PUBLIC PROTECTION CABINET

Department of Alcoholic Beverage Control

(Amendment)

 

      804 KAR 8:050. Signs on vehicles used.

 

      RELATES TO: KRS 243.200[, 243.210]

      STATUTORY AUTHORITY: KRS 241.060, 241.090, 243.200

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060 authorizes the board to promulgate administrative regulations regarding matters over which the board has jurisdiction. Licensed manufacturers, wholesalers, distributors, and retailers may transport alcoholic beverages. KRS 243.200 authorizes the board to promulgate reasonable administrative regulations requiring licensees to display the licensee’s name and state licensee number on vehicles used in[governing] the transportation of alcoholic beverages. KRS 243.200 requires licensees to agree to vehicle stops and inspections by authorized department investigators. This administrative regulation establishes sign requirements for vehicles transporting alcoholic beverages and authorizes department investigators to stop and inspect vehicles used to transport alcoholic beverages[to make identification of vehicles transporting alcoholic beverages immediately recognizable to police officers and agents of this cabinet, this administrative regulation states, with particularity, the types of signs which must be placed on any vehicle used in transporting alcoholic beverages].

 

      Section 1. Vehicle Signs. (1) Licensed manufacturers, wholesalers, distributors, retailers, and transporters shall display the licensee's name and license number on all vehicles used to transport alcoholic beverages.

      (2) The display required by subsection (1) of this section shall be[Signs required on trucks, wagons, and other vehicles used by distillers, retailers, rectifiers, wineries, wholesalers, brewers, distributors, and transporters, in transporting alcoholic beverages shall be]:

      (a) Painted, magnetic, or adhesive decals or lettering in a color that contrasts with the color of the vehicle[or printed, or affixed magnetically or adhesively with letters in a color contrasting with the color of that portion of the truck or vehicle upon which the sign is placed]; and

      (b) Placed upon the right and left windows or sides of the vehicle in[uniform] letters that are at least one (1) inch tall.

 

      Section 2. Vehicle Inspections. Any vehicle used by a licensee to transport alcoholic beverages shall be subject to a stop and inspection of the vehicle and its contents at any time by authorized department investigators without first obtaining a search warrant.[of not less than three (3) inches high in the following from:

"(Name of Licensee)

Ky. (type) License

No.______ "

      (2) The following words, and no others, may be abbreviated: Kentucky, (Ky.); Wholesaler, (Whol.); Distiller, (Dist.); Rectifier, (Rect.); Vintner, (Vint.); Brewer, (Brew.); Distributor, (Distr.); Transporter, (TS, and or MT); Company, (Co.); Limited Liability Company, (LLC); Limited Liability Partnership, (LLP); Incorporated, (Inc.); Retailer, (Ret.); and Corporation, (Corp.)]

 

CHRISTINE TROUT, Commissioner

DAVID A. DICKERSON, Secretary

      APPROVED BY AGENCY: June 29, 2017

      FILED WITH LRC: June 29, 2017 at 3 p.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on August 22, 2017 at 1:30 pm Eastern Time at the Kentucky Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Department in writing by five working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on August 31, 2017. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Heather Mercadante, Executive Advisor, Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601, phone (502) 564-4850, fax (502) 564-7479, email Heather.Mercadante@ky.gov.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Heather Mercadante

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation identifies and defines the requirements for vehicles used to transport alcoholic beverages.

      (b) The necessity of this administrative regulation: This regulation is necessary to clarify the requirements for vehicles used to transport alcoholic beverages.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 241.060(1) authorizes the board to promulgate administrative regulations governing the licensing, supervision, and control of alcoholic beverages. KRS 243.200 authorizes the board to promulgate administrative regulations regarding the vehicles used for transporting alcoholic beverages.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This regulation establishes sign requirements for vehicles transporting alcoholic beverages to permit department investigators to identify vehicles engaged in conduct regulated by the department.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment removes the three (3) inch requirement for lettering on transporting vehicles and replaces it with a one (1) inch height requirement. The regulation no longer requires letters to be uniform so licensees may use logos for easier compliance and business branding purposes. The amendment also specifically allows department investigators to stop and inspect vehicles used to transport alcoholic beverages, pursuant to KRS 243.200 and KRS 241.090.

