DAR File No. 39418

Alcoholic Beverage Control, Administration

Section R81-3-14

Type 5 Package Agencies

Notice of Proposed Rule

(Amendment)

DAR File No.: 39418
Filed: 06/01/2015 03:25:25 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to define manufacturing facility and allow flexibility in the location of a type 5 package agency so long as the location is within the same parcel of land as the manufacturing licensed premises.

Summary of the rule or change:

This rule change defines a manufacturing facility (referenced in Subsection 32B-2-605(13)(b)) to include the parcel of land and/or buildings surrounding the manufacturing licensed premises. Current rule requires that the package agency be on the premises of the manufacturing licensed premises. This rule change will allow flexibility for the licensee and the department in determining the most suitable location for a type 5 package agency.

State statutory or constitutional authorization for this rule:

• Subsection 32B-2-605(13)(b)
• Section 32B-2-202
• Subsection 32B-2-601(4)

Anticipated cost or savings to:

the state budget:

None--This rule change allows flexibility in the location of a type 5 package agency, there are no anticipated costs or savings as the department's responsibilities remain the same.

local governments:

None--This rule change allows flexibility in approving the location of a type 5 package agency. This rule change affects the department and the licensee. There are no anticipated costs or savings to local government.

small businesses:

This rule change allows flexibility in the location of a type 5 package agency. Any additional costs or savings to small businesses would result from a business' decision related to the location of the package agency.

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

None--This rule change allows flexibility in the location of a type 5 package agency. There are no anticipated costs or savings to persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

None--This rule change allows flexibility in the location of a type 5 package agency. Any costs to licensees would be based on a business decision to relocate their package agency to a new location.

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

None--This rule change allows flexibility in the location of a type 5 package agency. Any additional costs or savings to businesses would result from a business' decision related to the location of the package agency.

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
• Andrew Hofeling at the above address, by phone at 801-977-6835, by FAX at 801-977-6888, or by Internet E-mail at ahofeling@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:

07/15/2015

This rule may become effective on:

07/22/2015

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-3. Package Agencies.

R81-3-14. Type 5 Package Agencies.

(1) Purpose. A type 5 package agency is for the limited purpose of allowing a winery, distillery, or brewery to sell at its manufacturing location the packaged liquor product it actually produces to the general public for off-premise consumption. This rule establishes guidelines and procedures for type 5 package agencies.

(2) Application of Rule.

(a) The package agency must be located [on the winery, distillery, or brewery premises]at a manufacturing facility [at a location approved]that has been granted a manufacturing license by the commission. For purpose of this rule, a manufacturing facility includes the parcel of land and/or building(s) leased or owned by the manufacturing licensee immediately surrounding the manufacturing premise.

(b) The package agency may only sell products produced at the winery, distillery, or brewery, and may not carry the products of other alcoholic beverage manufacturers.

(c) The product produced by the winery, distillery, or brewery and sold in the type 5 package agency need not be shipped from the winery, distillery, or brewery to the department warehouse and then back to the package agency. The bottles for sale may be moved directly from the manufacturer's storage area to the package agency provided that proper record-keeping is maintained on forms provided by the department. Records required by the department shall be kept current and available to the department for auditing purposes. Records must be maintained for at least three years. The package agency shall submit to the department a completed monthly sales report form which specifies the variety and number of bottles sold from the package agency. This report must be submitted to the department within the first five working days of the month. A club or restaurant purchases form must be filled out for every licensee purchase.

(d) Direct deliveries to licensees are prohibited. Products must be purchased and picked up by the licensees or their designated agents at the Type 5 package agency.

(e) The type 5 package agency shall follow the same laws, rules, policies, and procedures applicable to other package agencies as to the retail price of products.

(f) The days and hours of sale of the type 5 package agency shall be in accordance with 32B-2-605(13) and R81-3-13.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [April 28, ]2015

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-202; 32B-2-601(4); 32B-2-605(13)(b)