Alcoholic Beverage Control, Administration

Section R81-3-13

Operational Restrictions

Notice of Proposed Rule

(Amendment)

DAR File No.: 33152
Filed: 11/17/2009 04:14:16 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement S.B. 187 passed by the 2009 legislature. (DAR NOTE: S.B. 187 (2009) is found at Chapter 383, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

This rule amendment provides regulations for type 4 package agencies located in a resort licensed under Title 32A, Chapter 4a. The amendment adds language to the current rule to permit these particular package agencies to be open 24 hours a day, 7 days a week, including Sundays and legal holidays.

State statutory or constitutional authorization for this rule:

• Section 32A-1-107

Anticipated cost or savings to:

the state budget:

This rule should not create cost or savings to the state's budget. However, it may create revenues to the state budget in that package agencies in resorts may be open extended hours and on Sundays and holidays. Extended hours may mean additional liquor sales which could potentially mean added revenues to the Department of Alcoholic Beverage Control (DABC) who contracts with these agencies.

local governments:

There should be no additional costs or savings to local governments, but since package agencies in the resorts licensed under Title 32A, Chapter 4a, may have extended hours and be open on Sundays and holidays there is potential for additional taxes collected on liquor sales. Local governments receive part of those taxes.

small businesses:

None--Resorts licensed under Title 32A, Chapter 4a, are huge facilities and not small businesses. Type 4 package agencies in resorts are issued for the sole purpose of providing room service to guests of the resort.

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

None--It is not anticipated this rule amendment will fiscally affect any other persons. The rule simply establishes hours of business for package agencies in licensed resorts.

Compliance costs for affected persons:

None--It is not anticipated this rule amendment will fiscally affect any other persons. The rule simply establishes hours of business for package agencies in licensed resorts.

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

There are only four resort licenses available by statute. Of the four, only one has been issued. DABC does not anticipate that any business will experience a fiscal impact created by this rule amendment.

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 [email protected]

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:

01/14/2010

This rule may become effective on:

01/21/2010

Authorized by:

Dennis Kellen, 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.

(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 32A-4a, 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 32A-3-106(9) which allows the following to operate on a Sunday or legal holiday:

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

(B) a package agency held by a resort [licensee]that is licensed under 32A-4a that does not sell liquor in a manner similar to a state store which [includes]is limited to a Type [1, 4, and 5]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: [June 24, 2009]2010

Notice of Continuation: September 6, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-107; 32A-3-106(9)(c)(ii)