No. 31329 (Amendment): R81-3-13. Operational Restrictions

DAR File No.: 31329
Filed: 04/30/2008, 10:09
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement changes in the statute as a result to the passage of S.B. 167 (2008). (DAR NOTE: S.B. 167 (2008) is found at Chapter 266, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

S.B. 167 which was passed by the 2008 Legislature, changed the law to permit package agencies that are not operated in a similar manner to a state liquor store to be open on election days. Package agencies that are operated in a similar manner to state liquor stores must continue to close on elections days. This proposed rule amendment brings the rule in line with the new law.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

Package agencies operated throughout the state are contracted through the Department of Alcoholic Beverage Control (DABC) to individual operators. The state realizes revenues from all liquor sold in Utah, including revenues generated by package agencies since all liquor must be purchased from DABC. Though it is difficult to calculate the exact dollar figure, it stands to reason that staying open on election days will increase revenues since these package agencies will enjoy more open-for-business days.

local governments:

Local governments receive varying allotments from the state on revenues from liquor sold in Utah. Though difficult to calculate an exact dollar amount, it is reasonable to surmise that additional sales days will increase these allotments.

small businesses and persons other than businesses:

Virtually all package agencies in Utah are operated as small businesses. Package agencies that may now be open on election days will likely have increased man-hour and other expenses. They should also have increased revenues to offset the costs. The passage of this rule amendment should have no fiscal impact on other persons.

Compliance costs for affected persons:

Package agencies that may now be open on election days will likely have increased man-hour and other expenses. It is difficult to calculate the exact dollar amount of these costs since operating expenses vary from one package agency to another.

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

Many businesses purchase liquor from package agencies located through out the state. Most, however, do not make purchases from the package agency types that are affected by the new law. That being the case, it is not anticipated that the new law or this proposed rule amendment will have a significant fiscal impact on Utah's businesses. 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.

R81-3-13. Operational Restrictions.

(1) Hours of Operation.

(a) Type 1, 2, and 5 package agencies may operate from 10:00 a.m. until 12:00 midnight, Monday through Saturday. However, the actual operating hours may be less in the discretion of the package agent with the approval of the department. Type 2 agencies shall be open for business at least seven hours a day, five days a week, except where closure is otherwise required by law.

(b) Type 3 package agencies may operate from 10:00 a.m. until 10:00 p.m., Monday through Saturday, but may remain closed on Mondays in the discretion of the package agent. However, the actual operating hours may be less in the discretion of the package agent with the approval of the department, provided the agency operates at least seven hours a day.

(c) Type 4 package agencies may operate from 10:00 a.m. until 1:00 a.m., Monday through Friday, and 10:00 a.m. until 12:00 midnight on Saturday. However, the actual operating hours may be less in the discretion of the package agent with the approval of the department.

(d) Any change in the hours of operation of any package agency requires prior department approval, and shall be submitted in writing by the package agent to the department.

(e) A package agency, regardless of type, shall not operate on Sundays[,] or legal holidays[, and election days where the sale of alcoholic beverages is prohibited by law until the polls have closed] except to the extent authorized by 32A-3-106(10) for package agencies located in certain wineries. If a legal holiday falls on a Sunday, the following Monday will be observed as the holiday by Type 2 and 3 package agencies.

(f) Because Type 2 and 3 package agencies operate in manner similar to a state store, they may not be open to sell liquor on election days until after the polls have closed. Type 1,4, and 5 package agencies do not operate in a manner similar to a state store and may remain open to sell liquor on elections days.

(2) Size of Outlet. The retail selling space devoted to liquor sales in a type 2 or 3 package agency must be at least one hundred square feet.

(3) Inventory Size. Type 2 and 3 package agencies must maintain at least fifty code numbers of inventory at a retail value of at least five thousand dollars and must maintain a representative inventory by brand, code, and size.

(4) Access to General Public. Type 1, 2, and 3 package agencies must be easily accessible to the general consuming public.

(5) Purchase of Inventory. All new package agencies, at the discretion of the department, will purchase and maintain their inventory of liquor.

 

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