1     
MOBILE BUSINESS LICENSING AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Robert M. Spendlove

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill establishes an enclosed mobile business as a specific type of business, and
10     clarifies and amends a political subdivision's authority to regulate mobile businesses.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     establishes an enclosed mobile business as a specific type of business;
15          ▸     subjects enclosed mobile businesses to statutory provisions governing food trucks,
16     food carts, and ice cream trucks; and
17          ▸     modifies a political subdivision's authority to regulate mobile businesses.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          11-56-102, as last amended by Laws of Utah 2022, Chapter 306
25          11-56-103, as last amended by Laws of Utah 2022, Chapter 306
26          11-56-104, as last amended by Laws of Utah 2022, Chapter 306
27          11-56-105, as last amended by Laws of Utah 2019, Chapter 260
28          11-56-106, as last amended by Laws of Utah 2019, Chapter 260
29     REPEALS:
30          11-56-101, as enacted by Laws of Utah 2017, Chapter 165
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 11-56-102 is amended to read:
34     
CHAPTER 56. MOBILE BUSINESS LICENSING AND REGULATION ACT

35          11-56-102. Definitions.
36          As used in this chapter:
37          (1) (a) "Enclosed mobile business" means a business that maintains ongoing mobility
38     and of which the receipt of goods or services offered and point of sales occurs within an
39     enclosed vehicle, an enclosed trailer, or an enclosed mobile structure.
40          (b) An enclosed mobile business's goods or services include those offered in the
41     following industries:
42          (i) barber;
43          (ii) beauty and cosmetic, including nail, eyelash, and waxing;
44          (iii) cycling;
45          (iv) cell phone;
46          (v) computer;
47          (vi) footwear;
48          (vii) media archive and transfer;
49          (viii) pet grooming;
50          (ix) sewing and tailoring;
51          (x) small engine; and
52          (xi) tool.
53          (c) "Enclosed mobile business" does not include a food cart, a food truck, or an ice
54     cream truck.
55          [(1)] (2) "Event permit" means a permit that a political subdivision issues to the
56     organizer of a [public food truck event] mobile business event located on public property.
57          [(2)] (3) (a) "Food cart" means a cart:
58          [(a)] (i) that is not motorized; and
59          [(b)] (ii) that a vendor, standing outside the frame of the cart, uses to prepare, sell, or
60     serve food or beverages for immediate human consumption.
61          (b) "Food cart" does not include an enclosed mobile business, a food truck, or an ice
62     cream truck.
63          [(3)] (4) (a) "Food truck" means[:(a)] a fully encased food service establishment:
64          (i) on a motor vehicle or on a trailer that a motor vehicle pulls to transport; and
65          (ii) from which a food truck vendor, standing within the frame of the vehicle, prepares,
66     cooks, sells, or serves food or beverages for immediate human consumption[;].
67          (b) "Food truck" does not include an enclosed mobile business, a food cart, or an ice
68     cream truck.
69          [(b) a food cart; or]
70          [(c) an ice cream truck.]
71          [(4) "Food truck business" means a person who operates a food truck or, under the
72     same business, multiple food trucks.]
73          [(5) "Food truck event" means an event where an individual has ordered or
74     commissioned the operation of a food truck at a private or public gathering.]
75          [(6) "Food truck operator" means a person who owns, manages, or controls, or who has
76     the duty to manage or control, the food truck business.]
77          [(7) "Food truck vendor" means a person who sells, cooks, or serves food or beverages
78     from a food truck.]
79          [(8)] (5) ["Health department food truck permit"] "Health department permit" means a
80     document that a local health department issues to authorize [a person to operate a food truck] a
81     mobile business to operate within the jurisdiction of the local health department.
