Download Zipped Introduced WordPerfect SB0187.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 187
1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Alcoholic Beverage Control Act.
10 Highlighted Provisions:
11 This bill:
12 . amends definitional provisions;
13 . addresses the nature of an adjudicative proceeding as a civil action including the
14 burden of proof and the general applicability of mens rea requirements;
15 . adjusts quotas;
16 . addresses proximity for a restaurant liquor or limited restaurant license;
17 . addresses dispensing and storage by a restaurant, including providing for a
18 transition;
19 . changes the insurance and liability limits related to dramshop;
20 . modifies the definition of a "convention center";
21 . creates a resort license including:
22 . defining terms;
23 . providing for licensing, including the creation of sublicenses;
24 . establishing a resort amenities sublicense;
25 . imposing operational requirements for a resort license;
26 . addressing the application of operational requirements to a sublicense;
27 . providing for enforcement with relation to a resort license or a sublicense;
28 . addressing the application of the Nuisance Licensee Act to a resort license or
29 sublicense;
30 . providing for the enforcement of criminal penalties; and
31 . expanding protections for employees to encompass employees of a resort
32 licensee;
33 . clarifies the application of criminal procedures, principles, and penalties;
34 . provides for a study of penalties related to minors; and
35 . makes technical and conforming changes.
36 Monies Appropriated in this Bill:
37 None
38 Other Special Clauses:
39 This bill provides an effective date.
40 Utah Code Sections Affected:
41 AMENDS:
42 32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
43 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
44 32A-1-115, as last amended by Laws of Utah 2008, Chapter 382
45 32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
46 32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
47 32A-4-101, as last amended by Laws of Utah 2008, Chapter 391
48 32A-4-102, as last amended by Laws of Utah 2008, Chapter 391
49 32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
50 32A-4-202, as last amended by Laws of Utah 2004, Chapter 268
51 32A-4-302, as last amended by Laws of Utah 2008, Chapter 391
52 32A-4-303, as last amended by Laws of Utah 2008, Chapter 391
53 32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
54 32A-4-401, as last amended by Laws of Utah 2008, Chapter 391
55 32A-4-402, as last amended by Laws of Utah 2008, Chapter 391
56 32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
57 32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
58 32A-9-103, as last amended by Laws of Utah 2008, Chapter 382
59 32A-10-202, as last amended by Laws of Utah 2008, Chapter 391
60 32A-12-101, as renumbered and amended by Laws of Utah 1990, Chapter 23
61 32A-12-102, as last amended by Laws of Utah 2004, Chapter 268
62 32A-12-104, as last amended by Laws of Utah 2007, Chapter 322
63 32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
64 32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
65 32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
66 32A-14a-102, as last amended by Laws of Utah 2008, Chapter 3
67 32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
68 ENACTS:
69 32A-1-124, Utah Code Annotated 1953
70 32A-4a-101, Utah Code Annotated 1953
71 32A-4a-102, Utah Code Annotated 1953
72 32A-4a-201, Utah Code Annotated 1953
73 32A-4a-202, Utah Code Annotated 1953
74 32A-4a-203, Utah Code Annotated 1953
75 32A-4a-204, Utah Code Annotated 1953
76 32A-4a-205, Utah Code Annotated 1953
77 32A-4a-301, Utah Code Annotated 1953
78 32A-4a-302, Utah Code Annotated 1953
79 32A-4a-303, Utah Code Annotated 1953
80 32A-4a-304, Utah Code Annotated 1953
81 32A-4a-305, Utah Code Annotated 1953
82 32A-4a-401, Utah Code Annotated 1953
83 32A-4a-402, Utah Code Annotated 1953
84 32A-4a-501, Utah Code Annotated 1953
85 32A-4a-502, Utah Code Annotated 1953
86 32A-4a-503, Utah Code Annotated 1953
87 Uncodified Material Affected:
88 ENACTS UNCODIFIED MATERIAL
89
90 Be it enacted by the Legislature of the state of Utah:
91 Section 1. Section 32A-1-105 is amended to read:
92 32A-1-105. Definitions.
93 As used in this title:
94 (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
95 at retail, for consumption on its premises located at an international airport with a United States
96 Customs office on the premises of the international airport.
97 (2) "Alcoholic beverage" means the following as the term is defined in this section:
98 (a) beer;
99 (b) flavored malt beverage; and
100 (c) liquor, which [
101 (3) (a) "Alcoholic product" means a product that:
102 (i) contains at least .5% of alcohol by volume; and
103 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
104 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
105 in an amount greater than the amount prescribed in Subsection (3)(a)(i).
106 (b) "Alcoholic product" does not include any of the following common items that
107 otherwise come within the definition of an alcoholic product:
108 (i) except as provided in Subsection (3)(c), extract;
109 (ii) vinegar;
110 (iii) cider;
111 (iv) essence;
112 (v) tincture;
113 (vi) food preparation; or
114 (vii) an over-the-counter drug or medicine.
115 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
116 product when it is used as a flavoring in the manufacturing of an alcoholic product.
117 (4) (a) [
118 similar structure:
119 [
120 [
121 [
122 [
123 (b) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
124 3, Limited Restaurant Licenses:
125 (i) except as provided in Subsection (4)(b)(ii), "bar" means a level surface or structure
126 on the premises of a restaurant:
127 (A) at which an alcoholic beverage or alcoholic product is:
128 (I) stored; or
129 (II) dispensed; or
130 (B) from which an alcoholic beverage is served; and
131 (ii) "bar" does not include a surface or structure on the premises of a restaurant that is
132 located in a kitchen or other segregated preparation area that is:
133 (A) not visible to a patron of a restaurant; and
134 (B) outside of an area used for:
135 (I) dining;
136 (II) staging; or
137 (III) as a lobby or waiting area.
138 (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
139 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
140 volume or 3.2% by weight; and
141 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
142 (b) Beer may or may not contain hops or other vegetable products.
143 (c) Beer includes a product that:
144 (i) contains alcohol in the percentages described in Subsection (5)(a); and
145 (ii) is referred to as:
146 (A) beer;
147 (B) ale;
148 (C) porter;
149 (D) stout;
150 (E) lager; or
151 (F) a malt or malted beverage.
152 (d) [
153 beverage.
154 (6) (a) "Beer retailer" means a business that is:
155 (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
156 consumption on or off the business premises; and
157 (ii) licensed to sell beer by:
158 (A) the commission;
159 (B) a local authority; or
160 (C) both the commission and a local authority.
161 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
162 beer to a patron for consumption off the beer retailer's premises.
163 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
164 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
165 patron for consumption on the beer retailer's premises, regardless of whether the business sells
166 beer for consumption off the beer retailer's premises.
167 (7) "Billboard" means a public display used to advertise including:
168 (a) a light device;
169 (b) a painting;
170 (c) a drawing;
171 (d) a poster;
172 (e) a sign;
173 (f) a signboard; or
174 (g) a scoreboard.
175 (8) "Brewer" means a person engaged in manufacturing:
176 (a) beer;
177 (b) heavy beer; or
178 (c) a flavored malt beverage.
179 (9) "Cash bar" means the service of an alcoholic beverage:
180 (a) at:
181 (i) a banquet; or
182 (ii) a temporary event for which a permit is issued under this title; and
183 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
184 beverage.
185 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
186 a bus company to a group of persons pursuant to a common purpose:
187 (a) under a single contract;
188 (b) at a fixed charge in accordance with the bus company's tariff; and
189 (c) for the purpose of giving the group of persons the exclusive use of the passenger
190 bus, coach, or other motor vehicle and a driver to travel together to one or more specified
191 destinations.
192 (11) "Church" means a building:
193 (a) set apart for the purpose of worship;
194 (b) in which religious services are held;
195 (c) with which clergy is associated; and
196 (d) which is tax exempt under the laws of this state.
197 (12) "Club" and "private club" means any of the following organized primarily for the
198 benefit of its members:
199 (a) a social club;
200 (b) a recreational association;
201 (c) a fraternal association;
202 (d) an athletic association; or
203 (e) a kindred association.
204 (13) "Commission" means the Alcoholic Beverage Control Commission.
205 (14) "Community location" means:
206 (a) a public or private school;
207 (b) a church;
208 (c) a public library;
209 (d) a public playground; or
210 (e) a public park.
211 (15) "Community location governing authority" means:
212 (a) the governing body of the community location; or
213 (b) if the commission does not know who is the governing body of a community
214 location, a person who appears to the commission to have been given on behalf of the
215 community location authority to prohibit an activity at the community location.
216 (16) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
217 3, Limited Restaurant Licenses:
218 (a) "counter" means a level surface or structure in a dining area of a restaurant where
219 seating is provided to a patron for service of food; and
220 (b) "counter" does not include a level surface or structure at which an alcoholic
221 beverage or alcoholic product is:
222 (i) stored; or
223 (ii) dispensed.
224 [
225 [
226 under this title:
227 (a) against:
228 (i) a permittee;
229 (ii) a licensee;
230 (iii) a manufacturer;
231 (iv) a supplier;
232 (v) an importer;
233 (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
234 or
235 (vii) an officer, employee, or agent of:
236 (A) a person listed in Subsections [
237 (B) a package agent; and
238 (b) that is brought on the basis of a violation of this title.
239 [
240 appointed under Section 32A-1-108 .
241 (20) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
242 3, Limited Restaurant Licenses, "dispense" means:
243 (a) drawing of an alcoholic beverage or alcoholic product from an area where it is
244 stored; and
245 (b) using the alcoholic beverage or alcoholic product described in Subsection (20)(a)
246 on the premises of the restaurant to mix or prepare an alcoholic beverage for service to a patron
247 of the restaurant.
248 [
249 the department that is saleable, but for some reason is unappealing to the public.
250 [
251 (a) that contains at least .5% alcohol by volume;
252 (b) that is treated by processing, filtration, or another method of manufacture that is not
253 generally recognized as a traditional process in the production of a beer as described in 27
254 C.F.R. Sec. 25.55;
255 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
256 extract; and
257 (d) (i) for which the producer is required to file a formula for approval with the United
258 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
259 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
260 [
261 club who enjoys only those privileges derived from the host for the duration of the visit to the
262 club.
263 [
264 (i) contains more than 4% alcohol by volume; and
265 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
266 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
267 [
268 (a) without charge; and
269 (b) at a:
270 (i) banquet; or
271 (ii) privately hosted event.
272 [
273 Chapter 3, Part 8, Identification Card Act.
274 [
275 an alcoholic beverage is prohibited by:
276 (a) law; or
277 (b) court order.
278 [
279
280 (a) is significantly impaired as to the person's mental or physical functions as a result of
281 the use of:
282 [
283 [
284 [
285 [
286 (b) exhibits plain and easily observed outward manifestations of behavior or physical
287 signs produced by the over consumption of an alcoholic beverage.
288 (29) "Invitee" is as defined in Section 32A-4a-102 .
289 [
290 manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
291 controlled by the person.
292 [
293 authority, other than a bus or taxicab:
294 (a) in which the driver and a passenger are separated by a partition, glass, or other
295 barrier; and
296 (b) that is provided by a company to one or more individuals at a fixed charge in
297 accordance with the company's tariff for the purpose of giving the one or more individuals the
298 exclusive use of the limousine and a driver to travel to one or more specified destinations.
299 [
300 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
301 vinous, or fermented, or other drink, or drinkable liquid that:
302 (A) contains at least .5% alcohol by volume; and
303 (B) is suitable to use for beverage purposes.
304 (ii) [
305 (b) "Liquor" does not include a beverage defined as a beer.
306 [
307 (a) the governing body of the county if the premises are located in an unincorporated
308 area of a county; or
309 (b) the governing body of the city or town if the premises are located in an incorporated
310 city or a town.
311 [
312 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
313 others.
314 [
315 privileges of a club under this title.
316 [
317 center, or homeport facility for a ship:
318 (i) (A) under the control of the United States Department of Defense; or
319 (B) of the National Guard;
320 (ii) that is located within the state; and
321 (iii) including a leased facility.
322 (b) "Military installation" does not include a facility used primarily for:
323 (i) civil works;
324 (ii) a rivers and harbors project; or
325 (iii) a flood control project.
326 [
327 [
328 (a) the appearance of:
329 (i) the nipple or areola of a female human breast;
330 (ii) a human genital;
331 (iii) a human pubic area; or
332 (iv) a human anus; or
333 (b) a state of dress that fails to opaquely cover:
334 (i) the nipple or areola of a female human breast;
335 (ii) a human genital;
336 (iii) a human pubic area; or
337 (iv) a human anus.
338 [
339 an alcoholic beverage is sold pursuant to a license issued by the commission.
340 [
341 (a) a container;
342 (b) a bottle;
343 (c) a vessel; or
344 (d) other receptacle.
345 [
346 (a) under a contractual agreement with the department; and
347 (b) by a person:
348 (i) other than the state; and
349 (ii) who is authorized by the commission to sell package liquor for consumption off the
350 premises of the package agency.
351 [
352 package agency pursuant to a contractual agreement with the department to sell liquor from
353 premises that the package agent shall provide and maintain.
354 [
355 an act or exercise a privilege as specifically granted in the permit.
356 [
357 liability company, association, business trust, or other form of business enterprise, including a
358 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
359 more limited meaning is disclosed by the context.
360 [
361 connection with the sale, storage, service, manufacture, distribution, or consumption of an
362 alcoholic product, unless otherwise defined in this title or in the rules adopted by the
363 commission.
364 [
365 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
366 [
367 social, business, or recreational event:
368 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
369 group; and
370 (ii) that is limited in attendance to people who are specifically designated and their
371 guests.
372 (b) "Privately hosted event" and "private social function" does not include an event to
373 which the general public is invited, whether for an admission fee or not.
374 [
375 (i) an identification card;
376 (ii) an identification that:
377 (A) is substantially similar to an identification card;
378 (B) is issued in accordance with the laws of a state other than Utah in which the
379 identification is issued;
380 (C) includes date of birth; and
381 (D) has a picture affixed;
382 (iii) a valid driver license certificate that:
383 (A) includes date of birth;
384 (B) has a picture affixed; and
385 (C) is issued:
386 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
387 (II) in accordance with the laws of the state in which it is issued;
388 (iv) a military identification card that:
389 (A) includes date of birth; and
390 (B) has a picture affixed; or
391 (v) a valid passport.
392 (b) "Proof of age" does not include a driving privilege card issued in accordance with
393 Section 53-3-207 .
394 [
395 leased by the state, a county, or local government entity that is used for:
396 (i) public education;
397 (ii) transacting public business; or
398 (iii) regularly conducting government activities.
399 (b) "Public building" does not mean or refer to a building owned by the state or a
400 county or local government entity when the building is used by a person, in whole or in part,
401 for a proprietary function.
402 [
403 commission, or other means for representing and selling an alcoholic beverage product of a
404 manufacturer, supplier, or importer of liquor including:
405 (a) wine;
406 (b) heavy beer; or
407 (c) [
408 [
409 (52) "Resident," in relation to a resort, is as defined in Section 32A-4a-102 .
410 (53) "Resort" is as defined in Section 32A-4a-102 .
411 [
412 (a) where a variety of foods is prepared and complete meals are served to the general
413 public;
414 (b) located on a premises having adequate culinary fixtures for food preparation and
415 dining accommodations; and
416 (c) that is engaged primarily in serving meals to the general public.
417 [
418 beverage to a consumer.
419 [
420 (i) a department sample; and
421 (ii) an industry representative sample.
422 (b) "Department sample" means liquor that is placed in the possession of the
423 department for testing, analysis, and sampling including:
424 (i) wine;
425 (ii) heavy beer; or
426 (iii) [
427 (c) "Industry representative sample" means liquor that is placed in the possession of the
428 department:
429 (i) for testing, analysis, and sampling by a local industry representative on the premises
430 of the department to educate the local industry representative of the quality and characteristics
431 of the product; and
432 (ii) including:
433 (A) wine;
434 (B) heavy beer; or
435 (C) [
436 [
437 minors.
438 (b) "School" does not include:
439 (i) a nursery school;
440 (ii) an infant day care center; or
441 (iii) a trade or technical school.
442 [
443 whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
444 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
445 obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
446 employee, unless otherwise defined in this title or the rules made by the commission.
447 [
448 which opaque clothing covers no more than:
449 (a) the nipple and areola of the female human breast in a shape and color other than the
450 natural shape and color of the nipple and areola; and
451 (b) the human genitals, pubic area, and anus:
452 (i) with no less than the following at its widest point:
453 (A) four inches coverage width in the front of the human body; and
454 (B) five inches coverage width in the back of the human body; and
455 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
456 [
457 seminudity appears at or performs:
458 (a) for the entertainment of one or more patrons;
459 (b) on the premises of:
460 (i) a class D private club license as defined in [
461 (ii) a tavern;
462 (c) on behalf of or at the request of the licensee described in Subsection [
463 (d) on a contractual or voluntary basis; and
464 (e) whether or not the person is designated:
465 (i) an employee of the licensee described in Subsection [
466 (ii) an independent contractor of the licensee described in Subsection [
467 (iii) an agent of the licensee described in Subsection [
468 (iv) otherwise of the licensee described in Subsection [
469 [
470 of beer, heavy beer, and flavored malt beverages per year.
471 [
472 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
473 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
474 [
475 affixed to a liquor container sold in the state.
476 (b) "State label" includes the department identification mark and inventory control
477 number.
478 [
479 (i) located on premises owned or leased by the state; and
480 (ii) operated by a state employee.
481 (b) "State store" does not apply to a:
482 (i) licensee;
483 (ii) permittee; or
484 (iii) package agency.
485 (65) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
486 3, Limited Restaurant Licenses:
487 (a) "Storage area" means an area on the premises of a restaurant where a licensee
488 stores an alcoholic beverage or alcoholic product.
489 (b) "Store" means to place or maintain in a location an alcoholic beverage or alcoholic
490 product from which a person draws to prepare an alcoholic beverage for service to a patron of
491 the restaurant.
492 (66) "Sublicense" is as defined in Section 32A-4a-102 .
493 [
494 [
495 (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
496 establishment's premises; and
497 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
498 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
499 revenue of the sale of food, although food need not be sold in the establishment:
500 (i) a beer bar;
501 (ii) a parlor;
502 (iii) a lounge;
503 (iv) a cabaret; or
504 (v) a nightclub.
505 [
506 person who does not have a present intention to continue residency within Utah permanently or
507 indefinitely.
508 [
509 (a) is unsaleable because the merchandise is:
510 (i) unlabeled;
511 (ii) leaky;
512 (iii) damaged;
513 (iv) difficult to open; or
514 (v) partly filled;
515 (b) is in a container:
516 (i) having faded labels or defective caps or corks;
517 (ii) in which the contents are:
518 (A) cloudy;
519 (B) spoiled; or
520 (C) chemically determined to be impure; or
521 (iii) that contains:
522 (A) sediment; or
523 (B) a foreign substance; or
524 (c) is otherwise considered by the department as unfit for sale.
525 [
526 holds limited privileges in a private club by virtue of a visitor card.
527 [
528 in the importation for sale, storage, or distribution of liquor regardless of amount.
529 [
530 the sale of beer in wholesale or jobbing quantities to one or more retailers.
531 (b) Notwithstanding Subsection [
532 brewer selling beer manufactured by that brewer.
533 [
534 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
535 another ingredient is added.
536 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
537 provided in this title.
538 Section 2. Section 32A-1-107 is amended to read:
539 32A-1-107. Powers and duties of the commission.
540 (1) The commission shall:
541 (a) act as a general policymaking body on the subject of alcoholic product control;
542 (b) adopt and issue policies, directives, rules, and procedures;
543 (c) set policy by written rules that establish criteria and procedures for:
544 (i) granting, denying, suspending, or revoking [
545
546 (ii) controlling liquor merchandise inventory including:
547 (A) listing and delisting [
548 (B) the procedures for testing a new [
549 (C) purchasing policy;
550 (D) turnover requirements for a regularly coded [
551 and
552 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
553 (iii) determining the location of a state [
554 package agency, or outlet;
555 (d) decide within the limits and under the conditions imposed by this title, the number
556 and location of state stores, package agencies, and outlets established in the state;
557 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
558 certificates of approval, and package agencies for the purchase, sale, storage, service,
559 manufacture, distribution, and consumption of an alcoholic [
560 (i) a package [
561 (ii) a restaurant [
562 (iii) an airport lounge [
563 (iv) a limited restaurant [
564 (v) an on-premise banquet [
565 (vi) a resort license, under which one or more sublicenses may be included;
566 [
567 [
568 [
569 [
570 [
571 [
572 [
573 [
574 [
575 (f) fix prices at which [
576 package agencies, and outlets;
577 (g) issue and distribute price lists showing the price to be paid by [
578 purchaser for each class, variety, or brand of liquor kept for sale by the department;
579 (h) (i) require the director to follow sound management principles; and
580 (ii) require periodic reporting from the director to ensure that:
581 (A) sound management principles are being followed; and
582 (B) policies established by the commission are being observed;
583 (i) (i) receive, consider, and act in a timely manner upon [
584 recommendations, and matters submitted by the director to the commission; and
585 (ii) do [
586 department's duties and responsibilities;
587 (j) obtain temporarily and for special purposes the services of [
588 expert or person engaged in the practice of a profession or who possess any needed skills,
589 talents, or abilities if:
590 (i) considered expedient; and
591 (ii) approved by the governor;
592 (k) prescribe the duties of a departmental [
593 commission in issuing [
594 permit, license, certificate of approval, or package agency under this title;
595 (l) prescribe, consistent with this title, the fees payable for:
596 (i) [
597 certificate of approval, or package agency issued under this title; or
598 (ii) anything done or permitted to be done under this title;
599 (m) prescribe the conduct, management, and equipment of [
600 an alcoholic [
601 (n) make rules governing the credit terms of beer sales to retailers within the state;
602 (o) require that each of the following, where required in this title, display in a
603 prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
604 or drugs is a serious crime that is prosecuted aggressively in Utah.":
605 (i) a state store;
606 (ii) a permittee;
607 (iii) a licensee; and
608 (iv) a package agency; and
609 (p) subject to Subsection (4) and as provided in this title, impose fines against:
610 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
611 (1)(e); or
612 (ii) [
613 package agent described in Subsection (1)(p)(i).
614 (2) The power of the commission to do the following is plenary, except as otherwise
615 provided by this title, and not subject to review:
616 (a) establish a state [
617 (b) create a package [
618 (c) grant authority to operate a package [
619 (d) grant or deny [
620 approval.
621 (3) The commission may appoint a qualified hearing [
622 [
623 (4) (a) In [
624 [
625 a fine in addition to or in lieu of suspension.
626 (b) [
627 (i) [
628 (ii) a single action against a package agency.
629 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
630 for each violation.
631 Section 3. Section 32A-1-115 is amended to read:
632 32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
633 -- Distribution.
634 (1) As used in this section:
635 (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
636 Account created in this section.
637 (b) "Alcohol-related offense" means:
638 (i) a violation of:
639 (A) Section 41-6a-502 ; or
640 (B) an ordinance that complies with the requirements of:
641 (I) Subsection 41-6a-510 (1); or
642 (II) Section 76-5-207 ; or
643 (ii) an offense involving the:
644 (A) illegal sale of alcohol;
645 (B) illegal distribution of alcohol;
646 (C) illegal transportation of alcohol;
647 (D) illegal possession of alcohol; or
648 (E) illegal consumption of alcohol.
649 (c) "Annual conviction time period" means the time period that:
650 (i) begins on July 1 and ends on June 30; and
651 (ii) immediately precedes the fiscal year for which an appropriation under this section
652 is made.
653 (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
654 Coordinating Council created in Section 63M-7-301 .
655 (e) "Municipality" means:
656 (i) a city; or
657 (ii) a town.
658 (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
659 Beverage Enforcement and Treatment Restricted Account."
660 (b) The account shall be funded from:
661 (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
662 (ii) any appropriations made to the account by the Legislature; and
663 (iii) interest described in Subsection (2)(c).
664 (c) Interest earned on the account shall be deposited into the account.
665 (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
666 revenues in the account shall be used for statewide public purposes including promoting the
667 reduction of the harmful effects of over consumption of alcoholic beverages by adults and
668 alcohol consumption by minors by funding exclusively programs or projects related to
669 prevention, treatment, detection, prosecution, and control of violations of this title and other
670 offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
671 (ii) The portion distributed under this section to counties may also be used for the
672 confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
673 contributing factor.
