DAR File No. 39474

Alcoholic Beverage Control, Administration

Rule R81-7

Single Event Permits

Notice of Proposed Rule

(Repeal and Reenact)

DAR File No.: 39474
Filed: 06/29/2015 05:35:15 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this change is to make changes to the rule as requested by the legislative Administrative Rules Review Committee. Additionally, the rule has been redrafted to clarify language and reference statutory authority.

Summary of the rule or change:

The reenacted Rule R81-7 will combine Rule R81-7, Single Event Permits, and Rule R81-10B, Temporary Beer Permits, to bring the administrative rules in line with statutory provision of Title 32B, Chapter 9, which contains provisions for both types of event permits. The proposed rule will: 1) require complete permit applications to be submitted within seven business days in advance of the event and allows flexibility for the department to update application requirements as the need arises; 2) provide provisions for the director to consider the recommendation from the locality regarding whether a single event permit applicant is conducting a civic or community enterprise; 3) require the director to review the totality of the circumstances to determine if permit should be issued - including whether permits are being used to circumvent previsions of Title 32B, Chapter 9, and violation history of the applicant, the event and venue of the event; 4) require that the director detail any denial in writing and allow the applicant to request review by the commission if the application is denied; and 5) streamline control measures required for events. (DAR NOTE: the proposed repeal of Rule R81-10B is under DAR No. 39475 in this issue, July 15, 2015, of the Bulletin.)

State statutory or constitutional authorization for this rule:

• Subsection 32B-2-202(1)
• Title 32B, Chapter 9

Anticipated cost or savings to:

the state budget:

None--This amendment makes changes to the rule as requested by the Administrative Rules Review Committee and to clarify language and reference statutory authority. There are no anticipated costs or savings as the department's responsibilities remain the same.

local governments:

None--This amendment makes changes to the rule as requested by the Administrative Rules Review Committee and to clarify language and reference statutory authority. There are no anticipated costs or savings to local government.

small businesses:

None--This amendment makes changes to the rule as requested by the Administrative Rules Review Committee and to clarify language and reference statutory authority. There are no anticipated costs or savings to small businesses. Any additional costs or savings to small businesses would result from a business' decision related to control measures for an event or a requirement to increase control measures to minimize the likelihood of service to minors and service to intoxicated individuals based on totality of the circumstances.

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

None--This amendment makes changes to the rule as requested by the Administrative Rules Review Committee and to clarify language and reference statutory authority. There are no anticipated costs or savings to persons other than small business, businesses, or local government entities.

Compliance costs for affected persons:

None--This amendment makes changes to the rule as requested by the Administrative Rules Review Committee and to clarify language and reference statutory authority. Any compliance cost for affected persons would result from a business' decision related to control measures for an event or a requirement to increase control measures to minimize the likelihood of service to minors and service to intoxicated individuals based on totality of the circumstances.

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

This amendment makes changes to the rule as requested by the Administrative Rules Review Committee and to clarify language and reference statutory authority. Any fiscal impact that this rule may have on businesses would result from a business' decision related to control measures for an event or a requirement to increase control measures to minimize the likelihood of service to minors and service to intoxicated individuals based on totality of the circumstances.

Salvador D. Petilos, Executive 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:

• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, or by Internet E-mail at nmcdermott@utah.gov
• Andrew Hofeling at the above address, by phone at 801-977-6835, by FAX at 801-977-6888, or by Internet E-mail at ahofeling@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:

08/14/2015

Interested persons may attend a public hearing regarding this rule:

• 07/28/2015 10:00 AM, ABC, 1625 S 900 W, Salt Lake City, UT

This rule may become effective on:

08/21/2015

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-7. [Single ]Event Permits.

[R81-7-1. Application Guidelines.

(1) A single event permit is issued to those who are conducting a convention, civic or community enterprise.

(a) "Conducting" means the conduct, management, control or direction of an event. The organization directly benefiting from the event, monetarily or otherwise, shall be deemed to be conducting the event.

(b) "Convention, civic or community enterprise" means a function that is in the nature of a temporary special event such as a social, business, religious, political, governmental, educational, recreational, cultural, charitable, athletic, theatrical, scholastic, artistic, or scientific event. A "civic or community enterprise" generally is a gathering that brings members of a community together for the common good.

(2) An application for a single event permit application shall be considered for issuance of a single event permit when the requirements of Section 32B-1-304 and 32B-9-201, -203 and -304 have been met, and a completed application has been received by the department. Applications submitted less than 30 days to prior to the event risk non-issuance of a permit and the department will not consider an application submitted less than 7 business days prior to the event.

