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H.B. 376

This document includes House Committee Amendments incorporated into the bill on Wed, Mar 4, 2009 at 10:39 AM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Mon, Mar 9, 2009 at 4:43 PM by ddonat. -->              1     

REVISIONS TO ALCOHOLIC BEVERAGE

             2     
CONTROL ACT

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gregory H. Hughes

             6     
Senate Sponsor: John L. Valentine

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definitions;
             14          .    addresses the nature of an adjudicative proceeding as a civil action including the
             15      burden of proof and the general applicability of mens rea requirements;
             16          .    makes procedural clarifications;
             16a      H. . requires training of law enforcement officers in certain circumstances; .H
             17          .    clarifies the application of criminal procedures, principles, and penalties; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
             26          32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
             27          32A-12-101, as renumbered and amended by Laws of Utah 1990, Chapter 23
             27a      H. 32A-12-102, as last amended by Laws of Utah 2004, Chapter 268 .H



             28          32A-12-104, as last amended by Laws of Utah 2007, Chapter 322
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 32A-1-105 is amended to read:
             32           32A-1-105. Definitions.
             33          As used in this title:
             34          (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
             35      at retail, for consumption on its premises located at an international airport with a United States
             36      Customs office on the premises of the international airport.
             37          (2) "Alcoholic beverage" means the following as the term is defined in this section:
             38          (a) beer;
             39          (b) flavored malt beverage; and
             40          (c) liquor[, which on or after October 1, 2008,] includes a flavored malt beverage.
             41          (3) (a) "Alcoholic product" means a product that:
             42          (i) contains at least .5% of alcohol by volume; and
             43          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             44      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             45      in an amount greater than the amount prescribed in Subsection (3)(a)(i).
             46          (b) "Alcoholic product" does not include any of the following common items that
             47      otherwise come within the definition of an alcoholic product:
             48          (i) except as provided in Subsection (3)(c), extract;
             49          (ii) vinegar;
             50          (iii) cider;
             51          (iv) essence;
             52          (v) tincture;
             53          (vi) food preparation; or
             54          (vii) an over-the-counter drug or medicine.
             55          (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
             56      product when it is used as a flavoring in the manufacturing of an alcoholic product.
             57          (4) "Bar" means a counter or similar structure:
             58          (a) at which an alcoholic beverage is:


             59          (i) stored; or
             60          (ii) dispensed; or
             61          (b) from which an alcoholic beverage is served.
             62          (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
             63          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             64      volume or 3.2% by weight; and
             65          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             66          (b) Beer may or may not contain hops or other vegetable products.
             67          (c) Beer includes a product that:
             68          (i) contains alcohol in the percentages described in Subsection (5)(a); and
             69          (ii) is referred to as:
             70          (A) beer;
             71          (B) ale;
             72          (C) porter;
             73          (D) stout;
             74          (E) lager; or
             75          (F) a malt or malted beverage.
             76          (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
             77      beverage.
             78          (6) (a) "Beer retailer" means a business that is:
             79          (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
             80      consumption on or off the business premises; and
             81          (ii) licensed to sell beer by:
             82          (A) the commission;
             83          (B) a local authority; or
             84          (C) both the commission and a local authority.
             85          (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
             86      beer to a patron for consumption off the beer retailer's premises.
             87          (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
             88          (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
             89      patron for consumption on the beer retailer's premises, regardless of whether the business sells


             90      beer for consumption off the beer retailer's premises.
             91          (7) "Billboard" means a public display used to advertise including:
             92          (a) a light device;
             93          (b) a painting;
             94          (c) a drawing;
             95          (d) a poster;
             96          (e) a sign;
             97          (f) a signboard; or
             98          (g) a scoreboard.
             99          (8) "Brewer" means a person engaged in manufacturing:
             100          (a) beer;
             101          (b) heavy beer; or
             102          (c) a flavored malt beverage.
             103          (9) "Cash bar" means the service of an alcoholic beverage:
             104          (a) at:
             105          (i) a banquet; or
             106          (ii) a temporary event for which a permit is issued under this title; and
             107          (b) if an attendee at the banquet or temporary event is charged for the alcoholic
             108      beverage.
             109          (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             110      a bus company to a group of persons pursuant to a common purpose:
             111          (a) under a single contract;
             112          (b) at a fixed charge in accordance with the bus company's tariff; and
             113          (c) for the purpose of giving the group of persons the exclusive use of the passenger
             114      bus, coach, or other motor vehicle and a driver to travel together to one or more specified
             115      destinations.
             116          (11) "Church" means a building:
             117          (a) set apart for the purpose of worship;
             118          (b) in which religious services are held;
             119          (c) with which clergy is associated; and
             120          (d) which is tax exempt under the laws of this state.


