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[Utah Code Table of Contents]
[TITLE 32a. Table of Contents]
32A-11-101 Commission's power to issue licenses.
(1) (a) The commission may issue beer wholesaling licenses for the import, purchase, storage, sale, and distribution of beer.
(b) The license entitles the licensee to:
(i) purchase and import beer into the state;
(ii) store beer in approved warehouses; and
(iii) sell and distribute beer directly to:
(A) licensed beer retailers; and
(B) holders of temporary retail beer permits issued by the commission for temporary special events pursuant to Chapter 10, Part 3, Temporary Special Event Beer Permits.
(2) (a) A person may not import, purchase, store, sell, or distribute beer to retailers or act in any way as a beer wholesaler unless the person has been issued a beer wholesaler's license by the commission.
(b) Nothing in this section precludes a small brewer from selling beer it has manufactured directly to a licensed beer retailer.
(c) Violation of this subsection is a class A misdemeanor.
(3) The commission may prescribe by policy, directive,
or rule, consistent with this title, the general operational
requirements of wholesaling licensees relating to physical
facilities, conditions of purchase, storage, sale, importation,
distribution, or transportation of beer within the state.
2003
32A-11-102 Application and renewal requirements.
(1) A person seeking a beer wholesaling license under this chapter shall file a written application with the department, in a form prescribed by the department. The application shall be accompanied by:
(a) a nonrefundable $250 application fee;
(b) an initial license fee of $2,000, which is refundable if a license is not granted;
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified in Section 32A-11-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and form satisfactory to the department;
(g) a signed consent form stating that the licensee will permit any authorized representative of the commission, department, or any peace officer unrestricted right to enter the licensed premises;
(h) a statement of the brands of beer the applicant is authorized to sell and distribute;
(i) a statement of all geographical areas in which the applicant is authorized to sell and distribute beer;
(j) in the case of an applicant that is a partnership, corporation, or limited liability company, proper verification evidencing that the person or persons signing the beer wholesaling license application are authorized to so act on behalf of the partnership, corporation, or limited liability company; and
(k) any other documents and evidence as the department may direct.
(2) (a) (i) All beer wholesaling licenses expire on December 31 of each year.
(ii) Persons desiring to renew their beer wholesaling license shall submit by no later than November 30 of the year the license expires:
(A) a completed renewal application to the department; and
(B) a renewal fee in the following amount:
Case Sales in Previous License Year for the Licensee
Renewal Fee under 500,000 cases
$1,000 equals or exceeds 500,000 cases but less than 1,000,000 cases
$2,000 equals or exceeds 1,000,000 cases
$3,000.
(iii) Failure to meet the renewal requirements results in an automatic forfeiture of the license effective on the date the existing license expires.
(iv) Renewal applications shall be in a form prescribed by the department.
(b) The annual renewal fee prescribed in this Subsection (2) is independent of any like license fee which may be assessed by the local authority of the city or county in which the wholesaler's warehouse is located. Any local fees may not exceed $300. Payment of local fees shall be made directly to the local authority assessing them.
(3) To ensure compliance with Subsection 32A-11-106 (1)(g), the commission may suspend or revoke a beer wholesaling license if a beer wholesaling licensee does not immediately notify the department of any change in:
(a) ownership of the licensee;
(b) for a corporate owner, the:
(i) corporate officers or directors; or
(ii) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or
(c) for a limited liability company:
(i) managers; or
(ii) members owning at least 20% of the limited liability
company.
2003
32A-11-103 Qualifications.
(1) (a) The commission may not issue a beer wholesaling license to any person who has been convicted of:
(i) a felony under any federal or state law;
(ii) any violation of any federal or state law or local ordinance concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic products;
(iii) any crime involving moral turpitude; or
(iv) on two or more occasions within the five years before the day on which the license is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug.
