Lawmakers question Utah's liquor license quota system

SALT LAKE CITY — During a discussion about adjusting Utah's liquor license quota system to permit more restaurants to serve alcohol, some House members took the notion one step further: Do away with quotas all together.

That idea likely won't get very far in the state's mostly teetotaling Legislature, especially in the staid Senate.

"I agree with doing away with the formula, but the other house is not going to," Rep. Jim Dunnigan, R-Taylorsville, told his colleagues Wednesday on the House Business and Labor Committee.

Rep. Gage Froerer, R-Huntsville, was amenable to tinkering with his bill to open up the licensing process, but in the end decided he'd be better off forging ahead with current proposal. The committee unanimously moved HB42 to the full House for consideration.

"It's important we get this in place and fight the bigger battle some other time," he said.

Froerer's bill would increase the number of full-service and limited-service restaurant liquor licenses issued by the Utah Department of Alcoholic Beverage Control, while decreasing the number of tavern licenses. The licenses are issued using a formula based on the state's population.

"This is not an alcohol bill," he said, echoing statements he made while unsuccessfully proposing the same legislation last year.

Froerer said he is running the bill to encourage business growth and economic development.

"It's a huge economic deal," said John Chevalier, owner of the Lighthouse Lounge in Ogden. Entrepreneurs, he said, are willing to spend big money to build nice restaurants and sports bars right now, himself included. "They drive economic growth like you can't believe."

Full- and limited-service restaurant licenses are in high demand and currently only two are available. Taverns, meanwhile, are on the decline, leaving 45 licenses to be had, said Earl Dorius, DABC director of licensing and compliance.

Some restaurants are going out of business waiting for alcohol permits, he said.

Froerer's proposal would create an estimated 21 full-service licenses and 20 limited-service licenses, while dropping available tavern licenses to 10.

"Why not take a few more tavern licenses away?" Dunnigan said. "Do we want to promote tavern licenses or do we want people to get food in their stomach before they drink?"

Rep. Brad Last, R-Hurricane, wondered if it's time to change the state's alcohol policy because the quota system seems to be limiting the restaurant business.

Dorius suggested lawmakers consider a pilot program to see how that works, but added "some might be uncomfortable with having no quota on the type of license."

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