House approves DABC governance and auditing reforms after extended debate

After extended floor debate the Utah House on March 8 approved first substitute Senate Bill 66 to restructure aspects of the Department of Alcoholic Beverage Control (DABC).

Representative Wilcox, sponsor of the bill, outlined several changes including expanding the commission from five to seven members, dividing the commission into two committees (operations/procurement and licensing/compliance), authorizing procedures for termination of the director, creating a DABC advisory board of licensees, and — notably — giving the agency "its own internal auditing team" that would report directly to the commission.

Members debated whether the reforms went far enough and whether structural alternatives (including privatization or more radical separation of licensing and business functions) should be studied by a different interim committee. Representative Litvak, among others, said the package included useful accountability measures such as internal audits but worried that it missed a historic opportunity to separate commercial and regulatory roles. Representative Frank proposed an amendment to create an additional interim study; the amendment failed after several members warned it would imperil the bipartisan compromises that resulted in the current bill. Supporters argued the bill was the product of extensive audits and compromise and that it increases executive-branch oversight and internal checks.

The House recorded final passage (73 yes, 0 no) and the bill will be returned to the Senate for further consideration. Sponsors said the changes will increase transparency and strengthen internal controls at DABC.