32A-1-107.   Powers and duties of the commission.
     (1) The commission shall:
     (a) act as a general policymaking body on the subject of alcoholic product control;
     (b) adopt and issue policies, directives, rules, and procedures;
     (c) set policy by written rules that establish criteria and procedures for:
     (i) granting, denying, suspending, or revoking a permit, license, certificate of approval, or package agency;
     (ii) controlling liquor merchandise inventory including:
     (A) listing and delisting a product;
     (B) the procedures for testing a new product;
     (C) purchasing policy;
     (D) turnover requirements for a regularly coded product to be continued; and
     (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
     (iii) determining the location of a state store, package agency, or outlet;
     (d) decide within the limits and under the conditions imposed by this title, the number and location of state stores, package agencies, and outlets established in the state;
     (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses, certificates of approval, and package agencies for the purchase, sale, storage, service, manufacture, distribution, and consumption of an alcoholic product:
     (i) a package agency;
     (ii) a restaurant license;
     (iii) an airport lounge license;
     (iv) a limited restaurant license;
     (v) an on-premise banquet license;
     (vi) a resort license, under which four or more sublicenses may be included;
     (vii) a club license;
     (viii) an on-premise beer retailer license;
     (ix) a temporary special event beer permit;
     (x) a special use permit;
     (xi) a single event permit;
     (xii) a manufacturing license;
     (xiii) a liquor warehousing license;
     (xiv) a beer wholesaling license; and
     (xv) an out-of-state brewer certificate of approval;
     (f) in accordance with Subsection (5), issue, grant, deny, suspend, or revoke one of the following conditional licenses for the purchase, sale, storage, service, manufacture, distribution, and consumption of an alcoholic product:
     (i) a conditional restaurant license; or
     (ii) a conditional limited restaurant license;
     (g) fix prices at which liquor is sold that are the same at all state stores, package agencies, and outlets;
     (h) issue and distribute price lists showing the price to be paid by a purchaser for each class, variety, or brand of liquor kept for sale by the department;
     (i) (i) require the director to follow sound management principles; and
     (ii) require periodic reporting from the director to ensure that:

     (A) sound management principles are being followed; and
     (B) policies established by the commission are being observed;
     (j) (i) receive, consider, and act in a timely manner upon the reports, recommendations, and matters submitted by the director to the commission; and
     (ii) do the things necessary to support the department in properly performing the department's duties and responsibilities;
     (k) obtain temporarily and for special purposes the services of an expert or person engaged in the practice of a profession or who possess any needed skills, talents, or abilities if:
     (i) considered expedient; and
     (ii) approved by the governor;
     (l) prescribe the duties of a departmental official authorized to assist the commission in issuing a permit, license, certificate of approval, or package agency under this title;
     (m) prescribe, consistent with this title, the fees payable for:
     (i) a permit, license, certificate of approval, or package agency issued under this title; or
     (ii) anything done or permitted to be done under this title;
     (n) prescribe the conduct, management, and equipment of a premise upon which an alcoholic beverage may be sold, consumed, served, or stored;
     (o) make rules governing the credit terms of beer sales to retailers within the state;
     (p) require that each of the following, where required in this title, display in a prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah.":
     (i) a state store;
     (ii) a permittee;
     (iii) a licensee; and
     (iv) a package agency; and
     (q) subject to Subsection (4) and as provided in this title, impose fines against:
     (i) a permittee, licensee, certificate holder, or package agent described in Subsection (1)(e); or
     (ii) an officer, employee, or agent of a permittee, licensee, certificate holder, or package agent described in Subsection (1)(q)(i).
     (2) The power of the commission to do the following is plenary, except as otherwise provided by this title, and not subject to review:
     (a) establish a state store;
     (b) create a package agency;
     (c) grant authority to operate a package agency; and
     (d) grant or deny a permit, license, or certificate of approval.
     (3) The commission may appoint a qualified hearing examiner to conduct a suspension or revocation hearing required by law.
     (4) (a) In a case when the commission is given the power to suspend a permit, license, certificate of approval, or package agency the commission may impose a fine in addition to or in lieu of suspension.
     (b) A fine imposed may not exceed $25,000 in the aggregate for:
     (i) a single Notice of Agency Action; or
     (ii) a single action against a package agency.
     (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines

for each violation.
     (5) (a) As used in this Subsection (5):
     (i) "Conditional license" means a license issued to a person that:
     (A) is for one of the following:
     (I) a restaurant license; or
     (II) a limited restaurant license; and
     (B) conditions the person's ability to sell or allow the consumption of an alcoholic beverage on its premises on the person providing a copy of the person's current business license before obtaining a valid license; and
     (C) provides that the person will be issued or granted a valid license if the person complies with the requirements of Subsection (5)(c).
     (ii) "Valid license" means a license issued under Subsection (1)(f) under which the person is permitted to sell or allow the consumption of an alcoholic beverage on its premises.
     (b) Subject to the requirements of this Subsection (5), the commission may grant a conditional license to a person if the person:
     (i) meets all of the requirements to obtain the license for which the person is applying except the requirement to submit a copy of the applicant's current business license; and
     (ii) agrees not to sell or allow the consumption of an alcoholic beverage on its premises before obtaining a valid license.
     (c) (i) A conditional license becomes a valid license on the day on which the department notifies the person who holds the conditional license that the department finds that the person has complied with Subsection (5)(c)(ii).
     (ii) For a conditional license to become a valid license, a person who holds the conditional license shall:
     (A) submit to the department a copy of the person's current business license; and
     (B) provide to the department evidence satisfactory to the department that:
     (I) there has been no change in the information provided to the commission as part of the person's application for a license; and
     (II) the person continues to qualify for the license.
     (d) A conditional license expires six months after the day on which the commission issues or grants the license, unless it becomes a valid license before that day.

Amended by Chapter 190, 2009 General Session
Amended by Chapter 383, 2009 General Session
Download Code Section Zipped WordPerfect 32A01_010700.ZIP 7,613 Bytes

Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page

Last revised: Thursday, May 28, 2009