             121          (12) "Club" and "private club" means any of the following organized primarily for the
             122      benefit of its members:
             123          (a) a social club;
             124          (b) a recreational association;
             125          (c) a fraternal association;
             126          (d) an athletic association; or
             127          (e) a kindred association.
             128          (13) "Commission" means the Alcoholic Beverage Control Commission.
             129          (14) "Community location" means:
             130          (a) a public or private school;
             131          (b) a church;
             132          (c) a public library;
             133          (d) a public playground; or
             134          (e) a public park.
             135          (15) "Community location governing authority" means:
             136          (a) the governing body of the community location; or
             137          (b) if the commission does not know who is the governing body of a community
             138      location, a person who appears to the commission to have been given on behalf of the
             139      community location authority to prohibit an activity at the community location.
             140          (16) "Department" means the Department of Alcoholic Beverage Control.
             141          (17) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
             142      title:
             143          (a) against:
             144          (i) a permittee;
             145          (ii) a licensee;
             146          (iii) a manufacturer;
             147          (iv) a supplier;
             148          (v) an importer;
             149          (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
             150      or
             151          (vii) an officer, employee, or agent of:


             152          (A) a person listed in Subsections (17)(a)(i) through (vi); or
             153          (B) a package agent; and
             154          (b) that is brought on the basis of a violation of this title.
             155          (18) "Director," unless the context requires otherwise, means the director appointed
             156      under Section 32A-1-108 .
             157          (19) "Distressed merchandise" means an alcoholic beverage in the possession of the
             158      department that is saleable, but for some reason is unappealing to the public.
             159          (20) "Flavored malt beverage" means a beverage:
             160          (a) that contains at least .5% alcohol by volume;
             161          (b) that is treated by processing, filtration, or another method of manufacture that is not
             162      generally recognized as a traditional process in the production of a beer as described in 27
             163      C.F.R. Sec. 25.55;
             164          (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
             165      extract; and
             166          (d) (i) for which the producer is required to file a formula for approval with the United
             167      States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             168          (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             169          (21) "Guest" means a person accompanied by an active member or visitor of a club
             170      who enjoys only those privileges derived from the host for the duration of the visit to the club.
             171          (22) (a) "Heavy beer" means a product that:
             172          (i) contains more than 4% alcohol by volume; and
             173          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             174          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             175          (23) "Hosted bar" means the service of an alcoholic beverage:
             176          (a) without charge; and
             177          (b) at a:
             178          (i) banquet; or
             179          (ii) privately hosted event.
             180          (24) "Identification card" means an identification card issued under Title 53, Chapter 3,
             181      Part 8, Identification Card Act.
             182          (25) "Interdicted person" means a person to whom the sale, gift, or provision of an


             183      alcoholic beverage is prohibited by:
             184          (a) law; or
             185          (b) court order.
             186          (26) "Intoxicated" means that [to a degree that is unlawful under Section 76-9-701 ] a
             187      person [is under the influence of]:
             188          (a) is significantly impaired as to the person's mental or physical functions as a result of
             189      the use of:
             190          [(a)] (i) an alcoholic beverage;
             191          [(b)] (ii) a controlled substance;
             192          [(c)] (iii) a substance having the property of releasing toxic vapors; or
             193          [(d)] (iv) a combination of Subsections (26)(a)(i) through [(c).] (iii); H. [ or ] and .H
             194          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             195      signs produced by the over consumption of an alcoholic beverage.

             196          (27) "Licensee" means a person issued a license by the commission to sell,
             197      manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
             198      controlled by the person.
             199          (28) "Limousine" means a motor vehicle licensed by the state or a local authority, other
             200      than a bus or taxicab:
             201          (a) in which the driver and a passenger are separated by a partition, glass, or other
             202      barrier; and
             203          (b) that is provided by a company to one or more individuals at a fixed charge in
             204      accordance with the company's tariff for the purpose of giving the one or more individuals the
             205      exclusive use of the limousine and a driver to travel to one or more specified destinations.
             206          (29) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous, fermented, malt,
             207      or other liquid, or combination of liquids, a part of which is spirituous, vinous, or fermented, or
             208      other drink, or drinkable liquid that:
             209          (A) contains at least .5% alcohol by volume; and
             210          (B) is suitable to use for beverage purposes.
             211          (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
             212          (b) "Liquor" does not include a beverage defined as a beer.
             213          (30) "Local authority" means:


