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picnic, bazaar, or festival held by it, or any person
making sales of distilled spirits, wine or beer to the
members, guests, or patrons of bona fide fairs, re-
unions, picnics, carnivals, or other similar outings, if
such organization or person is not otherwise engaged
in business as a dealer.
‘‘(4) DEALER.—The term ‘dealer’ has the mean-
ing given such term by section 5121(c)(3).’’.
(7) Section 5146 is moved to subpart C of part
II of subchapter A of chapter 51, inserted after section
5122, and redesignated as section 5123.
(8) Subpart C of part II of subchapter A of
chapter 51, as amended by paragraph (7), is amended
by adding at the end the following new section:
‘‘SEC. 5124. REGISTRATION BY DEALERS.
‘‘Every dealer who is subject to the recordkeeping re-
quirements under section 5121 or 5122 shall register with
the Secretary such dealer’s name or style, place of residence,
trade or business, and the place where such trade or busi-
ness is to be carried on. In case of a firm or company, the
names of the several persons constituting the same, and the
places of residence, shall be so registered.’’.
(9) Section 7012 is amended by redesignating
paragraphs (4) and (5) as paragraphs (5) and (6),
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respectively, and by inserting after paragraph (3) the
following new paragraph:
‘‘(4) For provisions relating to registration by
dealers in distilled spirits, wines, and beer, see section
5124.’’.
(10) Part II of subchapter A of chapter 51 is
amended by inserting after subpart C the following
new subpart:
‘‘Subpart D—Other Provisions
‘‘Sec. 5131. Packaging distilled spirits for industrial uses.
‘‘Sec. 5132. Prohibited purchases by dealers.’’.
(11) Section 5116 is moved to subpart D of part
II of subchapter A of chapter 51, inserted after the
table of sections, redesignated as section 5131, and
amended by inserting ‘‘(as defined in section
5121(c))’’ after ‘‘dealer’’ in subsection (a).
(12) Subpart D of part II of subchapter A of
chapter 51 is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 5132. PROHIBITED PURCHASES BY DEALERS.
‘‘(a) IN GENERAL.—Except as provided in regulations
prescribed by the Secretary, it shall be unlawful for a dealer
to purchase distilled spirits for resale from any person other
than a wholesale dealer in liquors who is required to keep
the records prescribed by section 5121.
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‘‘(b) LIMITED RETAIL DEALERS.—A limited retail
dealer may lawfully purchase distilled spirits for resale
from a retail dealer in liquors.
‘‘(c) PENALTY AND FORFEITURE.—
‘‘For penalty and forfeiture provisions applicable to violations of subsection (a),
see sections 5687 and 7302.’’.
(13) Subsection (b) of section 5002 is amended—
(A) by striking ‘‘section 5112(a)’’ and in-
serting ‘‘section 5121(c)(3)’’,
(B) by striking ‘‘section 5112’’ and insert-
ing ‘‘section 5121(c)’’,
(C) by striking ‘‘section 5122’’ and insert-
ing ‘‘section 5122(c)’’.
(14) Subparagraph (A) of section 5010(c)(2) is
amended by striking ‘‘section 5134’’ and inserting
‘‘section 5114’’.
(15) Subsection (d) of section 5052 is amended
to read as follows:
‘‘(d) BREWER.—For purposes of this chapter, the term
‘brewer’ means any person who brews beer or produces beer
for sale. Such term shall not include any person who pro-
duces only beer exempt from tax under section 5053(e).’’.
(16) The text of section 5182 is amended to read
as follows:
‘‘For provisions requiring recordkeeping by wholesale liquor dealers, see sec-
tion 5112, and by retail liquor dealers, see section 5122.’’.
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(17) Subsection (b) of section 5402 is amended
by striking ‘‘section 5092’’ and inserting ‘‘section
5052(d)’’.
(18) Section 5671 is amended by striking ‘‘or
5091’’.
(19)(A) Part V of subchapter J of chapter 51 is
hereby repealed.
(B) The table of parts for such subchapter J is
amended by striking the item relating to part V.
(20)(A) Sections 5142, 5143, and 5145 are
moved to subchapter D of chapter 52, inserted after
section 5731, redesignated as sections 5732, 5733, and
5734, respectively, and amended by striking ‘‘this
part’’ each place it appears and inserting ‘‘this sub-
chapter’’.
(B) Section 5732, as redesignated by subpara-
graph (A), is amended by striking ‘‘(except the tax
imposed by section 5131)’’ each place it appears.
(C) Paragraph (2) of section 5733(c), as redesig-
nated by subparagraph (A), is amended by striking
‘‘liquors’’ both places it appears and inserting ‘‘to-
bacco products and cigarette papers and tubes’’.
(D) The table of sections for subchapter D of
chapter 52 is amended by adding at the end the fol-
lowing:
‘‘Sec. 5732. Payment of tax.
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‘‘Sec. 5733. Provisions relating to liability for occupational taxes.
‘‘Sec. 5734. Application of State laws.’’.
(E) Section 5731 is amended by striking sub-
section (c) and by redesignating subsection (d) as sub-
section (c).
(21) Subsection (c) of section 6071 is amended
by striking ‘‘section 5142’’ and inserting ‘‘section
5732’’.
(22) Paragraph (1) of section 7652(g) is
amended—
(A) by striking ‘‘subpart F’’ and inserting
‘‘subpart B’’, and
(B) by striking ‘‘section 5131(a)’’ and in-
serting ‘‘section 5111’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on July 1, 2008, but shall not apply
to taxes imposed for periods before such date.
SEC. 5232. MODIFICATION OF LIMITATION ON RATE OF RUM
EXCISE TAX COVER OVER TO PUERTO RICO
AND VIRGIN ISLANDS.
(a) IN GENERAL.—Section 7652(f)(1) (relating to lim-
itation on cover over of tax on distilled spirits) is amended
by inserting ‘‘, and $13.50 in the case of distilled spirits
brought into the United States after December 31, 2005,
and before January 1, 2007’’ after ‘‘2006’’.
(b) SPECIAL RULE.—
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(1) IN GENERAL.—After December 31, 2005, and
before January 1, 2007, the Commonwealth of Puerto
Rico shall make a Conservation Trust Fund transfer
from the treasury of Puerto Rico within 30 days from
the date of each cover overpayment to such treasury
under section 7652(e) of the Internal Revenue Code of
1986.
(2) CONSERVATION TRUST FUND TRANSFER.—
(A) IN GENERAL.—For purposes of this sub-
section, the term ‘‘Conservation Trust Fund
transfer’’ means a transfer to the Puerto Rico
Conservation Trust Fund of an amount equal to
50 cents per proof gallon of the taxes imposed
under section 5001 or section 7652 of such Code
on distilled spirits that are covered over to the
treasury of Puerto Rico under section 7652(e) of
such Code.
(B) TREATMENT OF TRANSFER.—Each Con-
servation Trust Fund transfer shall be treated as
principal for an endowment, the income from
which to be available for use by the Puerto Rico
Conservation Trust Fund for the purposes for
which the Trust Fund was established.
(C) RESULT OF NONTRANSFER.—