No. 39059 (5-year Review): Rule R81-4E. Resort Licenses

DAR File No.: 39059
Filed: 01/08/2015 02:33:49 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 32B-2-202 authorizes the Alcoholic Beverage Control Commission to adopt and issue policy, rules and procedures that establish criteria and procedures for issuing, denying, not renewing, suspending, or revoking retail licenses and permits, including resort license issued under Title 32B, Chapter 8, Resort License Act, and prescribe the conduct, management, and equipment of any premises where alcohol is sold, served, consumed, or stored. Additionally, Section 32B-8-102 authorizes the commission to define certain terms by rule.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

To the department's knowledge, no comments have been received.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule regulates operations at establishments holding resort licenses. Section R81-4E-1 requires that any transaction that may alter the organizational structure or owner interest of the license holder must first be approved by the Department of Alcoholic Beverage Control (DABC). Section R81-4E-2 outlines requirements of the application for a resort license. Section R81-4E-3 elaborates on regulations regarding the bond required by statute to be carried by resort licensees, including penalties for noncompliance. Section R81-4E-4 elaborates on regulations regarding requirements for resort licensee insurance coverage and penalties for noncompliance. Section R81-4E-5 regulates how resort licensees may place liquor orders at state liquor stores. Section R81-4E-6 permits the licensee to open the storage area at other times for the limited purposes of inventory, restocking, repair, and cleaning. Resort licensees are the only licensee in the Liquor Act that operate their restaurants as sublicensees of the resort license. Section R81-4E-7 provides guidelines for where alcoholic beverages may be dispensed and consumed and how they may be sold in restaurants with sublicenses. The section also establishes how liquor sales records should be maintained. Section R81-4E-8 permits sublicensees in resorts to store all types of liquor in the same storage area on the licensed premises. Section R81-4E-9 regulates the use of alcoholic product flavorings used by resort licensees. Section R81-4E-10 allows wine service at a patron's table. Section R81-4E-11 establishes where on the premises of a restaurant sublicense alcoholic beverages may be consumed by a patron. Section R81-4E-12 establishes guidelines and regulations for posting liquor prices and liquor service prices and practices in sublicensed establishments licensed under a resort license. Section R81-4E-13 establishes regulations for employees of sublicenses established under the resort license for wearing a unique identification badge when selling and serving alcoholic beverages. Section R81-4E-14 addresses when it is legal and appropriate to permit brown-bagging on the premises of a sublicensee. Section R81-4E-15 defines the term resort spa, establishes application requirements, and addresses minors in spas with lounges. Section R81-4E-16 states that the rules for sublicenses issued under the larger resort license must comply with the same type of licenses issued by the DABC. All of the regulations set forth in this rule remain important and applicable to the operations of a resort license. Therefore, this rule should be continued.

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]

Effective:

01/08/2015

Authorized by:

Sal Petilos, Executive Director

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