Topping it off: new liquor laws aim to woo businesses & tourists.

• Author: Stewart, Heather
• Position: On The Cover

In 1974, then-Washington state resident Dan Ferrell traveled through Utah on a business trip. After checking into a hotel in downtown Salt Lake City, he headed to a nearby bar for a Bloody Mary--only to be told by the bartender that he would have to go around the corner to the state liquor store, where he could purchase some mini bottles of vodka. Bars were not allowed to stock or sell hard liquor, but would create mixed drinks if patrons brought their own alcohol.

Although laws surrounding alcohol sales have changed quite a bit since that time, Ferrell was left with the distinct impression that Utah was a quirky place, to say the least. And he never came back--for business or for vacation. However, Ferrell is quick to explain that he would be more than happy to visit Utah, despite its liquor laws. "It's like traveling to the Middle East: you just know that there will be some restrictions based on culture that you have to be prepared for."

The comparison certainly stings--and it's these kind of misperceptions about Utah that have been a huge stumbling block for those working to bring new businesses and more tourists to the state.

"Perception is reality in marketing," says Bryan Borreson, general manager of Lumpy's Downtown, a sports bar in Salt Lake City. "The perception has been that it's impossible to get a drink in Utah."

Open for Business

This belief is largely based on Utah's now-overturned private club law, which has required drinking establishments to charge membership fees and collect information about patrons. Getting into a club is often as simple as paying a $4 cover charge and presenting valid identification--but the term "private club" has confused many a newcomer to the state.

In a pragmatic push to do away with the confusion, Governor Jon Huntsman announced months before the 2009 Legislative Session that overturning the private club law was among his top priorities.

And in a landmark collaborative effort, a major reform of Utah's liquor law passed the legislature on the final day of the 2009 session. The new law overturned private club provisions and effectively opened bars to the general public.

"This was high on Governor Huntsman's list," says Jason Perry, executive director of the Governor's Office of Economic Development (GOED). "He wanted to normalize some of our antiquated liquor laws--some of the old laws that had been on the books for a long time and were really out of step with the rest of the United States."

Confusion over Utah's liquor laws has had a real impact on GOED's ability to bring new companies to the state, according to Perry. "That is a common discussion with businesses we are trying to relocate. As we do our pitch, that is a subject we always have to go into, because they ask us about it and their employees ask us about it," he says.

Myths and...