Alcohol laws of Utah

Location of Utah

The alcohol laws of Utah regulate the selling and purchasing of alcohol in the United States state of Utah and are some of the most restrictive in the United States.^[1] A person must be 21 years old to buy or consume alcohol.^[2] The Utah Department of Alcoholic Beverage Control (UDABC) has regulated the sale of alcoholic beverages since 1935, two years after the end of Prohibition.^[3] Utah is one of 18 control states, meaning the state has a monopoly over the wholesaling and/or retailing of some or all categories of alcoholic beverages.^[4]

Current Utah law sets a limit of 3.2 percent alcohol by weight (4 percent by volume) in beer sold at grocery and convenience stores and at establishments operating under a "beer only" type license, such as taverns, beer bars and some restaurants.^[5] Beer over 3.2 percent by weight (4 percent by volume) is available in State Liquor Stores and Package Agencies and at clubs and restaurants licensed to sell liquor.^[2][5] In commercial facilities, the time at which alcohol may be served is limited, and alcohol may not be sold any later than 1 am under any circumstance.^[2]

Background

The Church of Jesus Christ of Latter-day Saints (Mormon), to which a majority of Utahns belong,^[6] prohibits the consumption of alcohol for its members^[7] in the Word of Wisdom given in the Doctrine and Covenants.^[8] Because of this traditional LDS teaching and the large population of Latter-day Saints in Utah, the alcohol laws of Utah have generally been strict.^[5] However, several attempts to make Utah a dry state also failed, and due to a need to address violence caused by bootlegging, in 1933 a Utah convention cast the deciding vote to repeal the Eighteenth amendment and ratify the Twenty-first Amendment, and thus repeal national alcohol prohibition. Since 1935, Utah's liquor industry (all except 3.2% beer) has been controlled through state-run liquor store outlets.^[9]

Zion curtains

Zion curtains are partitions unique to Utah restaurants that separate restaurant bartenders preparing alcoholic drinks from the customers who order them.^[10] The partitions are only mandated for restaurants with "Limited-Service Restaurant Licenses" and "Full-Service Restaurant Licenses".^[10][11] These partitions are often made of frosted glass since they are required to be "solid, translucent, [and] permanent".^[10] They were mandated in hopes of combating excessive drinking by keeping alcohol out of sight of restaurant patrons who choose not to consume alcohol.^[12]

2002 Winter Olympic Games

During the 2002 Winter Olympic Games, the Department of Alcoholic Beverage Control (UDABC) relaxed enforcement of Utah's alcohol laws. This led to the passing of less restrictive laws effected in May 2003.^[13] This came after complaints, particularly after an incident in which an International Olympic Committee official complained.^[14]

2009 efforts for reform

Governor Jon Huntsman, Jr. (in office 2005–2009), a member of The Church of Jesus Christ of Latter-day Saints (the predominant religion in the state), was a proponent for less restrictive alcohol laws during his time in office. He believed reform would be favorable to the state's tourism industry.^[15][16] He signed legislation allowing existing restaurants to remove the partitions, although future restaurants would be required to prepare alcoholic drinks outside of their patron’s immediate view.^[17] Effective in June 2009, bars and clubs were no longer required to charge a cover, or a membership fee, making liquor more accessible to tourists and locals.

Even though homebrewing of beer and wine had been popular for many years in Utah, with multiple retail and even wholesale outlets for purchasing supplies, and ingredients, there was no law forbidding it or allowing it on the books. In March 2009, homebrewing for the citizens of the state was made legal.^[18]

Zion Curtain reform

Legislation enacted in 2010 restored the barriers as part of a broader compromise on alcohol reform; in 2013, the Utah legislature considered legislation removing the barriers permanently from all establishments,^[12] although the legislation ultimately did not pass.^[19]

Abolishing the Zion curtains has been an often proposed and contentious issue affecting Utah politics for years. Many restaurants feel it introduces one more hardship in a state with too many alcohol restrictions, while others feel like it is a much-needed instrument to protect children and teens from exposure to alcohol consumption. A new bill, HB 339, is being introduced that would allow restaurant owners to abolish their Zion curtain provided the owners established a separate bar area that would not be accessible to anyone under the age of 21.^[20] Lawmakers insist that a wall or partition obscuring any alcoholic beverages from view helps to shield children and teens from the glamorization of alcohol. Jim Fell, a research scientist with the Pacific Institute for Research and Evaluation, points out that “... no research has been conducted to establish whether there is any actual benefit to this law's implementation. Exposure to alcohol does have an effect on teen drinking, but I worry that the multimedia, including alcohol advertising, would overwhelm any effects that the Utah law might have," said Fell. "It's important to evaluate this — but it would have to be done by an independent, objective researcher, not someone who is an advocate or who opposes the law.”^[21]

Current Utah laws

Utah has many laws which are unique to its borders. While most states allow their grocery stores to sell a variety of alcoholic products, Utah restricts their supermarkets to only sell packaged beer. Liquor and wine can only be sold at state liquor stores. Other Utah liquor laws include time restrictions on when alcohol can be purchased. Most restaurants, clubs, taverns and other establishments selling liquor are only allowed to sell alcoholic beverages from 11:30am-1:00am^[22] UDAB Utah State Senator John L. Valentine is introducing a bill that will allow each chain restaurant that enters Utah to obtain a "master" license for all of their locations, instead of having to apply for a liquor license at each individual location. This is hoped to speed up the process of obtaining liquor licenses when otherwise there are many locations of the same restaurant applying for a single license every month.^[23]

