1     
ALCOHOL WORK REQUIREMENT AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Walt Brooks

5     
Senate Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions of the Alcoholic Beverage Control Act related to
10     employment and licensure requirements.
11     Highlighted Provisions:
12          This bill:
13          ▸     establishes a period of time for which certain criminal convictions disqualify an
14     individual from obtaining employment with the Department of Alcoholic Beverage
15     Control or a license under the Alcoholic Beverage Control Act; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          32B-1-303, as enacted by Laws of Utah 2010, Chapter 276
24          32B-1-304, as enacted by Laws of Utah 2010, Chapter 276
25          32B-1-306, as last amended by Laws of Utah 2011, Chapter 307
26          32B-1-307, as last amended by Laws of Utah 2015, Chapter 351
27          32B-8-501, as enacted by Laws of Utah 2010, Chapter 276
28     

29     Be it enacted by the Legislature of the state of Utah:

30          Section 1. Section 32B-1-303 is amended to read:
31          32B-1-303. Qualifications related to employment with the department.
32          (1) The department may not employ a person if that person has been convicted of:
33          (a) within seven years before the day on which the department employs the person, a
34     felony under a federal law or state law;
35          (b) within four years before the day on which the department employs the person:
36          [(b)] (i) a violation of a federal law, state law, or local ordinance concerning the sale,
37     offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an
38     alcoholic product; or
39          [(c)] (ii) a crime involving moral turpitude; or
40          [(d)] (c) on two or more occasions within the five years before the day on which the
41     department employs the person, driving under the influence of alcohol, drugs, or the combined
42     influence of alcohol and drugs.
43          (2) The director may terminate a department employee or take other disciplinary action
44     consistent with Title 67, Chapter 19, Utah State Personnel Management Act, if:
45          (a) after the day on which the department employs the department employee, the
46     department employee is found to have been convicted of an offense described in Subsection (1)
47     before being employed by the department; or
48          (b) on or after the day on which the department employs the department employee, the
49     department employee:
50          (i) is convicted of an offense described in Subsection (1)(a)[, (b), or (c)] or (b); or
51          (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
52     influence of alcohol and drugs; and
53          (B) was convicted of driving under the influence of alcohol, drugs, or the combined
54     influence of alcohol and drugs within five years before the day on which the person is
55     convicted of the offense described in Subsection (2)(b)(ii)(A).
56          (3) The director may immediately suspend a department employee for the period
57     during which a criminal matter is being adjudicated if the department employee:

58          (a) is arrested on a charge for an offense described in Subsection (1)(a)[, (b), or (c)] or
59     (b); or
60          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
61     drugs, or the combined influence of alcohol and drugs; and
62          (ii) was convicted of driving under the influence of alcohol, drugs, or the combined
63     influence of alcohol and drugs within five years before the day on which the person is arrested
64     on a charge described in Subsection (3)(b)(i).
65          Section 2. Section 32B-1-304 is amended to read:
66          32B-1-304. Qualifications for a package agency, license, or permit -- Minors.
67          (1) (a) The commission may not issue a package agency, license, or permit to a person
68     who has been convicted of:
69          (i) within seven years before the day on which the commission issues the package
70     agency, license, or permit, a felony under a federal law or state law;
71          (ii) within four years before the day on which the commission issues the package
72     agency, license, or permit:
73          [(ii)] (A) a violation of a federal law, state law, or local ordinance concerning the sale,
74     offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an
75     alcoholic product; or
76          [(iii)] (B) a crime involving moral turpitude; or
77          [(iv)] (iii) on two or more occasions within the five years before the day on which the
78     package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or
79     the combined influence of alcohol and drugs.
80          (b) If the person is a partnership, corporation, or limited liability company, the
81     proscription under Subsection (1)(a) applies if any of the following has been convicted of an
82     offense described in Subsection (1)(a):
83          (i) a partner;
84          (ii) a managing agent;
85          (iii) a manager;

