Bill Summary – FastDemocracy

Enrolled Copy                                                                           H.B. 247
                             ALCOHOL CONTROL AMENDMENTS
                                        2023 GENERAL SESSION
                                             STATE OF UTAH
                                      Chief Sponsor: Ken Ivory
                                  Senate Sponsor: Scott D. Sandall
 6
 LONG TITLE
 General Description:
           This bill modifies the Alcoholic Beverage Control Act.
 Highlighted Provisions:
           This bill:
           < modifies definitions;
           < provides a penalty for altering, destroying, or concealing certain records that are
 relevant to an official proceeding under the Alcoholic Beverage Control Act;
           < requires certain licensees under the Alcoholic Beverage Control Act to, after
 receiving notice of a certain civil or criminal action, retain records relevant to the
 action;
           < describes the circumstances under which there is prima facie evidence that a person
 is liable for an injury or death that results from the intoxication of another
 individual; and
           < makes technical changes.
 Money Appropriated in this Bill:
           None
 Other Special Clauses:
           None
 Utah Code Sections Affected:
 AMENDS:
           32B-1-102, as last amended by Laws of Utah 2022, Chapter 447
           32B-4-505, as last amended by Laws of Utah 2019, Chapter 189
       H.B. 247                                                                       Enrolled Copy
        32B-5-202, as last amended by Laws of Utah 2022, Chapter 447
        32B-5-302, as enacted by Laws of Utah 2010, Chapter 276
        32B-6-205.2, as last amended by Laws of Utah 2022, Chapter 447
        32B-6-305.2, as last amended by Laws of Utah 2022, Chapter 447
        32B-6-406, as last amended by Laws of Utah 2020, Chapter 219
        32B-6-605, as last amended by Laws of Utah 2022, Chapter 447
        32B-6-706, as last amended by Laws of Utah 2022, Chapter 447
        32B-6-905.1, as last amended by Laws of Utah 2022, Chapter 447
        32B-6-1005, as last amended by Laws of Utah 2022, Chapter 447
        32B-15-201, as enacted by Laws of Utah 2010, Chapter 276
40
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 32B-1-102 is amended to read:
        32B-1-102. Definitions.
        As used in this title:
        (1) "Airport lounge" means a business location:
        (a) at which an alcoholic product is sold at retail for consumption on the premises; and
        (b) that is located at an international airport.
        (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
 Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
        (3) "Alcoholic beverage" means the following:
        (a) beer; or
        (b) liquor.
        (4) (a) "Alcoholic product" means a product that:
        (i) contains at least .5% of alcohol by volume; and
        (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
 in an amount equal to or greater than .5% of alcohol by volume.
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      Enrolled Copy                                                                        H.B. 247
        (b) "Alcoholic product" includes an alcoholic beverage.
        (c) "Alcoholic product" does not include any of the following common items that
 otherwise come within the definition of an alcoholic product:
        (i) except as provided in Subsection (4)(d), an extract;
        (ii) vinegar;
        (iii) preserved nonintoxicating cider;
        (iv) essence;
        (v) tincture;
        (vi) food preparation; or
        (vii) an over-the-counter medicine.
        (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
 when it is used as a flavoring in the manufacturing of an alcoholic product.
        (5) "Alcohol training and education seminar" means a seminar that is:
        (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
        (b) described in Section 62A-15-401.
        (6) "Arena" means an enclosed building:
        (a) that is managed by:
        (i) the same person who owns the enclosed building;
        (ii) a person who has a majority interest in each person who owns or manages a space
 in the enclosed building; or
        (iii) a person who has authority to direct or exercise control over the management or
 policy of each person who owns or manages a space in the enclosed building;
        (b) that operates as a venue; and
        (c) that has an occupancy capacity of at least 12,500.
        (7) "Arena license" means a license issued in accordance with Chapter 5, Retail
 License Act, and Chapter 8c, Arena License Act.
