S.B. 160

1

BEER LICENSE AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Leonard M. Blackham
5 AN ACT RELATING TO ALCOHOLIC BEVERAGES; AMENDING DEFINITIONS;
6 AMENDING RESTRICTIONS ON LICENSED BEER RETAILERS; AMENDING
7 APPLICATION REQUIREMENTS; AMENDING OPERATIONAL RESTRICTIONS ON
8 BEER WHOLESALING LICENSEES; AND MAKING TECHNICAL CORRECTIONS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 32A-1-105, as last amended by Chapters 77 and 88, Laws of Utah 1994
12 32A-10-102, as last amended by Chapters 77 and 88, Laws of Utah 1994
13 32A-11-102, as last amended by Chapter 132, Laws of Utah 1991
14 32A-11-106, as last amended by Chapter 88, Laws of Utah 1994
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 32A-1-105 is amended to read:
17 32A-1-105. Definitions.
18 As used in this title:
19 (1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
20 retail, for consumption on its premises located at an international airport with a United States
21 Customs office on its premises.
22 (2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
23 section.
24 (3) (a) "Alcoholic products" means all products that contain at least 63/100 of 1% of
25 alcohol by volume or at least 1/2 of 1% by weight, and are obtained by fermentation, infusion,
26 decoction, brewing, distillation, or any other process that uses any liquid or combinations of
27 liquids, whether drinkable or not, to create alcohol in an amount greater than the amount

1 prescribed in this subsection.
2 (b) "Alcoholic products" does not include common extracts, vinegars, ciders, essences,
3 tinctures, food preparations, or over-the-counter drugs and medicines that otherwise come within
4 this definition.
5 (4) "Beer" means all products that contain 63/100 of 1% of alcohol by volume or 1/2 of
6 1% of alcohol by weight, but not more than 4% of alcohol by volume or 3.2% by weight, and are
7 obtained by fermentation, infusion, or decoction of any malted grain. Beer may or may not contain
8 hops or other vegetable products. Beer includes products referred to as malt liquor, malted
9 beverages, or malt coolers.
10 (5) (a) "Beer retailer" means any business establishment engaged, primarily or
11 incidentally, in the retail sale or distribution of beer to public patrons, whether for consumption
12 on or off the establishment's premises, and that is licensed to sell beer by the commission, by a
13 local authority, or both.
14 (b) (i) "On-premise beer retailer" means any beer retailer engaged, primarily or
15 incidentally, in the sale or distribution of beer to public patrons for consumption on the beer
16 retailer's premises.
17 (ii) "On-premise beer retailer" includes taverns.
18 (c) (i) "Tavern" means any business establishment engaged primarily in the retail sale or
19 distribution of beer to public patrons for consumption on the establishment's premises, and that
20 is licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
21 (ii) "Tavern" includes a beer bar, parlor, lounge, cabaret, and night club where the revenue
22 from the sale of beer exceeds the revenue of the sale of food, although food need not be sold in the
23 establishment.
24 (6) "Billboard" means any light device, painting, drawing, poster, sign, signboard,
25 scoreboard, or other similar public display used to advertise, but does not include:
26 (a) displays on beer delivery vehicles if the displays do not overtly promote the
27 consumption of alcoholic beverages;
28 (b) displays in taverns and private clubs, if the displays are not visible to persons
29 off-premises;
30 (c) point-of-sale displays, other than light devices, in retail establishments that sell beer
31 for off-premise consumption, if the displays are not visible to persons off-premises;

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1 (d) private business signs on the premises of any business engaged primarily in the
2 distribution of beer;
3 (e) newspapers, magazines, circulars, programs, or other similar printed materials, if the
4 materials are not directed primarily to minors;
5 (f) menu boards in retail establishments that sell beer for on-premise consumption if the
6 menu boards also contain food items;
7 (g) handles on alcoholic beverage dispensing equipment that identify brands of products
8 being dispensed; and
9 (h) displays at the site of a temporary special event for which a single event liquor permit
10 has been obtained from the commission or a temporary special event beer permit has been obtained
11 from a local authority to inform attendees of the location where alcoholic beverages are being
12 dispensed.
13 (7) "Brewer" means any person engaged in manufacturing beer, malt liquor, or malted
14 beverages.
15 (8) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by a
16 bus company to a group of persons:
17 (a) pursuant to a common purpose[,];
18 (b) under a single contract[, and];
19 (c) at a fixed charge in accordance with the bus company's tariff[,]; and
20 (d) for the purpose of giving the group of persons the exclusive use of the bus and a driver
21 to travel together to a specified destination or destinations.
22 (9) "Church" means a building:
23 (a) set apart primarily for the purpose of worship:
24 (b) in which religious services are held [and];
25 (c) with which clergy is associated[, and];
26 (d) the main body of which is kept for [that use] worship and not put to any other use
27 inconsistent with its primary purpose[,]; and
28 (e) which is tax exempt under the laws of this state.
29 (10) "Club" and "private club" means any nonprofit corporation operating as a social club,
30 recreational, fraternal, or athletic association, or kindred association organized primarily for the
31 benefit of its stockholders or members.