On March 8, 2013, the Utah legislature passed a law allowing restaurant patrons to order alcohol before ordering food after a controversial series of citations was issued to several restaurants.^[24]

Public opinion

A poll through UtahPolicy.com found 62 percent of Utahns are in favor of removing the requirement that new restaurants install Zion curtains to hide the preparation of alcoholic beverages from consumers. 31 percent oppose such a change.^[25]

Economic impact

Utah is still growing at a moderate growth rate and has unemployment below 4%, with fairly large gains in the tech industry. Many new companies have located in Utah due to their friendly business practices. According to the Governor’s Economic report, liquor sales have risen 7.9% in 2014,” as consumption, demographic patterns, and economic factors combined to push sales up”.^[26] “Travel research firm TNS Global, reported total Utah person trips during the first six months of 2014 had increased an estimated 12 percent from 2013, with an 18 percent increase in nonresident visitors. Similarly, during the first three quarters of 2014, total visits to Utah’s five national parks and places had increased 10 percent from the previous year.”

Business and tourism

No cost analysis research has been done by the state of Utah to determine if Utah’s liquor laws have affected Utah’s business, economic growth, or tourism industry. Businesses who have chosen to expand or relocate their businesses in other states appear to be mostly alcohol related.

Grocery stores

Trader Joe’s, which began in California as a convenience store that started selling wine has finally arrived in Utah 2012. The store’s founder, Joe Coulombe has said, "We built Trader Joe's on wine first, then food.” A cornerstone of their store’s sales are beer, wine, and in some cases liquor. Due to Utah’s stringent liquor laws, alcoholic beverages will not be stocked in the Salt Lake City store. Some theorize that Utah’s strict liquor laws, and the inevitable impact on their margin, was responsible for the late entry into the Salt Lake City market. ^[27]

Conventions

Scott Beck, president and CEO of Visit Salt Lake says perception is the problem Utah has in attracting tourism, specifically conventions. His company tracks business that is lost, and Beck says it is a considerable amount of lost revenue. Scott says “We are told there are not enough restaurants and nightlife to keep the visitors occupied outside of the convention, because they can’t get a drink. We call it nightlife, but we’re not talking about nightlife in terms of strip clubs and gaming; we’re talking about nightlife like Gracie’s or nightlife like The Bayou—places where visitors can network or socialize with their friends and peers. But our liquor laws create a sense, and in some cases a reality, that you can’t do that in Utah. And we lose hundreds of millions of dollars a year in delegate spending because of that perception,” Bruce Fery, CEO of The Grand America Hotel and Resorts and also a proponent of alcohol “normalization” in Utah says “From a guest service perspective, Utah’s liquor laws are really awkward and make us look like we are still in covered wagons. Utah’s liquor laws make us appear to be inhospitable.” He also cites many instances where out-of-towners were befuddled, put off, or downright angry at the policies that are in place to keep in accordance of the law.^[28]

Restaurants

Unlike grocery stores, restaurants are able to apply for a license to sell and serve liquor, wine, flavored malt beverages, and heavy beer (over 3.2%). Limited restaurant licenses may not sell flavored malt beverages or distilled spirits. And while the restaurant may be able to obtain a liquor license, they are restricted to how and when they are able to serve alcohol. One such restriction is the “intent to dine” law; customers must have the intent to dine in order to be served an alcoholic beverage. Restaurants are only able to serve liquor from 11AM-midnight or 1AM, depending on the license, and many times the amount per glass is restricted.^[29] This creates problems with customers from out of town. Co-owner of Fratelli Ristorante, Dave Cannell, said, “People from out of state ask for a ‘real’ glass of wine and I can’t give them one … I can only give them 5oz per glass”.

Chain restaurants

The chain Capital Grille refuses to come to Utah due to the laws. Casual restaurants like Chili’s and Applebee’s have had to spend extra money on reconfiguring their restaurant's layout to accommodate the laws and hide the alcohol from view. Ruth's Chris, which has a large contingent of out of town business people who are used to ordering martinis after work, have to be patiently informed of laws requiring that no more than 1.5 oz. of alcohol be poured into any drink, and an order of a food item is also required. Out of state restaurants that rely heavily on brunch revenue would suffer due to the ban on Bloody Marys and mimosas before 12 p.m.. Many chains fear they would face unfair competition and costs, when going head to head with restaurants that are grandfathered in and not required to have the barrier installed. Restaurants that did not have the zion curtains before May 12, 2009, are not required to build them, giving owners with those licenses a “grandfathered” bar structure. Any modification to the existing structure will result in the loss of the grandfathering Hersh Ipaktchian, founder of Iggy's Sports Grill says that factoring in costs to change floor plans would make it difficult and more expensive for him to expand. He is looking for options to expand outside of the state of Utah. The Porcupine Pub and Grille is also choosing to expand outside of the state due to Utah’s stringent and precarious liquor laws. Last summer, the chain California Pizza Kitchen opened a Murray, Utah location. Liquor licenses were in such short supply that they could only get a temporary summer permit. They were in a state of flux all summer, not knowing if any licenses would become available for them after summer. They were finally in the fall, able to obtain a year round liquor license.^[30]

Breweries

Epic brewery chose to expand in Colorado with a 2 to 3 million dollar facility instead of Utah due to Utah’s constantly changing liquor laws. “ "Who knows ... what things they'll dream up next to punish an industry that pays millions of millions of taxes in this state," David Cole said. While he predicts state laws will eventually change, "It's going to change a lot slower than we are as a company." ^[31]

References