82          [(9)] (6) (a) "Ice cream truck" means a fully encased food service establishment:
83          [(a)] (i) on a motor vehicle or on a trailer that a motor vehicle pulls to transport;
84          [(b)] (ii) from which a vendor, from within the frame of the vehicle, serves ice cream;
85          [(c)] (iii) that attracts patrons by traveling through a residential area and signaling the
86     truck's presence in the area, including by playing music; and
87          [(d)] (iv) that may stop to serve ice cream at the signal of a patron.
88          (b) "Ice cream truck" does not include an enclosed mobile business, a food cart, or a
89     food truck.
90          [(10)] (7) "Local health department" means the same as that term is defined in Section
91     26A-1-102.
92          (8) "Mobile business" means an enclosed mobile business, a food cart, a food truck, or
93     an ice cream truck.
94          (9) "Mobile business event" means an event at which a mobile business has been
95     invited by the event organizer to offer the mobile business's goods or services at a private or
96     public gathering.
97          (10) "Operator" means a person, including a vendor, who owns, manages, controls, or
98     operates a mobile business.
99          (11) "Political subdivision" means:
100          (a) a city, town, or metro township; or
101          (b) a county, as it relates to the licensing and regulation of businesses in the
102     unincorporated area of the county.
103          (12) (a) "Temporary mass gathering" means:
104          (i) an actual or reasonably anticipated assembly of 500 or more people that continues,
105     or reasonably can be expected to continue, for two or more hours per day; or
106          (ii) an event that requires a more extensive review to protect public health and safety
107     because the event's nature or conditions have the potential of generating environmental or
108     health risks.
109          (b) "Temporary mass gathering" does not include an assembly of people at a location
110     with permanent facilities designed for that specific assembly, unless the assembly is a
111     temporary mass gathering described in Subsection [(12)(a)(i)] (15)(a)(i).
112          Section 2. Section 11-56-103 is amended to read:
113          11-56-103. Licensing -- Reciprocity -- Fees.
114          (1) (a) Subject to the provisions of this chapter, a political subdivision may require a
115     [food truck business] mobile business to obtain a business license if the [food truck business]
116     mobile business does not hold a current business license in good standing from another
117     political subdivision in the state.
118          (b) A political subdivision may only charge a licensing fee to a [food truck business]
119     mobile business in an amount that reimburses the political subdivision for the actual cost of
120     processing the business license.
121          (2) A political subdivision may not:
122          (a) require a [food truck business] mobile business to:
123          (i) obtain a separate business license beyond the initial business license described in
124     Subsection (1)(a);
125          (ii) pay a fee other than the fee for the initial business license described in Subsection
126     (1); or
127          (iii) pay a fee for each employee the [food truck business] mobile business employs;
128          (b) as a condition of a [food truck business] mobile business obtaining a business
129     license under Subsection (1):
130          (i) require [a food truck operator or food truck vendor] an operator to submit to or offer
131     evidence of a criminal background check, except as provided in Subsection (5); or
132          (ii) require a [food truck operator] mobile business or its operator to demonstrate how
133     the [operation of the food truck business] mobile business will comply with a land use or
134     zoning ordinance at the time the [food truck business] mobile business applies for the business
135     license; or
136          (c) regulate or restrict the size of a [food truck operated by a food truck business]
137     mobile business.
138          (3) (a) A political subdivision shall recognize as valid within the political subdivision
139     the business license of a [food truck business] mobile business obtained in another political
140     subdivision within the state, if the business license is current and in good standing.
141          [(b) Notwithstanding Subsection (3)(a), a political subdivision is not required to
142     recognize as valid the business license of a food truck business issued in another political
143     subdivision within the state if the food truck business does not have the following for each
144     food truck that the food truck business operates:]
145          [(i) a current health department food truck permit from a local health department
146     within the state; and]
147          [(ii) a current approval of a political subdivision within the state that shows that the
148     food truck passed a fire safety inspection that the other political subdivision conducted in
149     accordance with Subsection 11-56-104(3)(a).]
