No. 35301 (Amendment): Section R81-4D-7. Sale and Purchase of Alcoholic Beverages

(Amendment)

DAR File No.: 35301
Filed: 09/29/2011 10:59:20 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement a provision of S.B. 314 passed by the Legislature in the 2011 General Session relating to the on-premise banquet license 50% food sales requirement.

Summary of the rule or change:

S.B. 314 requires that on-premise banquet licensees maintain 50% of gross sales from the sale of food, and this rule amendment clarifies the regulation of non compliance. The full service, limited service, and dining club (60% food requirement) rules have a provision to regulate this food % requirement that include procedures for non compliance. This proposed substantive rule amendment adds a section to the on-premise banquet license rule to make the regulation consistent with the other licenses that have a food percentage requirement.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule amendment elaborates on a statutory mandate for on-premise banquet licensees therefore there are no state budget costs or savings involved.

local governments:

None--The provisions in this rule amendment are regulated by state government and do not affect costs or savings of local governments.

small businesses:

None--Many licensees are small businesses that are already operating under the statutory provisions that are being clarified by this rule amendment. There will be no additional costs or savings associated with this amended rule.

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

This rule amendment only affects licensed businesses and there is no cost or savings effect on other persons.

Compliance costs for affected persons:

There are no compliance costs for affected persons created by this rule amendment as it is based on an existing statutory requirement.

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

Licensed businesses are required by existing statute to comply with alcoholic beverage laws or face disciplinary action which could result in the revocation of a license. Any fiscal impact is established by statute. This rule amendment, which clarifies the governing statute, would have no fiscal impact on businesses.

Francine Giani, Executive 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:

11/14/2011

This rule may become effective on:

11/21/2011

Authorized by:

Francine Giani, Interim Executive Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-4D. On-Premise Banquet License.

R81-4D-7. Sale and Purchase of Alcoholic Beverages.

(1) The on-premise banquet licensee shall maintain at least 50% of its total business from the sale of food pursuant to Section 32B-6-605(9).

(a) The on-premise banquet licensee shall maintain records separately showing quarterly expenditures and sales for beer, heavy beer, liquor, wine, set-ups, and food. These shall be available for inspection and audit by representatives of the department, and maintained for a period of three years.

(b) If any inspection or audit discloses that the sales of food are less than 50% for any quarterly period, the department shall immediately put the licensee on a probationary status and closely monitor the licensee's food sales during the next quarterly period to determine that the licensee is able to prove to the satisfaction of the department that the sales of food meet or exceed 50%. Failure of the licensee to provide satisfactory proof of the required food percentage within the probationary period shall result in issuance of an order to show cause by the department to determine why the license should not be revoked by the commission.

(2) Liquor dispensing shall be in accordance with Section 32B-5-304 and Section R81-1-9 (Liquor Dispensing Systems) of these rules.

 

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: 32B-2-202

 

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