(a) Once received, the application will be considered in compliance with section 32B-9-202.

(b) All approvals, notifications, requests for meetings or requirements to inform under section 32B-9-202 shall be done electronically. For purposes of 32B-9-202(4), notice to law enforcement, the department may provide notice to law enforcement of the preliminary approval within three business days of the event, so long as law enforcement is notified if that approval does not become final.

(3) Pursuant to Section 32B-9-303, Subject to the requirements of 32B-9-202(2)(f)(g)and(h) and 32B-9-202(3)(a)(b)(c)and(d), the director may grant single event permits to a bona fide partnership, corporation, limited liability company, church, political organization, or incorporated association, and to each bona fide and recognized subordinate lodge, chapter or local unit of any qualifying parent entity. To be a "bona fide" and "recognized" subordinate or local entity, the applicant must have been in existence for at least one year prior to the date of the application and must furnish proof thereof.

(4) If the applicant is a bona fide incorporated association, corporation, or a separately incorporated subordinate lodge, chapter or local unit thereof, the applicant shall submit a copy of its certificate and articles of incorporation from the state, which reflect that the applicant has been in existence for at least one year prior to date of application.

(5) If the applicant is a bona fide limited liability company, the applicant shall submit a copy of its limited liability company certificate of existence from the state, which reflects that the applicant has been in existence for at least one year prior to date of application.

(6) If the applicant is a bona fide church, political organization, or recognized subordinate chapter or local unit thereof, the applicant shall submit proof of its tax exempt status as provided by the Internal Revenue Service.

(7) Any subordinate or local entity of a parent entity must also establish that it is duly "recognized" by the parent entity by providing written verification of its "recognized" status such as a letter from, or bylaws of the parent entity. The subordinate or local unit shall also furnish proof that the parent entity qualifies under sections (1), (2), (3), (4), and (5) of this rule. These requirements shall not apply in situations where the subordinate or local unit is separately incorporated.

(8) Single event permits are issued to state agencies, political subdivisions of the state, and organizations listed in Subsection (2) that are conducting a convention, civic or community enterprise. Single event permits may not be issued to or obtained by an entity or organization for the purpose of avoiding or attempting to avoid the requirement of state retail alcohol licensing.

To ensure compliance with Subsection (1),the director may consider factors such as:

(a) the purpose of the entity or organization;

(b) the nature and purpose of the event;

(c) the type of entertainment, if any, at the event;

(d) the location of the event;

(e) the frequency of events held at the same location;

(f) whether the location is government owned and operated; and

(g) the extent to which the event:

(i) benefits the community;

(ii) is held for charitable purposes; or

(iii) is held for the profit of the entity or organization.

(9) Calendar year is defined as January 1 through December 31.

(10) The single event permit bond, as required by Section 32B-9-304(3), shall not be released back to the single event permittee until the permittee provides to the department the required data regarding liquor purchases, sales, prices charged, and net profit generated at the event for which the single event permit was issued.

(11) If an organization or individual other than the one applying for the single event permit posts the $1,000 bond required by Section 32B-9-304(3), an affidavit must be submitted attesting that the $1,000 bond is for the permittee's compliance with the provisions of the Act and the commission rules, and that if a violation occurs at the single event, the bond may be forfeited.

(12) The director may authorize multiple sales outlets on different properties under one single event permit, provided that each site conforms to location requirements of Section 32B-9-201(4). The commission may authorize simultaneous sale and consumption hours at multiple sales outlets.

 

R81-7-2. Guidelines for Issuing Permits.

(1) Purpose In deciding whether to issue a single event permit for such events, the director must be satisfied that sufficient controls will be in place to minimize the possibility of minors being sold or furnished alcohol or adults being over-served alcohol at the event. This rule identifies control measures that must be in place before the director will issue a single event permit. However, this rule gives the director discretion not to require specific control measures under certain circumstances after considering the facts and circumstances of a particular event. The sale of alcohol at outdoor public events such as street festivals, fairs, concerts, and rodeos poses special control issues for event organizers and law enforcement officials. Furthermore, the sale of beer at public events attended by large numbers of people, many of whom may be under the age of 21, also poses special control issues. Applicants for outdoor or large scale events will need to address these issues in their application.

(2) Definitions.

(a) For purposes of this rule, "large-scale public event" includes any event that is open to the general public and the estimated attendance at the event is in excess of 1000 people.

(3) Authority. This rule is enacted under the authority of Sections 63G-3-201, 32B-2-202 and 32B-9-202 and -303.

(4) Policy.

