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H.B. 42

             1     

ALCOHOLIC BEVERAGE CONTROL ACT RETAIL LICENSE

             2     
QUOTAS

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gage Froerer

             6     
Senate Sponsor: John L. Valentine

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act to provide for changes in the
             11      number of retail licenses.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the numerical restrictions on the number of retail licenses that may be
             15      issued; and
             16          .    makes technical and conforming amendments.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          This bill takes effect on July 1, 2011.
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          32B-6-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             24          32B-6-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             25          32B-6-703 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             26     
             27      Be it enacted by the Legislature of the state of Utah:


             28          Section 1. Section 32B-6-203 (Effective 07/01/11) is amended to read:
             29           32B-6-203 (Effective 07/01/11). Commission's power to issue full-service
             30      restaurant license.
             31          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             32      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             33      full-service restaurant license from the commission in accordance with this part.
             34          (2) The commission may issue a full-service restaurant license to establish full-service
             35      restaurant licensed premises at places and in numbers the commission considers proper for the
             36      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             37      operated as a full-service restaurant.
             38          (3) (a) The commission may not issue a total number of full-service restaurant licenses
             39      that at any time exceeds the number determined by dividing the population of the state by
             40      [5,200] 5,000.
             41          (b) The commission may issue a seasonal full-service restaurant license in accordance
             42      with Section 32B-5-206 .
             43          (c) (i) If the location, design, and construction of a hotel may require more than one
             44      full-service restaurant sales location within the hotel to serve the public convenience, the
             45      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             46      many as three full-service restaurant locations within the hotel under one full-service restaurant
             47      license if:
             48          (A) the hotel has a minimum of 150 guest rooms; and
             49          (B) the locations under the full-service restaurant license are:
             50          (I) within the same hotel; and
             51          (II) on premises that are managed or operated, and owned or leased, by the full-service
             52      restaurant licensee.
             53          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             54      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             55          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             56      full-service restaurant license for premises that do not meet the proximity requirements of
             57      Section 32B-1-202 .
             58          (b) With respect to the premises of a full-service restaurant license issued by the


             59      commission that undergoes a change of ownership, the commission shall waive or vary the
             60      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             61      full-service restaurant license to the new owner of the premises if:
             62          (i) when a full-service restaurant license was issued to a previous owner, the premises
             63      met the proximity requirements of Subsection 32B-1-202 (2);
             64          (ii) the premises has had a full-service restaurant license at all times since the
             65      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             66      and
             67          (iii) the community location was located within the proximity requirements of
             68      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             69      Subsection (4)(b)(i) was issued.
             70          Section 2. Section 32B-6-303 (Effective 07/01/11) is amended to read:
             71           32B-6-303 (Effective 07/01/11). Commission's power to issue limited-service
             72      restaurant license.
             73          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             74      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
             75      obtain a limited-service restaurant license from the commission in accordance with this part.
             76          (2) (a) The commission may issue a limited-service restaurant license to establish
             77      limited-service restaurant licensed premises at places and in numbers the commission considers
             78      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             79      beer on premises operated as a limited-service restaurant.
             80          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             81      following on the licensed premises of a limited-service restaurant licensee:
             82          (i) spirituous liquor; or
             83          (ii) a flavored malt beverage.
             84          (3) (a) The commission may not issue a total number of limited-service restaurant
             85      licenses that at any time exceeds the number determined by dividing the population of the state
             86      by [9,300] 8,700.
             87          (b) The commission may issue a seasonal limited-service restaurant license in
             88      accordance with Section 32B-5-206 .
             89          (c) (i) If the location, design, and construction of a hotel may require more than one


