1     
ALCOHOL LICENSE AND PERMIT AMENDMENTS

2     
2020 SIXTH SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Timothy D. Hawkes

5     
Senate Sponsor: Jerry W. Stevenson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of the Alcohol Beverage Control Act regarding certain
10     licenses and permits.
11     Highlighted Provisions:
12          This bill:
13          ▸     delays the expiration date of certain retail licenses in the year 2020;
14          ▸     adjusts percentage of annual gross receipts from the sale of alcoholic products that a
15     reception center licensee may maintain and what is included in that percentage;
16          ▸     defines "hospitality room" in relation to a public service permittee;
17          ▸     allows a public service permittee operating at an international airport to change
18     location under certain conditions;
19          ▸     establishes commission power and duties in approving a public service permittee's
20     change in location request;
21          ▸     provides a repeal date for provisions regarding delayed retail license renewals; and
22          ▸     makes technical and conforming changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          This bill provides a special effective date.
27     Utah Code Sections Affected:
28     AMENDS:
29          32B-5-202, as last amended by Laws of Utah 2020, Chapter 219
30          32B-6-803, as last amended by Laws of Utah 2020, Chapter 219
31          32B-10-206, as last amended by Laws of Utah 2020, Chapters 219 and 354
32          32B-10-302, as enacted by Laws of Utah 2010, Chapter 276
33          32B-10-303, as last amended by Laws of Utah 2011, Chapter 334
34          32B-10-304, as last amended by Laws of Utah 2011, Chapter 334
35          63I-2-232, as last amended by Laws of Utah 2020, Chapter 219
36     ENACTS:
37          32B-10-305, Utah Code Annotated 1953
38     

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 32B-5-202 is amended to read:
41          32B-5-202. Renewal requirements.
42          (1) A retail license expires each year on the day specified in the relevant chapter or part
43     for that type of retail license.
44          (2) (a) To renew a person's retail license, a retail licensee shall, by no later than the day
45     specified in the relevant chapter or part for the type of retail license that the person seeks to
46     renew, submit:
47          (i) a completed renewal application in a form prescribed by the department; and
48          (ii) a renewal fee in the amount specified in the relevant chapter or part for the type of
49     retail license that the person seeks to renew.
50          (b) A retail licensee shall submit a responsible alcohol service plan as part of the retail
51     licensee's renewal application if, since the retail licensee's most recent application or renewal, the
52     retail licensee:
53          (i) made substantial changes to the retail licensee's responsible alcohol service plan; or
54          (ii) violated a provision of this chapter.
55          (c) The department may audit a retail licensee's responsible alcohol service plan.
56          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
57     retail license effective on the day on which the existing retail license expires.
58          (4) (a) In the year 2020, the following retail licenses expire on December 22:
59          (i) a full-service restaurant license;
60          (ii) a limited-service restaurant license;
61          (iii) an airport lounge license;
62          (iv) an on-premise banquet license;
63          (v) a reception center license;
64          (vi) a resort license; and
65          (vii) a hotel license.
66          (b) To renew a license described in Subsection (4)(a) in the year 2020, a person shall:
67          (i) submit to the department on or before December 21, a completed renewal application
68     in a form the department prescribes; and
69          (ii) ensure that the department receives on or before December 21, a renewal fee in the
70     amount specified in the relevant chapter or part for the type of retail license that the person seeks
71     to renew.
72          (c) The provisions of this Subsection (4) supersede any conflicting provision of law in this
73     title.
74          Section 2. Section 32B-6-803 is amended to read:
75          32B-6-803. Commission's power to issue reception center license.
76          (1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on the
77     person's premises as a reception center, the person shall first obtain a reception center license
78     from the commission in accordance with this part.
79          (2) The commission may issue a reception center license to establish reception center
80     licensed premises at places and in numbers the commission considers proper for the storage, sale,
81     offer for sale, furnishing, and consumption of an alcoholic product on premises operated as a
82     reception center.
83          (3) Subject to Section 32B-1-201, the commission may not issue a total number of
84     reception center licenses that at any time exceeds the number determined by dividing the
85     population of the state by 251,693.
86          (4) The commission may not issue a reception center license for premises that do not
87     meet the proximity requirements of Section 32B-1-202.
