1     
ALCOHOLIC BEVERAGE RECYCLING REQUIREMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Derek L. Kitchen

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends the Alcoholic Beverage Control Act regarding recycling for retail
10     licensees and permittees.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires the Alcoholic Beverage Control Commission to make rules establishing a
14     model recycling program for retail licensees and permittees;
15          ▸     requires a retail licensee to separate from other containers, store, and provide for the
16     collection for recycling of each glass bottle containing an alcoholic beverage that
17     the retail licensee sells for consumption on retail licensee's licensed premises;
18          ▸     requires a person to submit a recycling plan as part of the person's application for a
19     retail license;
20          ▸     requires a retail licensee, under certain circumstances, to submit a recycling plan as
21     part of the retail licensee's license renewal;
22          ▸     requires a permittee to separate from other containers, store, and provide for the
23     collection for recycling of each glass bottle containing an alcoholic beverage the
24     event permittee, or a person involved in the sale or furnishing of an alcoholic
25     product at an event, sells or furnishes for consumption at an event;
26          ▸     requires a person to submit a recycling plan as part of the person's application for an
27     event permit; and

28          ▸     makes technical and conforming changes.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          32B-5-201, as last amended by Laws of Utah 2020, Chapter 219
36          32B-5-202, as last amended by Laws of Utah 2021, Chapter 291
37          32B-9-201, as last amended by Laws of Utah 2020, Chapter 219
38          32B-9-204, as last amended by Laws of Utah 2020, Chapter 291
39     ENACTS:
40          32B-1-209, Utah Code Annotated 1953
41          32B-5-312, Utah Code Annotated 1953
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 32B-1-209 is enacted to read:
45          32B-1-209. Model recycling program.
46          (1) The commission, with the assistance of the department, shall make rules in
47     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing a
48     model recycling program for retail licensees and permittees.
49          (2) The model recycling program described in Subsection (1) shall:
50          (a) provide for the separation from other containers, storage, and collection for
51     recycling of each glass bottle containing an alcoholic beverage:
52          (i) a retail licensee furnishes for consumption on the retail licensee's licensed premises;
53     or
54          (ii) a permittee, or a person involved in the sale or furnishing of an alcoholic product at
55     an event, sells or furnishes at an event; and
56          (b) provide options for retail licensees and permittees that reflect variation in local
57     circumstances across the state.
58          Section 2. Section 32B-5-201 is amended to read:

59          32B-5-201. Application requirements for retail license.
60          (1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
61     an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
62     retail license issued by the commission, notwithstanding whether the person holds a local
63     license or a permit issued by a local authority.
64          (b) Violation of this Subsection (1) is a class B misdemeanor.
65          (2) To obtain a retail license under this title, a person shall submit to the department:
66          (a) a written application in a form prescribed by the department;
67          (b) a nonrefundable application fee in the amount specified in the relevant chapter or
68     part for the type of retail license for which the person is applying;
69          (c) an initial license fee:
70          (i) in the amount specified in the relevant chapter or part for the type of retail license
71     for which the person is applying; and
72          (ii) that is refundable if a retail license is not issued;
73          (d) written consent of the local authority, including, if applicable, consent for each
74     proposed sublicense;
75          (e) a copy of:
76          (i) the person's current business license; and
77          (ii) if the person is applying for a principal license, the current business license for each
78     proposed sublicense, except if the relevant political subdivision determines that the business
79     license for a proposed sublicense is included in the person's current business license;
80          (f) evidence of the proposed retail licensee's proximity to any community location, with
81     proximity requirements being governed by Section 32B-1-202;
82          (g) a bond as specified by Section 32B-5-204;
83          (h) a floor plan, and boundary map where applicable, of the premises of the retail
84     license and each, if any, accompanying sublicense, including any:
85          (i) consumption area; and
86          (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
87     beverage;
88          (i) evidence that the retail licensee carries public liability insurance in an amount and
89     form satisfactory to the department;

