No. 33469 (Amendment): Section R81-7-1. Application Guidelines

(Amendment)

DAR File No.: 33469
Filed: 03/22/2010 04:11:38 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is filed to implement the Alcoholic Beverage Commission's (Commission) desire to deal with applicants possibly using single event permits in an attempt to avoid state retail alcohol licensing.

Summary of the rule or change:

The Commission is concerned with applicants using single event permits to avoid state retail alcohol licensing. To ensure compliance, the rule amendment clarifies the factors the Commission may consider when issuing single event permits.

State statutory or constitutional authorization for this rule:

• Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

None--This rule amendment clarifies the factors the Commission may consider when issuing single event permits. There are no costs or savings involved in this rule amendment.

local governments:

None--Single event permits are issued by the Department of Alcoholic Beverage Control and not local governments.

small businesses:

None--Many of the applicants operate small businesses. The single event permit fees remain unchanged and should not affect small businesses. This rule amendment merely clarifies the factors the Commission may consider to ensure applicants are not attempting to avoid state retail alcohol licensing requirements.

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

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

Compliance costs for affected persons:

None--Since the application fee remains unchanged, businesses should experience no additional compliance costs.

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

It has been the Commission's practice to consider the factors outlined in this rule amendment. There will not be a fiscal impact on businesses as the application fee remains unchanged.

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 [e-mail]

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:

05/17/2010

This rule may become effective on:

05/24/2010

Authorized by:

Dennis Kellen, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-7. Single Event Permits.

R81-7-1. Application Guidelines.

(1) A single event permit application for the purpose of conducting a convention, civic or community enterprise, shall be included in the agenda of the monthly commission meeting for consideration for issuance of a single event permit, when the requirements of Section 32A-7 have been met, and a completed application has been received by the department. "Conducting" as used herein 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.

(2) Pursuant to Section 32A-7-101, the commission 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.

(3) 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.

(4) 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.

(5) 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.

(6) 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.

(7) 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 this Subsection (7), the commission 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.

[(7)](8) Calendar year is defined as January 1 through December 31.

[(8)](9) The single event permit bond, as required by Section 32A-7-105, 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.

[(9)](10) If an organization or individual other than the one applying for the single event permit posts the $1,000 bond required by Section 32A-7-105, 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.

[(10)](11) The commission may authorize multiple sales outlets on different properties under one single event permit, provided that each site conforms to location requirements of Section 32A-7. The commission may authorize simultaneous sale and consumption hours at multiple sales outlets.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [June 27, 2008] 2010

Notice of Continuation: August 24, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-107

 

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