88          (5) (a) To be licensed as a reception center, a person [shall maintain at least 50%] may
89     not maintain more than 30% of the person's total annual gross receipts from the sale of [food,
90     which does not include:] alcoholic products.
91          [(i) mix for an alcoholic product; or]
92          [(ii) a charge in connection with the furnishing of an alcoholic product.]
93          (b) For purposes of Subsection (5)(a):
94          (i) an alcoholic product includes:
95          (A) mix for an alcoholic product; and
96          (B) a charge in connection with the furnishing of an alcoholic product; and
97          (ii) gross receipts do not include any charge for renting a room or facility.
98          [(b)] (c) A reception center licensee shall report the information necessary to show
99     compliance with this Subsection (5) to the department on an annual basis.
100          Section 3. Section 32B-10-206 is amended to read:
101          32B-10-206. General operational requirements for special use permit.
102          (1) (a) A special use permittee and staff of the special use permittee shall comply with
103     this title and rules of the commission, including the relevant part of the chapter that applies to the
104     type of special use permit held by the special use permittee.
105          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in
106     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
107          (i) a special use permittee;
108          (ii) individual staff of a special use permittee; or
109          (iii) a special use permittee and staff of the special use permittee.
110          (c) The commission may suspend or revoke a special use permit with or without cause.
111          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
112     the specific type of special use permit, the relevant part under this chapter governs.
113          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a special
114     use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
115     manufacture an alcoholic product authorized for the special use permit that is held by the special
116     use permittee.
117          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
118     special use permit held by a special use permittee refers to "special use permittee," a person
119     involved in the purchase, use, storage, sale, offering for sale, allowing consumption, or
120     manufacture of an alcoholic product for which the special use permit is issued is subject to the
121     same requirement or prohibition.
122          (3) (a) A special use permittee shall make and maintain a record, as required by
123     commission rule, of any alcoholic product purchased, used, sold, or manufactured.
124          (b) Section 32B-1-205 applies to a record required to be made or maintained in
125     accordance with this Subsection (3).
126          (4) (a) Except as otherwise provided in this title, a special use permittee may not
127     purchase liquor except from a state store or package agency.
128          (b) A special use permittee may transport liquor purchased by the special use permittee in
129     accordance with this Subsection (4) from the place of purchase to the special use permittee's
130     premises.
131          (c) A special use permittee shall purchase liquor at prices set by the commission.
132          (d) When authorized by a special use permit, a special use permittee may purchase and
133     receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
134     educational, scientific, or manufacturing.
135          (e) A health care facility may purchase and receive an alcoholic product directly from a
136     manufacturer for use at the health care facility.
137          (5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
138     manufacture, or allow consumption of an alcoholic product in a location other than as designated
139     in a special use permittee's:
140          (a) application[.]; or
141          (b) change of location request, as described in Section 32B-10-305, if:
142          (i) the special use permittee is a public service permittee; and
143          (ii) the commission approved the special use permittee's change in location request.
144          (6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
145     furnish an alcoholic product to:
146          (a) a minor;
147          (b) a person actually, apparently, or obviously intoxicated;
148          (c) a known interdicted person; or
149          (d) a known habitual drunkard.
150          (7) A special use permittee may not employ a minor to handle an alcoholic product.
151          (8) (a) The location specified in a special use permit may not be transferred from one
152     location to another location, except as provided in Chapter 8a, Transfer of Alcohol License Act.
153          (b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
154     attempt in any way to dispose of the permit to another person whether for monetary gain or not,
155     except as provided in Chapter 8a, Transfer of Alcohol License Act.
156          (9) A special use permittee may not purchase, use, mix, store, sell, offer for sale, furnish,
157     consume, or manufacture an alcoholic product for a purpose other than that authorized by the
158     special use permit.
159          (10) The commission may prescribe by policy or rule consistent with this title, the general
160     operational requirements of a special use permittee relating to:
161          (a) physical facilities;
162          (b) conditions of purchase, use, storage, sale, consumption, or manufacture of an alcoholic
163     product;
164          (c) purchase, storage, and sales quantity limitations; and
165          (d) other matters considered appropriate by the commission.