             214          (a) the governing body of the county if the premises are located in an unincorporated
             215      area of a county; or
             216          (b) the governing body of the city or town if the premises are located in an incorporated
             217      city or a town.
             218          (31) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
             219      otherwise make an alcoholic product for personal use or for sale or distribution to others.
             220          (32) "Member" means a person who, after paying regular dues, has full privileges of a
             221      club under this title.
             222          (33) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
             223      or homeport facility for a ship:
             224          (i) (A) under the control of the United States Department of Defense; or
             225          (B) of the National Guard;
             226          (ii) that is located within the state; and
             227          (iii) including a leased facility.
             228          (b) "Military installation" does not include a facility used primarily for:
             229          (i) civil works;
             230          (ii) a rivers and harbors project; or
             231          (iii) a flood control project.
             232          (34) "Minor" means an individual under the age of 21 years.
             233          (35) "Nude," "nudity," or "state of nudity" means:
             234          (a) the appearance of:
             235          (i) the nipple or areola of a female human breast;
             236          (ii) a human genital;
             237          (iii) a human pubic area; or
             238          (iv) a human anus; or
             239          (b) a state of dress that fails to opaquely cover:
             240          (i) the nipple or areola of a female human breast;
             241          (ii) a human genital;
             242          (iii) a human pubic area; or
             243          (iv) a human anus.
             244          (36) "Outlet" means a location other than a state store or package agency where an


             245      alcoholic beverage is sold pursuant to a license issued by the commission.
             246          (37) "Package" means any of the following containing liquor:
             247          (a) a container;
             248          (b) a bottle;
             249          (c) a vessel; or
             250          (d) other receptacle.
             251          (38) "Package agency" means a retail liquor location operated:
             252          (a) under a contractual agreement with the department; and
             253          (b) by a person:
             254          (i) other than the state; and
             255          (ii) who is authorized by the commission to sell package liquor for consumption off the
             256      premises of the package agency.
             257          (39) "Package agent" means a person permitted by the commission to operate a
             258      package agency pursuant to a contractual agreement with the department to sell liquor from
             259      premises that the package agent shall provide and maintain.
             260          (40) "Permittee" means a person issued a permit by the commission to perform an act
             261      or exercise a privilege as specifically granted in the permit.
             262          (41) "Person" means an individual, partnership, firm, corporation, limited liability
             263      company, association, business trust, or other form of business enterprise, including a receiver
             264      or trustee, and the plural as well as the singular number, unless the intent to give a more limited
             265      meaning is disclosed by the context.
             266          (42) "Premises" means a building, enclosure, room, or equipment used in connection
             267      with the sale, storage, service, manufacture, distribution, or consumption of an alcoholic
             268      product, unless otherwise defined in this title or in the rules adopted by the commission.
             269          (43) "Prescription" means a writing in legal form, signed by a physician or dentist and
             270      given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             271          (44) (a) "Privately hosted event" or "private social function" means a specific social,
             272      business, or recreational event:
             273          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             274      group; and
             275          (ii) that is limited in attendance to people who are specifically designated and their


             276      guests.
             277          (b) "Privately hosted event" and "private social function" does not include an event to
             278      which the general public is invited, whether for an admission fee or not.
             279          (45) (a) "Proof of age" means:
             280          (i) an identification card;
             281          (ii) an identification that:
             282          (A) is substantially similar to an identification card;
             283          (B) is issued in accordance with the laws of a state other than Utah in which the
             284      identification is issued;
             285          (C) includes date of birth; and
             286          (D) has a picture affixed;
             287          (iii) a valid driver license certificate that:
             288          (A) includes date of birth;
             289          (B) has a picture affixed; and
             290          (C) is issued:
             291          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             292          (II) in accordance with the laws of the state in which it is issued;
             293          (iv) a military identification card that:
             294          (A) includes date of birth; and
             295          (B) has a picture affixed; or
             296          (v) a valid passport.
             297          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             298      Section 53-3-207 .
             299          (46) (a) "Public building" means a building or permanent structure owned or leased by
             300      the state, a county, or local government entity that is used for:
             301          (i) public education;
             302          (ii) transacting public business; or
             303          (iii) regularly conducting government activities.
             304          (b) "Public building" does not mean or refer to a building owned by the state or a
             305      county or local government entity when the building is used by a person, in whole or in part,
             306      for a proprietary function.


