DAR File No. 42289

Alcoholic Beverage Control, Administration

Section R81-4C-14

Grandfathered Bar Structures

Notice of Proposed Rule

(Amendment)

DAR File No.: 42289
Filed: 11/01/2017 04:08:34 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is necessary to implement H.B. 442 passed in the 2017 General Session. This proposed rule amendment defines "remodels the grandfathered bar structure or dining area" that would require a grandfathered limited service restaurant to comply with provisions of Section 32B-6-305.2 prior to 07/01/2022. This definition is required by Subsection 32B-6-305.3(4).

Summary of the rule or change:

This proposed rule amendment adopts the definition of "remodels the grandfathered bar structure" found in this rule and applies to the bar structure and dining area.

Statutory or constitutional authorization for this rule:

• Section 32B-6-305.3
• Section 32B-1-102
• Section 32B-6-302
• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--Any anticipated cost or savings to the state budget are a result of the statutory requirements of H.B. 442 (2017), which requires the Alcohol Beverage Control Commission (Commission) to define when a limited service restaurant has remodeled their grandfathered bar or dining area. Costs and savings for administering this change were calculated as part of the fiscal note. This rule change does not create any additional cost or savings beyond what was anticipated during the legislative process.

local governments:

None--Any anticipated cost or savings to local governments are a result of the statutory requirements of H.B. 442 (2017), which requires the Commission to define when a limited service restaurant has remodeled their grandfathered bar or dining area. Costs and savings to local government were calculated as part of the fiscal note. This rule change does not create any additional cost or savings beyond what was anticipated during the legislative process.

small businesses:

None--Any anticipated cost or savings to small businesses are a result of the statutory requirements of H.B. 442 (2017), which requires the Commission to define when a limited service restaurant has remodeled their grandfathered bar or dining area. This rule provides clarification to licensees (including small businesses) as to what changes can be made to their limited service restaurant without losing their grandfathered status prior to 07/01/2018. While a remodel, as defined by this rule, would require that the licensee comply with additional operational requirements prior to 07/01/2022, those costs and savings were calculated as part of the fiscal note for H.B. 442 (2017). This rule change does not create any additional cost or savings beyond what was anticipated during the legislative process.

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

None--Any anticipated cost or savings to persons other than small businesses, businesses, or local government entities are a result of the statutory requirements of H.B. 442 (2017), which requires the Commission to define when a limited service restaurant has remodeled their grandfathered bar or dining area. Costs and savings were calculated as part of the fiscal note. This rule change does not create any additional cost or savings beyond what was anticipated during the legislative process.

Compliance costs for affected persons:

None--Any compliance cost for limited service restaurants are a result of the statutory requirements of H.B. 442 (2017), which requires the Commission to define when a limited service restaurant has remodeled their grandfathered bar or dining area. This rule amendment provides clarification to licensees as to what changes can be made to their limited service restaurant without losing their grandfathered status prior to 07/01/2018. While a remodel, as defined by this rule, would require that the licensee comply with additional operational requirements prior to 07/01/2022, those costs and savings were calculated as part of the fiscal note for H.B. 442 (2017). This rule change does not create any additional cost or savings beyond what was anticipated during the legislative process.

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

None--Any anticipated cost or savings to businesses are a result of the statutory requirements of H.B. 442 (2017), which requires the Commission to define when a limited service restaurant has remodeled their grandfathered bar or dining area. This rule amendment provides clarification to licensees (including businesses) as to what changes can be made to their limited service restaurant without losing their grandfathered status prior to 07/01/2018. While a remodel, as defined by this rule, would require that the licensee comply with additional operational requirements prior to 07/01/2022, those costs and savings were calculated as part of the fiscal note for H.B. 442 (2017). This rule change does not create any additional cost or savings beyond what was anticipated during the legislative process.

Salvador D. Petilos, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office 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]
• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, 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:

12/15/2017

This rule may become effective on:

12/22/2017

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-4C. Limited Restaurant Licenses.

R81-4C-14. Grandfathered Bar Structures.

(1) Authority [and Purpose] 32B-1-102; 32B-6-302; and 32B-6-305.3.