674 (iii) [
675 [
676 (iv) The appropriations provided for under Subsection (3) are:
677 (A) intended to supplement the budget of the appropriate agencies of each municipality
678 and county within the state to enable the municipalities and counties to more effectively fund
679 the programs and projects described in this Subsection (2)(d); and
680 (B) not intended to replace [
681 programs and projects in this Subsection (2)(d).
682 (3) (a) The revenues deposited into the account shall be distributed to municipalities
683 and counties:
684 (i) to the extent appropriated by the Legislature except that the Legislature shall
685 appropriate each fiscal year an amount equal to at least the amount deposited in the account in
686 accordance with Section 59-15-109 ; and
687 (ii) as provided in this Subsection (3).
688 (b) The amount appropriated from the account shall be distributed as follows:
689 (i) 25% to municipalities and counties based upon the percentage of the state
690 population residing in each municipality and county;
691 (ii) 30% to municipalities and counties based upon each municipality's and county's
692 percentage of the statewide convictions for all alcohol-related offenses;
693 (iii) 20% to municipalities and counties based upon the percentage of all state stores,
694 package agencies, liquor licensees, and beer licensees in the state that are located in each
695 municipality and county; and
696 (iv) 25% to the counties for confinement and treatment purposes authorized by this
697 section based upon the percentage of the state population located in each county.
698 (c) (i) Except as provided in Subsection (3)(c)(iii), a municipality that does not have a
699 law enforcement agency may not receive monies under this section.
700 (ii) The State Tax Commission:
701 (A) may not distribute the monies the municipality would receive but for the
702 municipality not having a law enforcement agency to that municipality; and
703 (B) shall distribute the monies that the municipality would have received but for it not
704 having a law enforcement agency to the county in which the municipality is located for use by
705 the county in accordance with this section.
706 (iii) Notwithstanding Subsections (3)(c)(i) and (ii), if the coordinating council finds
707 that a municipality described in Subsection (3)(c)(i) demonstrates that the municipality can use
708 the monies that the municipality is otherwise eligible to receive in accordance with this section,
709 the coordinating council may direct the State Tax Commission to distribute the money to the
710 municipality.
711 (4) To determine the distributions required by Subsection (3)(b)(ii), the State Tax
712 Commission shall annually:
713 (a) for an annual conviction time period:
714 (i) multiply by two the total number of convictions in the state obtained during the
715 annual conviction time period for violation of:
716 (A) Section 41-6a-502 ; or
717 (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
718 Section 76-5-207 ; and
719 (ii) add to the number calculated under Subsection (4)(a)(i) the number of convictions
720 obtained during the annual conviction time period for all alcohol-related offenses other than the
721 alcohol-related offenses described in Subsection (4)(a)(i);
722 (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
723 obtained in Subsection (4)(a); and
724 (c) multiply the amount calculated under Subsection (4)(b), by the number of
725 convictions obtained in each municipality and county during the annual conviction time period
726 for alcohol-related offenses.
727 (5) For purposes of this section:
728 (a) the number of state stores, package agencies, and licensees located within the limits
729 of each municipality and county:
730 (i) is the number determined by the department to be so located;
731 (ii) includes all:
732 (A) private clubs;
733 (B) restaurants;
734 (C) limited restaurants;
735 (D) on-premise banquet licenses;
736 (E) airport lounges;
737 (F) resort licenses;
738 [
739 [
740 (iii) does not include on-premise beer retailer licensees;
741 (b) the number of state stores, package agencies, and licensees in a county consists only
742 of that number located within unincorporated areas of the county;
743 (c) population figures shall be determined according to the most current population
744 estimates prepared by the Utah Population Estimates Committee;
745 (d) a county's population figure for the 25% distribution to municipalities and counties
746 under Subsection (3)(b)(i) shall be determined only with reference to the population in the
747 unincorporated areas of the county;
748 (e) a county's population figure under Subsection (3)(b)(iv) for the 25% distribution to
749 counties only shall be determined with reference to the total population in the county, including
750 that of municipalities;
751 (f) a conviction occurs in the municipality or county that actually prosecutes the
752 offense to judgment; and
753 (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
754 occur in the municipality or county that, except for the guilty plea, would have prosecuted the
755 offense.
756 (6) By not later than September 1 each year:
757 (a) the state court administrator shall certify to the State Tax Commission the number
758 of convictions obtained for alcohol-related offenses in each municipality or county in the state
759 during the annual conviction time period; and
760 (b) the coordinating council shall notify the State Tax Commission of any municipality
761 that does not have a law enforcement agency.
762 (7) By not later than December 1 of each year, the coordinating council shall notify the
763 State Tax Commission for the fiscal year of appropriation of:
764 (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
765 (b) any county that may receive a distribution allocated to a municipality described in
766 Subsection (3)(c)(ii);
767 (c) any municipality or county that may not receive a distribution because the
768 coordinating council has suspended the payment under Subsection (10)(a)(i); and
769 (d) any municipality or county that receives a distribution because the suspension of
770 payment has been cancelled under Subsection (10)(a)(ii).
771 (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
772 Commission shall annually distribute to each municipality and county the portion of the
773 appropriation that the municipality or county is eligible to receive under this section, except for
774 any municipality or county that the coordinating council notifies the State Tax Commission in
775 accordance with Subsection (7) may not receive a distribution in that fiscal year.
776 (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
777 counties in applying for distributions under this section.
778 (ii) The forms described in this Subsection (8) may require the submission of
779 information the State Tax Commission considers necessary to enable the State Tax
780 Commission to comply with this section.
781 (9) A municipality or county that receives any monies under this section during a fiscal
782 year shall by no later than October 1 following the fiscal year:
783 (a) report to the coordinating council:
784 (i) the programs or projects of the municipality or county that receive monies under
785 this section;
786 (ii) if the monies for programs or projects were exclusively used as required by
787 Subsection (2)(d);
788 (iii) indicators of whether the programs or projects that receive monies under this
789 section are effective; and
790 (iv) if [
791 or county; and
792 (b) provide the coordinating council a statement signed by the chief executive officer
793 of the county or municipality attesting that the monies received under this section were used in
794 addition to [
795 law enforcement and were not used to supplant those monies.
796 (10) (a) The coordinating council may, by a majority vote:
797 (i) suspend future payments under Subsection (8) to a municipality or county that:
798 (A) does not file a report that meets the requirements of Subsection (9); or
799 (B) the coordinating council finds does not use the monies as required by Subsection
800 (2)(d) on the basis of the report filed by the municipality or county under Subsection (9); and
801 (ii) cancel a suspension under Subsection (10)(a)(i).
802 (b) The State Tax Commission shall:
803 (i) retain monies that a municipality or county does not receive under Subsection
804 (10)(a); and
805 (ii) notify the coordinating council of the balance of retained monies under this
806 Subsection (10)(b) after the annual distribution under Subsection (8).
807 (11) (a) Subject to the requirements of this Subsection (11), the coordinating council
808 shall award the balance of retained monies under Subsection (10)(b):
809 (i) as prioritized by majority vote of the coordinating council; and
810 (ii) as grants to:
811 (A) a county;
812 (B) a municipality;
813 (C) the Department of Alcoholic Beverage Control;
814 (D) the Department of Human Services;
815 (E) the Department of Public Safety; or
816 (F) the Utah State Office of Education.
817 (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
818 council shall notify the State Tax Commission of [
819 (11).
820 (c) The State Tax Commission shall make payments of [
821 (i) upon receiving notice as provided under Subsection (11)(b); and
822 (ii) by not later than June 30 of the fiscal year of the appropriation.
823 (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
824 exclusively for programs or projects described in Subsection (2)(d).
825 Section 4. Section 32A-1-119 is amended to read:
826 32A-1-119. Disciplinary proceedings -- Procedure.
827 (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
828 final unappealable judgment or order is issued.
829 (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
830 proceeding to inquire into a matter necessary and proper for the administration of this title and
831 rules adopted under this title:
832 (i) the commission;
833 (ii) a hearing examiner appointed by the commission for the purposes provided in
834 Subsection 32A-1-107 (3);
835 (iii) the director; and
836 (iv) the department.
837 (b) Except as provided in this section or Section 32A-3-106 , the following shall
838 comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
839 Procedures Act, in an adjudicative proceeding:
840 (i) the commission;
841 (ii) a hearing examiner appointed by the commission;
842 (iii) the director; and
843 (iv) the department.
844 (c) Except where otherwise provided by law, an adjudicative proceeding before the
845 commission or a hearing examiner appointed by the commission shall be:
846 (i) video or audio recorded; and
847 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
848 Open and Public Meetings Act.
849 (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
850 concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
851 Personnel Management Act.
852 (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
853 conducted in accordance with rules, policies, and procedures made by the commission,
854 director, or department.
855 (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
856 under the authority of the commission, which is responsible for rendering a final decision and
857 order on a disciplinary matter.
858 (b) (i) Nothing in this section precludes the commission from appointing a necessary
859 officer, including a hearing examiner, from within or without the department, to administer the
860 disciplinary proceeding process.
861 (ii) A hearing examiner appointed by the commission:
862 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
863 (B) shall submit to the commission a report including:
864 (I) findings of fact determined on the basis of a preponderance of the evidence
865 presented at the hearing;
866 (II) conclusions of law; and
867 (III) recommendations.
868 (c) Nothing in this section precludes the commission, after the commission renders its
869 final decision and order, from having the director prepare, issue, and cause to be served on the
870 parties the final written order on behalf of the commission.
871 (4) Subject to Section 32A-1-119.5 :
872 (a) The department may initiate a disciplinary proceeding described in Subsection
873 (4)(b) if the department receives:
874 (i) a report from a government agency, peace officer, examiner, or investigator alleging
875 that a person listed in Subsections 32A-1-105 [
876 the rules of the commission;
877 (ii) a final adjudication of criminal liability against a person listed in Subsections
878 32A-1-105 [
879 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
880 Liability, against a person listed in Subsections 32A-1-105 [
881 on an alleged violation of this title.
882 (b) The department may initiate a disciplinary proceeding if the department receives an
883 item listed in Subsection (4)(a) to determine:
884 (i) whether a person listed in Subsections 32A-1-105 [
885 violated this title or rules of the commission; and
886 (ii) if a violation is found, the appropriate sanction to be imposed.
887 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
888 (i) if required by law;
889 (ii) before revoking or suspending a permit, license, or certificate of approval issued
890 under this title; or
891 (iii) before imposing a fine against a person listed in Subsections
892 32A-1-105 [
893 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
894 hearing after receiving proper notice is an admission of the charged violation.
895 (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
896 attend or remain in attendance.
897 (d) The commission or an appointed hearing examiner shall preside over a disciplinary
898 proceeding hearing.
899 (e) A disciplinary proceeding hearing may be closed only after the commission or
900 hearing examiner makes a written finding that the public interest in an open hearing is clearly
901 outweighed by factors enumerated in the closure order.
902 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
903 hearing may:
904 (A) administer oaths or affirmations;
905 (B) take evidence;
906 (C) take a deposition within or without this state; and
907 (D) require by subpoena from a place within this state:
908 (I) the testimony of a person at a hearing; and
909 (II) the production of a book, record, paper, contract, agreement, document, or other
910 evidence considered relevant to the inquiry.
911 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
912 produce a book, paper, document, or tangible thing as required in the subpoena.
913 (iii) A witness subpoenaed or called to testify or produce evidence who claims a
914 privilege against self-incrimination may not be compelled to testify, but the commission or the
915 hearing examiner shall file a written report with the county attorney or district attorney in the
916 jurisdiction where the privilege is claimed or where the witness resides setting forth the
917 circumstance of the claimed privilege.
918 (iv) (A) A person is not excused from obeying a subpoena without just cause.
919 (B) A district court within the judicial district in which a person alleged to be guilty of
920 willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
921 the party issuing the subpoena, may issue an order requiring the person to:
922 (I) appear before the issuing party; and
923 (II) (Aa) produce documentary evidence if so ordered; or
924 (Bb) give evidence regarding the matter in question.
925 (C) Failure to obey an order of the court may be punished by the court as contempt.
926 (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
927 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
928 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
929 recommend a penalty more severe than that initially sought by the department in the notice of
930 agency action.
931 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
932 shall be served upon the respective parties.
933 (iv) The respondent and the department shall be given reasonable opportunity to file a
934 written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
935 before final commission action.
936 (h) In a case heard by the commission, it shall issue its final decision and order in
937 accordance with Subsection (3).
938 (6) (a) The commission shall:
939 (i) render a final decision and order on a disciplinary action; and
940 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
941 (b) An order of the commission is considered final on the date the order becomes
942 effective.
943 (c) If the commission is satisfied that a person listed in Subsections
944 32A-1-105 [
945 accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
946 (i) suspend or revoke the permit, license, or certificate of approval;
947 (ii) impose a fine against a person listed in Subsections 32A-1-105 [
948 through (vii);
949 (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
950 licensee, or certificate holder; or
951 (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
952 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
953 32A-1-107 (1)(p) and (4).
954 (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
955 licensee shall prominently post a sign provided by the department:
956 (A) during the suspension; and
957 (B) at the entrance of the premises of the permittee or licensee.
958 (ii) The sign required by this Subsection (6)(e) shall:
959 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
960 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
961 sold, served, furnished, or consumed on these premises during the period of suspension."; and
962 (B) include the dates of the suspension period.
963 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
964 to be posted under this Subsection (6)(e) during the suspension period.
965 (f) If a permit or license is revoked, the commission may order the revocation of a
966 compliance bond posted by the permittee or licensee.
967 (g) A permittee or licensee whose permit or license is revoked may not reapply for a
968 permit or license under this title for three years from the date on which the permit or license is
969 revoked.
970 (h) The commission shall transfer all costs assessed into the General Fund in
971 accordance with Section 32A-1-113 .
972 (7) Subject to Section 32A-1-119.5 :
973 (a) In addition to an action taken against a permittee, licensee, or certificate holder
974 under this section, the department may initiate disciplinary action against an officer, employee,
975 or agent of a permittee, licensee, or certificate holder.
976 (b) If an officer, employee, or agent is found to have violated this title, the commission
977 may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
978 wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
979 officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
980 period determined by the commission.
981 (8) Subject to Section 32A-1-119.5 :
982 (a) The department may initiate a disciplinary proceeding for an alleged violation of
983 this title or the rules of the commission against:
984 (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
985 (ii) an officer, employee, agent, or representative of a person listed in Subsection
986 (8)(a)(i).
987 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
988 commission may, in addition to other penalties prescribed by this title, order:
989 (A) the removal of the manufacturer's, supplier's, or importer's one or more products
990 from the department's sales list; and
991 (B) a suspension of the department's purchase of the one or more products described in
992 Subsection (8)(b)(i)(A) for a period determined by the commission.
993 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
994 (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
995 beverage, or its officer, employee, agent, or representative violates this title; and
996 (B) the manufacturer, supplier, or importer:
997 (I) directly commits the violation; or
998 (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
999 the violation.
1000 (9) Subject to Section 32A-1-119.5 :
1001 (a) The department may initiate a disciplinary proceeding against a brewer holding a
1002 certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
1003 of the commission.
1004 (b) If the commission makes a finding that the brewer holding a certificate of approval
1005 violates this title or rules of the commission, the commission may take an action against the
1006 brewer holding a certificate of approval that the commission could take against a licensee
1007 including:
1008 (i) suspension or revocation of the certificate of approval; and
1009 (ii) imposition of a fine.
1010 (10) (a) An adjudicative proceeding under this title, including a disciplinary
1011 proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is
1012 a violation of statute that can be prosecuted criminally.
1013 (b) Unless specifically adopted in this title, a procedure or principal that is applicable
1014 to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title
1015 including:
1016 (i) Title 76, Chapter 1, General Provisions;
1017 (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
1018 (iii) Title 76, Chapter 3, Punishments; and
1019 (iv) Title 76, Chapter 4, Inchoate Offenses.
1020 (c) (i) The burden of proof in an adjudicative proceeding under this title is by a
1021 preponderance of the evidence.
1022 (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative
1023 defense, the subject has the burden of proof to establish the affirmative defense by the
1024 preponderance of the evidence.
1025 (d) In an adjudicative proceeding under this title, to find a violation of this title the
1026 commission:
1027 (i) is required to determine whether the conduct that constitutes the violation occurred;
1028 and
1029 (ii) is not required to make a finding of knowledge or intent unless knowledge or intent
1030 is expressly made an element of the violation by statute.
1031 [
1032 held by the commission or a hearing examiner appointed by the commission shall proceed
1033 formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
1034 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
1035 and welfare;
1036 (ii) the alleged violation involves:
1037 (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
1038 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
1039 Entertainment Act;
1040 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
1041 of the respondent;
1042 (D) interfering or refusing to cooperate with:
1043 (I) an authorized official of the department or the state in the discharge of the official's
1044 duties in relation to the enforcement of this title; or
1045 (II) a peace officer in the discharge of the peace officer's duties in relation to the
1046 enforcement of this title;
1047 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
1048 (F) unlawful importation of an alcoholic product; or
1049 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
1050 32A-12-601 (2), to a person other than the department or a military installation, except to the
1051 extent permitted by this title; or
1052 (iii) the department determines to seek in a disciplinary proceeding hearing:
1053 (A) an administrative fine exceeding $3,000;
1054 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
1055 or
1056 (C) a revocation of a license, permit, or certificate of approval.
1057 (b) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
1058 Administrative Rulemaking Act, to provide a procedure to implement this Subsection [
1059 (11).
1060 Section 5. Section 32A-1-119.5 is amended to read:
1061 32A-1-119.5. Timing of reporting violations.
1062 (1) As used in this section:
1063 (a) "Department compliance officer" means an individual who is:
1064 (i) an auditor or inspector; and
1065 (ii) employed by the department.
1066 (b) "Nondepartment enforcement agency" means an agency that:
1067 (i) (A) is a state agency other than the department; or
1068 (B) is an agency of a county, city, or town; and
1069 (ii) has a responsibility, as provided in another provision of this title, to enforce one or
1070 more provisions of this title.
1071 (c) "Nondepartment enforcement officer" means an individual who is:
1072 (i) a peace officer, examiner, or investigator; and
1073 (ii) employed by an agency described in Subsection (1)(b).
1074 (2) A disciplinary proceeding may not be initiated or maintained by the commission or
1075 department on the basis, in whole or in part, of a violation of this title unless a person listed in
1076 Subsections 32A-1-105 [
1077 notified by the department of the violation in accordance with this section.
1078 (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer
1079 may not report a violation of this title to the department more than eight business days after the
1080 day on which a nondepartment enforcement officer or agency completes an investigation that
1081 finds a violation of this title.
1082 (b) If the commission or department wants the right to initiate or maintain a
1083 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
1084 report described in Subsection (3)(a), the department shall notify a person listed in Subsections
1085 32A-1-105 [
1086 (i) by no later than eight business days of the day on which the department receives the
1087 report described in Subsection (3)(a); and
1088 (ii) that the commission or department may initiate or maintain a disciplinary
1089 proceeding on the basis, in whole or in part, of the violation.
1090 (4) If the commission or department wants the right to initiate or maintain a
1091 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
1092 report of a department compliance officer, the department shall notify a person listed in
1093 Subsections 32A-1-105 [
1094 title:
1095 (a) by no later than eight business days of the day on which the department compliance
1096 officer completes an investigation that finds a violation of this title; and
1097 (b) that the commission or department may initiate or maintain a disciplinary
1098 proceeding on the basis, in whole or in part, of the violation.
1099 (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
1100 a person listed in Subsection 32A-1-105 [
1101 (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
1102 the oral notification the department provides written notification.
1103 (b) The written notification described in Subsection (6)(a) may be sent outside the time
1104 periods required by this section.
1105 (7) The department shall maintain a record of a notification required by Subsection (2),
1106 (3)(b), or (4) that includes:
1107 (a) the name of the person notified; and
1108 (b) the date of the notification.
1109 Section 6. Section 32A-1-124 is enacted to read:
1110 32A-1-124. Transition for dispensing requirements for restaurants.
1111 (1) As used in this section:
1112 (a) "Affected restaurant" means a restaurant that as of May 12, 2009, dispensing an
1113 alcoholic beverage in a manner that as of November 1, 2011, would be in violation of:
1114 (i) for a restaurant liquor licensee, Subsections 32A-4-106 (7)(e) and (8)(b); or
1115 (ii) for a limited restaurant liquor licensee, Subsections 32A-4-307 (7)(e) and (8)(b).
1116 (b) "Category one" means an affected restaurant that as of May 12, 2009, has a counter
1117 or similar structure that:
1118 (i) is a bar as defined on May 11, 2009;
1119 (ii) has patron seating at the counter or structure;
1120 (iii) has a partition at one or more locations on the counter or structure that is along the
1121 width of the counter or structure; and
1122 (iv) has facilities for the dispensing or storage of an alcoholic beverage on the portion
1123 of the counter or structure that is separated by a partition described in Subsection (1)(b)(iii).
1124 (c) "Category two" means an affected restaurant that as of May 12, 2009, has a counter
1125 or similar structure that:
1126 (i) is a bar as defined on May 11, 2009;
1127 (ii) has patron seating at the counter or structure;
1128 (iii) has a partition at one or more locations on the counter or structure that is along the
1129 length of the counter or structure; and
1130 (iv) has facilities for the dispensing or storage of an alcoholic beverage:
1131 (A) on the portion of the counter or structure that is separated by a partition described
1132 in Subsection (1)(c)(iii); or
1133 (B) adjacent to the counter or structure in a manner visible to a patron sitting at the
1134 counter or structure.
1135 (d) "Category three" means an affected restaurant that as of May 12, 2009, has a
1136 counter or similar structure that:
1137 (i) is a bar as defined on May 11, 2009;
1138 (ii) has patron seating at the counter or structure; and
1139 (iii) has a partition or other structural mechanism that obscures facilities for the
1140 dispensing or storage of an alcoholic beverage that is not readily visible to a patron sitting at
1141 the counter or structure.
1142 (e) "Category four" means an affected restaurant that as of May 12, 2009, has a counter
1143 or similar structure that:
1144 (i) is a bar as defined on May 11, 2009; and
1145 (ii) has no patron seating at the counter or structure.
1146 (2) (a) If an affected restaurant chooses to renew its license effective November 1,
1147 2011, the affected restaurant has a credit for purchases from a state store or package agency in
1148 the following amounts:
1149 (i) for a category one affected restaurant, the credit is $5,000;
1150 (ii) for a category two affected restaurant, the credit is $10,000;
1151 (iii) for a category three affected restaurant, the credit is $0; and
1152 (iv) for a category four affected restaurant, the credit is $20,000.
1153 (b) A credit under this Subsection (2) begins November 1, 2011, and ends the day on
1154 which the affected restaurant has used all of the credit.
1155 (c) The department shall by contract provide for how a package agency accounts for a
1156 credit purchase made at the package agency by an affected restaurant.
1157 Section 7. Section 32A-4-101 is amended to read:
1158 32A-4-101. Commission's power to grant licenses -- Limitations.
1159 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1160 shall first obtain a license from the commission as provided in this part.
1161 (2) The commission may issue restaurant liquor licenses for the purpose of establishing
1162 restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
1163 consumption of liquor on premises operated as public restaurants.
1164 (3) (a) Subject to the other provisions of this Subsection (3), the total number of
1165 restaurant liquor licenses may not at any time aggregate more than that number determined by
1166 dividing the population of the state by [
1167 (b) For purposes of this Subsection (3), population shall be determined by:
1168 (i) the most recent United States decennial or special census; or
1169 (ii) another population determination made by the United States or state governments.
1170 (c) (i) The commission may issue seasonal restaurant liquor licenses established in
1171 areas the commission considers necessary.
1172 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
1173 (iii) A restaurant liquor license issued for operation during a summer time period is
1174 known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"
1175 restaurant liquor license shall:
1176 (A) begin on May 1; and
1177 (B) end on October 31.
1178 (iv) A restaurant liquor license issued for operation during a winter time period is
1179 known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
1180 restaurant liquor license shall:
1181 (A) begin on November 1; and
1182 (B) end on April 30.
1183 (v) In determining the number of restaurant liquor licenses that the commission may
1184 issue under this section:
1185 (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
1186 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1187 (d) (i) If the location, design, and construction of a hotel may require more than one
1188 restaurant liquor sales location within the hotel to serve the public convenience, the
1189 commission may authorize the sale of liquor at as many as three restaurant locations within the
1190 hotel under one license if:
1191 (A) the hotel has a minimum of 150 guest rooms; and
1192 (B) all locations under the license are:
1193 (I) within the same hotel facility; and
1194 (II) on premises that are managed or operated and owned or leased by the licensee.
