DAR File No. 43348

Alcoholic Beverage Control, Administration

Rule R81-10

Off-Premise Beer Retailers

Notice of Proposed Rule

(Amendment)

DAR File No.: 43348
Filed: 10/31/2018 03:13:52 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

These rule changes are necessary due to H.B. 442, passed in the 2017 General Session, and H.B. 456, passed in the 2018 General Session.

Summary of the rule or change:

These rule changes are necessary to capture a slight language change regarding where beer is stored and to capture the current code references that were amended by H.B. 442 (2017) and H.B. 456 (2018). These rule changes also put into rule the process and procedure for submitting an application for an off-premise beer retailer state license.

Statutory or constitutional authorization for this rule:

• Section 32B-7-202
• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None. Any anticipated costs or savings to the state budget are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018), which modified the display requirements for off-premise retailers and created an off-premises beer retailer state license. Costs and savings to the state budget were calculated as part of the fiscal note. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

local governments:

None. Any anticipated costs or savings to local governments are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018), which modified the display requirements for off-premise retailers and created an off-premises beer retailer state license. Costs and savings to local government were calculated as part of the fiscal note. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

small businesses:

None. Any anticipated costs or savings to small businesses are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018), which modified the display requirements for off-premise retailers and created an off-premises beer retailer state license. Costs and savings to small businesses were calculated as part of the fiscal note. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

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

None. Any anticipated costs or savings to other persons are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018), which modified the display requirements for off-premise retailers and created an off-premises beer retailer state license. Costs and savings to other persons were calculated as part of the fiscal note. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

Compliance costs for affected persons:

None. Any costs to comply are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018), which modified the display requirements for off-premise retailers and created an off-premises beer retailer state license. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

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

None. Any anticipated costs or savings to businesses are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018), which modified the display requirements for off-premise retailers and created an off-premises beer retailer state license. Costs and savings were calculated as part of the fiscal note. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

Salvador Petilos, Director

The full text of this rule may be inspected, during regular business hours, at the Office 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 [email protected]

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:

12/17/2018

This rule may become effective on:

12/24/2018

Authorized by:

Sal Petilos, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2019	FY 2020	FY 2021
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

None, any anticipated costs or savings to non-small businesses are a result of the statutory requirements of H.B. 442 (2017) and H.B. 456 (2018). Costs and savings were calculated as part of the fiscal notes. These rule changes do not create additional costs or savings beyond what was anticipated during the legislative process.

 

The head of the department of Alcoholic Beverage Control, Salvador Petilos, has reviewed and approved this fiscal analysis.

 

 

R81. Alcoholic Beverage Control, Administration.

R81-10. Off-Premise Beer Retailers.

R81-10-1. Separation of Alcoholic Beverages from Non-Alcoholic Beverages and Required Signage.

(1) Authority and General Purpose. This rule is pursuant to 32B-7-202[(5)]6(a)(ii) that requires:

(a) an off-premise beer retailer to prominently [post]display a sign in each [in the separate and distinct ]area where beer is sold, an easily readable sign that reads in print that is no smaller than .5 inches, bold type, "These beverages contain alcohol. Please read the label carefully," and requires the commission to define by rule the format of the sign.

(2) Application of the Rule.

(a) Sign requirements.

(i) The sign required by 32B-7-202[(5)](6)(a)(ii) must be:

(A) prominently posted in [the]all area s where beer is sold;

(B) easily readable by the consumer;

(C) in print that is no smaller than .5 inches, bold type.

(ii) The print on the sign must be clearly readable and on a solid, contrasting background.

(iii) The size of the sign, and the size of the print must be sufficiently large so as to be readable, and clearly and unambiguously convey to a consumer that the beverage products displayed in that area contain alcohol. In no instance may the sign be smaller than 8.5 inches x 3.5 inches.

(iv) Additional signs may be necessary depending on the size and type of display area. For example, an entire aisle devoted to beer products may require more than one sign to adequately inform the consumer.

 

R81-10-2. Off-Premise Beer Retailer State License.

(1) Authority and General Purpose. This rule is pursuant to [32B-7-401 that requires:]32B-2-202(1)(c) which requires the commission to set policy by written rules that establishes criteria and for issuing and denying licenses.

[(a) the commission establish a deadline for each off-premise beer retailer in operation on July 1, 2018 to submit an application for an off-premise beer retailer state license.

(2) Application of the Rule.

(a) An off-premise beer retailer in operation on July 1, 2018 must submit a complete application for an off-premise beer state license by October 10, 2018.

(i) An off-premise beer retailer is considered "in operation as of July 1, 2018" if they have all local licensing in place and are open to the public.

(ii) A "complete application" includes the department's application form and all supplemental materials listed on the department's application checklist.

] (2) No license application will be included on the agenda of a monthly commission meeting for consideration for issuance of a license until in accordance with 32B-7-404(2):

(a) The applicant has submitted a complete application to the department in accordance with 32B-7-402; and

(b) the department has completed an investigation pursuit to 32B-7-404(1) and inspected the proposed licensed premises.

(c) A "complete application" includes the department's application form and all supplemental materials listed on the department's application checklist.

(3)(a) All application requirements of Subsection (2)(a) must be filed with the department no later than the 10th day of the month in order for the application to be included on that month's commission meeting agenda unless the 10th day of the month is a Saturday, Sunday, or state or federal holiday, in which case all application requirements of Subsection (2)(a) must be filed on the next business day after the 10th day of the month.

(b) An incomplete application will be returned to the applicant.

(c) A completed application filed after the deadline in Subsection (3)(a) will not be considered by the commission that month, but will be included on the agenda of the commission meeting the following month.

(3) Subsection (2)(a) does not preclude the commission from considering an application for a conditional license under the terms and conditions of 32B-7-406.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [December 28, 2017]2018

Notice of Continuation: May 23, 2018

Authorizing, and Implemented or Interpreted Law: 32B-1-202; 32B-7-202; 32B-7-401