Alcoholic Beverage Control, Administration

Rule R81-10A

On-Premise Beer Retailer Licenses

Notice of Proposed Rule

(Amendment)

DAR File No.: 35064
Filed: 07/14/2011 10:20:27 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement S.B. 314 which was passed in the 2011 General Session. The rule amendment also makes nonsubstantive changes regarding statutory references subsequent to the recodification the Alcoholic Beverage Control Act that replaced Title 32A with Title 32B effective 07/01/2011.

Summary of the rule or change:

This rule amendment is required by S.B. 314 passed in the 2011 General Session. It implements changes made to the on-premise beer licenses that are not taverns. S.B. 314 changed the nontavern on-premise beer license to a "recreational amenity" on-premise beer license. This amendment clarifies the definition of a "recreational amenity" and adds "recreational amenity" to the on-premise beer retailer references in the existing rule. This amendment also removes a section regarding minors on the premises that has been moved to the new Section R81-1-30 and makes nonsubstantive changes regarding statutory references subsequent to the recodification the Alcoholic Beverage Control Act that replaced Title 32A with Title 32B effective 07/01/2011.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202
• Section 32B-6-702

Anticipated cost or savings to:

the state budget:

None--This rule amendment is the result of statutory requirements and clarifies operational procedures that are already in place for existing and prospective on-premise beer licensees. There are no state budget costs or savings involved in this rule amendment.

local governments:

None--The provisions in this rule are regulated by state government and do not affect costs or savings of local governments.

small businesses:

None--Many licensees are small businesses that are already operating or will operate under the rules that are being amended. There will be no additional costs or savings associated with this amended rule for small businesses.

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

These rules only affect licensed businesses and there is no cost or savings affect on other persons.

Compliance costs for affected persons:

This amended rule is one of many statutorily based regulations that licensees must abide by in the course of their normal business operations. There should be no additional compliance costs for affected persons.

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

The statutory mandate that this rule addresses will have no fiscal impact on businesses. It is based on a statutory mandate and amends rules that licensees are already operating under on an ongoing basis.

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 ncohen@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:

08/31/2011

This rule may become effective on:

09/22/2011

Authorized by:

Dennis Kellen, Director

R81. Alcoholic Beverage Control, Administration.

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

R81-10A-1. Definitions.

(1) "Recreational Amenity" is one or more of the following or an activity substantially similar to one of the following:

(a) a billiard parlor;

(b) a pool parlor;

(c) a bowling facility;

(d) a golf course;

(e) miniature golf;

(f) a golf driving range;

(g) a tennis club;

(h) a sports facility that hosts professional sporting events and has a seating capacity equal to or greater than 6,500;

(i) a concert venue that has a seating capacity equal to or greater than 6,500;

(j) one of the following if owned by a government agency:

(i) a convention center;

(ii) a fair facility;

(iii) an equestrian park;

(iv) a theater; or

(v) a concert venue;

(k) an amusement park:

(i) with one or more permanent amusement rides; and

(ii) located on at least 50 acres;

(l) a ski resort;

(m) a venue for live entertainment if the venue:

(i) is not regularly open for more than five hours on any day;

(ii) is operated so that food is available whenever beer is sold, offered for sale, or furnished at the venue; and

(iii) is operated so that no more than 15% of its total annual receipts are from the sale of beer; or

(n) concessions operated within the boundary of a park administered by the:

(i) Division of Parks and Recreation; or

(ii) National Parks Service.

 

[R81-10A-1]R81-10A-2. Licensing.

(1) [On-premise]Recreational amenity on-premise beer retailer licenses are issued to persons as defined in Section [32A-1-105(44)]32B-1-102(74). 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)]32B-5-310.

(2) [An on-premise]A recreational amenity 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 recreational amenity 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]32B-5-202, -204 and 32B-6-204, or a limited restaurant license pursuant to the requirements of Sections [32A-4-303, -304, and -306]32B-5-201, -204 and 32B-6-304.

(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]Recreational amenity on-premise beer retailer licensees holding a separate restaurant liquor license must operate in accordance with [32A-4-106]32B-5-301 and 32B-6-205 and R81-4A during the hours the restaurant liquor license is active.

(d) [On-premise]Recreational amenity on-premise beer retailer licensees holding a separate limited restaurant license must operate in accordance with [32A-4-307]32B-5-301 and 32B-6-305 and R81-4C during the hours the limited restaurant license is active.

(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 recreational amenity on-premise beer retailer license is active.

 

[R81-10A-2]R81-10A-3. Application.

A license application shall be included in the agenda of the monthly commission meeting for consideration for issuance of [an]a recreational amenity on-premise beer retailer license when the requirements of Sections [32A-10-202, -203, and -205]32B-1-304, 32B-5-201, -204 and 32B-6-705 have been met, and a completed application has been received by the department and the beer retailer premises have been inspected by the department.

 

[R81-10A-3]R81-10A-4. Bonds.

No part of any corporate or cash bond required by Section [32A-10-205]32B-5-204 and 32B-6-705(4) may be withdrawn during the time the license is in effect. If the recreational amenity on-premise beer licensee fails to maintain a valid corporate or cash bond, the license shall be immediately suspended until a valid bond is obtained. Failure to obtain a bond within 30 days of notification by the department of the delinquency shall result in the automatic revocation of the license.

 

[R81-10A-4]R81-10A-5. Insurance.

Public liability and dram shop insurance coverage required in Section [32A-10-202(1)(h) and (i)]32B-5-201(2)(j)must remain in force during the time the license is in effect. Failure of the licensee to maintain the required insurance coverage may result in a suspension or revocation of the license by the commission.

 

[R81-10A-5. On-premise Beer Licensee Operating Hours.

Beer sales shall be in accordance with Section 32A-10-206(4). However, on-premise beer licensees may open their beer storage area during hours otherwise prohibited for the limited purpose of inventory, restocking, repair, and cleaning.

 

]R81-10A-6. Identification Badge.

Each employee of the licensee who sells, dispenses or provides alcoholic beverages shall wear a unique identification badge visible above the waist, bearing the employee's first name, initials, or a unique number in letters or numbers not less than 3/8 inch high. The identification badge must be worn on the front portion of the employee's body. The licensee shall maintain a record of all employee badges assigned, which shall be available for inspection by any peace officer, or representative of the department. The record shall include the employee's full name and address and a driver's license or similar identification number.

 

[R81-10A-7. Draft Beer Sales/Minors on Premises.

A state on-premise beer license, restaurant liquor license, airport lounge license, limited restaurant license, on-premise banquet license or private club license authorizes the licensee to sell beer on draft regardless of the nature of the business (e.g. cafe, restaurant, pizza parlor, bowling alley, golf course clubhouse, club, tavern, etc.). Minors may not be precluded from establishments based upon whether draft beer is sold. However, minors may not be employed by or be on the premises of any establishment or portion of an establishment which is a "tavern" as defined in Section 32A-1-105(67). This does not preclude local authorities and licensees from excluding minors from premises or portions of premises which have the atmosphere or appearance of a "tavern" as so defined.

 

]KEY: alcoholic beverages

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

Notice of Continuation: November 3, 2010

Authorizing, and Implemented or Interpreted Law: [32A-1-107]32B-2-202; 32B-6-702