No. 31291 (Amendment): R81-3-1. Definitions

DAR File No.: 31291
Filed: 04/29/2008, 11:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This is a housekeeping amendment to correct the oversight of not including distilleries and breweries in the definition of a Type 5 package agency.

Summary of the rule or change:

This proposed rule amendment adds distilleries and breweries to alcoholic beverage manufacturers who may have a Type 5 package agency of their premises.

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 includes distilleries and breweries to the list of manufacturers who may apply for a package agency on their premises. Changing the definition does not fiscally affect the state.

local governments:

None--Package agency contracts are issued by the Department of Alcoholic Beverage Control (DABC) and changing the definition of who may qualify for the contract does not affect local governments.

small businesses and persons other than businesses:

Most local manufacturers operate small businesses. Wineries have always been permitted to operate a package agency on the premises. With this amendment, distilleries and breweries who choose to apply for a Type 5 package agency contract will be assessed a $100 application fee and required to post a compliance bond. Other persons are not affected by this proposed rule amendment.

Compliance costs for affected persons:

Wineries have always been permitted to operate a package agency on the premises. With this amendment, distilleries and breweries who choose to apply for a Type 5 package agency contract will be assessed a $100 application fee and required to post a compliance bond.

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

Utah has licensed breweries for a number of years, but has only recently licensed its first distillery. It is only fair for these manufacturers to be able to sell their products on the premises just as wineries have always been allowed to do. Dennis R. Kellen, Director

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:

06/16/2008

This rule may become effective on:

06/23/2008

Authorized by:

Dennis R. Kellen, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-3. Package Agencies.

R81-3-1. Definition.

Package agencies are retail liquor outlets operated by private persons under contract with the department for the purpose of selling packaged liquor from facilities other than state liquor stores for off premise consumption. Package agencies are classified into five types:

Type 1 - A package agency under contract with the department which is operated in conjunction with a resort environment (e.g., hotel, ski lodge, summer recreation area).

Type 2 - A package agency under contract with the department which is in conjunction with another business where the primary source of income to the operator is not from the sale of liquor.

Type 3 - A package agency under contract with the department which is not in conjunction with another business, but is in existence for the sole purpose of selling liquor.

Type 4 - A package agency under contract with the department which is located within a facility approved by the commission for the purpose of selling and delivering liquor to tenants or occupants of specific rooms which have been leased, rented, or licensed within the same facility. A type 4 package agency shall not be open to the general public.

Type 5 - A package agency under contract with the department which is located within a winery, distillery, or brewery that has been granted a [winery]manufacturing license by the commission.

The commission may grant type 4 package agency privileges to a type 1 package agency.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [June 1, 2004]2008

Notice of Continuation: September 6, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-107