No. 27032 (Amendment): R81-2-2. Liquor Returns, Refunds and Exchanges

DAR File No.: 27032
Filed: 04/01/2004, 11:53
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. Though Section R81-2-2 became effective many years ago, the guidelines for accepting liquor returns, refunds and exchanges at state liquor stores have since been defined more extensively and have been implemented by internal department policy. This rule is proposed to conform with the Rulemaking Act of having these guidelines present in the department's administrative rules. (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:

The proposed amendments to this rule defines "unsaleable products" and "saleable products" and gives specific guidelines for the return, refund and exchange of alcoholic beverages at state liquor stores.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

None--The guidelines in this proposed rule amendment for returning, refunding, and exchanging alcoholic beverages at state liquor stores have been in force for several years. These guidelines were implemented by internal department policy. Relocating the guidelines into the department's administrative rules will have no affect on how these items are handled and will not affect the state's budget.

 

local governments:

None--The provisions of this proposed rule amendment establish guidelines for the return, refund and/or exchanged of liquor to state stores. Local governments will not be fiscally impacted by this rule amendment.

 

other persons:

None--The provisions of this proposed rule amendment establish guidelines for the return, refund and/or exchanged of liquor to state stores. Complying with these provisions will have no fiscal impact on other persons.

 

Compliance costs for affected persons:

None--The only compliance cost for affected persons is the 10% restocking fee for the return of merchandise valued at more than $1,000.

 

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

Since the provisions of this proposed rule have been enforced for many years by internal agency policy, there will be no additional fiscal impact on businesses that return or exchange alcoholic beverages as a result of relocating these provisions into the department's administrative rules.

 

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.

R81-2. State Stores.

R81-2-2. Liquor Returns, Refunds and Exchanges.

(1) Purpose. This rule establishes guidelines for accepting liquor returns, refunds and exchanges.

(2) Application of Rule.

(a) Unsaleable Product. Unsaleable product includes product that is spoiled, leaking, contains foreign matter, or is otherwise defective. The department will accept for refund or exchange liquor merchandise that is [defective, provided the customer returns the bottle with at least 1/2 of the contents in the bottle.]unsaleable subject to the following conditions and restrictions:

(i) Returns of unsaleable merchandise are subject to approval by the store manager to verify that the product is indeed defective.

(ii) The product must be returned within a reasonable time of the date of purchase. Discontinued products may not be returned. Vintages of wine that are not currently being retailed by the department may not be returned.

(iii) All returned product must have the state stamp attached to each bottle.

(iv) No refunds shall be given for wines returned due to spoilage such as corkiness, oxidation, and secondary fermentation, or due to the customer's unfamiliarity with the characteristics of the product. Such wines may only be exchanged for another bottle of the same product. Wine [merchandise ]will not be accepted for refund or exchange if the return is a result of improper extraction of the cork.[

Wine purchased at any specialty wine store may not be exchanged or returned for refund.]

(b) Saleable Product. Store managers are authorized to accept saleable returned merchandise from licensees, single event permit holders, convention groups, and individual customers, subject to the following conditions and restrictions:

(i) Returns of saleable merchandise are subject to approval by the store manager. The customer may receive a refund or exchange of product for the return. Large returns will be accepted from licensees, single event permittees, convention groups and other organizations only if prior arrangements have been made with the store manager.

(ii) Returns should be made within a reasonable amount of time from the date of purchase, and all returned merchandise must be in good condition with a state stamp attached to every bottle. Returns of $50.00 or more shall not be accepted without a receipt. Therefore, it is necessary for cashiers to print a receipt for all purchases of $50.00 or more. Signs should be posted at each cash register informing customers of this requirement. Merchandise shall be refunded at the price paid by the customer, or the current price, whichever is lower.

(iii) Wine and beer, due to their perishable nature and susceptibility to temperature changes, should be accepted back with caution. These products can only be returned if the store manager has personal knowledge of how they have been handled and stored.

(iv) If the total amount of the return is more than $500 the store manager shall fill out a AReturned Merchandise Acknowledgment Receipt@ (LQ-45), and submit a copy to the office. A refund check will be processed at the office and mailed to the customer. Customers need to be informed that it generally takes three to six weeks to process payment.

(v) If the total value of the returned merchandise is more than $1,000, a 10% restocking fee shall be charged on the total amount.

(c) Unreturnable Products. The following items may not be returned:

(i) All limited item wines - wines that are available in very limited quantities.

(ii) Any products that have been chilled, over-heated, or label-damaged.

(iii) Outdated (not listed on the department's product/price list) and discontinued products.

(iv) Merchandise purchased by catering services.

(d) A cash register return receipt shall be completed for each product return. The following information must be on the receipt: the customer's name, address, telephone number, driver's license number, and signature. The cashier must attach the receipt to the cash register closing report.

 

KEY: alcoholic beverages

[July 1, 2002]2004

Notice of Continuation November 16, 2001

32A-1-107

32A-1-301 to 32A-1-305