32B-11-403.  Specific authority and operational requirements for distillery manufacturing license.

(1)  A distillery manufacturing license allows a distillery manufacturing licensee to:

Terms Used In Utah Code 32B-11-403

  • Commission: means the Alcoholic Beverage Services Commission created in Section 32B-2-201. See Utah Code 32B-1-102
  • Container: means a receptacle that contains an alcoholic product, including:
(a) a bottle;
(b) a vessel; or
(c) a similar item. See Utah Code 32B-1-102
  • Department: means the Department of Alcoholic Beverage Services created in Section 32B-2-203. See Utah Code 32B-1-102
  • Distillery manufacturing license: means a license issued in accordance with 4. See Utah Code 32B-1-102
  • License: means :
    (a) a retail license;
    (b) a sublicense;
    (c) a license issued in accordance with 4;
    (d) a license issued in accordance with Chapter 11, Manufacturing and Related Licenses Act;
    (e) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
    (f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act; or
    (g) a license issued in accordance with Chapter 17, Liquor Transport License Act. See Utah Code 32B-1-102
  • Licensee: means a person who holds a license. See Utah Code 32B-1-102
  • Liquor: includes :
    (A) heavy beer;
    (B) wine; and
    (C) a flavored malt beverage. See Utah Code 32B-1-102
  • Manufacture: means to distill, brew, rectify, mix, compound, process, ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to others. See Utah Code 32B-1-102
  • Package agency: means a retail liquor location operated:
    (a) under an agreement with the department; and
    (b) by a person:
    (i) other than the state; and
    (ii) who is authorized by the commission in accordance with 6, to sell packaged liquor for consumption off the premises of the package agency. See Utah Code 32B-1-102
  • Permittee: means a person issued a permit under:
    (a) Chapter 9, Event Permit Act; or
    (b) Chapter 10, Special Use Permit Act. See Utah Code 32B-1-102
  • Person: means :Utah Code 68-3-12.5
  • Premises: means a building, enclosure, or room used in connection with the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product, unless otherwise defined in this title or rules made by the commission. See Utah Code 32B-1-102
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • Record: includes :
    (i) a book;
    (ii) a book of account;
    (iii) a paper;
    (iv) a contract;
    (v) an agreement;
    (vi) a document; or
    (vii) a recording in any medium. See Utah Code 32B-1-102
  • Special use permit: means a permit issued in accordance with Chapter 10, Special Use Permit Act. See Utah Code 32B-1-102
  • Staff: includes :
    (i) an officer;
    (ii) a director;
    (iii) an employee;
    (iv) personnel management;
    (v) an agent of the licensee, including a managing agent;
    (vi) an operator; or
    (vii) a representative. See Utah Code 32B-1-102
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • (a)  store, manufacture, transport, import, or export liquor;

    (b)  sell liquor to:

    (i)  the department;

    (ii)  an out-of-state customer who is at least 21 years old, as the state in which the customer is located permits; and

    (iii)  as provided in Subsection (2);

    (c)  purchase an alcoholic product for mixing and manufacturing purposes if the department is notified of:

    (i)  the purchase; and

    (ii)  the date of delivery;

    (d)  warehouse on the distillery manufacturing licensee’s licensed premises an alcoholic product that the distillery manufacturing licensee manufactures or purchases for manufacturing purposes;

    (e)  if the distillery manufacturing licensee holds two or more distillery manufacturing licenses under this chapter, transport an alcoholic product from one of the distillery manufacturing licensee’s licensed premises to another, if the transportation occurs for the purpose of:

    (i)  continuing or completing the manufacturing process; or

    (ii)  storing a bulk container or an alcoholic product that is distilled and packaged in the state, including the transport of an alcoholic product to a package agency located at any of the distillery manufacturing licensee’s licensed premises; and

    (f)  receive samples of an alcoholic product from a person outside the state for the sole purpose of performing tests and analysis, if the distillery manufacturing licensee:

    (i)  performs the tests and analysis in accordance with 27 C.F.R. Secs. 19.434(a), (c), (d), (e), and (f), Secs. 19.435 through 19.437, and Sec. 19.616;

    (ii)  keeps records of the samples received, including:

    (A)  all data required under 27 C.F.R. § 19.616;

    (B)  a description of the sample; and

    (C)  the date the distillery manufacturing licensee receives the sample; and

    (iii)  upon request, provides the records described in Subsection (1)(f)(ii) to the department.
  • (2) 

    (a)  Subject to the other provisions of this Subsection (2), a distillery manufacturing licensee may directly sell an alcoholic product to a person engaged within the state in:

    (i)  a mechanical or industrial business that requires the use of an alcoholic product; or

    (ii)  scientific pursuits that require the use of an alcoholic product.

    (b)  A person who purchases an alcoholic product under Subsection (2)(a) shall hold a valid special use permit issued in accordance with Chapter 10, Special Use Permit Act, authorizing the use of the alcoholic product.

    (c)  A distillery manufacturing licensee may sell to a special use permittee described in Subsection (2)(b) an alcoholic product only in the type for which the special use permit provides.

    (d)  The sale of an alcoholic product under this Subsection (2) is subject to rules prescribed by the department and the federal government.

    (3)  The federal definitions, standards of identity and quality, and labeling requirements for distilled liquor, in the regulations issued under Federal Alcohol Administration Act, 27 U.S.C. § 201 et seq., are adopted to the extent the regulations are not contrary to or inconsistent with laws of this state.

    (4)  If considered necessary, the commission or department may require:

    (a)  the alteration of the plant, equipment, or licensed premises;

    (b)  the alteration or removal of unsuitable alcoholic product-making equipment or material;

    (c)  a distillery manufacturing licensee to clean, disinfect, ventilate, or otherwise improve the sanitary and working conditions of the plant, licensed premises, and equipment; or

    (d)  that a record pertaining to the materials and ingredients used in the manufacture of an alcoholic product be made available to the commission or department upon request.

    (5)  A distillery manufacturing licensee may not permit an alcoholic product to be consumed on the distillery manufacturing licensee’s premises, except that:

    (a)  a distillery manufacturing licensee may allow the distillery manufacturing licensee’s on-duty staff to taste on the licensed premises an alcoholic product that the distillery manufacturing licensee manufactures on the distillery manufacturing licensee’s licensed premises without charge, but only in connection with the on-duty staff’s duties of manufacturing the alcoholic product during the manufacturing process and not otherwise;

    (b)  a distillery manufacturing licensee may allow a person who can lawfully purchase an alcoholic product for wholesale or retail distribution to consume a bona fide sample of the distillery manufacturing licensee’s product on the licensed premises; and

    (c)  a distillery manufacturing licensee may conduct a tasting as provided in Section 32B-11-210.

    Amended by Chapter 447, 2022 General Session