Alcoholic Beverage Control, Administration

Section R81-10A-1

Licensing

Notice of Proposed Rule

(Amendment)

DAR File No.: 33732
Filed: 06/14/2010 01:43:40 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Current rule allows a licensee to hold dual on-premise beer and full-service restaurant licenses. This rule amendment will allow licensees to hold dual on-premise beer and limited-service restaurant licenses. This allows the licensee to serve beer during the day under the operational guidelines of a beer license and to serve beer, heavy beer, and wine during the night under the operational guidelines of a limited-service restaurant license.

Summary of the rule or change:

This rule amendment will allow licensees to hold dual on-premise beer retailer and limited-service restaurant licenses. It will allow limited restaurant licensees to operate under the operational restrictions of an on-premise beer retailer during certain designated periods of the day.

State statutory or constitutional authorization for this rule:

• Section 32A-1-107

Anticipated cost or savings to:

the state budget:

Though it is not possible to determine an exact dollar amount, the state may benefit from the additional application and licensing fees for licensees that choose to operate with dual on-premise beer retailer and limited-restaurant licenses.

local governments:

None--This amendment only involves the Department of Alcoholic Beverage Control's (DABC) licensing department and does not involve local government agencies.

small businesses:

Though it is not possible to determine an exact dollar amount, this amendment may affect DABC licensees, including those with fewer than 50 employees, if they elect to hold dual licenses. The additional fiscal impact would be the licensing ($150) and application ($250) fees.

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

None--Licensees must have a current local business license.

Compliance costs for affected persons:

None--There should be no additional compliance costs since the dual licenses are optional.

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

Licensees involved in tourism, such as ski resorts, would like the option to serve beer during the day without requiring patrons to purchase food. This rule amendment will allow licensees to hold dual limited-restaurant and on-premise beer retailer licenses. The licensing and application fees will have a minimal impact on the licensees and potentially increase their business during the day substantially.

Dennis R. 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:

• Vickie Ashby at the above address, by phone at 801-977-6801, by FAX at 801-977-6889, or by Internet E-mail at [email protected]

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:

08/02/2010

This rule may become effective on:

08/09/2010

Authorized by:

Dennis Kellen, Director

R81. Alcoholic Beverage Control, Administration.

R81-10A. On-Premise Beer Retailer Licenses.

R81-10A-1. Licensing.

(1) On-premise beer retailer licenses are issued to persons as defined in Section 32A-1-105(44). 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 32A-10-202 (3), 32A-10-203, and 32A-10-206(17).

(2) An on-premise beer retailer licensee that wishes to operate the same licensed premises under the operational restrictions of a restaurant liquor license or a limited restaurant license during certain designated periods of the day or night, must apply for and be issued a separate restaurant liquor license or a limited restaurant license subject to the following:

(a) The same on-premise beer retailer licensee must separately apply for a state restaurant liquor license pursuant to the requirements of Sections 32A-4-102, -103, and -105 or a limited restaurant license pursuant to the requirements of Sections 32A-4-303, -304, and -306.

(b) Licensees applying for dually licensed premises must notify the department of the time periods under which each license will be operational at the time application is made. Changes must be requested in writing and approved in advance by the department. Licensees may operate sequentially under either license, but not concurrently.

(c) On-premise beer retailer licensees holding a separate restaurant liquor license must operate in accordance with 32A-4-106 and R81-4A during the hours the restaurant liquor license is active.

(d) On-premise beer retailer licensees holding a separate limited restaurant license must operate in accordance with 32A-4-307 and R81-4C during the hours the limited restaurant license is active.

[(d)](e) Liquor storage areas on the restaurant or limited restaurant premises shall be deemed to remain on the floor plan of the restaurant or limited restaurant premises and shall be kept locked during the hours the on-premise beer retailer license is active.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [August 1, 2003]2010

Notice of Continuation: December 6, 2005

Authorizing, and Implemented or Interpreted Law: 32A-1-107