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1 (11) "Commission" means the Alcoholic Beverage Control Commission.
2 (12) "Cork-finished wine" means a container of wine stopped by a cork and finished by
3 foil, lead, or other substance by the manufacturer.
4 (13) "Council" means the Citizen's Council on Alcoholic Beverage Control.
5 (14) "Department" means the Department of Alcoholic Beverage Control.
6 (15) "Distressed merchandise" means any alcoholic beverage in the possession of the
7 department that is saleable, but for some reason is unappealing to the public.
8 (16) "General food store" means any business establishment primarily engaged in selling
9 food and grocery supplies to public patrons for off-premise consumption.
10 (17) "Governing body" means the board of not fewer than five shareholders or voting
11 members of a private club who have been elected and authorized to control or conduct the business
12 and affairs of that club.
13 (18) "Guest" means a person accompanied by an active member or visitor of a club who
14 enjoys only those privileges derived from the host for the duration of the visit to the club.
15 (19) "Heavy beer" means all products that contain more than 4% alcohol by volume
16 obtained by fermentation, infusion, or decoction of any malted grain. "Heavy beer" is considered
17 "liquor" for the purposes of this title.
18 (20) "Identification card" means the card issued by the commissioner of the Department
19 of Public Safety under Title 53, Chapter 3, Part 8, Identification Card Act.
20 (21) "Interdicted person" means a person to whom the sale, gift, or provision of an
21 alcoholic beverage is prohibited by law or court order.
22 (22) "Licensee" means any person issued a license by the commission to sell, manufacture,
23 store, or allow consumption of alcoholic beverages on premises owned or controlled by the person.
24 (23) "Limousine" means any motor vehicle licensed by the state or a local authority, other
25 than a bus or taxicab[,]:
26 (a) in which the driver and passengers are separated by a partition, glass, or other barrier;
27 and
28 (b) that is provided by a company to an individual or individuals at a fixed charge in
29 accordance with the company's tariff for the purpose of giving the individual or individuals the
30 exclusive use of the limousine and a driver to travel to a specified destination or destinations.
31 (24) (a) "Liquor" means alcohol, or any alcoholic, spiritous, vinous, fermented, malt, or

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1 other liquid, or combination of liquids, a part of which is spiritous, vinous, or fermented, and all
2 other drinks, or drinkable liquids that contain more than 1/2 of 1% of alcohol by volume and is
3 suitable to use for beverage purposes.
4 (b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
5 beverage that has an alcohol content of less than 4% alcohol by volume.
6 (25) "Local authority" means:
7 (a) the county legislative body of the county if the premises are located in an
8 unincorporated area of a county[,]; or
9 (b) the governing body of the city or town if the premises are located in an incorporated
10 city or town.
11 (26) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
12 otherwise make an alcoholic product for personal use or for sale or distribution to others.
13 (27) "Member" means a person who, after paying regular dues, has full privileges of a club
14 under this title.
15 (28) "Minor" means any person under the age of 21 years.
16 (29) "Outlet" means a location other than a state store or package agency where alcoholic
17 beverages are sold pursuant to a license issued by the commission.
18 (30) "Package" means any container, bottle, vessel, or other receptacle containing liquor.
19 (31) "Package agency" means a retail liquor location operated under a contractual
20 agreement with the department, by a person other than the state, who is authorized by the
21 commission to sell package liquor for consumption off the premises of the agency.
22 (32) "Package agent" means any person permitted by the commission to operate a package
23 agency pursuant to a contractual agreement with the department to sell liquor from premises that
24 the package agent shall provide and maintain.
25 (33) "Permittee" means any person issued a permit by the commission to perform acts or
26 exercise privileges as specifically granted in the permit.
27 (34) "Person" means any individual, partnership, firm, corporation, association, business
28 trust, or other form of business enterprise, including a receiver or trustee, and the plural as well as
29 the singular number, unless the intent to give a more limited meaning is disclosed by the context.
30 (35) "Policy" means a statement of principles established by the commission to guide the
31 administration of this title and the management of the affairs of the department.