166          Section 4. Section 32B-10-302 is amended to read:
167          32B-10-302. Definitions.
168          [Reserved] As used in this part, "hospitality room" means a room or facility:
169          (1) that a public service permittee operates; and
170          (2) in which an alcoholic product is sold, offered for sale, furnished, or consumed.
171          Section 5. Section 32B-10-303 is amended to read:
172          32B-10-303. Specific application and renewal requirements for public service
173     permit.
174          (1) To obtain a public service permit, in addition to complying with Section 32B-10-202, a
175     person shall submit to the department:
176          (a) a statement of the total of regularly numbered flights, trains, buses, boats, or other
177     types of public conveyance for which the person plans to use the special use permit;
178          (b) a floor plan of any room or facility in which the person plans to establish a hospitality
179     room [where the sale, offer for sale, or furnishing of an alcoholic product is made to a patron then
180     in transit, using the host company's airline, railroad, bus, boat, or other public conveyance]; and
181          (c) evidence of proximity of a proposed hospitality room to the arrival and departure area
182     used by a person traveling on the [host company's] person's airline, railroad, bus, boat, or other
183     public conveyance.
184          (2) (a) The nonrefundable application fee for a public service permit is $75.
185          (b) The initial permit fee for a public service permit is $250.
186          (c) The bond amount required for a public service permittee is the penal sum of $1,000.
187          (3) (a) To renew a public service permit, a person shall comply with Section 32B-10-203.
188          (b) The renewal fee for a public service permit is $30 for each regularly numbered
189     passenger airplane flight, passenger train, bus, boat, or any other regularly scheduled public
190     conveyance upon which an alcoholic product is sold, offered for sale, or furnished.
191          Section 6. Section 32B-10-304 is amended to read:
192          32B-10-304. Specific operational requirements for a public service permit.
193          (1) (a) In addition to complying with Section 32B-10-206, a public service permittee and
194     staff of the public service permittee shall comply with this section.
195          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in
196     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
197          (i) a public service permittee;
198          (ii) individual staff of a public service permittee; or
199          (iii) both a public service permittee and staff of the public service permittee.
200          (2) (a) A public service permittee whose public conveyances operate on an interstate
201     basis may do the following:
202          (i) purchase an alcoholic product outside of the state;
203          (ii) bring an alcoholic product purchased outside of the state into the state; and
204          (iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state to a
205     passenger traveling on the public service permittee's public conveyance for consumption while en
206     route on the public conveyance.
207          (b) A public service permittee whose public conveyance operates solely within the state,
208     to sell, offer for sale, or furnish to a passenger traveling on the public service permittee's public
209     conveyance for consumption while en route on the public conveyance, shall purchase:
210          (i) liquor from a state store or package agency; and
211          (ii) beer from a beer wholesaler licensee.
212          (3) (a) A public service permittee may establish a hospitality room [in which an alcoholic
213     product may be stored, sold, offered for sale, furnished, and consumed], if:
214          (i) the room is located within a depot, terminal, or similar facility adjacent to and servicing
215     the public service permittee's airline, railroad, bus, boat, or other public conveyance;
216          (ii) the room is completely enclosed and the interior is not visible to the public;
217          (iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a person:
218          (A) then in transit using the [host company's] public service permittee's airline, railroad,
219     bus line, or other public conveyance; and
220          (B) holding a valid boarding pass or similar travel document issued by the [host company]
221     public service permittee; and
222          (iv) (A) liquor is purchased from:
223          (I) a state store; or
224          (II) a package agency; and
225          (B) beer is purchased from a beer wholesaler licensee.
226          (b) (i) A public service permittee operating a hospitality room shall display in a prominent
227     place in the hospitality room, a sign in large letters that consists of text in the following order:
228          (A) a header that reads: "WARNING";
229          (B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can
230     cause birth defects and permanent brain damage for the child.";
231          (C) a statement in smaller font that reads: "Call the Utah Department of Health at [insert
232     most current toll-free number] with questions or for more information.";
233          (D) a header that reads: "WARNING"; and
234          (E) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
235     serious crime that is prosecuted aggressively in Utah."
236          (ii) (A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a different
237     font style than the text described in Subsections (3)(b)(i)(D) and (E).
