R81-1-16. Disqualification Based Upon Conviction of Crime

  (1) The Alcoholic Beverage Control Act disqualifies persons from being employees of the department, operating a package agency, holding a license or permit, or being employed in a managerial or supervisory capacity with a package agency, licensee or permittee if they have been convicted of:

  (a) a felony under any federal or state law;

  (b) any violation of any federal or state law or local ordinance concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;

  (c) any crime involving moral turpitude; or

  (d) driving under the influence of alcohol or drugs on two or more occasions within the last five years.

  (2) In the case of a partnership, corporation, or limited liability company the proscription under Subsection (1) applies if any of the following has been convicted of any offense described in Subsection (1):

  (a) a partner;

  (b) a managing agent;

  (c) a manager;

  (d) an officer;

  (e) a director;

  (f) a stockholder who holds at least 20% of the total issued and outstanding stock of the corporation; or

  (g) a member who owns at least 20% of the limited liability company.

  (3) As used in the Act and these rules:

  (a) "convicted" or "conviction" means a determination of guilt by a judge or a jury, upon either a trial or entry of a plea, in any court, including a court not of record, that has not been reversed on appeal;

  (b) "felony" means any crime punishable by a term of imprisonment in excess of one year; and

  (c) a "crime involving moral turpitude" means a crime that involves actions done knowingly contrary to justice, honesty, or good morals. It is also described as a crime that is "malum in se" as opposed to "malum prohibitum" - actions that are immoral in themselves regardless of being punishable by law as opposed to actions that are wrong only since they are prohibited by statute. A crime of moral turpitude ordinarily involves an element of falsification or fraud or of harm or injury directed to another person or another's property. For purposes of this rule, crimes of moral turpitude may include crimes involving controlled substances, illegal drugs, and narcotics.

  (3) Compliance with subsections (1) and (2) are fundamental licensing requirements, the violation of which will result in the issuance of an Order to Show Cause in accordance with R81-1-6 and action on the license as determined by the commission in accordance with 32B-1-304(2).