Subject to Section 32B-3-202:

1. (1) Subject to Subsection (3), the department shall initiate a disciplinary proceeding described in Subsection (2) if the department:

   1. (a) receives a report from an investigator alleging that a person subject to administrative action violated this title or the rules of the commission;
   2. (b) receives notice of criminal proceedings against a person subject to administrative action on the basis of an alleged violation of this title;
   3. (c) receives notice of civil proceedings in accordance with Chapter 15, Alcoholic Product Liability Act, against a person subject to administrative action on the basis of an alleged violation of this title; or
   4. (d) otherwise becomes aware that a person subject to administrative action on the basis of an alleged violation of this title may have violated this title or commission rule.

2. (2) Subject to Subsection (3), if a condition in Subsection (1) is met, the department shall:

   1. (a) initiate a disciplinary proceeding to determine:

      1. (i) whether a person subject to administrative action violated this title or rules of the commission; and
      2. (ii) if a violation is found, the appropriate sanction to be imposed; and
   2. (b) refer the matter to the State Bureau of Investigation, created in Section 53-10-301.

3. (3) The department is not required to initiate a disciplinary proceeding described in Subsection (2) if after reviewing the information described in Subsection (1), the department determines:

   1. (a) that there is no basis for initiating a disciplinary proceeding; or
   2. (b) in consultation with the prosecutor, law enforcement, or plaintiff's counsel, as applicable, that initiating a disciplinary proceeding would pose a significant risk of interfering with a criminal or civil proceeding.

4. (4)

   1. (a) Unless waived by the respondent, a disciplinary proceeding shall be held:

      1. (i) if required by law;
      2. (ii) before revoking or suspending a license, permit, or certificate of approval issued under this title; or
      3. (iii) before imposing a fine against a person subject to administrative action.
   2. (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding hearing after receiving proper notice is an admission of the charged violation.
   3. (c) The validity of a disciplinary proceeding is not affected by the failure of a person to attend or remain in attendance.

Amended by Chapter 39, 2026 General Session