1195 (ii) A facility other than a hotel shall have a separate restaurant liquor license for each
1196 restaurant where liquor is sold.
1197 (4) (a) Except as otherwise provided in this Subsection (4)[
1198 premises of a restaurant liquor license may not be established:
1199 (i) within 600 feet of a community location, as measured by the method in Subsection
1200 (4)[
1201 (ii) within 200 feet of a community location, measured in a straight line from the
1202 nearest entrance of the proposed outlet to the nearest property boundary of the community
1203 location.
1204 (b) With respect to the establishment of a restaurant liquor license, the commission
1205 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
1206 (i) the local authority grants its written consent to the variance;
1207 (ii) the commission finds that alternative locations for establishing a restaurant liquor
1208 license in the community are limited;
1209 (iii) a public hearing is held in the city, town, or county, and where practical in the
1210 neighborhood concerned;
1211 (iv) after giving full consideration to all of the attending circumstances and the policies
1212 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1213 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1214 welfare of the community; and
1215 (v) (A) the community location governing authority gives its written consent to the
1216 variance; or
1217 (B) when written consent is not given by the community location governing authority,
1218 the commission finds that the applicant has established that:
1219 (I) there is substantial unmet public demand to consume alcohol in a public setting
1220 within the geographic boundary of the local authority in which the restaurant is to be located;
1221 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1222 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1223 liquor license; and
1224 (III) there is no reasonably viable alternative location within the geographic boundary
1225 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1226 license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1227 (c) With respect to the establishment of a restaurant liquor license, the commission
1228 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
1229 (i) the community location at issue is:
1230 (A) a public library; or
1231 (B) a public park;
1232 (ii) the local authority grants its written consent to the variance;
1233 (iii) the commission finds that alternative locations for establishing a restaurant liquor
1234 license in the community are limited;
1235 (iv) a public hearing is held in the city, town, or county, and where practical in the
1236 neighborhood concerned;
1237 (v) after giving full consideration to all of the attending circumstances and the policies
1238 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1239 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1240 welfare of the community; and
1241 (vi) (A) the community location governing authority gives its written consent to the
1242 variance; or
1243 (B) when written consent is not given by the community location governing authority,
1244 the commission finds that the applicant has established that:
1245 (I) there is substantial unmet public demand to consume alcohol in a public setting
1246 within the geographic boundary of the local authority in which the restaurant is to be located;
1247 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1248 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
1249 liquor license; and
1250 (III) there is no reasonably viable alternative location within the geographic boundary
1251 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1252 license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
1253 (d) With respect to the premises of a restaurant liquor license issued by the commission
1254 that undergoes a change of ownership, the commission may waive or vary the proximity
1255 requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor license to
1256 the new owner of the premises if:
1257 (i) (A) the premises previously received a variance reducing the proximity requirement
1258 of Subsection (4)(a)(i); or
1259 (B) the premises received a variance reducing the proximity requirement of Subsection
1260 (4)(a)(ii) on or before May 4, 2008; or
1261 (ii) a variance from proximity requirements was otherwise allowed under this title.
1262 (e) With respect to the premises of a restaurant liquor license issued by the commission
1263 that undergoes a change of ownership, the commission may waive or vary the proximity
1264 requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor license to
1265 the new owner of the premises if:
1266 (i) when a restaurant liquor license was issued to a previous owner, the premises met
1267 the proximity requirements of Subsection (4)(a);
1268 (ii) the premises has had a restaurant liquor license at all times since the restaurant
1269 liquor license described in Subsection (4)(e)(i) was issued without a variance; and
1270 (iii) the community location located within the proximity requirements of Subsection
1271 (4)(a) after the day on which the restaurant liquor license described in Subsection (4)(e)(i) was
1272 issued.
1273 [
1274 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1275 community location.
1276 (5) (a) Nothing in this section prevents the commission from considering the proximity
1277 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
1278 decision on a proposed location.
1279 (b) For purposes of this Subsection (5), "educational facility" includes:
1280 (i) a nursery school;
1281 (ii) an infant day care center; and
1282 (iii) a trade and technical school.
1283 Section 8. Section 32A-4-102 is amended to read:
1284 32A-4-102. Application and renewal requirements.
1285 (1) A person seeking a restaurant liquor license under this part shall file a written
1286 application with the department, in a form prescribed by the department. It shall be
1287 accompanied by:
1288 (a) a nonrefundable $250 application fee;
1289 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1290 (c) written consent of the local authority;
1291 (d) a copy of the applicant's current business license;
1292 (e) evidence of proximity to any community location, with proximity requirements
1293 being governed by Section 32A-4-101 ;
1294 (f) a bond as specified by Section 32A-4-105 ;
1295 (g) a floor plan of the restaurant, including consumption areas and the area where the
1296 applicant proposes to keep, store, and sell liquor;
1297 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1298 form satisfactory to the department;
1299 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1300 [
1301 (j) a signed consent form stating that the restaurant will permit any authorized
1302 representative of the commission, department, or any law enforcement officer unrestricted right
1303 to enter the restaurant;
1304 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1305 company, proper verification evidencing that the person or persons signing the restaurant
1306 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1307 company; and
1308 (l) any other information the commission or department may require.
1309 (2) (a) All restaurant liquor licenses expire on October 31 of each year.
1310 (b) A person desiring to renew the person's restaurant liquor license shall by no later
1311 than September 30 submit:
1312 (i) a completed renewal application to the department; and
1313 (ii) a renewal fee in the following amount:
1314 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1315 under $5,000 $750
1316 equals or exceeds $5,000 but less than $10,000 $900
1317 equals or exceeds $10,000 but less than $25,000 $1,250
1318 equals or exceeds $25,000 $1,500
1319 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1320 the license effective on the date the existing license expires.
1321 (d) A renewal application shall be in a form as prescribed by the department.
1322 (e) To renew a restaurant liquor license effective November 1, 2011, a restaurant liquor
1323 licensee shall provide evidence of compliance with Subsections 32A-1-106 (7)(e) and (8)(b).
1324 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1325 suspend or revoke a restaurant liquor license if the restaurant liquor licensee does not
1326 immediately notify the department of any change in:
1327 (a) ownership of the restaurant;
1328 (b) for a corporate owner, the:
1329 (i) corporate officers or directors; or
1330 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1331 corporation; or
1332 (c) for a limited liability company:
1333 (i) managers; or
1334 (ii) members owning at least 20% of the limited liability company.
1335 Section 9. Section 32A-4-106 is amended to read:
1336 32A-4-106. Operational restrictions.
1337 A person granted a restaurant liquor license and the employees and management
1338 personnel of the restaurant shall comply with the following conditions and requirements.
1339 Failure to comply may result in a suspension or revocation of the restaurant liquor license or
1340 other disciplinary action taken against individual employees or management personnel.
1341 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
1342 store or package agency.
1343 (b) Liquor purchased from a state store or package agency may be transported by the
1344 restaurant liquor licensee from the place of purchase to the licensed premises.
1345 (c) Payment for liquor shall be made in accordance with rules established by the
1346 commission.
1347 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
1348 a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
1349 dispensing system approved by the department in accordance with commission rules adopted
1350 under this title, except that:
1351 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1352 system if used as a secondary flavoring ingredient in a beverage subject to the following
1353 restrictions:
1354 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1355 a primary spirituous liquor;
1356 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1357 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
1358 on the floor plan provided to the department; and
1359 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1360 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1361 system if used:
1362 (i) as a flavoring on a dessert; and
1363 (ii) in the preparation of a flaming food dish, drink, or dessert;
1364 (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
1365 and
1366 (d) a restaurant patron may have no more than one spirituous liquor drink at a time
1367 before the patron.
1368 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
1369 exceed five ounces per glass or individual portion.
1370 (ii) An individual portion of wine may be served to a patron in more than one glass as
1371 long as the total amount of wine does not exceed five ounces.
1372 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1373 Subsection (7)[
1374 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1375 fixed by the commission to a table of four or more persons.
1376 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1377 fixed by the commission to a table of less than four persons.
1378 (c) A wine service may be performed and a service charge assessed by a restaurant
1379 liquor licensee as authorized by commission rule for wine purchased at the restaurant.
1380 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1381 price fixed by the commission.
1382 (b) A flavored malt beverage may be served in an original container not exceeding one
1383 liter at a price fixed by the commission.
1384 (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
1385 commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
1386 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
1387 on-premise consumption:
1388 (A) in an open container; and
1389 (B) on draft.
1390 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1391 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1392 container that exceeds one liter.
1393 (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
1394 (i) may do so without obtaining a separate on-premise beer retailer license from the
1395 commission; and
1396 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1397 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1398 inconsistent with or less restrictive than the operational restrictions under this part.
1399 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1400 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1401 restaurant's:
1402 (i) state liquor license; and
1403 (ii) alcoholic beverage license issued by the local authority.
1404 (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1405 designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
1406 first applies for and receives approval from the department for a change of location within the
1407 restaurant.
1408 (7) (a) (i) A patron may only make an alcoholic beverage purchase in the restaurant
1409 from and be served by a person employed, designated, and trained by the restaurant liquor
1410 licensee to sell and serve an alcoholic beverage.
1411 (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1412 employee of the restaurant or carries bottled wine onto the premises of the restaurant pursuant
1413 to Subsection (14) may thereafter serve wine from the bottle to the patron or others at the
1414 patron's table.
1415 (b) An alcoholic beverage shall be delivered by a server to the patron.
1416 (c) An alcoholic beverage may only be consumed at the patron's table or counter where
1417 food is served.
1418 (d) [
1419 to or consumed by a patron at a bar.
1420 (ii) On and after November 1, 2011, a restaurant may not have a bar on its premises.
1421 (e) On and after November 1, 2011, a restaurant liquor licensee may dispense an
1422 alcoholic beverage only:
1423 (i) from an area that is:
1424 (A) separated from an area for the consumption of food by a restaurant patron by:
1425 (I) a wall that:
1426 (Aa) is floor-to-ceiling; or
1427 (Bb) starts at the floor and is at least 10 feet high;
1428 (II) a different floor level; or
1429 (III) a similar substantial physical barrier; and
1430 (B) not visible to or accessible by a restaurant patron;
1431 (ii) if the restaurant uses an alcoholic beverage or alcoholic product that is stored in an
1432 area described in Subsection (7)(e)(i); and
1433 (iii) if any instrument or equipment used to dispense an alcoholic beverage is located in
1434 an area described in Subsection (7)(e)(i).
1435 [
1436 kind at a time before the patron, subject to the limitation in Subsection (2)(d).
1437 (8) (a) [
1438 hours and days when liquor sales are authorized by law.
1439 (b) On and after November 1, 2011, a restaurant liquor licensee shall store an alcoholic
1440 beverage or alcoholic product in a storage area described in Subsection (7)(e)(i).
1441 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
1442 restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
1443 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1444 Licenses, for on-premise beer licensees.
1445 (10) An alcoholic beverage may not be sold except in connection with an order for
1446 food prepared, sold, and served at the restaurant.
1447 (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
1448 (a) minor;
1449 (b) person actually, apparently, or obviously intoxicated;
1450 (c) known habitual drunkard; or
1451 (d) known interdicted person.
1452 (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
1453 (ii) Liquor may not be sold at a discount price on any date or at any time.
1454 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1455 beverage to the restaurant liquor licensee.
1456 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1457 over consumption or intoxication.
1458 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1459 hours of a restaurant liquor licensee's business day such as a "happy hour."
1460 (e) More than one alcoholic beverage may not be sold or served for the price of a single
1461 alcoholic beverage.
1462 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
1463 not be sold or served for a fixed price.
1464 (g) A restaurant liquor licensee may not engage in a public promotion involving or
1465 offering free an alcoholic beverage to the general public.
1466 (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
1467 (a) the restaurant liquor licensee; or
1468 (b) an employee or agent of the restaurant liquor licensee.
1469 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
1470 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1471 discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
1472 licensee for on-premise consumption.
1473 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
1474 officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
1475 (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
1476 consumption; or
1477 (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
1478 restaurant liquor licensee's premises.
1479 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1480 or other representative of the restaurant liquor licensee upon entering the restaurant.
1481 (d) A wine service may be performed and a service charge assessed by a restaurant
1482 liquor licensee as authorized by commission rule for wine carried in by a patron.
1483 (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
1484 employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
1485 restaurant premises an open container that:
1486 (i) is used primarily for drinking purposes; and
1487 (ii) contains an alcoholic beverage.
1488 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
1489 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
1490 onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
1491 recorked or recapped before removal.
1492 (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
1493 alcoholic beverage.
1494 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1495 employed to enter the sale at a cash register or other sales recording device.
1496 (17) An employee of a restaurant liquor licensee, while on duty, may not:
1497 (a) consume an alcoholic beverage; or
1498 (b) be intoxicated.
1499 (18) A charge or fee made in connection with the sale, service, or consumption of liquor
1500 may be stated in food or alcoholic beverage menus including:
1501 (a) a set-up charge;
1502 (b) a service charge; or
1503 (c) a chilling fee.
1504 (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
1505 (a) the liquor license that is issued by the department;
1506 (b) a list of the types and brand names of liquor being served through its calibrated
1507 metered dispensing system; and
1508 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1509 drugs is a serious crime that is prosecuted aggressively in Utah."
1510 (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
1511 licensee:
1512 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1513 Chapter 10, Part 11, Gambling;
1514 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1515 Part 11, Gambling; or
1516 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1517 the risking of something of value for a return or for an outcome when the return or outcome is
1518 based upon an element of chance, excluding the playing of an amusement device that confers
1519 only an immediate and unrecorded right of replay not exchangeable for value.
1520 (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record showing
1521 in detail:
1522 (i) quarterly expenditures made separately for:
1523 (A) malt or brewed beverages;
1524 (B) set-ups;
1525 (C) liquor;
1526 (D) food; and
1527 (E) all other items required by the department; and
1528 (ii) sales made separately for:
1529 (A) malt or brewed beverages;
1530 (B) set-ups;
1531 (C) food; and
1532 (D) all other items required by the department.
1533 (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
1534 (i) in a form approved by the department; and
1535 (ii) current for each three-month period.
1536 (c) An expenditure shall be supported by:
1537 (i) a delivery ticket;
1538 (ii) an invoice;
1539 (iii) a receipted bill;
1540 (iv) a canceled check;
1541 (v) a petty cash voucher; or
1542 (vi) other sustaining datum or memorandum.
1543 (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
1544 liquor licensee shall maintain accounting and other records and documents as the department
1545 may require.
1546 (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
1547 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
1548 other document of the restaurant that is required to be made, maintained, or preserved by this
1549 title or the rules of the commission for the purpose of deceiving the commission or the
1550 department, or an official or employee of the commission or department, is subject to:
1551 (i) the suspension or revocation of the restaurant's liquor license; and
1552 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1553 (22) (a) A restaurant liquor licensee may not close or cease operation for a period
1554 longer than 240 hours, unless:
1555 (i) the restaurant liquor licensee notifies the department in writing at least seven days
1556 before the day on which the restaurant liquor licensee closes or ceases operation; and
1557 (ii) the closure or cessation of operation is first approved by the department.
1558 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
1559 restaurant liquor licensee shall immediately notify the department by telephone.
1560 (c) (i) The department may authorize a closure or cessation of operation for a period
1561 not to exceed 60 days.
1562 (ii) The department may extend the initial period an additional 30 days upon:
1563 (A) written request of the restaurant liquor licensee; and
1564 (B) a showing of good cause.
1565 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1566 commission approval.
1567 (d) A notice shall include:
1568 (i) the dates of closure or cessation of operation;
1569 (ii) the reason for the closure or cessation of operation; and
1570 (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
1571 (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
1572 authorization before closure or cessation of operation results in an automatic forfeiture of:
1573 (i) the license; and
1574 (ii) the unused portion of the license fee for the remainder of the license year effective
1575 immediately.
1576 (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
1577 approved date results in an automatic forfeiture of:
1578 (i) the license; and
1579 (ii) the unused portion of the license fee for the remainder of the license year.
1580 (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
1581 business from the sale of food, which does not include mix for an alcoholic beverage or service
1582 charges.
1583 (24) A restaurant liquor license may not be transferred from one location to another,
1584 without prior written approval of the commission.
1585 (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
1586 assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
1587 to another person whether for monetary gain or not.
1588 (b) A restaurant liquor license has no monetary value for the purpose of any type of
1589 disposition.
1590 (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
1591 shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
1592 beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
1593 beverage ordered or consumed.
1594 (27) A person's willingness to serve an alcoholic beverage may not be made a
1595 condition of employment as a server with a restaurant that has a restaurant liquor license.
1596 (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
1597 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
1598 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
1599 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
1600 58-37-2 ; or
1601 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
1602 Section 58-37a-3 .
1603 Section 10. Section 32A-4-202 is amended to read:
1604 32A-4-202. Application and renewal requirements.
1605 (1) A person seeking an airport lounge liquor license under this part shall file a written
1606 application with the department, in a form prescribed by the department, accompanied by:
1607 (a) a nonrefundable $250 application fee;
1608 (b) an initial license fee of $7,000, which is refundable if a license is not granted;
1609 (c) written consent of the local and airport authority;
1610 (d) a copy of the applicant's current business license;
1611 (e) a bond as specified by Section 32A-4-205 ;
1612 (f) a floor plan of the airport lounge, including consumption areas and the area where
1613 the applicant proposes to keep, store, and sell liquor;
1614 (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
1615 public that alcoholic beverages are sold and consumed there;
1616 (h) evidence that the airport lounge is carrying public liability insurance in an amount
1617 and form satisfactory to the department;
1618 (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
1619 [
1620 (j) a signed consent form stating that the airport lounge will permit any authorized
1621 representative of the commission, department, or any law enforcement officer unrestricted right
1622 to enter the airport lounge;
1623 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1624 company, proper verification evidencing that the person or persons signing the airport lounge
1625 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1626 company; and
1627 (l) any other information the commission or department may require.
1628 (2) (a) All airport lounge liquor licenses expire on October 31 of each year.
1629 (b) A person desiring to renew that person's airport lounge liquor license shall submit a
1630 renewal fee of $5,000 and a completed renewal application to the department no later than
1631 September 30.
1632 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1633 the license, effective on the date the existing license expires.
1634 (d) Renewal applications shall be in a form as prescribed by the department.
1635 (3) To ensure compliance with Subsection 32A-4-206 (21), the commission may revoke
1636 an airport lounge liquor license if the airport liquor licensee does not immediately notify the
1637 department of any change in:
1638 (a) ownership of the licensee;
1639 (b) for a corporate owner, the:
1640 (i) corporate officers or directors; or
1641 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1642 corporation; or
1643 (c) for a limited liability company:
1644 (i) managers; or
1645 (ii) members owning at least 20% of the limited liability company.
1646 Section 11. Section 32A-4-302 is amended to read:
1647 32A-4-302. Commission's power to grant licenses -- Limitations.
1648 (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
1649 and beer on its premises, but not spirituous liquor or[
1650 malt beverage, shall obtain a limited restaurant license from the commission as provided in this
1651 part before selling or allowing the consumption of wine, heavy beer, or beer on its premises.
1652 (2) (a) Subject to the other provisions of this section, the commission may issue limited
1653 restaurant licenses for the purpose of establishing limited restaurant outlets at places and in
1654 numbers the commission considers proper for the storage, sale, and consumption of wine,
1655 heavy beer, and beer on premises operated as public restaurants.
1656 (b) The total number of limited restaurant licenses issued under this part may not at any
1657 time aggregate more than that number determined by dividing the population of the state by
1658 [
1659 (c) For purposes of this Subsection (2), population shall be determined by:
1660 (i) the most recent United States decennial or special census; or
1661 (ii) another population determination made by the United States or state governments.
1662 (3) (a) (i) The commission may issue seasonal limited restaurant licenses established in
1663 areas the commission considers necessary.
1664 (ii) A seasonal limited restaurant license shall be for a period of six consecutive
1665 months.
1666 (b) (i) A limited restaurant license issued for operation during a summer time period is
1667 known as a "Seasonal A" limited restaurant license. The period of operation for a "Seasonal A"
1668 limited restaurant license shall:
1669 (A) begin on May 1; and
1670 (B) end on October 31.
1671 (ii) A limited restaurant license issued for operation during a winter time period is
1672 known as a "Seasonal B" limited restaurant license. The period of operation for a "Seasonal B"
1673 limited restaurant license shall:
1674 (A) begin on November 1; and
1675 (B) end on April 30.
1676 (iii) In determining the number of limited restaurant licenses that the commission may
1677 issue under this section:
1678 (A) a seasonal limited restaurant license is counted as 1/2 of one limited restaurant
1679 license; and
1680 (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
1681 limited restaurant license.
1682 (c) If the location, design, and construction of a hotel may require more than one
1683 limited restaurant sales location within the hotel to serve the public convenience, the
1684 commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
1685 restaurant locations within the hotel under one license if:
1686 (i) the hotel has a minimum of 150 guest rooms; and
1687 (ii) all locations under the license are:
1688 (A) within the same hotel facility; and
1689 (B) on premises that are:
1690 (I) managed or operated by the licensee; and
1691 (II) owned or leased by the licensee.
1692 (d) A facility other than a hotel shall have a separate limited restaurant license for each
1693 restaurant where wine, heavy beer, and beer are sold.
1694 (4) (a) Except as otherwise provided in this Subsection (4)[
1695 premises of a limited restaurant license may not be established:
1696 (i) within 600 feet of a community location, as measured by the method in Subsection
1697 (4)[
1698 (ii) within 200 feet of a community location, measured in a straight line from the
1699 nearest entrance of the proposed outlet to the nearest property boundary of the community
1700 location.
1701 (b) With respect to the establishment of a limited restaurant license, the commission
1702 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
1703 (i) the local authority grants its written consent to the variance;
1704 (ii) the commission finds that alternative locations for establishing a limited restaurant
1705 license in the community are limited;
1706 (iii) a public hearing is held in the city, town, or county, and where practical in the
1707 neighborhood concerned;
1708 (iv) after giving full consideration to all of the attending circumstances and the policies
1709 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1710 license would not be detrimental to the public health, peace, safety, and welfare of the
1711 community; and
1712 (v) (A) the community location governing authority gives its written consent to the
1713 variance; or
1714 (B) when written consent is not given by the community location governing authority,
1715 the commission finds that the applicant has established that:
1716 (I) there is substantial unmet public demand to consume alcohol in a public setting
1717 within the geographic boundary of the local authority in which the limited restaurant licensee is
1718 to be located;
1719 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1720 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
1721 restaurant license; and
1722 (III) there is no reasonably viable alternative location within the geographic boundary
1723 of the local authority in which the limited restaurant licensee is to be located for establishing a
1724 limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1725 (c) With respect to the establishment of a limited restaurant license, the commission
1726 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
1727 (i) the community location at issue is:
1728 (A) a public library; or
1729 (B) a public park;
1730 (ii) the local authority grants its written consent to the variance;
1731 (iii) the commission finds that alternative locations for establishing a limited restaurant
1732 license in the community are limited;
1733 (iv) a public hearing is held in the city, town, or county, and where practical in the
1734 neighborhood concerned;
1735 (v) after giving full consideration to all of the attending circumstances and the policies
1736 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1737 limited restaurant license would not be detrimental to the public health, peace, safety, and
1738 welfare of the community; and
1739 (vi) (A) the community location governing authority gives its written consent to the
1740 variance; or
1741 (B) when written consent is not given by the community location governing authority,
1742 the commission finds that the applicant has established that:
1743 (I) there is substantial unmet public demand to consume alcohol in a public setting
1744 within the geographic boundary of the local authority in which the limited restaurant licensee is
1745 to be located;
1746 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1747 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
1748 restaurant license; and
1749 (III) there is no reasonably viable alternative location within the geographic boundary
1750 of the local authority in which the limited restaurant licensee is to be located for establishing a
1751 limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
1752 (d) With respect to the premises of a limited restaurant license issued by the
1753 commission that undergoes a change of ownership, the commission may waive or vary the
1754 proximity requirements of Subsection (4)(a) in considering whether to grant a limited
1755 restaurant license to the new owner of the premises if:
1756 (i) (A) the premises previously received a variance reducing the proximity requirement
1757 of Subsection (4)(a)(i); or
1758 (B) the premises received a variance reducing the proximity requirement of Subsection
1759 (4)(a)(ii) on or before May 4, 2008; or
1760 (ii) a variance from proximity requirements was otherwise allowed under this title.
