Senate panel approves bill providing more Utah restaurant liquor licenses

SALT LAKE CITY — A bill that would allow more Utah restaurants to serve alcohol cleared a Senate committee Wednesday.

SB314 would adjust the state's liquor license quota system to allow for 40 new restaurant permits — 25 limited-service for beer and wine only and 15 full-service. Bill sponsor Sen. John Valentine, R-Orem, said the changes aren't designed to encourage drinking. Rather, it's to ensure liquor is consumed with food, which he said reduces intake.

The Utah Department of Alcoholic Beverage Control issues liquor licenses based on population. With census data showing slower growth than estimated, the state currently exceeds the number allowed by law. The bill would preserve the current number while adding the new permits. It would also correspondingly step up enforcement.

Melva Sine, Utah Restaurant Association president, said she has concerns about the quota system. Utah, she said, has the 11th fastest growing restaurant industry in the nation and 40 licenses will go very quickly.

A Deseret News/KSL-TV poll found 62 percent of Utahns favor increasing the number of liquor licenses, while 35 percent oppose it.

Dan Jones & Associates surveyed 496 Utahns statewide Feb. 8-11. The poll has a plus or minus 4.4 percent error margin.

Also, 61 percent favor converting some of the state's beer-only tavern permits to full-service restaurant permits, according to the poll. Thirty-three percent opposed that idea. While available restaurant licenses have dwindled in recent years, tavern licenses are plentiful.

The Senate Business and Labor Committee spent little time talking about the nuts and bolts of SB314 before unanimously advancing it to the Senate floor.

A conflict of interest provision drew most of the discussion. Though aimed at the five-member DABC commission, it also encompasses rank-and-file workers.

As written, SB314 would prevent full- and part-time DABC employees and their spouses from working for any liquor license holder. For example, a warehouse worker would not be allowed to also work as a server in a restaurant.

"I think it's awfully broad," said Earl Dorius, DABC compliance and licensing director.

Sen. Stephen Urquhart, R-St. George, agreed. "Let's focus the conflicts to the decision makers not the ones that work in the warehouse," he said.

Valentine said he would amend the bill when it reaches the floor.