DAR File No. 31279

Alcoholic Beverage Control, Administration

R81-1-11

Multiple-Licensed Facility Storage and Service

NOTICE OF PROPOSED RULE

DAR File No.: 31279
Filed: 04/28/2008, 04:31
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule has been reassessed and amendments are being proposed to more closely align the rule with statutory requirements.

Summary of the rule or change:

When mini bottles were outlawed in 1990, the Alcoholic Beverage Control (ABC) Commission wrote rules to guarantee that liquor would continue to be dispensed in a controlled manner. At that time, the commission recognized that some club and restaurant owners maintained two licensed establishments in the same building and conceded that it was reasonable to allow these operators to dispense liquor to the two licensed facilities from one central location. The Multiple-Licensed Facility Storage and Service rule was written to establish regulations for keeping the sales records in each adjoining facility separate. Upon recent assessment, the ABC Commission determined that some parts of this rule overreach what the statute requires and fulfill no legitimate purpose. For instance, though the statute requires isolating the sales of the two facilities, it does not require isolating the metered dispensing records of each facility. Also, the statute does not require that the owner of the two adjoining facilities file a separate application seeking permission to dispense from a central location. The commission proposes that these regulations be removed from the rule as now written.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--Licensees operating adjoining facilities are not charged additional fees for the opportunity to dispense liquor from a central location, nor is there a cost to the state for permitting this practice.

local governments:

None--Local governments do not regulate the liquor dispensing procedures of licensees.

small businesses and persons other than businesses:

None--The amendments to this rule are of a housekeeping nature and actually make compliance with dispensing requirements easier for licensees. Persons other than businesses are not affected by this rule since they do not dispense alcoholic beverages.

Compliance costs for affected persons:

None--Those entities who take advantage of the Multiple-Licensed Dispensing Storage and Service rule will find the proposed amendments to this rule will make it easier to comply with record keeping requirements. In fact, the amendments may well save man hours and, consequently, save the licensee money.

Comments by the department head on the fiscal impact the rule may have on businesses:

The Department feels this proposed rule amendment will have a positive fiscal impact on participating licensees since it will simplify record keeping requirements. Dennis R. Kellen, Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Alcoholic Beverage Control
Administration
1625 S 900 W
SALT LAKE CITY UT 84104-1630

Direct questions regarding this rule to:

Sharon Mackay at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at smackay@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/16/2008

This rule may become effective on:

06/23/2008

Authorized by:

Dennis R. Kellen, Director

R81. Alcoholic Beverage Control, Administration.

R81-1. Scope, Definitions, and General Provisions.

R81-1-11. Multiple-Licensed Facility Storage and Service.

(1) For the purposes of this rule:

(a) "premises" as defined in Section 32A-1-105[(37)](41) shall include the location of any licensed restaurant, limited restaurant, club, or on-premise beer retailer facility or facilities operated or managed by the same person or entity that are located within the same building or complex. Multiple licensed facilities shall be termed "qualified premises" as used in this rule.

(b) the terms "sell", "sale", "to sell" as defined in Section 32A-1-105[(48)](52) shall not apply to a cost allocation of alcoholic beverages as used in this rule.

(c) "cost allocation" means an apportionment of the as purchased cost of the alcoholic beverage product based on the amount [dispensed]sold in each outlet[ as reconciled by the record keeping requirements of this rule].

(d) "remote storage alcoholic beverage dispensing system" means a dispensing system where the alcoholic product is stored in a single centralized location, and may have separate dispensing heads at different locations, and is capable of accounting for the amount of alcoholic product dispensed to each location.

(2) Where qualified premises have consumption areas in reasonable proximity to each other, the dispensing of alcoholic beverages may be made from the alcoholic beverage inventory of an outlet in one licensed location to patrons in either consumption area of the qualified premises subject to the following requirements:

[(a) for liquor and wine dispensing, daily dispensing records as required in R81-1-9 and R81-1-10 must also show the amount of alcoholic beverage products dispensed to each licensed location;

(b) for beer dispensing, daily records must be kept in a form acceptable to the department that show the amount of beer dispensed to each outlet;

(c)](a) point of sale control systems must be implemented that will record the amounts of each alcoholic beverage product sold in each location[. Sales records and dispensing records must be balanced daily];

[(d)](b) cost allocation of the alcoholic beverage product cost must be made for each location on at least a monthly or quarterly basis[.] pursuant to[Allocations must be able to be supported by] the record keeping requirements of Section 32A-4-106, 32A-4-307, 32A-5-107, or 32A-10-206;

[(e)](c) dispensing of alcoholic beverages to a licensed location may not be made on prohibited days or at prohibited hours pertinent to that license type;

[(f)](d) if separate inventories of liquor are maintained in one dispensing location, the storage area of each licensee's liquor must remain locked during the prohibited hours and days of sale for each license type;

[(g)](e) dispensing of alcoholic beverages to a licensed location may not be made in any manner prohibited by the statutory or regulatory operational restrictions of that license type;

[(h) a licensee must obtain department approval before dispensing alcoholic beverages as described in this section. Applications for approval shall be in a form prescribed by the department and shall include a floor plan of all storage, dispensing, sales, service, and consumption areas involved.

(i)](f) alcoholic beverages dispensed under this section may be delivered by servers from one outlet to the various approved consumption areas, or dispensed to each outlet through the use of a remote storage alcoholic beverage dispensing system.

(3) On qualified premises where each licensee maintains an inventory of alcoholic beverage products, the alcoholic beverages owned by each licensee may be stored in a common location in the building subject to the following guidelines:

(a) each licensee shall identify the common storage location when applying for or renewing their license, and shall receive department approval of the location;

(b) each licensee must be able to account for its ownership of the alcoholic beverages stored in the common storage location by keeping records, balanced monthly, of expenditures for alcoholic beverages supported by items such as delivery tickets, invoices, receipted bills, canceled checks, petty cash vouchers; and

(c) the common storage area may be located on the premises of one of the licensed liquor establishments.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [August 27, 2007]2008

Notice of Continuation: August 31, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-107; 32A-1-119(5)(c); 32A-3-103(1)(a); 32A-4-103(1)(a); 32A-4-106(22); 32A-4-203(1)(a); 32A-4-304(1)(a); 32A-4-307(22); 32A-4-401(1)(a); 32A-4-403(1)(a); 32A-5-103(1)(a); 32A-5-107(40); 32A-6-103(2)(a); 32A-7-103(2)(a); 32A-7-106(5); 32A-8-103(1)(a); 32A-8-503(1)(a); 32A-9-103(1)(a); 32A-10-203(1)(a); 32A-10-206(14); 32A-10-303(1)(a); 32A-10-306(5); 32A-11-103(1)(a)