No. 35052 (Amendment): Section R81-1-11. Multiple-Licensed Facility Storage and Service

(Amendment)

DAR File No.: 35052
Filed: 07/14/2011 09:40:26 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is filed to implement provisions of S.B. 314 passed by the 2011 state legislature.

Summary of the rule or change:

This year's passage of S.B. 314 created two new license types: the beer-only restaurant; and the recreational amenity on-premise beer license. It is necessary to include these license types in rules which affect them. This rule amendment adds beer-only restaurants and recreational amenity on-premise beer licenses to the multiple storage and service rule. Also, the Alcoholic Beverage Control Act was recodified effective 07/01/2011 and Title 32A was replaced with Title 32B. This rule amendment changes references to 32A to the new Title 32B in this subsection and in the annotation block.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule amendment regulates how the newly created licensees will dispense alcoholic beverages as it is now done with existing liquor and beer licensees. There are no costs or savings involved in this rule amendment.

local governments:

None--This rule amendment regulates how the newly created licensees will dispense alcoholic beverages. Dispensing is regulated by state government and does not involve local governments.

small businesses:

None--Small businesses that will hold beer-only restaurant licenses and recreational amenity on-premise beer licenses will be authorized by statute to sell and serve alcoholic beverages. This rule amendment clarifies how those products may be sold and served to patrons.

persons other than small businesses, businesses, or local governmental entities:

This rule does nothing more than include newly created license types among the the license types that may dispense alcoholic beverages from a central area on a premises. There will be no cost or savings involved in clarifying these regulations for beer-only restaurants or recreational amenity on-premise beer licensees.

Compliance costs for affected persons:

There should be no compliance costs for affected persons. Permitting a central dispensing location for multiple licensed facilities is cost effective.

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

The substantive part of this rule amendment does no more than add two newly created license types to the list of other licensees that must follow the regulations in the rule. There will be no additional fiscal impact for the licensees that are added in this rule amendment.

Dennis 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:

• Neil Cohen 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:

08/31/2011

This rule may become effective on:

09/22/2011

Authorized by:

Dennis Kellen, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-1. Scope, Definitions, and General Provisions.

R81-1-11. Multiple-Licensed Facility Storage and Service.

(1) For the purposes of this rule:

(a) "premises" as defined in Section [32A-1-105(45)]32B-1-102(75) shall include the location of any licensed restaurant, limited restaurant, beer-only restaurant, club, or recreational amenity on-premise beer retailer facility or facilities operated or managed by the same person or entity that are located within the same building or complex, and any similar sublicense located within the same building of a resort license under [32A-4a]32B-8. Multiple licensed facilities shall be termed "qualified premises" as used in this rule.

(b) the terms "sell", "sale", "to sell" as defined in Section [32A-1-105(53)]32B-1-102(92) shall not apply to a cost allocation of alcoholic beverages as used in this rule.

(c) "cost allocation" means an apportionment of the as purchased cost of the alcoholic beverage product based on the amount sold in each outlet.

(d) "remote storage alcoholic beverage dispensing system" means a dispensing system where the alcoholic product is stored in a single centralized location, and may have separate dispensing heads at different locations, and is capable of accounting for the amount of alcoholic product dispensed to each location.

(2) Where qualified premises have consumption areas in reasonable proximity to each other, the dispensing of alcoholic beverages may be made from the alcoholic beverage inventory of an outlet in one licensed location to patrons in either consumption area of the qualified premises subject to the following requirements:

(a) point of sale control systems must be implemented that will record the amounts of each alcoholic beverage product sold in each location;

(b) cost allocation of the alcoholic beverage product cost must be made for each location on at least a monthly or quarterly basis pursuant to the record keeping requirements of Section [32A-4-106, 32A-4-307, 32A-5-107, or 32A-10-206]32B-5-302;

(c) dispensing of alcoholic beverages to a licensed location may not be made on prohibited days or at prohibited hours pertinent to that license type;

(d) if separate inventories of liquor are maintained in one dispensing location, the storage area of each licensee's liquor must remain locked during the prohibited hours and days of sale for each license type;

(e) dispensing of alcoholic beverages to a licensed location may not be made in any manner prohibited by the statutory or regulatory operational restrictions of that license type;

(f) alcoholic beverages dispensed under this section may be delivered by servers from one outlet to the various approved consumption areas, or dispensed to each outlet through the use of a remote storage alcoholic beverage dispensing system.

(3) On qualified premises where each licensee maintains an inventory of alcoholic beverage products, the alcoholic beverages owned by each licensee may be stored in a common location in the building subject to the following guidelines:

(a) each licensee shall identify the common storage location when applying for or renewing their license, and shall receive department approval of the location;

(b) each licensee must be able to account for its ownership of the alcoholic beverages stored in the common storage location by keeping records, balanced monthly, of expenditures for alcoholic beverages supported by items such as delivery tickets, invoices, receipted bills, canceled checks, petty cash vouchers; and

(c) the common storage area may be located on the premises of one of the licensed liquor establishments.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [February 24, ]2011

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: [32A-1-106(9)]32B-2-201(10); [32A-1-107]32B-2-202; [32A-1-119(5)(c)]32B-3-203(3)(c); [32A-1-702]32B-1-305; [32A-1-703]32B-1-306; [32A-1-704]32B-1-307; [32A-1-807]32B-1-607; [32A-3-103(1)(a)]32B-1-304(1)(a); [32A-4-103(1)(a)]; [32A-4-106(1)(a)]; [32A-4-203(1)(a)]; [32A-4-304(1)(a)]; [32A-4-307(1)(a)]; [32A-4-401(1)(a)]; [32A-5-103(1)(a)]; [32A-6-103(2)(a)]; [32A-7-103(2)(a)]; [32A-7-106(5)]32B-6-702; [32A-8-103(1)(a)]; [32A-8-503(1)(a)]; [32A-9-103(1)(a)]; [32A-10-203(1)(a)]; [32A-10-206(14)]32B-6-805(3); [32A-10-303(1)(a)]; [32A-10-306(5)]32B-9-204(4) ; [32A-11-103(1)(a)]; [32A-12-212(1)(b) and (c)]32B-4-414(1)(b) and (c)

 

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