No. 27044 (Amendment): R81-3-19. Credit Cards

DAR File No.: 27044
Filed: 04/01/2004, 03:33
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 amendments to this rule are 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:

This proposed rule amendment establishes by administrative rule the guidelines used by sales clerks in contracted package agencies when accepting credit cards for the purchase of liquor.

 

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 allowed package agencies to accept credit cards as legal tender for several years. When this practice was first established by internal department policy, there was a one-time cost to DABC's budget for credit card reading equipment of approximately $15,000. Since then there have been nominal costs for maintenance of that equipment. It is anticipated that these maintenance costs will be on-going. Otherwise, there are no other anticipated costs or savings to the state budget.

 

local governments:

None--Liquor sales in the state of Utah are handled by state government. The acceptance of credit cards in package agencies does not fiscally affect local governments.

 

other persons:

None--Liquor sales in the state of Utah are handled by state government. The acceptance of credit cards in package agencies does not fiscally affect other persons.

 

Compliance costs for affected persons:

None--The affected persons in this case include individuals and businesses that purchase liquor. Their ability to use credit cards for those purchases, does not fiscally impact these persons.

 

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

The concept of allowing businesses (excluding licensees) to use credit cards to purchase liquor has been accepted whole-heartedly in the state of Utah. Relocating the guidelines for credit card sales into the department's administrative rules will have no anticipated fiscal impact on these 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.

R81-3-19 Credit Cards.

(1) Purpose. This rule explains the procedures to be followed by consignment package agents in accepting credit cards for the purchase of alcoholic beverages.

(2) Application of Rule.

(a) Licensee purchases may not be paid by credit card. The department will accept only checks and cash from licensees.

(b) Refunds, or exchanges of products of unequal value, will be handled by crediting the customer=s credit card account. The cash register must be balanced by doing a return at the register.

(c) The cashier shall examine the security features of the card such as signatures, account numbers, expiration date, hologram, etc., before accepting any card.

(d) No sale may be made without the credit card. Merely having the credit card number available is not acceptable.

(e) All credit cards must be signed by the card holder.

(f) Customers may not use another person's credit card, including their spouse's card.

(g) Credit card receipts contain confidential information that needs to be safeguarded. Cashiers should not throw them in the trash. Consignment package agents and their employees should consult their regional manager concerning proper storage and disposal of such receipts.

(h) If for any reason the credit card cannot be scanned, the credit card number should be hand keyed into the hypercom or keyboard. An imprinted copy of the credit card must then be made. The imprinted copy must be signed by the card holder.

 

KEY: alcoholic beverages

[August 1, 2003]2004

Notice of Continuation December 18, 2001

32A-1-107