No. 27045 (Amendment): R81-4D-13. On-Premise Banquet License Room Service - Mini-Bottle/187 ml Wine Sales

DAR File No.: 27045
Filed: 04/01/2004, 03:39
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 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:

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 approve the use of "mini-bottles" and 187 ml wine containers at their discretion and under limited circumstances. In 2003, the Legislature created a new liquor license type, the On-Premise Banquet License, to allow hotels, resorts, sports arenas and convention centers to store, sell, and allow consumption of liquor in connection with that entity's banquet or room service activities. This proposed rule establishes guidelines for the use of mini-bottles and 187 ml wine bottles as part of the room service facilities in hotels and resorts.

 

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 hotel/resort may use mini-bottles and 187 ml wine bottles in connection with room service. The passage of this rule amendment will add no cost or savings to the state budget.

 

local governments:

None--Liquor sales in the state of Utah are handled exclusively by state government. Local governments are not fiscally affected by the sale of mini-bottles and 187 ml wine bottles by room service facilities in hotels and resorts.

 

other persons:

The "other persons" who are affected by this proposed rule amendment are the aggregate of those individuals who rent sleeping rooms in hotels and resorts and enjoy room service in those facilities. The ability to purchase liquor or wine in single-serving containers rather than having to buy a full-size container is appealing from a monetary standpoint. In this event, there could be considerable savings if a person chooses to have only one drink.

 

Compliance costs for affected persons:

Compliance costs to hotels and resorts are minimal and will be primarily realized in the necessity of having to place special orders for mini-bottles and 187 ml wine bottles. These facilities will also be required to include single-serving containers on their room service price lists and maintain inventory and sales records.

 

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

Room service in hotels and resorts is available for the convenience of individuals who rent sleeping rooms. It is unlawful for these facilities to use mini-bottles and 187 ml wine portions in connection with catered events contracted with large groups and businesses. Therefore, the passage of this proposed rule amendment will have no fiscal impact on businesses. The only fiscal impact would be in the form of possible revenue increases enjoyed by manufacturers that supply liquor to the state of Utah.

 

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.

R81-4D. On-Premise Banquet License.

R81-4D-13. On-Premise Banquet License 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 on-premise banquet licensees 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 an on-premise banquet licensee. Special orders may be placed with the department's purchasing division, any state store, or any Type 2 or 3 package agency.

(b) The on-premise banquet licensee must order in full case lots, and all sales are final.

(c) 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 banquet catering services, or be sold to the general public.

(d) Failure of the on-premise banquet licensee to strictly adhere to the provisions of this rule is grounds for the department to take disciplinary action against the on-premise banquet licensee.

 

KEY: alcoholic beverages

[August 1, 2003]2004

32A-1-107

32A-4 Part 4