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S.B. 314

             1     

ALCOHOLIC BEVERAGE LICENSING

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: Gregory H. Hughes

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act and related provisions to address
             10      various issues concerning the regulation of alcoholic products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definition provisions;
             14          .    provides that certain retail licenses are exempt from limitations on the number of
             15      retail licenses that may be issued at any time;
             16          .    addresses the relationship between the number of alcohol-related enforcement
             17      officers and the issuance of licenses;
             18          .    modifies the calculation of the ratio of revenue from food as compared to revenue
             19      from alcoholic products;
             20          .    requires taverns to comply with electronic verification requirements for proof of
             21      age;
             22          .    provides for the governor to appoint the chair of the Alcoholic Beverage Control
             23      Commission;
             24          .    provides for the issuance of certificates of approval for out-of-state importers and
             25      suppliers of beer, heavy beer, and flavored malt beverages;
             26          .    provides for the commission with the approval of the governor and with the consent
             27      of the Senate to appoint the director of the Department of Alcoholic Beverage


             28      Control;
             29          .    addresses prohibited interests, relationships, and actions;
             30          .    creates the Alcoholic Beverage Control Act Enforcement Fund and directs how
             31      money in the fund is to be expended;
             32          .    consolidates language regarding warning signs required to be posted in retail
             33      settings, including event permits;
             34          .    addresses the size of containers of heavy beer that can be sold;
             35          .    modifies fees;
             36          .    permits the sale, offer for sale, or furnishing of an alcoholic product by room service
             37      in other than a sealed container;
             38          .    prohibits consumption of an alcoholic product on licensed premises after 2 a.m.;
             39          .    removes existing restrictions on transferring licenses or locations of licenses and
             40      replaces the provisions with the Transfer of Retail License Act;
             41          .    changes the numbers used to determine the number of retail licenses that may be
             42      issued at any one time;
             43          .    modifies requirements related to the location in restaurants of dispensing, storage,
             44      and related instruments or equipment;
             45          .    modifies provisions related to dining club licenses;
             46          .    modifies hours of sale;
             47          .    addresses the limit on the number of airport lounge licenses;
             48          .    eliminates outdated language regarding grandfathered facilities for on-premise
             49      banquet licenses;
             50          .    enacts a new reception center license, including:
             51              .    addressing the commission's power to issue;
             52              .    addressing specific licensing requirements; and
             53              .    addressing specific operational requirements;
             54          .    enacts a new beer-only restaurant license, including:
             55              .    addressing the commission's power to issue;
             56              .    addressing specific licensing requirements; and
             57              .    addressing specific operational requirements;
             58          .    extends certain grandfathering for restaurant sublicenses;


             59          .    prohibits event permittees from selling, offering for sale, or furnishing an indefinite
             60      or unlimited number of alcoholic products during a set period for a fixed price;
             61          .    clarifies provisions related to the number of drinks a patron may have before them
             62      at an event;
             63          .    requires agreements to create exclusive sales territories for beer wholesaler
             64      licensees;
             65          .    addresses when meetings of the commission may be closed;
             66          .    requires alcohol training and education seminars to be taken in person;
             67          .    requires the governor to comply with certain requirements under the Budgetary
             68      Procedures Act; and
             69          .    makes technical and conforming amendments.
             70      Money Appropriated in this Bill:
             71          None
             72      Other Special Clauses:
             73          This bill provides an effective date.
             74      Utah Code Sections Affected:
             75      AMENDS:
             76          32B-1-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             77          32B-1-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             78          32B-1-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             79          32B-1-407 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             80          32B-1-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             81          32B-1-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             82          32B-2-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             83          32B-2-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             84          32B-2-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             85          32B-2-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             86          32B-2-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             87          32B-2-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             88          32B-2-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             89          32B-2-606 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             90          32B-4-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             91          32B-4-206 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             92          32B-4-208 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             93          32B-4-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             94          32B-4-420 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             95          32B-4-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             96          32B-5-301 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             97          32B-5-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             98          32B-5-307 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             99          32B-5-309 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             100          32B-6-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             101          32B-6-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             102          32B-6-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             103          32B-6-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             104          32B-6-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             105          32B-6-302 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             106          32B-6-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             107          32B-6-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             108          32B-6-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             109          32B-6-403 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             110          32B-6-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             111          32B-6-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             112          32B-6-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             113          32B-6-502 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             114          32B-6-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             115          32B-6-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             116          32B-6-603 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             117          32B-6-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             118          32B-6-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             119          32B-6-702 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             120          32B-6-703 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             121          32B-6-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             122          32B-6-706 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             123          32B-8-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             124          32B-8-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             125          32B-8-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             126          32B-8-401 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             127          32B-8-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             128          32B-9-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             129          32B-9-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             130          32B-9-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             131          32B-9-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             132          32B-10-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             133          32B-10-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             134          32B-10-403 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             135          32B-10-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             136          32B-10-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             137          32B-10-603 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             138          32B-11-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             139          32B-11-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             140          32B-11-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             141          32B-11-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             142          32B-11-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             143          32B-11-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             144          32B-11-608 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             145          32B-12-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             146          32B-12-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             147          32B-13-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             148          32B-13-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             149          32B-13-301 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             150          52-4-205, as last amended by Laws of Utah 2010, Chapters 35, 60, and 239
             151          62A-15-401 (Effective 07/01/11), as last amended by Laws of Utah 2010, Chapter 276


             152          63J-1-201, as last amended by Laws of Utah 2010, Chapter 415
             153          63J-1-602.2, as enacted by Laws of Utah 2010, Chapter 265 and last amended by
             154      Coordination Clause, Laws of Utah 2010, Chapter 265
             155      ENACTS:
             156          32B-1-206, Utah Code Annotated 1953
             157          32B-2-209, Utah Code Annotated 1953
             158          32B-2-305, Utah Code Annotated 1953
             159          32B-6-409, Utah Code Annotated 1953
             160          32B-6-801, Utah Code Annotated 1953
             161          32B-6-802, Utah Code Annotated 1953
             162          32B-6-803, Utah Code Annotated 1953
             163          32B-6-804, Utah Code Annotated 1953
             164          32B-6-805, Utah Code Annotated 1953
             165          32B-6-901, Utah Code Annotated 1953
             166          32B-6-902, Utah Code Annotated 1953
             167          32B-6-903, Utah Code Annotated 1953
             168          32B-6-904, Utah Code Annotated 1953
             169          32B-6-905, Utah Code Annotated 1953
             170          32B-8a-101, Utah Code Annotated 1953
             171          32B-8a-102, Utah Code Annotated 1953
             172          32B-8a-201, Utah Code Annotated 1953
             173          32B-8a-202, Utah Code Annotated 1953
             174          32B-8a-203, Utah Code Annotated 1953
             175          32B-8a-301, Utah Code Annotated 1953
             176          32B-8a-302, Utah Code Annotated 1953
             177          32B-8a-303, Utah Code Annotated 1953
             178          32B-8a-401, Utah Code Annotated 1953
             179          32B-8a-402, Utah Code Annotated 1953
             180          32B-8a-403, Utah Code Annotated 1953
             181          32B-8a-404, Utah Code Annotated 1953
             182          32B-8a-501, Utah Code Annotated 1953