86          (iv) an officer;
87          (v) a director;
88          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
89     the corporation; or
90          (vii) a member who owns at least 20% of the limited liability company.
91          (c) The proscription under Subsection (1)(a) applies if a person who is employed to act
92     in a supervisory or managerial capacity for a package agency, licensee, or permittee has been
93     convicted of an offense described in Subsection (1)(a).
94          (2) The commission may immediately suspend or revoke a package agency, license, or
95     permit, and terminate a package agency agreement, if a person described in Subsection (1):
96          (a) after the day on which the package agency, license, or permit is issued, is found to
97     have been convicted of an offense described in Subsection (1)(a) before the package agency,
98     license, or permit is issued; or
99          (b) on or after the day on which the package agency, license, or permit is issued:
100          (i) is convicted of an offense described in Subsection (1)(a)(i)[, (ii), or (iii)] or (ii); or
101          (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
102     influence of alcohol and drugs; and
103          (B) was convicted of driving under the influence of alcohol, drugs, or the combined
104     influence of alcohol and drugs within five years before the day on which the person is
105     convicted of the offense described in Subsection (2)(b)(ii)(A).
106          (3) The director may take emergency action by immediately suspending the operation
107     of the package agency, licensee, or permittee for the period during which a criminal matter is
108     being adjudicated if a person described in Subsection (1):
109          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i)[, (ii), or (iii)]
110     or (ii); or
111          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
112     drugs, or the combined influence of alcohol and drugs; and
113          (ii) was convicted of driving under the influence of alcohol, drugs, or the combined

114     influence of alcohol and drugs within five years before the day on which the person is arrested
115     on a charge described in Subsection (3)(b)(i).
116          (4) (a) (i) The commission may not issue a package agency, license, or permit to a
117     person who has had any type of agency, license, or permit issued under this title revoked within
118     the last three years.
119          (ii) The commission may not issue a package agency, license, or permit to a
120     partnership, corporation, or limited liability company if a partner, managing agent, manager,
121     officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
122     of the corporation, or member who owns at least 20% of the limited liability company is or
123     was:
124          (A) a partner or managing agent of a partnership that had any type of agency, license,
125     or permit issued under this title revoked within the last three years;
126          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
127     of the total issued and outstanding stock of any corporation that had any type of agency,
128     license, or permit issued under this title revoked within the last three years; or
129          (C) a manager or member who owns or owned at least 20% of a limited liability
130     company that had any type of agency, license, or permit issued under this title revoked within
131     the last three years.
132          (b) The commission may not issue a package agency, licence, or permit to a
133     partnership, corporation, or limited liability company if any of the following had any type of
134     agency, license, or permit issued under this title revoked while acting in that person's individual
135     capacity within the last three years:
136          (i) a partner or managing agent of a partnership;
137          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
138     total issued and outstanding stock of a corporation; or
139          (iii) a manager or member who owns at least 20% of a limited liability company.
140          (c) The commission may not issue a package agency, license, or permit to a person
141     acting in an individual capacity if that person was:

142          (i) a partner or managing agent of a partnership that had any type of agency, license, or
143     permit issued under this title revoked within the last three years;
144          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
145     total issued and outstanding stock of a corporation that had any type of agency, license, or
146     permit issued under this title revoked within the last three years; or
147          (iii) a manager or member who owned at least 20% of the limited liability company
148     that had any type of agency, license, or permit issued under this title revoked within the last
149     three years.
150          (5) (a) The commission may not issue a package agency, license, or permit to a minor.
151          (b) The commission may not issue a package agency, license, or permit to a
152     partnership, corporation, or limited liability company if any of the following is a minor:
153          (i) a partner or managing agent of the partnership;
154          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
155     total issued and outstanding stock of the corporation; or
156          (iii) a manager or member who owns at least 20% of the limited liability company.
157          (6) If a package agent, licensee, or permittee no longer possesses the qualifications
158     required by this title for obtaining a package agency, license, or permit, the commission may
159     terminate the package agency agreement, or revoke the license or permit.
160          Section 3. Section 32B-1-306 is amended to read:
161          32B-1-306. Use of information from a criminal background check.
162          The commission or department may use information obtained pursuant to Section
163     32B-1-305 only for one or more of the following purposes:
164          (1) enforcing this title;
165          (2) determining whether an individual is convicted of any of the following offenses
166     that disqualify the individual under this title from acting in a capacity described in Subsection
167     32B-1-305(2):
168          (a) within the previous seven years, a felony under federal law or state law;
169          (b) within the previous four years:

