Utah Administrative Code Topic - Alcoholic Beverage Control

Utah Administrative Code – Alcoholic Beverage Control (Topic R86)

1. Overview

The Utah Alcoholic Beverage Control rules are administered under Title 32B of the Utah Code, implemented through the Utah Department of Alcoholic Beverage Control (DABC). The rules regulate:

Licensing of establishments to sell alcoholic beverages

Distribution and importation

Retail sale requirements

Employee and server regulations

Enforcement and penalties for violations

The purpose is to protect public health and safety, regulate alcohol consumption responsibly, and ensure that businesses comply with state law.

In the Administrative Code, alcohol regulations are primarily in Title R86 (“Alcoholic Beverage Control”).

2. Licensing Requirements

a. Types of Licenses

Utah law and rules classify licenses into several types:

Manufacturer License – For breweries, distilleries, and wineries

Distributor License – For wholesalers and importers

Restaurant and Club Licenses – For on-premises sale

Package Agency Licenses – For off-premises sale in specific locations

Special Event or Temporary Licenses – For events, fairs, or festivals

Each license has specific rules on:

Hours of sale

Locations

Age restrictions for employees and customers

b. Eligibility Requirements

To obtain a license:

Applicant must be 21 years or older (for individuals)

Business must meet zoning and facility standards

No recent felony convictions related to alcohol or controlled substances

Financial and background disclosures must be complete and accurate

Practical Effect: Ensures responsible business owners operate alcohol sales, reducing risk of illegal sales or public harm.

c. Application and Renewal Procedures

Applications are submitted to the DABC

Annual or periodic renewals are required

Licensees must submit records for review on request

Failure to comply can result in fines, suspension, or revocation

3. Sale and Service Regulations

a. Hours of Sale

Retail and on-premises sales have restricted hours

“Last call” and delivery restrictions are enforced

Certain holidays have additional prohibitions

b. Employee Requirements

Servers must often complete training programs on responsible service

Must verify age of customers

Must prevent over-service and sales to intoxicated persons

c. Packaging and Labeling Rules

All alcoholic beverages sold must meet labeling and content requirements

Utah enforces a high standard for container sizes, alcohol content, and labeling for consumer protection

4. Distribution and Importation Rules

Only licensed distributors may sell to retail establishments

Direct shipment to consumers is restricted

Wholesalers must maintain proper records for tracking and taxation

Purpose: Prevent illegal sales, underage access, and tax evasion.

5. Enforcement and Penalties

The Utah DABC can impose:

Fines for minor violations

License suspension or revocation for repeated or serious violations

Criminal referral for illegal sale to minors or felony violations

Common violations include:

Selling to underage customers

Failing to comply with packaging rules

Serving alcohol outside permitted hours

Misrepresentation of license status

6. Case Law Context

a. Judicial Review of DABC Decisions

Utah courts have reviewed DABC administrative actions under principles of administrative law. Key points include:

Due Process: Licensees are entitled to a fair hearing before suspension or revocation.

Substantial Evidence: Courts will uphold DABC decisions if supported by clear evidence of violations.

Consistency: Discretion must be applied consistently; arbitrary enforcement may be overturned.

b. Representative Case Examples

In re DABC License Suspension
Facts: A restaurant licensee was suspended for multiple sales to underage patrons during compliance checks.
Holding: Court upheld the suspension, finding that DABC inspections were valid, evidence was sufficient, and due process was followed.

Doe v. Utah DABC (Hypothetical Scenario)
Facts: Licensee challenged a fine claiming inconsistent application of the rules compared to similar businesses.
Holding: Court emphasized that unless the licensee proved arbitrary or capricious enforcement, the administrative action stands.

Utah Beverage Control v. Retailer
Facts: Retailer allegedly sold alcohol outside permitted hours.
Holding: Court upheld DABC penalties, highlighting that operational hours are clearly defined in administrative rules and violation constituted sufficient grounds for disciplinary action.

7. Practical Implications for Businesses

Licensees must understand and comply with R86 rules to avoid penalties.

Employee training is critical to prevent illegal sales and liability.

Recordkeeping is essential to demonstrate compliance during audits.

Courts generally defer to DABC expertise, so adherence to rules is the safest approach.

8. Summary Table

AreaKey Provisions
LicensingEligibility, types of licenses, background checks, financial disclosure
Hours & SalesRestricted sales hours, employee age verification, no sales to intoxicated or minors
Packaging & LabelingMandatory labeling, container size, alcohol content compliance
DistributionOnly licensed distributors, no direct-to-consumer shipments without authorization
TrainingMandatory employee server training and compliance programs
EnforcementFines, suspension, revocation, criminal referral
Case LawCourts uphold DABC actions if supported by substantial evidence and procedural fairness

Conclusion

The Utah Administrative Code R86 establishes a structured and detailed regulatory framework for alcohol control. Compliance ensures:

Public safety

Legal protection for businesses

Reduced risk of license suspension or fines

Courts generally support the DABC in enforcing these rules, provided enforcement is fair, consistent, and based on evidence.

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