1761 (e) With respect to the premises of a limited restaurant license issued by the
1762 commission that undergoes a change of ownership, the commission may waive or vary the
1763 proximity requirements of Subsection (4)(a) in considering whether to grant a limited
1764 restaurant license to the new owner of the premises if:
1765 (i) when a limited restaurant license was issued to a previous owner, the premises met
1766 the proximity requirements of Subsection (4)(a);
1767 (ii) the premises has had a limited restaurant license at all times since the limited
1768 restaurant license described in Subsection (4)(e)(i) was issued without a variance; and
1769 (iii) the community location located within the proximity requirements of Subsection
1770 (4)(a) after the day on which the limited restaurant license described in Subsection (4)(e)(i) was
1771 issued.
1772 [
1773 the nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
1774 the property boundary of the community location.
1775 (5) (a) Nothing in this section prevents the commission from considering the proximity
1776 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
1777 decision on a proposed location.
1778 (b) For purposes of this Subsection (5), "educational facility" includes:
1779 (i) a nursery school;
1780 (ii) an infant day care center; and
1781 (iii) a trade and technical school.
1782 Section 12. Section 32A-4-303 is amended to read:
1783 32A-4-303. Application and renewal requirements.
1784 (1) A person seeking a limited restaurant license under this part shall file a written
1785 application with the department, in a form prescribed by the department. The application shall
1786 be accompanied by:
1787 (a) a nonrefundable $250 application fee;
1788 (b) an initial license fee of $500, which is refundable if a license is not granted;
1789 (c) written consent of the local authority;
1790 (d) a copy of the applicant's current business license;
1791 (e) evidence of proximity to any community location, with proximity requirements
1792 being governed by Section 32A-4-302 ;
1793 (f) a bond as specified by Section 32A-4-306 ;
1794 (g) a floor plan of the restaurant, including:
1795 (i) consumption areas; and
1796 (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
1797 beer;
1798 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1799 form satisfactory to the department;
1800 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1801 [
1802 (j) a signed consent form stating that the restaurant will permit any authorized
1803 representative of the commission, department, or any law enforcement officer unrestricted right
1804 to enter the restaurant;
1805 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1806 company, proper verification evidencing that the person or persons signing the restaurant
1807 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1808 company; and
1809 (l) any other information the commission or department may require.
1810 (2) (a) All limited restaurant licenses expire on October 31 of each year.
1811 (b) A person desiring to renew that person's limited restaurant license shall submit:
1812 (i) a renewal fee of $300; and
1813 (ii) a renewal application to the department no later than September 30.
1814 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1815 the license effective on the date the existing license expires.
1816 (d) A renewal application shall be in a form as prescribed by the department.
1817 (e) To renew a limited restaurant license effective November 1, 2011, a limited
1818 restaurant licensee shall provide evidence of compliance with Subsections 32A-4-307 (7)(e) and
1819 (8)(b).
1820 (3) To ensure compliance with Subsection 32A-4-307 (25), the commission may
1821 suspend or revoke a limited restaurant license if the limited restaurant licensee does not
1822 immediately notify the department of any change in:
1823 (a) ownership of the restaurant;
1824 (b) for a corporate owner, the:
1825 (i) corporate officer or directors; or
1826 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1827 corporation; or
1828 (c) for a limited liability company:
1829 (i) managers; or
1830 (ii) members owning at least 20% of the limited liability company.
1831 Section 13. Section 32A-4-307 is amended to read:
1832 32A-4-307. Operational restrictions.
1833 A person granted a limited restaurant license and the employees and management
1834 personnel of the limited restaurant shall comply with the following conditions and
1835 requirements. Failure to comply may result in a suspension or revocation of the license or
1836 other disciplinary action taken against individual employees or management personnel.
1837 (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
1838 except from a state store or package agency.
1839 (b) Wine and heavy beer purchased from a state store or package agency may be
1840 transported by the limited restaurant licensee from the place of purchase to the licensed
1841 premises.
1842 (c) Payment for wine and heavy beer shall be made in accordance with rules
1843 established by the commission.
1844 (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
1845 products listed in Subsection (2)(c) on the premises of the limited restaurant.
1846 (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
1847 restaurant except for use:
1848 (i) as a flavoring on a dessert; and
1849 (ii) in the preparation of a flaming food dish, drink, or dessert.
1850 (c) This Subsection (2) applies to:
1851 (i) spirituous liquor; and
1852 (ii) on or after October 1, 2008, a flavored malt beverage.
1853 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
1854 exceed five ounces per glass or individual portion.
1855 (ii) An individual portion may be served to a patron in more than one glass as long as
1856 the total amount of wine does not exceed five ounces.
1857 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1858 Subsection (7)[
1859 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1860 fixed by the commission to a table of four or more persons.
1861 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1862 fixed by the commission to a table of less than four persons.
1863 (c) A wine service may be performed and a service charge assessed by the limited
1864 restaurant licensee as authorized by commission rule for wine purchased at the limited
1865 restaurant.
1866 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1867 price fixed by the commission.
1868 (b) A service charge may be assessed by the limited restaurant licensee as authorized
1869 by commission rule for heavy beer purchased at the limited restaurant.
1870 (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
1871 on-premise consumption:
1872 (A) in an open container; and
1873 (B) on draft.
1874 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1875 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1876 container that exceeds one liter.
1877 (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
1878 (i) may do so without obtaining a separate on-premise beer retailer license from the
1879 commission; and
1880 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1881 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1882 inconsistent with or less restrictive than the operational restrictions under this part.
1883 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1884 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
1885 restaurant's:
1886 (i) limited restaurant license; and
1887 (ii) alcoholic beverage license issued by the local authority.
1888 (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
1889 as designated in the limited restaurant licensee's application, unless the limited restaurant
1890 licensee first applies for and receives approval from the department for a change of location
1891 within the limited restaurant.
1892 (7) (a) (i) A patron may only make an alcoholic beverage purchase in a limited
1893 restaurant from and be served by a person employed, designated, and trained by the limited
1894 restaurant licensee to sell and serve an alcoholic beverage.
1895 (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1896 employee of the limited restaurant licensee or carries bottled wine onto the premises of the
1897 limited restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
1898 patron or others at the patron's table.
1899 (b) An alcoholic beverage shall be delivered by a server to the patron.
1900 (c) An alcoholic beverage may only be consumed at the patron's table or counter where
1901 food is served.
1902 (d) [
1903 to or consumed by a patron at a bar.
1904 (ii) On and after November 1, 2011, a restaurant may not have a bar on its premises.
1905 (e) On and after November 1, 2011, a limited restaurant licensee may dispense an
1906 alcoholic beverage only:
1907 (i) from an area that is:
1908 (A) separated from an area for the consumption of food by a restaurant patron by:
1909 (I) a wall that:
1910 (Aa) is floor-to-ceiling; or
1911 (Bb) starts at the floor and is at least 10 feet high;
1912 (II) a different floor level; or
1913 (III) a similar substantial physical barrier; and
1914 (B) not visible to or accessible by a restaurant patron;
1915 (ii) if the restaurant uses an alcoholic beverage or alcoholic product that is stored in an
1916 area described in Subsection (7)(e)(i); and
1917 (iii) if any instrument or equipment used to dispense an alcoholic beverage is located in
1918 an area described in Subsection (7)(e)(i).
1919 [
1920 any kind at a time before the patron.
1921 (8) (a) [
1922 than those hours and days when alcoholic beverage sales are authorized by law.
1923 (b) On and after November 1, 2011, a restaurant liquor licensee shall store an alcoholic
1924 beverage or alcoholic product in a storage area described in Subsection (7)(e)(i).
1925 (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
1926 furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
1927 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1928 Licenses, for on-premise beer licensees.
1929 (10) An alcoholic beverage may not be sold except in connection with an order of food
1930 prepared, sold, and served at the limited restaurant.
1931 (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
1932 (a) minor;
1933 (b) person actually, apparently, or obviously intoxicated;
1934 (c) known habitual drunkard; or
1935 (d) known interdicted person.
1936 (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
1937 (ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
1938 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1939 beverage to the limited restaurant licensee.
1940 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1941 over consumption or intoxication.
1942 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1943 hours of the limited restaurant licensee's business day such as a "happy hour."
1944 (e) More than one alcoholic beverage may not be sold or served for the price of a single
1945 alcoholic beverage.
1946 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
1947 not be sold or served for a fixed price.
1948 (g) A limited restaurant licensee may not engage in a public promotion involving or
1949 offering free alcoholic beverages to the general public.
1950 (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
1951 by:
1952 (a) the limited restaurant licensee; or
1953 (b) an employee or agent of the limited restaurant licensee.
1954 (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
1955 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1956 discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
1957 restaurant licensee for on-premise consumption.
1958 (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
1959 officer, manager, employee, or agent of a limited restaurant licensee may not allow:
1960 (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
1961 on-premise consumption; or
1962 (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
1963 limited restaurant licensee's premises.
1964 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1965 or other representative of the limited restaurant licensee upon entering the limited restaurant.
1966 (d) A wine service may be performed and a service charge assessed by the limited
1967 restaurant licensee as authorized by commission rule for wine carried in by a patron.
1968 (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
1969 employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
1970 limited restaurant premises an open container that:
1971 (i) is used primarily for drinking purposes; and
1972 (ii) contains an alcoholic beverage.
1973 (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
1974 contents of a bottle of wine if before removal, the bottle is recorked or recapped.
1975 (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
1976 alcoholic beverage.
1977 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1978 employed to enter the sale at a cash register or other sales recording device.
1979 (17) An employee of a limited restaurant licensee, while on duty, may not:
1980 (a) consume an alcoholic beverage; or
1981 (b) be intoxicated.
1982 (18) A charge or fee made in connection with the sale, service, or consumption of wine
1983 or heavy beer may be stated in food or alcoholic beverage menus including:
1984 (a) a service charge; or
1985 (b) a chilling fee.
1986 (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
1987 (a) the limited restaurant license that is issued by the department; and
1988 (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1989 drugs is a serious crime that is prosecuted aggressively in Utah."
1990 (20) A limited restaurant licensee may not on the premises of the restaurant:
1991 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1992 Chapter 10, Part 11, Gambling;
1993 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1994 Part 11, Gambling; or
1995 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1996 the risking of something of value for a return or for an outcome when the return or outcome is
1997 based upon an element of chance, excluding the playing of an amusement device that confers
1998 only an immediate and unrecorded right of replay not exchangeable for value.
1999 (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
2000 showing in detail:
2001 (i) quarterly expenditures made separately for:
2002 (A) wine;
2003 (B) heavy beer;
2004 (C) beer;
2005 (D) food; and
2006 (E) all other items required by the department; and
2007 (ii) sales made separately for:
2008 (A) wine;
2009 (B) heavy beer;
2010 (C) beer;
2011 (D) food; and
2012 (E) all other items required by the department.
2013 (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
2014 (i) in a form approved by the department; and
2015 (ii) current for each three-month period.
2016 (c) An expenditure shall be supported by:
2017 (i) a delivery ticket;
2018 (ii) an invoice;
2019 (iii) a receipted bill;
2020 (iv) a canceled check;
2021 (v) a petty cash voucher; or
2022 (vi) other sustaining datum or memorandum.
2023 (d) In addition to the ledger or record maintained under Subsections (21)(a) through
2024 (c), a limited restaurant licensee shall maintain accounting and other records and documents as
2025 the department may require.
2026 (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
2027 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
2028 other document of the limited restaurant that is required to be made, maintained, or preserved
2029 by this title or the rules of the commission for the purpose of deceiving the commission, the
2030 department, or an official or employee of the commission or department, is subject to:
2031 (i) the suspension or revocation of the limited restaurant's license; and
2032 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
2033 (22) (a) A limited restaurant licensee may not close or cease operation for a period
2034 longer than 240 hours, unless:
2035 (i) the limited restaurant licensee notifies the department in writing at least seven days
2036 before the day on which the limited restaurant licensee closes or ceases operation; and
2037 (ii) the closure or cessation of operation is first approved by the department.
2038 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
2039 restaurant licensee shall immediately notify the department by telephone.
2040 (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
2041 cessation of operation for a period not to exceed 60 days.
2042 (ii) The department may extend the initial period an additional 30 days upon:
2043 (A) written request of the limited restaurant licensee; and
2044 (B) a showing of good cause.
2045 (iii) A closure or cessation of operation may not exceed a total of 90 days without
2046 commission approval.
2047 (d) A notice required by Subsection (22)(a) shall include:
2048 (i) the dates of closure or cessation of operation;
2049 (ii) the reason for the closure or cessation of operation; and
2050 (iii) the date on which the limited restaurant licensee will reopen or resume operation.
2051 (e) Failure of the limited restaurant licensee to provide notice and to obtain department
2052 authorization before closure or cessation of operation results in an automatic forfeiture of:
2053 (i) the limited restaurant license; and
2054 (ii) the unused portion of the license fee for the remainder of the license year effective
2055 immediately.
2056 (f) Failure of the limited restaurant licensee to reopen or resume operation by the
2057 approved date results in an automatic forfeiture of:
2058 (i) the limited restaurant license; and
2059 (ii) the unused portion of the license fee for the remainder of the license year.
2060 (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
2061 business from the sale of food, which does not include service charges.
2062 (24) A limited restaurant license may not be transferred from one location to another,
2063 without prior written approval of the commission.
2064 (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
2065 give, or attempt in any way to dispose of the limited restaurant license to another person
2066 whether for monetary gain or not.
2067 (b) A limited restaurant license has no monetary value for the purpose of any type of
2068 disposition.
2069 (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
2070 establishment shall keep a written beverage tab for each table or group that orders or consumes
2071 an alcoholic beverage on the premises.
2072 (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
2073 alcoholic beverage ordered or consumed.
2074 (27) A limited restaurant licensee may not make a person's willingness to serve an
2075 alcoholic beverage a condition of employment as a server with the limited restaurant.
2076 (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
2077 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
2078 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
2079 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2080 58-37-2 ; or
2081 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2082 Section 58-37a-3 .
2083 Section 14. Section 32A-4-401 is amended to read:
2084 32A-4-401. Definitions -- Commission's power to grant licenses -- Limitations.
2085 (1) (a) For purposes of this part:
2086 (i) "Banquet" means an event:
2087 (A) for which there is a contract:
2088 (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
2089 (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide an
2090 alcoholic [
2091 (B) held at one or more designated locations approved by the commission in or on the
2092 premises of a:
2093 (I) hotel;
2094 (II) resort facility;
2095 (III) sports center; or
2096 (IV) convention center; and
2097 (C) at which food and alcoholic beverages may be sold and served.
2098 (ii) "Convention center" is [
2099 (A) is in total at least 30,000 square feet; and
2100 (B) is otherwise defined as a "convention center" by the commission by rule.
2101 (iii) "Hotel" is as defined by the commission by rule.
2102 (iv) "Resort facility" is as defined by the commission by rule.
2103 (v) "Room service" means service of an alcoholic [
2104 of a:
2105 (A) hotel; or
2106 (B) resort facility.
2107 (vi) "Sports center" is as defined by the commission by rule.
2108 (b) The commission may issue an on-premise banquet license to any of the following
2109 persons for the purpose of allowing the storage, sale, service, and consumption of an alcoholic
2110 [
2111 (i) a hotel;
2112 (ii) a resort facility;
2113 (iii) a sports center; or
2114 (iv) a convention center.
2115 (c) This chapter [
2116 beverage on the premises of a person listed in Subsection (1) to the extent otherwise permitted
2117 by this title.
2118 (2) (a) Subject to this section, the total number of on-premise banquet licenses may not
2119 at any time aggregate more than that number determined by dividing the population of the state
2120 by [
2121 (b) For purposes of this Subsection (2), the population of the state shall be determined
2122 by:
2123 (i) the most recent United States decennial or special census; or
2124 (ii) another population determination made by the United States or state governments.
2125 (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
2126 licensee:
2127 (a) the host of a contracted banquet may request an on-premise banquet licensee to
2128 provide an alcoholic [
2129 (b) an on-premise banquet licensee may provide [
2130 beverage served at a banquet.
2131 (4) At a banquet, an on-premise banquet licensee may provide:
2132 (a) a hosted bar; or
2133 (b) a cash bar.
2134 (5) Nothing in this section [
2135 license applicant from applying for a package agency.
2136 (6) (a) Except as provided in Subsection (6)(b), (c), or (d), the premises of an
2137 on-premise banquet license may not be established:
2138 (i) within 600 feet of a community location, as measured by the method in Subsection
2139 (6)(e); or
2140 (ii) within 200 feet of a community location, measured in a straight line from the
2141 nearest entrance of the proposed outlet to the nearest property boundary of the community
2142 location.
2143 (b) With respect to the establishment of an on-premise banquet license, the
2144 commission may authorize a variance to reduce the proximity requirement of Subsection
2145 (6)(a)(i) if:
2146 (i) the local authority grants its written consent to the variance;
2147 (ii) the commission finds that alternative locations for establishing an on-premise
2148 banquet license in the community are limited;
2149 (iii) the variance is authorized after a public hearing is held in the city, town, or county,
2150 and where practical in the neighborhood concerned;
2151 (iv) after giving full consideration to all of the attending circumstances and the policies
2152 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2153 license would not be detrimental to the public health, peace, safety, and welfare of the
2154 community; and
2155 (v) (A) the community location governing authority gives its written consent to the
2156 variance; or
2157 (B) when written consent is not given by the community location governing authority,
2158 the commission finds that the applicant has established that:
2159 (I) there is substantial unmet public demand to consume alcohol in a public setting
2160 within the geographic boundary of the local authority in which the on-premise banquet license
2161 premises is to be located;
2162 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2163 described in Subsection (6)(b)(v)(B)(I) other than through the establishment of an on-premise
2164 banquet license; and
2165 (III) there is no reasonably viable alternative location within the geographic boundary
2166 of the local authority in which the on-premise banquet license premises is to be located for
2167 establishing an on-premise banquet license to satisfy the unmet demand described in
2168 Subsection (6)(b)(v)(B)(I).
2169 (c) With respect to the establishment of an on-premise banquet license, the commission
2170 may authorize a variance that reduces the proximity requirement of Subsection (6)(a)(ii) if:
2171 (i) the community location at issue is:
2172 (A) a public library; or
2173 (B) a public park;
2174 (ii) the local authority grants its written consent to the variance;
2175 (iii) the commission finds that alternative locations for establishing an on-premise
2176 banquet license in the community are limited;
2177 (iv) a public hearing is held in the city, town, or county, and where practical in the
2178 neighborhood concerned;
2179 (v) after giving full consideration to all of the attending circumstances and the policies
2180 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2181 on-premise banquet license would not be detrimental to the public health, peace, safety, and
2182 welfare of the community; and
2183 (vi) (A) the community location governing authority gives its written consent to the
2184 variance; or
2185 (B) when written consent is not given by the community location governing authority,
2186 the commission finds that the applicant has established that:
2187 (I) there is substantial unmet public demand to consume alcohol in a public setting
2188 within the geographic boundary of the local authority in which the on-premise banquet license
2189 premises is to be located;
2190 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2191 described in Subsection (6)(c)(vi)(B)(I) other than through the establishment of an on-premise
2192 banquet license; and
2193 (III) there is no reasonably viable alternative location within the geographic boundary
2194 of the local authority in which the on-premise banquet license premises is to be located for
2195 establishing an on-premise banquet license to satisfy the unmet demand described in
2196 Subsection (6)(c)(vi)(B)(I).
2197 (d) With respect to the premises of any on-premise banquet license issued by the
2198 commission that undergoes a change of ownership, the commission may waive or vary the
2199 proximity requirements of Subsection (6)(a) in considering whether to grant an on-premise
2200 banquet license to the new owner of the premises if:
2201 (i) (A) the premises previously received a variance reducing the proximity requirement
2202 of Subsection (6)(a)(i); or
2203 (B) the premises received a variance reducing the proximity requirement of Subsection
2204 (6)(a)(ii) on or before May 4, 2008; or
2205 (ii) a variance from proximity requirements was otherwise allowed under this title.
2206 (e) The 600 foot limitation described in Subsection (6)(a)(i) is measured from the
2207 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
2208 property boundary of the community location.
2209 (7) (a) Nothing in this section prevents the commission from considering the proximity
2210 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
2211 decision on a proposed location.
2212 (b) For purposes of this Subsection (7), "educational facility" includes:
2213 (i) a nursery school;
2214 (ii) an infant day care center; and
2215 (iii) a trade and technical school.
2216 Section 15. Section 32A-4-402 is amended to read:
2217 32A-4-402. Application and renewal requirements.
2218 (1) (a) A person seeking an on-premise banquet license under this part shall file a
2219 written application with the department, in a form prescribed by the department. The
2220 application shall be accompanied by:
2221 (i) a nonrefundable $250 application fee;
2222 (ii) an initial license fee of $500, which is refundable if a license is not granted;
2223 (iii) written consent of the local authority;
2224 (iv) a copy of the applicant's current business license;
2225 (v) evidence of proximity to any community location, with proximity requirements
2226 being governed by Section 32A-4-401 ;
2227 (vi) a bond as specified by Section 32A-4-405 ;
2228 (vii) a description or floor plan and boundary map of the premises, where appropriate,
2229 of the on-premise banquet license applicant's location, designating:
2230 (A) the location at which the on-premise banquet license applicant proposes that
2231 alcoholic beverages be stored; and
2232 (B) the designated locations on the premises of the applicant from which the
2233 on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
2234 consumed;
2235 (viii) evidence that the on-premise banquet license applicant is carrying public liability
2236 insurance in an amount and form satisfactory to the department;
2237 (ix) evidence that the on-premise banquet license applicant is carrying dramshop
2238 insurance coverage of at least [
2239 $2,000,000 in the aggregate;
2240 (x) a signed consent form stating that the on-premise banquet license applicant will
2241 permit any authorized representative of the commission, department, or any law enforcement
2242 officer unrestricted right to enter the on-premise banquet premises;
2243 (xi) in the case of an applicant that is a partnership, corporation, or limited liability
2244 company, proper verification evidencing that the person or persons signing the on-premise
2245 banquet license application are authorized to so act on behalf of the partnership, corporation, or
2246 limited liability company; and
2247 (xii) any other information the commission or department may require.
2248 (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii), (iv),
2249 and (vi) if the applicant is:
2250 (i) a state agency; or
2251 (ii) a political subdivision of the state including:
2252 (A) a county; or
2253 (B) a municipality.
2254 (2) Additional locations in or on the premises of an on-premise banquet license
2255 applicant's business from which the on-premise banquet license applicant may propose that
2256 alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
2257 original application may be approved by the department upon proper application, in accordance
2258 with guidelines approved by the commission.
2259 (3) (a) All on-premise banquet licenses expire on October 31 of each year.
2260 (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
2261 person's on-premise banquet license shall submit a renewal fee of $500 and a completed
2262 renewal application to the department no later than September 30.
2263 (ii) A licensee is not required to submit the renewal fee if the licensee is:
2264 (A) a state agency; or
2265 (B) a political subdivision of the state including:
2266 (I) a county; or
2267 (II) a municipality.
2268 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2269 the license effective on the date the existing license expires.
2270 (d) A renewal application shall be in a form as prescribed by the department.
2271 (4) To ensure compliance with Subsection 32A-4-406 (24), the commission may
2272 suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to
2273 immediately notify the department of any change in:
2274 (a) ownership of the licensee;
2275 (b) for a corporate owner, the:
2276 (i) corporate officers or directors; or
2277 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2278 corporation; or
2279 (c) for a limited liability company:
2280 (i) managers; or
2281 (ii) members owning at least 20% of the limited liability company.
2282 Section 16. Section 32A-4a-101 is enacted to read:
2283
2284
2285 32A-4a-101. Title.
2286 This chapter is known as the "Resort License Act."
2287 Section 17. Section 32A-4a-102 is enacted to read:
2288 32A-4a-102. Definitions.
2289 As used in this chapter:
2290 (1) "Dwelling" means a portion of a building:
2291 (a) owned by one or more individuals, except that a significant portion of the building
2292 is to be owned by a resort licensee;
2293 (b) that is used or designated for use as a residence by one or more persons; and
2294 (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30
2295 consecutive days by a person who uses it for a residence.
2296 (2) "Engaged in the management of the resort" may be defined by the commission by
2297 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2298 (3) "Invitee" means an individual who in accordance with Subsection 32A-4a-305 (3):
2299 (a) is authorized to use a resort amenity by a host who is:
2300 (i) a resident; or
2301 (ii) a public customer;
2302 (b) has only those privileges derived from the invitee's host for the duration of the
2303 invitee's visit to the resort amenity; and
2304 (c) is allowed to use a resort amenity by a resort license under a resort amenity
2305 sublicense.
