Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 6006 (2020S6)

Sponsor

Rep. Hawkes, T.

Final action

Governor Signed 8/31/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• delays the expiration date of certain retail licenses in the year 2020;
• adjusts percentage of annual gross receipts from the sale of alcoholic products that a reception center licensee may maintain and what is included in that percentage;
• defines "hospitality room" in relation to a public service permittee;
• allows a public service permittee operating at an international airport to change location under certain conditions;
• establishes commission power and duties in approving a public service permittee's change in location request;
• provides a repeal date for provisions regarding delayed retail license renewals; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

ALCOHOL LICENSE AND PERMIT AMENDMENTS
SIXTH SPECIAL SESSION
STATE OF UTAH
Chief Sponsor: Timothy D. Hawkes
Senate Sponsor: 
Jerry W. Stevenson
<cospons>
LONG TITLE
General Description:
This bill amends provisions of the Alcohol Beverage Control Act regarding certain
licenses and permits.
Highlighted Provisions:
This bill:
▸ delays the expiration date of certain retail licenses in the year 2020;
▸ adjusts percentage of annual gross receipts from the sale of alcoholic products that a
reception center licensee may maintain and what is included in that percentage;
▸ defines "hospitality room" in relation to a public service permittee;
▸ allows a public service permittee operating at an international airport to change
location under certain conditions;
▸ establishes commission power and duties in approving a public service permittee's
change in location request;
▸ provides a repeal date for provisions regarding delayed retail license renewals; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
32B-5-202
, as last amended by Laws of Utah 2020, Chapter 219
32B-6-803
, as last amended by Laws of Utah 2020, Chapter 219
32B-10-206
, as last amended by Laws of Utah 2020, Chapters 219 and 354
32B-10-302
, as enacted by Laws of Utah 2010, Chapter 276
32B-10-303
, as last amended by Laws of Utah 2011, Chapter 334
32B-10-304
, as last amended by Laws of Utah 2011, Chapter 334
63I-2-232
, as last amended by Laws of Utah 2020, Chapter 219
ENACTS:
32B-10-305
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
32B-5-202
 is amended to read:
32B-5-202.
Renewal requirements.
(1) A retail license expires each year on the day specified in the relevant chapter or part
for that type of retail license.
(2) (a) To renew a person's retail license, a retail licensee shall, by no later than the day
specified in the relevant chapter or part for the type of retail license that the person seeks to
renew, submit:
(i) a completed renewal application in a form prescribed by the department; and
(ii) a renewal fee in the amount specified in the relevant chapter or part for the type of
retail license that the person seeks to renew.
(b) A retail licensee shall submit a responsible alcohol service plan as part of the retail
licensee's renewal application if, since the retail licensee's most recent application or renewal,
the retail licensee:
(i) made substantial changes to the retail licensee's responsible alcohol service plan; or
(ii) violated a provision of this chapter.
(c) The department may audit a retail licensee's responsible alcohol service plan.
(3) Failure to meet the renewal requirements results in an automatic forfeiture of the
retail license effective on the day on which the existing retail license expires.
(4) (a) In the year 2020, the following retail licenses expire on December 22:
(i) a full-service restaurant license;
(ii) a limited-service restaurant license;
(iii) an airport lounge license;
(iv) an on-premise banquet license;
(v) a reception center license;
(vi) a resort license; and
(vii) a hotel license.
(b) To renew a license described in Subsection (4)(a) in the year 2020, a person shall:
(i) submit to the department on or before December 21, a completed renewal
application in a form the department prescribes; and
(ii) ensure that the department receives on or before December 21, a renewal fee in the
amount specified in the relevant chapter or part for the type of retail license that the person
seeks to renew.
(c) The provisions of this Subsection (4) supersede any conflicting provision of law in
this title.
Section 2. Section 
32B-6-803
 is amended to read:
32B-6-803.
Commission's power to issue reception center license.
(1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on the
person's premises as a reception center, the person shall first obtain a reception center license
from the commission in accordance with this part.
(2) The commission may issue a reception center license to establish reception center
licensed premises at places and in numbers the commission considers proper for the storage,
sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
as a reception center.