(a) Before a single event permit will be issued by the director to allow the sale of alcoholic beverages at an outdoor or a large-scale public event, the following control measures must be present at the event:

(i) There must be at least one location at the event where those wanting to purchase alcoholic beverages must show proof of age and either have their hand stamped or be issued a non-transferable wristband.

(A) The proof of age location(s) shall be separate from the alcoholic beverage sales and dispensing location(s).

(B) Proof of age may be established by:

(I) a current valid driver's license that includes date of birth and has a picture affixed and is issued in this state under Title 53, Chapter 3, Uniform Driver License Act, or in accordance with the laws of another state;

(II) a current valid identification card that includes date of birth and has a picture affixed issued by this state under Title 53, Chapter 3, Part 8, identification Card Act, or issued by another state that is substantially similar to this state's identification card;

(III) a current valid military identification that includes date of birth and has a picture affixed; or

(IV) a current valid passport.

(C) Any person assigned to check proof of age shall have completed the alcohol server-training seminar outlined in 62A-15-401.

(D) The use of hand stamps or issuance of wristbands does not relieve those selling and dispensing alcoholic beverages from asking for proof of age if they suspect a person attempting to purchase an alcoholic beverage is under the age of 21 years.

(ii) Alcoholic sales and dispensing location(s) shall be separate from food and non-alcoholic beverage concession locations. However, if the consumption of alcohol at the event is limited to a confined, restricted area such as a "beer garden", then alcoholic beverages, food and non-alcoholic beverages may be sold at the same sales locations within the confined, restricted area.

(iii) Alcoholic beverages shall be served in readily identifiable cups or containers distinct from those used for non-alcoholic beverages.

(iv) No more than two alcoholic beverages shall be sold to a customer at a time.

(v) At least one person who has completed the alcohol server training seminar outlined in 62A-15-401 shall be at each location where alcoholic beverages are sold and dispensed to supervise the sale and dispensing of alcoholic beverages.

(vi) If minors may attend the event, all dispensing and consumption of alcoholic beverages shall be in a designated, confined, and restricted area where minors are not allowed without being accompanied by a parent or guardian, and where alcohol consumption may be closely monitored.

(b) Notwithstanding Subsection (a), the director, after reviewing the facts and circumstances of a particular outdoor or large-scale public event, has the discretion to relax any of the control measures outlined in Subsection (a) above.

(c) After reviewing the facts and circumstances of the outdoor or large-scale public event, the director has the discretion to require additional control measures as a condition of issuing a single event permit. These can include but are not limited to the following:

(i) Placing limits on the variety of alcoholic beverages served at the event.

(ii) Requiring that alcoholic beverages be distinguishable in appearance from non-alcoholic beverages.

(iii) Requiring a certain minimum number of law enforcement and/or security personnel at the event.

(5) Procedure. The following procedure shall govern applications for single event permits for outdoor or large-scale public events:

(a) In addition to providing a description of the times, dates, location, nature and purpose of the event, the applicant shall include in the single event permit application a summary of all control measures that will be taken at the event to reduce the possibility of minors being furnished alcohol and adults being over-served alcohol at the event.

(b) Department staff shall provide this information to the director prior to the director's consideration of the single event permit application.

(c) The director shall review the application to determine if all statutory requirements are in place, to determine if all controls listed in Subsections (4)(a)(i) through (vi) are in place, to consider any request to waive any of the controls listed in Subsections (4)(a)(i) through (vi), and to assess whether any additional control measures such as those listed in Subsection (4)(c) should be required prior to issuing the single event permit.

 

R81-7-3. Price Lists.

(1) A single event permittee shall have a printed alcoholic beverage price list available for inspection containing prices of mixed drinks, wine, beer, and heavy beer. The list shall include any charges for the service of packaged wines or heavy beer, and any service charges for the supply of glasses, chilling, or wine service.

(2) The permittee or an employee of the licensee may not misrepresent the price of any alcoholic beverage that is sold or offered for sale on the event premises.]

R81-7-1. Authority and Purpose.

(1) Pursuant to 32B-2-202(1)(c)(i) and (1)(n), this rule establishes procedures and criteria for issuing and denying event permits in accordance with 32B-9.

 

R81-7-2. Application Guidelines.

(1) A event permit application will not be submitted to the Director for consideration until the requirements of Section 32B-1-304, 32B-9-201-203, -304 (for single event permits) and -405 (for temporary beer event permits) have been met, including:

(a) A complete application including all documents and supplemental materials listed on the department's application checklist has been submitted to the department 7 business days prior to the event; and

(b) The department has conducted an investigation in compliance with 32B-9-202(1)(a).

 

R81-7-3. Guidelines for Issuing Permits.