             307          (47) "Representative" means an individual who is compensated by salary, commission,
             308      or other means for representing and selling an alcoholic beverage product of a manufacturer,
             309      supplier, or importer of liquor including:
             310          (a) wine;
             311          (b) heavy beer; or
             312          (c) [on or after October 1, 2008,] a flavored malt beverage.
             313          (48) "Residence" means a person's principal place of abode within Utah.
             314          (49) "Restaurant" means a business establishment:
             315          (a) where a variety of foods is prepared and complete meals are served to the general
             316      public;
             317          (b) located on a premises having adequate culinary fixtures for food preparation and
             318      dining accommodations; and
             319          (c) that is engaged primarily in serving meals to the general public.
             320          (50) "Retailer" means a person engaged in the sale or distribution of an alcoholic
             321      beverage to a consumer.
             322          (51) (a) "Sample" includes:
             323          (i) a department sample; and
             324          (ii) an industry representative sample.
             325          (b) "Department sample" means liquor that is placed in the possession of the
             326      department for testing, analysis, and sampling including:
             327          (i) wine;
             328          (ii) heavy beer; or
             329          (iii) [on or after October 1, 2008,] a flavored malt beverage.
             330          (c) "Industry representative sample" means liquor that is placed in the possession of the
             331      department:
             332          (i) for testing, analysis, and sampling by a local industry representative on the premises
             333      of the department to educate the local industry representative of the quality and characteristics
             334      of the product; and
             335          (ii) including:
             336          (A) wine;
             337          (B) heavy beer; or


             338          (C) [on or after October 1, 2008,] a flavored malt beverage.
             339          (52) (a) "School" means a building used primarily for the general education of minors.
             340          (b) "School" does not include:
             341          (i) a nursery school;
             342          (ii) an infant day care center; or
             343          (iii) a trade or technical school.
             344          (53) "Sell," "sale," and "to sell" means a transaction, exchange, or barter whereby, for
             345      consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
             346      ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
             347      done by a person as a principal, proprietor, or as an agent, servant, or employee, unless
             348      otherwise defined in this title or the rules made by the commission.
             349          (54) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
             350      which opaque clothing covers no more than:
             351          (a) the nipple and areola of the female human breast in a shape and color other than the
             352      natural shape and color of the nipple and areola; and
             353          (b) the human genitals, pubic area, and anus:
             354          (i) with no less than the following at its widest point:
             355          (A) four inches coverage width in the front of the human body; and
             356          (B) five inches coverage width in the back of the human body; and
             357          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             358          (55) "Sexually oriented entertainer" means a person who while in a state of seminudity
             359      appears at or performs:
             360          (a) for the entertainment of one or more patrons;
             361          (b) on the premises of:
             362          (i) a class D private club as defined in Subsection 32A-5-101 (3); or
             363          (ii) a tavern;
             364          (c) on behalf of or at the request of the licensee described in Subsection (55)(b);
             365          (d) on a contractual or voluntary basis; and
             366          (e) whether or not the person is designated:
             367          (i) an employee of the licensee described in Subsection (55)(b);
             368          (ii) an independent contractor of the licensee described in Subsection (55)(b);


             369          (iii) an agent of the licensee described in Subsection (55)(b); or
             370          (iv) otherwise of the licensee described in Subsection (55)(b).
             371          (56) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
             372      beer, heavy beer, and flavored malt beverages per year.
             373          (57) (a) "Spirituous liquor" means liquor that is distilled.
             374          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             375      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             376          (58) (a) "State label" means the official label designated by the commission affixed to a
             377      liquor container sold in the state.
             378          (b) "State label" includes the department identification mark and inventory control
             379      number.
             380          (59) (a) "State store" means a facility for the sale of package liquor:
             381          (i) located on premises owned or leased by the state; and
             382          (ii) operated by a state employee.
             383          (b) "State store" does not apply to a:
             384          (i) licensee;
             385          (ii) permittee; or
             386          (iii) package agency.
             387          (60) "Supplier" means a person selling an alcoholic beverage to the department.
             388          (61) (a) "Tavern" means a business establishment that is:
             389          (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
             390      establishment's premises; and
             391          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             392          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             393      revenue of the sale of food, although food need not be sold in the establishment:
             394          (i) a beer bar;
             395          (ii) a parlor;
             396          (iii) a lounge;
             397          (iv) a cabaret; or
             398          (v) a nightclub.
             399          (62) "Temporary domicile" means the principal place of abode within Utah of a person