2306 (4) "Provisions applicable to a sublicense" means:
2307 (a) for a restaurant sublicense, Chapter 4, Part 1, Restaurant Liquor Licenses;
2308 (b) for a limited restaurant sublicense, Chapter 4, Part 3, Limited Restaurant Licenses;
2309 (c) for an on-premise banquet sublicense, Chapter 4, Part 4, On-Premises Banquet
2310 License;
2311 (d) for a resort amenity sublicense, Chapter 4a, Part 3, Resort Amenity Sublicense;
2312 (e) for a private club sublicense, Chapter 5, Private Club Liquor Licenses; and
2313 (f) for an on-premise beer retailer sublicense, Chapter 10, Beer Retailer Licenses.
2314 (5) "Public customer" means an individual who holds a customer card in accordance
2315 with Subsection 32A-4a-305 (4).
2316 (6) "Resident" means an individual who:
2317 (a) owns a dwelling located within a resort license premises; or
2318 (b) rents lodging accommodations for 30 consecutive days or less from:
2319 (i) an owner of a dwelling described in Subsection (6)(a); or
2320 (ii) the resort licensee.
2321 (7) "Resort" means a location:
2322 (a) on which is located one or more buildings that are primarily operated for the
2323 purpose of providing dwellings or lodging accommodations; and
2324 (b) that is affiliated with a ski area that physically touches the resort license premises.
2325 (8) "Resort amenity" means:
2326 (a) a reception area in which only a resident or invitee of a resident is allowed to enter;
2327 or
2328 (b) a spa, as defined by rule by the commission made in accordance with Title 63G,
2329 Chapter 3, Utah Administrative Rulemaking Act.
2330 (9) (a) Except as provided in Subsection (9)(b), "resort license premises" means the
2331 boundary of the land owned or controlled by a resort license on which is located the sublicense
2332 premises of all sublicenses issued under the resort license.
2333 (b) "Resort license premises" does not include a building located within the resort
2334 license premises:
2335 (i) that is owned by a person other than a resort licensee;
2336 (ii) that is not leased or otherwise operated by the resort licensee; and
2337 (iii) in which no person engages in an activity requiring a license or permit under this
2338 title.
2339 (10) "Significant portion of a building" shall be defined by the commission by rule
2340 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2341 (11) "Sublicense" means:
2342 (a) a restaurant sublicense;
2343 (b) a limited restaurant sublicense;
2344 (c) an on-premise banquet sublicense;
2345 (d) a resort amenity sublicense;
2346 (e) a private club sublicense; or
2347 (f) an on-premise beer retailer sublicense.
2348 (12) "Sublicense premises" means a building, enclosure, room, or equipment used
2349 pursuant to a sublicense in connection with the sale, storage, service, furnishing, or
2350 consumption of an alcoholic product, unless otherwise defined in this title or in the rules
2351 adopted by the commission in accordance with Title 63G, Chapter 3, Utah Administrative
2352 Rulemaking Act.
2353 Section 18. Section 32A-4a-201 is enacted to read:
2354
2355 32A-4a-201. Commission's power to license a resort -- Limitations.
2356 (1) (a) The commission may issue to a person a resort license for the purpose of
2357 allowing the storage, sale, service, and consumption of an alcoholic beverage in connection
2358 with a resort designated in the resort license.
2359 (b) A resort license shall:
2360 (i) consist of:
2361 (A) a general resort license; and
2362 (B) one or more sublicenses; and
2363 (ii) designate the boundary of the resort license premises.
2364 (c) This chapter does not prohibit an alcoholic beverage on the resort license premises
2365 to the extent otherwise permitted by this title.
2366 (d) The commission may not issue a sublicense that is separate from a resort license.
2367 (2) (a) Subject to this section, the total number of resort licenses may not at any time
2368 aggregate more than that number determined by dividing the population of the state by
2369 140,725.
2370 (b) For purposes of this Subsection (2), the population of the state is determined by:
2371 (i) the most recent United States decennial or special census; or
2372 (ii) another population determination made by the United States or state governments.
2373 (3) (a) Except as provided in Subsection (3)(b), (c), or (d), a resort license premises
2374 may not be established:
2375 (i) within 600 feet of a community location, as measured by the method in Subsection
2376 (3)(e); or
2377 (ii) within 200 feet of a community location, measured in a straight line from the
2378 nearest entrance of the proposed outlet to the nearest property boundary of the community
2379 location.
2380 (b) With respect to the establishment of a resort license, the commission may authorize
2381 a variance to reduce the proximity requirement of Subsection (3)(a)(i) if:
2382 (i) the local authority grants its written consent to the variance;
2383 (ii) the commission finds that alternative locations for establishing a resort license in
2384 the community are limited;
2385 (iii) the variance is authorized after a public hearing is held in the city, town, or county,
2386 and where practical in the neighborhood concerned;
2387 (iv) after giving full consideration to all of the attending circumstances and the policies
2388 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2389 resort license would not be detrimental to the public health, peace, safety, and welfare of the
2390 community; and
2391 (v) (A) the community location governing authority gives its written consent to the
2392 variance; or
2393 (B) when written consent is not given by the community location governing authority,
2394 the commission finds that the applicant has established that:
2395 (I) there is substantial unmet public demand to consume alcohol in a public setting
2396 within the geographic boundary of the local authority in which the resort license premises is to
2397 be located;
2398 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2399 described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a resort license;
2400 and
2401 (III) there is no reasonably viable alternative location within the geographic boundary
2402 of the local authority in which the resort license premises is to be located for establishing a
2403 resort license to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
2404 (c) With respect to the establishment of a resort license, the commission may authorize
2405 a variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
2406 (i) the community location at issue is:
2407 (A) a public library; or
2408 (B) a public park;
2409 (ii) the local authority grants its written consent to the variance;
2410 (iii) the commission finds that alternative locations for establishing a resort license in
2411 the community are limited;
2412 (iv) a public hearing is held in the city, town, or county, and where practical in the
2413 neighborhood concerned;
2414 (v) after giving full consideration to all of the attending circumstances and the policies
2415 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2416 resort license would not be detrimental to the public health, peace, safety, and welfare of the
2417 community; and
2418 (vi) (A) the community location governing authority gives its written consent to the
2419 variance; or
2420 (B) when written consent is not given by the community location governing authority,
2421 the commission finds that the applicant has established that:
2422 (I) there is substantial unmet public demand to consume alcohol in a public setting
2423 within the geographic boundary of the local authority in which the resort license premises is to
2424 be located;
2425 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2426 described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of a resort license;
2427 and
2428 (III) there is no reasonably viable alternative location within the geographic boundary
2429 of the local authority in which the resort license premises is to be located for establishing a
2430 resort license to satisfy the unmet demand described in Subsection (3)(c)(vi)(B)(I).
2431 (d) With respect to resort license premises of a resort license issued by the commission
2432 that undergoes a change of ownership, the commission may waive or vary the proximity
2433 requirements of Subsection (3)(a) in considering whether to issue a resort license to the new
2434 owner of the resort license premises if the resort license premises previously received a
2435 variance reducing the proximity requirement of Subsection (3)(a)(i).
2436 (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
2437 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
2438 property boundary of the community location.
2439 (4) (a) Nothing in this section prevents the commission from considering the proximity
2440 of an educational, religious, or recreational facility, or any other relevant factor in reaching a
2441 decision on a proposed location.
2442 (b) For purposes of this Subsection (4), "educational facility" includes:
2443 (i) a nursery school;
2444 (ii) an infant day care center; and
2445 (iii) a trade and technical school.
2446 Section 19. Section 32A-4a-202 is enacted to read:
2447 32A-4a-202. Application and renewal requirements.
2448 (1) A person seeking a resort license under this chapter shall file a written application
2449 with the department, in a form prescribed by the department. The application shall be
2450 accompanied by:
2451 (a) a nonrefundable $250 application fee;
2452 (b) an initial license, which is refundable if a resort license is not issued, calculated as
2453 follows:
2454 (i) $10,000 if four or fewer sublicenses are being applied for under the resort license;
2455 or
2456 (ii) if more than four sublicenses are being applied for under the resort license, the sum
2457 of:
2458 (A) $10,000; and
2459 (B) $2,000 for each sublicense for which the applicant is applying;
2460 (c) written consent of the local authority;
2461 (d) a copy of:
2462 (i) the applicant's current business license; and
2463 (ii) the current business license for each sublicense, if the business license is separate
2464 from the applicant's business license;
2465 (e) evidence:
2466 (i) of proximity of the resort license premises to any community location, with
2467 proximity requirements being governed by Section 32A-4a-201 ; and
2468 (ii) that each sublicense premises is entirely within the boundaries of the resort license
2469 premises;
2470 (f) a bond as specified by Section 32A-4a-205 ;
2471 (g) a description and boundary map of the resort license premises;
2472 (h) a description, floor plan, and boundary map of each sublicense premises
2473 designating:
2474 (i) a location at which the resort license applicant proposes that an alcoholic beverage
2475 be stored; and
2476 (ii) a designated location on the sublicense premises from which the resort license
2477 applicant proposes that an alcoholic beverage be sold or served and consumed;
2478 (i) evidence that the resort license applicant carries public liability insurance in an
2479 amount and form satisfactory to the department;
2480 (j) evidence that the resort license applicant carries dramshop insurance coverage equal
2481 to the sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both
2482 the general resort license and each sublicense;
2483 (k) a signed consent form stating that the resort license applicant will permit any
2484 authorized representative of the commission, department, or any law enforcement officer
2485 unrestricted right to enter the resort license premises and each sublicense premises;
2486 (l) if an applicant is a partnership, corporation, or limited liability company, proper
2487 verification evidencing that the one or more persons signing the resort license application are
2488 authorized to so act on behalf of the partnership, corporation, or limited liability company; and
2489 (m) any other information the commission or department may require.
2490 (2) An additional location in or on a resort license premises of a resort license
2491 applicant's business from which the resort license applicant may propose that an alcoholic
2492 beverage may be stored, sold or served, or consumed, not included in the applicant's original
2493 application may be approved by the department upon proper application.
2494 (3) (a) A resort license expires on October 31 of each year.
2495 (b) A resort licensee who wants to renew a resort license shall submit to the department
2496 by no later than September 30:
2497 (i) a renewal fee of $1,000 for each sublicense under the resort license; and
2498 (ii) a completed renewal application.
2499 (c) A resort licensee's failure to meet a renewal requirement results in an automatic
2500 forfeiture of the resort license effective on the date the existing license expires.
2501 (d) A renewal application shall be in a form as prescribed by the department.
2502 (4) To ensure compliance with Subsection 32A-4a-401 (13), the commission may
2503 suspend or revoke a resort license if the resort licensee fails to immediately notify the
2504 department of a change in:
2505 (a) ownership of the resort licensee;
2506 (b) for a corporate owner of a resort licensee, the:
2507 (i) corporate officers or directors; or
2508 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2509 corporation; or
2510 (c) for a limited liability company owner or a resort licensee:
2511 (i) managers; or
2512 (ii) members owning at least 20% of the limited liability company.
2513 Section 20. Section 32A-4a-203 is enacted to read:
2514 32A-4a-203. Qualifications.
2515 (1) (a) The commission may not issue a resort license to a person who is convicted of:
2516 (i) a felony under a federal or state law;
2517 (ii) a violation of a federal or state law or local ordinance concerning the sale,
2518 manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
2519 beverage;
2520 (iii) a crime involving moral turpitude; or
2521 (iv) on two or more occasions within the five years before the day on which the resort
2522 license is issued, driving under the influence of alcohol, a drug, or the combined influence of
2523 alcohol and a drug.
2524 (b) For a partnership, corporation, or limited liability company, the proscription under
2525 Subsection (1)(a) applies if any of the following that will be engaged in the management of the
2526 resort is convicted of an offense described in Subsection (1)(a):
2527 (i) a partner;
2528 (ii) a managing agent;
2529 (iii) a manager;
2530 (iv) an officer;
2531 (v) a director;
2532 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
2533 the applicant corporation; or
2534 (vii) a member who owns at least 20% of the applicant limited liability company.
2535 (c) The proscription under Subsection (1)(a) applies if a person employed to act in a
2536 supervisory or managerial capacity for the resort licensee or in relation to a sublicense is
2537 convicted of an offense described in Subsection (1)(a).
2538 (2) Subject to Section 32A-4a-501 , the commission may immediately suspend or
2539 revoke a resort license or a sublicense, if after the day on which the resort license is issued, a
2540 person described in Subsection (1)(a), (b), or (c):
2541 (a) is found to have been convicted of an offense described in Subsection (1)(a) before
2542 the resort license is issued; or
2543 (b) on or after the day on which the resort license is issued:
2544 (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
2545 (ii) (A) is convicted of driving under the influence of alcohol, a drug, or the combined
2546 influence of alcohol and a drug; and
2547 (B) was convicted of driving under the influence of alcohol, a drug, or the combined
2548 influence of alcohol and a drug within five years before the day on which the person is
2549 convicted of the offense described in Subsection (2)(b)(ii)(A).
2550 (3) Subject to Subsection 32A-4a-501 , the director may take emergency action by
2551 immediately suspending the operation of a resort license or sublicense in accordance with Title
2552 63G, Chapter 4, Administrative Procedures Act, for the period during which the criminal
2553 matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
2554 (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
2555 or
2556 (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, a
2557 drug, or the combined influence of alcohol and a drug; and
2558 (ii) was convicted of driving under the influence of alcohol, a drug, or the combined
2559 influence of alcohol and a drug within five years before the day on which the person is arrested
2560 on a charge described in Subsection (3)(b)(i).
2561 (4) (a) (i) The commission may not issue a resort license to a person who has had any
2562 type of license, agency, or permit issued under this title revoked within the three years prior to
2563 the day on which the application for a resort license is filed.
2564 (ii) The commission may not issue a resort license to an applicant that is a partnership,
2565 corporation, or limited liability company if a partner, managing agent, manager, officer,
2566 director, stockholder who holds at least 20% of the total issued and outstanding stock of an
2567 applicant corporation, or member who owns at least 20% of an applicant limited liability
2568 company, will engage in the management of the resort, and is or was:
2569 (A) a partner or managing agent of a partnership that had any type of license, agency,
2570 or permit issued under this title revoked within three years prior to the day on which the
2571 application for the resort license is filed;
2572 (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
2573 of the total issued and outstanding stock of a corporation that had any type of license, agency,
2574 or permit issued under this title revoked within three years prior to the day on which the
2575 application for the resort license is filed; or
2576 (C) a manager or member who owns or owned at least 20% of a limited liability
2577 company that had any type of license, agency, or permit issued under this title revoked within
2578 three years prior to the day on which the application for the resort license is filed.
2579 (b) The commission may not issue a resort license to an applicant that is a partnership,
2580 corporation, or limited liability company if any of the following who will engage in the
2581 management of the resort had any type of license, agency, or permit issued under this title
2582 revoked while acting in their individual capacity within three years prior to the day on which
2583 the application for the resort license is filed:
2584 (i) a partner or managing agent of the applicant partnership;
2585 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
2586 total issued and outstanding stock of the applicant corporation; or
2587 (iii) a manager or member who owns at least 20% of the applicant limited liability
2588 company.
2589 (c) The commission may not issue a person acting in an individual capacity a resort
2590 license if that person was:
2591 (i) a partner or managing agent of a partnership that had any type of license, agency, or
2592 permit issued under this title revoked within three years prior to the day on which the
2593 application for the resort license is filed;
2594 (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
2595 total issued and outstanding stock of a corporation that had any type of license, agency, or
2596 permit issued under this title revoked within three years prior to the day on which the
2597 application for the resort license is filed; or
2598 (iii) a manager or member who owned at least 20% of the limited liability company
2599 that had any type of license, agency, or permit issued under this title revoked within three years
2600 prior to the day on which the application for the resort license is filed.
2601 (5) (a) The commission may not issue a minor a resort license.
2602 (b) The commission may not issue a resort license to an applicant that is a partnership,
2603 corporation, or limited liability company if any of the following is a minor:
2604 (i) a partner or managing agent of the applicant partnership;
2605 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
2606 total issued and outstanding stock of the applicant corporation; or
2607 (iii) a manager or member who owns at least 20% of the applicant limited liability
2608 company.
2609 (6) Subject to Subsection 32A-4a-501 , if a person to whom a resort license is issued
2610 under this chapter no longer possesses the qualifications required by this title for obtaining the
2611 resort license, the commission may suspend or revoke the resort license.
2612 Section 21. Section 32A-4a-204 is enacted to read:
2613 32A-4a-204. Commission and department duties before issuing resort license.
2614 (1) (a) Before the commission may issue a resort license, the department shall conduct
2615 an investigation, and may hold public hearings for the purpose of gathering information and
2616 making recommendations to the commission as to whether or not a resort license, including
2617 each sublicense, should be issued.
2618 (b) The department shall forward the information and recommendations described in
2619 Subsection (1)(a) to the commission to aid in the commission's determination.
2620 (2) Before issuing a resort license, the commission shall:
2621 (a) determine that the applicant complies with all basic qualifications and requirements
2622 for making application for a resort license as provided by Sections 32A-4a-202 and
2623 32A-4a-203 ;
2624 (b) determine that the application is complete;
2625 (c) consider, where appropriate, a location that the resort license applicant proposes to
2626 designate for use under the resort license or a sublicense, including:
2627 (i) the physical characteristics of the location such as:
2628 (A) the condition of the location;
2629 (B) square footage; and
2630 (C) parking availability; and
2631 (ii) operational factors such as:
2632 (A) tourist traffic;
2633 (B) demographics; and
2634 (C) population to be served;
2635 (d) consider the resort license applicant's ability to manage and operate a resort license
2636 and the ability of any individual who will act in a supervisory or managerial capacity for a
2637 sublicense, including:
2638 (i) past management experience;
2639 (ii) past alcohol license experience; and
2640 (iii) the type of management scheme to be employed by the resort license applicant;
2641 (e) consider the nature or type of:
2642 (i) the resort license applicant's business operation; and
2643 (ii) the business operation of each sublicense;
2644 (f) subject to Subsection (3), determine that each sublicense meets the requirements
2645 imposed under the provisions applicable to each sublicense; and
2646 (g) consider any other factor or circumstance the commission considers necessary.
2647 (3) (a) The commission may not include a sublicense in determining whether or not the
2648 total number of licenses issued under the provisions applicable to the sublicense aggregate
2649 more than a number calculated by dividing the population of the state by the number specified
2650 in the provisions applicable to the sublicense.
2651 (b) Subject to Subsection (3)(c), notwithstanding the requirements to obtain a license
2652 under the provisions applicable to a sublicense, a sublicense of a resort license is not subject to:
2653 (i) a requirement to submit an application or renewal application that is separate from
2654 the resort license application;
2655 (ii) a requirement to carry public liability insurance or dramshop insurance coverage
2656 that is separate from that carried by the resort licensee; or
2657 (iii) post a bond that is separate from the bond posted by the resort licensee.
2658 (c) If a resort licensee seeks to add a sublicense after its resort license is issued, the
2659 resort licensee shall file with the department:
2660 (i) a nonrefundable $250 application fee;
2661 (ii) an initial license fee of $2,000, which is refundable if a sublicense is not issued;
2662 (iii) written consent of the local authority;
2663 (iv) a copy of:
2664 (A) the resort licensee's current business license; and
2665 (B) the current business license for the sublicense, if the business licensee is separate
2666 from the resort licensee's business license;
2667 (v) evidence that the sublicense premises is entirely within the resort license premises;
2668 (vi) a description, floor plan, and boundary map of the sublicense premises
2669 designating:
2670 (A) a location at which the resort license applicant proposes that an alcoholic beverage
2671 be stored; and
2672 (B) a designated location on the sublicense premises from which the resort license
2673 applicant proposes that an alcoholic beverage be sold or served and consumed;
2674 (vii) evidence that the resort license applicant carries public liability insurance in an
2675 amount and form satisfactory to the department;
2676 (viii) evidence that the resort license applicant carries dramshop insurance coverage
2677 equal to the amount required by Section 32A-4a-202 if the sublicense to be added is included;
2678 (ix) a signed consent form stating that the resort licensee will permit any authorized
2679 representative of the commission, department, or any law enforcement officer unrestricted right
2680 to enter the sublicense premises;
2681 (x) if the resort licensee is a partnership, corporation, or limited liability company,
2682 proper verification evidencing that the one or more persons signing the sublicense application
2683 are authorized to so act on behalf of the partnership, corporation, or limited liability company;
2684 and
2685 (xi) any other information the commission or department may require.
2686 Section 22. Section 32A-4a-205 is enacted to read:
2687 32A-4a-205. Bond.
2688 (1) (a) A resort licensee shall procure and post a cash or corporate surety bond payable
2689 to the department in the penal sum of $25,000.
2690 (b) A resort licensee shall maintain the bond described in Subsection (1)(a) for as long
2691 as the resort licensee operates as a resort licensee.
2692 (c) A resort licensee is not required to have a separate bond for each sublicense, except
2693 that the aggregate of any bonds posted by the resort licensee shall equal the amount required by
2694 Subsection (1)(a).
2695 (2) A bond described in Subsection (1) shall be in a form approved by the attorney
2696 general, conditioned upon the licensee's faithful compliance with this title and the rules of the
2697 commission.
2698 (3) (a) If a bond described in Subsection (1) is canceled due to a resort licensee's
2699 negligence, the commission may assess a $300 reinstatement fee.
2700 (b) No part of a bond described in Subsection (1) may be withdrawn:
2701 (i) during the period a resort license is in effect; or
2702 (ii) while a revocation proceeding is pending against the resort licensee that posts the
2703 bond.
2704 (c) A bond filed by a resort licensee may be forfeited if the resort license is revoked.
2705 Section 23. Section 32A-4a-301 is enacted to read:
2706
2707 32A-4a-301. Commission's power to issue resort amenity sublicense --
2708 Limitations.
2709 (1) Before a resort amenity may sell or allow the consumption of an alcoholic beverage
2710 on the resort amenity sublicense premises, a resort licensee or an applicant for a resort license
2711 shall first obtain a resort amenity sublicense from the commission as provided in this part.
2712 (2) The commission may issue a resort amenity sublicense for the purpose of
2713 establishing a resort amenity outlet on a resort license premises for the storage, sale, and
2714 consumption of liquor on premises operated as a resort amenity.
2715 (3) The resort amenity sublicense premises must fall entirely within a resort license
2716 premises.
2717 Section 24. Section 32A-4a-302 is enacted to read:
2718 32A-4a-302. Application and renewal requirements.
2719 (1) A person seeking a resort amenity sublicense under this part may not file a written
2720 application with the department that is separate from the application of the resort license,
2721 unless the resort amenity sublicense is being sought after the issuance of a resort license.
2722 (2) If a resort licensee seeks to add a resort amenity sublicense after its resort license is
2723 issued, the resort licensee shall in accordance with Subsection 32A-4a-204 (3) file a written
2724 application with the department, in a form prescribed by the department. The application shall
2725 be accompanied by:
2726 (a) a nonrefundable $250 application fee;
2727 (b) an initial license fee of $2,000, which is refundable if a license is not issued;
2728 (c) written consent of the local authority;
2729 (d) a copy of:
2730 (i) the resort licensee's current business license; and
2731 (ii) a business license for the resort amenity, if the business license is separate from the
2732 resort licensee's business license;
2733 (e) evidence that the resort amenity sublicense premises are entirely within the resort
2734 license premises;
2735 (f) a floor or similar plan of the resort amenity, including consumption areas and the
2736 area where the resort licensee proposes to keep, store, and sell liquor;
2737 (g) evidence that the resort licensee carries public liability insurance in an amount and
2738 form satisfactory to the department;
2739 (h) evidence that the resort licensee's dramshop insurance coverage required under
2740 Section 32A-4a-202 covers the resort amenity sublicense;
2741 (i) a signed consent form stating that the resort licensee will permit any authorized
2742 representative of the commission, department, or any law enforcement officer unrestricted right
2743 to enter the resort amenity;
2744 (j) if an applicant is a partnership, corporation, or limited liability company, proper
2745 verification evidencing that the person or persons signing the application are authorized to so
2746 act on behalf of the partnership, corporation, or limited liability company; and
2747 (k) any other information the commission or department may require.
2748 (3) (a) A resort amenity sublicense expires on October 31 of each year.
2749 (b) A resort licensee desiring to renew the resort licensee's resort amenity sublicense
2750 shall renew the resort amenity sublicense as part of the resort license.
