No. 38027 (Amendment): Section R81-10C-6. Sale and Purchase of Beer

(Amendment)

DAR File No.: 38027
Filed: 09/27/2013 04:53:14 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being amended to be consistent with state statute.

Summary of the rule or change:

H.B. 240, passed in the 2013 General Legislative Session, codified a safe harbor provision that would protect a licensee from a violation of the act if they verified a patron's intent to dine, served them a beer, and the patron left the establishment without ordering food. This rule is being amended to reflect the change in statutory language and to remove the "gratuitously provided" and replace that language with "food items normally provided without charge" for purposes of clarity.

State statutory or constitutional authorization for this rule:

• Subsection 32B-6-905(8)(a)

Anticipated cost or savings to:

the state budget:

None--This rule filing makes the Department of Alcoholic Beverage Control (DABC) rules consistent with state statute.

local governments:

None--This rule filing makes the DABC rules consistent with state statute.

small businesses:

None--This rule filing makes the DABC rules consistent with state statute.

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

None--This rule filing makes the DABC rules consistent with state statute.

Compliance costs for affected persons:

None--This rule filing makes the DABC rules consistent with state statute.

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

None--This rule filing makes the DABC rules consistent with state statute.

Salvador D. Petilos, 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:

• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, 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:

11/14/2013

This rule may become effective on:

11/21/2013

Authorized by:

Sal Petilos, Executive Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-10C. Beer-Only Restaurant Licenses.

R81-10C-6. Sale and Purchase of Beer.

(1) Beer may be furnished after the licensee or their employee confirms that the patron has the intent to[must be sold in connection with an] order [for ]food that is prepared and sold for consumption on site[placed and paid for by a patron]. An order for food may not include food items normally provided to patrons without charge[gratuitously provided by the restaurant to patrons]. A patron may pay for an alcoholic beverage at the time of purchase, or, at the discretion of both the licensee and the patron, the price charged may be added to the patron's tab, provided that a written beverage tab, as provided in Section 32B-6-905(4), shall be commenced upon the patron's first purchase and shall be maintained by the restaurant during the course of the patron's stay at the restaurant regardless of where the patron orders and consumes an alcoholic beverage.

(2) The restaurant shall maintain at least 70% of its total business from the sale of food pursuant to Section 32B-6-905(7).

(a) The restaurant shall maintain records separately showing quarterly expenditures and sales for beer 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 70% 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 70%. 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.

(3) Beer dispensing shall be in accordance with Section 32B-5-304(5) and Section R81-1-11 (Multiple Licensed Facility Storage and Service) of these rules.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [April 30, ]2013

Authorizing, and Implemented or Interpreted Law: [32-1-607; ]32B-2-202; 32B-5; 32B-6-901 through 905

 

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