             400      who does not have a present intention to continue residency within Utah permanently or
             401      indefinitely.
             402          (63) "Unsaleable liquor merchandise" means merchandise that:
             403          (a) is unsaleable because the merchandise is:
             404          (i) unlabeled;
             405          (ii) leaky;
             406          (iii) damaged;
             407          (iv) difficult to open; or
             408          (v) partly filled;
             409          (b) is in a container:
             410          (i) having faded labels or defective caps or corks;
             411          (ii) in which the contents are:
             412          (A) cloudy;
             413          (B) spoiled; or
             414          (C) chemically determined to be impure; or
             415          (iii) that contains:
             416          (A) sediment; or
             417          (B) a foreign substance; or
             418          (c) is otherwise considered by the department as unfit for sale.
             419          (64) "Visitor" means an individual that in accordance with Section 32A-5-107 holds
             420      limited privileges in a private club by virtue of a visitor card.
             421          (65) "Warehouser" means a person, other than a licensed manufacturer, engaged in the
             422      importation for sale, storage, or distribution of liquor regardless of amount.
             423          (66) (a) "Wholesaler" means a person engaged in the importation for sale, or in the sale
             424      of beer in wholesale or jobbing quantities to one or more retailers.
             425          (b) Notwithstanding Subsection (66)(a), "wholesaler" does not include a small brewer
             426      selling beer manufactured by that brewer.
             427          (67) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
             428      natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
             429      another ingredient is added.
             430          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise


             431      provided in this title.
             432          Section 2. Section 32A-1-119 is amended to read:
             433           32A-1-119. Disciplinary proceedings -- Procedure.
             434          (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
             435      final [unappealable] judgment or order is issued[.] that:
             436          (a) is not appealed, and the time to appeal the judgment has expired; or
             437          (b) is appealed, and is affirmed, in whole or in part, on appeal.
             438          (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
             439      proceeding to inquire into a matter necessary and proper for the administration of this title and
             440      rules adopted under this title:
             441          (i) the commission;
             442          (ii) a hearing examiner appointed by the commission for the purposes provided in
             443      Subsection 32A-1-107 (3);
             444          (iii) the director; and
             445          (iv) the department.
             446          (b) Except as provided in this section or Section 32A-3-106 , the following shall
             447      comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
             448      Procedures Act, in an adjudicative proceeding:
             449          (i) the commission;
             450          (ii) a hearing examiner appointed by the commission;
             451          (iii) the director; and
             452          (iv) the department.
             453          (c) Except where otherwise provided by law, an adjudicative proceeding before the
             454      commission or a hearing examiner appointed by the commission shall be:
             455          (i) video or audio recorded; and
             456          (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
             457      Open and Public Meetings Act.
             458          (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
             459      concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
             460      Personnel Management Act.
             461          (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be


             462      conducted in accordance with rules, policies, and procedures made by the commission,
             463      director, or department.
             464          (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
             465      under the authority of the commission, which is responsible for rendering a final decision and
             466      order on a disciplinary matter.
             467          (b) (i) Nothing in this section precludes the commission from appointing a necessary
             468      officer, including a hearing examiner, from within or without the department, to administer the
             469      disciplinary proceeding process.
             470          (ii) A hearing examiner appointed by the commission:
             471          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             472          (B) shall submit to the commission a report including:
             473          (I) findings of fact determined on the basis of a preponderance of the evidence
             474      presented at the hearing;
             475          (II) conclusions of law; and
             476          (III) recommendations.
             477          (c) Nothing in this section precludes the commission, after the commission renders its
             478      final decision and order, from having the director prepare, issue, and cause to be served on the
             479      parties the final written order on behalf of the commission.
             480          (4) Subject to Section 32A-1-119.5 :
             481          (a) The department may initiate a disciplinary proceeding described in Subsection
             482      (4)(b) if the department receives:
             483          (i) a report from a government agency, peace officer, examiner, or investigator alleging
             484      that a person listed in Subsections 32A-1-105 (17)(a)(i) through (vii) violated this title or the
             485      rules of the commission;
             486          (ii) a final adjudication of criminal liability against a person listed in Subsections
             487      32A-1-105 (17)(a)(i) through (vii) based on an alleged violation of this title; or
             488          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             489      Liability, against a person listed in Subsections 32A-1-105 (17)(a)(i) through (vii) based on an
             490      alleged violation of this title.
             491          (b) The department may initiate a disciplinary proceeding if the department receives an
             492      item listed in Subsection (4)(a) to determine:


             493          (i) whether a person listed in Subsections 32A-1-105 (17)(a)(i) through (vii) violated
             494      this title or rules of the commission; and
             495          (ii) if a violation is found, the appropriate sanction to be imposed.
             496          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             497          (i) if required by law;
             498          (ii) before revoking or suspending a permit, license, or certificate of approval issued
             499      under this title; or
             500          (iii) before imposing a fine against a person listed in Subsections 32A-1-105 (17)(a)(i)
             501      through (vii).
             502          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
             503      hearing after receiving proper notice is an admission of the charged violation.
             504          (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
             505      attend or remain in attendance.
             506          (d) The commission or an appointed hearing examiner shall preside over a disciplinary
             507      proceeding hearing.
             508          (e) A disciplinary proceeding hearing may be closed only after the commission or
             509      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             510      outweighed by factors enumerated in the closure order.
             511          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             512      hearing may:
             513          (A) administer oaths or affirmations;
             514          (B) take evidence;
             515          (C) take a deposition within or without this state; and
             516          (D) require by subpoena from a place within this state:
             517          (I) the testimony of a person at a hearing; and
             518          (II) the production of a book, record, paper, contract, agreement, document, or other
             519      evidence considered relevant to the inquiry.
             520          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             521      produce a book, paper, document, or tangible thing as required in the subpoena.
             522          (iii) A witness subpoenaed or called to testify or produce evidence who claims a
             523      privilege against self-incrimination may not be compelled to testify, but the commission or the


             524      hearing examiner shall file a written report with the county attorney or district attorney in the
             525      jurisdiction where the privilege is claimed or where the witness resides setting forth the
             526      circumstance of the claimed privilege.
             527          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             528          (B) A district court within the judicial district in which a person alleged to be guilty of
             529      willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
             530      the party issuing the subpoena, may issue an order requiring the person to:
             531          (I) appear before the issuing party; and
             532          (II) (Aa) produce documentary evidence if so ordered; or
             533          (Bb) give evidence regarding the matter in question.
             534          (C) Failure to obey an order of the court may be punished by the court as contempt.
             535          (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
             536      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             537          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             538      recommend a penalty more severe than that initially sought by the department in the notice of
             539      agency action.
             540          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             541      shall be served upon the respective parties.
             542          (iv) The respondent and the department shall be given reasonable opportunity to file a
             543      written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             544      before final commission action.
             545          (h) In a case heard by the commission, it shall issue its final decision and order in
             546      accordance with Subsection (3).
             547          (6) (a) The commission shall:
             548          (i) render a final decision and order on a disciplinary action; and
             549          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
             550          (b) An order of the commission is [considered] final on the date the order [becomes
             551      effective] is issued.
             552          (c) If the commission is satisfied that a person listed in Subsections
             553      32A-1-105 (17)(a)(i) through (vii) violated this title or the commission's rules, in accordance
             554      with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:


             555          (i) suspend or revoke the permit, license, or certificate of approval;
             556          (ii) impose a fine against a person listed in Subsections 32A-1-105 (17)(a)(i) through
             557      (vii);
             558          (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
             559      licensee, or certificate holder; or
             560          (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
             561          (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
             562      32A-1-107 (1)(p) and (4).
             563          (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
             564      licensee shall prominently post a sign provided by the department:
             565          (A) during the suspension; and
             566          (B) at the entrance of the premises of the permittee or licensee.
             567          (ii) The sign required by this Subsection (6)(e) shall:
             568          (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
             569      alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
             570      sold, served, furnished, or consumed on these premises during the period of suspension."; and
             571          (B) include the dates of the suspension period.
             572          (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
             573      to be posted under this Subsection (6)(e) during the suspension period.
             574          (f) If a permit or license is revoked, the commission may order the revocation of a
             575      compliance bond posted by the permittee or licensee.
             576          (g) A permittee or licensee whose permit or license is revoked may not reapply for a
             577      permit or license under this title for three years from the date on which the permit or license is
             578      revoked.
             579          (h) The commission shall transfer all costs assessed into the General Fund in
             580      accordance with Section 32A-1-113 .
             581          (7) Subject to Section 32A-1-119.5 :
             582          (a) In addition to an action taken against a permittee, licensee, or certificate holder
             583      under this section, the department may initiate disciplinary action against an officer, employee,
             584      or agent of a permittee, licensee, or certificate holder.
             585          (b) If an officer, employee, or agent is found to have violated this title, the commission