170          [(b)] (i) a violation of a federal law, state law, or local ordinance concerning the sale,
171     offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an
172     alcoholic product; or
173          [(c)] (ii) a crime involving moral turpitude; or
174          [(d)] (c) on two or more occasions within the previous five years, driving under the
175     influence of alcohol, drugs, or the combined influence of alcohol and drugs;
176          (3) determining whether an individual fails to accurately disclose the individual's
177     criminal history on an application or document filed with the department or commission;
178          (4) approving or denying an application for employment with the department;
179          (5) taking disciplinary action against a department employee, including possible
180     termination of employment;
181          (6) issuing or denying an application to operate a package agency;
182          (7) issuing or denying an application for a license;
183          (8) issuing or denying the renewal of a package agency agreement;
184          (9) issuing or denying the renewal of a license;
185          (10) suspending the operation of a package agency;
186          (11) terminating a package agency contract; or
187          (12) suspending or revoking a license.
188          Section 4. Section 32B-1-307 is amended to read:
189          32B-1-307. Background check procedure.
190          (1) (a) An individual described in Subsections 32B-1-305(2)(b) through (e) shall
191     submit to a background check in a form acceptable to the department, including submitting
192     fingerprints, at the expense of the individual.
193          (b) The department shall pay the expense of obtaining a background check, including
194     obtaining fingerprints, required of:
195          (i) an individual applying for employment with the department; or
196          (ii) a department employee.
197          (2) (a) The department shall establish a procedure for obtaining and evaluating relevant

198     information from a criminal history record maintained by the Utah Bureau of Criminal
199     Identification pursuant to Title 53, Chapter 10, Part 2, Bureau of Criminal Identification, for a
200     purpose outlined in Section 32B-1-306.
201          (b) An individual described in Subsections 32B-1-305(2)(b) through (e) shall pay to the
202     department the expense of obtaining the criminal history record described in Subsection (2)(a).
203          (c) The department shall pay the expense of obtaining the criminal history record
204     required for:
205          (i) an individual applying for employment with the department; or
206          (ii) a department employee.
207          (3) (a) The department shall submit fingerprints obtained under Subsection (1) of an
208     individual to the Utah Bureau of Criminal Identification to be forwarded to the Federal Bureau
209     of Investigation for a nationwide criminal history record check.
210          (b) An individual described in Subsections 32B-1-305(2)(b) through (e) shall pay to the
211     department the expense of obtaining the criminal history record described in Subsection (3)(a).
212          (c) The department shall pay the expense of obtaining the criminal history record
213     required for:
214          (i) an individual applying for employment with the department; or
215          (ii) a department employee.
216          (4) (a) The Utah Bureau of Criminal Identification:
217          (i) shall check the fingerprints submitted under Subsection (1) against the applicable
218     state and regional criminal records databases and submit the fingerprints to national criminal
219     records databases;
220          (ii) shall maintain a separate file of fingerprints submitted under Subsection (1) for
221     search by future submissions to the state and regional records databases, including latent prints,
222     and notify the department when a new entry is made against a person whose fingerprints are
223     held in the separate file;
224          (iii) shall release to the department all information received in response to the
225     department's request; and

