32A-1-119.   Disciplinary proceedings -- Procedure.
     (1) As used in Subsection (4), "final adjudication" means an adjudication for which a final judgment or order is issued that:
     (a) is not appealed, and the time to appeal the judgment has expired; or
     (b) is appealed, and is affirmed, in whole or in part, on appeal.
     (2) (a) Subject to Section 32A-1-119.5, the following may conduct an adjudicative proceeding to inquire into a matter necessary and proper for the administration of this title and rules adopted under this title:
     (i) the commission;
     (ii) a hearing examiner appointed by the commission for the purposes provided in Subsection 32A-1-107(3);
     (iii) the director; and
     (iv) the department.
     (b) Except as provided in this section or Section 32A-3-106, the following shall comply with the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act, in an adjudicative proceeding:
     (i) the commission;
     (ii) a hearing examiner appointed by the commission;
     (iii) the director; and
     (iv) the department.
     (c) Except where otherwise provided by law, an adjudicative proceeding before the commission or a hearing examiner appointed by the commission shall be:
     (i) video or audio recorded; and
     (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4, Open and Public Meetings Act.
     (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
     (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures made by the commission, director, or department.
     (3) (a) Subject to Section 32A-1-119.5, a disciplinary proceeding shall be conducted under the authority of the commission, which is responsible for rendering a final decision and order on a disciplinary matter.
     (b) (i) Nothing in this section precludes the commission from appointing a necessary officer, including a hearing examiner, from within or without the department, to administer the disciplinary proceeding process.
     (ii) A hearing examiner appointed by the commission:
     (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
     (B) shall submit to the commission a report including:
     (I) findings of fact determined on the basis of a preponderance of the evidence presented at the hearing;
     (II) conclusions of law; and
     (III) recommendations.
     (c) Nothing in this section precludes the commission, after the commission renders its

final decision and order, from having the director prepare, issue, and cause to be served on the parties the final written order on behalf of the commission.
     (4) Subject to Section 32A-1-119.5:
     (a) The department may initiate a disciplinary proceeding described in Subsection (4)(b) if the department receives:
     (i) a report from a government agency, peace officer, examiner, or investigator alleging that a person listed in Subsections 32A-1-105(18)(a)(i) through (vii) violated this title or the rules of the commission;
     (ii) a final adjudication of criminal liability against a person listed in Subsections 32A-1-105(18)(a)(i) through (vii) based on an alleged violation of this title; or
     (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage Liability, against a person listed in Subsections 32A-1-105(18)(a)(i) through (vii) based on an alleged violation of this title.
     (b) The department may initiate a disciplinary proceeding if the department receives an item listed in Subsection (4)(a) to determine:
     (i) whether a person listed in Subsections 32A-1-105(18)(a)(i) through (vii) violated this title or rules of the commission; and
     (ii) if a violation is found, the appropriate sanction to be imposed.
     (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
     (i) if required by law;
     (ii) before revoking or suspending a permit, license, or certificate of approval issued under this title; or
     (iii) before imposing a fine against a person listed in Subsections 32A-1-105(18)(a)(i) through (vii).
     (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding hearing after receiving proper notice is an admission of the charged violation.
     (c) The validity of a disciplinary proceeding is not affected by the failure of a person to attend or remain in attendance.
     (d) The commission or an appointed hearing examiner shall preside over a disciplinary proceeding hearing.
     (e) A disciplinary proceeding hearing may be closed only after the commission or hearing examiner makes a written finding that the public interest in an open hearing is clearly outweighed by factors enumerated in the closure order.
     (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding hearing may:
     (A) administer oaths or affirmations;
     (B) take evidence;
     (C) take a deposition within or without this state; and
     (D) require by subpoena from a place within this state:
     (I) the testimony of a person at a hearing; and
     (II) the production of a book, record, paper, contract, agreement, document, or other evidence considered relevant to the inquiry.
     (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and produce a book, paper, document, or tangible thing as required in the subpoena.
     (iii) A witness subpoenaed or called to testify or produce evidence who claims a

privilege against self-incrimination may not be compelled to testify, but the commission or the hearing examiner shall file a written report with the county attorney or district attorney in the jurisdiction where the privilege is claimed or where the witness resides setting forth the circumstance of the claimed privilege.
     (iv) (A) A person is not excused from obeying a subpoena without just cause.
     (B) A district court within the judicial district in which a person alleged to be guilty of willful contempt of court or refusal to obey a subpoena is found or resides, upon application by the party issuing the subpoena, may issue an order requiring the person to:
     (I) appear before the issuing party; and
     (II) (Aa) produce documentary evidence if so ordered; or
     (Bb) give evidence regarding the matter in question.
     (C) Failure to obey an order of the court may be punished by the court as contempt.
     (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
     (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not recommend a penalty more severe than that initially sought by the department in the notice of agency action.
     (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g) shall be served upon the respective parties.
     (iv) The respondent and the department shall be given reasonable opportunity to file a written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g) before final commission action.
     (h) In a case heard by the commission, it shall issue its final decision and order in accordance with Subsection (3).
     (6) (a) The commission shall:
     (i) render a final decision and order on a disciplinary action; and
     (ii) cause its final order to be prepared in writing, issued, and served on all parties.
     (b) An order of the commission is final on the date the order is issued.
     (c) If the commission is satisfied that a person listed in Subsections 32A-1-105(18)(a)(i) through (vii) violated this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
     (i) suspend or revoke the permit, license, or certificate of approval;
     (ii) impose a fine against a person listed in Subsections 32A-1-105(18)(a)(i) through (vii);
     (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the licensee, or certificate holder; or
     (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
     (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections 32A-1-107(1)(q) and (4).
     (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or licensee shall prominently post a sign provided by the department:
     (A) during the suspension; and
     (B) at the entrance of the premises of the permittee or licensee.
     (ii) The sign required by this Subsection (6)(e) shall:
     (A) read "The Utah Alcoholic Beverage Control Commission has suspended the

alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be sold, served, furnished, or consumed on these premises during the period of suspension."; and
     (B) include the dates of the suspension period.
     (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required to be posted under this Subsection (6)(e) during the suspension period.
     (f) If a permit or license is revoked, the commission may order the revocation of a compliance bond posted by the permittee or licensee.
     (g) A permittee or licensee whose permit or license is revoked may not reapply for a permit or license under this title for three years from the date on which the permit or license is revoked.
     (h) The commission shall transfer all costs assessed into the General Fund in accordance with Section 32A-1-113.
     (7) Subject to Section 32A-1-119.5:
     (a) In addition to an action taken against a permittee, licensee, or certificate holder under this section, the department may initiate disciplinary action against an officer, employee, or agent of a permittee, licensee, or certificate holder.
     (b) If an officer, employee, or agent is found to have violated this title, the commission may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing, wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a period determined by the commission.
     (8) Subject to Section 32A-1-119.5:
     (a) The department may initiate a disciplinary proceeding for an alleged violation of this title or the rules of the commission against:
     (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
     (ii) an officer, employee, agent, or representative of a person listed in Subsection (8)(a)(i).
     (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the commission may, in addition to other penalties prescribed by this title, order:
     (A) the removal of the manufacturer's, supplier's, or importer's one or more products from the department's sales list; and
     (B) a suspension of the department's purchase of the one or more products described in Subsection (8)(b)(i)(A) for a period determined by the commission.
     (ii) The commission may take the action described in Subsection (8)(b)(i) if:
     (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt beverage, or its officer, employee, agent, or representative violates this title; and
     (B) the manufacturer, supplier, or importer:
     (I) directly commits the violation; or
     (II) solicits, requests, commands, encourages, or intentionally aids another to engage in the violation.
     (9) Subject to Section 32A-1-119.5:
     (a) The department may initiate a disciplinary proceeding against a brewer holding a certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules of the commission.
     (b) If the commission makes a finding that the brewer holding a certificate of approval

violates this title or rules of the commission, the commission may take an action against the brewer holding a certificate of approval that the commission could take against a licensee including:
     (i) suspension or revocation of the certificate of approval; and
     (ii) imposition of a fine.
     (10) (a) An adjudicative proceeding under this title, including a disciplinary proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is a violation of statute that can be prosecuted criminally.
     (b) Unless specifically adopted in this title, a procedure or principal that is applicable to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title including:
     (i) Title 76, Chapter 1, General Provisions;
     (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
     (iii) Title 76, Chapter 3, Punishments; and
     (iv) Title 76, Chapter 4, Inchoate Offenses.
     (c) (i) The burden of proof in an adjudicative proceeding under this title is by a preponderance of the evidence.
     (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative defense, the subject has the burden of proof to establish the affirmative defense by the preponderance of the evidence.
     (d) In an adjudicative proceeding under this title, to find a violation of this title the commission:
     (i) is required to determine whether the conduct that constitutes the violation occurred; and
     (ii) is not required to make a finding of knowledge or intent unless knowledge or intent is expressly made an element of the violation by statute.
     (11) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by the commission or a hearing examiner appointed by the commission shall proceed formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
     (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health, and welfare;
     (ii) the alleged violation involves:
     (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
     (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and Entertainment Act;
     (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf of the respondent;
     (D) interfering or refusing to cooperate with:
     (I) an authorized official of the department or the state in the discharge of the official's duties in relation to the enforcement of this title; or
     (II) a peace officer in the discharge of the peace officer's duties in relation to the enforcement of this title;
     (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606;
     (F) unlawful importation of an alcoholic product; or
     (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection

32A-12-601(2), to a person other than the department or a military installation, except to the extent permitted by this title; or
     (iii) the department determines to seek in a disciplinary proceeding hearing:
     (A) an administrative fine exceeding $3,000;
     (B) a suspension of a license, permit, or certificate of approval of more than ten days; or
     (C) a revocation of a license, permit, or certificate of approval.
     (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by the commission in accordance with Subsection (11)(c).
     (c) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to provide a procedure to implement this Subsection (11).
     (12) Notwithstanding the other provisions of this title, the commission may not order a disciplinary action or fine in accordance with this section if the disciplinary action or fine is ordered on the basis of a violation:
     (a) of a provision in this title related to intoxication or becoming intoxicated; and
     (b) if the violation is first investigated by a law enforcement officer, as defined in Section 53-13-103, who has not received training regarding the requirements of this title related to responsible alcoholic beverage sale or service.

Amended by Chapter 190, 2009 General Session
Amended by Chapter 383, 2009 General Session
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Last revised: Thursday, May 28, 2009