2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill amends the Alcoholic Beverage Control Act to allow for alternating
10 proprietorships for manufacturing licensees.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines "alternating proprietorship";
14 ▸ permits a person to apply to a manufacturing license in connection with an
15 alternating proprietorship;
16 ▸ permits the commission to issue a manufacturing license to a person operating in an
17 alternating proprietorship under certain conditions; and
18 ▸ makes technical and conforming changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 32B-11-102, as enacted by Laws of Utah 2010, Chapter 276
26 32B-11-203, as last amended by Laws of Utah 2011, Chapter 334
27 32B-11-205, 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-11-102 is amended to read:
31 32B-11-102. Definitions.
32 As used in this chapter[
33 (1) "Alternating proprietorship" means an arrangement in which two or more
34 manufacturing licensees take turns using the licensed premises of a winery, distillery, or
35 brewery.
36 (2) [
37 manufacturing license issued under this chapter.
38 Section 2. Section 32B-11-203 is amended to read:
39 32B-11-203. Application requirements for a manufacturing license.
40 To obtain an alcoholic product manufacturing license, a person shall submit to the
41 department:
42 (1) a written application in a form prescribed by the department;
43 (2) a nonrefundable application fee of $300;
44 (3) an initial license fee of $3,800:
45 (a) unless otherwise provided in this chapter; and
46 (b) that is refundable if a license is not issued;
47 (4) written consent of the local authority;
48 (5) a statement of the purpose for which the person has applied for the manufacturing
49 license;
50 (6) evidence that the person is authorized by the United States to manufacture an
51 alcoholic product;
52 (7) a bond as specified by Section 32B-11-207;
53 (8) evidence that the person is carrying public liability insurance in an amount and
54 form satisfactory to the department;
55 (9) a signed consent form stating that the manufacturing licensee will permit any
56 authorized representative of the commission, department, or any law enforcement officer to
57 have unrestricted right to enter the licensed premises;
58 (10) if the person is an entity, proper verification evidencing that a person who signs
59 the application is authorized to sign on behalf of the entity; [
60 (11) if the person plans to operate in an alternating proprietorship:
61 (a) evidence that the person is authorized by the United States to operate in an
62 alternating proprietorship; and
63 (b) a copy of the alternating proprietorship agreement; and
64 [
65 Section 3. Section 32B-11-205 is amended to read:
66 32B-11-205. Specific qualifications for a manufacturing license.
67 (1) The commission may not issue a manufacturing license to a person who:
68 (a) is disqualified under Section 32B-1-304; [
69 (b) has not met an applicable federal requirement for the operation of a winery,
70 distillery, or brewery[
71 (c) (i) plans to operate in an alternating proprietorship; and
72 (ii) has not met an applicable federal requirement to operate in an alternating
73 proprietorship.
74 (2) If a person to whom a manufacturing license is issued under this chapter no longer
75 possesses the qualifications required by this title for obtaining that manufacturing license, the
76 commission may suspend or revoke that manufacturing license.