Alcoholic Beverage Control, Administration

Section R81-1-30

Factors for Granting Licenses

Notice of Proposed Rule

(Amendment)

DAR File No.: 35055
Filed: 07/14/2011 10:05:29 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment clarifies the factors the commission may consider when granting licenses. Because the Alcohol Beverage Control Act was recodified effective 07/01/2011 and Title 32A was replaced with Title 32B, this rule amendment changes the references from the old code 32A to the new code sections in 32B. This rule amendment renumbers this section to take the place of a removed section.

Summary of the rule or change:

This rule amendment clarifies the nonstatutory factors the commission may consider when granting licenses, adds a factor of whether an applicant is a small or entrepreneurial business that would benefit a community, fixes some grammatical errors, improves syntax, and changes the references from the old code 32A to the new code sections in 32B. The rule amendment also changes the number of the section from R81-1-30 to R81-1-29 to take the place of a removed section.

State statutory or constitutional authorization for this rule:

• Section 32B-5-203
• Subsection 32B-2-201(10)
• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule amendment clarifies the nonstatutory factors the commission may consider when granting licenses. There are no costs or savings to the state budget involved in this rule amendment.

local governments:

None--The commission grants licenses on the state level. The state licensing process will not fiscally affect local government agencies.

small businesses:

None--Many applicants for licenses are small businesses. There is no affect to these small businesses because there is no change in license fees and costs associated with applying for a license.

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

None--There are no costs or savings that will affect other persons because they are not license applicants.

Compliance costs for affected persons:

None--Since the license fees remain unchanged, applicants should experience no additional compliance costs.

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

This amendment clarifies this recently enacted section that identifies nonstatutory factors the commission may consider when granting licenses. Since the licenses are on a quota system and limited in number, these factors provide important information to prospective licensees in preparing to make presentations to the commission during the application process. Passage of this rule will not have a fiscal impact on businesses.

Dennis 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:

• Neil Cohen at the above address, by phone at 801-977-6800, 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:

08/31/2011

This rule may become effective on:

09/22/2011

Authorized by:

Dennis Kellen, Director

R81. Alcoholic Beverage Control, Administration.

R81-1. Scope, Definitions, and General Provisions.

[R81-1-30]R81-1-29. Factors for Granting Licenses.

(1) Definition. For purposes of this rule, "license" includes a license, permit, certificate of approval, and package agency.

(2) Authority. This rule is pursuant to [32A-1-107(1)(c)]32B-2-202(1)(c)which gives the commission the authority to set policy by written rules that establish criteria and procedures for granting a license. It is also based on [those statutes throughout the Alcoholic Beverage Control Act such as 32A-4-104(2)(e) that give]32B-5-203(2)(f) that gives the commission the authority to consider non-statutory factors or circumstances the commission considers necessary in granting a license.

(3) Purpose. This rule provides a list of non-statutory factors the commission considers in granting a license.

(4) Application of Rule. In addition to any statutory factor for granting a license, the commission also may consider the following non-statutory factors:

(a) availability of retail licenses under [the]a quota;

(b) length of time the applicant has [been awaiting]waited for a retail license;

(c) the scheduled opening date;

(d) whether the applicant is a seasonal business;

(e) whether the location has been previously licensed or is a new location;

(f) whether the application involves a change of ownership of an existing location;

(g) whether the applicant holds other alcohol licenses at this or other locations;

(h) whether the applicant has a violation history or a pending violation;

(i) projected alcohol sales [--] as it relates to the extent to which the retail alcohol license will be utilized;

(j) whether the applicant is a small or entrepreneurial business that would benefit the community in which it would be located;

[(j)](k) nature of entertainment the applicant proposes; and

[(k)](l) public input in support or opposition to granting the retail license.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [February 24, ]2011

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: [32A-1-106(9)]32B-2-201(10); [32A-1-107]32B-2-202; [32A-1-119(5)(c)]32B-3-203(3)(c); [32A-1-702]32B-1-305; [32A-1-703]32B-1-306; [32A-1-704]32B-1-307; [32A-1-807]32B-1-607; [32A-3-103(1)(a)]32B-1-304(1)(a); [32A-4-103(1)(a)]; [32A-4-106(1)(a)]; [32A-4-203(1)(a)]; [32A-4-304(1)(a)]; [32A-4-307(1)(a)]; [32A-4-401(1)(a)]; [32A-5-103(1)(a)]; [32A-6-103(2)(a)]; [32A-7-103(2)(a)]; [32A-7-106(5)]32B-6-702; [32A-8-103(1)(a)]; [32A-8-503(1)(a)]; [32A-9-103(1)(a)]; [32A-10-203(1)(a)]; [32A-10-206(14)]32B-6-805(3); [32A-10-303(1)(a)]; [32A-10-306(5)]32B-9-204(4); [32A-11-103(1)(a)]; [32A-12-212(1)(b) and (c)]32B-4-414(1)(b) and (c)