UtahH.B. 5972026 General SessionHouseWALLET

Alcohol Amendments

Sponsored By: Jefferson S. Burton (Republican)

Signed by Governor

BusinessAlcoholDepartment of Alcoholic Beverage Services

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Bill Overview

Analyzed Economic Effects

28 provisions identified: 7 benefits, 15 costs, 6 mixed.

Higher dramshop insurance minimums

Retail licensees must carry dramshop insurance. Most must have at least $1,000,000 per claim and $2,000,000 total. Hotels and resorts must cover the principal license and sublicenses at $1,000,000/$2,000,000. Arenas must carry $10,000,000 per claim and $20,000,000 total.

Monthly remittance from package agencies

If your package agency is at a manufacturer’s facility, you must pay 12.295% of monthly revenue each month. The state splits this money: 10% for school meals, 1.695% for enforcement, and 0.6% for underage drinking prevention. The department may also charge a regulatory fee.

Lower markups for small makers

Small producers can get a reduced retail markup of 49% over landed case cost. Spirits qualify if total output is under 30,000 proof gallons a year. Wine qualifies under 20,000 gallons; hard cider under 620,000 gallons. The maker must apply, and the department can verify and revoke if they no longer qualify.

More audits and hiring oversight

Beginning May 6, 2026, Alcoholic Beverage Services and many state agencies must run internal audits. After each audit, the director must respond in five business days and file a 120‑day implementation report. Hiring upper management at the department now needs four commissioners voting in an open meeting. These steps increase oversight and accountability.

Stronger ID checks and safety rules

Event permit holders may not serve minors, intoxicated people, known interdicted persons, or known habitual drunkards. Bars, taverns, and certain restaurants must check ID for anyone who looks 35 or younger and confirm age 21 and photo match; Utah licenses must be checked for interdicted status. Sales to a known interdicted person remain banned, with medical exceptions. Beginning May 6, 2026, off‑premise beer retailers must also prevent illegal drug activity and drug paraphernalia on their premises.

Liquor revenue funds school meals and treatment

The department deposits 10% of total gross liquor sales into the Uniform School Fund for school meals run by the State Board of Education. Each year, the Legislature appropriates the revenue from a 0.5% markup on spirituous liquor landed case cost to pay for substance use disorder treatment services.

Higher prices for wine subscriptions

If you use the state’s wine subscription, the department marks up each purchase at least 88.5% above its cost. This sets a higher minimum price for bottles bought through the program.

Tighter limits for event permits

Event permittees must source liquor from a state store or package agency and beer from allowed sellers. You cannot change the alcohol service location without approval. Staff on duty may not drink; minors may not handle alcohol. Patrons may not bring alcohol in or take open containers out and may have only one drink at a time. Size limits apply: up to 1.5 oz primary spirits (max 2.5 oz at once per patron), wine by the glass up to 5 oz, and beer container limits (no more than 2 liters; no more than 1 liter per patron). You must follow commission‑set prices for certain products and avoid discounts that encourage overdrinking; time‑limited drink specials and public free‑alcohol promotions are banned. Alcohol service is not allowed from 1:00 a.m. to 9:59 a.m. A visible health and DUI warning sign is required at the event.

New rules for beer stores

Off‑premise beer retailers may buy only from the maker’s designated wholesaler or a small brewer. You may not sell beer in containers over 2 liters. Beer must be shown in no more than two floor locations with required warning signs. Staff who supervise or sell beer must wear visible ID badges, and you must keep badge records. Gambling devices, chance‑based contests, and frozen novelty beers are banned on licensed premises.

Stricter licensing and buying rules for retailers

Beginning May 6, 2026, you must hold a retail license to store, sell, or allow alcohol consumption on licensed premises, and the commission may deny based on violation history. Retailers may buy liquor only from a state store or package agency, and beer only from the designated wholesaler for their area or from a small brewer. You may not store, sell, or serve outside the approved area on your license without department approval. State stores and package agencies must sell at commission‑set prices.

Stricter rules for reception centers

Reception centers must follow tighter event rules. You must give advance notice to the state and local police. You cannot serve alcohol from 1:00 a.m. to 9:59 a.m. Alcohol must be dispensed behind a solid, permanent barrier, not at a bar. Events must be private or under a contract with a third‑party host; family hosting is allowed. If minors are present, food must be available whenever alcohol is served. Unsold alcohol cannot stay at the event; destroy opened unsaleable items and return saleable stock to approved storage.

Tougher penalties for event violations

The department must start a disciplinary case when it learns of an alleged violation, unless that would interfere with a criminal or civil case. For single‑event permit violations, officials can revoke the permit immediately, seize alcohol at the event, and forfeit the bond. If revoked, the permittee is barred from single‑event or temporary beer permits for three years. Seized alcohol is returned after the event if no forfeiture case is started.

Venues must get 70% from food

Beginning May 6, 2026, reception centers, beer‑only restaurants, and resorts must keep at least 70% of gross revenue from food. You pass if annual markup cost ÷ (annual food revenue + annual markup cost) is 30% or less. Reception center licenses are capped at (state population ÷ 251,693) + 4. Reception centers may hold a public alcohol‑sales event only once per year, and only if a 501(c) nonprofit hosts it.