150          (b) Notwithstanding Subsection (3)(a), a political subdivision is not required to
151     recognize as valid the business license issued by another political subdivision within the state
152     if:
153          (i) (A) the mobile business does not have a current health department permit from a
154     local health department within the state; and
155          (B) the nature of the mobile business requires that the mobile business have a health
156     department permit in order to operate; or
157          (ii) (A) the mobile business does not have current evidence of passing a fire safety
158     inspection, conducted by another political subdivision within the state in accordance with
159     Subsection 11-56-104(3)(a); and
160          (B) the nature of the mobile business requires that the mobile business pass a fire
161     safety inspection in order to operate.
162          (4) Nothing in this section prevents a political subdivision from:
163          (a) requiring a [food truck business] mobile business to comply with local zoning and
164     land use regulations to the extent that the regulations do not conflict with this chapter;
165          (b) promulgating local ordinances and regulations consistent with this section that
166     address how and where a food truck or enclosed mobile business truck may operate within the
167     political subdivision;
168          (c) requiring a [food truck business] mobile business to obtain an event permit in
169     accordance with Section 11-56-105; or
170          (d) if the nature of the mobile business requires the mobile business to have a business
171     license, health department permit, or fire safety inspection, requiring [a food truck business]
172     the mobile business to keep a copy of the following in each [food truck operated by the food
173     truck business] mobile business that is in operation and engaging in transactions:
174          (i) a valid business license [for the food truck business, as described in this section],
175     whether issued by the political subdivision or another political subdivision;
176          (ii) a valid health department [food truck] permit, as described in Section 11-56-104,
177     whether issued by a local health department or another health department; or
178          (iii) evidence of passing a fire safety inspection, as described in Section 11-56-104,
179     whether conducted by the political subdivision or another political subdivision.
180          (5) As a condition of obtaining and maintaining in good standing an initial business
181     license as described in Subsection (1)(a), a political subdivision may require a food truck
182     business that operates one or more ice cream trucks to submit to or offer evidence of an annual
183     criminal background check for each employee of the food truck business that operates or will
184     operate an ice cream truck.
185          Section 3. Section 11-56-104 is amended to read:
186          11-56-104. Safety and health inspections and permits -- Fees.
187          (1) (a) (i) A food truck business shall obtain, for each food truck that the business
188     operates, an annual health department [food truck] permit from the local health department
189     [with] that has jurisdiction over the area in which the majority of the food truck's operations
190     [takes place] occur.
191          (ii) Subject to Subsection (4)(a), a mobile business is not subject to a local health
192     department's regulations or permit requirements, unless the nature of the mobile business's
193     operation subjects the mobile business to the local health department's regulations or permit
194     requirements.
195          (b) A local health department shall recognize as valid a health department [food truck]
196     permit that has been issued by another local health department within the state.
197          (2) A local health department may only charge a [health department food truck permit
198     fee to a food truck business] fee for a health department permit in an amount that reimburses
199     the local health department for the cost of regulating the [food truck] mobile business.
200          (3) (a) A political subdivision inspecting a [food truck] mobile business for fire safety
201     shall conduct the inspection based on the criteria that the Utah Fire Prevention Board, created
202     in Section 53-7-203, establishes in accordance with Section 53-7-204.
203          (b) (i) A political subdivision shall recognize as valid within the political subdivision's
204     jurisdiction an approval from another political subdivision within the state that shows that the
205     [food truck] mobile business passed a fire safety inspection that the other political subdivision
206     conducted.
207          (ii) A political subdivision may not require that a [food truck] mobile business pass a
208     fire safety inspection in a given calendar year if the [food truck business] mobile business
209     presents to the political subdivision an approval described in Subsection (3)(b)(i) issued during
210     the same calendar year.
211          (4) (a) Nothing in this section prevents a local health department from requiring a
212     [food truck business] mobile business to obtain an event permit, in accordance with Section
213     11-56-105.
