(1) The local licensing authority shall issue only the following classes of licenses: (a) (I) Sales of fermented malt beverages and wine for consumption off the premises of the licensee; (II) Notwithstanding any other provision of law, a license issued by the local and state licensing authorities under this subsection (1)(a) and in effect on March 1, 2023, shall immediately convert from a license to sell fermented malt beverages for consumption off the premises to a fermented malt beverage and wine retailer license, on March 1, 2023, without any further action by the state or local licensing authority or the licensee. (b) Sales of fermented malt beverages for consumption on the premises of the licensee; (c) (I) Subject to subsections (1)(c)(II) and (1)(c)(III) of this section, sales of fermented malt beverages for consumption both on and off the premises of the licensee. (II) Except as otherwise provided in subsection (1)(c)(III) of this section: (A) A local licensing authority shall not issue a new fermented malt beverage license or renew an existing fermented malt beverage license for the sale of fermented malt beverages for consumption on and off the licensed premises; and (B) Any licensee holding a fermented malt beverage license issued under this subsection (1)(c) prior to June 4, 2018, that applies to renew the license on or after June 4, 2018, and whose licensed premises is located in a county with a population of thirty-five thousand or more and not in an underserved area must simultaneously apply to convert the license either to a license for the sale of fermented malt beverages for consumption off the licensed premises as specified in subsection (1)(a) of this section or to a license for the sale of fermented malt beverages for consumption on the licensed premises as specified in subsection (1)(b) of this section. (III) (A) The local licensing authority may issue a new or renew a fermented malt beverage retailer's license for the sale of fermented malt beverages for consumption on and off the licensed premises if the licensed premises is located in a county with a population of less than thirty-five thousand or in an underserved area. (B) Repealed. (IV) As used in this subsection (1)(c), "underserved area" means an area that is within a county with a population of thirty-five thousand or more but lies outside of municipal boundaries or is a city or town with a population of less than seven thousand five hundred. (V) For purposes of this subsection (1)(c), population is determined according to the most recently available population statistics of the United States census bureau. (2) The local licensing authority shall collect an annual license fee of twenty-five dollars if the licensed premises is located in a municipality or city and county and fifty dollars if the licensed premises is located outside the corporate limits of a municipality or city and county. (3) (a) In addition to any other requirements specified in this article 4 or article 3 of this title 44, to qualify for a new license under subsection (1)(a) of this section on or after June 4, 2018, or to renew a license that was issued under subsection (1)(a) of this section on or after June 4, 2018, a person must derive at least twenty percent of its gross annual revenues from total sales from the sale of food items for consumption off the premises. (b) For purposes of calculating gross annual revenues from total sales, revenues derived from the sale of the following products are excluded: (I) Fuel products, as defined in section 8-20-201 (2); (II) Cigarettes, tobacco products, and nicotine products, as defined in section 18-13-121 (5); and (III) Lottery products. (c) The state licensing authority may adopt rules specifying the form and manner in which an applicant for a new or renewal license may demonstrate compliance with this subsection (3). (d) This subsection (3) does not apply to a person that owns or leases a proposed fermented malt beverage retailer licensed premises and, as of January 1, 2019, has applied for or received from the municipality, city and county, or county in which the premises are located: (I) A building permit for the structure to be used for the fermented malt beverage retailer licensed premises, which permit is currently active and will not expire before the completion of the liquor licensing process; or (II) A certificate of occupancy for the structure to be used for the fermented malt beverage retailer licensed premises. (e) As used in this subsection (3), "food items" means any raw, cooked, or processed edible substance, ice, or beverage, other than a beverage containing alcohol, that is intended for use or for sale, in whole or in part, for human consumption. (4) On or after March 1, 2023, a fermented malt beverage and wine retailer licensed under subsection (1)(a) of this section: (a) (I) Shall not sell fermented malt beverages or wine to consumers at a price that is below the retailer's cost, as listed on the invoice, to purchase the fermented malt beverages or wine, unless the sale is of discontinued or close-out fermented malt beverages or wine. (II) This subsection (4)(a) does not prohibit a fermented malt beverage and wine retailer from operating a bona fide loyalty or rewards program for fermented malt beverages or wine so long as the price for the product is not below the retailer's costs as listed on the invoice. The state licensing authority may adopt rules to implement this subsection (4)(a). (b) Shall not allow consumers to purchase fermented malt beverages or wine at a self- checkout or other mechanism that allows the consumer to complete the fermented malt beverages or wine purchase without assistance from and completion of the entire transaction by an employee of the fermented malt beverage and wine retailer. (5) A person licensed under subsection (1)(a) of this section that holds multiple fermented malt beverage and wine retailer's licenses for multiple licensed premises may operate under a single or consolidated corporate entity but shall not commingle purchases of or credit extensions for purchases of alcohol beverage product from a wholesaler licensed under article 3 of this title 44 for more than one licensed premises. A wholesaler licensed under article 3 of this title 44 shall not base the price for the alcohol beverage product it sells to a fermented malt beverage and wine retailer licensed under subsection (1)(a) of this section on the total volume of alcohol beverage product that the retailer purchases for multiple licensed premises. (6) (a) A person licensed under subsection (1)(a) of this section who complies with this subsection (6) and rules promulgated under this subsection (6) may deliver fermented malt beverages and wine in sealed containers to a person of legal age if: (I) The person receiving the delivery of fermented malt beverages or wine is located at a place that is not licensed pursuant to this section; (II) The delivery is made by an employee of the fermented malt beverage and wine retailer who is at least twenty-one years of age and who is using a vehicle owned or leased by the licensee to make the delivery; (III) The person making the delivery verifies, in accordance with section 44-3-901 (11), that the person receiving the delivery of fermented malt beverages or wine is at least twenty-one years of age; and (IV) The fermented malt beverage and wine retailer derives no more than fifty percent of its gross annual revenues from total sales of fermented malt beverages from the sale of fermented malt beverages and wine that the fermented malt beverage and wine retailer delivers. (b) The state licensing authority shall promulgate rules as necessary for the proper delivery of fermented malt beverages pursuant to this subsection (6) and may issue a permit to any person who is licensed pursuant to and delivers fermented malt beverages or wine under subsection (1)(a) of this section. A permit issued under this subsection (6) is subject to the same suspension and revocation provisions as are set forth in section 44-3-601 for other licenses granted pursuant to article 3 of this title 44. (7) A fermented malt beverage and wine retailer may allow tastings of fermented malt beverages or wine to be conducted on the licensed premises if the licensee has received authorization to conduct tastings pursuant to section 44-3-301.
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