200 proof, shall be accepted for a minimum quantity of 1 gallon.
(3) Special orders require a deposit of at least 25% of the selling price at the time of placing an order. The name of the manufacturer shall also be furnished.]
§ 11.4. Sales at wholesale for United States Armed Forces facilities.
[(a) The Board may keep in stock ethyl alcohol in 2 gallon containers, which will be priced at net wholesale, available only to holders of Wholesale Alcohol Purchase Permit Cards. There will also be available to holders of the cards, the containers which are carried in regular stock, at net wholesale permittee prices.
(b) Special orders are subject to the following:
(1) Special orders may be placed at State Liquor Stores by holders of Wholesale Alcohol Purchase Permit Cards for a minimum quantity of 1 gallon of absolute ethyl alcohol and ethyl alcohol in standard case quantities.
(2) A special order will not be accepted for a brand of alcohol sold as stock merchandise in the same size containers.
(3) Special orders require a deposit of at least 25% of the selling price at the time of placing an order. The name of the manufacturer shall also be furnished.
(c)] Under section 305(b) of the Liquor Code (47 P.S. § 3-305(b)), wholesale sales of liquor may be made to a United States Armed Forces facility which is located on a United States Armed Forces installation within this Commonwealth. The sales shall be conducted under the authority and regulations of the United States Armed Forces. The sales shall be made under terms and conditions agreed upon by the Board and United States Armed Forces facility representatives.
(1) The Board may accept checks in payment for sales of liquor to a United States Armed Forces facility under terms and conditions as the Board deems appropriate.
(2) Direct delivery of liquor to a United States Armed Forces facility may be accomplished under terms set forth by the Board.
§ 11.5. Issuance of Wholesale Liquor Purchase Permit Cards.
[(a)] As evidence of the privilege given to a retail liquor licensee and a United States Armed Forces facility to purchase liquor from State Liquor Stores at wholesale, the Board will issue to the licensee and a United States Armed Forces facility a Wholesale Liquor Purchase Permit Card, which allows the purchase of liquors at wholesale [if the retail cost of the order is $50 or more].
[(b) Special forms of Wholesale Liquor Purchase Permit Cards issued to pharmacists registered under the statutes of the Commonwealth to hospitals, State-owned institutions and to certain manufacturers of nonbeverage products, will allow the purchase, at wholesale of liquors listed on the card.]
[Pa.B. Doc. No. 21-563. Filed for public inspection April 9, 2021, 9:00 a.m.]
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