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Utah legislature expected to add more bar, restaurant licenses

Posted at 3:27 PM, Jan 12, 2024
and last updated 2024-01-12 19:53:47-05

SALT LAKE CITY — An omnibus liquor bill set to run in the upcoming Utah State Legislature would increase the number of bar and restaurant licenses, its sponsor told FOX 13 News.

"Just by sheer nature of the fact that we’re growing we have to increase a little bit," Rep. Jefferson Burton, R-Salem, said. "We’re going to be reasonable in that. Utah is an outlier. We always have been. Our desire is to be judicious and smart in the way we do this."

Rep. Burton is tasked by the Republican supermajority in the House with running the carefully-negotiated liquor bills, which involve input from alcohol industry representatives, hospitality groups, social conservatives, alcohol abuse prevention groups and others. The lack of bar licenses in Utah has created a major headache for the Department of Alcoholic Beverage Services Commission, which has taken to triaging how it can hand out licenses. Bars must be ready to open, complete with staff, but there is no guarantee a license is even available when they're ready.

DABS commissioners have taken to urging the public to contact lawmakers. Governor Spencer Cox has even said he favors adding more bar licenses.

In response to complaints from commissioners, hospitality industry leaders and even the public, lawmakers sought a study to find out if Utah is too strict when it comes to bar licenses compared to other liquor control states.

Right now, Utah hands out bar licenses based on an arbitrary population quota of one per 10,200 people. Rep. Burton told FOX 13 News the study found that other states are closer to one per 5,000 people. But don't expect the legislature to change its quota to reflect that.

"We would not go down to one per 5,000. We think that’s too drastic," Rep. Burton said. "We would probably look in the neighborhood of maybe one per 7,000 or 8,000. That’s what we’re looking at. Those numbers are still being worked. But at the end of the day, we think just by sheer virtue of the fact we’re growing we need to increase those numbers just a little bit."

Full-service restaurant licenses, which allow for beer, wine and spirits, would likely also see more allocations. But all of the licensing would be gradually ramped up over a five year period. The distinction between restaurant and bar licenses is that under a restaurant license, minors can be on the premises and no more than 30% of total sales can be alcohol.

Michele Corigliano, the executive director of the Salt Lake Area Restaurant Association, said she was glad to see lawmakers consider increasing the number of restaurant and bar licenses.

"For years our entrepreneurs have had unnatural constraints in growing their businesses. With the restaurant and bar industry being the second largest income generator for Utah, this is a welcome change and will benefit all Utahns. We look forward to cooperating with legislators this session to advance this industry," she told FOX 13 News.

Rep. Burton said lawmakers would likely consider a "social impact" in creating more licenses to balance the needs of public safety and alcohol abuse prevention. He said a provision of the bill may also look at something from other states: a "point of last drink" question asked by law enforcement in DUI arrests, to provide better data on where people who may overconsume are getting their alcohol from.