             183          32B-8a-502, Utah Code Annotated 1953
             184      REPEALS:
             185          26-7-6 (Effective 07/01/11), as enacted by Coordination Clause, Laws of Utah 2010,
             186      Chapter 136
             187          32B-4-506 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             188          32B-4-507 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             189     
             190      Be it enacted by the Legislature of the state of Utah:
             191          Section 1. Section 32B-1-102 (Effective 07/01/11) is amended to read:
             192           32B-1-102 (Effective 07/01/11). Definitions.
             193          As used in this title:
             194          (1) "Airport lounge" means a business location:
             195          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             196          (b) that is located at an international airport with a United States Customs office on the
             197      premises of the international airport.
             198          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             199      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             200          (3) "Alcoholic beverage" means the following:
             201          (a) beer; or
             202          (b) liquor.
             203          (4) (a) "Alcoholic product" means a product that:
             204          (i) contains at least .5% of alcohol by volume; and
             205          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             206      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             207      in an amount equal to or greater than .5% of alcohol by volume.
             208          (b) "Alcoholic product" includes an alcoholic beverage.
             209          (c) "Alcoholic product" does not include any of the following common items that
             210      otherwise come within the definition of an alcoholic product:
             211          (i) except as provided in Subsection (4)(d), an extract;
             212          (ii) vinegar;
             213          (iii) cider;


             214          (iv) essence;
             215          (v) tincture;
             216          (vi) food preparation; or
             217          (vii) an over-the-counter medicine.
             218          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             219      when it is used as a flavoring in the manufacturing of an alcoholic product.
             220          (5) "Alcohol training and education seminar" means a seminar that is:
             221          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             222          (b) described in Section 62A-15-401 .
             223          (6) "Banquet" means an event:
             224          (a) that is held at one or more designated locations approved by the commission in or
             225      on the premises of a:
             226          (i) hotel;
             227          (ii) resort facility;
             228          (iii) sports center; or
             229          (iv) convention center;
             230          (b) for which there is a contract:
             231          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             232      and
             233          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             234      provide an alcoholic product at the event; and
             235          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             236          (7) (a) [Subject to Subsection (7)(b),] "Bar" means a [counter or similar] surface or
             237      structure:
             238          (i) at which an alcoholic product is:
             239          (A) stored; or
             240          (B) dispensed; or
             241          (ii) from which an alcoholic product is served.
             242          (b) [For purposes of a full-service restaurant license or a limited-service restaurant
             243      license,] "Bar structure" means a surface or structure on [the premises of a restaurant] a
             244      licensed premises if on or at any place of the surface or structure an alcoholic product is:


             245          (i) stored; or
             246          (ii) dispensed.
             247          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             248          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             249      volume or 3.2% by weight; and
             250          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             251          (b) "Beer" may or may not contain hops or other vegetable products.
             252          (c) "Beer" includes a product that:
             253          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             254          (ii) is referred to as:
             255          (A) beer;
             256          (B) ale;
             257          (C) porter;
             258          (D) stout;
             259          (E) lager; or
             260          (F) a malt or malted beverage.
             261          (d) "Beer" does not include a flavored malt beverage.
             262          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             263      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             264          [(9)] (10) "Beer retailer" means a business:
             265          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             266      whether for consumption on or off the business premises; and
             267          (b) to whom a license is issued:
             268          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             269      Beer Retailer Local Authority; or
             270          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             271      and Chapter 6, Part 7, On-premise Beer Retailer License.
             272          [(10)] (11) "Beer wholesaling license" means a license:
             273          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             274          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             275      retail licensees or off-premise beer retailers.


             276          [(11)] (12) "Billboard" means a public display used to advertise, including:
             277          (a) a light device;
             278          (b) a painting;
             279          (c) a drawing;
             280          (d) a poster;
             281          (e) a sign;
             282          (f) a signboard; or
             283          (g) a scoreboard.
             284          [(12)] (13) "Brewer" means a person engaged in manufacturing:
             285          (a) beer;
             286          (b) heavy beer; or
             287          (c) a flavored malt beverage.
             288          [(13)] (14) "Brewery manufacturing license" means a license issued in accordance with
             289      Chapter 11, Part 5, Brewery Manufacturing License.
             290          [(14)] (15) "Certificate of approval" means a certificate of approval obtained from the
             291      department under [Subsection] Section 32B-11-201 [(4)].
             292          [(15)] (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle
             293      provided by a bus company to a group of persons pursuant to a common purpose:
             294          (a) under a single contract;
             295          (b) at a fixed charge in accordance with the bus company's tariff; and
             296          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             297      motor vehicle, and a driver to travel together to one or more specified destinations.
             298          [(16)] (17) "Church" means a building:
             299          (a) set apart for worship;
             300          (b) in which religious services are held;
             301          (c) with which clergy is associated; and
             302          (d) that is tax exempt under the laws of this state.
             303          [(17)] (18) (a) "Club license" means a license issued in accordance with Chapter 5,
             304      Retail License Act, and Chapter 6, Part 4, Club License.
             305          (b) "Club license" includes:
             306          (i) a dining club license;


             307          (ii) an equity club license;
             308          (iii) a fraternal club license; or
             309          (iv) a social club license.
             310          [(18)] (19) "Commission" means the Alcoholic Beverage Control Commission created
             311      in Section 32B-2-201 .
             312          [(19)] (20) "Commissioner" means a member of the commission.
             313          [(20)] (21) "Community location" means:
             314          (a) a public or private school;
             315          (b) a church;
             316          (c) a public library;
             317          (d) a public playground; or
             318          (e) a public park.
             319          [(21)] (22) "Community location governing authority" means:
             320          (a) the governing body of the community location; or
             321          (b) if the commission does not know who is the governing body of a community
             322      location, a person who appears to the commission to have been given on behalf of the
             323      community location the authority to prohibit an activity at the community location.
             324          (23) "Container" means a receptacle that contains an alcoholic product, including:
             325          (a) a bottle;
             326          (b) a vessel; or
             327          (c) a similar item.
             328          [(22)] (24) "Convention center" means a facility that is:
             329          (a) in total at least 30,000 square feet; and
             330          (b) otherwise defined as a "convention center" by the commission by rule.
             331          [(23) For purposes of a full-service restaurant license or limited-service restaurant
             332      license:]
             333          [(a) subject to Subsection (23)(b),]
             334          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             335      dining area of a [restaurant] licensed premises where seating is provided to a patron for service
             336      of food[; and].
             337          (b) "Counter" does not include a surface or structure if on or at any point of the surface


             338      or structure an alcoholic product is:
             339          (i) stored; or
             340          (ii) dispensed.
             341          [(24)] (26) "Department" means the Department of Alcoholic Beverage Control created
             342      in Section 32B-2-203 .
             343          [(25)] (27) "Department compliance officer" means an individual who is:
             344          (a) an auditor or inspector; and
             345          (b) employed by the department.
             346          [(26)] (28) "Department sample" means liquor that is placed in the possession of the
             347      department for testing, analysis, and sampling.
             348          [(27)] (29) "Dining club license" means a license issued in accordance with Chapter 5,
             349      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             350      as a dining club license.
             351          [(28)] (30) "Director," unless the context requires otherwise, means the director of the
             352      department.
             353          [(29)] (31) "Disciplinary proceeding" means an adjudicative proceeding permitted
             354      under this title:
             355          (a) against a person subject to administrative action; and
             356          (b) that is brought on the basis of a violation of this title.
             357          [(30) For purposes of a full-service restaurant license or a limited-service restaurant
             358      license, "dispense" means:]
             359          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             360          [(a)] (i) drawing of an alcoholic product:
             361          [(i)] (A) from an area where it is stored; or
             362          [(ii)] (B) as provided in Subsection 32B-6-205 (12)(b)(ii) [or], 32B-6-305 (12)(b)(ii),
             363      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             364          [(b)] (ii) using the alcoholic product described in Subsection [(29)(a)] (32)(a)(i) on the
             365      premises of the [restaurant] licensed premises to mix or prepare an alcoholic product to be
             366      furnished to a patron of the [restaurant] retail licensee.
             367          (b) The definition of "dispense" in this Subsection (32) applies only to:
             368          (i) a full-service restaurant license;


             369          (ii) a limited-service restaurant license;
             370          (iii) a reception center license; and
             371          (iv) a beer-only restaurant license.
             372          [(31)] (33) "Distillery manufacturing license" means a license issued in accordance
             373      with Chapter 11, Part 4, Distillery Manufacturing License.
             374          [(32)] (34) "Distressed merchandise" means an alcoholic product in the possession of
             375      the department that is saleable, but for some reason is unappealing to the public.
             376          [(33)] (35) "Educational facility" includes:
             377          (a) a nursery school;
             378          (b) an infant day care center; and
             379          (c) a trade and technical school.
             380          [(34)] (36) "Equity club license" means a license issued in accordance with Chapter 5,
             381      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             382      as an equity club license.
             383          [(35)] (37) "Event permit" means:
             384          (a) a single event permit; or
             385          (b) a temporary beer event permit.
             386          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             387      considered in determining the total number of a retail license that the commission may issue at
             388      any time.
             389          [(36)] (39) (a) "Flavored malt beverage" means a beverage:
             390          (i) that contains at least .5% alcohol by volume;
             391          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             392      generally recognized as a traditional process in the production of a beer as described in 27
             393      C.F.R. Sec. 25.55;
             394          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             395      extract; and
             396          (iv) (A) for which the producer is required to file a formula for approval with the
             397      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             398          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             399          (b) "Flavored malt beverage" is considered liquor for purposes of this title.


