No. 31334 (New Rule): R81-10. Off-Premise Beer Retailers

DAR File No.: 31334
Filed: 04/30/2008, 01:20
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This new rule is being proposed to implement law changes passed in S.B. 211 (2008). (DAR NOTE: S.B. 211 (2008) is found at Chapter 391, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

S.B. 211 requires that there be clear and specific separation of alcoholic beverages from nonalcoholic beverages in off-premise retail outlets. This rule proposes guidelines for outlets to follow when placing these products on their premises. It also addresses specific language to be used in alcoholic beverage signage in retail outlets.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--Nothing in this proposed rule requires state involvement that would significantly affect the state budget with the possible exception of law enforcement involvement. The law, however, does not mandate specific monitoring regulations for law enforcement officers or others.

local governments:

There may conceivably be some costs if local law enforcement agencies conduct compliance checks of off-premise outlets. But, the statute does not mandate such law enforcement monitoring and, if it is done, it is likely it would be done during routine premise checks.

small businesses and persons other than businesses:

Many off-premise outlets such as grocery and convenience stores are operated as small businesses. It is very likely that these outlets will need to invest money and man-hours to bring their alcoholic beverage storage areas and signage in line with the new laws. The exact cost cannot be calculated because compliance is so variable from one outlet to another. Other persons will not be directly impacted by this new rule.

Compliance costs for affected persons:

It is very likely that these outlets will need to invest money and manhours to bring their alcoholic beverage storage areas and signage in line with the new laws and rules. The exact cost cannot be calculated because compliance is so variable from one outlet to another and is directly affected by store size and alcoholic beverage inventory.

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

The ABC Commission and Department of Alcoholic Beverage Control (DABC) are acutely aware of problems related to underage alcohol consumption. Though this new law and rule will have compliance costs, DABC feels that it is worth the effort and money if it curtails the sale of alcohol to minors. 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.

R81-10. Off-Premise Beer Retailers.

R81-10-1. Separation of Alcoholic Beverages from Non-Alcoholic Beverages and Required Signage.

(1) Authority and General Purpose. This rule is pursuant to 32A-10-102(5) that requires:

(a) an off-premise beer retailer to display beer sold by the retailer in an area that is visibly separate and distinct from the area where a nonalcoholic beverage is displayed, and requires the commission to define by rule what constitutes an "area that is visibly separate and distinct from the area where a nonalcoholic beverage is displayed"; and

(b) an off-premise beer retailer to prominently post in the separate and distinct area where beer is sold, an easily readable sign that reads in print that is no smaller than .5 inches, bold type, "These beverages contain alcohol. Please read the label carefully," and requires the commission to define by rule the format of the sign.

(2) Application of the Rule.

(a) Display requirements.

(i) Pursuant to 32A-10-102(5), an off-premise beer retailer must display beer products in an "area that is visibly separate and distinct from the area where a non-alcoholic beverage is displayed."

(ii) This requires that under no circumstances may there be a co-mingling or interspersing of beer products with non-alcoholic beverages, except that non-alcoholic beers may be displayed with beer products.

(iii) The separation must clearly and unambiguously convey to a consumer those beverage products that contain alcohol and those that do not. This may be satisfied by any of the following means:

(A) An entire display cabinet, cooler, shelf, aisle, end-cap, side-stack, or stand alone floor display, or room where the only beverages displayed are beer products, accompanied by the prominent and unambiguous posting of the sign required by 32A-10-102(5); or

(B) A shared display cabinet, cooler, shelf, aisle, or room where beer products are displayed separately from non-alcoholic beverages by way of a physical barrier or visible divider of sufficient prominence to create a clear divide between the beer products and the non-alcoholic beverages. The area where beer products are displayed must have a prominent and unambiguous posting of the sign required by 32A-10-102(5). End-cap, side-stack, or stand-alone floor displays may not contain both beer products and non-alcoholic beverages other than non-alcoholic beers.

(b) Sign requirements.

(i) The sign required by 32A-10-102(5) must be:

(A) prominently posted in the area where beer is sold;

(B) easily readable;

(C) in print that is no smaller than .5 inches, bold type.

(ii) The print on the sign must be clearly readable and on a solid, contrasting background.

(iii) The size of the sign, and the size of the print must be sufficiently large so as to be readable, and clearly and unambiguously convey to a consumer that the beverage products displayed in that area contain alcohol. In no instance may the sign be smaller than 8.5 inches x 3.5 inches.

(iv) Additional signs may be necessary depending on the size and type of display area. For example, an entire aisle devoted to beer products may require more than one sign to adequately inform the consumer.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: 2008

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