Alcoholic Beverage Control, Administration

Rule R81-12

Local Industry Representative Licenses (Distillery, Winery, Brewery)

Notice of Proposed Rule

(Amendment)

DAR File No.: 35066
Filed: 07/14/2011 10:24:15 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement S.B. 314 which was passed in the 2011 General Session. The rule amendment also makes nonsubstantive changes regarding statutory references subsequent to the recodification the Alcoholic Beverage Control Act that replaced Title 32A with Title 32B effective 07/01/2011.

Summary of the rule or change:

This rule amendment changes the references to a "privately hosted event" or "private social function" to be consistent with the definition of a "private event" in S.B. 314 passed in the 2011 General Session. The rule amendment also makes nonsubstantive changes regarding statutory references subsequent to the recodification the Alcoholic Beverage Control Act that replaced Title 32A with Title 32B effective 07/01/2011.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None. This is an amendment to make the rule consistent with the statute regarding the definition of the terms "privately hosted event" or "private social function". There is no affect on costs or savings to the state budget.

local governments:

None--This is an amendment to make the rule consistent with the statute regarding the definition of the terms "privately hosted event" or "private social function". There is no affect on costs or savings to local governments.

small businesses:

None--Some local industry representatives are small businesses, however this amendment does not affect the way their businesses are regulated. It merely changes a definition of a term and will have no cost or savings effect on small businesses.

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

This rule amendment only affects licensed representatives and will not affect cost or savings to other persons.

Compliance costs for affected persons:

None--Various statutory requirements establish compliance parameters for local industry representatives and any resulting costs. This rule amendment does not impose any additional compliance costs.

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

This is a housekeeping rule amendment that makes the rule consistent with the new statute in S.B. 314 passed in the 2011 General Session regarding the definition of the terms "privately hosted event" or "private social function". It will have no fiscal impact on businesses.

Dennis 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:

• Neil Cohen at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at ncohen@utah.gov

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:

08/31/2011

This rule may become effective on:

09/22/2011

Authorized by:

Dennis Kellen, Director

R81. Alcoholic Beverage Control, Administration.

R81-12. [Manufacturer]Local Industry Representative Licenses (Distillery, Winery, Brewery).

R81-12-1. Application.

An application for a local industry representative license shall be included in the agenda of the monthly commission meeting for consideration for issuance of a license when the requirements of [32A-8-502 and -503]32B-1-304 and 32B-11-604 and -606 have been met, and a completed application has been received by the department.

 

R81-12-2. Industry Participation in Educational Seminars Involving Liquor, Wine and Heavy Beer Products.

(1) Authority. This rule is pursuant to [32A-12-201(1) and (3), 32A-12-603(3) and (4), and 32A-12-606]32B-4-401 and -701 to 708. These provisions preclude an industry member from selling, shipping, transporting, furnishing or supplying or causing the selling, shipping, transporting, furnishing or supplying of liquor, wine, and heavy beer products to another within this state other than the department, a military installation, a holder of a special use permit to the extent authorized in the permit, and a bonded liquor warehouse; preclude an industry member from supplying anything of value except as allowed by law; preclude an industry member from giving away any of its alcoholic products to any person except for testing, analysis, and sampling purposes by the department and local industry representative licensees to the extent authorized by the Act; allow an industry member to participate in educational seminars involving the department, retailers, holders of educational or scientific special use permits, or other industry members under certain conditions, but preclude the use of samples at such seminars; and allow an industry member to serve alcoholic products to others at a private social function hosted by the industry member so long as the product is not served as part of a promotion of the industry member's products or as a subterfuge to provide samples to others for product testing, analysis, or sampling purposes.

(2) Definitions. For purposes of this rule:

(a) "Educational seminar" means an educational class involving the study of alcoholic beverages attended only by students who have registered in advance for the course, a privately-hosted event or social function held by a private group engaged in the study of alcoholic beverages, and a private training session held by a retailer for the purpose of educating the retailer and the retailer's employees of the qualities and characteristics of alcoholic beverages. An educational seminar does not include a seminar to which the general public is invited to attend.

(b) "Industry member" means a liquor, wine or heavy beer manufacturer, supplier, importer, wholesaler, or any of its affiliates, subsidiaries, officers, directors, agents, employees, or representatives.

(c) "[Privately-hosted event" or "private social function]Private event" means a specific social, business, or recreational event for which an entire room, area, or hall [has been]is leased , rented, or reserved, in advance by an identified group, and the event [or function] is limited in attendance to people who [have been]are specifically designated and their guests. [Privately-hosted event" and "private social function"]"Private event" does not include an event [or function] to which the general public is invited whether for an admission fee or not.

(d) "Retailer" means the holder of an alcoholic beverage license or permit issued by the commission to allow the holder to engage in the sale of alcoholic beverages to consumers, or any of the holder's agents, officers, directors, shareholders, partners, or employees.

(e) "Sample" means liquor, wine and heavy beer that is placed in the possession of the department for testing, analysis, and sampling by the department, or for testing, analysis, and sampling by local industry representatives on the premises of the department. Samples are furnished by industry members to the department for these purposes at no cost, and are labeled by the department as samples. Sample does not include liquor, wine and heavy beer that is sold by the department at retail after taxes and markup have been included.

(3) General Purpose. This rule authorizes industry representatives, under certain restrictions, to attend and participate in educational seminars where liquor, wine and heavy beer products are analyzed, tested, and tasted.

(4) Application of Rule.

(a) An industry member may attend and participate in an educational seminar where liquor, wine and heavy beer products are analyzed, tested, and tasted only as the invited guest of the host of the seminar. An industry member may not directly or indirectly host, organize, or otherwise arrange for an educational seminar where such products are present.

(b) Liquor, wine and heavy beer products used at an educational seminar must be purchased by the host from the department at full retail. An industry member may not directly or indirectly furnish or otherwise provide the liquor, wine and heavy beer products for the seminar. No liquor, wine or heavy beer samples may be present or used at an educational seminar. Tastings involving samples may occur only on the department's premises in accordance with Section [32A-12-603(4)(c)]32B-4-705(5) and (8).

(c) An industry member may be invited by the host to lecture, and analyze, test, and taste the liquor, wine and heavy beer products during the industry member's presentation at an educational seminar.

(d) An educational seminar where liquor, wine and heavy beer products are present may not be used by an industry member to introduce retailers to new products which are not presently listed by the department for sale in this state.

(e) An educational seminar may not be open to the general public.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [August 1, 2003]2011

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: [32A-1-107]32B-4-401; 32b-4-701 to 708