             400          [(37)] (40) "Fraternal club license" means a license issued in accordance with Chapter
             401      5, Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the
             402      commission as a fraternal club license.
             403          [(38)] (41) "Full-service restaurant license" means a license issued in accordance with
             404      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             405          [(39)] (42) (a) "Furnish" means by any means to provide with, supply, or give an
             406      individual an alcoholic product, by sale or otherwise.
             407          (b) "Furnish" includes to:
             408          (i) serve;
             409          (ii) deliver; or
             410          (iii) otherwise make available.
             411          [(40)] (43) "Guest" means an individual who meets the requirements of Subsection
             412      32B-6-407 (9).
             413          [(41)] (44) "Health care practitioner" means:
             414          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             415          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             416          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             417          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical [Therapist]
             418      Therapy Practice Act;
             419          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             420      Nurse Practice Act;
             421          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             422      Practice Act;
             423          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             424      Therapy Practice Act;
             425          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             426          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             427      Professional Practice Act;
             428          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             429          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             430      Practice Act;


             431          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             432      Hygienist Practice Act; and
             433          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             434          [(42)] (45) (a) "Heavy beer" means a product that:
             435          (i) contains more than 4% alcohol by volume; and
             436          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             437          (b) "Heavy beer" is considered liquor for the purposes of this title.
             438          [(43)] (46) "Hotel" is as defined by the commission by rule.
             439          [(44)] (47) "Identification card" means an identification card issued under Title 53,
             440      Chapter 3, Part 8, Identification Card Act.
             441          [(45)] (48) "Industry representative" means an individual who is compensated by
             442      salary, commission, or other means for representing and selling an alcoholic product of a
             443      manufacturer, supplier, or importer of liquor.
             444          [(46)] (49) "Industry representative sample" means liquor that is placed in the
             445      possession of the department for testing, analysis, and sampling by a local industry
             446      representative on the premises of the department to educate the local industry representative of
             447      the quality and characteristics of the product.
             448          [(47)] (50) "Interdicted person" means a person to whom the sale, offer for sale, or
             449      furnishing of an alcoholic product is prohibited by:
             450          (a) law; or
             451          (b) court order.
             452          [(48)] (51) "Intoxicated" means that a person:
             453          (a) is significantly impaired as to the person's mental or physical functions as a result of
             454      the use of:
             455          (i) an alcoholic product;
             456          (ii) a controlled substance;
             457          (iii) a substance having the property of releasing toxic vapors; or
             458          (iv) a combination of Subsections [(48)] (51)(a)(i) through (iii); and
             459          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             460      signs produced by the over consumption of an alcoholic product.
             461          [(49)] (52) "Investigator" means an individual who is:


             462          (a) a department compliance officer; or
             463          (b) a nondepartment enforcement officer.
             464          [(50)] (53) "Invitee" is as defined in Section 32B-8-102 .
             465          [(51)] (54) "License" means:
             466          (a) a retail license;
             467          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             468      Licenses Act;
             469          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             470      or
             471          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             472          [(52)] (55) "Licensee" means a person who holds a license.
             473          [(53)] (56) "Limited-service restaurant license" means a license issued in accordance
             474      with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             475          [(54)] (57) "Limousine" means a motor vehicle licensed by the state or a local
             476      authority, other than a bus or taxicab:
             477          (a) in which the driver and a passenger are separated by a partition, glass, or other
             478      barrier;
             479          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             480      accordance with the business entity's tariff; and
             481          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             482      to travel to one or more specified destinations.
             483          [(55)] (58) (a) (i) "Liquor" means a liquid that:
             484          (A) is:
             485          (I) alcohol;
             486          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             487          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             488          (IV) other drink or drinkable liquid; and
             489          (B) (I) contains at least .5% alcohol by volume; and
             490          (II) is suitable to use for beverage purposes.
             491          (ii) "Liquor" includes:
             492          (A) heavy beer;


             493          (B) wine; and
             494          (C) a flavored malt beverage.
             495          (b) "Liquor" does not include beer.
             496          [(56)] (59) "Liquor Control Fund" means the enterprise fund created by Section
             497      32B-2-301 .
             498          [(57)] (60) "Liquor warehousing license" means a license that is issued:
             499          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             500          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             501      storage, sale, or distribution of liquor regardless of amount.
             502          [(58)] (61) "Local authority" means:
             503          (a) for premises that are located in an unincorporated area of a county, the governing
             504      body of a county; or
             505          (b) for premises that are located in an incorporated city or a town, the governing body
             506      of the city or town.
             507          [(59)] (62) "Lounge or bar area" is as defined by rule made by the commission.
             508          (63) "Opaque" means impenetrable to sight.
             509          [(60)] (64) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             510      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             511      others.
             512          [(61)] (65) "Member" means an individual who, after paying regular dues, has full
             513      privileges in an equity club licensee or fraternal club licensee.
             514          [(62)] (66) (a) "Military installation" means a base, air field, camp, post, station, yard,
             515      center, or homeport facility for a ship:
             516          (i) (A) under the control of the United States Department of Defense; or
             517          (B) of the National Guard;
             518          (ii) that is located within the state; and
             519          (iii) including a leased facility.
             520          (b) "Military installation" does not include a facility used primarily for:
             521          (i) civil works;
             522          (ii) a rivers and harbors project; or
             523          (iii) a flood control project.


             524          [(63)] (67) "Minor" means an individual under the age of 21 years.
             525          [(64)] (68) "Nondepartment enforcement agency" means an agency that:
             526          (a) (i) is a state agency other than the department; or
             527          (ii) is an agency of a county, city, or town; and
             528          (b) has a responsibility to enforce one or more provisions of this title.
             529          [(65)] (69) "Nondepartment enforcement officer" means an individual who is:
             530          (a) a peace officer, examiner, or investigator; and
             531          (b) employed by a nondepartment enforcement agency.
             532          [(66)] (70) (a) "Off-premise beer retailer" means a beer retailer who is:
             533          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             534      Authority; and
             535          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             536      premises.
             537          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             538          [(67)] (71) "On-premise banquet license" means a license issued in accordance with
             539      Chapter 5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             540          [(68)] (72) "On-premise beer retailer" means a beer retailer who is:
             541          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             542      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             543      Retailer License; and
             544          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             545      premises[,]:
             546          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
             547      premises[.]; and
             548          [(69) "Package" means any of the following containing an alcoholic product:]
             549          [(a) a container;]
             550          [(b) a bottle;]
             551          [(c) a vessel; or]
             552          [(d) other receptacle.]
             553          (ii) on and after March 1, 2012, operating:
             554          (A) as a tavern; or


