No. 27043 (Amendment): R81-3-18. Type 4 Package Agency Room Service - Mini-Bottle/187 ml Wine Sales

DAR File No.: 27043
Filed: 04/01/2004, 03:15
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. This rule amendment is being 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:

In 1990, the legislature banned the sale of liquor in containers smaller than 200 ml. However, the legislature gave the Alcoholic Beverage Control (ABC) Commission the authority to allow smaller bottles at their discretion and under limited circumstances. Several years ago, the ABC Commission made the decision to allow mini-bottles of liquor and 187 ml bottles of wine to be sold as part of a hotel or resort's room service in their type 4 package agencies. This proposed rule establishes in administrative rule the guidelines by which a hotel or resort with a type 4 package agency may purchase and resell liquor mini-bottles and 187 ml wine bottles.

 

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 merely establishes the guidelines by which a type 4 package agency may sell mini-bottles of liquor or wine in 187 ml containers in room service. The passage of this rule amendment will add no cost or savings to the state budget.

 

local governments:

None--Liquor in Utah is handled by the Department of Alcoholic Beverage Control (DABC) and state government. Local governments are not affected fiscally by the sale of mini-bottles and 187 ml wine bottles by type 4 package agencies.

 

other persons:

None--The regulations in this proposed rule have been enforced by policy for several years. The only difference is that the regulations will now be enforced by administrative rule instead of policy.

 

Compliance costs for affected persons:

None--Because these regulations have been in force for several years by department policy, relocating them in administrative rule will create no further compliance costs.

 

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

Because only individuals who rent sleeping rooms in hotels and resorts may order mini-bottles and 187 ml wine bottles through room service, no businesses will be directly affected by this proposed rule amendment. The possible exception to this statement is that alcoholic beverage manufacturers and suppliers may experience a small increase in revenues from the sale of these 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.

R81-3. Package Agencies.

R81-3-18. Type 4 Package Agency Room Service - Mini-Bottle/187 ml Wine Sales.

(1) Purpose. Pursuant to 32A-1-116, the department may not purchase or stock alcoholic beverages in containers smaller than 200 milliliters. except as otherwise allowed by the commission. The commission hereby allows the limited use of 50 milliliter "mini-bottles" of distilled spirits and 187 milliliter bottles of wine for room service sales by Type 4 package agencies located in hotels and resorts. The following conditions are imposed to ensure that these smaller bottle sales are limited to patrons of sleeping rooms, and are not offered to the general public.

(2) Application of Rule.

(a) The department will not maintain a regular inventory of distilled spirits and wine in the smaller bottle sizes, but will accept special orders for these products from a Type 4 package agency. Special orders may be placed with the department's purchasing division, any state store, or any Type 2 or 3 package agency.

(b) The Type 4 package agency must order in full case lots, and all sales are final.

(c) If the hotel/resort has a Type 1 package agency with Type 4 privileges, the smaller bottle sized products must be stored in a secure area separate from the Type 1 agency inventory.

(d) Sale and use of alcohol in the smaller bottle sizes is restricted to providing room service to guests in sleeping rooms in the hotel/resort, and may not be used for other purposes, or be sold to the general public.

(e) Failure of the Type 4 package agency to strictly adhere to the provisions of this rule is grounds for the department to terminate its contract with the Type 4 package agency.

 

KEY: alcoholic beverages

[August 1, 2003]2004

Notice of Continuation December 18, 2001

32A-1-107