        (8) "Banquet" means an event:
        (a) that is a private event or a privately sponsored event;
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       H.B. 247                                                                        Enrolled Copy
        (b) that is held at one or more designated locations approved by the commission in or
 on the premises of:
        (i) a hotel;
        (ii) a resort facility;
        (iii) a sports center;
        (iv) a convention center;
        (v) a performing arts facility; or
        (vi) an arena;
        (c) for which there is a contract:
        (i) between a person operating a facility listed in Subsection (8)(b) and another person
 that has common ownership of less than 20% with the person operating the facility; and
        (ii) under which the person operating a facility listed in Subsection (8)(b) is required to
 provide an alcoholic product at the event; and
        (d) at which food and alcoholic products may be sold, offered for sale, or furnished.
        (9) (a) "Bar establishment license" means a license issued in accordance with Chapter
 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
        (b) "Bar establishment license" includes:
        (i) a dining club license;
        (ii) an equity license;
        (iii) a fraternal license; or
        (iv) a bar license.
        (10) "Bar license" means a license issued in accordance with Chapter 5, Retail License
 Act, and Chapter 6, Part 4, Bar Establishment License.
        (11) (a) "Beer" means a product that:
        (i) contains:
        (A) at least .5% of alcohol by volume; and
        (B) no more than 5% of alcohol by volume or 4% by weight;
        (ii) is obtained by fermentation, infusion, or decoction of:
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       Enrolled Copy                                                                            H.B. 247
        (A) malt; or
        (B) a malt substitute; and
        (iii) is clearly marketed, labeled, and identified as:
        (A) beer;
        (B) ale;
        (C) porter;
        (D) stout;
        (E) lager;
        (F) a malt;
        (G) a malted beverage; or
        (H) seltzer.
        (b) "Beer" may contain:
        (i) hops extract; or
        (ii) caffeine, if the caffeine is a natural constituent of an added ingredient.
        (c) "Beer" does not include:
        (i) a flavored malt beverage;
        (ii) a product that contains alcohol derived from:
        (A) spirituous liquor; or
        (B) wine; or
        (iii) a product that contains an additive masking or altering a physiological effect of
 alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
        (12) "Beer-only restaurant license" means a license issued in accordance with Chapter
 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
        (13) "Beer retailer" means a business that:
        (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
 for consumption on or off the business premises; and
        (b) is licensed as:
        (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
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        H.B. 247                                                                       Enrolled Copy
 Retailer Local Authority; or
         (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
 Chapter 6, Part 7, On-Premise Beer Retailer License.
         (14) "Beer wholesaling license" means a license:
         (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
         (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
 retail licensees or off-premise beer retailers.
         (15) "Billboard" means a public display used to advertise, including:
         (a) a light device;
         (b) a painting;
         (c) a drawing;
         (d) a poster;
         (e) a sign;
         (f) a signboard; or
         (g) a scoreboard.
         (16) "Brewer" means a person engaged in manufacturing:
         (a) beer;
         (b) heavy beer; or
         (c) a flavored malt beverage.
         (17) "Brewery manufacturing license" means a license issued in accordance with
 Chapter 11, Part 5, Brewery Manufacturing License.
         (18) "Certificate of approval" means a certificate of approval obtained from the
 department under Section 32B-11-201.
         (19) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
 a bus company to a group of persons pursuant to a common purpose:
         (a) under a single contract;
         (b) at a fixed charge in accordance with the bus company's tariff; and
         (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
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        Enrolled Copy                                                                         H.B. 247
 motor vehicle, and a driver to travel together to one or more specified destinations.
        (20) "Church" means a building:
        (a) set apart for worship;
        (b) in which religious services are held;
        (c) with which clergy is associated; and
        (d) that is tax exempt under the laws of this state.
        (21) "Commission" means the Alcoholic Beverage Services Commission created in
 Section 32B-2-201.
        (22) "Commissioner" means a member of the commission.
        (23) "Community location" means:
        (a) a public or private school;
        (b) a church;
        (c) a public library;
        (d) a public playground; or
        (e) a public park.
        (24) "Community location governing authority" means:
        (a) the governing body of the community location; or
        (b) if the commission does not know who is the governing body of a community
 location, a person who appears to the commission to have been given on behalf of the
 community location the authority to prohibit an activity at the community location.
