No. 35097 (New Rule): Rule R81-10D. Tavern Beer Licenses

(New Rule)

DAR File No.: 35097
Filed: 07/28/2011 01:53:38 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This new rule provides a section for the "tavern" license type which was previously combined with the on-premise beer license and implements new provisions required by S.B. 314 that was passed in the 2011 General Session.

Summary of the rule or change:

This rule is proposed to ensure that taverns are regulated in a similar manner as holders of other licenses. As required by S.B. 314, it also clarifies the electronic age verification procedures that taverns must abide by pursuant to Section 32B-1-407.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202
• Subsection 32B-1-407(5)

Anticipated cost or savings to:

the state budget:

None--This rule elaborates on the statutory mandates for this existing license type. Regarding the new requirement, the DABC is not required to fund the purchase of the electronic age verification devices therefore there will be no cost or savings to the state budget.

local governments:

None--Taverns are regulated on the state level. Local governments will not be involved so there will no costs or savings to them.

small businesses:

Many taverns are small businesses, however the purchase and use of electronic age verification devices is required by statute and the associated costs are therefore imposed by statute, so this rule does not impose any additional costs.

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

None--The rule affects tavern license holders and not other persons, so this rule will have no fiscal impact on other persons.

Compliance costs for affected persons:

There are no compliance costs created by this rule. Any compliance costs associated with the purchase and use of the electronic age verification devices are imposed by the governing statutes: Sections 32B-1-407 and 32B-6-706.

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

This rule is written to clarify the operational guidelines for tavern licenses and to clarify the regulatory procedures for the use of the electronic age verification devices that S.B. 314 requires for taverns. These devices cost about $1,000 each and some larger businesses may require more than one. However, the rule has no fiscal impact on businesses because the fiscal burdens are established by statute.

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:

09/14/2011

This rule may become effective on:

09/22/2011

Authorized by:

Dennis Kellen, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-10D. Tavern Beer Licenses.

R81-10D-1. Licensing.

(1) Tavern beer licenses are issued to persons as defined in Section 32B-1-102(74). The department must be immediately notified of any action or transaction that may alter the organizational structure or ownership interest of the person to whom the license is issued to ensure there is no violation of Sections 32B-5-310.

 

R81-10D-2. Application.

A license application shall be included in the agenda of the monthly commission meeting for consideration for issuance of a tavern beer license when the requirements of Sections 32B-1-304, 32B-5-201, -204 and 32B-6-703 and -705 have been met, and a completed application has been received by the department and the restaurant premises have been inspected by the department.

 

R81-10D-3. Bonds.

No part of any corporate or cash bond required by Section 32B-5-204 and 32B-6-705(4) may be withdrawn during the time the license is in effect. If the tavern beer licensee fails to maintain a valid corporate or cash bond, the license shall be immediately suspended until a valid bond is obtained. Failure to obtain a bond within 30 days of notification by the department of the delinquency shall result in the automatic revocation of the license.

 

R81-10D-4. Insurance.

Public liability and dram shop insurance coverage required in Section 32B-5-201(2)(j)must remain in force during the time the license is in effect. Failure of the licensee to maintain the required insurance coverage may result in a suspension or revocation of the license by the commission.

 

R81-10D-5. Identification Badge.

Each employee of the licensee who sells, dispenses or provides alcoholic beverages shall wear a unique identification badge visible above the waist, bearing the employee's first name, initials, or a unique number in letters or numbers not less than 3/8 inch high. The identification badge must be worn on the front portion of the employee's body. The licensee shall maintain a record of all employee badges assigned, which shall be available for inspection by any peace officer, or representative of the department. The record shall include the employee's full name and address and a driver's license or similar identification number.

 

R81-10D-6. Age Verification - Taverns.

(1) Authority. 32B-1-402, -405, and -407.

(2) Purpose.

(a) 32B-1-407 requires tavern licensees to verify proof of age of persons who appear to be 35 years of age or younger either by an electronic age verification device, or an acceptable alternate process established by commission rule.

(b) This rule:

(i) establishes the minimum technology specifications of electronic age verification devices; and

(ii) establishes the procedures for recording identification that cannot be electronically verified; and

(iii) establishes the security measures that must be used by the tavern licensee to ensure that information obtained is used only to verify proof of age and is not disclosed to others except to the extent authorized by Title 32B.

(3) Application of Rule.

(a) An electronic age verification device:

(i) shall contain:

(A) the technology of a magnetic stripe card reader;

(B) the technology of a two dimensional ("2d") stack symbology card reader; or

(C) an alternate technology capable of electronically verifying the proof of age;

(ii) shall be capable of reading:

(A) a valid state issued driver's license;

(B) a valid state issued identification card;

(C) a valid military identification card; or

(D) a valid passport;

(iii) shall have a screen that displays no more than:

(A) the individual's name;

(B) the individual's age;

(C) the number assigned to the individual's proof of age by the issuing authority;

(D) the individual's the birth date;

(E) the individual's gender; and

(F) the status and expiration date of the individual's proof of age; and

(iv) shall have the capability of electronically storing the following information for seven days (168 hours):

(A) the individual's name;

(B) the individual's date of birth;

(C) the individual's age;

(D) the expiration date of the proof of age identification card;

(E) the individual's gender; and

(F) the time and date the proof of age was scanned.

(b) An alternative method of verifying an individual's proof of age when proof of age cannot be scanned electronically:

(i) shall include a record or log of the information obtained from the individual's proof of age including the following information:

(A) the type of proof of age identification document presented;

(B) the number assigned to the individual's proof of age document by the issuing authority;

(C) the expiration date of the proof of age identification document;

(D) the date the proof of age identification document was presented;

(E) the individual's name; and

(F) the individual's date of birth.

(c) Any data collected either electronically or otherwise:

(i) may be used by the licensee, and employees or agents of the licensee, solely for the purpose of verifying an individual's proof of age;

(ii) may be acquired by law enforcement, or other investigative agencies for any purpose under Section 32A-5-107;

(iii) may not be retained by the licensee in a data base for mailing, advertising, or promotional activity;

(iv) may not be retained to acquire personal information to make inappropriate personal contact with the individual; and

(v) shall be retained for a period of seven days from the date on which it was acquired, after which it must be deleted.

(d) Any person who still questions the age of the individual after being presented with proof of age, shall require the individual to sign a statement of age form as provided under 32B-1-405.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-202; 32B-1-407(5)

 

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