Alcoholic Beverage Control, Administration

Section R81-4F-13

Agreement for Alcoholic Beverage Service

Notice of Proposed Rule

(Amendment)

DAR File No.: 36115
Filed: 04/30/2012 01:05:57 PM

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. Reception Center Licenses may hold an event pursuant to a contract with a third party host. S.B. 66 authorizes the commission to define a third party host so that a licensee and third party host are not owned or operated by the same person. S.B. 66 also adds a requirement that, with the exception of a non-profit organization once a year, a reception center licensee may not hold an event that is open to the public in which an alcoholic product is sold. This proposed amendment reflects that change.

Summary of the rule or change:

This proposed rule Reception Center License agency Section R81-4F-13 defines "third party host" for the purposes of Section 32B-6-805 "Specific operational requirements for a reception center license" as required by S.B. 66.

State statutory or constitutional authorization for this rule:

• Section 32B-6-805
• Section 32B-2-202

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-13. Agreement For Alcoholic Beverage Service.

(1) "Third Party Host" is a party that contracts with the reception center licensee to provide alcoholic beverage service at an event to be held on a specific date and time for a pre-arranged, guaranteed number of attendees at a negotiated price.

(a) With the exception of a nonprofit organization holding an event as described in 32B-6-805(19)(a), the reception center licensee may not contract with a third party host to hold an event that is open to the public where an alcoholic product is sold or offered for sale.

(b) With the exception of a nonprofit organization holding an event as described in 32B-6-805(19)(a), a third party host may not collect a cover charge or entry fee for admission to the private event.

(c) With the exception of a nonprofit organization holding an event as described in 32B-6-805(19)(a), a third party host may not receive any proceeds from the sale of alcoholic product from the event.

(d) A Reception Center Licensee may host an event for an immediate family member provided that the event is not an event that is open to the public where an alcoholic product is sold or offered for sale, and the Reception Center Licensee does not collect a cover charge or entry fee to the event.

 

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)