             555          (B) in a manner that meets the recreational amenity requirements of Subsection
             556      32B-6-703 (2)(e).
             557          [(70)] (73) "Package agency" means a retail liquor location operated:
             558          (a) under an agreement with the department; and
             559          (b) by a person:
             560          (i) other than the state; and
             561          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             562      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             563          [(71)] (74) "Package agent" means a person who holds a package agency.
             564          [(72)] (75) "Patron" means an individual to whom food, beverages, or services are sold,
             565      offered for sale, or furnished, or who consumes an alcoholic product including:
             566          (a) a customer;
             567          (b) a member;
             568          (c) a guest;
             569          (d) an attendee of a banquet or event;
             570          (e) an individual who receives room service;
             571          (f) a resident of a resort;
             572          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             573      or
             574          (h) an invitee.
             575          [(73)] (76) "Permittee" means a person issued a permit under:
             576          (a) Chapter 9, Event Permit Act; or
             577          (b) Chapter 10, Special Use Permit Act.
             578          [(74)] (77) "Person subject to administrative action" means:
             579          (a) a licensee;
             580          (b) a permittee;
             581          (c) a manufacturer;
             582          (d) a supplier;
             583          (e) an importer;
             584          (f) [an out-of-state brewer] one of the following holding a certificate of approval[; or]:
             585          (i) an out-of-state brewer;


             586          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             587          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             588          (g) staff of:
             589          (i) a person listed in Subsections [(74)] (77)(a) through [(g)] (f); or
             590          (ii) a package agent.
             591          [(75)] (78) "Premises" means a building, enclosure, or room used in connection with
             592      the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
             593      product, unless otherwise defined in this title or rules made by the commission.
             594          [(76)] (79) "Prescription" means an order issued by a health care practitioner when:
             595          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             596      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             597          (b) the order is made in the course of that health care practitioner's professional
             598      practice; and
             599          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             600          [(77)] (80) (a) "Private event" means a specific social, business, or recreational event:
             601          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             602      group; and
             603          (ii) that is limited in attendance to people who are specifically designated and their
             604      guests.
             605          (b) "Private event" does not include an event to which the general public is invited,
             606      whether for an admission fee or not.
             607          [(78)] (81) (a) "Proof of age" means:
             608          (i) an identification card;
             609          (ii) an identification that:
             610          (A) is substantially similar to an identification card;
             611          (B) is issued in accordance with the laws of a state other than Utah in which the
             612      identification is issued;
             613          (C) includes date of birth; and
             614          (D) has a picture affixed;
             615          (iii) a valid driver license certificate that:
             616          (A) includes date of birth;


             617          (B) has a picture affixed; and
             618          (C) is issued:
             619          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             620          (II) in accordance with the laws of the state in which it is issued;
             621          (iv) a military identification card that:
             622          (A) includes date of birth; and
             623          (B) has a picture affixed; or
             624          (v) a valid passport.
             625          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             626      Section 53-3-207 .
             627          [(79)] (82) (a) "Public building" means a building or permanent structure that is:
             628          (i) owned or leased by:
             629          (A) the state; or
             630          (B) a local government entity; and
             631          (ii) used for:
             632          (A) public education;
             633          (B) transacting public business; or
             634          (C) regularly conducting government activities.
             635          (b) "Public building" does not include a building owned by the state or a local
             636      government entity when the building is used by a person, in whole or in part, for a proprietary
             637      function.
             638          [(80)] (83) "Public conveyance" means a conveyance to which the public or a portion
             639      of the public has access to and a right to use for transportation, including an airline, railroad,
             640      bus, boat, or other public conveyance.
             641          (84) "Reception center" means a business that:
             642          (a) operates facilities that are at least 5,000 square feet; and
             643          (b) has as its primary purpose the leasing of the facilities described in Subsection
             644      (84)(a) to a third party for the third party's event.
             645          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             646      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             647          [(81)] (86) (a) "Record" means information that is:


             648          (i) inscribed on a tangible medium; or
             649          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             650          (b) "Record" includes:
             651          (i) a book;
             652          (ii) a book of account;
             653          (iii) a paper;
             654          (iv) a contract;
             655          (v) an agreement;
             656          (vi) a document; or
             657          (vii) a recording in any medium.
             658          [(82)] (87) "Residence" means a person's principal place of abode within Utah.
             659          [(83)] (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             660          [(84)] (89) "Resort" is as defined in Section 32B-8-102 .
             661          [(85)] (90) "Resort facility" is as defined by the commission by rule.
             662          [(86)] (91) "Resort license" means a license issued in accordance with Chapter 5,
             663      Retail License Act, and Chapter 8, Resort License Act.
             664          [(87)] (92) "Restaurant" means a business location:
             665          (a) at which a variety of foods are prepared;
             666          (b) at which complete meals are served to the general public; and
             667          (c) that is engaged primarily in serving meals to the general public.
             668          [(88)] (93) "Retail license" means one of the following licenses issued under this title:
             669          (a) a full-service restaurant license;
             670          (b) a limited-service restaurant license;
             671          (c) a club license;
             672          (d) an airport lounge license;
             673          (e) an on-premise banquet license; [or]
             674          (f) an on-premise beer license[.];
             675          (g) a reception center license; or
             676          (h) a beer-only restaurant license.
             677          [(89)] (94) "Room service" means furnishing an alcoholic product to a person in a
             678      guest room of a:


             679          (a) hotel; or
             680          (b) resort facility.
             681          [(90)] (95) "Serve" means to place an alcoholic product before an individual.
             682          [(91)] (96) (a) "School" means a building used primarily for the general education of
             683      minors.
             684          (b) "School" does not include an educational facility.
             685          [(92)] (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,
             686      for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
             687      ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
             688      done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
             689      the rules made by the commission.
             690          [(93)] (98) "Sexually oriented entertainer" means a person who while in a state of
             691      seminudity appears at or performs:
             692          (a) for the entertainment of one or more patrons;
             693          (b) on the premises of:
             694          (i) a social club licensee; or
             695          (ii) a tavern;
             696          (c) on behalf of or at the request of the licensee described in Subsection [(93)] (98)(b);
             697          (d) on a contractual or voluntary basis; and
             698          (e) whether or not the person is designated as:
             699          (i) an employee;
             700          (ii) an independent contractor;
             701          (iii) an agent of the licensee; or
             702          (iv) a different type of classification.
             703          [(94)] (99) "Single event permit" means a permit issued in accordance with Chapter 9,
             704      Part 3, Single Event Permit.
             705          [(95)] (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             706      of beer, heavy beer, and flavored malt beverages per year.
             707          [(96)] (101) "Social club license" means a license issued in accordance with Chapter 5,
             708      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             709      as a social club license.


             710          [(97)] (102) "Special use permit" means a permit issued in accordance with Chapter 10,
             711      Special Use Permit Act.
             712          [(98)] (103) (a) "Spirituous liquor" means liquor that is distilled.
             713          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             714      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             715          [(99)] (104) "Sports center" is as defined by the commission by rule.
             716          [(100)] (105) (a) "Staff" means an individual who engages in activity governed by this
             717      title:
             718          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             719      holder;
             720          (ii) at the request of the business, including a package agent, licensee, permittee, or
             721      certificate holder; or
             722          (iii) under the authority of the business, including a package agent, licensee, permittee,
             723      or certificate holder.
             724          (b) "Staff" includes:
             725          (i) an officer;
             726          (ii) a director;
             727          (iii) an employee;
             728          (iv) personnel management;
             729          (v) an agent of the licensee, including a managing agent;
             730          (vi) an operator; or
             731          (vii) a representative.
             732          [(101)] (106) "State of nudity" means:
             733          (a) the appearance of:
             734          (i) the nipple or areola of a female human breast;
             735          (ii) a human genital;
             736          (iii) a human pubic area; or
             737          (iv) a human anus; or
             738          (b) a state of dress that fails to opaquely cover:
             739          (i) the nipple or areola of a female human breast;
             740          (ii) a human genital;