226          (iv) may request that the fingerprints be retained in the Federal Bureau of Investigation
227     Rap Back system for search by future submissions to national criminal records databases,
228     including latent prints.
229          (b) The department shall establish a privacy risk mitigation strategy to ensure that the
230     department only receives notifications for individuals with whom the department maintains a
231     regulatory or employment relationship.
232          (5) The department shall pay the Utah Bureau of Criminal Identification the costs
233     incurred in providing the department criminal background information.
234          (6) (a) The following may not disseminate a criminal history record obtained under this
235     part to any person except for a purpose described in Section 32B-1-306:
236          (i) the commission;
237          (ii) a commissioner;
238          (iii) the director;
239          (iv) the department; or
240          (v) a department employee.
241          (b) (i) Notwithstanding Subsection (6)(a), a criminal history record obtained under this
242     part may be provided by the department to the individual who is the subject of the criminal
243     history record.
244          (ii) The department shall provide an individual who is the subject of a criminal history
245     record and who requests the criminal history record an opportunity to:
246          (A) review the criminal history record; and
247          (B) respond to information in the criminal history record.
248          (7) If an individual described in Subsection 32B-1-305(2) is determined to be
249     disqualified under Subsection 32B-1-306(2)[(b)], the department shall provide the individual
250     with:
251          (a) notice of the reason for the disqualification; and
252          (b) an opportunity to respond to the disqualification.
253          Section 5. Section 32B-8-501 is amended to read:

254          32B-8-501. Enforcement of qualifications for resort license or sublicense.
255          (1) The commission or department may not take an action described in Subsection (2)
256     with regard to a resort license unless the person who is found not to meet the qualifications of
257     Section 32B-8-203 is one of the following who is engaged in the management of the resort:
258          (a) a partner;
259          (b) a managing agent;
260          (c) a manager;
261          (d) an officer;
262          (e) a director;
263          (f) a stockholder who holds at least 20% of the total issued and outstanding stock of the
264     corporation;
265          (g) a member who owns at least 20% of the limited liability company; or
266          (h) a person employed to act in a supervisory or managerial capacity for the resort
267     licensee.
268          (2) Subsection (1) applies to:
269          (a) the commission immediately suspending or revoking a resort license, if after the
270     day on which the resort license is issued, a person described in Subsection 32B-8-203(1):
271          (i) is found to have been convicted of an offense described in Subsection
272     32B-1-304(1)(a) before the resort license is issued; or
273          (ii) on or after the day on which the resort license is issued:
274          (A) is convicted of an offense described in Subsection 32B-1-304(1)(a)(i)[, (ii), or (iii)]
275     or (ii); or
276          (B) (I) is convicted of driving under the influence of alcohol, a drug, or the combined
277     influence of alcohol and a drug; and
278          (II) was convicted of driving under the influence of alcohol, a drug, or the combined
279     influence of alcohol and a drug within five years before the day on which the person is
280     convicted of the offense described in Subsection (2)(b)(ii)(A);
281          (b) the director taking an emergency action by immediately suspending the operation of

282     a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for
283     the period during which the criminal matter is being adjudicated if a person described in
284     Subsection 32B-8-203(1):
285          (i) is arrested on a charge for an offense described in Subsection 32B-1-304(1)(a)(i)[,
286     (ii), or (iii)] or (ii); or
287          (ii) (A) is arrested on a charge for the offense of driving under the influence of alcohol,
288     a drug, or the combined influence of alcohol and a drug; and
289          (B) was convicted of driving under the influence of alcohol, a drug, or the combined
290     influence of alcohol and a drug within five years before the day on which the person is arrested
291     on a charge described in Subsection (2)(b)(ii)(A); and
292          (c) the commission suspending or revoking a resort license because a person to whom a
293     resort license is issued under this chapter no longer possesses the qualifications required by this
294     title for obtaining the resort license.
295          (3) This section does not prevent the commission from suspending or revoking a
296     sublicense that is part of a resort license if a person employed to act in a supervisory or
297     managerial capacity for a sublicense no longer meets the qualification requirements in the
298     provisions applicable to the sublicense.