DAR File No. 32554

Alcoholic Beverage Control, Administration

R81-3-13

Operational Restrictions

NOTICE OF PROPOSED RULE

DAR File No.: 32554
Filed: 04/27/2009, 11:13
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement S.B.187 which was passed by the 2009 State 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:

Subsection 32A-3-106(9)(c)(ii) specifically authorizes the Alcoholic Beverage Control (ABC) Commission to define what constitutes a package agency that sells liquor "in a manner similar to a state store." The ABC Commission has determined that package agencies of type 2 (sells liquor in conjunction with another business) and type 3 (sells only liquor) sell liquor in a way similar to a state store. Package agency types 1, 4, and 5 do not sell liquor in a manner similar to a state store. As a result of new provisions passed in S.B. 187, package agency types 1, 4, and 5 may now sell liquor on Sundays and legal holidays. This proposed rule amendment establishes clear guidelines for sales and restrictions on Sundays and legal holidays in all types of package agencies.

State statutory or constitutional authorization for this rule:

Section 32A-1-107 and Subsection 32A-3-106(9)(c)(ii)

Anticipated cost or savings to:

the state budget:

There may potentially be some revenues generated into the state's coffers since package agencies buy their liquor from the Department of Alcohlic Beverage Control and any additional sales on Sundays and legal holidays will mean income for the state. It is not possible at this point to determine what that amount may be.

local governments:

Added sales days for package agencies may increase sales and, consequently, increase taxes paid to local governments. It is not possible to know what the tax increase may be.

small businesses and persons other than businesses:

Most of our package agencies are small businesses. For those that can remain open on Sundays and legal holidays there is potential to increase revenues. What those revenues will be cannot be estimated at this time.

Compliance costs for affected persons:

There should not be any additional compliance costs involved in this rule amendment. Package agencies are already established and running and nothing more will be required of them to remain open on Sundays and legal holidays.

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

It has been very inconvenient for package agencies in resort areas and wineries to close on Sundays and legal holidays. These are the days when these agencies stand to have the most business. Permitting them to be open to accommodate their patrons on those busy days should make a big difference, not only in revenues, but in customer satisfaction. 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:

06/15/2009

This rule may become effective on:

06/22/2009

Authorized by:

Dennis R. 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.

(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) A package agency, regardless of type, shall not operate on Sundays or legal holidays except to the extent authorized by 32A-3-106(10) for package agencies located in certain wineries. If a legal holiday falls on a Sunday, the following Monday will be observed as the holiday by Type 2 and 3 package agencies.](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 does not sell liquor in a manner similar to a state store which includes a Type 1, 4, and 5 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.

[(f) Because Type 2 and 3 package agencies operate in manner similar to a state store, they may not be open to sell liquor on election days until after the polls have closed. Type 1,4, and 5 package agencies do not operate in a manner similar to a state store and may remain open to sell liquor on elections days.

](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 27, 2008]2009

Notice of Continuation: September 6, 2006

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