             741          (iii) a human pubic area; or
             742          (iv) a human anus.
             743          [(102)] (107) "State of seminudity" means a state of dress in which opaque clothing
             744      covers no more than:
             745          (a) the nipple and areola of the female human breast in a shape and color other than the
             746      natural shape and color of the nipple and areola; and
             747          (b) the human genitals, pubic area, and anus:
             748          (i) with no less than the following at its widest point:
             749          (A) four inches coverage width in the front of the human body; and
             750          (B) five inches coverage width in the back of the human body; and
             751          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             752          [(103)] (108) (a) "State store" means a facility for the sale of packaged liquor:
             753          (i) located on premises owned or leased by the state; and
             754          (ii) operated by a state employee.
             755          (b) "State store" does not include:
             756          (i) a package agency;
             757          (ii) a licensee; or
             758          (iii) a permittee.
             759          [(104) For purposes of a full-service restaurant license or a limited-service restaurant
             760      license:]
             761          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
             762      an alcoholic product.
             763          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             764      person draws to prepare an alcoholic product to be furnished to a patron [of the restaurant],
             765      except as provided in Subsection 32B-6-205 (12)(b)(ii) [or], 32B-6-305 (12)(b)(ii),
             766      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii).
             767          [(105)] (110) "Sublicense" is as defined in Section 32B-8-102 .
             768          [(106)] (111) "Supplier" means a person who sells an alcoholic product to the
             769      department.
             770          [(107)] (112) "Tavern" means an on-premise beer retailer who is:
             771          (a) issued a license by the commission in accordance with Chapter 5, Retail License


             772      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             773          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             774      On-premise Beer Retailer License.
             775          [(108)] (113) "Temporary beer event permit" means a permit issued in accordance with
             776      Chapter 9, Part 4, Temporary Beer Event Permit.
             777          [(109)] (114) "Temporary domicile" means the principal place of abode within Utah of
             778      a person who does not have a present intention to continue residency within Utah permanently
             779      or indefinitely.
             780          (115) "Translucent" means a substance that allows light to pass through, but does not
             781      allow an object or person to be seen through the substance.
             782          [(110)] (116) "Unsaleable liquor merchandise" means a [package] container that:
             783          (a) is unsaleable because the [package] container is:
             784          (i) unlabeled;
             785          (ii) leaky;
             786          (iii) damaged;
             787          (iv) difficult to open; or
             788          (v) partly filled;
             789          (b) (i) has faded labels or defective caps or corks;
             790          (ii) has contents that are:
             791          (A) cloudy;
             792          (B) spoiled; or
             793          (C) chemically determined to be impure; or
             794          (iii) contains:
             795          (A) sediment; or
             796          (B) a foreign substance; or
             797          (c) is otherwise considered by the department as unfit for sale.
             798          [(111)] (117) (a) "Wine" means an alcoholic product obtained by the fermentation of
             799      the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
             800      not another ingredient is added.
             801          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             802      in this title.


             803          [(112)] (118) "Winery manufacturing license" means a license issued in accordance
             804      with Chapter 11, Part 3, Winery Manufacturing License.
             805          Section 2. Section 32B-1-201 (Effective 07/01/11) is amended to read:
             806           32B-1-201 (Effective 07/01/11). Restrictions on number of retail licenses that may
             807      be issued -- Determining population -- Exempt licenses.
             808          (1) As used in this section:
             809          (a) "Alcohol-related law enforcement officer" means a law enforcement officer
             810      employed by the Department of Public Safety that has as a primary responsibility for:
             811          (i) the enforcement of this title; or
             812          (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
             813      Reckless Driving.
             814          (b) "Enforcement ratio" is the number calculated as follows:
             815          (i) determine the quotient equal to the total number of quota retail licenses available
             816      divided by the total number of alcohol-related law enforcement officers; and
             817          (ii) round the number determined in accordance with Subsection (1)(b)(ii) up to the
             818      nearest whole number.
             819          (c) "Quota retail license" means:
             820          (i) a full-service restaurant license;
             821          (ii) a limited-service restaurant license;
             822          (iii) a club license;
             823          (iv) an on-premise banquet license;
             824          (v) an on-premise beer retailer operating as a tavern; and
             825          (vi) a reception center license.
             826          (d) "Total number of alcohol-related law enforcement officers" means the total number
             827      of alcohol-related law enforcement officers as of a specified date as certified by the Department
             828      of Public Safety to the department.
             829          (e) "Total number of quota retail licenses available" means the number calculated by:
             830          (i) determining as of a specified date for each quota retail license the number of
             831      licenses that the commission may not exceed calculated by dividing the population of the state
             832      by the number specified in the relevant provision for the quota retail license; and
             833          (ii) adding together the numbers determined under Subsection (1)(d)(i).


             834          (2) (a) Beginning on July 1, 2012, the department shall annually determine the
             835      enforcement ratio as of July 1 of that year.
             836          (b) If the enforcement ratio is greater than 56, the commission may not issue a quota
             837      retail license for the 12-month period beginning on the July 1 for which the enforcement ratio
             838      is greater than 52.
             839          (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
             840      during the 12-month period described in Subsection (2)(b) beginning on the day on which a
             841      sufficient number of alcohol-related law enforcement officers are employed so that if the
             842      enforcement ratio is calculated, the enforcement ratio would be equal to or less than 56.
             843          (3) For purposes of determining the number of state stores that the commission may
             844      establish or the number of package agencies or retail licenses that the commission may issue,
             845      the commission shall determine population by:
             846          [(1)] (a) the most recent United States decennial or special census; or
             847          [(2)] (b) another population determination made by the United States or state
             848      governments.
             849          (4) The commission may not consider a retail license that meets the following
             850      conditions in determining the total number of licenses available for that type of retail license
             851      that the commission may issue at any time:
             852          (a) the retail license was issued to a club licensee designated as a dining club as of July
             853      1, 2011; and
             854          (b) the dining club license is converted to another type of retail license in accordance
             855      with Section 32B-6-709 .
             856          Section 3. Section 32B-1-206 is enacted to read:
             857          32B-1-206. Calculation of ratio of gross receipts of food to alcoholic product.
             858          In calculating the annual gross receipts of a retail license or sublicense for purposes of
             859      determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food
             860      or an alcoholic product, a retail licensee may not include in the calculation the money from the
             861      sale of a bottle of wine by the retail licensee or under a sublicense that is in excess of $250.
             862          Section 4. Section 32B-1-402 (Effective 07/01/11) is amended to read:
             863           32B-1-402 (Effective 07/01/11). Definitions.
             864          As used in this part:


             865          [(1) "Applicable licensee" means the following:]
             866          [(a) a dining club licensee; or]
             867          [(b) a social club licensee.]
             868          [(2)] (1) "Authorized person" means a person authorized by law to sell or otherwise
             869      handle an alcoholic product.
             870          [(3)] (2) "Restricted area" means a place where an alcoholic product is sold or
             871      consumed, but where under this title a minor is not permitted.
             872          [(4)] (3) "Statement of age" means a statement signed under Section 32B-1-405
             873      verifying the age of the person signing the statement.
             874          Section 5. Section 32B-1-407 (Effective 07/01/11) is amended to read:
             875           32B-1-407 (Effective 07/01/11). Verification of proof of age by applicable
             876      licensees.
             877          (1) As used in this section, "applicable licensee" means:
             878          (a) a dining club;
             879          (b) a social club; or
             880          (c) a tavern.
             881          [(1)] (2) Notwithstanding any other provision of this part, an applicable licensee shall
             882      require that an authorized person [under] for the applicable licensee verify proof of age as
             883      provided in this section.
             884          [(2)] (3) An authorized person is required to verify proof of age under this section
             885      before an individual who appears to be 35 years of age or younger:
             886          (a) gains admittance to the premises of a social club licensee or tavern; or
             887          (b) procures an alcoholic product on the premises of a dining club licensee.
             888          [(3)] (4) To comply with Subsection [(2)] (3), an authorized person shall:
             889          (a) request the individual present proof of age; and
             890          (b) (i) verify the validity of the proof of age electronically under the verification
             891      program created in Subsection [(4)] (5); or
             892          (ii) if the proof of age cannot be electronically verified as provided in Subsection [(3)]
             893      (4)(b)(i), request that the individual comply with a process established by the commission by
             894      rule.
             895          [(4)] (5) The commission shall establish by rule an electronic verification program that