90          (j) evidence that the retail licensee carries dramshop insurance coverage of at least:
91          (i) $1,000,000 per occurrence and $2,000,000 in the aggregate;
92          (ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per
93     occurrence and $2,000,000 in the aggregate to cover both the principal license and all
94     accompanying sublicenses; or
95          (iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and
96     $20,000,000 in the aggregate to cover both the arena license and all accompanying sublicenses.
97          (k) a signed consent form stating that the retail licensee will permit any authorized
98     representative of the commission, department, or any law enforcement officer to have
99     unrestricted right to enter:
100          (i) the premises of the retail licensee; and
101          (ii) if applicable, the premises of each of the retail licensee's accompanying
102     sublicenses;
103          (l) if the person is an entity, proper verification evidencing that a person who signs the
104     application is authorized to sign on behalf of the entity;
105          (m) a responsible alcohol service plan; [and]
106          (n) on or after January 1, 2023, a recycling plan that satisfies the requirements of
107     Section 32B-5-312; and
108          [(n)] (o) any other information the commission or department may require.
109          (3) The commission may not issue a retail license to a person who:
110          (a) is disqualified under Section 32B-1-304; or
111          (b) is not lawfully present in the United States.
112          (4) Unless otherwise provided in the relevant chapter or part for the type of retail
113     license for which the person is applying, the commission may not issue a retail license to a
114     person if the proposed licensed premises does not meet the proximity requirements of Section
115     32B-1-202.
116          Section 3. Section 32B-5-202 is amended to read:
117          32B-5-202. Renewal requirements.
118          (1) A retail license expires each year on the day specified in the relevant chapter or part
119     for that type of retail license.
120          (2) (a) To renew a person's retail license, a retail licensee shall submit:

121          (i) a completed renewal application in a form prescribed by the department;
122          (ii) a renewal fee in the amount specified in the relevant chapter or part for the type of
123     retail license that the person seeks to renew; [and]
124          (iii) for a retail license renewal during the year 2023, a recycling plan that satisfies the
125     requirements of Section 32B-5-312;
126          (iv) for a retail license renewal on or after January 1, 2024, a recycling plan that
127     satisfies the requirements of Section 32B-5-312, if, since the retail licensee's most recent
128     application or renewal, the retail licensee:
129          (A) made a substantial change to the retail licensee's recycling plan; or
130          (B) violated Section 32B-5-312; and
131          [(iii)] (v) a responsible alcohol service plan if, since the retail licensee's most recent
132     application or renewal, the retail licensee:
133          (A) made substantial changes to the retail licensee's responsible alcohol service plan;
134     or
135          (B) violated a provision of this chapter.
136          (b) (i) Except as provided for in Subsection (2)(b)(ii), a retail licensee shall fulfill the
137     renewal requirements under Subsection (2)(a) on or before the day specified in the relevant
138     chapter or part for the type of retail license that the person seeks to renew.
139          (ii) The commission may:
140          (A) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
141     Rulemaking Act, permitting and establishing the parameters of late retail license renewals; and
142          (B) establish a fee, in accordance with Section 63J-1-504, for late retail license
143     renewals.
144          (c) The department may audit a retail licensee's responsible alcohol service plan.
145          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
146     retail license effective on the day on which the existing retail license expires.
147          Section 4. Section 32B-5-312 is enacted to read:
148          32B-5-312. Recycling of beverage containers.
149          (1) Beginning January 1, 2023, a retail licensee shall separate from other containers,
150     store, and provide for the collection for recycling of each glass bottle containing an alcoholic
151     beverage that the retail licensee sells or furnishes for consumption on the retail licensee's

