Utah out of all types of liquor licenses
Key legislators say no relief in sight, despite pleas from regulators, businesses.
Utahns split on easing caps on liquor licensesUtah has run out of restaurant and bar liquor licenses after years of rationing, and an influential state senator says that lawmakers are unlikely to free up more permits despite the unprecedented situation.
On Tuesday, liquor-control commissioners gave out the last of the liquor licenses, which are based on the state's population. Entrepreneurs who want a permit to serve wine, spirits or heavy beer must wait for population estimates to increase or existing establishments to go out of business.
"We don't want to turn away people who have gotten local consent and have filled every legal requirement to get a license," said Sam Granato, chairman of the Alcoholic Beverage Control Commission and a Democratic candidate for the U.S. Senate. "My only advice to those of you who cannot get a license is to contact your state senator or representative. This is something only the Legislature can change."
Asked about those prospects, state Sen. John Valentine, R-Orem, said it's not the right time for the Legislature to make changes to the state's license quota system. Valentine, who last year sponsored landmark legislation that did away with the state's one-of-a-kind private-club requirement, reiterated earlier statements that it's too soon for lawmakers to tackle more comprehensive changes this year.
House Speaker David Clark, R-Santa Clara, said if limiting numbers of liquor licenses significantly depresses economic growth, "we'll have another look" -- next year.
Rep. Gage Froerer, R-Huntsville, is sponsoring a bill that would lift caps for restaurant liquor licenses but he has acknowledged the measure lacks support, including that of the LDS Church, a key player in shaping policies for the state's liquor monopoly.
Liquor-control commissioners have long warned that licenses would run out unless the Legislature eased population caps. For years, the commission has been rationing the limited number of liquor licenses by giving permits to some establishments, while turning away others. Businesses, in turn, have paid extra to make multiple applications, so when one category of permits ran out, another might still be available.
Now, licenses in all three categories have run out -- permits for bars to serve drinks with or without a meal, full-service licenses for restaurants to serve all types of alcohol with meals, and limited-service permits allowing eateries to serve only beer or wine with an order of food.
"We've come close to running out of licenses, but this is the first time that we've had no more to give," said Dennis Kellen, director of the Utah Department of Alcoholic Beverage Control with more than 30 years of service with the state's liquor monopoly.
The state has an unlimited supply of licenses to sell 3.2 percent beer. But some business owners say diners will go elsewhere if they can't get a cocktail or a glass of wine, and under those permits, 3.2 percent wine coolers are not allowed.
"Many of our clients are women, and they don't drink beer," said Nathan Porter, owner of the Huka Bar & Grill in Murray.
Porter lost out on a liquor license Tuesday for another bar he plans to open at 404 S. West Temple in Salt Lake City. He was among nine applicants vying for three remaining bar licenses.
Winning out in what has become a state license lottery were Jeff and Tracy Socwell, owners of the Top Shelf Sports bar in Ogden. The brothers improved their chances by noting that an additional license became available after a competitor in their area went out of business. They stressed that the license should remain in Ogden.
The other two bars getting licenses were Jam in the Marmalade and The State Room, both in Salt Lake City.
Next month, two restaurant licenses may become available, based on an estimated population increase. The estimates come from the Governor's Office of Planning and Budget. No club permits will be available in February unless a bar goes out of business within the next 30 days.