Alcoholic Beverage Control, Administration

Rule R81-1

Scope, Definitions, and General Provisions

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 34787
Filed: 05/10/2011 11:12:08 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 32A-1-107 authorizes the ABC Commission to adopt and issue rules; set policy by rule that establishes criteria and procedures for granting, denying, suspending, or revoking licenses and permits; and prescribe the conduct, management, and equipment of any premises where alcohol is sold, served, consumed, or stored.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

Several sections in this rule have been amended in the past five years. Subsection R81-1-3(1) that required the department to affix state labels to liquor bottles was repealed (no public comments received). Subsection R81-1-3(5) dealt with returned checks and allows the agency to forfeit the violator's compliance bond and put him on "cash only" (no public comments were received). Another rule enacted procedures to implement Subsection 32A-12-212(1)(c) that allows a beneficiary who inherits an alcoholic beverage collection as part of an estate to bring the alcohol into the state (no public comments received). The violation schedule rule (Section R81-1-6) was amended to clarify the penalties for repeat offenders, to add additional mitigating circumstances, and to require rulemaking to make any substantive change to the violation grid that would establish or adjust the degree of seriousness of a violation. These were passed at the urging of Representatives Dunnigan and Oda, and supported by the Utah Hospitality Association. The wine dispensing rule at Section R81-1-10 was repealed in its entirety (no public comments). The definition of "intoxication" in Section R81-1-24 was amended to be consistent with Subsection 32A-1-105(28) (no comments). Section R81-1-25 was passed regulating sexually oriented entertainers and stage approvals (no comments). A new rule at Section R81-1-26 dealing with criminal history background check procedures was passed (no public comments). Section R81-1-27 was enacted to fully implement the Flavored Malt Beverage Act (Sections 32A-1-801 to 809) passed by the Legislature in 2008 (most of the public comments both pro and con were aired during the legislative session. This rule merely established guidelines for approving the labels on these products. Thus, we received very few comments on this rule. Section R81-1-28 was enacted to allow the commission to charge an administrative fee for holding special meetings to approve temporary permits for events that will occur before the commission's regular monthly meeting (no comments). Section R81-1-29, procedures for commissioners to disclose potential conflicts of interest, and Section R81-1-30, factors the commission weighs in granting licenses, were enacted in response to recommendations in an audit performed by the Legislative Auditor General's Office (no public comments).

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule regulates the sale and service of alcoholic beverages within the state. It defines terms used within all of Title R81; establishes policies for payment of liquor; states that the department is an equal opportunity employer; establishes standards for providing notice of public hearings and meetings; addresses procedures for the department's handling of violations by licensees including disciplinary hearings and consent calendar guidelines; establishes requirements for liquor dispensing; regulates multiple-licensed facilities; sets standards and record requirements for attendance of alcohol education seminars by licensees and their employees; and sets guidelines for compliance with the Government Records Access and Management Act (GRAMA) and the Americans with Disabilities Act (ADA). The rule also sets guidelines for commission declaratory orders; establishes procedures for disqualifying individuals with certain criminal backgrounds from being involved in the sale and service of alcoholic beverages; clarifies advertising prohibitions; sets guidelines for emergency, electronic, and special meetings; establishes rules for beer advertising at event venues; establishes guidelines for diplomatic embassy shipments and purchases; sets rules for the department's sale of limited-availability items; requires designated licensees to submit and implement a responsible alcohol service plan; regulates sexually-oriented entertainers and establishes guidelines for stage approvals; outlines procedures for doing criminal history background checks, and malt beverage label approvals; allows the commission to assess administrative fees for special commission meetings; sets guidelines for disclosing conflicts of interest; and lists factors the commission weighs in deciding to grant licenses.. As stated earlier, we received virtually no comments in opposition to the proposed rules. Some of the rules were in response direct response to requests from legislators and their views were fully implemented. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

• Earl Dorius at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at edorius@utah.gov
• Vickie Ashby at the above address, by phone at 801-977-6801, by FAX at 801-977-6889, or by Internet E-mail at vickieashby@utah.gov

Authorized by:

Dennis Kellen, Director

Effective:

05/10/2011