214          (b) Nothing in this section prevents a political subdivision from revoking the political
215     subdivision's approval:
216          (i) described in Subsection (1)(b), if the [operation of the related food truck within the
217     political subdivision] mobile business fails a health inspection by a local health department; or
218          (ii) described in Subsection (3)(b)(i), if the [operation of the related food truck within
219     the political subdivision fails to meet the criteria] mobile business does not pass a fire safety
220     inspection described in Subsection (3)(a).
221          (c) For each [food truck] mobile business that fails a health inspection as described in
222     Subsection (4)(b)(i), a local health department may charge and collect a fee from the
223     [associated food truck business] mobile business for that health inspection.
224          Section 4. Section 11-56-105 is amended to read:
225          11-56-105. Mobile business events.
226          (1) Subject to Subsection (4), a political subdivision may not require a [food truck
227     business] mobile business to pay any fee or obtain from the political subdivision any permit to
228     operate [a food truck at a food truck event] the mobile business at a mobile business event that
229     takes place on private property within the political subdivision, regardless of whether the event
230     is open or closed to the public.
231          (2) If [the food truck business] a mobile business has a business license from any
232     political subdivision within the state, a political subdivision may not require [a food truck
233     business] the mobile business to pay [any] a fee or obtain from the political subdivision an
234     additional business license or permit to operate [a food truck at a food truck event] at an event
235     that:
236          (a) takes place on private property within the political subdivision; and
237          (b) is not open to the public.
238          (3) If a political subdivision requires an event permit for a [food truck event] mobile
239     business event, the organizer of the [food truck event] mobile business event may obtain the
240     event permit on behalf of the [food trucks] mobile businesses that service the event.
241          (4) (a) Nothing in this section prohibits a county health department from requiring a
242     permit for a temporary mass gathering.
243          (b) (i) [A food truck] A mobile business operating at a temporary mass gathering that
244     occurs over multiple days may operate in a stationary manner for the duration of the temporary
245     mass gathering, not to exceed five consecutive days, without moving or changing location if
246     the [food truck] mobile business maintains sanitary conditions and operates in compliance with
247     the permitting requirements and regulations imposed on other [food] similar vendors at the
248     temporary mass gathering.
249          (ii) A county health department may not impose a requirement on a [food truck]
250     mobile business described in Subsection (4)(b)(i) that the county health department does not
251     impose on other [food vendors] similar vendors operating at the temporary mass gathering.
252          Section 5. Section 11-56-106 is amended to read:
253          11-56-106. Mobile business operation.
254          A political subdivision may not:
255          (1) entirely or constructively prohibit [food trucks] mobile businesses in a zone in
256     which a food establishment is a permitted or conditional use;
257          (2) prohibit the operation of a food truck within a given distance of a restaurant;
258          (3) restrict the total number of days a [food truck business] mobile business may
259     operate [a food truck] within the political subdivision during a calendar year;
260          (4) require a [food truck business] mobile business to:
261          (a) provide to the political subdivision:
262          (i) a site plan for each location in which a [food truck] mobile business operates in the
263     public right of way, if the political subdivision permits [food truck operation] mobile
264     businesses in the public right of way; or
265          (ii) the date, time, or duration that a [food truck] mobile business will operate within
266     the political subdivision; or
267          (b) obtain and pay for a land use permit for each location and time during which a
268     [food truck] mobile business operates; or
269          (5) if a [food truck business] mobile business has the consent of a private property
270     owner to operate [a food truck] on the private property:
271          (a) limit the number of days the [food truck] mobile business may operate on the
272     private property;
273          (b) require that the [food truck operator] mobile business provide to the political
274     subdivision or keep on file in the [food truck] mobile business the private property owner's
275     written consent; or
276          (c) require a site plan for the operation of the [food truck] mobile business on the
277     private property where the [food truck] mobile business operates in the same location for less
278     than 10 hours per week.
279          Section 6. Repealer.
280          This bill repeals:
281          Section 11-56-101, Title.