(1) Once submitted to the director, the application will be considered in compliance with 32B-9-202 and 303 (for single event permits) and -403 (for temporary beer event permits), including consideration of (2) (for single event permits), (3) (4) and (5) below.

(i) After consideration of the totality of the circumstances, the director will either issue a preliminary decision to issue or deny the event permit or refer the application to the commission in accordance with 32B-9-202(3).

(ii) If the director issues a preliminary decision to deny issuance of an event permit, the decision shall be provided in writing detailing the basis for the denial.

(iii) An applicant may submit a request for review by the commission within the time limits of 32B-9-202(3)(b) and (c) related to the three business day review period and regularly scheduled commission meetings. If at least three commissioners request review of the denial in compliance with 32B-9-202(3)(b) and (c), the commission shall review the request at their next regularly schedule commission meeting.

(2) Additional Consideration for Single Event Permits: In accordance with 32B-9-303(2), a single event permit is issued to entities in existence for a year or more conducting a convention, civic or community enterprise.

(a) "Conducting" means the conduct, management, control or direction of an event. An applicant may be deemed to be conducting the event if there is a contract in which the applicant has been designated as the agent for the event's beverage service.

(3) As part of local consent required by 32B-9-201(1)(c), the locality may provide a recommendation as to whether the entity is conducting a civic or community enterprise. The director may consider the recommendation of the local authority in determining whether the entity is conducting a civic or community enterprise. Notwithstanding subsections (a), an event permit will not be issued if, based on the totality of the circumstances, it is determined that the permit is being used to circumvent other applicable requirements of 32B-9 Event Permit Act, Violation History: In accordance with 32B-9-202(2)(d), in considering the nature of the event, the director will consider the violation history for the last three years of the applicant, the event, and the venue where the event will be held.

(4) Control Measures: In accordance with 32B-9-202(2)(d), in considering the nature of the event, the director must determine that adequate and appropriate control measures will be in place to minimize the possibility of minors being sold or furnished alcohol or adults being over-served alcohol at the event.

(a) Before an event permit may be issued by the director, the following control measures must be present at the event unless relaxed by the director in accordance with section (c) below.

(i) There must be at least one location at the event where those wanting to purchase alcoholic beverages must show proof of age;

(ii) Any person assigned to check proof of age shall have completed the alcohol server training seminar outlined in 62A-15-401;

(iii) At least one person who has completed the alcohol server training seminar outlined in 62A-15-401 shall be at each location where alcoholic beverages are sold and dispensed to supervise the sale and dispensing of alcoholic beverages;

(iv) The event shall be properly secured and completely delineated by some type of physical structure(s), such as fencing, walls, gates and secured entry and exits; and

(v) A minimum of one (1) security person for every fifty (50) people estimated to be in the consumption area at one time: security may include police officers, hired security, organization staff members and security volunteers.

(b) In accordance with 32B-9-202(2)(e), the following additional control measures must be present for an outdoor pubic event or a large-scale public event where minors are present, unless relaxed by the director in accordance with section (c) below.

(i) Alcoholic beverages shall be served in readily identifiable cups or containers distinct from those used for non-alcoholic beverages;

(ii) All dispensing and consumption of alcoholic beverages shall be in a designated, confined, and restricted area where minors are not allowed without being accompanied by a parent or guardian, and where alcohol consumption may be closely monitored;

(iii) The proof of age location(s) shall be separate from the alcoholic beverage sales and dispensing location(s); and

(iv) The proof of age location(s) will either issue a hand stamp and/or non-transferable wristband.

(c) The director, after reviewing the facts and circumstances of a particular event, has the discretion to relax any of the control measures outlined in Subsection (a) and (b) above or to require additional control measures as a condition of issuing an event permit.

(5) In accordance with 32B-9-202(2)(d), the director may authorize multiple sales outlets on different properties under one single event permit, provided that each site conforms to location requirements of Section 32B-9-201(4).

(6) All approvals, notifications, requests for meetings or requirements to inform under section 32B-9-202 shall be done electronically.

(7) For purposes of 32B-9-202(4), the department may provide notice to law enforcement of the preliminary approval within three business days of the event, so long as law enforcement is notified if that approval does not become final.

 

KEY: alcoholic beverages, [single ]event permits

Date of Enactment or Last Substantive Amendment: [March 25, 2014]2015

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-202(1); 32B-9-101; 32B-9-102; 32B-9-201; 32B-9-202; 32B-9-203; 32B-9-204; 32B-9-301; 32B-9-302; 32B-9-303; 32B-9-304; 32B-9-305; 32B-9-401; 32B-9-402; 32B-9-403; 32B-9-404; 32B-9-405; 32B-9-406