             586      may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
             587      wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
             588      officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
             589      period determined by the commission.
             590          (8) Subject to Section 32A-1-119.5 :
             591          (a) The department may initiate a disciplinary proceeding for an alleged violation of
             592      this title or the rules of the commission against:
             593          (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
             594          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             595      (8)(a)(i).
             596          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             597      commission may, in addition to other penalties prescribed by this title, order:
             598          (A) the removal of the manufacturer's, supplier's, or importer's one or more products
             599      from the department's sales list; and
             600          (B) a suspension of the department's purchase of the one or more products described in
             601      Subsection (8)(b)(i)(A) for a period determined by the commission.
             602          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             603          (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
             604      beverage, or its officer, employee, agent, or representative violates this title; and
             605          (B) the manufacturer, supplier, or importer:
             606          (I) directly commits the violation; or
             607          (II)     solicits, requests, commands, encourages, or intentionally aids another to engage
             608      in the violation.
             609          (9) Subject to Section 32A-1-119.5 :
             610          (a) The department may initiate a disciplinary proceeding against a brewer holding a
             611      certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
             612      of the commission.
             613          (b) If the commission makes a finding that the brewer holding a certificate of approval
             614      violates this title or rules of the commission, the commission may take an action against the
             615      brewer holding a certificate of approval that the commission could take against a licensee
             616      including:


             617          (i) suspension or revocation of the certificate of approval; and
             618          (ii) imposition of a fine.
             619          (10) (a) An adjudicative proceeding under this title, including a disciplinary
             620      proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is
             621      a violation of statute that can be prosecuted criminally.

             622          (b) Unless specifically adopted in this title, a procedure or principal that is applicable
             623      to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title
             624      including:

             625          (i) Title 76, Chapter 1, General Provisions;
             626          (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
             627          (iii) Title 76, Chapter 3, Punishments; and
             628          (iv) Title 76, Chapter 4, Inchoate Offenses.
             629          (c) (i) The burden of proof in an adjudicative proceeding under this title is by a
             630      preponderance of the evidence.

             631          (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative
             632      defense, the subject has the burden of proof to establish the affirmative defense by the
             633      preponderance of the evidence.

             634          (d) In an adjudicative proceeding under this title, to find a violation of this title the
             635      commission:

             636          (i) is required to determine whether the conduct that constitutes the violation occurred;
             637      and

             638          (ii) is not required to make a finding of knowledge or intent unless knowledge or intent
             639      is expressly made an element of the violation by statute.

             640          [(10)] (11) (a) If a respondent requests a disciplinary proceeding hearing, the hearing
             641      held by the commission or a hearing examiner appointed by the commission shall proceed
             642      formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
             643          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             644      and welfare;
             645          (ii) the alleged violation involves:
             646          (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
             647          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and


             648      Entertainment Act;
             649          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             650      of the respondent;
             651          (D) interfering or refusing to cooperate with:
             652          (I) an authorized official of the department or the state in the discharge of the official's
             653      duties in relation to the enforcement of this title; or
             654          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             655      enforcement of this title;
             656          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             657          (F) unlawful importation of an alcoholic product; or
             658          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             659      32A-12-601 (2), to a person other than the department or a military installation, except to the
             660      extent permitted by this title; or
             661          (iii) the department determines to seek in a disciplinary proceeding hearing:
             662          (A) an administrative fine exceeding $3,000;
             663          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             664      or
             665          (C) a revocation of a license, permit, or certificate of approval.
             666          (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall
             667      proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by
             668      the commission in accordance with Subsection (11)(c).
             669          [(b)] (c) The commission shall make rules in accordance with Title 63G, Chapter 3,
             670      Utah Administrative Rulemaking Act, to provide a procedure to implement this Subsection
             671      [(10)] (11).
             671a           H. (12) Notwithstanding the other provisions of this title, the commission may not
             671b      order a disciplinary action or fine in accordance with this section if the disciplinary action or
             671c      fine is ordered on the basis of a violation:
             671d          (a) of a provision in this title related to intoxication or becoming intoxicated; and
             671e          (b) if the violation is first investigated by a law enforcement officer, as defined in
             671f      Section 53-13-103, who has not received training regarding the requirements of this title
             671g      related to responsible alcoholic beverage sale or service. .H
             672          Section 3. Section 32A-12-101 is amended to read:
             673           32A-12-101. Utah Criminal Code applicable.
             674          Except as otherwise provided, Title 76, Chapters 1, 2, 3, and 4[, the Utah Criminal
             675      Code, relating to principles of construction, jurisdiction, venue, limitations of actions, multiple
             676      prosecutions, double jeopardy, burdens of proof, definitions, principles of criminal
             677      responsibility, punishments, and inchoate offenses apply to any criminal offense defined in this
             678      title, except as otherwise provided] apply to the prosecution of a criminal offense defined in