2751 (c) Failure to meet the renewal requirements for a resort license results in an automatic
2752 forfeiture of the resort amenity sublicense effective on the date the resort license expires.
2753 (d) A renewal application shall be in a form as prescribed by the department.
2754 (4) To ensure compliance with Subsection 32A-4a-305 (31), the commission may
2755 suspend or revoke a resort amenity sublicense if the resort licensee does not immediately notify
2756 the department of a change described in Subsection 32A-4a-202 (4).
2757 Section 25. Section 32A-4a-303 is enacted to read:
2758 32A-4a-303. Qualifications.
2759 (1) A person employed to act in a supervisory or managerial capacity for the resort
2760 amenity restaurant is subject to qualification requirements of Section 32A-4a-203 .
2761 (2) If a person to whom a resort license is issued under this chapter no longer possesses
2762 the qualifications required by this title for obtaining that license, the commission may suspend
2763 or revoke the resort amenity sublicense that is part of the resort license.
2764 Section 26. Section 32A-4a-304 is enacted to read:
2765 32A-4a-304. Commission and department duties before issuing a resort amenity
2766 sublicense.
2767 (1) (a) If a resort licensee seeks to add a resort amenity sublicense after the resort
2768 license is issued, before the commission may issue a resort amenity sublicense, the department
2769 shall conduct an investigation and may hold public hearings for the purpose of gathering
2770 information and making recommendations to the commission as to whether or not the resort
2771 amenity sublicense should be issued.
2772 (b) The department shall forward the information and recommendations described in
2773 Subsection (1)(a) to the commission to aid in the commission's determination.
2774 (2) Before issuing a resort amenity sublicense, the commission shall:
2775 (a) determine that:
2776 (i) the resort licensee seeking the resort amenity sublicense has complied with all basic
2777 qualifications and requirements for making application for a resort amenity sublicense as
2778 provided by Sections 32A-4a-302 and 32A-4a-303 ; and
2779 (ii) the application is complete;
2780 (b) consider the location within which the resort amenity outlet is located, including:
2781 (i) physical characteristics such as:
2782 (A) condition of the location;
2783 (B) square footage; and
2784 (C) parking availability; and
2785 (ii) operational factors such as:
2786 (A) tourist traffic;
2787 (B) demographics;
2788 (C) population to be served; and
2789 (D) the extent of and proximity to any community location;
2790 (c) consider the resort licensee's ability to manage and operate a resort amenity
2791 sublicense and the ability of any person who will act in a supervisory or managerial capacity
2792 for the resort amenity to manage and operate a resort amenity license, including:
2793 (i) management experience;
2794 (ii) past retail liquor experience; and
2795 (iii) the type of management scheme employed by the resort amenity;
2796 (d) consider the nature or type of resort amenity operation under the proposed resort
2797 amenity sublicense, including:
2798 (i) the type of menu items offered and emphasized;
2799 (ii) whether the resort amenity emphasizes service to an adult clientele or to minors;
2800 (iii) the hours of operation;
2801 (iv) the seating capacity of the resort amenity; and
2802 (v) the gross sales of food items; and
2803 (e) consider any other factors or circumstances the commission considers necessary.
2804 Section 27. Section 32A-4a-305 is enacted to read:
2805 32A-4a-305. Operational restrictions.
2806 (1) (a) A person issued a resort license and the employees and management personnel
2807 of the resort licensee or otherwise related to a resort amenity sublicense shall comply with this
2808 title, the rules of the commission, and the conditions and requirements in this section in the
2809 operation of the resort amenity.
2810 (b) Subject to Subsection 32A-4a-502 , failure to comply with this section may result in
2811 a suspension or revocation of the resort license or resort amenity sublicense, or other
2812 disciplinary action taken against individual employees or management personnel.
2813 (2) Subject to the other provisions of this section, a person operating under a resort
2814 amenity sublicense may not sell an alcoholic beverage to or allow a person to be admitted to or
2815 use the resort amenity sublicense premises other than:
2816 (a) a resident;
2817 (b) if the resort amenity is a spa, a public customer who holds a valid customer card
2818 issued under Subsection (4); or
2819 (c) an invitee.
2820 (3) A person operating under a resort amenity sublicense may allow an individual to be
2821 admitted to or use the resort amenity sublicense premises as an invitee only under the following
2822 conditions:
2823 (a) an invitee is previously authorized by one of the following who agrees to host the
2824 invitee into the resort amenity:
2825 (i) a resident; or
2826 (ii) if the resort amenity is a spa, a public customer who holds a valid customer card
2827 issued under Subsection (4);
2828 (b) an invitee must be known by the invitee's host based on a preexisting bonafide
2829 business or personal relationship with the host before the invitee's admittance to the resort
2830 amenity;
2831 (c) an invitee's host is responsible for the cost of services extended to the invitee;
2832 (d) an invitee has only those privileges derived from the invitee's host for the duration
2833 of the invitee's visit to the resort amenity;
2834 (e) an employee of the resort licensee or resort amenity, while on duty, may not act as a
2835 host for an invitee;
2836 (f) an employee of the resort licensee or resort amenity, while on duty, may not attempt
2837 to locate a resident or public customer to serve as a host for an invitee with whom the resident
2838 or public customer has no acquaintance based on a preexisting bonafide business or personal
2839 relationship prior to the invitee's arrival at the resort amenity; and
2840 (g) a resort licensee, a resort amenity, or an employee of the resort amenity or resort
2841 licensee may not enter into an agreement or arrangement with a resident or public customer to
2842 indiscriminately host a member of the general public into the resort amenity as an invitee.
2843 (4) A person operating a spa under a resort amenity sublicense may issue a customer
2844 card to allow an individual to enter and use the spa resort amenity sublicense premises on a
2845 temporary basis under the following conditions:
2846 (a) the resort amenity may not issue a customer card for a time period that exceeds
2847 three weeks;
2848 (b) the resort amenity shall assess a fee of not less than $4 to a public customer for a
2849 customer card;
2850 (c) the resort amenity may not issue a customer card to a minor;
2851 (d) a public customer may not host more than seven invitees at one time;
2852 (e) a customer card issued shall include:
2853 (i) the full name and signature of the person to whom the customer card is issued;
2854 (ii) the date the customer card is issued;
2855 (iii) the date the customer card expires;
2856 (iv) the resort amenity sublicense's name; and
2857 (v) the serial number of the customer card; and
2858 (f) (i) for purposes of the resort amenity sublicense, the resort licensee shall ensure that
2859 a current record is maintained of the issuance of a customer card on the resort amenity
2860 sublicense premises; and
2861 (ii) the record described in Subsection (4)(f)(i) shall:
2862 (A) be available for inspection by the department; and
2863 (B) include:
2864 (I) the name of the person to whom the customer card is issued;
2865 (II) the date the customer card is issued;
2866 (III) the date the customer card expires; and
2867 (IV) the serial number of the customer card.
2868 (5) (a) For purposes of the resort amenity sublicense, the resort licensee shall ensure
2869 that an expense ledger or record is maintained showing in detail expenditures for the resort
2870 amenity separated by payments for:
2871 (i) malt or brewed beverage;
2872 (ii) liquor;
2873 (iii) food;
2874 (iv) detailed payroll;
2875 (v) entertainment;
2876 (vi) rent;
2877 (vii) utilities;
2878 (viii) supplies; and
2879 (ix) other expenditures.
2880 (b) For purposes of the resort amenity sublicense, the resort licensee shall ensure that a
2881 record required by this Subsection (5) is kept:
2882 (i) in a form approved by the department; and
2883 (ii) balanced each month.
2884 (c) An expenditure shall be supported by:
2885 (i) a delivery ticket;
2886 (ii) an invoice;
2887 (iii) a receipted bill;
2888 (iv) a canceled check;
2889 (v) a petty cash voucher; or
2890 (vi) other sustaining datum or memorandum.
2891 (d) An invoice or receipted bill for the current calendar or fiscal year documenting a
2892 purchase made by the resort licensee for the resort amenity sublicense shall be maintained.
2893 (e) For purposes of the resort amenity sublicense, the resort licensee shall ensure that
2894 accounting and other records and documents as the department may require are maintained.
2895 (f) A resort licensee or an employee acting for the resort licensee or under a resort
2896 amenity sublicense, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or
2897 removes an entry in a book of account or other document for a resort amenity sublicense
2898 required to be made, maintained, or preserved by this title or the rules of the commission for
2899 the purpose of deceiving the commission, the department, or an official or employee of the
2900 commission or department, is subject to:
2901 (i) the suspension or revocation of the resort amenity sublicense; and
2902 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
2903 (g) (i) For purposes of the resort amenity sublicense, the resort licensee shall ensure
2904 that a record required by this section is kept and maintained, and a book, record, receipt, or
2905 disbursement is maintained or used for the resort amenity sublicense:
2906 (A) as the department requires; and
2907 (B) for a minimum period of three years.
2908 (ii) A record, book, receipt, or disbursement is subject to inspection by an authorized
2909 representative of the commission and the department.
2910 (iii) A resort licensee shall allow the department, through an auditor or examiner of the
2911 department, to audit the records for a resort amenity sublicense at the times the department
2912 considers advisable.
2913 (iv) The department shall audit the records of a resort amenity sublicense at least once
2914 annually.
2915 (6) A resort licensee shall own or lease premises suitable for the resort amenity's
2916 activities.
2917 (7) (a) A resort licensee may not maintain premises in a manner that barricades or
2918 conceals the resort amenity sublicense's operation.
2919 (b) A member of the commission, authorized department personnel, or a peace officer
2920 shall, upon presentation of credentials, be admitted immediately to a resort amenity sublicense
2921 premises and permitted without hindrance or delay to inspect completely the entire resort
2922 amenity sublicense premises and the books and records for the resort amenity sublicense, at any
2923 time during which the resort amenity sublicense is open for the transaction of business with a
2924 resident.
2925 (8) A resort amenity must have food available at all times when an alcoholic beverage
2926 is sold, served, or consumed on the resort amenity sublicense premises.
2927 (9) (a) Liquor may not be purchased for a resort amenity sublicense except from a state
2928 store or package agency.
2929 (b) Liquor purchased from a state store or package agency may be transported by the
2930 resort licensee from the place of purchase to the resort amenity sublicense premises.
2931 (c) Payment for liquor shall be made in accordance with rules established by the
2932 commission.
2933 (10) A person operating under a resort amenity sublicense may sell or provide a
2934 primary spirituous liquor only in a quantity not to exceed 1.5 ounces per beverage dispensed
2935 through a calibrated metered dispensing system approved by the department in accordance with
2936 commission rules adopted under this title, except that:
2937 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
2938 system if used as a secondary flavoring ingredient in a beverage subject to the following
2939 restrictions:
2940 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
2941 a primary spirituous liquor;
2942 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
2943 (iii) the resort licensee shall designate a location where flavorings are stored on the
2944 floor plan provided to the department; and
2945 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
2946 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
2947 system if used:
2948 (i) as a flavoring on a dessert; and
2949 (ii) in the preparation of a flaming food dish, drink, or dessert; and
2950 (c) a person at a resort amenity may have no more than:
2951 (i) 2.5 ounces of spirituous liquor at a time before the person; or
2952 (ii) two spirituous liquor drinks at a time before the person, except that the person may
2953 not have two spirituous liquor drinks before the person if one of the spirituous liquor drinks
2954 consists only of the primary spirituous liquor for the other spirituous liquor drink.
2955 (11) (a) (i) Wine may be sold and served by the glass or an individual portion not to
2956 exceed five ounces per glass or individual portion.
2957 (ii) An individual portion may be served to a person in more than one glass as long as
2958 the total amount of wine does not exceed five ounces.
2959 (iii) An individual portion of wine is considered to be one alcoholic beverage under
2960 Subsection (15)(c).
2961 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
2962 fixed by the commission to a table of four or more persons.
2963 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
2964 fixed by the commission to a table of less than four persons.
2965 (c) A wine service may be performed and a service charge assessed by a resort amenity
2966 as authorized by commission rule for wine purchased at the resort amenity.
2967 (12) (a) Heavy beer may be served in an original container not exceeding one liter at a
2968 price fixed by the commission.
2969 (b) A flavored malt beverage may be served in an original container not exceeding one
2970 liter at a price fixed by the commission.
2971 (c) A service charge may be assessed by the resort amenity for heavy beer or a flavored
2972 malt beverage purchased at the resort amenity.
2973 (13) (a) (i) Subject to Subsection (13)(a)(ii), a person operating under a resort amenity
2974 sublicense may sell beer for on-premise consumption:
2975 (A) in an open container; and
2976 (B) on draft.
2977 (ii) Beer sold pursuant to Subsection (13)(a)(i) shall be in a size of container that does
2978 not exceed two liters, except that beer may not be sold to an individual in a size of container
2979 that exceeds one liter.
2980 (b) (i) A person operating under a resort amenity sublicense who sells beer pursuant to
2981 Subsection (13)(a):
2982 (A) may do so without obtaining a separate on-premise beer retailer license from the
2983 commission; and
2984 (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
2985 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
2986 inconsistent with or less restrictive than the operational restrictions under this part.
2987 (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
2988 Licenses, required by Subsection (13)(b)(i) may result in a suspension or revocation of the
2989 resort amenity's:
2990 (A) state liquor sublicense; and
2991 (B) alcoholic beverage license issued by a local authority.
2992 (14) An alcoholic beverage may not be stored, served, or sold in a place other than as
2993 designated in the resort licensee's application, unless the resort licensee first applies for and
2994 receives approval from the department for a change of location within the resort amenity.
2995 (15) (a) A person may only make an alcoholic beverage purchase in the resort amenity
2996 from and be served by a person employed, designated, and trained by the resort licensee or an
2997 agent of the resort license to sell, dispense, and serve an alcoholic beverage.
2998 (b) Notwithstanding Subsection (15)(a), a person who purchases bottled wine from an
2999 employee described in Subsection (15)(a) or carries bottled wine onto the resort amenity
3000 sublicense premises pursuant to Subsection (22) may thereafter serve wine from the bottle to
3001 the person or others at the person's table.
3002 (c) An individual furnished an alcoholic beverage at a resort amenity may have no
3003 more than two alcoholic beverages of any kind at a time before the individual, subject to the
3004 limitation of Subsection (10)(c)(ii).
3005 (16) The liquor storage area shall remain locked at all times other than those hours and
3006 days when liquor sales and service are authorized by law.
3007 (17) (a) An alcoholic beverage may only be consumed at a table or counter.
3008 (b) An alcoholic beverage may not be served to or consumed by a person at a bar.
3009 (18) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
3010 resort amenity after 1 a.m. or before 10 a.m.
3011 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
3012 Licenses, for on-premise beer licenses.
3013 (c) (i) Notwithstanding Subsections (18)(a) and (b), a resort amenity shall remain open
3014 for one hour after the resort amenity ceases the sale and service of an alcoholic beverage during
3015 which time a person at the resort amenity may finish consuming:
3016 (A) a single drink containing spirituous liquor;
3017 (B) a single serving of wine not exceeding five ounces;
3018 (C) a single serving of heavy beer;
3019 (D) a single serving of beer not exceeding 26 ounces; or
3020 (E) a single serving of a flavored malt beverage.
3021 (ii) A resort amenity is not required to remain open:
3022 (A) after all persons have vacated the resort amenity sublicense premises; or
3023 (B) during an emergency.
3024 (d) Between the hours of 2 a.m. and 10 a.m. a person operating under a resort amenity
3025 sublicense may not allow a person to remain on the resort amenity sublicense premises to
3026 consume an alcoholic beverage on the resort amenity sublicense premises.
3027 (19) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
3028 (a) minor;
3029 (b) person actually, apparently, or obviously intoxicated;
3030 (c) known habitual drunkard; or
3031 (d) known interdicted person.
3032 (20) (a) (i) Liquor may be sold only at a price fixed by the commission.
3033 (ii) Liquor may not be sold at a discount price on any date or at any time.
3034 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
3035 beverage for the resort amenity sublicense.
3036 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
3037 over consumption or intoxication.
3038 (d) The price of a single serving of a primary spirituous liquor shall be the same
3039 whether served as a single drink or in conjunction with another alcoholic beverage.
3040 (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
3041 hours of the resort amenity's business day such as a "happy hour."
3042 (f) More than one alcoholic beverage may not be sold or served for the price of a single
3043 alcoholic beverage.
3044 (g) An indefinite or unlimited number of alcoholic beverages may not be sold or served
3045 during a set period for a fixed price.
3046 (h) A person operating under a resort amenity sublicense may not engage in a
3047 promotion involving or offering a free alcoholic beverage to a person at the resort amenity.
3048 (21) An alcoholic beverage may not be purchased for a person at the resort amenity by:
3049 (a) the resort licensee; or
3050 (b) an employee or agent of the resort licensee or resort amenity.
3051 (22) (a) A person may not bring onto the resort amenity sublicense premises an
3052 alcoholic beverage for on-premise consumption, except that a person may bring, subject to the
3053 discretion of the resort licensee, bottled wine onto the resort amenity sublicense premises for
3054 on-premise consumption.
3055 (b) Except as provided in Subsection (22)(a), a person operating under a resort amenity
3056 sublicense including an officer, manager, employee, or agent of a resort amenity or resort
3057 licensee may not allow a person to bring onto the resort amenity sublicense premises an
3058 alcoholic beverage for consumption on the resort amenity license premises.
3059 (c) If bottled wine is carried in by a person, the person shall deliver the wine to a server
3060 or other representative of the resort amenity upon entering the resort amenity.
3061 (d) A wine service may be performed and a service charge assessed by the resort
3062 amenity as authorized by commission rule for wine carried in by a person.
3063 (23) (a) Except as provided in Subsection (23)(b), a person operating under a resort
3064 amenity sublicense or an employee of that person may not permit a person to carry from the
3065 resort amenity sublicense premises an open container that:
3066 (i) is used primarily for drinking purposes; and
3067 (ii) contains an alcoholic beverage.
3068 (b) A person may remove the unconsumed contents of a bottle of wine, if before
3069 removal, the bottle is recorked or recapped.
3070 (24) (a) A minor may not be employed to sell, dispense, or handle an alcoholic
3071 beverage for a resort amenity.
3072 (b) Notwithstanding Subsection (24)(a), a minor who is at least 16 years of age may be
3073 employed to enter the sale at a cash register or other sales recording device.
3074 (25) An employee for a resort amenity, while on duty, may not:
3075 (a) consume an alcoholic beverage; or
3076 (b) be intoxicated.
3077 (26) (a) A person operating under a resort amenity sublicense shall have available on
3078 the resort amenity sublicense premises for a person to review at the time that the customer
3079 requests it, a written alcoholic beverage price list or a menu containing the price of an alcoholic
3080 beverage sold or served by the resort amenity including:
3081 (i) a set-up charge;
3082 (ii) a service charge; or
3083 (iii) a chilling fee.
3084 (b) A charge or fee made in connection with the sale, service, or consumption of liquor
3085 may be stated in food or alcoholic beverage menus including:
3086 (i) a set-up charge;
3087 (ii) a service charge; or
3088 (iii) a chilling fee.
3089 (27) For purposes of the resort amenity sublicense, the resort licensee shall ensure that
3090 the following are displayed in a prominent place in the resort amenity:
3091 (a) the resort amenity sublicense that is issued by the department;
3092 (b) a list of the types and brand names of liquor being served through its calibrated
3093 metered dispensing system; and
3094 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
3095 drugs is a serious crime that is prosecuted aggressively in Utah."
3096 (28) A person operating under a resort amenity sublicense may not on the resort
3097 amenity sublicense premises:
3098 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
3099 Chapter 10, Part 11, Gambling;
3100 (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
3101 Part 11, Gambling; or
3102 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
3103 the risking of something of value for a return or for an outcome when the return or outcome is
3104 based upon an element of chance, excluding the playing of an amusement device that confers
3105 only an immediate and unrecorded right of replay not exchangeable for value.
3106 (29) (a) A resort licensee may not close or cease operation of a resort amenity
3107 sublicense for a period longer than 240 hours, unless:
3108 (i) the resort licensee notifies the department in writing at least seven days before the
3109 day on which the resort amenity closes or ceases operation; and
3110 (ii) the closure or cessation of operation is first approved by the department.
3111 (b) Notwithstanding Subsection (29)(a), in the case of emergency closure, the resort
3112 licensee shall immediately notify the department by telephone.
3113 (c) (i) The department may authorize a closure or cessation of operation for a period
3114 not to exceed 60 days.
3115 (ii) The department may extend the initial period an additional 30 days upon:
3116 (A) written request of the resort licensee; and
3117 (B) a showing of good cause.
3118 (iii) A closure or cessation of operation may not exceed a total of 90 days without
3119 commission approval.
3120 (d) The notice required by Subsection (29)(a) shall include:
3121 (i) the dates of closure or cessation of operation;
3122 (ii) the reason for the closure or cessation of operation; and
3123 (iii) the date on which the resort amenity will reopen or resume operation.
3124 (e) Failure of the resort licensee to provide notice and to obtain department
3125 authorization before closure or cessation of operation results in an automatic forfeiture of:
3126 (i) the resort amenity sublicense; and
3127 (ii) the unused portion of the resort amenity sublicense fee for the remainder of the
3128 license year effective immediately.
3129 (f) Failure of the resort amenity to reopen or resume operation by the approved date
3130 results in an automatic forfeiture of:
3131 (i) the resort amenity sublicense; and
3132 (ii) the unused portion of the resort amenity sublicense fee for the remainder of the
3133 license year.
3134 (30) A resort amenity sublicense may not be transferred from one location to another
3135 location, without prior written approval of the commission.
3136 (31) (a) A resort licensee, may not sell, transfer, assign, exchange, barter, give, or
3137 attempt in any way to dispose of the resort amenity sublicense to another person, whether for
3138 monetary gain or not.
3139 (b) A resort amenity sublicense has no monetary value for the purpose of any type of
3140 disposition.
3141 (32) A person operating under a resort amenity sublicense or an employee of that
3142 person may not knowingly allow a person on the resort amenity sublicense premises to, in
3143 violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
3144 Paraphernalia Act:
3145 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
3146 58-37-2 ; or
3147 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
3148 Section 58-37a-3 .
3149 Section 28. Section 32A-4a-401 is enacted to read:
3150
3151 32A-4a-401. Operational restrictions for resort license.
3152 (1) (a) A person issued a resort license and the employees and management personnel
3153 of the resort licensee including those operating under a sublicense shall comply with this title,
3154 the rules of the commission, and the conditions and requirements in this section.
3155 (b) Subject to Section 32A-4a-502 , failure to comply with this section may result in a
3156 suspension or revocation of the resort license or a sublicense, or other disciplinary action taken
3157 against individual employees or management personnel.
3158 (2) (a) A resort licensee may not offer for sale, sell, serve, or otherwise furnish an
3159 alcoholic beverage except:
3160 (i) on a sublicense premises;
3161 (ii) pursuant to a permit issued under this title; or
3162 (iii) under a package agency agreement with the department, subject to Chapter 3,
3163 Package Agencies.
3164 (b) A resort licensee who offers for sale, sells, serves, or otherwise furnishes an
3165 alcoholic beverage as provided in Subsection (2)(a), shall offer for sale, sell, or furnish the
3166 alcoholic beverage:
3167 (i) if on a sublicense premise, in accordance with the operational requirements under
3168 the provisions applicable to the sublicense, except as provided in Section 32A-4a-402 ;
3169 (ii) if under a permit issued under this title, in accordance with the operational
3170 requirements under the provisions applicable to the permit; and
3171 (iii) if as a package agency, in accordance with the contract with the department and
3172 Chapter 3, Package Agencies.
3173 (3) A person involved in the sale or service of an alcoholic beverage under a resort
3174 license shall:
3175 (a) be under the supervision and direction of the resort licensee; and
3176 (b) complete the seminar provided for in Section 62A-15-401 .
3177 (4) (a) A resort licensee may not purchase liquor except from a state store or package
3178 agency.
3179 (b) Liquor purchased by a resort licensee in accordance with this Subsection (4) may be
3180 transported by the resort licensee from the place of purchase to the resort license premises.
3181 (c) A resort licensee shall pay for liquor in accordance with rules made by the
3182 commission.
3183 (5) An alcoholic beverage may not be stored, served, or sold in a place other than as
3184 designated in the resort licensee's application, except that an additional location in or on a
3185 resort license premises may be approved in accordance with guidelines approved by the
3186 commission.
3187 (6) An alcoholic beverage storage area on the resort license premises shall remain
3188 locked at all times other than those hours and days when alcoholic beverage sales are
3189 authorized by law.
