Alcoholic Beverage Control, Administration

Section R81-3-20

Type 4 Package Agency Room Service - Dispensing

Notice of Proposed Rule

(Amendment)

DAR File No.: 35300
Filed: 09/29/2011 10:57:55 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. 314 passed by the Legislature in the 2011 General Session relating to a certain type of package agency.

Summary of the rule or change:

S. B. 314 allows Type 4 package agencies in hotels and resorts to provide room service of liquor to guest rooms in either sealed containers or by the drink and requires those package agencies to dispense drinks according to statutory requirements. This proposed rule amendment (a new Section R81-3-20) is needed to establish the dispensing system requirements and portion size requirements for Type 4 Package Agencies that dispense room service alcoholic beverages in other than sealed containers (by the drink). It also provides an optional method to use an existing dispensing outlet in a club, restaurant, or on-premise banquet licensee in the hotel for the dispensing of room service drinks.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule clarifies a provision that is already in statute that gives Type 4 package agencies that provide room service the option to sell liquor in other than a sealed container. Whether or not sales in other than sealed containers will increase or decrease package agency sales cannot be determined at this time. Therefore the rule itself will have no effect on the state budget for costs or savings.

local governments:

None--This rule clarifies a provision that is already in statute that gives Type 4 package agencies that provide room service the option to sell liquor in other than a sealed container. Whether or not sales in other than sealed containers will increase or decrease package agency sales that affect local sales tax collections cannot be determined at this time. Therefore the rule itself will have no effect on local governments for costs or savings.

small businesses:

None--Most Type 4 package agencies are operated by large hotels that are not small businesses. Those few that are small businesses will not be affected by this rule because it is the statute that gives them the option to dispense liquor for room service in other than a sealed container. If they do choose that dispensing option, they will have to purchase dispensing equipment. However, this rule amendment allows for the use of an existing dispensing outlet, which would not require additional expense.

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:

There are no compliance costs for affected persons due to this rule amendment because it is the statute that gives them the option to dispense liquor for room service in other than a sealed container. This rule clarifies the statutory provision which is an option, not a requirement, for affected persons.

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

This rule clarifies the statute that provides an option, not a requirement, for Type 4 package agencies that offer room service to hotel guest rooms. The rule will not have a fiscal impact on businesses.

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:

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

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 [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:

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.

R81-3-20. Type 4 Package Agency Room Service - Dispensing.

(1) A Type 4 package agency that sells liquor other than in a sealed container (i.e. by the drink) as part of room service, shall dispense liquor in accordance with Section 32B-5-304 and Section R81-1-9 (Liquor Dispensing Systems).

(2) A Type 4 package agency located in a hotel or resort facility that has a retail license or sublicense may provide room service of liquor in other than a sealed container through the dispensing outlet of the retail license or sublicense under the following conditions:

(a) point of sale control systems must be implemented that will record the amounts of alcoholic beverage products sold by the retail license or sublicense on behalf of the Type 4 package agency;

(b) the alcoholic beverage product cost must be allocated to the Type 4 package agency on at least a quarterly basis pursuant to the record keeping requirements of Section 32B-5-302;

(c) dispensing of alcoholic beverages from a retail license or sublicense location may not be made at prohibited hours pertinent to that license or sublicense type;

(d) A Type 4 package agency held by a resort licensee that operates seven days a week, 24 hours per day, must have a separate dispensing outlet for use during the times that a sublicense is not allowed to sell 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