(1) A manufacturer may not distribute or sell a malted beverage:

1. (a) unless the label and packaging of the malted beverage:

   1. (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
   2. (ii) clearly gives notice to the public that the malted beverage is an alcoholic product; and
2. (b) until the day on which the department in accordance with this title and rules of the commission approves the label and packaging of the malted beverage.

(3) Except as otherwise required under Section 32B-1-606, a manufacturer may comply with the requirement of Subsection (1)(a)(ii) by including on a label and packaging for a malted beverage any of the following terms:

1. (a) beer;
2. (b) ale;
3. (c) porter;
4. (d) stout;
5. (e) lager;
6. (f) lager beer; or
7. (g) another class or type designation commonly applied to a malted beverage that conveys by a recognized term that the product contains alcohol.

(4)

1. (a) As used in this section, "previously approved malted beverage" means a malted beverage for which the manufacturer holds approval for the label and packaging under Subsection (1)(b) on May 9, 2017.
2. (b) Beginning May 9, 2017, the department shall review the label and packaging of each previously approved malted beverage for compliance with the provisions of this part.

3. (c) If, during the review described in Subsection (4)(b), the department determines that a previously approved malted beverage does not comply with the provisions of this part on or after May 9, 2017:

   1. (i) the department shall send written notice to the manufacturer that states:

      1. (A) that the manufacturer shall reapply for approval of the label and packaging of the malted beverage;
      2. (B) an explanation, including each specific reason, the label or packaging of the manufacturer's previously approved malted beverage does not comply with the provisions of this part;
      3. (C) how the manufacturer can comply with the provisions of this part; and
      4. (D) the date by which the manufacturer shall submit an application to the department for approval; and
   2. (ii) the manufacturer shall reapply for approval of the label and packaging of the malted beverage in accordance with the written notice and the provisions of this part.

4. (d)

   1. (i) A manufacturer, wholesaler, or retailer may distribute or sell a previously approved malted beverage in accordance with the manufacturer's most recent approval from the department through the later of:

      1. (A) April 30, 2018; or
      2. (B) six months after the day on which the manufacturer receives written notice from the department under Subsection (4)(c)(i).
   2. (ii) After the applicable date described in Subsection (4)(d)(i), a manufacturer, wholesaler, or retailer may not distribute or sell a previously approved malted beverage that does not comply with the provisions of this part.
5. (e) The department shall ensure that the department notifies and takes action on each timely application submitted under this Subsection (4) before January 1, 2018.