1. DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL Stephne Hanson Licensing & Compliance

2. PROFESSIONAL BACKGROUND BA in Business Administration from the University of UtahBA in Business Administration from the University of Utah Employed by State of Utah for 27 yearsEmployed by State of Utah for 27 years Worked at DABC past 14 yearsWorked at DABC past 14 years

3. DABC MISSION STATEMENT

4. Utah is one of 18 states that regulate the sale of alcoholUtah is one of 18 states that regulate the sale of alcohol WITH REGARD TO ALCOHOL, UTAH IS A CONTROL STATE AlabamaMichiganOhioVirginia IdahoMississippiOregonIowa MontanaPennsylvania West Virginia Maine New Hampshire UtahWyoming Maryland * North Carolina Vermont * Only Montgomery and Worcester Counties

5. During the last fiscal year (FY2013), how much net profit was made from the sale of alcohol?During the last fiscal year (FY2013), how much net profit was made from the sale of alcohol? After $ 38,155,214.00 was given to the school lunch program and public safety.After $ 38,155,214.00 was given to the school lunch program and public safety. $ 81,350,425 *$ 81,350,425 * THE BUSINESS OF ALCOHOL * 9% increase over FY2012

6. PUBLIC PERCEPTION OF THE DABC...

7. KEY PLAYERS IN UTAH

8. Law Enforcement KEY PLAYERS IN UTAH

9. Licensees

10. There are currently active licenses in the stateThere are currently active licenses in the state This represents 18 different license typesThis represents 18 different license types Some licenses are limited in number based on the overall state population (quota)Some licenses are limited in number based on the overall state population (quota) Law enforcement funding for staffing is driven by the overall number of liquor licenses issuedLaw enforcement funding for staffing is driven by the overall number of liquor licenses issued CURRENT LICENSES 2,067

11. Clubs 380 * Full Service Restaurants 627 * Limited Service Restaurants (Beer & Wine) 377 * Beer Only Restaurants 140 On-Premise Beer 150 Taverns 36 * Banquet Catering 93 * Reception Centers 4 * Airport Lounges 7 CURRENT LICENSES INCLUDE *Indicates quota license

12. Manufacturing Wineries 14 Beer Manufacturing 20 Distilleries 6 Liquor Warehouses 18 State Stores 44 Resorts 2 Beer Wholesalers 13 Package Agencies 114 Industrial 22 CURRENT LICENSES INCLUDE

13. Licensing & Compliance KEY PLAYERS IN UTAH

14. Business Licensing KEY PLAYERS IN UTAH

15. WHERE IT ALL BEGINS The Application...  Due date... the 10 th of each month  Local consent & licensing  Conditional licenses

16. Local consent allows local government to decide the extent to which it will allow alcoholic beverage outlets in its community LOCAL CONSENT

17. Conditional licensing means: Application MUST be complete with the exception of the local business license. The commission may issue a liquor license on the condition that the holder receives their local business license If the local business license is not issued within 9 months the licensee may lose the liquor license CONDITIONAL LICENSES

18. PROXIMITY 5 Community locations...5 Community locations... ChurchesChurches Public or private schoolsPublic or private schools Public parksPublic parks Public playgroundsPublic playgrounds Public librariesPublic libraries Two measurements...Two measurements... 200 ft. straight line200 ft. straight line 600 ft. path of pedestrian travel600 ft. path of pedestrian travel

19. COMMUNITY LOCATIONS Churches

20. The Alcoholic Beverage Control Act defines a church as: “Church” means a building Set apart for worship In which religious services are held With which clergy is associated; and That is tax exempt under the laws of this state BY STATUTE A CHURCH IS:

21. COMMUNITY LOCATIONS Public or private schools

22. The Alcoholic Beverage Control Act defines a school as: “School” means a building used primarily for the general education of minors School does not include an educational facility Educational facilities include; Nursery schools Infant day care centers, and Trade and technical schools BY STATUTE A SCHOOL IS:

23. COMMUNITY LOCATIONS Public parks

24. COMMUNITY LOCATIONS Public playground

25. COMMUNITY LOCATIONS Public library

26. MEASURING PROXIMITY Two measurements are taken;Two measurements are taken; 200 ft. straight line measurement200 ft. straight line measurement 600 ft. ordinary path of pedestrian travel measurement600 ft. ordinary path of pedestrian travel measurement Measured from the primary point of entry of the location seeking licensureMeasured from the primary point of entry of the location seeking licensure Measured to the nearest property line of the community locationMeasured to the nearest property line of the community location

27. Applicant location Community location Public park Public park 200 ft. straight line 600 ft. pedestrian path of travel HOW IT WORKS

28. If the applicant location is under 200 ft. from one of these locations they CANNOT be licensed. ChurchesSchoolsPlaygrounds If the applicant location is under 200 ft. from one of these locations they may be granted a variance by the commission. Public Parks Public libraries WHAT IF THEY ARE UNDER 200 FEET?

