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SALT LAKE CITY — A legislative committee took no action Monday after holding a hearing on how the state liquor commission decides whether events like Snowbird's annual Oktoberfest are permitted to serve alcohol.
The Legislature's Administrative Rules Review Committee looked at changes in the criteria used to award single-event permits after the possibility was raised that the nearly 40-year-old German-themed event could be affected.
After being told the Department of Alcoholic Beverage Control's rule dealing with single-event permits was being reviewed, Sen. Howard Stephenson, R-Draper, the committee chairman, advised waiting for the liquor commission to act.
One of the newest members of the liquor commission, John T. Nielsen, told the committee that the question of whether the rule gives preference to charitable organizations over for-profit entities will be reviewed "starting tomorrow."
"Sometimes those rules create more confusion than they do help," Nielsen said.
Based on the law, he said he believes nonprofit status should not be the determining factor in issuing permits.
If it's not in statute, how did it get there? DABC has been essentially writing law, in conflict or not exactly with what the law says.
–Becky Lockhart, R-Provo
DABC Director Sal Petilos, who took over the troubled agency in 2012, said the issue arose because he has been re-examining various areas of regulation "one at a time, the best that I can."
Stephenson said some lawmakers may want to repeal the current rule.
House Speaker Becky Lockhart, R-Provo, said the rule may go too far, given what the law allows.
"If it's not in statute, how did it get there?" Lockhart asked. "DABC has been essentially writing law, in conflict or not exactly with what the law says."
Last month, Snowbird officials appeared before the liquor commission and were granted a permit for last weekend's Brewfest, but not before a discussion about the possible tightening of the rule that could impact Oktoberfest.
Sen. Jim Dabakis, D-Salt Lake City, said at the hearing that news reports suggesting there could be no alcohol at Oktoberfest made Utah "a laughingstock" and could impact tourism.
Dabakis cited the recent debate over whether restaurant customers who order alcohol must declare that they intend to eat and said there's "a serious price to be paid by not understanding the broader implications" of the liquor commission's actions.
We need to look at the issue of having the state as the sole purveyor of spirits in the state. When the government seeks to socially engineer, we run into problems like this and there are all kinds of unintended consequences.
–Sen. Mark Madsen, R- Saratoga Springs
Nielsen assured Dabakis that liquor commissioners will "do our best to try to keep the state out of these kinds of issues."
But he said that as long as there are liquor laws "and you've got people who don't like them, I'm afraid we're going to continue to have some of these issues come to the fore."
Sen. Mark Madsen, R-Saratoga Springs, said lawmakers should re- examine the state's control of liquor sales.
"We need to look at the issue of having the state as the sole purveyor of spirits in the state," Madsen said. "When the government seeks to socially engineer, we run into problems like this and there are all kinds of unintended consequences."
Nielsen told reporters after the hearing he believes Snowbird will get the needed permits for Oktoberfest, set to be held over several weekends from August to October.
Petilos said he is not aware of any other regulatory actions that could result in a similar controversy.
"It's difficult to say what's going to be the next thing that bites me," he said. "And I don't mean to make light of it, but the fact of the matter is, the department is always on the knife's edge."