238          (B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the
239     same font size.
240          (iii) The Department of Health shall work with the commission and department to
241     facilitate consistency in the format of a sign required under this section.
242          (c) A hospitality room shall be operated in accordance with this chapter and rules adopted
243     by the commission.
244          Section 7. Section 32B-10-305 is enacted to read:
245          32B-10-305. Change in location request for a public service permit.
246          (1) A public service permittee operating at an international airport may request a change
247     in location within the international airport, if the international airport requires the public service
248     permittee to relocate to another location within the international airport.
249          (2) To request a change in location, a public service permittee described in Subsection (1)
250     shall, in a manner prescribed by the department, submit to the department:
251          (a) a statement of the total number of regularly numbered flights for which the public
252     service permittee plans to use the special use permit;
253          (b) a floor plan of any room or facility in which the public service permittee plans to
254     establish a hospitality room;
255          (c) evidence of the proximity of each proposed hospitality room to the arrival and
256     departure area used by a person traveling the public service permittee's airline; and
257          (d) any other information the department requires.
258          (3) (a) Before approving a public service permittee's request to change location at an
259     international airport, the commission shall:
260          (i) determine that the public service permittee filed a complete change in location request,
261     as described in Subsection (2);
262          (ii) determine that the public service permittee is in compliance with this chapter and part;
263          (iii) consider the physical characteristics of the premises where an alcoholic product is
264     proposed to be used, mixed, stored, sold, offered for sale, or furnished, including:
265          (A) the conditions of the premises;
266          (B) public visibility; and
267          (C) safety considerations; and
268          (iv) consider any other factor the commission considers necessary.
269          (b) The commission may delegate to the department:
270          (i) the authority to approve a change in location for a public service permittee at an
271     international airport; and
272          (ii) the duties described in this Subsection (3).
273          (4) Upon commission approval of the public service permittee's request to change
274     location, the public service permittee shall move to the newly approved location within the
275     international airport.
276          Section 8. Section 63I-2-232 is amended to read:
277          63I-2-232. Repeal dates -- Title 32B.
278          (1) Subsection 32B-1-102(9) is repealed July 1, 2022.
279          (2) Subsection 32B-1-407(3)(d) is repealed July 1, 2022.
280          (3) Section 32B-2-211.1 is repealed November 1, 2020.
281          (4) Subsection 32B-5-202(4), which addresses license renewal during 2020, is repealed
282     January 1, 2021.
283          [(4)] (5) Subsections 32B-6-202(3) and (4) are repealed July 1, 2022.
284          [(5)] (6) Section 32B-6-205 is repealed July 1, 2022.
285          [(6)] (7) Subsection 32B-6-205.2(16) is repealed July 1, 2022.
286          [(7)] (8) Section 32B-6-205.3 is repealed July 1, 2022.
287          [(8)] (9) Subsections 32B-6-302(3) and (4) are repealed July 1, 2022.
288          [(9)] (10) Section 32B-6-305 is repealed July 1, 2022.
289          [(10)] (11) Subsection 32B-6-305.2(15) is repealed July 1, 2022.
290          [(11)] (12) Section 32B-6-305.3 is repealed July 1, 2022.
291          [(12)] (13) Section 32B-6-404.1 is repealed July 1, 2022.
292          [(13)] (14) Section 32B-6-409 is repealed July 1, 2022.
293          [(14)] (15) Subsection 32B-6-703(2)(e)(iv) is repealed July 1, 2022.
294          [(15)] (16) Subsections 32B-6-902(1)(c), (1)(d), and (2) are repealed July 1, 2022.
295          [(16)] (17) Section 32B-6-905 is repealed July 1, 2022.
296          [(17)] (18) Subsection 32B-6-905.1(15) is repealed July 1, 2022.
297          [(18)] (19) Section 32B-6-905.2 is repealed July 1, 2022.
298          [(19)] (20) Subsection 32B-8d-104(3) is repealed July 1, 2022.
299          Section 9. Effective date.
300          If approved by two-thirds of all the members elected to each house, this bill takes effect
301     upon approval by the governor, or the day following the constitutional time limit of Utah
302     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto, the
303     date of veto override.