No. 27046 (Amendment): R81-6-6. Religious Wine Permits

DAR File No.: 27046
Filed: 04/01/2004, 03:43
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 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:

Title 32A, Chapter 6, Part 5, provides for churches to hold a special use permit that allows them to buy wine at a reduced price when the wine will be used as part of the church's religious services. This proposed rule amendment establishes guidelines for the pricing, ordering and distribution of these wines.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

The pricing structure for holders of a religious wine permit has been in effect for several years by internal department policy. Therefore, the passage of this proposed rule amendment will not alter costs to the state budget, only define them in administrative rule. The proposed rule amendment establishes in rule a price of "cost + shipping" for religious wines to permit holders. This means the usual 96.742% markup (which includes all taxes) will not be charged on these items and will, therefore, not be a revenue to the state of Utah.

 

local governments:

None--Packaged liquor sales in Utah are handled exclusively by state government. The sale of wine for church services will not fiscally affect local governments.

 

other persons:

Churches that hold a permit to purchase wine for church services have been exempt from paying the state markup on wine for many years. The passage of this proposed rule amendment will not alter these savings, but will establish this pricing schedule in administrative rule.

 

Compliance costs for affected persons:

The guidelines for the purchase of religious wines by permit holders have been written in internal department policy for many years. The passage of this proposed rule amendment will not alter the guidelines, only move them to administrative rule. No additional compliance costs are anticipated.

 

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

This proposed rule amendment only affects religious wine permit holders and should have 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.

R81-6. Special Use Permits.

R81-6-6. Religious Wine Permits.

(1) Purpose. This rule outlines the procedures for a religious wine permit holder to purchase wine for religious purposes, and the procedures department personnel shall follow to process the purchase.

(2) Application of Rule.

(a) The permit holder may purchase any generally listed wine directly off of the shelf of any state store or package agency at a charge of cost plus freight. The cashier shall first verify that the purchasing religious organization is a holder of a permit on file in the department's licensee/permittee data base. The cashier shall determine the cost plus freight price of the wine. The wine may be purchased only with cash or a check belonging to the religious organization, and not with an individual's personal check or credit card. Checks shall be deposited in the ordinary course of business with other checks. If wines are purchased by the case, the cases must be opened and the individual bottles marked with the state label.

(b) The permit holder may order wine for religious purposes directly from the winery and have the winery ship the wine prepaid at a charge of cost plus freight to the department's central administrative warehouse. The warehouse shall deliver the wine to the state store or package agency nearest to the permit holder's church. The state store or package agency shall open any cases and mark individual bottles with the state label. The state store or package agency shall notify the permit holder when the product is available for pick-up.

(c) The permit holder may place a special order for wines not generally listed by the department only if the winery will not sell directly to the permit holder. Special orders may be placed only with the special order clerk at the department's administrative office. No special orders may be placed with a state store or package agency. The special order clerk shall verify that the purchasing religious organization is on file in the department's licensee/permittee data base, place the order, assign it a special order code number, assess a charge of cost plus freight, and have the wine delivered to the state store or package agency nearest to the permit holder's church. The state store or package agency shall notify the permit holder when the product is available for pick-up. All procedures for processing the purchase that are outlined in (a) above shall be followed by the state store or package agency to complete the sale.

 

KEY: alcoholic beverages

[August 1, 2003]2004

Notice of Continuation December 18, 2001

32A-1-107