DAR File No. 39155

Alcoholic Beverage Control, Administration

Section R81-3-5

Special Orders of Liquor by Public

Notice of Proposed Rule

(Amendment)

DAR File No.: 39155
Filed: 02/25/2015 08:39:58 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This section outlines procedures for special orders by the general public. Subsection R81-1-3(9) will allow the department to outline procedures in policy. The change is necessary to allow flexibility for department operations to adapt administration of the program to accommodate advances in technology and changes in market demand.

Summary of the rule or change:

This section will be replaced by Subsection R81-1-3(9). An amendment to Subsection R81-1-3(9) is being simultaneously filed with this change. (DAR NOTE: The proposed amendment to Section R81-1-3 is under DAR No. 39156 in this issue, March 15, 2015, of the Bulletin.)

State statutory or constitutional authorization for this rule:

• Subsections 32B-2-206(1)(2) and (5)
• Subsection 32B-2-206(1)(a)
• Subsection 32B-2-204(1)

Anticipated cost or savings to:

the state budget:

None--This section is necessary to authorize the director to make internal department policies regarding a special order program for products not kept for sale by the department. Any cost or savings to the state is included in our normal course of business.

local governments:

None--This section is necessary to authorize the director to make internal department policies regarding a special order program for use by the general public and does not affect local government. Therefore, this change will not incur any cost or savings to local government.

small businesses:

None--This section is necessary to authorize the director to make internal department policies regarding a special order program for use by the general public. The change would allow for adaptation of the program to adjust for advancement in technology and market demand. There will be no anticipated cost or savings for small businesses.

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

None--This section is necessary to authorize the director to make internal department policies regarding a special order program for use by the general public. The change would allow for adaptation of the program to adjust for advancement in technology and market demand. There will be no anticipated cost or savings for persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

None--This section is necessary to authorize the director to make internal department policies regarding a special order program by the general public. The change would allow for the department to make adjustments to the program for advances in technology and changes in market demand. Any changes to the program will not have compliance costs passed on to the consumer without going through the fee assessment processes outlined in Section 63J-1-504.

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

None--This section is necessary to authorize the director to make internal department policies regarding a special order program for use by the general public. The change would allow the department to make adjustments to the program for advancement in technology and changes in market demand and does not have any fiscal impacts.

Salvador D. Petilos, 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:

• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, or by Internet E-mail at [email protected]
• Andrew Hofeling at the above address, by phone at 801-977-6835, by FAX at 801-977-6888, 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:

04/14/2015

This rule may become effective on:

04/21/2015

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-3. Package Agencies.

R81-3-5. [Special Orders of Liquor by Public.]Reserved.

Reserved.[(1) Purpose. A special order product is any product not listed on the department's product/price list. This rule outlines the procedures for accepting, processing, ordering and disbursing special orders.

(2) Application of Rule.

(a) Only type 2 and 3 package agencies may process special order requests.

(b) Any individual may place a special order at any type 2 or 3 package agency. Special orders may be placed by groups of individuals, organizations, or retail licensees either at a type 2 or 3 package agency or with the purchasing division of the department. A special order shall be processed as follows:

(i) A special order form must be filled out and signed by the customer for each special order product purchased. The package agency shall forward the form to the department's purchasing division.

(ii) Special orders may be ordered only by the case, not by the bottle. There is no handling fee on special orders.

(iii) Customers should be advised to allow at least two months between processing and delivery of a special order.

(iv) Special orders for beer will be subject to availability and according to the distributor's shipping criteria.

(v) If a group, organization, or retail licensee places a special order, they may designate a particular package agency or state store to which they want the special order items to be sent. They shall include the name and telephone number of the individual who will pick up and pay for the special order product at that location.

(vi) A special order must include the product name and distributor or shipper.

(vii) The department's special order buyer shall obtain a retail bottle price and call the customer and/or package agent for clearance to proceed with the order.

(viii) When the special order arrives, the package agency or state store to which the special order has been sent shall immediately notify the customer, and the customer shall pick up the order as soon as possible after notification. The customer shall pay for and pick up the entire special order. The package agency or state store is not allowed to warehouse special ordered products. All merchandise must be cleared from the system before a reorder on that special order item is allowed.

(ix) Special orders may only be placed by customers. Package agencies may not place a special order unrelated to a particular customer as a means to sell unlisted products to the general public.

(x) Special orders of beer, wine or spirits with lower prices than quoted to the department on products handled by or similar to products handled by the department will be allowed only on two conditions:

(A) the department has the opportunity to purchase the same product at the same price; or

(B) the individual, group of individuals, organization, or retail licensee name is part of the design of the front label found on the product.

]

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [July 17, 2012]2015

Notice of Continuation: May 10, 2011

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