             896      includes the following:
             897          (a) the specifications for the technology used by the applicable licensee to
             898      electronically verify proof of age, including that the technology display to the person described
             899      in Subsection [(1)] (2) no more than the following for the individual who presents the proof of
             900      age:
             901          (i) the name;
             902          (ii) the age;
             903          (iii) the number assigned to the individual's proof of age by the issuing authority;
             904          (iv) the birth date;
             905          (v) the gender; and
             906          (vi) the status and expiration date of the individual's proof of age; and
             907          (b) the security measures that must be used by an applicable licensee to ensure that
             908      information obtained under this section is:
             909          (i) used by the applicable licensee only for purposes of verifying proof of age in
             910      accordance with this section; and
             911          (ii) retained by the applicable licensee for seven days after the day on which the
             912      applicable licensee obtains the information.
             913          [(5)] (6) (a) An applicable licensee may not disclose information obtained under this
             914      section except as provided under this title.
             915          (b) Information obtained under this section is considered a record for any purpose
             916      under Chapter 5, Part 3, Retail Licensee Operational Requirements.
             917          Section 6. Section 32B-1-602 (Effective 07/01/11) is amended to read:
             918           32B-1-602 (Effective 07/01/11). Definitions.
             919          As used in this part:
             920          (1) "Malted beverage" means:
             921          (a) beer;
             922          (b) a flavored malt beverage; and
             923          (c) heavy beer.
             924          (2) "Packaging" means the outer packaging that is visible to a consumer such as a
             925      carton, case, or other wrapper of a [package] container.
             926          Section 7. Section 32B-1-605 (Effective 07/01/11) is amended to read:


             927           32B-1-605 (Effective 07/01/11). General procedure for approval.
             928          (1) To obtain approval of the label and packaging of a malted beverage, the
             929      manufacturer of the malted beverage shall submit an application to the department for
             930      approval.
             931          (2) The application described in Subsection (1) shall be on a form approved by the
             932      department and include the following:
             933          (a) a copy of a federal certificate of label approval from the Department of Treasury,
             934      Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
             935      approval;
             936          (b) a complete set of original labels for each size of [package] container of the malted
             937      beverage;
             938          (c) a description of the size of the [package] container on which a label will be placed;
             939          (d) a description of each type of [package] container of the malted beverage; and
             940          (e) a description of any packaging for the malted beverage.
             941          (3) The department may assess a reasonable fee for reviewing a label and packaging for
             942      approval.
             943          (4) (a) The department shall notify a manufacturer within 30 days after the day on
             944      which the manufacturer submits an application whether the label and packaging is approved or
             945      denied.
             946          (b) If the department determines that an unusual circumstance requires additional time,
             947      the department may extend the time period described in Subsection (4)(a).
             948          (5) A manufacturer shall obtain the approval of the department of a revision of a
             949      previously approved label and packaging before a malted beverage using the revised label and
             950      packaging may be distributed or sold in this state.
             951          (6) (a) The department may revoke a label and packaging previously approved upon a
             952      finding that the label and packaging is not in compliance with this title or rules of the
             953      commission.
             954          (b) The department shall notify the person who applies for the approval of a label and
             955      packaging at least five business days before the day on which a label and packaging approval is
             956      considered revoked.
             957          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written


             958      argument or evidence to the department on why the revocation should not occur.
             959          (7) A manufacturer that applies for approval of a label and packaging may appeal a
             960      denial or revocation of a label and packaging approval to the commission.
             961          Section 8. Section 32B-2-201 (Effective 07/01/11) is amended to read:
             962           32B-2-201 (Effective 07/01/11). Alcoholic Beverage Control Commission created.
             963          (1) There is created the "Alcoholic Beverage Control Commission." The commission is
             964      the governing board over the department.
             965          (2) (a) The commission is composed of five part-time commissioners appointed by the
             966      governor with the consent of the Senate.
             967          (b) No more than three commissioners may be of the same political party.
             968          (3) (a) Except as required by Subsection (3)(b), as terms of commissioners expire, the
             969      governor shall appoint each new commissioner or reappointed commissioner to a four-year
             970      term.
             971          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             972      time of appointment or reappointment, adjust the length of terms to ensure that the terms of no
             973      more than two commissioners expire in a fiscal year.
             974          (4) (a) When a vacancy occurs on the commission for any reason, the governor shall
             975      appoint a replacement for the unexpired term with the consent of the Senate.
             976          (b) Unless removed in accordance with Subsection (6), a commissioner shall remain on
             977      the commission after the expiration of a term until a successor is appointed by the governor,
             978      with the consent of the Senate.
             979          (5) A commissioner shall take the oath of office.
             980          (6) (a) The governor may remove a commissioner from the commission for cause after
             981      a public hearing conducted by:
             982          (i) the governor; or
             983          (ii) an impartial hearing examiner appointed by the governor to conduct the hearing.
             984          (b) At least 10 days before the hearing described in Subsection (6)(a), the governor
             985      shall provide the commissioner notice of:
             986          (i) the date, time, and place of the hearing; and
             987          (ii) the alleged grounds for the removal.
             988          (c) The commissioner shall have an opportunity to:


             989          (i) attend the hearing;
             990          (ii) present witnesses and other evidence; and
             991          (iii) confront and cross examine witnesses.
             992          (d) After a hearing under this Subsection (6):
             993          (i) the person conducting the hearing shall prepare written findings of fact and
             994      conclusions of law; and
             995          (ii) the governor shall serve a copy of the prepared findings and conclusions upon the
             996      commissioner.
             997          (e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing
             998      examiner shall issue a written recommendation to the governor in addition to complying with
             999      Subsection (6)(d).
             1000          (f) A commissioner has five days from the day on which the commissioner receives the
             1001      findings and conclusions described in Subsection (6)(d) to file written objections to the
             1002      recommendation before the governor issues a final order.
             1003          (g) The governor shall:
             1004          (i) issue the final order under this Subsection (6) in writing; and
             1005          (ii) serve the final order upon the commissioner.
             1006          (7) (a) A commissioner may not receive compensation or benefits for the
             1007      commissioner's service, but may receive per diem and expenses incurred in the performance of
             1008      the commissioner's official duties at the rates established by the Division of Finance under
             1009      Sections 63A-3-106 and 63A-3-107 .
             1010          (b) A commissioner may decline to receive per diem and expenses for the
             1011      commissioner's service.
             1012          [(8) (a) (i) The commission shall elect:]
             1013          [(A) one commissioner to serve as chair;]
             1014          (8) (a) The governor shall annually appoint the chair of the commission. A
             1015      commissioner serves as chair to the commission at the pleasure of the governor.
             1016          (b) The commission shall elect:
             1017          [(B)] (i) another commissioner to serve as vice chair; and
             1018          [(C)] (ii) other commission officers as the commission considers advisable.
             1019          [(ii)] (c) A commissioner elected under Subsection (8)(b) shall serve in the office to