(b) In the case of a partnership, corporation, or limited liability company, the proscription under Subsection (1)(a) applies if any of the following has been convicted of any offense described in Subsection (1)(a):
(i) a partner;
(ii) a managing agent;
(iii) a manager;
(iv) an officer;
(v) a director;
(vi) a stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation; or
(vii) a member who owns at least 20% of the applicant limited liability company.
(c) The proscription under Subsection (1)(a) applies if any person employed to act in a supervisory or managerial capacity for the wholesaler has been convicted of any offense as provided in Subsection (1)(a).
(2) The commission may immediately suspend or revoke a beer wholesaling license if after the day on which the beer wholesaling license is granted, a person described in Subsection (1)(a), (b), or (c):
(a) is found to have been convicted of any offense described in Subsection (1)(a) prior to the license being granted; or
(b) on or after the day on which the license is granted:
(i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
(ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug; and
(B) was convicted of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug within five years before the day on which the person is convicted of the offense described in Subsection (2)(b)(ii)(A).
(3) The director may take emergency action by immediately suspending the operation of a beer wholesaling license according to the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during which the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
(a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii); or
(b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug; and
(ii) was convicted of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug within five years before the day on which the person is arrested on a charge described in Subsection (3)(b)(i).
(4) (a) (i) The commission may not grant a beer wholesaling license to any person who has had any type of license, agency, or permit issued under this title revoked within the last three years.
(ii) The commission may not grant a beer wholesaling license to an applicant that is a partnership, corporation, or limited liability company if any partner, managing agent, manager, officer, director, stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation, or member who owns at least 20% of the applicant limited liability company is or was:
(A) a partner or managing agent of any partnership that had any type of license, agency, or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or stockholder who holds or held at least 20% of the total issued and outstanding stock of any corporation that had any type of license, agency, or permit issued under this title revoked within the last three years; or
(C) a manager or member who owns or owned at least 20% of any limited liability company that had any type of license, agency, or permit issued under this title revoked within the last three years.
(b) An applicant that is a partnership, corporation, or limited liability company may not be granted a beer wholesaling license if any of the following had any type of license, agency, or permit issued under this title revoked while acting in that person's individual capacity within the last three years:
(i) a partner or managing agent of the applicant partnership;
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation; or
(iii) any manager or member who owns at least 20% of the applicant limited liability company.
(c) A person acting in an individual capacity may not be granted a beer wholesaling license if that person was:
(i) a partner or managing agent of a partnership that had any type of license, agency, or permit issued under this title revoked within the last three years;
(ii) a managing agent, officer, director, or stockholder who held at least 20% of the total issued and outstanding stock of a corporation that had any type of license, agency, or permit issued under this title revoked within the last three years; or
(iii) a manager or member who owned at least 20% of the limited liability company that had any type of license, agency, or permit issued under this title revoked within the last three years.
(5) (a) A minor may not be:
(i) granted a beer wholesaling license; or
(ii) employed by a licensee to handle beer.
(b) The commission may not grant a beer wholesaling license to an applicant that is a partnership, corporation, or limited liability company if any of the following is a minor:
(i) a partner or managing agent of the applicant partnership;
(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation; or
(iii) a manager or member who owns at least 20% of the applicant limited liability company.
(6) (a) A beer wholesaler may not be issued, directly or indirectly, nor hold, through any wholly or partially owned subsidiaries or otherwise, a brewery license or a retail beer license simultaneously with a wholesaling license.
(b) A retail beer licensee may not be issued, directly or indirectly, nor hold, through any wholly or partially owned subsidiaries or otherwise, a wholesaling license.
(7) The commission may not grant a beer wholesaling license to any person who has not met any applicable federal requirements for beer wholesaling.
(8) If any person to whom a license has been issued under
this chapter no longer possesses the qualifications required
by this title for obtaining that license, the commission
may suspend or revoke that license.
2003
32A-11-104 Commission and department duties before issuing licenses.
