(1) The state licensing authority shall: (a) Grant or refuse licenses for the manufacture, distribution, and sale of alcohol beverages as provided by law and suspend or revoke such licenses upon a violation of this article 3, article 4 or 5 of this title 44, or any rule adopted pursuant to those articles; (b) Make general rules and special rulings and findings as necessary for the proper regulation and control of the manufacture, distribution, and sale of alcohol beverages and for the enforcement of this article 3 and articles 4 and 5 of this title 44 and alter, amend, repeal, and publish the same from time to time; (c) Hear and determine at public hearing all complaints against any licensee and administer oaths and issue subpoenas to require the presence of persons and production of papers, books, and records necessary to the determination of any hearing so held; (d) Keep complete records of all acts and transactions of the state licensing authority, which records, except confidential reports obtained from the licensee showing the sales volume or quantity of alcohol beverages sold or stamps purchased or customers served, shall be open for inspection by the public; (e) Prepare and transmit annually, in the form and manner prescribed by the heads of the principal departments pursuant to section 24-1-136, a report accounting to the governor for the efficient discharge of all responsibilities assigned by law or directive to the state licensing authority; (f) Notify all persons to whom wholesale licenses have been issued as to applications for licenses and renewals of the licenses provided in sections 44-3-409 to 44-3-420 and 44-4-104 (1). (2) (a) (I) Rules adopted pursuant to subsection (1)(b) of this section may cover, without limitation, the following subjects: (A) Compliance with or enforcement or violation of any provision of this article 3, article 4 or 5 of this title 44, or any rule issued pursuant to those articles; (B) Specifications of duties of officers and employees; (C) Instructions for local licensing authorities and law enforcement officers; (D) All forms necessary or convenient in the administration of this article 3 and articles 4 and 5 of this title 44; (E) Inspections, investigations, searches, seizures, and activities as may become necessary from time to time, including a range of penalties for use by licensing authorities, which shall include aggravating and mitigating factors to be considered, when licensees' employees violate certain provisions of this article 3 and article 4 of this title 44, including the sale or service of alcohol beverages to persons under twenty-one years of age or to visibly intoxicated persons; (F) Limitation of number of licensees as to any area or vicinity; (G) Misrepresentation, unfair practices, and unfair competition; (H) Control of signs and other displays on licensed premises; (I) Use of screens; (J) Identification of licensees and their employees; (K) Storage, warehouses, and transportation; (L) Health and sanitary requirements; (M) Standards of cleanliness, orderliness, and decency, and sampling and analysis of products; (N) Standards of purity and labeling; (O) Records to be kept by licensees and availability thereof; (P) Practices unduly designed to increase the consumption of alcohol beverages; (Q) Implementation, standardization, and enforcement of alternating proprietor licensed premises. The state licensing authority shall consult with interested parties from the alcohol beverage industry in developing appropriate rules to ensure adequate oversight and regulation of alternating proprietor licensed premises. (R) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this article 3 and articles 4 and 5 of this title 44; (S) Repealed. (T) Sales rooms operated by licensed wineries, distilleries, limited wineries, or beer wholesalers, including the manner by which a licensee operating a sales room notifies the state licensing authority of its sales rooms, the content of the notice, and any other necessary provisions related to the notice requirement; (U) Special event permits issued under article 5 of this title 44. (II) Nothing in this article 3 and articles 4 and 5 of this title 44 shall be construed as delegating to the state licensing authority the power to fix prices. The licensing authority shall make no rule that would abridge the right of any licensee to fairly, honestly, and lawfully advertise the place of business of or the commodities sold by such licensee. All rules shall be reasonable and just. (b) (I) (A) The state licensing authority shall make no rule regulating or prohibiting the sale of alcohol beverages on credit offered or extended by a licensee to a retailer where the credit is offered or extended for thirty days or less. The state licensing authority shall enforce the prohibition against extending credit for more than thirty days for the sale of alcohol beverages pursuant to 27 CFR 6 and may adopt rules regulating or prohibiting the sale of alcohol beverages on credit where the credit is offered or extended for more than thirty days, consistent with the federal regulations. (B) Nothing in this subsection (2)(b)(I) allows the state licensing authority to adopt a rule that restricts the ability of a licensee to, or prohibits a licensee from, making sales of alcohol beverages, on a cash-on-delivery basis, to a retailer who is or may be in arrears in payments to a licensee for prior alcohol beverage sales. (II) Licensees shall comply with the prohibition against extending credit to a retailer for more than thirty days for the sale of alcohol beverages, including beer, contained in 27 CFR 6 and with rules adopted by the state licensing authority that are consistent with 27 CFR 6. (III) Notwithstanding any provision of this article 3 to the contrary, a liquor-licensed drugstore licensed under section 44-3-410 on or after January 1, 2017, shall not purchase alcohol beverages on credit or accept an offer or extension of credit from a licensee and shall effect payment upon delivery of the alcohol beverages. (IV) As used in this subsection (2)(b), "licensee" shall have the same meaning as "industry member", as defined in 27 CFR 6.11, and includes a person engaged in business as a distiller, brewer, rectifier, blender, or other producer; as an importer or wholesaler of alcohol beverages; or as a bottler or warehouseman and bottler of spirituous liquors. (3) In any hearing held by the state licensing authority pursuant to this article 3 or article 4 or 5 of this title 44, no person may refuse, upon request of the state licensing authority, to testify or provide other information on the ground of self-incrimination; but no testimony or other information produced in the hearing or any information directly or indirectly derived from such testimony or other information may be used against such person in any criminal prosecution based on a violation of this article 3 or article 4 or 5 of this title 44 except a prosecution for perjury in the first degree committed in so testifying. Continued refusal to testify or provide other information shall constitute grounds for suspension or revocation of any license granted pursuant to this article 3 or article 4 or 5 of this title 44. (4) (a) (I) By January 1, 2028, the state licensing authority shall study the feasibility of adopting an online portal system that: (A) Allows liquor license applications and renewals to be completed online; (B) Allows a licensee to have an account where all relevant license information for all of its licenses is stored; and (C) At the time of renewal, enables a licensee to renew its license online by uploading all required documentation. (II) As part of studying the feasibility of an online portal system, the study must include: (A) A proposed timeline for implementing the system; (B) A proposed request for proposal process for developing the system; and (C) The estimated costs of developing and implementing the system. (III) In addition, the feasibility study must include a representative sample of local licensing authorities throughout the state. (b) By March 1, 2028, the state licensing authority shall submit a report to the house of representatives finance committee and the senate finance committee, or their successor committees, on the feasibility of developing and implementing an online portal system. The report must include the elements specified in subsection (4)(a)(II) of this section. (c) The state licensing authority may adopt rules necessary to implement and administer this subsection (4). (d) This subsection (4) is repealed, effective January 1, 2029.
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