             1020      which the commissioner is elected [under Subsection (8)(a)(i)] at the pleasure of the
             1021      commission.
             1022          [(b)] (9) (a) Each commissioner has equal voting rights on a commission matter when
             1023      in attendance at a commission meeting.
             1024          [(c)] (b) Three commissioners is a quorum for conducting commission business.
             1025          [(d)] (c) A majority vote of the quorum present at a meeting is required for the
             1026      commission to act.
             1027          [(9)] (10) (a) The commission shall meet at least monthly, but may hold other meetings
             1028      at times and places as scheduled by:
             1029          (i) the commission;
             1030          (ii) the chair; or
             1031          (iii) three commissioners upon filing a written request for a meeting with the chair.
             1032          (b) Notice of the time and place of a commission meeting shall be given to each
             1033      commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
             1034      Meetings Act. A commission meeting is open to the public, except for a commission meeting
             1035      or portion of a commission meeting that is closed by the commission as authorized by Sections
             1036      52-4-204 and 52-4-205 .
             1037          Section 9. Section 32B-2-202 (Effective 07/01/11) is amended to read:
             1038           32B-2-202 (Effective 07/01/11). Powers and duties of the commission.
             1039          (1) The commission shall:
             1040          (a) act as a general policymaking body on the subject of alcoholic product control;
             1041          (b) adopt and issue policies, rules, and procedures;
             1042          (c) set policy by written rules that establish criteria and procedures for:
             1043          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             1044      permit, or certificate of approval; and
             1045          (ii) determining the location of a state store, package agency, or retail licensee;
             1046          (d) decide within the limits, and under the conditions imposed by this title, the number
             1047      and location of state stores, package agencies, and retail licensees in the state;
             1048          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             1049      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             1050      consumption, manufacture, and distribution of an alcoholic product:


             1051          (i) a package agency;
             1052          (ii) a full-service restaurant license;
             1053          (iii) a limited-service restaurant license;
             1054          (iv) a club license;
             1055          (v) an airport lounge license;
             1056          (vi) an on-premise banquet license;
             1057          (vii) a resort license, under which four or more sublicenses may be included;
             1058          (viii) an on-premise beer retailer license;
             1059          (ix) a reception center license;
             1060          (x) a beer-only restaurant license;
             1061          [(ix)] (xi) a single event permit;
             1062          [(x)] (xii) a temporary beer event permit;
             1063          [(xi)] (xiii) a special use permit;
             1064          [(xii)] (xiv) a manufacturing license;
             1065          [(xiii)] (xv) a liquor warehousing license;
             1066          [(xiv)] (xvi) a beer wholesaling license; and
             1067          [(xv) an out-of-state brewer]
             1068          (xvii) one of the following that holds a certificate of approval[;]:
             1069          (A) an out-of-state brewer;
             1070          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
             1071          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
             1072          (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke one of the
             1073      following conditional licenses for the purchase, storage, sale, furnishing, consumption,
             1074      manufacture, and distribution of an alcoholic product:
             1075          (i) a conditional full-service restaurant license; or
             1076          (ii) a conditional limited-service restaurant license;
             1077          (g) prescribe the duties of the department in assisting the commission in issuing a
             1078      package agency, license, permit, or certificate of approval under this title;
             1079          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
             1080      in accordance with Section 63J-1-504 ;
             1081          (i) fix prices at which liquor is sold that are the same at all state stores, package


             1082      agencies, and retail licensees;
             1083          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
             1084      class, variety, or brand of liquor kept for sale by the department;
             1085          (k) (i) require the director to follow sound management principles; and
             1086          (ii) require periodic reporting from the director to ensure that:
             1087          (A) sound management principles are being followed; and
             1088          (B) policies established by the commission are being observed;
             1089          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
             1090      and matters submitted by the director to the commission; and
             1091          (ii) do the things necessary to support the department in properly performing the
             1092      department's duties;
             1093          (m) obtain temporarily and for special purposes the services of an expert or person
             1094      engaged in the practice of a profession, or a person who possesses a needed skill if:
             1095          (i) considered expedient; and
             1096          (ii) approved by the governor;
             1097          (n) prescribe the conduct, management, and equipment of premises upon which an
             1098      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
             1099          (o) make rules governing the credit terms of beer sales within the state to retail
             1100      licensees; and
             1101          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             1102      disciplinary action against a person subject to administrative action.
             1103          (2) The power of the commission to do the following is plenary, except as otherwise
             1104      provided by this title, and not subject to review:
             1105          (a) establish a state store;
             1106          (b) issue authority to act as a package agent or operate a package agency; and
             1107          (c) issue or deny a license, permit, or certificate of approval.
             1108          (3) If the commission is authorized or required to make a rule under this title, the
             1109      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             1110      Rulemaking Act.
             1111          Section 10. Section 32B-2-205 (Effective 07/01/11) is amended to read:
             1112           32B-2-205 (Effective 07/01/11). Director of alcoholic beverage control.


             1113          (1) (a) The commission by a vote of four of the five commissioners, [and] with the
             1114      approval of the governor, and with the consent of the Senate, shall appoint a director of
             1115      alcoholic beverage control who is the administrative head of the department.
             1116          (b) The director serves at the pleasure of the commission, except that the director may
             1117      only be removed from office by a vote of four commissioners.
             1118          (c) The director may not be a commissioner.
             1119          (d) The director shall:
             1120          (i) be qualified in administration;
             1121          (ii) be knowledgeable by experience and training in the field of business management;
             1122      and
             1123          (iii) possess any other qualification prescribed by the commission.
             1124          (2) The governor shall establish the director's compensation within the salary range
             1125      fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             1126          (3) The director shall:
             1127          (a) carry out the policies of the commission;
             1128          (b) carry out the policies of the department;
             1129          (c) fully inform the commission of the operations and administrative activities of the
             1130      department; and
             1131          (d) assist the commission in the proper discharge of the commission's duties.
             1132          Section 11. Section 32B-2-209 is enacted to read:
             1133          32B-2-209. Prohibited interests, relationships, and actions.
             1134          (1) As used in this section, "immediate family" means an individual's:
             1135          (a) spouse; or
             1136          (b) child who is younger than 18 years of age.
             1137          (2) In addition to being subject to Title 67, Chapter 16, Utah Public Officers' and
             1138      Employees' Ethics Act, an individual who is a commissioner, the director, or a department
             1139      employee may not:
             1140          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             1141      than a mutual fund, in a person who applies for or holds a package agency, license, permit, or
             1142      certificate under this title;
             1143          (b) otherwise have a conflict of interest with a person who applies for or holds a


             1144      package agency, license, permit, or certificate under this title;
             1145          (c) have an office, position, or relationship, or be engaged in a business or avocation
             1146      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             1147      office or employment;
             1148          (d) have a direct business relationship with a person subject to administrative action
             1149      under this title;
             1150          (e) accept a gift, gratuity, emolument, or employment from:
             1151          (i) a person who applies for or holds a package agency, license, permit, or certificate
             1152      under this title; or
             1153          (ii) an officer, agent, or employee of a person who applies for or holds a package
             1154      agency, license, permit, or certificate under this title, except that a commissioner, the director,
             1155      or a department employee may accept a gift from an officer, agent, or employee if the gift is
             1156      equal to or less than $50; or
             1157          (f) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             1158      any person to any office or employment with a person who applies for or holds a package
             1159      agency, license, permit, or certificate under this title.
             1160          (3) An immediate family member of a commissioner, the director, or a department
             1161      employee may not:
             1162          (a) have a pecuniary interest, whether as the holder of stock or other securities, in a
             1163      person who applies for or holds a package agency, license, permit, or certificate under this title;
             1164          (b) otherwise have a conflict of interest with a person who applies for or holds a
             1165      package agency, license, permit, or certificate under this title;
             1166          (c) have an office, position, or relationship, or be engaged in a business or avocation
             1167      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             1168      office or employment of the commissioner, director, or department employee for whom the
             1169      person is immediate family;
             1170          (d) accept a gift, gratuity, emolument, or employment from:
             1171          (i) a person who applies for or holds a package agency, license, permit, or certificate
             1172      under this title; or
             1173          (ii) an officer, agent, or employee of a person who applies for or holds a package
             1174      agency, license, permit, or certificate under this title, except that an immediate family member