             90      limited-service restaurant sales location within the hotel to serve the public convenience, the
             91      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             92      limited-service restaurant locations within the hotel under one limited-service restaurant license
             93      if:
             94          (A) the hotel has a minimum of 150 guest rooms; and
             95          (B) the locations under the limited-service restaurant license are:
             96          (I) within the same hotel; and
             97          (II) on premises that are managed or operated, and owned or leased by the
             98      limited-service restaurant licensee.
             99          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             100      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             101      furnished.
             102          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             103      limited-service restaurant license for premises that do not meet the proximity requirements of
             104      Section 32B-1-202 .
             105          (b) With respect to the premises of a limited-service restaurant license issued by the
             106      commission that undergoes a change of ownership, the commission shall waive or vary the
             107      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             108      limited-service restaurant license to the new owner of the premises if:
             109          (i) when a limited-service restaurant license was issued to a previous owner, the
             110      premises met the proximity requirements of Subsection 32B-1-202 (2);
             111          (ii) the premises has had a limited-service restaurant license at all times since the
             112      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             113      variance; and
             114          (iii) the community location was located within the proximity requirements of
             115      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             116      described in Subsection (4)(b)(i) was issued.
             117          Section 3. Section 32B-6-703 (Effective 07/01/11) is amended to read:
             118           32B-6-703 (Effective 07/01/11). Commission's power to issue on-premise beer
             119      retailer license.
             120          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of


             121      beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise
             122      beer retailer license from the commission in accordance with this part.
             123          (2) (a) The commission may issue an on-premise beer retailer license to establish
             124      on-premise beer retailer licensed premises at places and in numbers as the commission
             125      considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on
             126      premises operated as an on-premise beer retailer.
             127          (b) At the time that the commission issues an on-premise beer retailer license, the
             128      commission shall designate whether the on-premise beer retailer is a tavern.
             129          (c) The commission may change its designation of whether an on-premise beer retailer
             130      is a tavern in accordance with rules made by the commission.
             131          (d) (i) In determining whether an on-premise beer retailer is a tavern, the commission
             132      shall determine whether the on-premise beer retailer will engage primarily in the retail sale of
             133      beer for consumption on the establishment's premises.
             134          (ii) In making a determination under this Subsection (2)(d), the commission shall
             135      consider:
             136          (A) whether the on-premise beer retailer will operate as one of the following:
             137          (I) a beer bar;
             138          (II) a parlor;
             139          (III) a lounge;
             140          (IV) a cabaret; or
             141          (V) a nightclub;
             142          (B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
             143          (I) whether the on-premise beer retailer will sell food in the establishment; and
             144          (II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer
             145      will exceed the revenue of the sale of food;
             146          (C) whether full meals including appetizers, main courses, and desserts will be served;
             147          (D) the square footage and seating capacity of the premises;
             148          (E) what portion of the square footage and seating capacity will be used for a dining
             149      area in comparison to the portion that will be used as a lounge or bar area;
             150          (F) whether the person will maintain adequate on-premise culinary facilities to prepare
             151      full meals, except a person that is located on the premises of a hotel or resort facility may use


             152      the culinary facilities of the hotel or resort facility;
             153          (G) whether the entertainment provided on the premises of the beer retailer will be
             154      suitable for minors; and
             155          (H) the beer retailer management's ability to manage and operate an on-premise beer
             156      retailer license including:
             157          (I) management experience;
             158          (II) past beer retailer management experience; and
             159          (III) the type of management scheme that will be used by the beer retailer.
             160          (3) (a) The commission may not issue a total number of on-premise beer retailer
             161      licenses that are taverns that at any time exceeds the number determined by dividing the
             162      population of the state by [30,500] 53,400.
             163          (b) The commission may issue a seasonal on-premise beer retailer license for a tavern
             164      in accordance with Section 32B-5-206 .
             165          (4) (a) Unless otherwise provided in Subsection (4)(b):
             166          (i) only one on-premise beer retailer license is required for each building or resort
             167      facility owned or leased by the same person; and
             168          (ii) a separate license is not required for each retail beer dispensing location in the
             169      same building or on the same resort premises owned or operated by the same person.
             170          (b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in the
             171      building or resort facility operates in the same manner.
             172          (ii) If each retail beer dispensing location does not operate in the same manner:
             173          (A) one on-premise beer retailer license designated as a tavern is required for the
             174      locations in the same building or on the same resort premises that operate as a tavern; and
             175          (B) one on-premise beer retailer license is required for the locations in the same
             176      building or on the same resort premises that do not operate as a tavern.
             177          Section 4. Effective date.
             178          This bill takes effect on July 1, 2011.





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    as of 12-2-10 7:45 AM


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