(3) Subject to Section 
32B-1-201
, the commission may not issue a total number of
reception center licenses that at any time exceeds the number determined by dividing the
population of the state by 251,693.
(4) The commission may not issue a reception center license for premises that do not
meet the proximity requirements of Section 
32B-1-202
.
(5) (a) To be licensed as a reception center, a person [
shall maintain at least 50%
] 
may
not maintain more than 30%
 of the person's total annual gross receipts from the sale of [
food,
which does not include:
] 
alcoholic products.
[
(i) mix for an alcoholic product; or
]
[
(ii) a charge in connection with the furnishing of an alcoholic product.
]
(b) For purposes of Subsection (5)(a):
(i) an alcoholic product includes:
(A) mix for an alcoholic product; and
(B) a charge in connection with the furnishing of an alcoholic product; and
(ii) gross receipts do not include any charge for renting a room or facility.
[
(b)
] 
(c)
 A reception center licensee shall report the information necessary to show
compliance with this Subsection (5) to the department on an annual basis.
Section 3. Section 
32B-10-206
 is amended to read:
32B-10-206.
General operational requirements for special use permit.
(1) (a) A special use permittee and staff of the special use permittee shall comply with
this title and rules of the commission, including the relevant part of the chapter that applies to
the type of special use permit held by the special use permittee.
(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
(i) a special use permittee;
(ii) individual staff of a special use permittee; or
(iii) a special use permittee and staff of the special use permittee.
(c) The commission may suspend or revoke a special use permit with or without cause.
(2) (a) If there is a conflict between this part and the relevant part under this chapter for
the specific type of special use permit, the relevant part under this chapter governs.
(b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a
special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
manufacture an alcoholic product authorized for the special use permit that is held by the
special use permittee.
(c) Notwithstanding that this part or the relevant part under this chapter for the type of
special use permit held by a special use permittee refers to "special use permittee," a person
involved in the purchase, use, storage, sale, offering for sale, allowing consumption, or
manufacture of an alcoholic product for which the special use permit is issued is subject to the
same requirement or prohibition.
(3) (a) A special use permittee shall make and maintain a record, as required by
commission rule, of any alcoholic product purchased, used, sold, or manufactured.
(b) Section 
32B-1-205
 applies to a record required to be made or maintained in
accordance with this Subsection (3).
(4) (a) Except as otherwise provided in this title, a special use permittee may not
purchase liquor except from a state store or package agency.
(b) A special use permittee may transport liquor purchased by the special use permittee
in accordance with this Subsection (4) from the place of purchase to the special use permittee's
premises.
(c) A special use permittee shall purchase liquor at prices set by the commission.
(d) When authorized by a special use permit, a special use permittee may purchase and
receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
educational, scientific, or manufacturing.
(e) A health care facility may purchase and receive an alcoholic product directly from a
manufacturer for use at the health care facility.
(5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
manufacture, or allow consumption of an alcoholic product in a location other than as
designated in a special use permittee's
:
(a)
 application[
.
]
; or
(b) change of location request, as described in Section 
32B-10-305
, if:
(i) the special use permittee is a public service permittee; and
(ii) the commission approved the special use permittee's change in location request
.
(6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
furnish an alcoholic product to:
(a) a minor;
(b) a person actually, apparently, or obviously intoxicated;
(c) a known interdicted person; or
(d) a known habitual drunkard.
(7) A special use permittee may not employ a minor to handle an alcoholic product.
(8) (a) The location specified in a special use permit may not be transferred from one
location to another location, except as provided in Chapter 8a, Transfer of Alcohol License
Act.
(b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
attempt in any way to dispose of the permit to another person whether for monetary gain or not,
except as provided in Chapter 8a, Transfer of Alcohol License Act.
(9) A special use permittee may not purchase, use, mix, store, sell, offer for sale,
furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized
by the special use permit.
(10) The commission may prescribe by policy or rule consistent with this title, the
general operational requirements of a special use permittee relating to:
(a) physical facilities;
(b) conditions of purchase, use, storage, sale, consumption, or manufacture of an
alcoholic product;
(c) purchase, storage, and sales quantity limitations; and
(d) other matters considered appropriate by the commission.
