Alcoholic Beverage Control, Administration

Section R81-1-29

Disclosure of Conflicts of Interest

Notice of Proposed Rule

(Amendment)

DAR File No.: 34337
Filed: 12/30/2010 08:57:36 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The recent audit of the Department of Alcoholic Beverage Control by the Legislative Auditor General recommended a more formalized approach as to how commissioners should disclose actual or potential conflicts of interest.

Summary of the rule or change:

Over the years, commissioners have individually disclosed situations that may have presented an actual, potential, or appearance of a conflict of interest. The recent audit of the Department of Alcoholic Beverage Control by the Legislative Auditor General recommended a more formalized approach as to how commissioners should disclose actual or potential conflicts of interest. This change provides procedures for a commissioner to disclose an existing or potential conflict of interest to ensure that the decisions of the commission are based on a fair process.

State statutory or constitutional authorization for this rule:

• Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--This change provides procedures for a commissioner to disclose an existing or potential conflict of interest to ensure that the decisions of the commission are based on a fair process. The passage of this change does not fiscally affect the state's budget.

local governments:

None--This change provides procedures for a commissioner to disclose an existing or potential conflict of interest. The passage of this change will not fiscally affect local government agencies.

small businesses:

None--This change provides procedures for a commissioner to disclose an existing or potential conflict of interest. The passage of this change will not fiscally affect small businesses.

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

None--This change provides procedures for a commissioner to disclose an existing or potential conflict of interest. The passage of this change will not fiscally affect other persons.

Compliance costs for affected persons:

None--All fees remain unchanged.

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

This change will not have a fiscal impact on businesses. It merely provides procedures for a commissioner to disclose an existing or potential conflict of interest.

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:

• Vickie Ashby at the above address, by phone at 801-977-6801, 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:

02/14/2011

This rule may become effective on:

02/21/2011

Authorized by:

Dennis Kellen, Director

R81. Alcoholic Beverage Control, Administration.

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

R81-1-29. Disclosure of Conflicts of Interest.

(1) Authority. This rule is pursuant to 32A-12-306 that prohibits a commissioner from having a conflict of interest in the performance of the commissioner's duties, and 67-16-9 that prohibits a public officer from having personal investments in any business entity which will create a substantial conflict between the public officer's private interests and public duties.

(2) Purpose. This rule provides procedures for a commissioner to disclose an existing or potential conflict of interest to ensure that the decisions of the commission are based on a fair process.

(3) Application of Rule.

(a) A commissioner shall disclose during a meeting of the commission any substantial existing or potential conflict of interest including the existence and nature of a professional, financial, business, or personal interest with an applicant for a license or permit or with a licensee or permittee that may impact the commission member's ability to fairly and impartially vote on a particular issue involving that applicant, licensee or permittee.

(b) A commission member who believes he has a substantial existing or potential conflict of interest that will impact the commissioner's ability to fairly and impartially vote on a particular issue shall recuse himself from voting on that issue.

(c) If a commission member discloses a substantial existing or potential conflict of interest and does not recuse himself from voting on the particular issue, the commission may, by majority vote, disqualify the commission member from participating and voting on the particular issue if the commission believes the conflict of interest is substantial and will impact the commission member's ability to fairly and impartially vote on the issue. The affected commission member may not participate in this vote.

(d) Any declaration of a conflict of interest must be recorded in the minutes of the meeting.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [September 1, 2010]2011

Notice of Continuation: August 31, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-106(9); 32A-1-107; 32A-1-119(5)(c); 32A-1-702; 32-1-703; 32A-1-704; 32A-1-807; 32A-3-103(1)(a); 32A-4-103(1)(a); 32A-4-106(1)(a); 32A-4-203(1)(a); 32A-4-304(1)(a); 32A-4-307(1)(a); 32A-4-401(1)(a); 32A-5-103(1)(a); 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); 32A-12-212(1)(b) and (c)