3190 (7) An alcoholic beverage may not be offered for sale, sold, served, or otherwise
3191 furnished for consumption on the resort license premises:
3192 (a) before 10 a.m.; or
3193 (b) after 1 p.m.
3194 (8) A resort licensee may not engage in a public promotion involving or offering a free
3195 alcoholic beverage to the general public.
3196 (9) A resort licensee may not on the resort license premises:
3197 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
3198 Chapter 10, Part 11, Gambling;
3199 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
3200 Part 11, Gambling; or
3201 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
3202 the risking of something of value for a return or for an outcome when the return or outcome is
3203 based upon an element of chance, excluding the playing of an amusement device that confers
3204 only an immediate and unrecorded right of replay not exchangeable for value.
3205 (10) (a) A resort licensee shall maintain accounting and such other records and
3206 documents as the commission or department may require.
3207 (b) A resort licensee or person acting for the resort licensee, who knowingly forges,
3208 falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or other
3209 document of the resort licensee required to be made, maintained, or preserved by this title or
3210 the rules of the commission for the purpose of deceiving the commission, the department, or an
3211 official or employee of the commission or department, is subject to:
3212 (i) the suspension or revocation of the resort license; and
3213 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
3214 (11) (a) Subject to Subsection (11)(b), a resort license shall operate in a manner so that
3215 at least 70% of the annual aggregate of the gross receipts related to the sale of food or
3216 beverages for the resort license and each of its sublicenses is from the sale of food, not
3217 including:
3218 (i) mix for an alcoholic beverage; and
3219 (ii) a charge in connection with the service of an alcoholic beverage.
3220 (b) In calculating the annual aggregate of the gross receipts described in Subsection
3221 (11)(a), a resort licensee is not required to include in the calculation monies from the sale of a
3222 bottle of wine by the retail licensee or under a sublicense in excess of $250.
3223 (12) A person may not transfer a resort license from one business location to another
3224 without prior written approval of the commission.
3225 (13) (a) A resort licensee may not sell, transfer, assign, exchange, barter, give, or
3226 attempt in any way to dispose of the license to another person, whether for monetary gain or
3227 not.
3228 (b) A resort license has no monetary value for the purpose of any type of disposition.
3229 (14) (a) Room service of an alcoholic beverage to a lodging accommodation of a resort
3230 facility shall be provided in person by a resort licensee employee only to an adult occupant in
3231 the lodging accommodation.
3232 (b) An alcoholic beverage may not be left outside a lodging accommodation for
3233 retrieval by an occupant.
3234 (c) A resort licensee may only provide an alcoholic beverage for room service in a
3235 sealed container.
3236 (15) A resort licensee or an employee of the resort licensee may not knowingly allow a
3237 person on the resort license premises to, in violation of Title 58, Chapter 37, Utah Controlled
3238 Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
3239 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
3240 58-37-2 ; or
3241 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
3242 Section 58-37a-3 .
3243 Section 29. Section 32A-4a-402 is enacted to read:
3244 32A-4a-402. Operational restrictions for a sublicense.
3245 (1) A person operating under a sublicense is subject to the operational restrictions
3246 under the provisions applicable to the sublicense except that, notwithstanding a requirement in
3247 the provisions applicable to the sublicense a person operating under the sublicense is not
3248 subject to:
3249 (a) a requirement that a certain percentage of the gross receipts for the sublicense be
3250 from the sale of food, except to the extent that the gross receipts for the sublicense is included
3251 in calculating the percentages under Subsection 32A-4a-401 (11); and
3252 (b) a restriction on the hours that an alcoholic beverage may be offered for sale, sold,
3253 served, or otherwise furnished that is more restrictive than the hour requirements of Subsection
3254 32A-4a-401 (7).
3255 (2) Subject to Section 32A-4a-501 , for purposes of interpreting an operational
3256 restriction imposed by the provisions applicable to a sublicense:
3257 (a) a requirement imposed on a person operating under a sublicense applies to the
3258 resort licensee; and
3259 (b) a requirement imposed on an employee or agent of a person operating under a
3260 sublicense applies to an employee or agent of the resort licensee.
3261 Section 30. Section 32A-4a-501 is enacted to read:
3262
3263 32A-4a-501. Enforcement of qualifications for a resort license or sublicense.
3264 (1) The commission or department may not take an action described in Subsection (2)
3265 with regard to a resort license unless the person who is found not to meet the qualifications of
3266 Section 32A-4a-203 is one of the following who is engaged in the management of the resort:
3267 (a) a partner;
3268 (b) a managing agent;
3269 (c) a manager;
3270 (d) an officer;
3271 (e) a director;
3272 (f) a stockholder who holds at least 20% of the total issued and outstanding stock of the
3273 applicant corporation;
3274 (g) a member who owns at least 20% of the applicant limited liability company; or
3275 (h) a person employed to act in a supervisory or managerial capacity for the resort
3276 licensee.
3277 (2) Subsection (1) applies to:
3278 (a) the commission immediately suspending or revoking a resort license, if after the
3279 day on which the resort license is issued, a person described in Subsection 32A-4a-203 (1)(a),
3280 (b), or (c):
3281 (i) is found to have been convicted of an offense described in Subsection
3282 32A-4a-203 (1)(a) prior to the resort license being issued; or
3283 (ii) on or after the day on which the resort license is issued:
3284 (A) is convicted of an offense described in Subsection 32A-4a-203 (1)(a)(i), (ii), or (iii);
3285 or
3286 (B) (I) is convicted of driving under the influence of alcohol, a drug, or the combined
3287 influence of alcohol and a drug; and
3288 (II) was convicted of driving under the influence of alcohol, a drug, or the combined
3289 influence of alcohol and a drug within five years before the day on which the person is
3290 convicted of the offense described in Subsection 32A-4a-203 (2)(b)(ii)(A);
3291 (b) the director taking an emergency action by immediately suspending the operation of
3292 a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for
3293 the period during which the criminal matter is being adjudicated if a person described in
3294 Subsection 32A-4a-203 (1)(a), (b), or (c):
3295 (i) is arrested on a charge for an offense described in Subsection 32A-4a-203 (1)(a)(i),
3296 (ii), or (iii); or
3297 (ii) (A) is arrested on a charge for the offense of driving under the influence of alcohol,
3298 a drug, or the combined influence of alcohol and a drug; and
3299 (B) was convicted of driving under the influence of alcohol, a drug, or the combined
3300 influence of alcohol and a drug within five years before the day on which the person is arrested
3301 on a charge described in Subsection (2)(b)(i); and
3302 (c) the commission suspending or revoking a resort license because a person to whom a
3303 resort license is issued under this chapter no longer possesses the qualifications required by this
3304 title for obtaining the resort license.
3305 Section 31. Section 32A-4a-502 is enacted to read:
3306 32A-4a-502. Enforcement of operational restrictions for a resort license or
3307 sublicense.
3308 (1) (a) Except as provided in Subsection (2), failure by a person described in
3309 Subsection (1)(b) to comply with this chapter or an operational restriction under a provision
3310 applicable to a sublicense may result in:
3311 (i) a suspension or revocation of the resort license;
3312 (ii) a fine or other administrative sanction permitted under this title; or
3313 (iii) other disciplinary action taken against an individual employee or management
3314 personnel of a resort licensee.
3315 (b) This Subsection (1) applies to:
3316 (i) a resort licensee;
3317 (ii) a person operating under a sublicense;
3318 (iii) an employee of a resort licensee or other person operating under a sublicense;
3319 (iv) an agent of a resort licensee or other person operating under a sublicense; or
3320 (v) personnel management of a resort licensee or other person operating under a
3321 sublicense.
3322 (2) (a) Notwithstanding the other provisions of this chapter and Section 32A-1-119 , if
3323 the failure to comply with this chapter described in Subsection (1) relates to an offer to sale,
3324 sell, service, or furnishing of an alcoholic beverage on a sublicense premises, a resort licensee
3325 or an individual member of the resort licensee's management personnel is subject to a sanction
3326 described in Subsection (1), only if the commission finds that:
3327 (i) during the three years before the day on which the commission makes the finding,
3328 there is three or more disciplinary proceedings against any person operating under a sublicense
3329 of the resort licensee for failure to comply with an operational restriction applicable to the
3330 sublicense; and
3331 (ii) the resort licensee has not taken reasonable steps to prevent persons operating
3332 under a sublicense of the resort licensee from failing to comply with operational restrictions
3333 applicable to the sublicense.
3334 (b) This Subsection (2) applies if the three or more disciplinary proceedings described
3335 in Subsection (2)(a) are against:
3336 (i) the same person operating under a sublicense of the resort licensee; or
3337 (ii) two or more different persons operating under a sublicense of the resort licensee.
3338 (3) An operational restriction applicable to a person operating under a sublicense is
3339 enforced as provided by the provisions applicable to the sublicense.
3340 Section 32. Section 32A-4a-503 is enacted to read:
3341 32A-4a-503. Enforcement of Nuisance Licensee Act.
3342 Chapter 15a, Nuisance Licensee Act, applies to a resort license only if three or more of
3343 the sublicenses of the resort license have not been renewed under Chapter 15a, Nuisance
3344 Licensee Act, within three years from the day on which a resort licensee applies for the renewal
3345 of its resort license.
3346 Section 33. Section 32A-5-101 is amended to read:
3347 32A-5-101. Commission's power to license private clubs -- Limitations.
3348 (1) Before a private club may sell or allow the consumption of alcoholic beverages on
3349 its premises, the private club shall first obtain a license from the commission as provided in
3350 this chapter.
3351 (2) The commission may grant private club licenses to social clubs, recreational,
3352 athletic, or kindred associations that desire to maintain premises upon which alcoholic
3353 beverages may be stored, sold, served, and consumed.
3354 (3) At the time the commission grants a private club license the commission shall
3355 designate whether the private club license qualifies as a class A, B, C, or D license as defined
3356 in Subsections (3)(a) through (d).
3357 (a) A "class A licensee" is a private club licensee that:
3358 (i) meets the requirements of this chapter;
3359 (ii) owns, maintains, or operates a substantial recreational facility in conjunction with a
3360 club house such as:
3361 (A) a golf course; or
3362 (B) a tennis facility;
3363 (iii) has at least 50% of the total membership having:
3364 (A) full voting rights; and
3365 (B) an equal share of the equity of the club; and
3366 (iv) if there is more than one class of membership, has at least one class of membership
3367 that entitles each member in that class to:
3368 (A) full voting rights; and
3369 (B) an equal share of the equity of the club.
3370 (b) A "class B licensee" is a private club licensee that:
3371 (i) meets the requirements of this chapter;
3372 (ii) has no capital stock;
3373 (iii) exists solely for:
3374 (A) the benefit of its members and their beneficiaries; and
3375 (B) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
3376 patriotic, or religious purpose for the benefit of its members or the public, carried on through
3377 voluntary activity of its members in their local lodges;
3378 (iv) has a representative form of government; and
3379 (v) has a lodge system in which:
3380 (A) there is a supreme governing body;
3381 (B) subordinate to the supreme governing body are local lodges, however designated,
3382 into which individuals are admitted as members in accordance with the laws of the fraternal;
3383 (C) the local lodges are required by the laws of the fraternal to hold regular meetings at
3384 least monthly; and
3385 (D) the local lodges regularly engage in one or more programs involving member
3386 participation to implement the purposes of Subsection (3)(b)(iii).
3387 (c) A "class C licensee" is a private club licensee that:
3388 (i) meets the requirements of this chapter;
3389 (ii) is a dining club, as determined by the commission in accordance with Subsection
3390 (4); and
3391 (iii) maintains at least 50% of its total private club business from the sale of food, not
3392 including:
3393 (A) mix for alcoholic beverages; or
3394 (B) service charges.
3395 (d) A "class D licensee" is a private club licensee that:
3396 (i) meets the requirements of this chapter; and
3397 (ii) (A) does not meet the requirements of a class A, B, or C license; or
3398 (B) seeks to qualify as a class D licensee.
3399 (4) In determining whether an applicant is a dining club under Subsection (3)(c), the
3400 commission:
3401 (a) shall determine whether the applicant maintains at least 50% of its total private club
3402 business from the sale of food, not including:
3403 (i) mix for alcoholic beverages;
3404 (ii) service charges; or
3405 (iii) membership and visitor card fees; and
3406 (b) may consider:
3407 (i) the square footage and seating capacity of the applicant;
3408 (ii) what portion of the square footage and seating capacity will be used for a dining
3409 area in comparison to the portion that will be used as a bar area;
3410 (iii) whether full meals including appetizers, main courses, and desserts are served;
3411 (iv) whether the applicant will maintain adequate on-premise culinary facilities to
3412 prepare full meals, except an applicant that is located on the premise of a hotel or resort facility
3413 may use the culinary facilities of the hotel or resort facility;
3414 (v) whether the entertainment provided at the club is suitable for minors; and
3415 (vi) the club management's ability to manage and operate a dining club including:
3416 (A) management experience;
3417 (B) past dining club or restaurant management experience; and
3418 (C) the type of management scheme employed by the private club.
3419 (5) (a) A private club or any officer, director, managing agent, or employee of a private
3420 club may not store, sell, serve, or permit consumption of alcoholic beverages upon the premises
3421 of the club, under a permit issued by local authority or otherwise, unless a private club license
3422 is first issued by the commission.
3423 (b) Violation of this Subsection (5) is a class B misdemeanor.
3424 (6) (a) Subject to the other provisions of this Subsection (6), the commission may issue
3425 private club licenses at places and in numbers as the commission considers necessary.
3426 (b) The total number of private club licenses may not at any time aggregate more than
3427 that number determined by dividing the population of the state by [
3428 (c) For purposes of this Subsection (6), population shall be determined by:
3429 (i) the most recent United States decennial or special census; or
3430 (ii) another population determination made by the United States or state governments.
3431 (d) (i) The commission may issue seasonal private club licenses to be established in
3432 areas the commission considers necessary.
3433 (ii) A seasonal private club license shall be for a period of six consecutive months.
3434 (iii) A private club license issued for operation during a summer time period is known
3435 as a "Seasonal A" private club license. The period of operation for a "Seasonal A" club license
3436 shall:
3437 (A) begin on May 1; and
3438 (B) end on October 31.
3439 (iv) A private club license issued for operation during a winter time period is known as
3440 a "Seasonal B" private club license. The period of operation for a "Seasonal B" club license
3441 shall:
3442 (A) begin on November 1; and
3443 (B) end on April 30.
3444 (v) In determining the number of private club licenses that the commission may issue
3445 under this section:
3446 (A) a seasonal private club license is counted as 1/2 of one private club license; and
3447 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
3448 (e) (i) If the location, design, and construction of a hotel may require more than one
3449 private club location within the hotel to serve the public convenience, the commission may
3450 authorize as many as three private club locations within the hotel under one license if:
3451 (A) the hotel has a minimum of 150 guest rooms; and
3452 (B) all locations under the license are:
3453 (I) within the same hotel facility; and
3454 (II) on premises which are managed or operated and owned or leased by the licensee.
3455 (ii) A facility other than a hotel may not have more than one private club location under
3456 a single private club license.
3457 (7) (a) Except as provided in Subsection (7)(b), (c), or (d), the premises of a private
3458 club license may not be established:
3459 (i) within 600 feet of a community location, as measured by the method in Subsection
3460 (7)(e); or
3461 (ii) within 200 feet of a community location, measured in a straight line from the
3462 nearest entrance of the proposed outlet to the nearest property boundary of the community
3463 location.
3464 (b) With respect to the establishment of a private club license, the commission may
3465 authorize a variance to reduce the proximity requirement of Subsection (7)(a)(i) if:
3466 (i) the local authority grants its written consent to the variance;
3467 (ii) the commission finds that alternative locations for establishing a private club
3468 license in the community are limited;
3469 (iii) a public hearing is held in the city, town, or county, and where practical in the
3470 neighborhood concerned;
3471 (iv) after giving full consideration to all of the attending circumstances and the policies
3472 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
3473 license would not be detrimental to the public health, peace, safety, and welfare of the
3474 community; and
3475 (v) (A) the community location governing authority gives its written consent to the
3476 variance; or
3477 (B) when written consent is not given by the community location governing authority,
3478 the commission finds that the applicant has established that:
3479 (I) there is substantial unmet public demand to consume alcohol in a public setting
3480 within the geographic boundary of the local authority in which the private club licensee is to be
3481 located;
3482 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
3483 described in Subsection (7)(b)(v)(B)(I) other than through the establishment of a private club
3484 licensee; and
3485 (III) there is no reasonably viable alternative location within the geographic boundary
3486 of the local authority in which the private club licensee is to be located for establishing a
3487 private club license to satisfy the unmet demand described in Subsection (7)(b)(v)(B)(I).
3488 (c) With respect to the establishment of a private club license, the commission may
3489 authorize a variance that reduces the proximity requirement of Subsection (7)(a)(ii) if:
3490 (i) the community location at issue is:
3491 (A) a public library; or
3492 (B) a public park;
3493 (ii) the local authority grants its written consent to the variance;
3494 (iii) the commission finds that alternative locations for establishing a private club
3495 license in the community are limited;
3496 (iv) a public hearing is held in the city, town, or county, and where practical in the
3497 neighborhood concerned;
3498 (v) after giving full consideration to all of the attending circumstances and the policies
3499 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
3500 private club license would not be detrimental to the public health, peace, safety, and welfare of
3501 the community; and
3502 (vi) (A) the community location governing authority gives its written consent to the
3503 variance; or
3504 (B) when written consent is not given by the community location governing authority,
3505 the commission finds that the applicant has established that:
3506 (I) there is substantial unmet public demand to consume alcohol in a public setting
3507 within the geographic boundary of the local authority in which the private club licensee is to be
3508 located;
3509 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
3510 described in Subsection (7)(c)(vi)(B)(I) other than through the establishment of a private club
3511 license; and
3512 (III) there is no reasonably viable alternative location within the geographic boundary
3513 of the local authority in which the private club licensee is to be located for establishing a
3514 private club license to satisfy the unmet demand described in Subsection (7)(c)(vi)(B)(I).
3515 (d) With respect to the premises of a private club license issued by the commission that
3516 undergoes a change of ownership, the commission may waive or vary the proximity
3517 requirements of Subsection (7)(a) in considering whether to grant a private club license to the
3518 new owner of the premises if:
3519 (i) (A) the premises previously received a variance reducing the proximity requirement
3520 of Subsection (7)(a)(i); or
3521 (B) the premises received a variance reducing the proximity requirement of Subsection
3522 (7)(a)(ii) on or before May 4, 2008; or
3523 (ii) a variance from proximity requirements was otherwise allowed under this title.
3524 (e) The 600 foot limitation described in Subsection (7)(a)(i) is measured from the
3525 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
3526 property boundary of the community location.
3527 (8) (a) Nothing in this section prevents the commission from considering the proximity
3528 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
3529 decision on whether to issue a private club license.
3530 (b) For purposes of this Subsection (8), "educational facility" includes:
3531 (i) a nursery school;
3532 (ii) infant day care center; and
3533 (iii) a trade and technical school.
3534 (9) If requested by a private club licensee, the commission may approve a change in the
3535 class of private club license in accordance with rules made by the commission.
3536 Section 34. Section 32A-5-102 is amended to read:
3537 32A-5-102. Application and renewal requirements.
3538 (1) A club seeking a class A, B, C, or D private club license under this chapter shall
3539 file a written application with the department in a form prescribed by the department. The
3540 application shall be accompanied by:
3541 (a) a nonrefundable $250 application fee;
3542 (b) an initial license fee of $2,500, which is refundable if a license is not granted;
3543 (c) written consent of the local authority;
3544 (d) a copy of the applicant's current business license;
3545 (e) evidence of proximity to any community location, with proximity requirements
3546 being governed by Section 32A-5-101 ;
3547 (f) evidence that the applicant operates a club where a variety of food is prepared and
3548 served in connection with dining accommodations;
3549 (g) a bond as specified by Section 32A-5-106 ;
3550 (h) a floor plan of the club premises, including consumption areas and the area where
3551 the applicant proposes to keep and store liquor;
3552 (i) evidence that the club is carrying public liability insurance in an amount and form
3553 satisfactory to the department;
3554 (j) evidence that the club is carrying dramshop insurance coverage of at least
3555 [
3556 (k) a copy of the club's bylaws or house rules, and any amendments to those
3557 documents, which shall be kept on file with the department at all times;
3558 (l) a signed consent form stating that the club and its management will permit any
3559 authorized representative of the commission, department, or any law enforcement officer
3560 unrestricted right to enter the club premises;
3561 (m) (i) a statement as to whether the private club is seeking to qualify as a class A, B,
3562 C, or D private club licensee; and
3563 (ii) evidence that the private club meets the requirements for the classification for
3564 which the club is applying;
3565 (n) in the case of a partnership, corporation, or limited liability company applicant,
3566 proper verification evidencing that the person or persons signing the private club application
3567 are authorized to so act on behalf of the partnership, corporation, or limited liability company;
3568 and
3569 (o) any other information the commission or department may require.
3570 (2) (a) The commission may refuse to issue a license if the commission determines that
3571 any provisions of the club's bylaws or house rules, or amendments to those documents are not:
3572 (i) reasonable; and
3573 (ii) consistent with:
3574 (A) the declared nature and purpose of the applicant; and
3575 (B) the purposes of this chapter.
3576 (b) Club bylaws or house rules shall include provisions respecting the following:
3577 (i) standards of eligibility for members;
3578 (ii) limitation of members, consistent with the nature and purpose of the private club;
3579 (iii) the period for which dues are paid, and the date upon which the period expires;
3580 (iv) provisions for dropping members for the nonpayment of dues or other cause; and
3581 (v) provisions for guests or visitors, if any, and for the issuance and use of visitor
3582 cards.
3583 (3) (a) All private club licenses expire on June 30 of each year.
3584 (b) A person desiring to renew that person's private club license shall submit by no later
3585 than May 31:
3586 (i) a completed renewal application to the department; and
3587 (ii) a renewal fee in the following amount:
3588 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
3589 under $10,000 $1,000
3590 equals or exceeds $10,000 but less than $25,000 $1,250
3591 equals or exceeds $25,000 but less than $75,000 $1,750
3592 equals or exceeds $75,000 $2,250
3593 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
3594 the license effective on the date the existing license expires.
3595 (d) A renewal application shall be in a form as prescribed by the department.
3596 (4) To ensure compliance with Subsection 32A-5-107 (40), the commission may
3597 suspend or revoke any private club license if the private club licensee does not immediately
3598 notify the department of any change in:
3599 (a) ownership of the club;
3600 (b) for a corporate owner, the:
3601 (i) corporate officers or directors; or
3602 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
3603 corporation; or
3604 (c) for a limited liability company:
3605 (i) managers; or
3606 (ii) members owning at least 20% of the limited liability company.
3607 Section 35. Section 32A-9-103 is amended to read:
3608 32A-9-103. Qualifications.
3609 (1) (a) The commission may not grant a warehousing license to any person who has
3610 been convicted of:
3611 (i) a felony under any federal or state law;
3612 (ii) any federal or state law or local ordinance concerning the sale, manufacture,
3613 distribution, warehousing, adulteration, or transportation of alcoholic beverages;
3614 (iii) any crime involving moral turpitude; or
3615 (iv) on two or more occasions within the five years before the day on which the license
3616 is granted, driving under the influence of alcohol, any drug, or the combined influence of
3617 alcohol and any drug.
3618 (b) In the case of a partnership, corporation, or limited liability company the
3619 proscription under Subsection (1)(a) applies if any of the following has been convicted of any
3620 offense described in Subsection (1)(a):
3621 (i) a partner;
3622 (ii) a managing agent;
3623 (iii) a manager;
3624 (iv) an officer;
3625 (v) a director;
3626 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
3627 the applicant corporation; or
3628 (vii) a member who owns at least 20% of the applicant limited liability company.
3629 (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
3630 supervisory or managerial capacity for the warehouse has been convicted of any offense
3631 described in Subsection (1)(a).
3632 (2) The commission may immediately suspend or revoke a warehousing license if after
3633 the day on which the warehousing license is granted, a person described in Subsection (1)(a),
3634 (b), or (c):
3635 (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
3636 to the license being granted; or
3637 (b) on or after the day on which the license is granted:
3638 (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
3639 (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
3640 combined influence of alcohol and any drug; and
3641 (B) was convicted of driving under the influence of alcohol, any drug, or the combined
3642 influence of alcohol and any drug within five years before the day on which the person is
3643 convicted of the offense described in Subsection (2)(b)(ii)(A).