Section 4. Section 
32B-10-302
 is amended to read:
32B-10-302.
Definitions.
[
Reserved
] 
As used in this part, "hospitality room" means a room or facility:
(1) that a public service permittee operates; and
(2) in which an alcoholic product is sold, offered for sale, furnished, or consumed.
Section 5. Section 
32B-10-303
 is amended to read:
32B-10-303.
Specific application and renewal requirements for public service
permit.
(1) To obtain a public service permit, in addition to complying with Section
32B-10-202
, a person shall submit to the department:
(a) a statement of the total of regularly numbered flights, trains, buses, boats, or other
types of public conveyance for which the person plans to use the special use permit;
(b) a floor plan of any room or facility in which the person plans to establish a
hospitality room [
where the sale, offer for sale, or furnishing of an alcoholic product is made to
a patron then in transit, using the host company's airline, railroad, bus, boat, or other public
conveyance
]; and
(c) evidence of proximity of a proposed hospitality room to the arrival and departure
area used by a person traveling on the [
host company's
] 
person's
 airline, railroad, bus, boat, or
other public conveyance.
(2) (a) The nonrefundable application fee for a public service permit is $75.
(b) The initial permit fee for a public service permit is $250.
(c) The bond amount required for a public service permittee is the penal sum of $1,000.
(3) (a) To renew a public service permit, a person shall comply with Section
32B-10-203
.
(b) The renewal fee for a public service permit is $30 for each regularly numbered
passenger airplane flight, passenger train, bus, boat, or any other regularly scheduled public
conveyance upon which an alcoholic product is sold, offered for sale, or furnished.
Section 6. Section 
32B-10-304
 is amended to read:
32B-10-304.
Specific operational requirements for a public service permit.
(1) (a) In addition to complying with Section 
32B-10-206
, a public service permittee
and staff of the public service permittee shall comply with this section.
(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
(i) a public service permittee;
(ii) individual staff of a public service permittee; or
(iii) both a public service permittee and staff of the public service permittee.
(2) (a) A public service permittee whose public conveyances operate on an interstate
basis may do the following:
(i) purchase an alcoholic product outside of the state;
(ii) bring an alcoholic product purchased outside of the state into the state; and
(iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state
to a passenger traveling on the public service permittee's public conveyance for consumption
while en route on the public conveyance.
(b) A public service permittee whose public conveyance operates solely within the
state, to sell, offer for sale, or furnish to a passenger traveling on the public service permittee's
public conveyance for consumption while en route on the public conveyance, shall purchase:
(i) liquor from a state store or package agency; and
(ii) beer from a beer wholesaler licensee.
(3) (a) A public service permittee may establish a hospitality room [
in which an
alcoholic product may be stored, sold, offered for sale, furnished, and consumed
], if:
(i) the room is located within a depot, terminal, or similar facility adjacent to and
servicing the public service permittee's airline, railroad, bus, boat, or other public conveyance;
(ii) the room is completely enclosed and the interior is not visible to the public;
(iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a
person:
(A) then in transit using the [
host company's
] 
public service permittee's
 airline,
railroad, bus line, or other public conveyance; and
(B) holding a valid boarding pass or similar travel document issued by the [
host
company
] 
public service permittee
; and
(iv) (A) liquor is purchased from:
(I) a state store; or
(II) a package agency; and
(B) beer is purchased from a beer wholesaler licensee.
(b) (i) A public service permittee operating a hospitality room shall display in a
prominent place in the hospitality room, a sign in large letters that consists of text in the
following order:
(A) a header that reads: "WARNING";
(B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
can cause birth defects and permanent brain damage for the child.";
(C) a statement in smaller font that reads: "Call the Utah Department of Health at
[insert most current toll-free number] with questions or for more information.";
(D) a header that reads: "WARNING"; and
(E) a warning statement that reads: "Driving under the influence of alcohol or drugs is
a serious crime that is prosecuted aggressively in Utah."
