Alcoholic Beverage Control, Administration

Section R81-4F-7

Sale and Purchase of Alcoholic Beverages

Notice of Proposed Rule

(Amendment)

DAR File No.: 36113
Filed: 04/30/2012 11:47:10 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to implement S.B. 66 passed by the Legislature in the 2012 General Session. S.B. 66 added a requirement that licensees submit an annual report demonstrating that their receipts from the sale of alcoholic product do not exceed 30% of its total annual receipts. This proposed amendment reflects that change.

Summary of the rule or change:

This proposed amendment to the Reception Center License agency under Section R81-4F-7, amends the rule to conform to the requirement that the Reception Center Licensee submit an annual report demonstrating that their receipts from the sale of an alcohol product do not exceed 30% of its total annual receipts.

State statutory or constitutional authorization for this rule:

• Section 32B-6-805
• Section 32B-1-607

Anticipated cost or savings to:

the state budget:

None--Any cost or savings result directly from S.B. 66 (2012), not from this rule filing which simply makes the Department of Alcoholic Beverage Control (DABC) rules consistent with the new statute.

local governments:

None--Any cost or savings result directly from S.B. 66 (2012), not from this rule filing which simply makes the DABC rules consistent with the new statute.

small businesses:

None--Any cost or savings result directly from S.B. 66 (2012), not from this rule filing which simply makes the DABC rules consistent with the new statute.

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

None--Any cost or savings result directly from S.B. 66 (2012), not from this rule filing which simply makes the DABC rules consistent with the new statute.

Compliance costs for affected persons:

None--Any cost results directly from S.B. 66 (2012), not from this rule filing which simply makes the DABC rules consistent with the new statute.

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

Any cost or savings result directly from S.B. 66 (2012), not from this rule filing which simply makes the DABC rules consistent with the new statute.

Francine A 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:

• 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
• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, or by Internet E-mail at nmcdermott@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:

06/14/2012

This rule may become effective on:

06/21/2012

Authorized by:

Francine Giani, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-4F. Reception Center License.

R81-4F-7. Sale and Purchase of Alcoholic Beverages.

(1) The reception center licensee may not maintain in excess of 30% of its total annual receipts from the sale of an alcoholic product which includes mix for an alcoholic product, or a charge in connection with the furnishing of an alcoholic product pursuant to 32B-6-805(9).

(2) The restaurant shall maintain records separately showing quarterly expenditures and sales for beer, heavy beer, liquor, wine, set-ups, service charges, and all other sales. These records shall be reported to the department on an annual basis as part of the application for renewal of the reception center license. Additionally, these records should be available for inspection and audit by representatives of the department, and maintained for a period of three years.

(3) If any inspection or audit discloses that the sales of alcoholic products exceed 30% of the reception center licensee's total receipts for any quarterly period, the department shall immediately put the licensee on a probationary status and closely monitor the licensee's alcohol sales during the next quarterly period to determine that the licensee is able to prove to the satisfaction of the department that the sales of alcohol do not exceed 30% of the business. Failure of the licensee to provide satisfactory proof of the required alcohol percentage within the probationary period shall result in issuance of an order to show cause by the department to determine why the license should not be revoked by the commission.

(4) Liquor dispensing shall be in accordance with Section 32B-5-304 and Section R81-1-9 (Liquor Dispensing Systems).

 

KEY: alcoholic beverages, reception center licenses

Date of Enactment or Last Substantive Amendment: [October 1, 2011]2012

Authorizing, and Implemented or Interpreted Law: 32B-2-202; 32B-6-805(3)