DAR File No. 37962

Alcoholic Beverage Control, Administration

Section R81-1-9

Liquor Dispensing Systems

Notice of Proposed Rule

(Amendment)

DAR File No.: 37962
Filed: 09/03/2013 05:03:49 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Subsection 32B-5-304(1) requires that licensees use a calibrated metered dispensing system approved by the department in accordance with commission rules. To avoid the appearance that the department is approving companies rather than systems, this amendment outlines the requirements for an approved system and requires the licensee ensure that they comply with those requirements.

Summary of the rule or change:

This amendment outlines the requirements for an approved system and requires the licensee ensure that they comply with those requirements.

State statutory or constitutional authorization for this rule:

• Subsection 32B-5-304(1)

Anticipated cost or savings to:

the state budget:

None--This rule filing outlines requirements for approved dispensing systems and does not create or save costs.

local governments:

None--This rule filing outlines requirements for approved dispensing systems and does not create or save costs.

small businesses:

None--This rule filing outlines requirements for approved dispensing systems and does not create or save costs.

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

None--This rule filing outlines requirements for approved dispensing systems and does not create or save costs.

Compliance costs for affected persons:

None--This rule filing outlines requirements for approved dispensing systems and does not have any associated compliance costs.

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

None--This rule filing outlines requirements for approved dispensing systems and does not have any associated costs.

Salvador D. Petilos, 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:

• 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:

10/15/2013

This rule may become effective on:

10/22/2013

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-1. Scope, Definitions, and General Provisions.

R81-1-9. Liquor Dispensing Systems.

A licensee may not install or use any system for the automated mixing or dispensing of spirituous liquor unless the dispensing system has been approved by the department.

(1) A dispensing system is approved by the department if it meets the following [M]minimum requirements[. The department will only approve a dispensing system which]:

(a) dispenses spirituous liquor in calibrated quantities not to exceed 1.5 ounces;[and]

(b) has a meter which counts the number of pours dispensed[.]; and

(c) The margin of error of the system for a one ounce pour size cannot exceed 1/16 of an ounce or two milliliters.

(2) Types of systems. Dispensing systems may be of various types including: gun, stationary head, tower, insertable spout, ring activator or similar method.

(3) [Method of approval.]Licensee Responsibility.

[(a) Suppliers. Companies which manufacture, distribute, sell, or supply dispensing systems must first have their product approved by the department prior to use by any liquor licensee in the state. They shall complete the "Supplier Application for Dispensing System Approval" form provided by the department, which includes: the name, model number, manufacturer and supplier of the product; the type and method of dispensing, calibrating, and metering; the degree or tolerance of error, and a verification of compliance with federal and state laws, rules, and regulations.

][(b)](a) [Licensees. Before any dispensing system is put into use by a licensee, the licensee shall complete the "Licensee Application for Dispensing System Approval" form provided by the department. The department shall maintain a list of approved products and shall only authorize installation of a product previously approved by the department as provided in subsection (a).] The licensee is [thereafter] responsible for verifying that the system, when initially installed, meets the specifications which [have been supplied to the department by the manufacturer]listed in subsection (1). Once installed, the licensee shall maintain the dispensing system to ensure that it continues to meet the [manufacturer's]approved specifications. Failure to maintain the system may be grounds for suspension or revocation of the licensee's liquor license.

[(c) Removal from approved list. In the event the system does not meet the specifications as represented by the manufacturer, the licensee shall immediately notify the department. The department shall investigate the situation to determine whether the product should be deleted from the approved list.

](4) Operational restrictions.

(a) The system must be calibrated to pour a quantity of spirituous liquor not to exceed 1.5 ounces.

(b) Voluntary consent is given that representatives of the department, State Bureau of Investigation, or any law enforcement officer shall have access to any system for inspection or testing purposes. A licensee shall furnish to the representatives, upon request, samples of the alcoholic products dispensed through any system for verification and analysis.

(c) Spirituous liquor bottles in use with a dispensing system at the dispensing location must be affixed to the dispensing system by the licensee. Spirituous liquor bottles in use with a remote dispensing system must be in a locked storage area. Any other primary spirituous liquor not in service must remain unopened. There shall be no opened primary spirituous liquor bottles at a dispensing location that are not affixed to an approved dispensing device.

(d) The dispensing system and spirituous liquor bottles attached to the system must be locked or secured in such a place and manner as to preclude the dispensing of spirituous liquor at times when liquor sales are not authorized by law.

(e) All dispensing systems and devices must

(i) avoid an in-series hookup which would permit the contents of liquor bottles to flow from bottle to bottle before reaching the dispensing spigot or nozzle;

(ii) not dispense from or utilize containers other than original liquor bottles; and

(iii) prohibit the intermixing of different kinds of products or brands in the liquor bottles from which they are being dispensed.

(f) Pursuant to federal law, all liquor dispensed through a dispensing system shall be from its original container, and there shall be no re-use or refilling of liquor bottles with any substance whatsoever. The commission adopts federal regulations 27 CFR 31.261-31.262 and 26 USC Section 5301 and incorporates them by reference.

(g) Each licensee shall keep daily records for each dispensing outlet as follows:

(i) a list of brands of liquor dispensed through the dispensing system;

(ii) the number of portions of liquor dispensed through the dispensing system determined by the calculated difference between the beginning and ending meter readings and/or as electronically generated by the recording software of the dispensing system;

(iii) number of portions of liquor sold; and

(iv) a comparison of the number of portions dispensed to the number of portions sold including an explanation of any variances.

(v) These records must be made available for inspection and audit by the department or law enforcement.

(h) This rule does not prohibit the sale of pitchers of mixed drinks as long as the pitcher contains no more than 1.5 ounces of primary spirituous liquor and no more than a total of 2.5 ounces of spirituous liquor per person to which the pitcher is served.

(i) Licensees shall display in a prominent place on the premises a list of the types and brand names of spirituous liquor being served through its dispensing system. This requirement may be satisfied either by printing the list on an alcoholic beverage menu or by wall posting or both.

(j) All dispensing systems and devices must conform to federal, state, and local health and sanitation requirements. Where considered necessary, the department may:

(i) require the alteration or removal of any system,

(ii) require the licensee to clean, disinfect, or otherwise improve the sanitary conditions of any system.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [June 25, ]2013

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-201(10); 32B-2-202; 32B-3-203(3)(c); 32B-5-304(1) ; 32B-1-305; 32B-1-306; 32B-1-307; 32B-1-607; 32B-1-304(1)(a); 32B-6-702; 32B-6-805(3); 32B-9-204(4); 32B-4-414(1)(b) and (c)