1. (1) As used in this section:

   1. (a) "Conditional retail license" means a retail license that:

      1. (i) conditions the holder's ability to obtain a valid retail license on the person submitting to the department:

         1. (A) a copy of every license or permit the local authority requires for the valid retail license, including the holder's current business license;
         2. (B) a bond;
         3. (C) evidence that the person carries public liability insurance;
         4. (D) evidence that the person carries dramshop insurance;
         5. (E) evidence that each individual the conditional retail licensee has hired to work as a retail manager, as defined in Section 32B-1-701, has completed the alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; or
         6. (F) any other information the department or commission may require for licensure; and
      2. (ii) provides that the holder will be issued a valid retail license if the holder complies with the requirements of Subsection (3).
   2. (b) "Valid retail license" means a retail license issued pursuant to this part under which the holder is permitted to sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the holder's licensed premises.

2. (2) Subject to the requirements of this section, the commission may issue a conditional retail license to a person if the person:

   1. (a) meets each requirement to obtain the retail license for which the person is applying, except a requirement to submit to the department:

      1. (i) a copy of every license or permit the local authority requires for the retail license, including the person's current business license;
      2. (ii) a bond;
      3. (iii) evidence that the person carries public liability insurance;
      4. (iv) evidence that the person carries dramshop insurance coverage;
      5. (v) evidence that each individual the conditional retail licensee has hired to work as a retail manager, as defined in Section 32B-1-701, has completed the alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; or
      6. (vi) a menu; and
   2. (b) agrees not to sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the conditional retail licensee's licensed premises before obtaining a valid retail license.

3. (3)

   1. (a) A conditional retail license becomes a valid retail license on the day on which the department notifies the person who holds the conditional retail license that the department finds that the person has complied with Subsection (3)(b).

   2. (b) For a conditional retail license to become a valid retail license, a person who holds the conditional retail license shall:

      1. (i) submit to the department:

         1. (A) a copy of every license or permit the local authority requires for the retail license, including the person's current business license;
         2. (B) a bond as specified by Section 32B-5-204;
         3. (C) evidence that the conditional retail licensee carries public liability insurance in an amount and form satisfactory to the department;
         4. (D) evidence that the conditional retail licensee carries dramshop insurance coverage as specified in Section 32B-5-201;
         5. (E) evidence that each individual the conditional retail licensee has hired to work as a retail manager, as defined in Section 32B-1-701, has completed an alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; and
         6. (F) any other information the department or commission may require; and

      2. (ii) provide to the department evidence satisfactory to the department that:

         1. (A) there has been no change in the information submitted to the commission as part of the person's application for a retail license; and
         2. (B) the person continues to qualify for the retail license.

4. (4)

   1. (a) A conditional retail license expires 18 months after the day on which the commission issues the conditional retail license, unless the conditional retail license becomes a valid retail license before that day.

   2. (b) Notwithstanding Subsection (4)(a), the commission may extend the time period of a conditional retail license an additional six months if the holder of the conditional license can show to the satisfaction of the commission that the holder of the conditional license:

      1. (i) has an active building permit related to the licensed premises; and
      2. (ii) is engaged in a good faith effort to pursue completion within the six-month period.

Amended by Chapter 447, 2022 General Session