No. 35065 (New Rule): Rule R81-10C. Beer Only Restaurant Licenses

(New Rule)

DAR File No.: 35065
Filed: 07/14/2011 10:22:28 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is proposed to implement the new beer only restaurant license created in S.B. 314 passed in the 2011 General Session.

Summary of the rule or change:

The 2011 Legislature created a new beer only restaurant license type in the Retail License Act to be effective on 03/01/2012. This rule is proposed to ensure that beer only restaurant licensees are regulated in the same way as the holders of other license types.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule elaborates on the statutory requirements for this license type that are established in Title 32B, Chapter 6, whereby this license type was created. The rule does not affect the state budget.

local governments:

Beer only restaurants are regulated on the state level and this rule only affects persons licensed as such. Therefore, this rule will have no costs or savings to local governments.

small businesses:

None.--Some beer only restaurants will be operated by small businesses, however, this rule will not impose any costs or savings to small businesses because any licensing fees and associated costs are established through the statutory creation of this license.

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

None. The regulations for beer only restaurants will only affect the licensee and no other persons, therefore this rule will have no fiscal impact on other persons.

Compliance costs for affected persons:

None--Statutory requirements establish compliance parameters and any resulting costs. This rule does not impose any additional compliance costs.

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

This rule is written to ensure that holders of beer only restaurant licenses comply with rules that are required of other license holders. The guidelines are reasonable and will have no fiscal impact on businesses.

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 [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:

08/31/2011

This rule may become effective on:

09/22/2011

Authorized by:

Dennis Kellen, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-10C. Beer-Only Restaurant Licenses.

R81-10C-1. Licensing.

(1) Beer-only restaurant licenses are issued to persons as defined in Section 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 32B-5-310.

 

R81-10C-2. Application.

A license application shall be included in the agenda of the monthly commission meeting for consideration for issuance of a beer-only restaurant license when the requirements of Sections 32B-1-304, 32B-5-201, -204 and 32B-6-905 have been met, and a completed application has been received by the department and the restaurant premises have been inspected by the department.

 

R81-10C-3. Bonds.

No part of any corporate or cash bond required by Section 32B-5-204 and 32B-6-904(4) may be withdrawn during the time the license is in effect. If the beer-only restaurant 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.

 

R81-10C-4. Insurance.

Public liability and dram shop insurance coverage required in Section 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.

 

R81-10C-5. 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.

 

KEY: alcoholic beverages

Date of Enactment or Last Substantive Amendment: 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-202

 

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