(2) The purpose of this rule is to define terms for full service restaurant licenses as required by 32B-6 Part 3.[(a) This rule is pursuant to 32B-6-302 which provides that:

(i) a bar structure, as defined in 32B-1-102(7), located in a currently licensed limited restaurant as of May 11, 2009, may be "grandfathered" to allow alcoholic beverages to continue to be stored or dispensed at the bar structure, and in some instances to be served to an adult patron seated at the bar structure;

(ii) a bar structure in a limited restaurant that is not operational as of May 12, 2009, may be similarly "grandfathered" if, as of May 12, 2009:

(A) a person has applied for a limited restaurant license from the commission;

(B) the person is "actively engaged in the construction of the restaurant" as defined by commission rule; and

(C) the person is granted a limited restaurant liquor license by the commission no later than December 31, 2009.

(b) This rule is also pursuant to 32B-6-302 which provides that:

(i) a "grandfathered bar structure" is no longer "grandfathered" once the limited restaurant "remodels the grandfathered bar structure"; and

(ii) the commission shall define by rule what is meant by "remodels the grandfathered bar structure"].

([2]3) [Application of Rule]Definitions.

(a) "Actively engaged in the construction of the restaurant" for purposes of 32B-6-302(1)(a)(ii)(A)(I) means that:

(i) a building permit has been obtained to build the restaurant; and

(ii) a construction contract has been executed and the contract includes an estimated date that the restaurant will be completed; or

(iii) work has commenced by the applicant on the construction of the restaurant and a good faith effort is made to complete the construction in a timely manner.

(b) "remodels the grandfathered bar structure" for purposes of 32B-6-302(1)(b)means that:

(i) the grandfathered bar structure has been altered or reconfigured to:

(A) extend the length of the existing structure to increase its seating capacity; or

(B) increase the visibility of the storage or dispensing area to restaurant patrons.

(c) "remodels the grandfathered bar structure" does not:

(i) preclude making cosmetic changes or enhancements to the existing structure such as painting, staining, tiling, or otherwise refinishing the bar structure;

(ii) preclude locating coolers, sinks, plumbing, cooling or electrical equipment to an existing structure; or

(iii) preclude utilizing existing space at the existing bar structure to add additional seating.

(d) Pursuant to 32B-5-303(3), the licensee must first apply for and receive approval from the department for a change of location where alcohol is stored, served, and sold other than what was originally designated in the licensee's application for the license. Thus, any modification of the alcoholic beverage storage and dispensing area at a "grandfathered bar structure" must first be reviewed and approved by the department to determine whether it is:

(i) an acceptable use of an existing bar structure; or

(ii) a remodel of a "grandfathered bar structure".

(e) "remodels the grandfathered bar structure or dining area" for purposes of 32B-6-305.3(4)(a)(ii) means that:

(i) the grandfathered bar structure or dining area has been altered or reconfigured to:

(A) extend the length of the existing bar structure to increase its seating capacity; or

(B) increase the visibility of the storage or dispensing area to restaurant patrons from the dining area.

(f) "remodels the grandfathered bar structure or dining area" does not:

(i) preclude making cosmetic changes or enhancements to the existing bar structure such as painting, staining, tiling, or otherwise refinishing the bar structure;

(ii) preclude locating coolers, sinks, plumbing, cooling or electrical equipment to an existing structure; or

(iii) preclude utilizing existing space at the existing bar structure to add additional seating.

(g) Pursuant to 32B-5-303(3), the licensee must first apply for and receive approval from the department for a change of location where alcohol is stored, served, and sold other than what was originally designated in the licensee's application for the license. Thus, any modification of the alcoholic beverage storage, dispensing, or consumption area must first be reviewed and approved by the department to determine whether it is:

(i) an acceptable use of an existing bar structure or dining area; or

(ii) a remodel of a "grandfathered bar structure or dining area".

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [November 26, 2013]2017

Notice of Continuation: July 10, 2013

Authorizing, and Implemented or Interpreted Law: 32B-2-202; 32B-5-303(3); 32B-6-207; 32B-6-301 through 305.1