152     licensed premises.
153          (2) A retail licensee satisfies the requirement described in Subsection (1) if the retail
154     licensee implements a recycling program that meets the minimum standards of the model
155     recycling program established under Section 32B-1-209.
156          (3) Notwithstanding Section 32B-3-205, the commission may not suspend or revoke a
157     retail license for a violation of this section.
158          Section 5. Section 32B-9-201 is amended to read:
159          32B-9-201. Application requirements for event permit.
160          (1) To obtain an event permit, a person shall submit to the department:
161          (a) a written application in a form that the department prescribes;
162          (b) an event permit fee:
163          (i) in the amount specified in the relevant part under this chapter for the type of event
164     permit for which the person is applying; and
165          (ii) that is refundable if an event permit is not issued;
166          (c) written consent of the local authority;
167          (d) a bond as specified by Section 32B-9-203;
168          (e) the times, dates, location, estimated attendance, nature, and purpose of the event;
169          (f) a description or floor plan designating:
170          (i) the area in which the person proposes that an alcoholic product be stored;
171          (ii) the site from which the person proposes that an alcoholic product be sold, offered
172     for sale, or furnished; and
173          (iii) the area in which the person proposes that an alcoholic product be allowed to be
174     consumed;
175          (g) a signed consent form stating that the event permittee will permit any authorized
176     representative of the commission, department, or any law enforcement officer to have
177     unrestricted right to enter the premises during the event;
178          (h) if the person is an entity, proper verification evidencing that a person who signs the
179     application is authorized to sign on behalf of the entity; [and]
180          (i) if the person applies for the event permit on or after January 1, 2023, a recycling
181     plan that satisfies the requirements of Subsection 32B-9-204(20); and
182          [(i)] (j) any other information as the commission or department may require.

183          (2) If a person substantially changes the person's application under Subsection (1) after
184     the person initially submits the application, the person shall pay to the department a fee:
185          (a) in an amount the department prescribes in accordance with Section 63J-1-504; and
186          (b) that is nonrefundable, regardless of whether the department issues an event permit.
187          (3) An entity applying for a permit need not meet the requirements of Subsections
188     (1)(b), (c), and (d) if the entity is:
189          (a) a state agency; or
190          (b) a political subdivision of the state.
191          (4) The director may not issue an event permit to a person who is disqualified under
192     Section 32B-1-304.
193          (5) (a) The proximity requirements of Section 32B-1-202 do not apply to an event
194     permit.
195          (b) Notwithstanding Subsection (5)(a), nothing in this section prevents the director, the
196     Compliance, Licensing, and Enforcement Subcommittee, or the commission from considering
197     the proximity of an educational, religious, or recreational facility, or any other relevant factor in
198     deciding whether to issue an event permit.
199          Section 6. Section 32B-9-204 is amended to read:
200          32B-9-204. General operational requirements for an event permit.
201          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or
202     furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
203     with this title and rules of the commission.
204          (b) Failure to comply as provided in Subsection (1)(a):
205          (i) may result in:
206          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
207     Enforcement Act, against:
208          (I) an event permittee;
209          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
210     product at the event; or
211          (III) any combination of the persons listed in this Subsection (1)(b);
212          (B) immediate revocation of the event permit;
213          (C) forfeiture of a bond; or

214          (D) immediate seizure of an alcoholic product present at the event; and
215          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
216     event permit for a period of three years from the date of revocation of the event permit.
217          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
218     permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206.
219          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
220     the specific type of special use permit held by the special use permittee, the relevant part
221     governs.
222          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
223     event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
224     relevant part under this chapter for the type of event permit that is held by the event permittee.
225          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
226     event permit held by an event permittee refers to "event permittee," a person involved in the
227     storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
228     event permit is issued is subject to the same requirement or prohibition.
229          (3) An event permittee shall display a copy of the event permit in a prominent place in
230     the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
231          (4) An event permittee may not on the premises of the event:
232          (a) engage in or allow any form of gambling, as defined in Section 76-10-1101, or
233     fringe gambling, as defined in Section 76-10-1101;
234          (b) have any fringe gaming device, video gaming device, or gambling device or record
235     as defined in Section 76-10-1101; or
236          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
237     the risking of something of value for a return or for an outcome when the return or outcome is
238     based upon an element of chance, excluding the playing of an amusement device that confers
239     only an immediate and unrecorded right of replay not exchangeable for value.
240          (5) An event permittee may not knowingly allow a person at an event to, in violation of
241     Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
242     Paraphernalia Act:
243          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
244     58-37-2; or