29. There are four general criteria and three special criteria that the commission must consider when variances are allowed. The commission may grant a variance if: 1.Written consent is obtained from the local governmental authority. 2.A public hearing has been held. 3.The commission determines that granting the variance will not be detrimental to the public health, peace, safety, and welfare of the community; and 4.The governing authority of the community location gives its written consent to the variance. WHEN ARE VARIANCES GRANTED?

30. The special criteria apply if the community location does not give its written consent. If that is the case, the commission must find that: 1.There is substantial unmet public demand to consume alcohol in a public setting within the geographic boundary of the local (governmental) authority in which the business seeking the alcohol license is to be located 2.There is no reasonably viable alternative for satisfying the unmet public demand other than through the establishment of the license at the location; and 3.There is no reasonably viable alternative location within the geographic boundary of the local (governmental) authority in which the licensed business is to be located to satisfy the unmet demand. WHEN ARE VARIANCES GRANTED?

31. If the applicant location is over 200 ft. and less than 600 ft. from the community location they may be granted a variance by the commission under the same conditions previously discussed. ChurchesSchools Public playgrounds Public Parks Public libraries OVER 200 FT. BUT LESS THAN 600 FT? OVER 200 FT. BUT LESS THAN 600 FT?

32. SINGLE EVENT AND SINGLE EVENT AND TEMPORARY BEER PERMITS What is the difference between Single Events and Temporary Beer?

33. Think of a Single Event Permit as an “umbrella” permit.Think of a Single Event Permit as an “umbrella” permit. Single Event Permit holders are Single Event Permit holders are able to serve: able to serve: 3.2 beer3.2 beer Heavy beerHeavy beer WineWine DistilledDistilled Flavored Malt BeveragesFlavored Malt Beverages SINGLE EVENT PERMITS

34. IS IT A COMMUNITY EVENT? IS IT A COMMUNITY EVENT?  A Single Event Permit is issued to those who are conducting a convention, civic, or community enterprise.  A “civic or community enterprise” generally is a gathering that brings members of a community together for the common good.

35. Temporary Beer Permit holders are able to serve:Temporary Beer Permit holders are able to serve: Only 3.2 beer Only 3.2 beer Can be served using:Can be served using: BottlesBottles CansCans KegsKegs TEMPORARY BEER PERMITS

36. PERMIT APPLICATIONS These fields MUST match

37. WHEN IS AN EVENT PERMIT NOT NEEDED? Privately hosted event; If the event is truly private and not open to the general public and the alcohol is furnished by the host without charge to those attending. The event is limited in attendance to people who have been specifically invited. An example would be a wedding; Attendee’s have been specifically invited with an invitation or are on a guest list. The host provides alcohol to the wedding guests at no charge.

38. WHEN IS AN EVENT PERMIT NEEDED? When the event is open to the general public regardless of whether an admission fee is charged or not Alcoholic beverages are furnished with or without charge Advertising is made to the general public for the event

39. QUESTIONS Stephne Hanson shanson@utah.gov DABC 801-977-6800 abc.utah.gov If you are not sure, please just call us...

40. DABC COMPLEX

41. DABC WAREHOUSE

45. LABELS

46. UTAH’S HISTORY IN ALCOHOL

52. LIQUOR APPLICATION

53. UTAH’S HISTORY IN ALCOHOL 1986 to Present; Miscellaneous legislative amendments and changes.

54. CURRENT LICENSE TYPES

55. 19

56. TIED HOUSE 32B-4-704 UCA The term “tied house law” refers to the broad statutory scheme regulating both the marketing of alcoholic beverages and the cross-ownership of licensed operations.

57. POLICY RATIONALE FOR THIS LAW To promote the state’s interest in an orderly market. To prohibit vertical integration and dominance by a single producer in the marketplace. To prohibit commercial bribery and predatory marketing practices. To discourage and/or prevent the intemperate use of alcoholic beverages.