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LIQUOR; RESTAURANTS;

OLR Research Report


June 26, 2009

 

2009-R-0244

CLUBS, CAFES, RESTAURANTS, AND TAVERNS

By: Daniel Duffy, Principal Analyst

You asked for the type of liquor permit a social club can hold and how that permit differs from other permits allowing the sale of alcoholic beverages for on-premises consumption.

SUMMARY

The law requires any business or organization that intends to sell alcoholic beverages to obtain a liquor permit from the Department of Consumer Protection (DCP). There are many different types of liquor permits. The type of permit one obtains depends on several factors, including the type of business or organization seeking the permit, whether the business or organization intends to sell for on- or off-premises consumption, and the type of alcoholic beverage the business or organization intends to sell.

There are two types of club permits; one is just for non-profit clubs. To qualify for a club permit, an applicant must show that the club has been in existence for three years at the time of application or, if it is part of a national or international fraternal organization, that it has been in Connecticut for at least one year. In addition, the law requires clubs to operate under a governing body selected by the members at an annual meeting. Holders of a club permit may sell all types of alcoholic beverages to members and their guests. Guests must enter their names in a guestbook accompanied by the signature of the sponsoring member. Non-profit clubs may make their facilities available for events, but the law caps the income they derive from doing so at 15% of their annual gross receipts.

There are three comparable permits for businesses. A café permit is for a business that intends to serve alcoholic beverages and to keep food available but does not intend to regularly serve hot meals. A restaurant permit is for a business that intends to serve alcoholic beverages and hot meals regularly. A tavern is for a business that intends to serve beer, wine, and hard cider, but does not intend to serve liquor. A tavern may, but is not required to, serve food.

The law sets the same days and hours of permissible sales for all of these types of permits.

CLUBS

A club permit allows its holder to sell all types of alcoholic beverages for consumption on the premises by members and their guests (CGS § 30-23(a). By law, a “club” is an association:

1. that has been in existence as a bona fide organization for at least three years before applying for a permit or has been a bona fide national or international fraternal or social organization or an affiliation of one that has been in Connecticut for at least one year;

2. organized to promote a common objective but excluding business associations organized for a commercial purpose; and

3. that owns or leases a building or space in a building of such extent and character that, in the judgment of DCP, may be suitable and adequate for the reasonable and comfortable use of its members and guests (CGS § 30-23(b)).

The three-year requirement does not apply if a bona fide club also offers additional facilities such as golf, tennis, bathing or beach facilities, hunting or riding.

There are several requirements specific to clubs. The law requires clubs to file, on request and by February 11 each year, a list of their members' names and addresses. They must file the names and addresses of new members within 10 days of their election. The aggregate amount of a club's membership fees, dues, and other income, except income derived from selling alcoholic beverages, must be enough to pay for the club's lease or, if the club owns the property, to pay for its taxes, insurance, upkeep, and interest on any mortgage. The club's affairs must be conducted by a board of directors, executive committee, or other governing body chosen by the members at the annual meeting. The law prohibits club members, officers, agents, or employees from being paid, directly or indirectly, from the profits from selling liquor to the club or its members and guests above the amount voted on and set at annual meetings by the members or governing body and reported to DCP within three months of the meeting and, as judged by DCP, is reasonable and proper compensation for the services of the member, officer, agent, or employee.

The annual permit fee is $ 240. There are 408 permitted clubs as of June 22 (DCP licensee roster website).

NON-PROFIT CLUBS

A non-profit club permit allows its holder to sell all types of alcoholic beverages for consumption on the premises by members and their guests (CGS § 30-23(c). The law prohibits a club's total receipts in any year, including receipts from selling alcoholic beverages, derived from making its facilities available for events from being more than 15% of the club's gross receipts for the year. A “non-profit club” is a club that is exempt from federal income tax under Section 501(c).

The annual permit fee is $ 650. There are 100 permitted non-profit clubs.

GUEST BOOK REQUIREMENTS

The law requires guests in both types of clubs to enter their names in a guest book kept by the club (CGS § 30-23a). A guest's name must be entered with a member's signature and the date of introduction. Neither the permittee nor the alcoholic beverage server may, during their working hours, enter a person's name in the guest book. The law allows DCP to waive the guestbook requirement, on request, for special occasions.

CAFÉ PERMIT

A café permit allows its holder to sell all types of alcoholic beverages for consumption on the premises (CGS § 30-22a). The law requires cafes to keep food regularly available for on-premises consumption. The requirement may be met by making sandwiches, soups, or other fresh or processed food available. With prior approval from DCP, a café may serve in outside areas. The law allows café patrons to take one partially-consumed bottle of wine from the café if the patron has purchased a full-

course meal, which the law defines as a diversified selection of food typically consumed using a knife and fork. A café employee must securely seal the bottle and place it in a bag before the patron can take it.

By law, a “café” is space in a suitable and permanent building held out to the public as a place where alcoholic beverages and food are served for on-premises consumption, has an adequate number of employees, but does not necessarily serve hot meals or have a kitchen.

The annual permit fee for a café is $ 1,750. There are 827 permitted cafés.

RESTAURANT PERMIT

A restaurant permit allows its holder to sell all types of alcoholic beverages for consumption on the premises (CGS § 30-22). With prior approval from DCP, a restaurant may serve in outside areas. Under the same conditions established for cafés, the law allows restaurant patrons to take one partially-consumed bottle of wine from the restaurant.

By law, a “restaurant” is a space, in a suitable and permanent building, kept and held out to the public as a place that regularly serves hot meals, has an adequate and sanitary kitchen and dining room, employs an adequate number of employees, and does not have sleeping accommodations for the public.

The annual permit fee for a restaurant is $ 1,200. There are 1,730 permitted restaurants selling all types of alcoholic beverages.

The law also creates permits for restaurants to sell only beer and cider ($ 240 annual fee, 30 permitted restaurants) and wine, beer and cider ($ 560 annual fee, 718 permitted restaurants).

TAVERNS

A tavern permit allows its holder to sell beer, wine, and cider up to 6% alcohol for consumption on the premises with or without the sale of food (CGS § 30-26).

The annual permit fee for a tavern is $ 240. There are 32 permitted taverns.

DAYS AND HOURS OF SALE

The law limits when these establishments may sell for on-premises consumption. They may sell on Monday through Thursday from 9: 00 a. m. to 1: 00 a. m. the following morning, on Friday and Saturday from 9: 00 a. m. to 2: 00 a. m. the following morning, and on Sunday from 11: 00 a. m. to 1: 00 a. m. the following morning (CGS § 30-91(a)). The law provides that is does not compel a permittee to continue selling until the closing hour. Further, they may not sell on Christmas unless they are also selling food. They can sell until 3: 00 a. m. on the morning following New Year's Eve, but cannot sell until 11: 00 a. m. on New Year's Day if it falls on a Sunday (CGS § 30-91(h)).

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