32B-6-703 (Effective 07/01/11) - Commission's power to issue on-premise beer retailer license.
32B-6-703 (Effective 07/01/11). Commission's power to issue on-premise beerretailer license.
(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption ofbeer on the premises as an on-premise beer retailer, the person shall first obtain an on-premisebeer retailer license from the commission in accordance with this part.
(2) (a) The commission may issue an on-premise beer retailer license to establishon-premise beer retailer licensed premises at places and in numbers as the commission considersproper for the storage, sale, offer for sale, furnishing, and consumption of beer on premisesoperated as an on-premise beer retailer.
(b) At the time that the commission issues an on-premise beer retailer license, thecommission shall designate whether the on-premise beer retailer is a tavern.
(c) The commission may change its designation of whether an on-premise beer retailer isa tavern in accordance with rules made by the commission.
(d) (i) In determining whether an on-premise beer retailer is a tavern, the commissionshall determine whether the on-premise beer retailer will engage primarily in the retail sale ofbeer for consumption on the establishment's premises.
(ii) In making a determination under this Subsection (2)(d), the commission shallconsider:
(A) whether the on-premise beer retailer will operate as one of the following:
(I) a beer bar;
(II) a parlor;
(III) a lounge;
(IV) a cabaret; or
(V) a nightclub;
(B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
(I) whether the on-premise beer retailer will sell food in the establishment; and
(II) if the on-premise beer retailer sells food, whether the revenue from the sale of beerwill exceed the revenue of the sale of food;
(C) whether full meals including appetizers, main courses, and desserts will be served;
(D) the square footage and seating capacity of the premises;
(E) what portion of the square footage and seating capacity will be used for a dining areain comparison to the portion that will be used as a lounge or bar area;
(F) whether the person will maintain adequate on-premise culinary facilities to preparefull meals, except a person that is located on the premises of a hotel or resort facility may use theculinary facilities of the hotel or resort facility;
(G) whether the entertainment provided on the premises of the beer retailer will besuitable for minors; and
(H) the beer retailer management's ability to manage and operate an on-premise beerretailer license including:
(I) management experience;
(II) past beer retailer management experience; and
(III) the type of management scheme that will be used by the beer retailer.
(3) (a) The commission may not issue a total number of on-premise beer retailer licensesthat are taverns that at any time exceeds the number determined by dividing the population of thestate by 30,500.
(b) The commission may issue a seasonal on-premise beer retailer license for a tavern inaccordance with Section 32B-5-206.
(4) (a) Unless otherwise provided in Subsection (4)(b):
(i) only one on-premise beer retailer license is required for each building or resort facilityowned or leased by the same person; and
(ii) a separate license is not required for each retail beer dispensing location in the samebuilding or on the same resort premises owned or operated by the same person.
(b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in thebuilding or resort facility operates in the same manner.
(ii) If each retail beer dispensing location does not operate in the same manner:
(A) one on-premise beer retailer license designated as a tavern is required for thelocations in the same building or on the same resort premises that operate as a tavern; and
(B) one on-premise beer retailer license is required for the locations in the same buildingor on the same resort premises that do not operate as a tavern.
Enacted by Chapter 276, 2010 General Session