Utah Department of Administrative Services Division of Administrative Rules

Alcoholic Beverage Control, Administration

Section R81-3-13

Operational Restrictions

Notice of Proposed Rule

(Amendment)

DAR File No.: 35299
Filed: 09/29/2011 10:56:22 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement a provision of S.B. 2002 passed by the Legislature in the 2011 Second Special Session.

Summary of the rule or change:

To implement S.B. 2002 passed by the Legislature in the 2011 Second Special Session, this proposed amendment to the package agency Section R81-3-13, adds a dining club to the list of licenses that may be held by a brewery, winery, or distillery that would allow its Type 5 package agency to operate on a Sunday or legal holiday.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule amendment clarifies a provision that is already in statute. The statutory provision may add revenue to the state's coffers due to fees and taxes collected through additional sales on Sundays and Holidays, so the rule itself has no effect on the state budget for either costs or savings. Very few Type 5 package agencies are affected at this time and it is not possible at this point to determine any added revenue amounts.

local governments:

None--This rule amendment clarifies a provision that is already in statute. The statutory provision may add revenue to local government coffers due to sales tax collected through additional sales on Sundays and Holidays, so the rule itself will have no effect on local budgets. Very few Type 5 package agencies are affected at this time and it is not possible at this point to determine any added revenue amounts.

small businesses:

Some of the Type 5 package agencies that also operate a "dining club" are operated by small businesses. Their ability to operate on Sundays and holidays could potentially increase revenues. What those increases may be cannot be estimated at this time.

persons other than small businesses, businesses, or local governmental entities:

None--Package agencies are operated by private persons under contract with the state. This rule amendment will not fiscally affect other persons.

Compliance costs for affected persons:

None--This rule amendment provides for operational restrictions that are already in place for Type 5 package agencies. Nothing more will be required of the affected Type 5 agencies to remain open on Sundays and Holidays.

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

The statutory provision clarified by this rule is supported by the businesses affected. Businesses could potentially see an increase in revenues due to being able to operate on Sundays and holidays. There may also be an increase in customer convenience and satisfaction for both residents and tourist alike.

Francine Giani, Executive Director

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

Direct questions regarding this rule to:

• Neil Cohen at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at ncohen@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:

11/14/2011

This rule may become effective on:

11/22/2011

Authorized by:

Francine Giani, Interim Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-3. Package Agencies.

R81-3-13. Operational Restrictions.

(1) Hours of Operation.

(a) Type 1, 2, and 5 package agencies may operate from 10:00 a.m. until 12:00 midnight, Monday through Saturday. However, the actual operating hours may be less in the discretion of the package agent with the approval of the department. Type 2 agencies shall be open for business at least seven hours a day, five days a week, except where closure is otherwise required by law. Type 5 package agencies may, in the discretion of the package agent, be open as early as 8:00 a.m. for sales to licensees with the approval of the department. Type 5 package agencies may also be open on Sundays and state and federal holidays if the package agency is located at a manufacturing facility licensed by the commission and the manufacturing facility holds a full-service restaurant license, a limited-service restaurant license, [or] a beer-only restaurant license[.], or a dining club license.

(b) Type 3 package agencies may operate from 10:00 a.m. until 10:00 p.m., Monday through Saturday, but may remain closed on Mondays in the discretion of the package agent. However, the actual operating hours may be less in the discretion of the package agent with the approval of the department, provided the agency operates at least seven hours a day.

(c) Type 4 package agencies may operate from 10:00 a.m. until 1:00 a.m., Monday through Friday, and 10:00 a.m. until 12:00 midnight on Saturday. However, the actual operating hours may be less in the discretion of the package agent with the approval of the department. A Type 4 package agency in a resort that is licensed under 32B-8, may operate 24 hours a day, Monday through Sunday to provide room service to guests of the resort.

(d) Any change in the hours of operation of any package agency requires prior department approval, and shall be submitted in writing by the package agent to the department.

(e)(i) A package agency shall not operate on a Sunday or legal holiday except to the extent authorized by 32B-2-605(13) which allows the following to operate on a Sunday or legal holiday:

(A) a package agency located in certain licensed wineries, breweries, and distilleries; and

(B) a package agency held by a resort that is licensed under 32B-8 that does not sell liquor in a manner similar to a state store which is limited to a Type 4 package agency.

(ii) If a legal holiday falls on a Sunday, the following Monday will be observed as the holiday by a Type 2 and 3 package agency.

(2) Size of Outlet. The retail selling space devoted to liquor sales in a type 2 or 3 package agency must be at least one hundred square feet.

(3) Inventory Size. Type 2 and 3 package agencies must maintain at least fifty code numbers of inventory at a retail value of at least five thousand dollars and must maintain a representative inventory by brand, code, and size.

(4) Access to General Public. Type 1, 2, and 3 package agencies must be easily accessible to the general consuming public.

(5) Purchase of Inventory. All new package agencies, at the discretion of the department, will purchase and maintain their inventory of liquor.

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [February 24, ]2011

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-202