        (25) "Container" means a receptacle that contains an alcoholic product, including:
        (a) a bottle;
        (b) a vessel; or
        (c) a similar item.
        (26) "Controlled group of manufacturers" means as the commission defines by rule
 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
        (27) "Convention center" means a facility that is:
        (a) in total at least 30,000 square feet; and
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        H.B. 247                                                                           Enrolled Copy
          (b) otherwise defined as a "convention center" by the commission by rule.
          (28) (a) "Counter" means a surface or structure in a dining area of a licensed premises
 where seating is provided to a patron for service of food.
          (b) "Counter" does not include a dispensing structure.
          (29) "Crime involving moral turpitude" is as defined by the commission by rule.
          (30) "Department" means the Department of Alcoholic Beverage Services created in
 Section 32B-2-203.
          (31) "Department compliance officer" means an individual who is:
          (a) an auditor or inspector; and
          (b) employed by the department.
          (32) "Department sample" means liquor that is placed in the possession of the
 department for testing, analysis, and sampling.
          (33) "Dining club license" means a license issued in accordance with Chapter 5, Retail
 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
 commission as a dining club license.
          (34) "Director," unless the context requires otherwise, means the director of the
 department.
          (35) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
 title:
          (a) against a person subject to administrative action; and
          (b) that is brought on the basis of a violation of this title.
          (36) (a) Subject to Subsection (36)(b), "dispense" means:
          (i) drawing an alcoholic product; and
          (ii) using the alcoholic product at the location from which it was drawn to mix or
 prepare an alcoholic product to be furnished to a patron of the retail licensee.
          (b) The definition of "dispense" in this Subsection (36) applies only to:
          (i) a full-service restaurant license;
          (ii) a limited-service restaurant license;
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        Enrolled Copy                                                                          H.B. 247
        (iii) a reception center license;
        (iv) a beer-only restaurant license;
        (v) a bar license;
        (vi) an on-premise beer retailer;
        (vii) an airport lounge license;
        (viii) an on-premise banquet license; and
        (ix) a hospitality amenity license.
        (37) "Dispensing structure" means a surface or structure on a licensed premises:
        (a) where an alcoholic product is dispensed; or
        (b) from which an alcoholic product is served.
        (38) "Distillery manufacturing license" means a license issued in accordance with
 Chapter 11, Part 4, Distillery Manufacturing License.
        (39) "Distressed merchandise" means an alcoholic product in the possession of the
 department that is saleable, but for some reason is unappealing to the public.
        (40) "Equity license" means a license issued in accordance with Chapter 5, Retail
 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
 commission as an equity license.
        (41) "Event permit" means:
        (a) a single event permit; or
        (b) a temporary beer event permit.
        (42) "Exempt license" means a license exempt under Section 32B-1-201 from being
 considered in determining the total number of retail licenses that the commission may issue at
 any time.
        (43) (a) "Flavored malt beverage" means a beverage:
        (i) that contains at least .5% alcohol by volume;
        (ii) for which the producer is required to file a formula for approval with the federal
 Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
 is treated by processing, filtration, or another method of manufacture that is not generally
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        H.B. 247                                                                         Enrolled Copy
 recognized as a traditional process in the production of a beer, ale, porter, stout, lager, or malt
 liquor; and
        (iii) for which the producer is required to file a formula for approval with the federal
 Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
 includes an ingredient containing alcohol.
        (b) "Flavored malt beverage" is considered liquor for purposes of this title.
        (44) "Fraternal license" means a license issued in accordance with Chapter 5, Retail
 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
 commission as a fraternal license.
        (45) "Full-service restaurant license" means a license issued in accordance with
 Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
        (46) (a) "Furnish" means by any means to provide with, supply, or give an individual
 an alcoholic product, by sale or otherwise.
        (b) "Furnish" includes to:
        (i) serve;
        (ii) deliver; or
        (iii) otherwise make available.
        (47) "Guest" means an individual who meets the requirements of Subsection
 32B-6-407(9).
        (48) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
        (49) "Health care practitioner" mea