245          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
246     Section 58-37a-3.
247          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
248     purchases from:
249          (a) a beer wholesaler licensee;
250          (b) a beer retailer; or
251          (c) a small brewer.
252          (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
253     consumption of an alcoholic product purchased for an event in a location other than that
254     described in the application and designated on the event permit unless the event permittee first
255     applies for and receives approval from the director, with the approval of the Compliance,
256     Licensing, and Enforcement Subcommittee, for a change of location.
257          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
258     furnish beer for on-premise consumption:
259          (i) in an open original container; and
260          (ii) in a container on draft.
261          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
262     Subsection (8)(a):
263          (i) in a size of container that exceeds two liters; or
264          (ii) to an individual patron in a size of container that exceeds one liter.
265          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
266     than the cost of the alcoholic product to the event permittee.
267          (b) An event permittee may not sell an alcoholic product at a discount price on any date
268     or at any time.
269          (c) An event permittee may not sell or offer for sale an alcoholic product at a price that
270     encourages overconsumption or intoxication.
271          (d) An event permittee may not sell or offer for sale an alcoholic product at a special or
272     reduced price for only certain hours of the day of an event.
273          (e) An event permittee may not sell, offer for sale, or furnish more than one alcoholic
274     product at the price of a single alcoholic product.
275          (f) An event permittee, or a person operating, selling, offering, or furnishing an

276     alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or
277     unlimited number of alcoholic products during a set period for a fixed price, unless:
278          (i) the alcoholic product is served to a patron at a seated event;
279          (ii) food is available whenever the alcoholic product is sold, offered for sale, or
280     furnished; and
281          (iii) no person advertises that at the event a person may be sold or furnished an
282     indefinite or unlimited number of alcoholic products during a set period for a fixed price.
283          (g) An event permittee may not engage in a public promotion involving or offering a
284     free alcoholic product to the general public.
285          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
286          (a) a minor;
287          (b) a person actually, apparently, or obviously intoxicated;
288          (c) a known interdicted person; or
289          (d) a known habitual drunkard.
290          (11) (a) An alcoholic product is considered under the control of the event permittee
291     during an event.
292          (b) A patron at an event may not bring an alcoholic product onto the premises of the
293     event.
294          (12) An event permittee may not permit a patron to carry from the premises an open
295     container that:
296          (a) is used primarily for drinking purposes; and
297          (b) contains an alcoholic product.
298          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
299     an event is considered under the supervision and direction of the event permittee.
300          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
301     an event may not, while on duty:
302          (i) consume an alcoholic product; or
303          (ii) be intoxicated.
304          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
305     event.
306          (15) The location specified in an event permit may not be changed without prior

307     written approval of the commission.
308          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
309     attempt in any way to dispose of the event permit to another person whether for monetary gain
310     or not.
311          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
312     consumption of an alcoholic product during a period that:
313          (i) begins at 1 a.m.; and
314          (ii) ends at 9:59 a.m.
315          (b) This Subsection (17) does not preclude a local authority from being more restrictive
316     with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
317     product at an event.
318          (18) A patron may have no more than one alcoholic product of any kind at a time
319     before the patron.
320          (19) (a) An event permittee shall display, in a prominent place, a sign in large letters
321     that consists of text in the following order:
322          (i) a header that reads: "WARNING";
323          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
324     can cause birth defects and permanent brain damage for the child.";
325          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
326     [insert most current toll-free number] with questions or for more information.";
327          (iv) a header that reads: "WARNING"; and
328          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
329     serious crime that is prosecuted aggressively in Utah."
330          (b) (i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different
331     font style than the text described in Subsections (19)(a)(iv) and (v).
332          (ii) The warning statements in the sign described in Subsection (19)(a) shall be in the
333     same font size.
334          (c) The Department of Health shall work with the commission and department to
335     facilitate consistency in the format of a sign required under this section.
336          (20) (a) Beginning January 1, 2023, an event permittee shall separate from other
337     containers, store, and provide for the collection for recycling of each glass bottle containing an

338     alcoholic beverage that the event permittee, or a person involved in the sale or furnishing of an
339     alcoholic product at an event, sells or furnishes for consumption at an event.
340          (b) An event permittee satisfies the requirement described in Subsection (20)(a) if the
341     permittee implements a recycling program that meets the minimum standards of the model
342     recycling program established under Section 32B-1-209.
343          (c) Notwithstanding Section 32B-3-205, the commission may not suspend or revoke an
344     event permit for a violation of Subsection (20)(a).