H.B. 338

             1     

ALCOHOL BEVERAGE LICENSE AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act to make changes related to
             10      licensing.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses quota numbers for club licenses and reception center licenses.
             14      Money Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          This bill takes effect on July 1, 2014.
             18      Utah Code Sections Affected:
             19      AMENDS:
             20           32B-6-403 , as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             21           32B-6-803 , as enacted by Laws of Utah 2011, Chapter 334
             22     
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 32B-6-403 is amended to read:
             25           32B-6-403. Commission's power to issue club license.
             26          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             27      an alcoholic product on its premises as a club licensee, the person shall first obtain a club


             28      license from the commission in accordance with this part.
             29          (2) The commission may issue a club license to establish club licensed premises at
             30      places and in numbers the commission considers proper for the storage, sale, offer for sale,
             31      furnishing, and consumption of an alcoholic product on premises operated by a club licensee.
             32          (3) Subject to Section 32B-1-201 :
             33          (a) (i) The commission may not issue a total number of dining club licenses that at any
             34      time exceeds the number determined by dividing the population of the state by [7,850] 28,742.
             35          (ii) The commission may not issue a total number of social club licenses, equity club
             36      licenses, and fraternal club licenses that at any time exceeds the number determined by
             37      dividing the population of the state by 9,936.
             38          (b) The commission may issue a seasonal club license in accordance with Section
             39      32B-5-206 to:
             40          (i) a dining club licensee; or
             41          (ii) a social club licensee.
             42          (c) (i) If the location, design, and construction of a hotel may require more than one
             43      dining club license or social club license location within the hotel to serve the public
             44      convenience, the commission may authorize as many as three club license locations within the
             45      hotel under one club license if:
             46          (A) the hotel has a minimum of 150 guest rooms; and
             47          (B) all locations under the club license are:
             48          (I) within the same hotel; and
             49          (II) on premises that are managed or operated, and owned or leased, by the club
             50      licensee.
             51          (ii) A facility other than a hotel shall have a separate club license for each club license
             52      location where an alcoholic product is sold, offered for sale, or furnished.
             53          (d) When a business establishment undergoes a change of ownership, the commission
             54      may issue a club license to the new owner of the business establishment notwithstanding that
             55      there is no club license available under Subsection (3)(a) if:
             56          (i) the primary business activity at the business establishment before and after the
             57      change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
             58          (ii) before the change of ownership there are two or more licensed premises on the


             59      business establishment that operate under a retail license, with at least one of the retail licenses
             60      being a club license;
             61          (iii) subject to Subsection (3)(e), the licensed premises of the club license issued under
             62      this Subsection (3)(d) is at the same location where the club license licensed premises was
             63      located before the change of ownership; and
             64          (iv) the person who is the new owner of the business establishment qualifies for the
             65      club license, except for there being no club license available under Subsection (3)(a).
             66          (e) If a club licensee of a club license issued under Subsection (3)(d) requests a change
             67      of location, the club licensee may retain the club license after the change of location only if on
             68      the day on which the club licensee seeks a change of location a club license is available under
             69      Subsection (3)(a).
             70          Section 2. Section 32B-6-803 is amended to read:
             71           32B-6-803. Commission's power to issue reception center license.
             72          (1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on its
             73      premises as a reception center, the person shall first obtain a reception center license from the
             74      commission in accordance with this part.
             75          (2) The commission may issue a reception center license to establish reception center
             76      licensed premises at places and in numbers the commission considers proper for the storage,
             77      sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
             78      as a reception center.
             79          (3) Subject to Section 32B-1-201 , the commission may not issue a total number of
             80      reception center licenses that at any time exceeds the number determined by dividing the
             81      population of the state by [56,313] 109,115.
             82          (4) The commission may not issue a reception center license for premises that do not
             83      meet the proximity requirements of Section 32B-1-202 .
             84          Section 3. Effective date.
             85          This bill takes effect on July 1, 2014.





Legislative Review Note
    as of 2-6-14 11:55 AM


Office of Legislative Research and General Counsel


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