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1 (36) "Premises" means any building, enclosure, room, or equipment used in connection
2 with the sale, storage, service, manufacture, distribution, or consumption of alcoholic products,
3 unless otherwise defined in this title or in the rules adopted by the commission.
4 (37) "Prescription" means a writing in legal form, signed by a physician or dentist and
5 given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
6 (38) (a) "Privately-hosted event" or "private social function" means a specific social,
7 business, or recreational event for which an entire room, area, or hall has been leased or rented,
8 in advance by an identified group, and the event or function is limited in attendance to people who
9 have been specifically designated and their guests.
10 (b) "Privately-hosted event" and "private social function" does not include events or
11 functions to which the general public is invited, whether for an admission fee or not.
12 (39) (a) "Public building" means any building or permanent structure owned or leased by
13 the state, a county, or local government entity that is used for:
14 (i) public education[,];
15 (ii) transacting public business[,]; or
16 (iii) regularly conducting government activities.
17 (b) "Public building" does not mean or refer to any building owned by the state or a county
18 or local government entity when the building is used by anyone, in whole or in part, for proprietary
19 functions.
20 (40) "Representative" means an individual who is compensated by salary, commission,
21 or any other means for representing and selling the alcoholic beverage products of a manufacturer,
22 supplier, or importer of liquor, wine, or heavy beer.
23 (41) "Residence" means the person's principal place of abode within Utah.
24 (42) "Restaurant" means any business establishment:
25 (a) where a variety of foods is prepared and complete meals are served to the general
26 public;
27 (b) located on a premises having adequate culinary fixtures for food preparation and dining
28 accommodations; and
29 (c) that is engaged primarily in serving meals to the general public.
30 (43) "Retailer" means any person engaged in the sale or distribution of alcoholic beverages
31 to the consumer.

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1 (44) (a) "Rule" means a general statement adopted by the commission to guide the
2 activities of those regulated or employed by the department, to implement or interpret this title,
3 or to describe the organization, procedure, or practice requirements of the department in order to
4 carry out the intent of the law and ensure its uniform application. This definition includes any
5 amendment or repeal of a prior rule.
6 (b) "Rule" does not include a rule concerning only the internal management of the
7 department that does not affect private rights or procedures available to the public, including
8 intradepartmental memoranda.
9 (45) (a) "Sample" includes department samples, industry representative samples, and
10 department trade show samples.
11 (b) "Department sample" means liquor, wine, and heavy beer that has been placed in the
12 possession of the department for testing, analysis, and sampling.
13 (c) "Department trade show sample" means liquor, wine, and heavy beer that has been
14 placed in the possession of the department for use in a trade show conducted by the department.
15 (d) "Industry representative sample" means liquor, wine, and heavy beer that has been
16 placed in the possession of the department for testing, analysis, and sampling by local industry
17 representatives on the premises of the department to educate themselves of the quality and
18 characteristics of the product.
19 (46) (a) "School" means any building used primarily for the general education of minors.
20 (b) "School" does not include nursery schools, infant day care centers, or trade or technical
21 schools.
22 (47) "Sell," "sale," and "to sell" means any transaction, exchange, or barter whereby, for
23 any consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
24 ordered, delivered for value, or by any means or under any pretext is promised or obtained,
25 whether done by a person as a principal, proprietor, or as an agent, servant, or employee, unless
26 otherwise defined in this title or the rules made by the commission.
27 (48) "Small brewer" means a brewer who manufactures less than 60,000 barrels of beer
28 and heavy beer per year.
29 (49) (a) "State label" means the official label designated by the commission affixed to all
30 liquor containers sold in the state.
31 (b) "State label" includes the department identification mark and inventory control