(ii) (A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a
different font style than the text described in Subsections (3)(b)(i)(D) and (E).
(B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the
same font size.
(iii) The Department of Health shall work with the commission and department to
facilitate consistency in the format of a sign required under this section.
(c) A hospitality room shall be operated in accordance with this chapter and rules
adopted by the commission.
Section 7. Section 
32B-10-305
 is enacted to read:
 32B-10-305.
Change in location request for a public service permit.
(1) A public service permittee operating at an international airport may request a
change in location within the international airport, if the international airport requires the
public service permittee to relocate to another location within the international airport.
(2) To request a change in location, a public service permittee described in Subsection
(1) shall, in a manner prescribed by the department, submit to the department:
(a) a statement of the total number of regularly numbered flights for which the public
service permittee plans to use the special use permit;
(b) a floor plan of any room or facility in which the public service permittee plans to
establish a hospitality room;
(c) evidence of the proximity of each proposed hospitality room to the arrival and
departure area used by a person traveling the public service permittee's airline; and
(d) any other information the department requires.
(3) (a) Before approving a public service permittee's request to change location at an
international airport, the commission shall:
(i) determine that the public service permittee filed a complete change in location
request, as described in Subsection (2);
(ii) determine that the public service permittee is in compliance with this chapter and
part;
(iii) consider the physical characteristics of the premises where an alcoholic product is
proposed to be used, mixed, stored, sold, offered for sale, or furnished, including:
(A) the conditions of the premises;
(B) public visibility; and
(C) safety considerations; and
(iv) consider any other factor the commission considers necessary.
(b) The commission may delegate to the department:
(i) the authority to approve a change in location for a public service permittee at an
international airport; and
(ii) the duties described in this Subsection (3).
(4) Upon commission approval of the public service permittee's request to change
location, the public service permittee shall move to the newly approved location within the
international airport.
Section 8. Section 
63I-2-232
 is amended to read:
63I-2-232.
Repeal dates -- Title 32B.
(1) Subsection 
32B-1-102
(9) is repealed July 1, 2022. 
(2) Subsection 
32B-1-407
(3)(d) is repealed July 1, 2022.
(3) Section 
32B-2-211.1
 is repealed November 1, 2020.
(4) Subsection 
32B-5-202
(4), which addresses license renewal during 2020, is repealed
January 1, 2021.
[
(4)
] 
(5)
 Subsections 
32B-6-202
(3) and (4) are repealed July 1, 2022.
[
(5)
] 
(6)
 Section 
32B-6-205
 is repealed July 1, 2022.
[
(6)
] 
(7)
 Subsection 
32B-6-205.2
(16) is repealed July 1, 2022.
[
(7)
] 
(8)
 Section 
32B-6-205.3
 is repealed July 1, 2022.
[
(8)
] 
(9)
 Subsections 
32B-6-302
(3) and (4) are repealed July 1, 2022.
[
(9)
] 
(10)
 Section 
32B-6-305
 is repealed July 1, 2022.
[
(10)
] 
(11)
 Subsection 
32B-6-305.2
(15) is repealed July 1, 2022.
[
(11)
] 
(12)
 Section 
32B-6-305.3
 is repealed July 1, 2022.
[
(12)
] 
(13)
 Section 
32B-6-404.1
 is repealed July 1, 2022.
[
(13)
] 
(14)
 Section 
32B-6-409
 is repealed July 1, 2022.
[
(14)
] 
(15)
 Subsection 
32B-6-703
(2)(e)(iv) is repealed July 1, 2022.
[
(15)
] 
(16)
 Subsections 
32B-6-902
(1)(c), (1)(d), and (2) are repealed July 1, 2022.
[
(16)
] 
(17)
 Section 
32B-6-905
 is repealed July 1, 2022.
[
(17)
] 
(18)
 Subsection 
32B-6-905.1
(15) is repealed July 1, 2022.
[
(18)
] 
(19)
 Section 
32B-6-905.2
 is repealed July 1, 2022.
[
(19)
] 
(20)
 Subsection 
32B-8d-104
(3) is repealed July 1, 2022.
Section 9. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.