Utah liquor licenses running dry

Utah regulators continue to run short on some liquor licenses, particularly for permits that allow restaurants to serve beer, wine and spirits.

But a scarcity of licenses to operate as a club, in which owners can serve liquor without serving food, eased on Wednesday, when licenses from 10 establishments that went out of business or chose not to renew permits this month left 18 club licenses available for the coming fiscal year.

The licenses, which are issued based on population estimates, are critical to many businesses that want to operate in Utah. Commissioner Mary Ann Mantes spoke for many at Wednesday's crowded meeting of the Alcoholic Beverage Control Commission, when she said it's time to drop the quotas.

"It's scary how low we're getting on restaurant licenses," said Mantes. "I remember when we've had no licenses to give."

To illustrate that point, liquor-control commissioners gave out four restaurants liquor permits Wednesday -- leaving only eight licenses left until July 2010.

Restaurants take up the lion's share of liquor permits, totaling 822. The number includes both full-service licenses allowing all types of alcohol, as well as limited-service permits allowing only beer or wine.

Each month, two or three new restaurants apply for a license, making it likely that some owners could go away empty-handed. With only eight full-service licenses available, some eateries may also apply for a limited-service permit because 15 are available.

"There have been several times in the past 20 years that we have run out liquor licenses," said Sharon Mackay, spokeswoman for the Utah Department of Alcoholic Beverage Control. "One of the considerations in granting a license is how long someone has had to wait to get one."

Commissioners are expected to report on the small number of liquor licenses to a legislative subcommittee in the fall. The Utah Legislature sets population quotas for licenses. Full-service restaurants are set at one license for every 5,200 people, while limited-service permits are one for every 9,300 people.

On Wednesday, commissioners also gave club licenses to 10 applicants, pushing the total number to 354.

On July 1, clubs no longer will be required to charge patrons a membership fee. The new law, however, requires bars to scan the driver license of any patron who appears to be under 35 years old. And, the information is to be stored on site for seven days.

In addition, the new law also designates two types of clubs. Dining clubs are to maintain at least half their business from food sales and minors are allowed if accompanied by adults. Social clubs will essentially be open public bars. Anyone under age 21 is prohibited from entering.