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F I S C A L I M P A C T R E P O R T

SPONSOR

Vigil

ORIGINAL DATE

LAST UPDATED

3/13/07

HB HJM 79

SHORT TITLE

Creating interim Liquor Licensing review

Committee

SB

ANALYST C. Sanchez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates, HM 96

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

House Joint Memorial 79 would create an interim committee to study liquor licensing issues,

receive testimony and make recommendations regarding appropriate actions to address relevant

issues. HJM 79 identifies various issues of concern, including the following:

•

There has been no comprehensive study of liquor laws since 1981.

•

Some municipalities have more licenses than the quota system would otherwise permit,

but have been allowed by the Liquor Control Act.

•

No new full-service licenses can be issued in the foreseeable future, due to the quota

system.

•

Full-service liquor licenses can be transferred as to ownership and to location. As a

result, they have gained or retained value and can sell for thousands of dollars, contrary

to the goal of the Liquor Control Act.

•

Due to the cost of a full-service license on the open market, they are beyond the means of

some hospitality businesses that would otherwise create economic development projects.

•

Restaurant licenses, which permit the sale of beer and wine with meals, do not serve the

House Joint Memorial 79. – Page

2

needs of some restaurants, hotels, destination resorts or other large-scale developments.

•

Each legislative session, bills are introduced to provide for more full-service licenses, but

those bills do not comprehensively address the issue.

SIGNIFICANT ISSUES

Alcohol and Gaming Division staff should be consulted for information regarding the technical

issues surrounding transfers.

Section 60-6A-18 places a limitation on the number of full-service licenses that may be issued in

each local option district to one per each two thousand population. However, Section 60-6B-12

allows full-services licenses that were issued prior to July 1, 1981, to transfer to any location

within the state without regard to the limitations on the maximum number of licenses provided in

60-6A-18 provided that the transfer of location does not lower the number of licenses below the

number allowed by law and if the local governing body approves the transfer and if all

department regulations for the transfer are met.

DUPLICATION,

HM 96

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

An interim committee to study liquor licensing issues would not be created.

CS/mt