No. 27034 (Amendment): R81-2-8. Accepting Checks as Payment for Liquor

DAR File No.: 27034
Filed: 04/01/2004, 12:21
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. The provisions in this proposed rule amendment were written in internal department policy but are now being proposed as an administrative rule to conform with 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:

This proposed rule establishes guidelines for accepting checks and traveler's checks from individuals and licensees for the purchase of liquor in state liquor stores.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

The Department of Alcoholic Beverage Control (DABC) has been accepting checks from individuals and licensees for the purchase of liquor for several years. To this point, however, the guidelines for accepting checks have been written in internal agency policy. The primary cost to the state budget of regulating department check cashing practices is the cost of contracting the services of a check collection company who charges the department a percentage on the total dollar amount of all checks cashed to provide the service of verifying all checks and collecting on returned checks.

 

local governments:

None--Liquor sales in the state of Utah are handled exclusively by state government. The acceptance of checks for the purchase of liquor has no effect on local governments.

 

other persons:

None--Persons who use a personal or business check to purchase liquor at state stores will experience no fiscal impact unless their check is returned unpaid. In that event, the person will be required to repay the department the amount of the check plus an additional service fee.

 

Compliance costs for affected persons:

The persons affected by this proposed rule are customers who purchase liquor in state stores. The ability to pay for liquor with checks involves no compliance costs unless a check is returned unpaid. Then a service fee will be assessed to the person.

 

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

The DABC has accepted checks from licensees and other businesses at the discretion of liquor store managers for many years. Establishing the department's long standing policies in administrative rule will have no fiscal impact on such businesses.

 

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.

R81-2-8. Accepting Checks as Payment for Liquor.

(1) A state liquor store may accept a check as payment for liquor from an individual customer only under the following conditions:

(a) The check may be drawn only on a United States, Canadian, Puerto Rican, or U.S. Virgin Islands financial institution.

(b) The following must appear on the check:

(i) name (must be imprinted);

(ii) address (if post office box, the full address must be written in); and

(iii) telephone number (may be hand-written).

(c) The check must be made out to the Department of Alcoholic Beverage Control, or D.A.B.C. (no two-party checks).

(d) The check must be made out for the exact amount of the purchase, and all checks from the individual may not exceed $400 per day.

(e) An acceptable form of identification is required for any check written over $50.00, and may be required at the discretion of the cashier or store manager for any check written under $50.00. Acceptable forms of identification include those listed in R81-2-4.

(2) A state liquor store may accept a check as payment for liquor from a licensee only under the following conditions:

(a) The check must be imprinted with the name of the licensee's business, its business address, and its telephone number.

(b) The check must be made out to the Department of Alcoholic Beverage Control, or D.A.B.C. (no two-party checks).

(c) The check must be made out for the exact amount of the purchase.

(3) A state liquor store may accept a business or company check as payment for liquor only under the following conditions:

(a) The check may be drawn only on a United States, Canadian, Puerto Rican, or U.S. Virgin Islands financial institution.

(b) The check must be imprinted with the name of the business or company, its business address, and its telephone number.

(c) The check must be made out to the Department of Alcoholic Beverage Control, or D.A.B.C. (no two-party checks).

(d) The check must be made out for the exact amount of the purchase.

(e) Further identification is not required.

(f) The department may place a maximum limit on the total dollar amount in checks a business or company may tender to the department in a 24 hour period.

(4) A state liquor store may accept a traveler's check as payment for liquor under the following conditions:

(a) Traveler's checks shall be in "US Dollars".

(b) Each traveler's check shall have been previously signed by the holder of the check at the issuing bank or company. The check shall then be signed a second time in front of the DABC store employee that is handling the sale. The store employee shall compare the two signatures to verify that the signatures match, and shall otherwise examine the check to verify its validity.

(c) Traveler's checks shall be made out to the Department of Alcoholic Beverage Control or "D.A.B.C."

(d) When accepting a traveler's check for $50.00 or more, the store employee shall:

(i) call the issuing bank or company and receive an authorization, and authorization number; and

(ii) check the identification of the customer. Acceptable forms of identification include those listed in R81-2-4.

(e) On the upper, left hand corner of a traveler's check for $50.00 or more, the employee shall write:

(i) the authorization number from the issuing bank or company;

(ii) the type of identification used including expiration date and individual's identification number; and

(iii) the store employee's initials.

 

KEY: alcoholic beverages

[July 1, 2002]2004

Notice of Continuation November 16, 2001

32A-1-107

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