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First Substitute H.B. 425

Representative Christine A. Johnson proposes the following substitute bill:


             1     
EXEMPTION FOR ALCOHOLIC BEVERAGE

             2     
MANUFACTURING LICENSE

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Christine A. Johnson

             6     
Senate Sponsor: Dennis E. Stowell

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act to address exemptions from
             11      manufacturing license requirements.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    creates an exemption from licensure for a fermented beverage manufactured in an
             16      individual's personal residence;
             17          .    allows storage and transportation; and
             18          .    makes technical amendments.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          32A-8-101, as last amended by Laws of Utah 2003, Chapter 314


             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 32A-8-101 is amended to read:
             29           32A-8-101. Commission's power to grant licenses -- Limitations.
             30          (1) The commission may issue an alcoholic beverage manufacturing [licenses to
             31      manufacturers whose businesses are] license to a manufacturer whose business is located in
             32      this state for the manufacture, storage, and sale of alcoholic beverages for each type of license
             33      provided by this chapter.
             34          (2) The type of manufacturing licenses issued under this chapter are known as a:
             35          (a) winery [licenses] license;
             36          (b) distillery [licenses] license; and
             37          (c) brewery [licenses] license.
             38          (3) (a) [A] Except as provided in Subsection (6), a person may not manufacture [any]
             39      an alcoholic beverage unless an alcoholic beverage manufacturing license [has been] is issued
             40      by the commission.
             41          (b) A separate license is required for each place of manufacture, storage, and sale of an
             42      alcoholic [beverages] beverage.
             43          (c) Violation of this Subsection (3) is a class B misdemeanor.
             44          (4) [Brewers] (a) A brewer located outside the state [are] is not required to be licensed
             45      under this chapter. [However, they]
             46          (b) A brewer described in Subsection (4)(a) must obtain a certificate of approval from
             47      the department before selling or delivering:
             48          (i) beer to a licensed beer [wholesalers] wholesaler in this state[,]; or
             49          (ii) if a small brewer, beer to a licensed beer [wholesalers or retailers] wholesaler or
             50      retailer in this state.
             51          [(a)] (c) A brewer seeking a certificate of approval shall file a written application with
             52      the department, in a form prescribed by the department. The application shall be accompanied
             53      by:
             54          (i) a nonrefundable $50 application fee;
             55          (ii) an initial certificate of approval fee of $250 that is refundable if a certificate is not
             56      granted;


             57          (iii) evidence of authority from the United States Bureau of Alcohol, Tobacco, and
             58      Firearms to brew beer and heavy beer products; and
             59          (iv) any other information or documents the department may require.
             60          [(b) Each] (d) (i) An application shall be signed and verified by oath or affirmation by:
             61          (A) a partner if the brewer is a partnership[,]; or [by]
             62          (B) an executive officer, manager, or person specifically authorized by a corporation or
             63      limited liability company to sign the application [to which shall be attached written evidence of
             64      this authority].
             65          (ii) The brewer filing an application shall attach to the application written evidence of
             66      the authority of the person described in Subsection (4)(d)(i) to sign the application.
             67          [(c)] (e) (i) All certificates of approval expire on December 31 of each year.
             68          (ii) [Brewers] A brewer desiring to renew [their certificates] its certificate shall submit
             69      a renewal fee of $200, and a completed renewal application to the department no later than
             70      November 30 of the year the certificate expires.
             71          (iii) Failure to meet the renewal requirements [shall result] results in an automatic
             72      forfeiture of the certificate effective on the date the existing certificate expires.
             73          (iv) [Renewal applications] A renewal application shall be in a form prescribed by the
             74      department.
             75          (5) The commission may prescribe by policy, directive, or rule, consistent with this
             76      title, the general operational requirements of licensees relating to:
             77          (a) physical facilities;
             78          (b) conditions of sale, storage, or manufacture of alcoholic beverages;
             79          (c) storage and sales quantity limitations; and
             80          (d) other matters considered appropriate by the commission.
             81          (6) (a) As used in this Subsection (6), "fermented alcoholic beverage" means an
             82      alcoholic beverage that:
             83          (i) contains at least .5% alcohol by volume; and
             84          (ii) is obtained by fermentation.
             85          (b) An individual may without being licensed under this chapter manufacture in the
             86      individual's personal residence a fermented alcoholic beverage if:
             87          (i) the individual is 21 years of age or older;


             88          (ii) the individual manufactures no more than:
             89          (A) 100 gallons in a calendar year, if there is one individual that is 21 years of age or
             90      older residing in the household; or
             91          (B) 200 gallons in a calendar year, if there are two or more individuals who are 21
             92      years of age or older residing in the household;
             93          (iii) the fermented alcoholic beverage is manufactured and used for:
             94          (A) personal or family use and consumption; or
             95          (B) an organized event where fermented alcoholic beverages are judged as to taste and
             96      quality; and
             97          (iv) the fermented alcoholic beverage is not for:
             98          (A) sale or offering for sale; or
             99          (B) consumption on a premise licensed by the commission.
             100          (c) An individual may store a fermented alcoholic beverage manufactured as provided
             101      in Subsection (6)(b) in the individual's personal residence.
             102          (d) A fermented alcoholic beverage manufactured in accordance with Subsection (6)(b)
             103      may be removed from the premises where it is manufactured:
             104          (i) for personal or family use, including use at an organized event where fermented
             105      alcoholic beverages are judged as to taste and quality; and
             106          (ii) if the fermented alcoholic beverage is transported in compliance with Section
             107      41-6a-526 .


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