Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
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
manufacturing license: means an alcoholic product manufacturing license issued under this chapter. See Utah Code 32B-11-102
Military installation: means a base, air field, camp, post, station, yard, center, or homeport facility for a ship:
(i)
(A)
under the control of the United States Department of Defense; or
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
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
Small brewer: means a brewer who manufactures less than 60,000 barrels of beer, heavy beer, and flavored malt beverage per year, as the department calculates by:
(a)
if the brewer is part of a controlled group of manufacturers, including the combined volume totals of production for all breweries that constitute the controlled group of manufacturers; and
(b)
excluding beer, heavy beer, or flavored malt beverage the brewer:
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, brew, transport, or export beer, heavy beer, and flavored malt beverages;
(b)
sell heavy beer and a flavored malt beverage to:
(i)
the department;
(ii)
a military installation; or
(iii)
an out-of-state customer who is at least 21 years old, as the state in which the customer is located permits;
(c)
sell beer to a beer wholesaler licensee;
(d)
in the case of a small brewer, in accordance with Subsection (5), sell beer manufactured by the small brewer to:
(i)
a retail licensee;
(ii)
an off-premise beer retailer; or
(iii)
an event permittee;
(e)
warehouse on the brewery manufacturing licensee’s premises an alcoholic product that the brewery manufacturing licensee manufactures or purchases for manufacturing purposes; and
(f)
if the brewery manufacturing licensee holds two or more brewery manufacturing licenses, transport beer, heavy beer, or flavored malt beverage from one of the brewery manufacturing licensee’s licensed premises to another, if the transportation occurs for the purpose of:
(i)
continuing or completing the manufacturing process; or
(ii)
transferring the beer, heavy beer, or flavored malt beverage for storage at a licensed premises of the brewery manufacturing licensee that is at a package agency.
(2)
A brewery manufacturing licensee may not sell the following to a person within the state except the department or a military installation:
(a)
heavy beer; or
(b)
a flavored malt beverage.
(3)
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 any unsuitable alcoholic product-making equipment or material;
(c)
a brewery 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 available to the commission or department upon request.
(4)
A brewery manufacturing licensee may not permit any beer, heavy beer, or flavored malt beverage to be consumed on the licensed premises, except that:
(a)
a brewery manufacturing licensee may allow the brewery manufacturing licensee’s on-duty staff to taste the alcoholic product that the brewery manufacturing licensee manufactures on the brewery manufacturing licensee’s 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 brewery manufacturing licensee may allow a person who can lawfully purchase the following for wholesale or retail distribution to consume a bona fide sample of the brewery manufacturing licensee’s product on the licensed premises:
(i)
beer;
(ii)
heavy beer; or
(iii)
a flavored malt beverage;
(c)
a brewery manufacturing licensee may operate a retail facility that complies with the requirements of 2; and
(d)
a brewery manufacturing licensee may conduct a tasting as provided in Section 32B-11-210.
(5)
(a)
A small brewer shall own, lease, or maintain and control a warehouse facility located in this state for the storage of beer to be sold to a person described in Subsection (1)(d) if the small brewer:
(i)
(A)
(I)
is located in this state; and
(II)
holds a brewery manufacturing license; or
(B)
(I)
is located outside this state; and
(II)
holds a certificate of approval to sell beer in this state; and
(ii)
sells beer manufactured by the small brewer directly to a person described in Subsection (1)(d).
(b)
A small brewer may not sell beer to a person described in Subsection (1)(d) unless the beer:
(i)
is manufactured by the small brewer; and
(ii)
is first placed in the small brewer’s warehouse facility in this state.
(c)
(i)
A small brewer warehouse shall make and maintain complete beer importation, inventory, tax, distribution, sales records, and other records as the department and State Tax Commission may require.
(ii)
The records described in Subsection (5)(c)(i) are subject to inspection by:
(A)
the department; and
(B)
the State Tax Commission.
(iii)
Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (5), except that the provision is considered to include an action described in Section 32B-1-205 made for the purpose of deceiving the State Tax Commission, or an official or employee of the State Tax Commission.
(6)
(a)
Subject to Subsection (7), a brewery manufacturing licensee may not sell beer in this state except under a written agreement with a beer wholesaler licensee in this state.
(b)
An agreement described in Subsection (6)(a) shall:
(i)
create a restricted exclusive sales territory that is mutually agreed upon by the persons entering into the agreement;
(ii)
designate the one or more brands that may be distributed in the sales territory; and
(iii)
set forth the exact geographical area of the sales territory.
(c)
A brewery manufacturing licensee may have more than one agreement described in Subsection (6)(a) if each brand of the brewery manufacturing licensee is covered by one exclusive sales territory.
(d)
A brewery manufacturing licensee may not enter into an agreement described in Subsection (6)(a) with more than one beer wholesaler licensee to distribute the same brand of beer in the same sales territory or any portion of the sales territory.
(7)
A small brewer is not subject to the requirements of Subsection (6).
