Legislature not likely to tinker with liquor laws next session

Utah lawmakers won't likely be increasing the number of licenses that allow alcohol to be served at restaurants and clubs, despite warnings from state liquor officials that the number of permits is quickly running out.

That's one of a number of reforms on the wish lists of tourism and hospitality officials that likely will go begging in the upcoming legislative session because elected officials are signaling they are done with altering liquor laws, at least for now.

There are a couple of reasons for the hiatus, which will probably last until the 2011 session. First, Gov. Gary Herbert is facing election next year.

Second, in the wake of a massive reform earlier this year that included abolishing private clubs, "there's a fear that if there are more changes so soon, we would be retreating from our alcohol policy," said Rep. Greg Hughes, R-Draper, who sponsored the big changes in the last session. "Ultimately there will be some changes in the next couple of years, but I don't think you'll see bills of any significance this next session."

That means new alcohol licenses will continue to be in short supply and that another provision of the 2009 reforms that requires new restaurants to build separate alcohol preparation areas will remain in place. Economic development officials fear those two restrictions, and another that bans the sale of alcohol within 200 feet of a church, will stunt economic growth.

Hughes disputes a report by the

Utah Department of Alcoholic Beverage Control that licenses for new restaurants and clubs "will shortly outstrip supply" under the quota system in which the number of permits is based on population. Even though only a few licenses remained the last time they were handed out in October, Hughes contends that more licenses will become available as the population grows or as restaurants and clubs give up existing permits.

Many in the hospitality industry had hoped that a new resort license would free up more permits from the state's dwindling pool but its requirements have proven too restrictive.

Large hotels and resorts in Utah are taking up 77 additional liquor licenses that would be freed up if the facilities qualified for a single resort permit. This includes 47 additional restaurant permits and 30 bar licenses, more than what's available in the existing pool. The state has 19 restaurant permits and three bar licenses remaining.

"It's time for a change in the law that would allow one license for a large hotel or a resort," said Sam Granato, chairman of the liquor control board and Democratic candidate for the U.S. Senate. "It would free up more licenses, which could run out by the time the Legislature meets early next year."

Granato reasons that action would be less complicated and politically sensitive than tackling the license-quota system.

"Considering a single license for hotels or resorts would give legislators the wiggle room they're looking for to help our economy," he said. "Otherwise, the quota system is going to continue to fester."

Since the resort license became available in May, only the St. Regis Deer Crest Resort in Park City has been granted a permit. Among other qualifications, resorts must have a large hotel and units owned by individuals other than the resort owner to become eligible for the single permit.

The resort holding the most liquor licenses is Snowbird, with five restaurant and five bar permits. But Snowbird doesn't qualify for a single resort license because, among other things, alcohol is served in more than one building.

"We look like a resort, we think we're a resort and by most definitions you and I could agree on, we are a resort, but under the law we don't qualify," said Bret Johnson, food and beverage director at Snowbird.

Other resorts with more than a single permit include Alta with two restaurant and two bar permits, followed by The Canyons, with three restaurant and one bar; and Solitude, with one restaurant and two bars.

When the Amangiri Resort opened in southern Utah last month, owners snapped up three liquor licenses to serve alcohol to guests. The facility also doesn't qualify for a single license because only ski resorts are eligible.

Melva Sine, president of the Utah Restaurant Association, said public demand -- not the state's "artificial" alcohol quotas -- should dictate the number of liquor licenses. The primary business for restaurants is food, not alcohol, she added. Only 4 percent of all alcohol in the state is sold in restaurants.

dawn@sltrib.com