(1) (a) Except as provided in Subsection (7), the commission may not issue a package agency, license, or permit to a person who has been convicted of: (i) within seven years before the day on which the commission issues the package agency, license, or permit, a felony under a federal law or state law; (ii) within four years before the day on which the commission issues the package agency, license, or permit: (A) a violation of a federal law, state law, or local ordinance concerning the sale, offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic product; or (B) a crime involving moral turpitude; or (iii) on two or more occasions within the five years before the day on which the package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs. (b) If the person is a partnership, corporation, or limited liability company, the proscription under Subsection (1)(a) applies if any of the following has been convicted of an offense described in Subsection (1)(a): (i) a partner; (ii) a managing agent; (iii) a manager; (iv) an officer; (v) a director; (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of the corporation; or (vii) a member who owns at least 20% of the limited liability company. (c) Except as provided in Subsection (7), the proscription under Subsection (1)(a) applies if a person who is employed to act in a supervisory or managerial capacity for a package agency, licensee, or permittee has been convicted of an offense described in Subsection (1)(a). (2) Except as described in Section 32B-8-501, the commission may immediately suspend or revoke a package agency, license, or permit, and terminate a package agency agreement, if a person described in Subsection (1): (a) after the day on which the package agency, license, or permit is issued, is found to have been convicted of an offense described in Subsection (1)(a) before the package agency, license, or permit is issued; or (b) on or after the day on which the package agency, license, or permit is issued: (i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs; and (B) was convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs within five years before the day on which the person is convicted of the offense described in Subsection (2)(b)(ii)(A). (3) Except as described in Section 32B-8-501, the director may take emergency action by immediately suspending the operation of the package agency, licensee, or permittee for the period during which a criminal matter is being adjudicated if a person described in Subsection (1): (a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs; and (ii) was convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs within five years before the day on which the person is arrested on a charge described in Subsection (3)(b)(i). (4) (a) (i) The commission may not issue a package agency, license, or permit to a person who has had any type of agency, license, or permit issued under this title revoked within the last three years. (ii) The commission may not issue a package agency, license, or permit to a partnership, corporation, or limited liability company if a partner, managing agent, manager, officer, director, stockholder who holds at least 20% of the total issued and outstanding stock of the corporation, or member who owns at least 20% of the limited liability company is or was: (A) a partner or managing agent of a partnership that had any type of agency, license, or permit issued under this title revoked within the last three years; (B) a managing agent, officer, director, or stockholder who holds or held at least 20% of the total issued and outstanding stock of any corporation that had any type of agency, license, or permit issued under this title revoked within the last three years; or (C) a manager or member who owns or owned at least 20% of a limited liability company that had any type of agency, license, or permit issued under this title revoked within the last three years. (b) The commission may not issue a package agency, license, or permit to a partnership, corporation, or limited liability company if any of the following had any type of agency, license, or permit issued under this title revoked while acting in that person's individual capacity within the last three years: (i) a partner or managing agent of a partnership; (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of a corporation; or (iii) a manager or member who owns at least 20% of a limited liability company. (c) The commission may not issue a package agency, license, or permit to a person acting in an individual capacity if that person was: (i) a partner or managing agent of a partnership that had any type of agency, license, or permit issued under this title revoked within the last three years; (ii) a managing agent, officer, director, or stockholder who held at least 20% of the total issued and outstanding stock of a corporation that had any type of agency, license, or permit issued under this title revoked within the last three years; or (iii) a manager or member who owned at least 20% of the limited liability company that had any type of agency, license, or permit issued under this title revoked within the last three years. (5) (a) The commission may not issue a package agency, license, or permit to a minor. (b) The commission may not issue a package agency, license, or permit to a partnership, corporation, or limited liability company if any of the following is a minor: (i) a partner or managing agent of the partnership; (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of the corporation; or (iii) a manager or member who owns at least 20% of the limited liability company. (c) For purposes of Subsection (5)(b), the commission may not consider a minor's position with or ownership interest in an entity that has an ownership interest in the entity that is applying for the package agency, license, or permit unless the minor would exercise direct decision- making control over the package agency, license, or permit. (6) Except as described in Section 32B-8-501, if a package agent, licensee, or permittee no longer possesses the qualifications required by this title for obtaining a package agency, license, or permit, the commission may terminate the package agency agreement, or revoke the license or permit. (7) (a) If the licensee is a resort licensee: (i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in the management of the resort, as the commission defines in rule; and (ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or managerial capacity for the resort licensee or in relation to a sublicense of the resort license. (b) If the permittee is a public service permittee under Chapter 10, Special Use Permit Act: (i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in the management of the public service permittee, as the commission defines in rule; and (ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or managerial capacity for the public service permittee.
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