No. 27040 (Amendment): R81-3-14. Type 5 Package Agencies

DAR File No.: 27040
Filed: 04/01/2004, 02:32
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. Most regulations for type 5 package agencies have been enforced by internal department policies in the past. This rule amendment is proposed 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:

When Section R81-3-14 was originally written, the type 5 package agency was a new concept. At that time Section R81-3-14 provided little more than a definition. Over time, operational questions arose and it became apparent that guidelines needed to be in place. These guidelines were written and have been enforced through internal agency policy. Though the guidelines have been in effect for several years, the Department of Alcoholic Beverage Control (DABC) is now proposing to place them in administrative rule to meet the requirements enacted by the amendments to the Rulemaking Act.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

None--This proposed rule amendment moves the guidelines for operating a type 5 package agency from agency policy to administrative rule. These guidelines have been enforced for several years and basically regulate how these agencies store, sell, and distribute the alcoholic beverage products they produce at their own location. Amending this rule will have no fiscal impact on the state budget.

 

local governments:

None--Local governments are not involved in regulating type 5 package agencies, therefore, amending this rule will have no fiscal impact on local governments.

 

other persons:

None--This proposed rule amendment regulates how liquor is stored, sold, and distributed in type 5 package agencies. These regulations have been enforced by department policy for several years. Passage of these amendments will affect no additional cost or savings to other persons.

 

Compliance costs for affected persons:

None--This proposed rule amendment regulates how type 5 package agencies may store, sell, and distribute the alcoholic beverage products they produce at their own location. Since these regulations have been enforced by internal department policy for a number of years, the passage of these amendments will add no additional compliance costs for affected persons.

 

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

This proposed rule primarily regulates how liquor is stored, sold and distributed in type 5 package agencies. Since a type 5 agency is permitted to sell only its own product, most of those purchasing these products will be individuals, not businesses. Therefore, passage of this proposed rule amendment should have little or no fiscal impact on 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.

R81-3. Package Agencies.

R81-3-14. Type 5 Package Agencies.

(1) Purpose. A type 5 package agency is for the limited purpose of allowing a winery to sell at its winery location the packaged wine product it actually produces to the general public for off-premise consumption. This rule establishes guidelines and procedures for type 5 package agencies.

(2) Application of Rule.

(a) The package agency must be located on the winery premises at a location approved by the commission.

(b) [It]The package agency may only sell products produced at the winery, and may not carry the products of other alcoholic beverage manufacturers.

(c) The product produced by the winery and sold in the type 5 package agency need not be shipped from the winery to the department warehouse and then back to the package agency. [However, the department shall establish, by written policy, any requirements for inventory and sales accounting, record-keeping, state labeling, payment of taxes and mark-up, etc. of the product.]The bottles for sale may be moved directly from the winery storage area to the package agency provided that proper record-keeping is maintained on forms provided by the department. Records required by the department shall be kept current and available to the department for auditing purposes. Records must be maintained for at least three years. The package agency shall submit to the department a completed monthly sales report form which specifies the variety and number of bottles sold from the package agency. This report must be submitted to the department within the first five working days of the month. A club or restaurant purchases form must be filled out for every licensee purchase.

(d) Direct deliveries to licensees are prohibited. Wines must be purchased and picked up by the licensees or their designated agents at the Type 5 package agency.

(e) The type 5 package agency shall follow the same laws, rules, policies, and procedures applicable to other package agencies as to the retail price of products.

(f) The days and hours of sale of the type 5 package agency shall be in accordance with 32A-3-106(10).

 

KEY: alcoholic beverages

[August 1, 2003]2004

Notice of Continuation December 18, 2001

32A-1-107