No. 28175 (Amendment): R81-2-8. Accepting Checks as Payment for Liquor

DAR File No.: 28175
Filed: 08/26/2005, 03:09
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to update the Department of Alcohol Beverage Control's (DABC) personal check cashing policy in state liquor stores.

 

Summary of the rule or change:

Telecheck, the company that contracts with DABC to process checks written for the purchase of alcoholic beverages at state liquor stores, previously would not guarantee payment of personal checks over $400. Telecheck has now eliminated the maximum limit and will guarantee checks of virtually any amount. This proposed rule amendment, therefore, deletes the provision that limits the amount of personal checks to $400.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

For their check guarantee services, Telecheck is paid an agreed upon percentage of the total dollar sum of checks written to the department. It is anticipated that many members of the general public will write checks of over $400 and, therefore, the cost of this service will likely increase. However, the amount of that increase is difficult to estimate since no one can predict how many customers will write checks for larger purchases in the future.

 

local governments:

None--This proposed rule amendment affects state-operated liquor stores and will have no fiscal impact on local governments.

 

other persons:

None--There will be no additional costs passed on to customers who choose to write checks in excess of $400 when making purchases of alcoholic beverages.

 

Compliance costs for affected persons:

None--This rule amendment simply eliminates the $400 personal check limit previously enforced in state liquor stores. It involves no compliance costs to the general public.

 

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

Most liquor purchases do not exceed $400. However, there are times when an individual or business needs to make a large liquor purchase, i.e., weddings, parties, etc. At these times, the $400 check limit has proved to be a frustrating inconvenience for these customers who were forced to either use a credit card or carry a large sum of cash. State liquor stores, though owned and operated by the State of Utah, must be run like any other business where customers are valued and their needs honored. Eliminating the $400 personal check limit will be a welcome improvement for both business and private customers of our State's liquor stores. Kenneth F. Wynn, 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:

10/17/2005

 

This rule may become effective on:

10/18/2005

 

Authorized by:

Kenneth F. Wynn, Director

 

 

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-2. State Stores.

R81-2-8. Accepting Checks as Payment for Liquor.

(1) A state liquor store may accept a check as payment for liquor from an individual customer only under the following conditions:

(a) The check may be drawn only on a United States, Canadian, Puerto Rican, or U.S. Virgin Islands financial institution.

(b) The following must appear on the check:

(i) name (must be imprinted);

(ii) address (if post office box, the full address must be written in); and

(iii) telephone number (may be hand-written).

(c) The check must be made out to the Department of Alcoholic Beverage Control, or D.A.B.C. (no two-party checks).

(d) The check must be made out for the exact amount of the purchase[, and all checks from the individual may not exceed $400 per day].

(e) An acceptable form of identification is required for any check written over $50.00, and may be required at the discretion of the cashier or store manager for any check written under $50.00. Acceptable forms of identification include those listed in R81-2-4.

(2) A state liquor store may accept a check as payment for liquor from a licensee only under the following conditions:

(a) The check must be imprinted with the name of the licensee's business, its business address, and its telephone number.

(b) The check must be made out to the Department of Alcoholic Beverage Control, or D.A.B.C. (no two-party checks).

(c) The check must be made out for the exact amount of the purchase.

(3) A state liquor store may accept a business or company check as payment for liquor only under the following conditions:

(a) The check may be drawn only on a United States, Canadian, Puerto Rican, or U.S. Virgin Islands financial institution.

(b) The check must be imprinted with the name of the business or company, its business address, and its telephone number.

(c) The check must be made out to the Department of Alcoholic Beverage Control, or D.A.B.C. (no two-party checks).

(d) The check must be made out for the exact amount of the purchase.

(e) Further identification is not required.

(f) The department may place a maximum limit on the total dollar amount in checks a business or company may tender to the department in a 24 hour period.

(4) A state liquor store may accept a traveler's check as payment for liquor under the following conditions:

(a) Traveler's checks shall be in "US Dollars".

(b) Each traveler's check shall have been previously signed by the holder of the check at the issuing bank or company. The check shall then be signed a second time in front of the DABC store employee that is handling the sale. The store employee shall compare the two signatures to verify that the signatures match, and shall otherwise examine the check to verify its validity.

(c) Traveler's checks shall be made out to the Department of Alcoholic Beverage Control or "D.A.B.C."

(d) When accepting a traveler's check for $50.00 or more, the store employee shall:

(i) call the issuing bank or company and receive an authorization, and authorization number; and

(ii) check the identification of the customer. Acceptable forms of identification include those listed in R81-2-4.

(e) On the upper, left hand corner of a traveler's check for $50.00 or more, the employee shall write:

(i) the authorization number from the issuing bank or company;

(ii) the type of identification used including expiration date and individual's identification number; and

(iii) the store employee's initials.

 

KEY: alcoholic beverages

[August 2, 2004]2005

Notice of Continuation November 16, 2001

32A-1-107

32A-1-301 to 32A-1-305