3644 (3) The director may take emergency action by immediately suspending the operation
3645 of the warehousing license according to the procedures and requirements of Title 63G, Chapter
3646 4, Administrative Procedures Act, for the period during which the criminal matter is being
3647 adjudicated if a person described in Subsection (1)(a), (b), or (c):
3648 (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
3649 or
3650 (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
3651 any drug, or the combined influence of alcohol and any drug; and
3652 (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
3653 influence of alcohol and any drug within five years before the day on which the person is
3654 arrested on a charge described in Subsection (3)(b)(i).
3655 (4) (a) (i) The commission may not grant a warehousing license to any person who has
3656 had any type of license, agency, or permit issued under this title revoked within the last three
3657 years.
3658 (ii) The commission may not grant a warehousing license to an applicant that is a
3659 partnership, corporation, or limited liability company if any partner, managing agent, manager,
3660 officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
3661 of an applicant corporation, or member who owns at least 20% of an applicant limited liability
3662 company is or was:
3663 (A) a partner or managing agent of any partnership that had any type of license, agency,
3664 or permit issued under this title revoked within the last three years;
3665 (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
3666 of the total issued and outstanding stock of any corporation that had any type of license,
3667 agency, or permit issued under this title revoked within the last three years; or
3668 (C) a manager or member who owns or owned at least 20% of any limited liability
3669 company that had any type of license, agency, or permit issued under this title revoked within
3670 the last three years.
3671 (b) An applicant that is a partnership, corporation, or limited liability company may not
3672 be granted a warehousing license if any of the following had any type of license, agency, or
3673 permit issued under this title revoked while acting in that person's individual capacity within
3674 the last three years:
3675 (i) any partner or managing agent of the applicant partnership;
3676 (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
3677 total issued and outstanding stock of the applicant corporation; or
3678 (iii) any manager or member who owns at least 20% of the applicant limited liability
3679 company.
3680 (c) A person acting in an individual capacity may not be granted a warehousing license
3681 if that person was:
3682 (i) a partner or managing agent of a partnership that had any type of license, agency, or
3683 permit issued under this title revoked within the last three years;
3684 (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
3685 total issued and outstanding stock of a corporation that had any type of license, agency, or
3686 permit issued under this title revoked within the last three years; or
3687 (iii) any manager or member who owned at least 20% of a limited liability company
3688 that had any type of license, agency, or permit issued under this title revoked within the last
3689 three years.
3690 (5) (a) A minor may not be:
3691 (i) granted a warehousing license; or
3692 (ii) employed by a warehouse to handle liquor.
3693 (b) The commission may not grant a warehousing license to an applicant that is a
3694 partnership, corporation, or limited liability company if any of the following is a minor:
3695 (i) a partner or managing agent of the applicant partnership;
3696 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
3697 total issued and outstanding stock of the applicant corporation; or
3698 (iii) a manager or member who owns at least 20% of the applicant limited liability
3699 company.
3700 (6) A person, through any officer, director, representative, agent, or employee, or
3701 otherwise, either directly or indirectly, may not hold at the same time both a warehousing
3702 license and any other kind of license, agency, or permit issued under Title 32A, Chapter 3, 4,
3703 4a, 5, 6, or 7, or Chapter 10, Part 2.
3704 (7) If any person to whom a license has been issued under this chapter no longer
3705 possesses the qualifications required by this title for obtaining that license, the commission
3706 may suspend or revoke that license.
3707 Section 36. Section 32A-10-202 is amended to read:
3708 32A-10-202. Application and renewal requirements.
3709 (1) A person seeking an on-premise beer retailer license under this chapter shall file a
3710 written application with the department, in a form prescribed by the department. The
3711 application shall be accompanied by:
3712 (a) a nonrefundable $250 application fee;
3713 (b) an initial license fee that is refundable if a license is not granted in the following
3714 amount:
3715 (i) if the on-premise beer retailer licensee does not operate as a tavern, the initial
3716 license fee is $150; or
3717 (ii) if the on-premise beer retailer licensee operates as a tavern, the initial license fee is
3718 $1,250;
3719 (c) written consent of the local authority or a license to sell beer at retail for on-premise
3720 consumption granted by the local authority under Section 32A-10-101 ;
3721 (d) a copy of the applicant's current business license;
3722 (e) evidence of proximity to any community location, with proximity requirements
3723 being governed by Section 32A-10-201 ;
3724 (f) a bond as specified by Section 32A-10-205 ;
3725 (g) a floor plan of the premises, including consumption areas and the area where the
3726 applicant proposes to keep, store, and sell beer;
3727 (h) evidence that the on-premise beer retailer licensee is carrying public liability
3728 insurance in an amount and form satisfactory to the department;
3729 (i) for a licensee that sells more than $5,000 of beer annually, evidence that the
3730 on-premise beer retailer licensee is carrying dramshop insurance coverage of at least
3731 [
3732 (j) a signed consent form stating that the on-premise beer retailer licensee will permit
3733 any authorized representative of the commission, department, or any peace officer unrestricted
3734 right to enter the licensee premises;
3735 (k) in the case of an applicant that is a partnership, corporation, or limited liability
3736 company, proper verification evidencing that the person or persons signing the on-premise beer
3737 retailer licensee application are authorized to so act on the behalf of the partnership,
3738 corporation, or limited liability company; and
3739 (l) any other information the department may require.
3740 (2) (a) All on-premise beer retailer licenses expire on the last day of February of each
3741 year.
3742 (b) (i) Except as provided in Subsection (2)(b)(ii), a person desiring to renew the
3743 person's on-premise beer retailer license shall submit by no later than January 31:
3744 (A) a completed renewal application to the department; and
3745 (B) a renewal fee in the following amount:
3746 (I) if the on-premise beer retailer licensee does not operate as a tavern, the renewal fee
3747 is $200; or
3748 (II) if the on-premise beer retailer licensee operates as a tavern, the renewal fee is
3749 $1,000.
3750 (ii) A licensee is not required to submit a renewal fee if the licensee is:
3751 (A) a state agency; or
3752 (B) a political subdivision of the state including:
3753 (I) a county; or
3754 (II) a municipality.
3755 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
3756 the license, effective on the date the existing license expires.
3757 (d) A renewal statement shall be in a form as prescribed by the department.
3758 (3) To ensure compliance with Subsection 32A-10-206 (17), the commission may
3759 suspend or revoke a beer retailer license if a beer retailer licensee does not immediately notify
3760 the department of any change in:
3761 (a) ownership of the beer retailer;
3762 (b) for a corporate owner, the:
3763 (i) corporate officers or directors; and
3764 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
3765 corporation; or
3766 (c) for a limited liability company:
3767 (i) managers; or
3768 (ii) members owning at least 20% of the limited liability company.
3769 (4) An applicant need not meet the requirements of Subsections (1)(a), (b), (c), (d), and
3770 (f) if the applicant is:
3771 (a) a state agency; or
3772 (b) a political subdivision of the state including:
3773 (i) a county; or
3774 (ii) a municipality.
3775 (5) (a) Except as provided in Subsection (5)(c), only one state on-premise beer retailer
3776 license is required for each building or resort facility owned or leased by the same applicant.
3777 (b) Except as provided in Subsection (5)(c), separate licenses are not required for each
3778 retail beer dispensing outlet located in the same building or on the same resort premises owned
3779 or operated by the same applicant.
3780 (c) (i) Subsections (5)(a) and (5)(b) apply only if all of the retail beer dispensing outlets
3781 in the building or resort facility operate in the same manner.
3782 (ii) If the condition described in Subsection (5)(c)(i) is not met:
3783 (A) one state on-premise beer retailer tavern license is required for all outlets in the
3784 same building or on the same resort premises that operate as a tavern; and
3785 (B) one state on-premise beer retailer license is required for all outlets in the same
3786 building or on the same resort premises that do not operate as a tavern.
3787 Section 37. Section 32A-12-101 is amended to read:
3788 32A-12-101. Applicability of Utah Criminal Code.
3789 Except as otherwise provided, Title 76, Chapters 1, 2, 3, and 4[
3790
3791
3792
3793
3794 this chapter or expressly identified as a criminal offense in this title.
3795 Section 38. Section 32A-12-102 is amended to read:
3796 32A-12-102. Special burdens of proof -- Inferences and presumptions.
3797 (1) In [
3798 brought to enforce this title:
3799 (a) it is not necessary that the state or commission establish:
3800 (i) the precise description or quantity of [
3801 alcoholic product; or [
3802 (ii) the precise consideration, if any, given or received for [
3803
3804 (b) there is an inference, absent proof to the contrary, that [
3805 or alcoholic product in question is an alcoholic beverage or alcoholic product if the witness
3806 describes it:
3807 (i) as an alcoholic beverage or alcoholic product;
3808 (ii) by a name that is commonly applied to an alcoholic beverage or alcoholic product;
3809 or
3810 (iii) as intoxicating;
3811 (c) if it is alleged that an association or corporation has violated this title, the fact of the
3812 incorporation of the association or corporation is presumed absent proof to the contrary;
3813 (d) a certificate or report signed or purporting to be signed by any state chemist,
3814 assistant state chemist, or state crime laboratory chemist, as to the analysis or ingredients of
3815 [
3816 (i) prima facie evidence:
3817 (A) of the facts stated in that certificate or report; and
3818 (B) of the authority of the person giving or making the report; and
3819 (ii) admissible in evidence without any proof of appointment or signature absent proof
3820 to the contrary; and
3821 (e) a copy of entries made in the records of the United States internal revenue collector,
3822 certified by the collector or a qualified notary public, showing the payment of the United States
3823 internal revenue special tax for the manufacture or sale of an alcoholic [
3824 beverage or alcoholic product is prima facie evidence of the manufacture or sale by the party
3825 named in the entry within the period set forth in the record.
3826 (2) (a) In proving the unlawful sale, disposal, gift, or purchase, gratuitous or otherwise,
3827 or consumption of an alcoholic [
3828 necessary that the state or commission establish that any money or other consideration actually
3829 passed or that an alcoholic beverage or alcoholic product was actually consumed if the court or
3830 trier of fact is satisfied that:
3831 (i) a transaction in the nature of a sale, disposal, gift, or purchase actually occurred; or
3832 (ii) [
3833 product was about to occur.
3834 (b) Proof of consumption or intended consumption of an alcoholic beverage or
3835 alcoholic product on premises on which consumption is prohibited, by some person not
3836 authorized to consume an alcoholic [
3837 those premises, is evidence that an alcoholic beverage or alcoholic product was sold or given to
3838 or purchased by the person consuming, about to consume, or carrying away the alcoholic
3839 beverage or alcoholic product as against the occupant of the premises.
3840 (3) For purposes of a provision applicable under this chapter to a retail licensee or
3841 officer, manager, employee, or agent of the retail licensee, the provision is applicable to a resort
3842 licensee or a person operating under a sublicense of the resort licensee.
3843 Section 39. Section 32A-12-104 is amended to read:
3844 32A-12-104. Violation of title a misdemeanor.
3845 [
3846 (1) Unless otherwise provided in this title, a person is guilty of a class B
3847 misdemeanor[
3848 (a) this chapter; or
3849 (b) a provision of this title that is expressly identified as a criminal offense.
3850 (2) This section is not applicable to an adjudicative proceeding under Section
3851 32A-1-119 , but only:
3852 (a) makes a violation described in Subsection (1) a criminal offense; and
3853 (b) establishes a penalty for a violation described in Subsection (1) that is prosecuted
3854 criminally.
3855 Section 40. Section 32A-12-213 is amended to read:
3856 32A-12-213. Unlawful bringing onto premises for consumption.
3857 (1) Except as provided in Subsection (3), a person may not bring for on-premise
3858 consumption [
3859 (a) a licensed or unlicensed restaurant;
3860 (b) a licensed or unlicensed private club;
3861 (c) an airport lounge licensee;
3862 (d) an on-premise banquet licensee;
3863 (e) an on-premise beer retailer licensee;
3864 (f) a resort license premises;
3865 (g) a sublicense premises of a resort licensee;
3866 [
3867 single event permit or temporary special event beer permit issued under this title; or
3868 [
3869 (2) Except as provided in Subsection (3), [
3870
3871
3872
3873 onto its premises [
3874 consumption of [
3875 section[
3876 (a) a licensed or unlicensed restaurant;
3877 (b) a licensed or unlicensed private club;
3878 (c) an airport lounge licensee;
3879 (d) an on-premise banquet licensee;
3880 (e) a resort licensee in relationship to:
3881 (i) the resort license premises; or
3882 (ii) a sublicense premises;
3883 (f) a person operating a sublicense of a resort license;
3884 (g) an on-premise beer retailer licensee;
3885 (h) a holder of a single event permit or temporary special event beer permit issued
3886 under this title; or
3887 (i) an officer, manager, employee, or agent of a person listed in Subsections (2)(a)
3888 through (h).
3889 (3) (a) A person may bring bottled wine onto the premises of [
3890 licensee, limited restaurant licensee, or private club licensee and consume the wine pursuant to
3891 the applicable restrictions contained in Subsection 32A-4-106 (14), 32A-4-307 (14), or
3892 32A-5-107 (31);
3893 (b) a passenger of a limousine may bring onto, have, and consume any alcoholic
3894 beverage on the limousine if:
3895 (i) the travel of the limousine begins and ends at:
3896 (A) the residence of the passenger;
3897 (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
3898 (C) the temporary domicile of the passenger; and
3899 (ii) the driver of the limousine is separated from the passengers by partition or other
3900 means approved by the department;
3901 (c) a passenger of a chartered bus may bring onto, have, and consume any alcoholic
3902 beverage on the chartered bus:
3903 (i) (A) but may consume only during travel to a specified destination of the chartered
3904 bus and not during travel back to the place where the travel begins; or
3905 (B) if the travel of the chartered bus begins and ends at:
3906 (I) the residence of the passenger;
3907 (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
3908 (III) the temporary domicile of the passenger; and
3909 (ii) the chartered bus has a nondrinking designee other than the driver traveling on the
3910 chartered bus to monitor consumption; [
3911 (d) a person may bring onto any premises, have, and consume [
3912 beverage at a privately hosted event that is not open to the general public[
3913 (e) a person may bring onto a sublicense premises an alcoholic beverage to the extent
3914 permitted under Chapter 4a, Resort License Act.
3915 (4) Except as provided in Subsection (3)(c)(i)(A), the consumption of an alcoholic
3916 [
3917 allowed if the limousine or chartered bus drops off [
3918
3919 private vehicle.
3920 Section 41. Section 32A-12-222 is amended to read:
3921 32A-12-222. Unlawful dispensing.
3922 (1) For purposes of this section:
3923 (a) "primary spirituous liquor" means the main distilled spirit in a beverage; and
3924 (b) "primary spirituous liquor" does not include a secondary alcoholic product used as
3925 a flavoring in conjunction with the primary distilled spirit in the beverage.
3926 (2) A licensee licensed under this title to sell, serve, or otherwise furnish spirituous
3927 liquor for consumption on the licensed premises, or an officer, manager, employee, or agent of
3928 the licensee may not:
3929 (a) sell, serve, dispense, or otherwise furnish a primary spirituous liquor to a person on
3930 the licensed premises except in a quantity that does not exceed 1.5 ounces per beverage
3931 dispensed through a calibrated metered dispensing system approved by the department;
3932 (b) sell, serve, dispense, or otherwise furnish more than a total of 2.5 ounces of
3933 spirituous liquor per beverage;
3934 (c) allow [
3935 ounces of spirituous liquor at a time;
3936 (d) allow [
3937 spirituous liquor beverage at a time:
3938 (i) a restaurant liquor licensee;
3939 (ii) an on-premise banquet licensee; [
3940 (iii) one of the following sublicenses of a resort license:
3941 (A) a restaurant sublicense;
3942 (B) a resort amenities sublicense; or
3943 (C) an on-premise banquet licensee; or
3944 [
3945 (e) allow [
3946 violation of:
3947 (i) Subsection 32A-4-206 (2)(d); or
3948 (ii) Subsection 32A-5-107 (20)(d).
3949 (3) A violation of this section is a class C misdemeanor.
3950 Section 42. Section 32A-12-301 is amended to read:
3951 32A-12-301. Operating without a license or permit.
3952 (1) (a) A person may not operate the following businesses without first obtaining a
3953 license under this title if the business allows a [
3954
3955 beverage on the premises of the business:
3956 [
3957 [
3958 [
3959 (iv) a resort;
3960 [
3961 [
3962 [
3963 (b) Subsection (1)(a) applies if one of the following is allowed to purchase or consume
3964 an alcoholic beverage on the premises of the business:
3965 (i) a patron;
3966 (ii) a customer;
3967 (iii) a member;
3968 (iv) a guest;
3969 (v) a visitor;
3970 (vi) a resident of a resort;
3971 (vii) a holder of a customer card under Chapter 4a, Part 3, Resort Amenity Sublicense;
3972 or
3973 (viii) an invitee.
3974 (2) A person conducting an event or function that is open to the general public may not
3975 directly or indirectly sell, offer to sell, or otherwise furnish an alcoholic beverage to a person
3976 attending the event or function without first obtaining a permit under this title.
3977 (3) A person conducting a privately hosted event or private social function may not
3978 directly or indirectly sell or offer to sell an alcoholic beverage to a person attending the
3979 privately hosted event or private social function without first obtaining a permit under this title.
3980 (4) A person may not operate the following businesses without first obtaining a license
3981 under this title:
3982 (a) a winery manufacturer;
3983 (b) a distillery manufacturer;
3984 (c) a brewery manufacturer;
3985 (d) a local industry representative of:
3986 (i) a manufacturer of an alcoholic beverage;
3987 (ii) a supplier of an alcoholic beverage; or
3988 (iii) an importer of an alcoholic beverage;
3989 (e) a liquor warehouser; or
3990 (f) a beer wholesaler.
3991 (5) A person may not operate a public conveyance in this state without first obtaining a
3992 public service permit under this title if that public conveyance allows a person to purchase or
3993 consume an alcoholic beverage or alcoholic product:
3994 (a) on the public conveyance; or
3995 (b) on the premises of a hospitality room located with a depot, terminal, or similar
3996 facility at which a service is provided to a patron of the public conveyance.
3997 Section 43. Section 32A-14a-102 is amended to read:
3998 32A-14a-102. Liability for injuries and damage resulting from distribution of
3999 alcoholic beverages -- Causes of action -- Statute of limitations -- Employee protections.
4000 (1) (a) Except as provided in Section 32A-14a-103 , a person described in Subsection
4001 (1)(b) is liable for:
4002 (i) any and all injury and damage, except punitive damages to:
4003 (A) any third person; or
4004 (B) the heir, as defined in Section 78B-3-105 , of that third person; or
4005 (ii) for the death of a third person.
4006 (b) A person is liable under Subsection (1)(a) if:
4007 (i) the person directly gives, sells, or otherwise provides an alcoholic beverage:
4008 (A) to a person described in Subsection (1)(b)(ii); and
4009 (B) as part of the commercial sale, storage, service, manufacture, distribution, or
4010 consumption of alcoholic products;
4011 (ii) those actions cause the intoxication of:
4012 (A) any individual under the age of 21 years;
4013 (B) any individual who is apparently under the influence of intoxicating alcoholic
4014 products or drugs;
4015 (C) any individual whom the person furnishing the alcoholic beverage knew or should
4016 have known from the circumstances was under the influence of intoxicating alcoholic
4017 beverages or products or drugs; or
4018 (D) any individual who is a known interdicted person; and
4019 (iii) the injury or death described in Subsection (1)(a) results from the intoxication of
4020 the individual who is provided the alcoholic beverage.
4021 (2) (a) A person 21 years of age or older who is described in Subsection (2)(b) is liable
4022 for:
4023 (i) any and all injury and damage, except punitive damages to:
4024 (A) any third person; or
4025 (B) the heir, as defined in Section 78B-3-105 , of that third person; or
4026 (ii) for the death of the third person.
4027 (b) A person is liable under Subsection (2)(a) if:
4028 (i) that person directly gives or otherwise provides an alcoholic beverage to an
4029 individual who the person knows or should have known is under the age of 21 years;
4030 (ii) those actions caused the intoxication of the individual provided the alcoholic
4031 beverage;
4032 (iii) the injury or death described in Subsection (2)(a) results from the intoxication of
4033 the individual who is provided the alcoholic beverage; and
4034 (iv) the person is not liable under Subsection (1), because the person did not directly
4035 give or provide the alcoholic beverage as part of the commercial sale, storage, service,
4036 manufacture, distribution, or consumption of alcoholic products.
4037 (3) Except for a violation of Subsection (2), an employer is liable for the actions of its
4038 employees in violation of this chapter.
4039 (4) A person who suffers an injury under Subsection (1) or (2) has a cause of action
4040 against the person who provided the alcoholic beverage in violation of Subsection (1) or (2).
4041 (5) If a person having rights or liabilities under this chapter dies, the rights or liabilities
4042 provided by this chapter survive to or against that person's estate.
4043 (6) The total amount that may be awarded to any person pursuant to a cause of action
4044 for injury and damage under this chapter that arises after [
4045 limited to [
4046 persons injured as a result of one occurrence is limited to [
4047 (7) An action based upon a cause of action under this chapter shall be commenced
4048 within two years after the date of the injury and damage.
4049 (8) (a) Nothing in this chapter precludes any cause of action or additional recovery
4050 against the person causing the injury.
4051 (b) Any cause of action or additional recovery against the person causing the injury and
4052 damage, which action is not brought under this chapter, is exempt from the damage cap in
4053 Subsection (6).
4054 (c) Any cause of action brought under this chapter is exempt from Sections 78B-5-817
4055 through 78B-5-823 .
4056 (9) This section does not apply to a business licensed under Chapter 10, Part 1, General
4057 Provisions, to sell beer at retail only for off-premise consumption.
4058 Section 44. Section 32A-14a-103 is amended to read:
4059 32A-14a-103. Employee protected in exercising judgment.
4060 (1) An employer may not sanction or terminate the employment of an employee of a
4061 restaurant, airport lounge, private club, resort, on-premise beer retailer, or any other
4062 establishment serving an alcoholic [
4063 exercised the employee's independent judgment to refuse to sell an alcoholic [
4064 beverage to [
4065 described in Subsection 32A-14a-102 (1).
4066 (2) [
4067 employee contrary to this section is considered to have discriminated against that employee and
4068 is subject to the conditions and penalties set forth in Title 34A, Chapter 5, Utah
4069 Antidiscrimination Act.
4070 Section 45. Study of penalties for violations related to minors.
4071 (1) As used in this section:
4072 (a) "Commission" means the Alcoholic Beverage Commission created in Section
4073 32A-1-106 .
4074 (b) "Violation related to a minor" means a violation under Title 32A, Alcoholic
4075 Beverage Control Act, that is, in whole or in part, based on a licensee, permittee, or an
4076 employee or agent of the licensee or permittee:
4077 (i) selling, serving, or otherwise furnishing an alcoholic product to a minor;
4078 (ii) purchasing or otherwise obtaining an alcoholic product for a minor;
4079 (iii) permitting a minor to consume an alcoholic product;
4080 (iv) permitting a minor to gain admittance to an area into which a minor is not
4081 permitted under Title 32A, Alcoholic Beverage Control Act; or
4082 (v) offering or providing employment to a minor that under Title 32A, Alcoholic
4083 Beverage Control Act, may not be obtained by a minor.
4084 (2) (a) The commission shall review the penalties imposed by the commission for a
4085 violation related to a minor beginning on January 1, 2005 and ending December 31, 2008.
4086 (b) The commission shall address in its review the following:
4087 (i) trends, if any, in the severity of the penalties;
4088 (ii) circumstances affecting the penalties imposed;
4089 (iii) the purpose and effectiveness of the penalties;
4090 (iv) other issues as determined by the commission; and
4091 (v) whether the commission should recommend legislative action related to the
4092 imposition of a penalty.
4093 (c) The commission shall report its findings and recommendations described in
4094 Subsection (2)(b) to the Business and Labor Interim Committee on or before the October 2009
4095 interim meeting.
4096 Section 46. Effective date.
4097 This bill takes effect on May 12, 2009 except the amendments in this bill to the
4098 following take effect on January 1, 2010:
4099 (1) Section 32A-4-102 ;
4100 (2) Section 32A-4-202 ;
4101 (3) Section 32A-4-303 ;
4102 (4) Section 32A-4-402 ;
4103 (5) Section 32A-5-102 ;
4104 (6) Section 32A-10-202 ; and
4105 (7) Section 32A-14a-102 .
Legislative Review Note
as of 2-20-09 1:38 PM