32B-11-503 (Effective 07/01/11) - Specific authority and operational requirements for brewery manufacturing license.
32B-11-503 (Effective 07/01/11). Specific authority and operational requirementsfor brewery manufacturing license.
(1) A brewery manufacturing license allows a brewery manufacturing licensee to:
(a) store, manufacture, brew, transport, or export beer, heavy beer, and flavored maltbeverages;
(b) sell heavy beer and a flavored malt beverage to:
(i) the department;
(ii) a military installation; or
(iii) an out-of-state customer;
(c) sell beer to a beer wholesaler licensee;
(d) in the case of a small brewer, in accordance with Subsection (5), sell beermanufactured by the small brewer to:
(i) a retail licensee;
(ii) an off-premise beer retailer; or
(iii) an event permittee; and
(e) warehouse on its premises an alcoholic product that the brewery manufacturinglicensee manufactures or purchases for manufacturing purposes.
(2) A brewery manufacturing licensee may not sell the following to a person within thestate 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 ormaterial;
(c) a brewery manufacturing licensee to clean, disinfect, ventilate, or otherwise improvethe 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 analcoholic product be available to the commission or department upon request.
(4) A brewery manufacturing licensee may not permit any beer, heavy beer, or flavoredmalt beverage to be consumed on the licensed premises, except under the circumstancesdescribed in this Subsection (4).
(a) A brewery manufacturing licensee may allow its off-duty staff to consume beer,heavy beer, or a flavored malt beverage on its premises without charge.
(b) A brewery manufacturing licensee may allow a person who can lawfully purchase thefollowing for wholesale or retail distribution to consume a bona fide sample of the brewerymanufacturing licensee's product on the licensed premises:
(i) beer;
(ii) heavy beer; or
(iii) a flavored malt beverage.
(c) (i) A brewery manufacturing licensee may operate on its licensed premises a retailfacility allowing consumption on premises of beer in a bottle or on draft if food is also available.
(ii) A retail facility located on the licensed premises of a brewery manufacturing licenseeshall be operated or supervised by the brewery manufacturing licensee.
(iii) In operating a retail facility under this Subsection (4)(c), a brewery manufacturing
licensee shall comply with the requirements of Chapter 7, Part 2, Off-premise Beer RetailerLocal Authority.
(5) (a) A small brewer shall own, lease, or maintain and control a warehouse facilitylocated in this state for the storage of beer to be sold to a person described in Subsection (1)(d) ifthe 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 inSubsection (1)(d).
(b) A small brewer may not sell beer to a person described in Subsection (1)(d) unlessthe 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 TaxCommission 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 inaccordance with this Subsection (5), except that the provision is considered to include an actiondescribed in Section 32B-1-205 made for the purpose of deceiving the State Tax Commission, oran official or employee of the State Tax Commission.
Enacted by Chapter 276, 2010 General Session