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1 number.
2 (50) (a) "State store" means a facility for the sale of package liquor located on premises
3 owned or leased by the state and operated by state employees.
4 (b) "State store" does not apply to any licensee, permittee, or to package agencies.
5 (51) "Supplier" means any person selling alcoholic beverages to the department.
6 (52) "Temporary domicile" means the principal place of abode within Utah of a person
7 who does not have a present intention to continue residency within Utah permanently or
8 indefinitely.
9 (53) "Unsaleable liquor merchandise" means merchandise that is unsaleable because it is
10 unlabeled, leaky, damaged, difficult to open, partly filled, or is in a container having faded labels
11 or defective caps or corks, or in which the contents are cloudy, spoiled, or chemically determined
12 to be impure, or that contains sediment, or any foreign substance, or is otherwise considered by
13 the department as unfit for sale.
14 (54) "Visitor" means a person holding limited privileges in a club by virtue of a visitor
15 card purchased from the club and authorized by a sponsoring member of the club.
16 (55) "Warehouser" means any person, other than a licensed manufacturer, engaged in the
17 importation for sale, storage, or distribution of liquor regardless of amount.
18 (56) "Wholesaler" means any person engaged in:
19 (a) the importation for sale[,] or [in] the sale of beer in wholesale or jobbing quantities to
20 beer retailers, other than a small brewer selling beer manufactured by that brewer[.];
21 (b) warehousing or storage of beer, other than storage by a licensed beer retailer on the
22 beer retailer's licensed premises; or
23 (c) distribution or delivery of beer to one or more beer retailers, other than transportation
24 and delivery by a common carrier utilized by a licensed wholesaler to deliver beer directly to a
25 beer retailer on an occasional basis.
26 (57) (a) "Wine" means any alcoholic beverage obtained by the fermentation of the natural
27 sugar content of fruits, plants, honey, or milk, or any other like substance, whether or not other
28 ingredients are added.
29 (b) "Wine" is considered "liquor" for purposes of this title.
30 Section 2. Section 32A-10-102 is amended to read:
31 32A-10-102. General restrictions.

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1 (1) (a) (i) A beer retailer licensed under this part or Part 2 may not purchase, acquire,
2 possess for the purpose of resale, or sell any beer except that which has been:
3 (A) lawfully purchased from:
4 (I) a wholesaler licensed under this title; or [from]
5 (II) a small brewer that manufactured the beer[.]; and
6 (B) delivered by the licensed wholesaler or small brewer described in Subsection
7 (1)(a)(i)(A) directly to the beer retailer's licensed premises.
8 (ii) Violation of Subsection (1)(a) is a class A misdemeanor.
9 (b) (i) All purchases made of beer by any beer retailer from a licensed wholesaler shall be
10 from that wholesaler who is authorized by the commission to sell beer in the geographical area in
11 which the beer retailer is located, unless an alternate wholesaler is authorized by the commission
12 to sell to the beer retailer as provided in Section 32A-11-106.
13 (ii) Violation of Subsection (1)(b) is a class B misdemeanor.
14 (2) (a) Beer may not be sold, provided, or possessed for off-premise consumption in
15 containers larger than two liters.
16 (b) On-premise beer retailer licenses issued by the commission are not required for
17 temporary special events that do not last longer than 30 days.
18 (3) A minor may not be granted a beer retailer license.
19 (4) A minor may not sell beer on the premises of a beer retailer for off-premise
20 consumption except under the supervision of a person 21 years of age or older who is on the
21 premises.
22 (5) If malt beverage coolers or malt liquor is sold by a beer retailer for off-premise
23 consumption, the beer retailer shall display a sign at the location on the premises where malt
24 beverages or malt liquor is sold stating: "Many malt beverages contain alcohol. Please read the
25 label." A violation of this subsection is an infraction.
26 Section 3. Section 32A-11-102 is amended to read:
27 32A-11-102. Application and renewal requirements.
28 (1) A person seeking a beer wholesaling license under this chapter shall file a written
29 application with the department, in a form prescribed by the department. It shall be accompanied
30 by:
31 (a) a nonrefundable $100 application fee;