      (b) The necessity of the amendment to this administrative regulation: The amendment is necessary to state requirements, based upon changes reflected in House Bill 183, that permit department inspectors to identify vehicles used for the transportation of alcoholic beverages.

      (c) How the amendment conforms to the content of the authorizing statutes: The department is authorized to promulgate administrative regulations pursuant to KRS 241.060(1). KRS 243.200 specifically authorizes the board to promulgate administrative regulations for signs on vehicles used for the transportation of alcoholic beverages. Pursuant to KRS 243.200, licensees agree to specifically allow department investigators to stop and inspect vehicles used to transport alcoholic beverages. KRS 241.090 further provides department investigators with constitutionally permissible authority to perform warrantless inspections to supervise the alcoholic beverage industry. See Colonnade Catering Corp. v. United States, 397 U.S. 72 (1970); Duke v. Commonwealth of Kentucky 474 S.W.2d 885 (Ky. 1971).

      (d) How the amendment will assist in the effective administration of the statutes: This regulation identifies sign requirements for vehicles transporting alcoholic beverages so department investigators may identify those vehicles engaged in conduct regulated by the department. This regulation also permits department investigators to stop and inspect those vehicles transporting alcoholic beverages.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: The department and all licensees of the department who transport alcoholic beverages are affected by this regulation.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The amendment will not require any additional actions on the part of the regulated entities.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There is no additional cost associated with this amendment.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): The regulated entities will have more flexibility in the lettering requirements for those vehicles used to transport alcoholic beverages. Lettering will not have to be uniform. Therefore, company logos will be sufficient to meet the regulatory requirement, which will foster licensee compliance and allow company branding. This amendment permits department investigators to stop and inspect vehicles used to transport alcoholic beverages.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: There are no anticipated costs with the implementation of this amendment.

      (b) On a continuing basis: There are no anticipated costs with the implementation of this amendment.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: No funding will be used for the implementation and enforcement of this amendment.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: There is no anticipated increase in fees or funding necessary for this amendment.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increased any fees: This amendment does not directly or indirectly establish or increase any fees.

      (9) TIERING: Is tiering applied? No tiering is applied because this regulation applies equally to the regulated entities.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      (1) What units, parts or divisions of state or local government (including cities, counties, fire departments or school districts) will be impacted by this administrative regulation? The Department of Alcoholic Beverage Control is the only government agency expected to be impacted by this administrative regulation.

      (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 241.060(1) authorizes the board to promulgate administrative regulations. KRS 243.200, as amended by the enactment of House Bill 183, authorizes the board to promulgate administrative regulations specifically identifying requirements of vehicles transporting alcoholic beverages. Pursuant to KRS 243.200, licensees agree to specifically allow department investigators to stop and inspect vehicles used to transport alcoholic beverages. KRS 241.090 further provides department investigators with constitutionally recognized warrantless inspection powers of the alcoholic beverage industry. See, Colonnade Catering Corp. v. United States, 397 U.S. 72 (1970); Duke v. Commonwealth of Kentucky 474 S.W.2d 885 (Ky. 1971).

      (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. There is no anticipated effect to expenditures or revenues as a result of the amendment.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This amendment is not expected to generate any revenue.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? No revenue will be generated by this administrative regulation.

      (c) How much will it cost to administer this program for the first year? There is no anticipated cost to administer the change to this regulation.

      (d) How much will it cost to administer this program for subsequent years? There is no anticipated change in cost to administer this amendment.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation:

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: There is no anticipated fiscal impact as a result of this amendment.