No. 31328 (Amendment): R81-3-9. Promotion and Listing of Products

DAR File No.: 31328
Filed: 04/30/2008, 09:38
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed rule amendment corrects an omission in the present rule.

Summary of the rule or change:

The current rule only permits wineries to post product price lists on their Type 5 package agency premises. This proposed amendments adds distilleries and breweries to the manufacturers that may post the price lists.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None. The proposed rule amendment only corrects an omission in the current rule and will have no fiscal impact on the state budget.

local governments:

None--Implementation of this rule amendment will have no fiscal impact on local governments since local governments do not regulate operations of Type 5 package agencies.

small businesses and persons other than businesses:

None--Most local alcoholic beverage manufacturing operations are small businesses. Though this rule amendment gives them the opportunity to improve their package agency operations, it is unlikely it will have an actual fiscal impact on the business since the product price list may be a simple typed list of products and prices. The rule amendment proposal will not fiscally affect other persons.

Compliance costs for affected persons:

The permission this proposed rule amendment gives to Type 5 package agencies to post product price lists is not mandated. If a Type 5 package agency decides to take advantage of the new rule, the price list posting can be as simple as a typed list of products and prices and should have no significant cost.

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

This rule is being proposed to correct an omission that only permitted wineries to post their product price lists in their Type 5 package agencies. Distilleries and breweries should be permitted to do the same. Hopefully, being permitted to post the price lists will help these small alcoholic beverage producers to better market their products to the public. 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.

R81-3-9. Promotion and Listing of Products.

(1) An operator or employee of a Type 1, 2, or 3 package agency, as defined in R81-3-1, may not promote a particular brand or type of liquor product while on duty at the package agency. An operator or employee may inform a customer as to the characteristics of a particular brand or type of liquor, provided the information is linked to a comparison with other brands or types.

(2) A package agency may not advertise alcoholic beverages on billboards except:

(a) a Type 1 package agency, as defined in R81-3-1, may provide informational signs on the premises of the hotel or resort directing persons to the location of the hotel's or resort's Type 1 package agency;

(b) a Type 2 package agency, as defined in R81-3-1, may provide informational signs on the premises of its business directing persons to the location of the Type 2 package agency within the business; and

(c) a Type 5 package agency, as defined in R81-3-1, may advertise the location of the winery, distillery, or brewery and the Type 5 package agency, and may advertise the alcoholic beverage products produced by the winery, distillery, or brewery and sold at the Type 5 package agency under the guidelines of R81-1-17 for advertising alcoholic beverages.

(3) A package agency may not display price lists in windows or showcases visible to passersby except:

(a) a Type 1 package agency, as defined in R81-3-1, may provide a price list in each guest room of the hotel or resort containing the code, number, brand, size and price of each item it carries for sale at the Type 1 package agency;

(b) a Type 4 package agency, as defined in R81-3-1, may provide a price list of the code number, brand, size, and price of each item it carries for sale to the tenants or occupants of the specific leased, rented, or licensed rooms within the facility; and

(c) a Type 5 package agency, as defined in R81-3-1, may provide a price list on the premises of the winery, [winery tasting room,]distillery, or brewery, authorized tasting room, and at the entrance of the Type 5 package agency of the code, number, brand, size, and price of each liquor item it carries for sale at the Type 5 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