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[Utah Administrative Code Table of Contents]
[Title R081. Table of Contents]
R81-3-1 Definition.
Package agencies are retail liquor outlets operated by private persons under contract with the department for the purpose of selling packaged liquor from facilities other than state liquor stores for off premise consumption. Package agencies are classified into five types:
Type 1 - A package agency under contract with the department which is operated in conjunction with a resort environment (e.g., hotel, ski lodge, summer recreation area).
Type 2 - A package agency under contract with the department which is in conjunction with another business where the primary source of income to the operator is not from the sale of liquor.
Type 3 - A package agency under contract with the department which is not in conjunction with another business, but is in existence for the sole purpose of selling liquor.
Type 4 - A package agency under contract with the department which is located within a facility approved by the commission for the purpose of selling and delivering liquor to tenants or occupants of specific rooms which have been leased, rented, or licensed within the same facility. A type 4 package agency shall not be open to the general public.
Type 5 - A package agency under contract with the department which is located within a winery that has been granted a winery license by the commission.
The commission may grant type 4 package agency privileges to a type 1 package agency.
R81-3-2 Change of Location.
Any change of package agency location must be requested in writing and approved in advance by the commission.
R81-3-3 Bonds.
No part of any surety bond required in Section 32A-3-105 , may be withdrawn during the time the package agency contract is in effect. If the package agent fails to maintain a valid surety bond, the package agency contract 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 an automatic rescission of the package agency contract.
R81-3-4 Change of Package Agent.
Pursuant to Section 32A-3-106 (15), any change of the package agent designated in the department's package agency agreement is a violation of these rules and shall result in the immediate termination of the package agency contract.
R81-3-5 Special Orders of Liquor by Public.
A special order item is any item not listed in the department's product/price list. Only type 3 package agencies may process special order requests. Any individual may place a special order at any type 3 package agency. Special orders may be placed for groups of individuals or organizations, either at a type 3 package agency or the purchasing division of the department, as follows:
(1) A special order form must be filled out on every special order item.
(2) There is no handling fee on special orders, but a deposit of twenty-five dollars is required on special orders of four or more cases.
(3) All merchandise must be cleared from the system before a reorder on that special order item is allowed.
(4) Special order requests must include the product name and distributor or shipper.
R81-3-6 Liquor Refunds and Exchanges.
The department will accept for refund or exchange, merchandise that is defective, provided the customer returns the bottle with at least 1/2 of the contents in the bottle. Wine merchandise will not be accepted for refund or exchange if the return is a result of improper extraction of the cork. Wine purchased at any specialty wine store may not be exchanged or returned for refund.
R81-3-7 Warning Sign.
All package agencies shall display in a prominent place a "warning sign" as defined in R81-1-2.
R81-3-8 Identification Guidelines to Purchase Liquor.
All package agencies shall accept only two forms of identification for the purchase of liquor by customers of questionable age: (1) a valid driver's license with a picture affixed; or (2) an official State identification card with a picture affixed as provided in Sections 32A-1-301 to 32A-1-305.
R81-3-9 Advertising.
The advertising or promotion of liquor products within package agencies is prohibited. An operator or employee may inform the customer as to the characteristics of a particular brand or type of liquor, provided the information is linked to a comparison with other brands or types.
For informational purposes, type 4 package agencies may provide a list of the code number, brand, size, and price of each item it carries for sale to the tenants or occupants of the specific leased, rented, or licensed rooms within the facility.
R81-3-10 Non-Consignment Inventory.
Effective July 1, 1986, all Type 1 package agencies shall be on a non-consignment inventory status where the agency owns the inventory.
R81-3-11 Application.
An application for a package agency shall be included in the agenda of the monthly commission meeting for consideration for issuance of a package agency contract when the requirements of Sections 32A-3-102 , -103, and -105 have been met, a completed application has been received by the department, and when the package agency premises have been inspected by the department. No application fee is required for Type 2 and 3 package agency applicants.
R81-3-12 Evaluation Guidelines of Package Agencies.
Type 1, 2, and 3 package agencies shall:
(1) serve a population of at least 6,000 people comprised of both permanent residents and tourists;
(2) not be established or maintained within a one mile radius of another package agency unless it can be clearly demonstrated that it is in the best interest of the state to establish and maintain the outlet at that location; and
(3) maintain a gross profit to the state of $12,000 annually to assure adequate service to the public.
R81-3-13 Operational Restrictions.
(1) Hours of Operation. Type 1, 2, and 3 package agencies must be open for business at least seven hours a day, five days a week, except where closure is otherwise required.
(2) Size of Outlet. The retail selling space devoted to liquor sales in a type 1, 2, or 3 package agency must be at least one hundred square feet of floor space.
(3) Inventory Size. Type 1, 2, and 3 package agencies must maintain at least fifty code numbers of inventory at a retail value of at least five thousand dollars and must maintain a representative inventory by brand, code, and size.
(4) Access to General Public. Type 1, 2, and 3 package agencies must be easily accessible to the general consuming public.
(5) Delivery Access. The package agency must have good dock delivery access as determined by the department warehouse manager or be willing to pick up product from the department warehouse.
(6) Purchase of Inventory. All new package agencies, at the discretion of the department, will purchase and maintain their inventory of liquor.
R81-3-14 Type 5 Package Agencies.
A type 5 package agency is for the limited purpose of allowing a winery to sell at its winery location the wine product it actually produces. It is not required to carry the products of other alcoholic beverage manufacturers. The product produced by the winery and sold in the type 5 package agency need not be shipped from the winery to the department warehouse and then back to the package agency. However, the department shall establish, by written policy, any requirements for inventory and sales accounting, record-keeping, state labeling, payment of taxes and mark-up, etc. of the product.
[Indexing]
KEY: alcoholic beverages
1994
[Editor's note: Below are references
to the Utah Code that are listed by the
agency making this rule as authority
for the rule.]
32A-1-107
Notice of Continuation January 10, 1997