(1) Before any beer wholesaling license is issued by the commission, the department shall conduct an investigation and may hold public hearings for the purpose of gathering information and making recommendations to the commission as to whether or not a license should be granted. The information shall be forwarded to the commission to aid in its determination.
(2) Before issuing any beer wholesaling license, the commission shall:
(a) determine that the applicant has complied with all basic qualifications and requirements for making application for a license as provided by Sections 32A-11-102 and 32A-11-103 , and that the application is complete;
(b) consider the applicant's ability to manage and operate a beer wholesaling operation, including but not limited to management experience, past wholesaling experience, the brands the applicant intends to wholesale, and the means the applicant intends to use to distribute beer;
(c) consider the physical characteristics of the premises where it is proposed that beer be stored by the applicant, such as location, proximity to transportation, and condition, size, and security of the premises; and
(d) consider any other factors or circumstances it considers
necessary.
1994
32A-11-105 Bond.
(1) Each wholesaling licensee shall post a cash or corporate surety bond in the penal sum of $10,000 payable to the department, which the licensee has procured and must maintain for so long as the licensee continues to operate as a wholesaling licensee.
(2) The bond shall be in a form approved by the attorney general, conditioned upon the licensee's faithful compliance with this title and the rules of the commission.
(3) If the surety bond is canceled due to the licensee's
negligence, a $300 reinstatement fee may be assessed. No
part of any cash bond so posted may be withdrawn during the
period the license is in effect. A bond filed by a licensee
may be forfeited if the license is finally revoked.
1990
32A-11-106 Operational restrictions.
Each person granted a beer wholesaling license, and the employees and management personnel of the licensee, shall comply with the following conditions and requirements. Failure to comply may result in a suspension or revocation of the beer wholesaling license or other disciplinary action taken against individual employees or management personnel of the licensee.
(1) A licensee may not wholesale any beer manufactured within the state by a brewer who is not licensed by the commission as a manufacturing licensee.
(2) A licensee may not wholesale any beer manufactured out of state by a brewer who has not obtained a certificate of approval from the department.
(3) (a) A licensee may not sell or distribute beer to any person within the state except licensed beer retailers or holders of temporary retail beer permits issued by the commission for temporary special events pursuant to Chapter 10, Part 3, Temporary Special Event Beer Permits.
(b) A violation of this Subsection (3) is a class A misdemeanor.
(4) (a) A licensee may not sell or distribute any beer to any retailer outside of the geographic area designated on its application, except that if a licensee is temporarily unable to supply retail dealers within its authorized geographical area, the department may grant temporary authority to another licensed wholesaler who distributes the same brand in another area to supply retailers.
(b) A violation of this Subsection (4) is a class B misdemeanor.
(5) (a) Every licensee shall own, lease, or otherwise control and maintain a warehouse facility located in this state for the receipt, storage, and further distribution of all beer sold by the licensee to any person within the state.
(b) A licensee may not sell beer to any person in this state, other than the department, unless the beer has first been physically removed from the vehicle used to transport the beer from the supplier to the licensee and delivered into the actual possession and control of the licensee in its warehouse or other facility.
(6) Each beer wholesaling licensee shall maintain accounting and other records and documents as the department may require. Any licensee or person acting for the licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account or other documents of the licensee required to be made, maintained, or preserved by this title or the rules of the commission for the purpose of deceiving the commission or the department, or any of their officials or employees, is subject to the immediate suspension or revocation of the beer wholesaling license and possible criminal prosecution under Chapter 12, Criminal Offenses.
(7) A licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the beer wholesaling license to any person, whether for monetary gain or not, unless it is done:
(a) in accordance with the commission rules; and
(b) after written consent has been given by the commission.
(8) A licensee may not sell or distribute any alcoholic
beverage that is not clearly labeled in a manner reasonably
calculated to put the public on notice that the beverage
is an alcoholic beverage. The beverage shall bear the label
"alcoholic beverage" or a manufacturer's label which in common
usage apprises the general public that the beverage contains
alcohol.
2003
