2
3
4
5
6
7
8 LONG TITLE
9 General Description:
10 This bill amends provisions related to state licensing of off-premise beer retailers.
11 Highlighted Provisions:
12 This bill:
13 ▸ creates a conditional off-premise beer retailer state license that conditions the
14 holder's ability to purchase, store, or sell beer on the holder obtaining a business
15 license;
16 ▸ provides that a conditional off-premise beer retailer state license becomes an
17 off-premise beer retailer state license if, within nine months of obtaining the
18 conditional license, the holder demonstrates that the holder has obtained a business
19 license and continues to meet the other requirements for an off-premise beer retailer
20 state license;
21 ▸ allows the Alcoholic Beverage Control Commission to extend the nine-month
22 deadline by three months, under certain circumstances; and
23 ▸ makes technical and conforming changes.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill provides a special effective date.
28 Utah Code Sections Affected:
29 AMENDS:
30 32B-2-202, as last amended by Laws of Utah 2017, Chapter 455
31 ENACTS:
32 32B-7-406, Utah Code Annotated 1953
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 32B-2-202 is amended to read:
36 32B-2-202. Powers and duties of the commission.
37 (1) The commission shall:
38 (a) consistent with the policy established by the Legislature by statute, act as a general
39 policymaking body on the subject of alcoholic product control;
40 (b) adopt and issue policies, rules, and procedures;
41 (c) set policy by written rules that establish criteria and procedures for:
42 (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
43 permit, or certificate of approval; and
44 (ii) determining the location of a state store, package agency, or retail licensee;
45 (d) decide within the limits, and under the conditions imposed by this title, the number
46 and location of state stores, package agencies, and retail licensees in the state;
47 (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
48 permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
49 consumption, manufacture, and distribution of an alcoholic product:
50 (i) a package agency;
51 (ii) a full-service restaurant license;
52 (iii) a master full-service restaurant license;
53 (iv) a limited-service restaurant license;
54 (v) a master limited-service restaurant license;
55 (vi) a bar establishment license;
56 (vii) an airport lounge license;
57 (viii) an on-premise banquet license;
58 (ix) a resort license, under which at least four or more sublicenses may be included;
59 (x) an on-premise beer retailer license;
60 (xi) a reception center license;
61 (xii) a beer-only restaurant license;
62 (xiii) a hotel license, under which at least three or more sublicenses may be included;
63 (xiv) subject to Subsection (4), a single event permit;
64 (xv) subject to Subsection (4), a temporary beer event permit;
65 (xvi) a special use permit;
66 (xvii) a manufacturing license;
67 (xviii) a liquor warehousing license;
68 (xix) a beer wholesaling license; and
69 (xx) one of the following that holds a certificate of approval:
70 (A) an out-of-state brewer;
71 (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
72 (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
73 (f) [
74 following conditional licenses [
75
76 (i) a conditional retail license as defined in Section 32B-5-205; and
77 (ii) a conditional off-premise beer retailer state license as defined in Section
78 32B-7-406;
79 (g) prescribe the duties of the department in assisting the commission in issuing a
80 package agency, license, permit, or certificate of approval under this title;
81 (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
82 in accordance with Section 63J-1-504;
83 (i) fix prices at which liquor is sold that are the same at all state stores, package
84 agencies, and retail licensees;
85 (j) issue and distribute price lists showing the price to be paid by a purchaser for each
86 class, variety, or brand of liquor kept for sale by the department;
87 (k) (i) require the director to follow sound management principles; and
88 (ii) require periodic reporting from the director to ensure that:
89 (A) sound management principles are being followed; and
90 (B) policies established by the commission are being observed;
91 (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
92 and matters submitted by the director to the commission; and
93 (ii) do the things necessary to support the department in properly performing the
94 department's duties;
95 (m) obtain temporarily and for special purposes the services of an expert or person
96 engaged in the practice of a profession, or a person who possesses a needed skill if:
97 (i) considered expedient; and
98 (ii) approved by the governor;
99 (n) prescribe the conduct, management, and equipment of premises upon which an
100 alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
101 (o) make rules governing the credit terms of beer sales within the state to retail
102 licensees; and
103 (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
104 disciplinary action against a person subject to administrative action.
105 (2) Consistent with the policy established by the Legislature by statute, the power of
106 the commission to do the following is plenary, except as otherwise provided by this title, and
107 not subject to review:
108 (a) establish a state store;
109 (b) issue authority to act as a package agent or operate a package agency; and
110 (c) issue or deny a license, permit, or certificate of approval.
111 (3) If the commission is authorized or required to make a rule under this title, the
112 commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
113 Rulemaking Act.
114 (4) Notwithstanding Subsections (1)(e)(xiv) and (xv), the director or deputy director
115 may issue an event permit in accordance with Chapter 9, Event Permit Act.
116 Section 2. Section 32B-7-406 is enacted to read:
117 32B-7-406. Conditional off-premise beer retailer state license.
118 (1) As used in this section, "conditional off-premise beer retailer state license" means
119 an off-premise beer retailer state license that conditions the holder's ability to purchase, store,
120 sell, or offer for sale beer for consumption off the holder's licensed premises on the holder
121 submitting to the department a copy of the holder's current business license.
122 (2) In accordance with the provisions of this section, the commission may issue a
123 conditional off-premise beer retailer state license to a person if the person:
124 (a) meets the requirements to obtain an off-premise beer retailer state license, except
125 the requirement to submit a copy of the person's current business license; and
126 (b) agrees not to purchase, store, sell, or offer for sale beer for consumption off the
127 person's licensed premises before obtaining an off-premise beer retailer state license.
128 (3) (a) For a conditional off-premise beer retailer state license to become an
129 off-premise beer retailer state license, a person who holds the conditional off-premise beer
130 retailer state license shall:
131 (i) submit to the department a copy of the person's current business license; and
132 (ii) provide to the department evidence satisfactory to the department that:
133 (A) there has been no change in the information submitted to the commission as part of
134 the person's application for an off-premise beer retailer state license; and
135 (B) the person continues to qualify for an off-premise beer retailer state license.
136 (b) A conditional off-premise beer retailer state license becomes an off-premise beer
137 retailer state license on the day on which the department notifies the person who holds the
138 conditional off-premise beer retailer state license that the department finds that the person has
139 complied with Subsection (3)(a).
140 (4) (a) A conditional off-premise beer retailer state license expires nine months after
141 the day on which the commission issues the conditional off-premise beer retailer state license,
142 unless the conditional off-premise beer retailer state license becomes an off-premise beer
143 retailer state license before that day.
144 (b) Notwithstanding Subsection (4)(a), the commission may extend the expiration date
145 of a conditional off-premise beer retailer state license by three months if the holder
146 demonstrates to the satisfaction of the commission that the holder:
147 (i) has an active building permit related to the licensed premises; and
148 (ii) is engaged in a good faith effort to pursue completion within the three-month
149 period.
150 Section 3. Effective date.
151 If approved by two-thirds of all the members elected to each house, this bill takes effect
152 upon approval by the governor, or the day following the constitutional time limit of Utah
153 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
154 the date of veto override.