Alcoholic Beverage Control, Administration

Section R81-1-30

Factors for Granting Licenses

Notice of Proposed Rule

(Amendment)

DAR File No.: 34336
Filed: 12/30/2010 08:49:34 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The recent audit of the Department of Alcoholic Beverage Control by the Legislative Auditor General recommended that the commission develop a methodology for granting licenses. This change identifies the factors the commission may consider when granting licenses.

Summary of the rule or change:

The recent audit of the Department of Alcoholic Beverage Control by the Legislative Auditor General recommended that the commission develop a methodology for granting licenses. The methodology should include a complete list of the factors the commission may weigh when granting alcohol licenses. Most are statutory. However, the commission is also allowed to "consider any other factors or circumstances the commission considers necessary." This change identifies the factors beyond statutory lists that the commission may consider when granting licenses. The non-statutory factors include: availability of licenses under the quota; length of time the applicant has been awaiting a license; opening date; whether a seasonal business; whether the location has been previously licensed or is a new location; whether the application involves a change of ownership of an existing location; whether the applicant holds other alcohol licenses at this or other locations; whether the applicant has a violation history or a pending violation; projected alcohol sales -- extent to which the license will be utilized; nature of entertainment; and public input in support or opposition to granting the license.

State statutory or constitutional authorization for this rule:

• Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--This change identifies the non-statutory factors the commission may consider when granting licenses. The passage of this change will not fiscally affect the state's budget.

local governments:

None--The commission distributes licenses for the State of Utah. The passage of this change will not fiscally affect local government agencies.

small businesses:

None--Many of the applicants operate small businesses. The license fees remain unchanged and should not affect small businesses. This change merely identifies the non-statutory factors the commission may consider when granting licenses.

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

None--There are no costs or savings for other persons as a result of this amendment because they do not apply for licenses.

Compliance costs for affected persons:

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

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

This change is in response to a recommendation in the recent audit of the Department of Alcoholic Beverage Control by the Legislative Auditor General. The change identifies the non-statutory factors the commission may consider when granting licenses. This change will also provide important information to potential licensees now that licenses are often at capacity under the quota system. Passage of this change will not have a fiscal impact on businesses.

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 vickieashby@utah.gov

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:

02/14/2011

This rule may become effective on:

02/21/2011

Authorized by:

Dennis Kellen, Director

R81. Alcoholic Beverage Control, Administration.

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

R81-1-30. 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) 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 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 licenses under the quota;

(b) length of time the applicant has been awaiting a license;

(c) opening date;

(d) whether 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 -- extent to which the alcohol license will be utilized;

(j) nature of entertainment; and

(k) public input in support or opposition to granting the license.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [September 1, 2010]2011

Notice of Continuation: August 31, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-106(9); 32A-1-107; 32A-1-119(5)(c); 32A-1-702; 32-1-703; 32A-1-704; 32A-1-807; 32A-3-103(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); 32A-8-103(1)(a); 32A-8-503(1)(a); 32A-9-103(1)(a); 32A-10-203(1)(a); 32A-10-206(14); 32A-10-303(1)(a); 32A-10-306(5); 32A-11-103(1)(a); 32A-12-212(1)(b) and (c)