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H.B. 51






Chief Sponsor: Christine A. Johnson

Senate Sponsor: Dennis E. Stowell

             8      LONG TITLE
             9      Committee Note:
             10          The Business and Labor Interim Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Alcoholic Beverage Control Act to address exemptions from
             13      manufacturing license requirements.
             14      Highlighted Provisions:
             15          This bill:
             16          .    defines terms;
             17          .    creates an exemption from licensure for a fermented beverage manufactured in an
             18      individual's personal residence;
             19          .    allows storage and transportation; and
             20          .    makes technical amendments.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          32A-8-101, as last amended by Laws of Utah 2008, Chapter 391

             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 32A-8-101 is amended to read:
             31           32A-8-101. Commission's power to grant licenses -- Limitations.
             32          (1) The commission may issue an alcoholic beverage manufacturing license to a
             33      manufacturer whose business [in this state] is located in this state for the manufacture, storage,
             34      and sale of alcoholic beverages for each type of license provided by this chapter.
             35          (2) The type of manufacturing licenses issued under this chapter are known as a:
             36          (a) winery license;
             37          (b) distillery license; and
             38          (c) brewery license.
             39          (3) (a) [A] Except as provided in Subsection (6), a person may not manufacture an
             40      alcoholic beverage unless an alcoholic beverage manufacturing license is issued by the
             41      commission.
             42          (b) A separate license is required for each place of manufacture, storage, and sale of an
             43      alcoholic beverage.
             44          (c) Violation of this Subsection (3) is a class B misdemeanor.
             45          (4) (a) A brewer located outside the state is not required to be licensed under this
             46      chapter.
             47          (b) A brewer described in Subsection (4)(a) must obtain a certificate of approval from
             48      the department before selling or delivering:
             49          (i) beer to a licensed beer wholesaler in this state;
             50          (ii) [on or after October 1, 2008,] a flavored malt beverage to the department or a
             51      military installation; or
             52          (iii) if a small brewer, beer to a licensed beer wholesaler or retailer in this state.
             53          (c) A brewer seeking a certificate of approval shall file a written application with the
             54      department, in a form prescribed by the department. The application shall be accompanied by:
             55          (i) a nonrefundable $50 application fee;
             56          (ii) an initial certificate of approval fee of $250 that is refundable if a certificate is not
             57      granted;
             58          (iii) evidence of authority from the United States Bureau of Alcohol, Tobacco, and

             59      Firearms to brew beer, heavy beer, or a flavored malt beverage; and
             60          (iv) any other information or documents the department may require.
             61          (d) (i) An application shall be signed and verified by oath or affirmation by:
             62          (A) a partner if the brewer is a partnership; or
             63          (B) an executive officer, manager, or person specifically authorized by a corporation or
             64      limited liability company to sign the application.
             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          (e) (i) All certificates of approval expire on December 31 of each year.
             68          (ii) A brewer desiring to renew its certificate shall submit a renewal fee of $200, and a
             69      completed renewal application to the department no later than November 30 of the year the
             70      certificate expires.
             71          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             72      certificate effective on the date the existing certificate expires.
             73          (iv) A renewal application shall be in a form prescribed by the department.
             74          (5) The commission may prescribe by policy, directive, or rule, consistent with this
             75      title, the general operational requirements of licensees relating to:
             76          (a) physical facilities;
             77          (b) conditions of sale, storage, or manufacture of alcoholic beverages;
             78          (c) storage and sales quantity limitations; and
             79          (d) other matters considered appropriate by the commission.
             80          (6) (a) As used in this Subsection (6), "fermented alcoholic beverage" means:
             81          (i) beer;
             82          (ii) heavy beer; or
             83          (iii) wine.
             84          (b) An individual may without being licensed under this chapter manufacture in the
             85      individual's personal residence a fermented alcoholic beverage if:
             86          (i) the individual is 21 years of age or older;
             87          (ii) the individual manufactures no more than:
             88          (A) 100 gallons in a calendar year, if there is one individual that is 21 years of age or
             89      older residing in the household; or

             90          (B) 200 gallons in a calendar year, if there are two or more individuals who are 21
             91      years of age or older residing in the household;
             92          (iii) the fermented alcoholic beverage is manufactured and used for:
             93          (A) personal or family use and consumption; or
             94          (B) an organized event where fermented alcoholic beverages are judged as to taste and
             95      quality; and
             96          (iv) the fermented alcoholic beverage is not for:
             97          (A) sale or offering for sale; or
             98          (B) consumption on a premise licensed by the commission.
             99          (c) An individual may store a fermented alcoholic beverage manufactured as provided
             100      in Subsection (6)(b) in the individual's personal residence.
             101          (d) A fermented alcoholic beverage manufactured in accordance with Subsection (6)(b)
             102      may be removed from the premises where it is manufactured:
             103          (i) for personal or family use, including use at an organized event where fermented
             104      alcoholic beverages are judged as to taste and quality; and
             105          (ii) if the fermented alcoholic beverage is transported in compliance with Section
             106      41-6a-526 .

Legislative Review Note
    as of 11-20-08 4:16 PM

Office of Legislative Research and General Counsel

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