1     
ALCOHOLIC BEVERAGE CONTROL ENFORCEMENT

2     
AMENDMENTS

3     
2015 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jerry W. Stevenson

6     
House Sponsor: Timothy D. Hawkes

7     

8     LONG TITLE
9     General Description:
10          This bill modifies the Alcoholic Beverage Control Act to address provision of legal
11     counsel by the attorney general's office.
12     Highlighted Provisions:
13          This bill:
14          ▸     provides for the deposit of fines and costs into the Alcoholic Beverage Control Act
15     Enforcement Fund;
16          ▸     outlines the use of money in the fund to support the attorney general's office
17     providing legal counsel related to enforcement;
18          ▸     imposes caps; and
19          ▸     makes technical amendments.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          This bill provides a special effective date.
24     Utah Code Sections Affected:
25     AMENDS:
26          32B-2-305, as last amended by Laws of Utah 2013, Chapter 400
27          32B-3-205, as enacted by Laws of Utah 2010, Chapter 276

28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 32B-2-305 is amended to read:
31          32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
32          (1) As used in this section:
33          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201.
34          (b) "Enforcement ratio" is as defined in Section 32B-1-201.
35          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
36     this section.
37          (2) There is created an expendable special revenue fund known as the "Alcoholic
38     Beverage Control Act Enforcement Fund."
39          (3) (a) The fund consists of:
40          (i) deposits made under Subsection (4); and
41          (ii) interest earned on the fund.
42          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
43          (4) (a) After the deposit made under Section 32B-2-304 for the school lunch program,
44     the department shall deposit 1% of the total gross revenue from the sale of liquor with the state
45     treasurer to be credited to the fund to be used by the Department of Public Safety as provided
46     in Subsection (5).
47          (b) Beginning July 1, 2015, the fines and costs collected pursuant to Section 32B-3-205
48     shall be deposited into the fund.
49          (5) (a) The Department of Public Safety shall expend money from the fund to
50     supplement appropriations by the Legislature so that the Department of Public Safety maintains
51     a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
52     2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
53     in Section 32B-1-201.
54          (b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as
55     a primary focus the enforcement of this title in relationship to restaurants.
56          (6) (a) Subject to Subsection (6)(b), the Utah attorney general's office shall expend
57     money from the fund to supplement appropriations by the Legislature so that the attorney
58     general's office can maintain legal counsel sufficient to represent the department in disciplinary

59     proceedings arising from the enforcement efforts of Department of Public Safety
60     alcohol-related enforcement officers provided for in Subsection (5).
61          (b) The attorney general's office may expend from this fund in a fiscal year the lesser
62     of:
63          (i) 80% of the fines and costs deposited into the fund in that fiscal year; or
64          (ii) $180,000.
65          Section 2. Section 32B-3-205 is amended to read:
66          32B-3-205. Penalties.
67          (1) If the commission is satisfied that a person subject to administrative action violates
68     this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
69     Procedures Act, the commission may:
70          (a) suspend or revoke the person's license, permit, or certificate of approval;
71          (b) subject to Subsection (2), impose a fine against the person, including individual
72     staff of a licensee, permittee, or certificate holder;
73          (c) assess the administrative costs of a disciplinary proceeding to the person if the
74     person is a licensee, permittee, or certificate holder; or
75          (d) take a combination of actions described in this Subsection (1).
76          (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
77          (i) a single notice of agency action; or
78          (ii) a single action against a package agency.
79          (b) The commission shall by rule establish a schedule setting forth a range of fines for
80     each violation.
81          (3) The commission shall transfer the fines and costs assessed under this section into
82     the [General Fund in accordance with Section 32B-2-301] Alcoholic Beverage Control Act
83     Enforcement Fund created in Section 32B-2-305.
84          (4) (a) If a license or permit is suspended under this section, the licensee or permittee
85     shall prominently display a sign provided by the department:
86          (i) during the suspension; and
87          (ii) at the entrance of the premises of the licensee or permittee.
88          (b) The sign required by this Subsection (4) shall:
89          (i) read "The Utah Alcoholic Beverage Control Commission has suspended the

90     alcoholic product license or permit of this establishment. An alcoholic product may not be
91     sold, offered for sale, furnished, or consumed on these premises during the period of
92     suspension."; and
93          (ii) include the dates of the suspension period.
94          (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
95     be displayed under this Subsection (4) during the suspension period.
96          (5) (a) If a license or permit is revoked, the commission may order the revocation of a
97     bond posted by the licensee or permittee under this title.
98          (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
99     bond posted by a licensee or permittee for money owed the department under this title without
100     the commission first revoking the license or permit.
101          (6) A licensee or permittee whose license or permit is revoked may not reapply for a
102     license or permit under this title for three years from the date on which the license or permit is
103     revoked.
104          (7) If a staff member of a licensee, permittee, or certificate holder is found to have
105     violated this title, in addition to imposing another penalty authorized by this title, the
106     commission may prohibit the staff member from handling, selling, furnishing, distributing,
107     manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
108     staff with a licensee, permittee, or certificate holder under this title for a period determined by
109     the commission.
110          (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
111     to other penalties prescribed by this title, the commission may order:
112          (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
113     from the department's sales list; and
114          (ii) a suspension of the department's purchase of an alcoholic product described in
115     Subsection (8)(a)(i) for a period determined by the commission.
116          (b) The commission may take the action described in Subsection (8)(a) if:
117          (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
118     this title; and
119          (ii) the manufacturer, supplier, or importer:
120          (A) directly commits the violation; or

121          (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
122     the violation.
123          (9) If the commission makes a finding that the brewer holding a certificate of approval
124     violates this title or rules of the commission, the commission may take an action against the
125     brewer holding a certificate of approval that the commission could take against a licensee
126     including:
127          (a) suspension or revocation of the certificate of approval; and
128          (b) imposition of a fine.
129          (10) Notwithstanding the other provisions of this title, the commission may not order a
130     disciplinary action or fine in accordance with this section if the disciplinary action or fine is
131     ordered on the basis of a violation:
132          (a) of a provision in this title related to intoxication or becoming intoxicated; and
133          (b) if the violation is first investigated by a law enforcement officer, as defined in
134     Section 53-13-103, who has not received training regarding the requirements of this title
135     related to responsible alcoholic product sale or service.
136          Section 3. Effective date.
137          This bill takes effect on July 1, 2015.






Legislative Review Note
     as of 1-16-15 3:39 PM


Office of Legislative Research and General Counsel