No. 27030 (Amendment): R81-1-23. Sales Restrictions on Products of Limited Availability

DAR File No.: 27030
Filed: 04/01/2004, 11:21
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Administrative Rulemaking Act was amended in 2003 to provide that an agency's written statements that restrict the legal rights of a public class of persons or another agency must be in rule and go through the rulemaking process. Originally adopted as an internal department policy, this rule amendment is now proposed to conform to the Rulemaking Act. (DAR NOTE: The Utah Administrative Rulemaking Act was amended by S.B. 30 (2003), which is found at UT L 2003 Ch 197, and was effective May 5, 2003.)

 

Summary of the rule or change:

Some alcoholic beverages, especially wines, are of very limited availability from their manufacturers and suppliers to retailers including the Department of Alcoholic Beverage Control (DABC). This proposed rule establishes the authority and guidelines for the department to limit the distribution of those products to licensees, permittees, and the general public.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

None. The alcoholic products involved in this proposed rule amendment will be purchased and sold by the state of Utah, and the state's costs and revenues will be unchanged regardless of who buys the products. The proposed rule only establishes guidelines for seeing that all residents in the state of Utah have an equal opportunity to enjoy the products that are available in limited quantities.

 

local governments:

None--The purchase and sale of liquor in the state of Utah is handled exclusively by the Department of Alcoholic Beverage Control and does not involve local governments.

 

other persons:

Restricting the allocation of certain limited alcoholic beverage products may have a fiscal impact on some liquor licensees who would like to purchase these products for resale in their establishments. But, the department is of the opinion that limiting the allocation of these products to make them available to a broader customer base merits the limited allocation.

 

Compliance costs for affected persons:

This proposed rule amendment involves no compliance costs to affected persons. It only establishes guidelines for the department to allocate the sales of certain limited alcoholic beverage product.

 

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

From time to time a licensee will want to purchase most or all of a particular limited alcoholic beverage item. That licensee's business may be somewhat impacted by being able to buy only a certain allotment of that product. However, the DABC feels this inconvenience is justified by giving all of Utah's citizens the opportunity to enjoy their share of these limited items.

 

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:

Sharon Mackay at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at [e-mail]

 

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:

05/17/2004

 

This rule may become effective on:

05/18/2004

 

Authorized by:

Kenneth F. Wynn, Director

 

 

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

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

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

(1) Purpose. 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.

 

KEY: alcoholic beverages

[August 1, 2003]2004

Notice of Continuation December 26, 2001

32A-1-107

32A-1-119(5)(c)

32A-3-103(1)(a)

32A-4-103(1)(a)

32A-4-203(1)(a)

32A-5-103(3)(c)

32A-6-103(2)(a)

32A-7-103(2)(a)

32A-8-103(1)(a)

32A-9-103(1)(a)

32A-10-203(1)(a)

32A-11-103(1)(a)