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1 (b) an initial license fee of $300, which is refundable if a license is not granted;
2 (c) written consent of the local authority;
3 (d) a copy of the applicant's current business license;
4 (e) a bond as specified in Section 32A-11-105;
5 (f) evidence that the applicant is carrying public liability insurance in an amount and form
6 satisfactory to the department;
7 (g) a signed consent form stating that the licensee will permit any authorized representative
8 of the commission, department, council, or any law enforcement officer unrestricted right to enter
9 the licensed premises;
10 (h) a statement of the brands of beer the applicant is authorized to sell and distribute;
11 (i) a statement of all geographical areas in which the applicant is authorized to sell and
12 distribute beer; [and]
13 (j) a copy of any agreement between the applicant and a brewer licensed or approved by
14 the department that:
15 (i) authorizes the applicant to sell and distribute the brewer's brands of beer; and
16 (ii) identifies the geographical areas in which the applicant is authorized to sell and
17 distribute the brands; and
18 [(j)] (k) any other documents and evidence as the department may direct.
19 (2) Each application shall be signed and verified by oath or affirmation by an executive
20 officer or any person specifically authorized by the corporation to sign the application, to which
21 shall be attached written evidence of said authority.
22 (3) (a) All beer wholesaling licenses expire on December 31 of each year. [Persons] A
23 person desiring to renew [their] that person's beer wholesaling license shall submit a renewal fee
24 of $300 and a completed renewal application to the department no later than November 30 of the
25 year the license expires. Failure to meet the renewal requirements results in an automatic
26 forfeiture of the license effective on the date the existing license expires. Renewal applications
27 shall be in a form prescribed by the department.
28 (b) The annual renewal fee prescribed in this Subsection (3) is independent of any like
29 license fee which may be assessed by the local authority of the city or county in which the
30 wholesaler's warehouse is located. Any local fees may not exceed $300. Payment of local fees
31 shall be made directly to the local authority assessing them.

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1 (4) If any licensee does not immediately notify the department of any change in ownership
2 of the licensee, or in the case of a Utah corporate owner of any change in the corporate officers or
3 directors, the commission may suspend or revoke that license.
4 Section 4. Section 32A-11-106 is amended to read:
5 32A-11-106. Operational restrictions.
6 (1) Any person who is granted a beer wholesaling license, and the employees and
7 management personnel of the licensee, shall abide by the following conditions and requirements:
8 (a) A licensee may not wholesale any beer manufactured within the state by a brewer who
9 is not licensed by the commission as a manufacturing licensee.
10 (b) A licensee may not wholesale any beer manufactured out of state by a brewer who has
11 not obtained a certificate of approval from the department.
12 (c) A licensee may not sell or distribute beer to any person within the state except directly
13 to licensed beer retailers or holders of retail beer permits or licenses issued by a local authority for
14 temporary special events that do not last longer than 30 days.
15 (d) Any delivery of beer sold or distributed in accordance with Subsection (1)(c) shall be
16 made by the wholesaler directly to the premises identified in the beer retailer's license or permit.
17 [(d)] (e) A licensee may not sell or distribute any beer to any retailer outside of the
18 geographic area designated on its application, except that if a licensee is temporarily unable to
19 supply retail dealers within its authorized geographical area, the department may grant temporary
20 authority to another licensed wholesaler who distributes the same brand in another area to supply
21 retailers.
22 [(e)] (f) (i) Every licensee shall own, lease, or otherwise control and maintain a warehouse
23 facility located in this state for the receipt, storage, and further distribution of all beer sold by the
24 licensee to any person within the state.
25 (ii) A licensee may not sell beer to any person in this state, other than the department,
26 unless the beer has first been physically removed from the vehicle used to transport the beer from
27 the supplier to the licensee and delivered into the actual possession and control of the licensee in
28 its warehouse or other facility.
29 [(f)] (g) Each beer wholesaling licensee shall maintain accounting and other records and
30 documents as the department may require. Any licensee or person acting for the licensee, who
31 knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the

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1 books of account or other documents of the licensee required to be made, maintained, or preserved
2 by this title or the rules of the commission for the purpose of deceiving the commission, council,
3 or department, or any of their officials or employees, is subject to the immediate suspension or
4 revocation of the beer wholesaling license and possible criminal prosecution under Chapter 12,
5 Criminal Offenses.
6 [(g)] (h) A licensee may not assign or transfer its license unless the assignment or transfer
7 is done in accordance with the commission rules and after written consent has been given by the
8 commission.
9 [(h)] (i) A licensee may not sell or distribute any alcoholic beverage that is not clearly
10 labeled in a manner reasonably calculated to put the public on notice that the beverage is an
11 alcoholic beverage. The beverage shall bear the label "alcoholic beverage" or a manufacturer's
12 label which in common usage apprises the general public that the beverage contains alcohol.
13 (2) Failure to comply with [the provisions of] Subsection (1) may result in suspension or
14 revocation of the beer wholesaling license or other disciplinary action taken against individual
15 employees or management personnel of the licensee.




Legislative Review Note
as of 1-29-97 8:27 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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