             679      this chapter or expressly identified as a criminal offense in this title.
             679a           H. Section 4. Section 32A-12-102 is amended to read:
             679b           32A-12-102.   Special burdens of proof -- Inferences and presumptions.
             679c          (1) In any prosecution of an offense defined in this title or in any proceeding brought to
             679d      enforce this title:
             679e          (a) it is not necessary that the state or commission establish the precise description or quantity
             679f      of the alcoholic beverages or products or the precise consideration, if any, given or received for the
             679g      alcoholic beverages or products;
             679h          (b) there is an inference, absent proof to the contrary, that the alcoholic beverage or product
             679i      in question is an alcoholic beverage or product if the witness describes it:
             679j          (i) as an alcoholic beverage or product;
             679k          (ii) by a name that is commonly applied to an alcoholic beverage or product; or
             679l          (iii) as intoxicating;
             679m          (c) if it is alleged that an association or corporation has violated this title, the fact of the
             679n      incorporation of the association or corporation is presumed absent proof to the contrary;
             679o          (d) a certificate or report signed or purporting to be signed by any state chemist, assistant
             679p      state chemist, or state crime laboratory chemist, as to the analysis or ingredients of any alcoholic
             679q      beverage or product is:
             679r          (i) prima facie evidence:
             679s          (A) of the facts stated in that certificate or report; and
             679t          (B) of the authority of the person giving or making the report; and
             679u          (ii) admissible in evidence without any proof of appointment or signature absent proof to the
             679v      contrary; and
             679w          (e) a copy of entries made in the records of the United States internal revenue collector,
             679x      certified by the collector or a qualified notary public, showing the payment of the United States
             679y      internal revenue special tax for the manufacture or sale of alcoholic beverages or products is prima
             679z      facie evidence of the manufacture or sale by the party named in the entry within the period set forth in
             679aa      the record.
             679ab          (2) (a) In proving the unlawful sale, disposal, gift, or purchase, gratuitous or otherwise, or
             679ac      consumption of alcoholic beverages or products, it is not necessary that the state or commission
             679ad      establish that any money or other consideration actually passed or that an alcoholic beverage or
             679ae      product was actually consumed if the court or trier of fact is satisfied that:
             679af          (i) a transaction in the nature of a sale, disposal, gift, or purchase actually occurred; or
             679ag          (ii) any consumption of alcoholic beverages or products was about to occur.
             679ah          (b) Proof of consumption or intended consumption of an alcoholic beverage or product on
             679ai      premises on which consumption is prohibited, by some person not authorized to consume alcoholic


             679aj      beverages or products on those premises, is evidence that an alcoholic beverage or product was sold


             679ak      or given to or purchased by the person consuming, about to consume, or carrying away the alcoholic
             679al      beverage or product as against the occupant of the premises.
             679am          (3) Notwithstanding the other provisions of this chapter, a criminal offense identified in
             679an      this title as a criminal offence may not be enforced under this chapter if the criminal offense
             679ao      relates to a violation:
             679ap          (a) of a provision in this title related to intoxication or becoming intoxicated; and
             679aq          (b) if the violation is first investigated by a law enforcement officer, as defined in
             679ar      Section 53-13-103, who has not received training regarding the requirements of this title
             679as      related to responsible alcoholic beverage sale or service. .H
             680          Section H. [ 4 ] 5 .H . Section 32A-12-104 is amended to read:
             681           32A-12-104. Violation of title a misdemeanor.
             682          [Any] (1) Unless otherwise provided in this title, a person [who violates this title] is
             683      guilty of a class B misdemeanor[, unless otherwise provided in this title.] if that person
             684      violates:
             685          (a) this chapter; or
             686          (b) a provision of this title that is expressly identified as a criminal offense.
             687          (2) This section is not applicable to an adjudicative proceeding under Section
             688      32A-1-119 , but only:
             689          (a) makes a violation described in Subsection (1) a criminal offense; and
             690          (b) establishes a penalty for a violation described in Subsection (1) that is prosecuted
             691      criminally.




Legislative Review Note
    as of 2-27-09 10:17 AM


Office of Legislative Research and General Counsel


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