Drive‑through beer with safeguards

Beginning May 6, 2026, off‑premise beer retailers may sell at a drive‑through, a loading area, or a marked pickup stall. The customer must pre‑order before using the stall, and staff must deliver from the licensed store to the stall. Staff must verify age at the stall and keep video surveillance, and employees must meet training rules.

New staffing and kitchen rules for reception centers

Beginning May 6, 2026, reception centers must have a kitchen that can prepare a full meal on-site or under the same control. They must supervise alcohol service, have serving staff complete an alcohol training seminar, and keep a staff person at events while alcohol is present. They may not employ minors at events that do not make food available. They may not make willingness to serve alcohol a condition for a server job.

One free hotel room drink

A package agency that offers room service may give one free, unopened, non‑spirituous alcoholic product per guest reservation and per room. Staff must hand it to an adult guest in the room and may not leave it unattended. The container must be 750 ml or less.

Lower markup for military sales

Liquor sold by the department to a military installation must be marked up at least 17% over landed cost. This is a lower price floor than general state store markups.

Lower markup for small brewers

If a small brewer applies and qualifies, the department sells their heavy beer at a 32% markup over landed case cost. The department verifies eligibility and may revoke the reduced markup if the brewer no longer qualifies.

Drink sizes and per-person limits

A standard spirits pour is 1.5 ounces when a metered dispenser is used, and you may not have more than 2.5 ounces of spirits at one time. Wine by the glass is capped at 5 ounces; table containers are limited to 750 mL for small tables and 1.5 L for four or more. A single beer sold to one patron may not exceed 1 liter, and beer flights are limited to 16 ounces total. Take‑home beer must be sealed and no larger than 2 liters, and heavy beer or flavored malt beverages in original containers cannot exceed 1 liter.

State stores set price floors

State stores must mark up spirits, wine, and flavored malt beverages at least 88.5% over landed cost. Heavy beer must be marked up at least 66.5%. These rules raise the price floor on many products.

Banquet staffing, training, and leftovers

Beginning May 6, 2026, banquet licensees must give advance notice of events and are subject to random inspections. Minors may not sell, furnish, or dispense alcohol for banquets or room service. Staff who serve alcohol must complete training, and at least one trained person must stay on site while alcohol is sold or consumed. Unsold alcohol cannot be left at the banquet; opened unsaleable items must be destroyed and other containers returned to approved storage.

Late license renewal costs $300

You may renew an alcohol license late only up to the cutoff. If the commission allows the late renewal, you must pay a $300 late fee. Late renewal is not allowed after the 10th day of the next month (or the next business day).

Ledgers required for single-event alcohol permits

Single-event permit holders must keep a ledger of expenses and revenue. It must list costs for liquor, beer, set-ups, and other ingredients, and show revenue from alcohol sales. Records must follow the state’s recordkeeping rules.

Resort alcohol service rules

Resort licensees may sell alcohol only on sublicensed premises, by permit, via a package agency, or by room service. You must post clear signs marking each conveyance area and prevent unattended drinks there. Room service alcohol must be hand‑delivered to an adult guest; do not leave it outside the room.

Banquet alcohol on-site and hours

Banquet and reception venues sell alcohol only for drinking on the premises. Guests cannot bring alcohol in or take it out. Beginning May 6, 2026, no alcohol may be sold or served from 1:00 a.m. to 9:59 a.m. A venue may give one free unopened non‑spirit drink up to 750 mL per guest room reservation.

State store checkout and warnings

State stores post prominent warning signs about pregnancy risks and DUI, with a health hotline. Cash purchases may be rounded to the nearest 5 cents after tax when making exact change. You can choose to round up your purchase to the next dollar. The state deposits round‑up donations into the Pamela Atkinson Homeless Account.

Stronger age checks and more IDs

Utah accepts a valid foreign driver license with a photo and birth date as proof of age starting May 6, 2026. The commission runs an electronic age‑verification program. Systems may show only limited ID fields and licensees may use them only to verify age. Licensees must keep the verification data for seven days.

Hotel definition lowered; no minibars

Beginning May 6, 2026, a lodging with 30 or more rooms now counts as a hotel, down from 40. Package agencies are not allowed to maintain minibars.

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Sponsors & Cosponsors

Sponsor

Jefferson S. Burton
Republican • House

Cosponsors

Jerry W Stevenson
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 190 • No: 5

House vote • 3/5/2026

House/ concurs with Senate amendment

Yes: 67 • No: 2

House vote • 3/4/2026

Senate Comm - Substitute Recommendation

Yes: 4 • No: 0

Senate vote • 3/4/2026

Senate/ floor amendment

Yes: 0 • No: 0

Senate vote • 3/4/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 29 • No: 0

House vote • 3/4/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 0

House vote • 3/3/2026

House/ passed 3rd reading

Yes: 65 • No: 3

House vote • 2/27/2026

House Comm - Favorable Recommendation

Yes: 10 • No: 0