No. 27038 (Amendment): R81-3-5. Special Orders of Liquor by Public

DAR File No.: 27038
Filed: 04/01/2004, 02:12
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Administrative Rulemaking Act (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 this rule was in effect prior to this amendment to the Act, many of the details of the special orders process were written as internal department policies. The amendments to this rule are proposed to conform with the 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:

Section R81-3-5 was written as a department rule several years ago. However, over the years changes have been made to how the public goes about placing special orders for alcoholic beverage products with state-contracted package agencies. The requirements for placing special orders are much more specific now than when the rule was originally written, specifically in defining how the order form is filled out, how the product is delivered, and the conditions of purchasing the product from the manufacturer.

 

State statutory or constitutional authorization for this rule:

Section 31A-1-107

 

Anticipated cost or savings to:

the state budget:

None--The Department of Alcoholic Beverage Control (DABC) has always allowed persons and/or groups to order alcoholic beverage products that are not normally carried in the state. This rule amendment is proposed to clarify the order and delivery process more definitively. Nothing in this process will effect a cost or savings to the state budget.

 

local governments:

None--Since special orders of alcoholic beverages are handled exclusively through the DABC and its contracted package agencies, there is no fiscal impact on local governments.

 

other persons:

None--The proposed amendments to this rule are of a nature that define the process of placing special alcoholic beverage orders. No part of this proposed amendment alters the prices charged for these products or requires an additional cost to other persons.

 

Compliance costs for affected persons:

None--The amendments to this rule are proposed for the purpose of better defining the ordering and delivery procedures when placing a special order for alcoholic beverages. Since these procedures have been required by internal agency policy for some time, amending the rule will not create additional compliance costs for affected persons.

 

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

This proposed rule amendment does not affect the price of alcoholic beverages, it only defines the procedures by which a person or group may place a special order for alcoholic beverage products from a contracted package agency. Businesses will experience no fiscal impact from this proposed rule amendment.

 

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.

R81-3. Package Agencies.

R81-3-5. Special Orders of Liquor by Public.

[A special order item is any item not listed in the department's product/price list. Only type 3 package agencies may process special order requests.](1) Purpose. A special order product is any product not listed on the department's product/price list. This rule outlines the procedures for accepting, processing, ordering and disbursing special orders.

(2) Application of Rule.

(a) Only type 2 and 3 package agencies may process special order requests.

(b) Any individual may place a special order at any type 2 or 3 package agency. Special orders may be placed [for]by groups of individuals[ or], organizations, or retail licensees either at a type 2 or 3 package agency or with the purchasing division of the department[,]. A special order shall be processed as follows:

[(1)](i) A special order form must be filled out [on every special order item.]and signed by the customer for each special order product purchased. The package agency shall forward the form to the department's purchasing division.

[(2)](ii) Special orders may be ordered only by the case, not by the bottle. There is no handling fee on special orders[, but a deposit of twenty-five dollars is required on special orders of four or more cases].

(iii) Customers should be advised to allow at least two months between processing and delivery of a special order.

(iv) Special orders for beer will be subject to availability and according to the distributor's shipping criteria.

(v) If a group, organization, or retail licensee places a special order, they may designate a particular package agency or state store to which they want the special order items to be sent. They shall include the name and telephone number of the individual who will pick up and pay for the special order product at that location.

(vi) A special order must include the product name and distributor or shipper.

(vii) The department's special order buyer shall obtain a retail bottle price and call the customer and/or package agent for clearance to proceed with the order.

[(3)](viii) When the special order arrives, the package agency or state store to which the special order has been sent shall immediately notify the customer, and the customer shall pick up the order as soon as possible after notification. The customer shall pay for and pick up the entire special order. The package agency or state store is not allowed to warehouse special ordered products. All merchandise must be cleared from the system before a reorder on that special order item is allowed.

[(4) Special order requests must include the product name and distributor or shipper.](ix) Special orders may only be placed by customers. Package agencies may not place a special order unrelated to a particular customer as a means to sell unlisted products to the general public.

(x) Special orders of beer, wine or spirits with lower prices than quoted to the department on products handled by or similar to products handled by the department will be allowed only on two conditions:

(A) the department has the opportunity to purchase the same product at the same price; or

(B) the individual, group of individuals, organization, or retail licensee name is part of the design of the front label found on the product.

 

KEY: alcoholic beverages

[August 1, 2003]2004

Notice of Continuation December 18, 2001

32A-1-107