No. 31336 (Amendment): R81-4D-1. Licensing

DAR File No.: 31336
Filed: 04/30/2008, 01:55
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Gathering Place in West Jordan asked the Alcoholic Beverage Control (ABC) Commission to amend its current rule regarding eligibility to hold an On-Premise Banquet License. The ABC Commission voted to direct the proposal of this rule amendment.

Summary of the rule or change:

There are four types of entities that qualify for an On-Premise Banquet license to store, sell, and serve alcoholic beverages on the premises. The convention center venue is the only one of the four with a minimum square footage requirement. The Gathering Place qualifies for the license except for meeting the minimum square footage requirement. The proposed rule amendment simply deletes the language regarding minimum square footage for convention centers.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--Implementation of this proposed amendment does not change how On-Premise Banquet Licenses applications are considered or granted. There will be no increase in application fees and no additional staff man-hours required.

local governments:

None--Local governments are not involved in the issuance of On-Premise Banquet licenses.

small businesses and persons other than businesses:

This proposed rule amendment primarily affects small convention or conference centers. If passed, the rule will allow small businesses who were not previously eligible to hold an On-Premise Banquet license to apply for and hold the license. For those who decide to take advantage of this opportunity, there will be application and compliance costs involved. Persons other than businesses will not be fiscally affected by this rule amendment.

Compliance costs for affected persons:

Small convention centers that opt to take advantage of holding an On-Premise Banquet license will be required to file an application with the Department of Alcoholic Beverage Control (DABC), pay a $250 application fee and an annual $500 license fee, and post a $10,000 compliance bond They will also be required to comply with storage and sales regulation.

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

DABC recognizes the need for many small convention centers to have alcoholic beverages available for contracted events on their premises. Applying for an On-Premise Banquet license is a business decision that will involve a fiscal impact on these businesses. The business must determine whether alcoholic beverage sales revenues will offset the cost of the license and compliance. 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:

Sharon Mackay at the above address, by phone at 801-977-6800, 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:

06/16/2008

This rule may become effective on:

06/23/2008

Authorized by:

Dennis R. Kellen, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-4D. On-Premise Banquet License.

R81-4D-1. Licensing.

(1) An on-premise banquet license may be issued only to a hotel, resort facility, sports center or convention center as defined in this rule.

(a) "Hotel" is a commercial lodging establishment:

(i) that offers temporary sleeping accommodations for compensation;

(ii) that is capable of hosting conventions, conferences, and food and beverage functions under a banquet contract;

(iii) that has adequate kitchen or culinary facilities on the premises of the hotel to provide complete meals; and

(iv) that has at least 1000 square feet of function space consisting of meeting and/or dining rooms that can be reserved for private use under a banquet contract that can accommodate a minimum of 75 people, provided that in cities of the third, fourth or fifth class, unincorporated areas of a county, and towns, the commission shall have the authority to waive the minimum function space size requirements.

(b) "Resort facility" is a publicly or privately owned or operated commercial recreational facility or area:

(i) that is designed primarily to attract and accommodate people to a recreational or sporting environment;

(ii) that is capable of hosting conventions, conferences, and food and beverage functions under a banquet contract;

(iii) that has adequate kitchen or culinary facilities on the premises of the resort to provide complete meals; and

(iv) that has at least 1500 square feet of function space consisting of meeting and/or dining rooms that can be reserved for private use under a banquet contract that can accommodate a minimum of 100 people, provided that in cities of the third, fourth, or fifth class, unincorporated areas of a county, and towns, the commission shall have the authority to waive the minimum function space size requirements.

(c) "Sports center" is a publicly or privately owned or operated facility:

(i) that is designed primarily to attract people to and accommodate people at sporting events;

(ii) that has a fixed seating capacity for more than 2,000 persons;

(iii) that is capable of hosting conventions, conferences, and food and beverage functions under a banquet contract;

(iv) that has adequate kitchen or culinary facilities on the premises of the sports center to provide complete meals; and

(v) that has at least 2500 square feet of function space consisting of meeting and/or dining rooms that can be reserved for private use under a banquet contract that can accommodate a minimum of 100 people, provided that in cities of the third, fourth, or fifth class, unincorporated areas of a county, and towns, the commission shall have the authority to waive the minimum function space size requirements.

(d) "Convention center" is a publicly or privately owned or operated facility:

(i) the primary business or function of which is to host conventions, conferences, and food and beverage functions under a banquet contract;

[(ii) that is a total of at least 30,000 square feet;

(iii)](ii) that has adequate kitchen or culinary facilities on the premises of the convention center to provide complete meals; and

[(iv)](iii) that has at least 3000 square feet of function space consisting of meeting and/or dining rooms that can be reserved for private use under a banquet contract that can accommodate a minimum of 100 people, provided that in cities of the third, fourth, or fifth class, unincorporated counties, and towns, the commission shall have the authority to waive the minimum function space size requirements.

(2)(a) A "banquet contract" as used in this rule means an agreement between an on-premise banquet licensee and a host of a banquet to provide alcoholic beverage services at a meal, reception, or other private banquet function at a defined location on a specific date and time for a pre-arranged, guaranteed number of attendees at a negotiated price.

(b) Each "banquet contract" shall:

(i) clearly define the location of the private banquet function;

(ii) require that the private banquet function be separate from other areas of the facility that are open to the general public; and

(iii) require signage at or near the entrance to the private banquet function to indicate that the location has been reserved for a specific group.

(3) On-premise banquet licenses are issued to persons as defined in Section 32A-1-105(36). Any contemplated action or transaction that may alter the organizational structure or ownership interest of the person to whom the license is issued must be submitted to the department for approval prior to consummation of any such action to ensure there is no violation of Sections 32A-4-402(4), 32A-4-403, and 32A-4-406(26).

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: [August 26, 2005]2008

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