DAR File No. 43944

Alcoholic Beverage Control, Administration

Section R81-1-23

Sales Restrictions on High Demand Products of Limited Availability

Notice of Proposed Rule

(Amendment)

DAR File No.: 43944
Filed: 07/31/2019 04:13:05 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

These amendments are necessary to establish the procedure for allocating high demand products of limited availability.

Summary of the rule or change:

Section 32B-1-103 requires that alcoholic product control be operated as a public business using sound management principles. Section 32B-2-202 authorizes the Department of Alcoholic Beverage Control (Department) to control liquor merchandise inventory. These rule amendments authorize the Department to make policies governing procedures for fair distribution of high demand products including policies for a drawing.

Statutory or constitutional authorization for this rule:

• Section 32B-1-103
• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

These rule amendments do not create additional cost or savings.

local governments:

These rule amendments do not create additional cost or savings.

small businesses:

These rule amendments do not create additional cost or savings.

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

These rule amendments do not create additional cost or savings.

Compliance costs for affected persons:

There are no fees associated with this process. These rule amendments do not create additional cost or savings.

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

These rule amendments are necessary to establish the procedure for allocating high demand products of limited availability. The procedure will result in a fairer distribution of high demand products. There are no fees associated with this process so no additional cost or savings are realized.

Salvador Petilos, Executive 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 vickieashby@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:

09/16/2019

This rule may become effective on:

09/23/2019

Authorized by:

Sal Petilos, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2020	FY 2021	FY 2022
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--These amendments do not create additional cost or savings. There are no fees associated with this process

 

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

 

 

R81. Alcoholic Beverage Control, Administration.

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

R81-1-23. Sales Restrictions on High Demand Products of Limited Availability.

(1) Authority and Purpose. This rule is pursuant to Section 32B-1-103, which requires that alcoholic product control be operated as a public business using sound management principles, and 32B-2-202, which authorizes the Department to control liquor merchandise inventory. Some alcoholic beverage products[, especially wines,] are of very limited availability from their manufacturers and suppliers to retailers including the department. When the department perceives that customer demand for these limited products may exceed the department's current and future stock levels, the department, as a public agency, may place restrictions on their sales to ensure their fair distribution to all consumers. This also encourages manufacturers and suppliers to continue to provide their products to the department. This rule establishes the procedure for allocating products of limited availability.

(2) Application of Rule.

(a) The purchasing and wine divisions of the department shall identify those products that are of limited availability and designate them as "Limited /Allocated Status" ("L Status") items. The products shall be given a special "L Status" product code designation.

(b) "L Status" products on the department's price list, in stock, or on order, do not have to be sold on demand. Their sales to the general public and to licensees and permittees may be restricted. The purchasing and wine divisions of the department may issue system-wide restrictions directing the allocation of such products which may include placing limits on the number of bottles sold per customer.

(c) Signs noting this rule shall be posted in state stores and package agencies that carry "L Status" products.

(3) The Department may make policies governing procedures for the fair distribution of high demand products, including policies for a drawing, when the director determines a special procedure is appropriate.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [December 24, 2018]2019

Notice of Continuation: May 2, 2016

Authorizing, and Implemented or Interpreted Law: 32B-2-201(10); 32B-2-202; 32B-2-204; 32B-2-206; 32B-3-203(3)(c); 32B-3-205(2)(b); 32B-5-304; 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)