             1175      may accept a gift from an officer, agent, or employee if the gift is equal to or less than $50; or
             1176          (e) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             1177      any person to any office or employment with a person who applies for or holds a package
             1178      agency, license, permit, or certificate under this title.
             1179          (4) An officer, agent, attorney, or employee of a person who applies for or holds a
             1180      package agency, license, permit, or certificate under this title may not directly or indirectly
             1181      solicit, request, or recommend to the governor, any state senator, the commission, or the
             1182      department the appointment of any person:
             1183          (a) as a commissioner;
             1184          (b) as director of the department; or
             1185          (c) to a department staff position.
             1186          (5) (a) A commissioner shall disclose during a meeting of the commission a potential
             1187      violation of this section, including the existence and nature of a professional, financial,
             1188      business, or personal interest with a person who holds, or an applicant for, a license, permit, or
             1189      certificate issued under this title that may result in a violation of this section.
             1190          (b) After a commissioner makes a disclosure under Subsection (5)(a):
             1191          (i) the commission may, by motion, determine whether there is a potential violation of
             1192      this section;
             1193          (ii) if the commission determines that there is a potential violation of this section:
             1194          (A) the commission shall notify the governor; and
             1195          (B) the commissioner may not vote on any matter that would result in the potential
             1196      violation of this section; and
             1197          (iii) if the commission determines that there is not a potential violation of this section,
             1198      a commissioner may elect whether to vote on the issue that gives rise to the disclosure under
             1199      Subsection (5)(a).
             1200          (c) The commission shall record any declaration of a potential violation of this section
             1201      in the minutes of the meeting.
             1202          Section 12. Section 32B-2-305 is enacted to read:
             1203          32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
             1204          (1) As used in this section:
             1205          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201 .


             1206          (b) "Enforcement ratio" is as defined in Section 32B-1-201 .
             1207          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
             1208      this section.
             1209          (2) There is created a restricted special revenue fund known as the "Alcoholic
             1210      Beverage Control Act Enforcement Fund."
             1211          (3) (a) The fund consists of:
             1212          (i) deposits made under Subsection (4); and
             1213          (ii) interest earned on the fund.
             1214          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             1215          (4) After the deposit made under Section 32B-2-304 , the department shall deposit 1%
             1216      of the total gross revenue from the sale of liquor with the state treasurer to be credited to the
             1217      fund to be used by the Department of Public Safety as provided in Subsection (5).
             1218          (5) The Department of Public Safety shall expend money from the fund to supplement
             1219      appropriations by the Legislature so that the Department of Public Safety maintains a sufficient
             1220      number of alcohol-related law enforcement officers such that beginning on July 1, 2011, each
             1221      year the enforcement ratio as of July 1 is equal to or less than the number specified in Section
             1222      32B-1-201 .
             1223          Section 13. Section 32B-2-503 (Effective 07/01/11) is amended to read:
             1224           32B-2-503 (Effective 07/01/11). Operational requirements for a state store.
             1225          (1) (a) A state store shall display in a prominent place in the store a sign in large letters
             1226      [stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
             1227      prosecuted aggressively in Utah."] that consists of text in the following order:
             1228          (i) a header that reads: "WARNING";
             1229          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1230      can cause birth defects and permanent brain damage for the child.";
             1231          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1232      [insert most current toll-free number] with questions or for more information.";
             1233          (iv) a header that reads: "WARNING"; and
             1234          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1235      serious crime that is prosecuted aggressively in Utah."
             1236          (b) (i) The text described in Subsections (1)(a)(i) through (iii) shall be in a different


             1237      font style than the text described in Subsections (1)(a)(iv) and (v).
             1238          (ii) The warning statements in the sign described in Subsection (1)(a) shall be in the
             1239      same font size.
             1240          (c) The Department of Health shall work with the commission and department to
             1241      facilitate consistency in the format of a sign required under this section.
             1242          (2) A state store may not sell, offer for sale, or furnish liquor except at a price fixed by
             1243      the commission.
             1244          (3) A state store may not sell, offer for sale, or furnish liquor to:
             1245          (a) a minor;
             1246          (b) a person actually, apparently, or obviously intoxicated;
             1247          (c) a known interdicted person; or
             1248          (d) a known habitual drunkard.
             1249          (4) (a) A state store employee may not:
             1250          (i) consume an alcoholic product on the premises of a state store; or
             1251          (ii) allow any person to consume an alcoholic product on the premises of a state store.
             1252          (b) A violation of this Subsection (4) is a class B misdemeanor.
             1253          (5) (a) Sale or delivery of liquor may not be made on or from the premises of a state
             1254      store, and a state store may not be kept open for the sale of liquor:
             1255          (i) on Sunday; or
             1256          (ii) on a state or federal legal holiday.
             1257          (b) Sale or delivery of liquor may be made on or from the premises of a state store, and
             1258      a state store may be open for the sale of liquor, only on a day and during hours that the
             1259      commission directs by rule or order.
             1260          (6) (a) A minor may not be admitted into, or be on the premises of a state store unless
             1261      accompanied by a person who is:
             1262          (i) 21 years of age or older; and
             1263          (ii) the minor's parent, legal guardian, or spouse.
             1264          (b) A state store employee that has reason to believe that a person who is on the
             1265      premises of a state store is under the age of 21 and is not accompanied by a person described in
             1266      Subsection (6)(a) may:
             1267          (i) ask the suspected minor for proof of age;


             1268          (ii) ask the person who accompanies the suspected minor for proof of age; and
             1269          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1270      proof of parental, guardianship, or spousal relationship.
             1271          (c) A state store employee shall refuse to sell liquor to the suspected minor and to the
             1272      person who accompanies the suspected minor into the state store if the suspected minor or
             1273      person fails to provide information specified in Subsection (6)(b).
             1274          (d) A state store employee shall require a suspected minor and the person who
             1275      accompanies the suspected minor into the state store to immediately leave the premises of the
             1276      state store if the suspected minor or person fails to provide information specified in Subsection
             1277      (6)(b).
             1278          (7) (a) A state store may not sell, offer for sale, or furnish liquor except in a sealed
             1279      [package] container.
             1280          (b) A person may not open a sealed [package] container on the premises of a state
             1281      store.
             1282          (8) On or after October 1, 2011, a state store may not sell, offer for sale, or furnish
             1283      heavy beer in a sealed container that exceeds two liters.
             1284          Section 14. Section 32B-2-504 (Effective 07/01/11) is amended to read:
             1285           32B-2-504 (Effective 07/01/11). Delivery of liquor to state store.
             1286          (1) Liquor to be sold from a state store may be transported from a warehouse
             1287      authorized by the department to the state store if transported by a person authorized by the
             1288      department to transport the liquor to the state store, including a common carrier.
             1289          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1290      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1291          (3) A person may not drink, use, or allow to be drunk or used, liquor while it is in
             1292      transit under this section.
             1293          Section 15. Section 32B-2-602 (Effective 07/01/11) is amended to read:
             1294           32B-2-602 (Effective 07/01/11). Application requirements for a package agency.
             1295          (1) Before a person may store, sell, offer for sale, or furnish liquor in a sealed
             1296      [package] container on its premises under a package agency, the person shall first obtain a
             1297      package agency issued by the commission in accordance with this part.
             1298          (2) To obtain a package agency, a person seeking to be the package agent under this


             1299      part shall submit to the department:
             1300          (a) a written application in a form prescribed by the department;
             1301          (b) a nonrefundable application fee of [$100] $125;
             1302          (c) written consent of the local authority;
             1303          (d) evidence of proximity to any community location, with proximity requirements
             1304      being governed by Section 32B-1-202 ;
             1305          (e) a bond as specified by Section 32B-2-604 ;
             1306          (f) a floor plan of the premises, including a description and highlighting of that part of
             1307      the premises in which the person proposes that the package agency be located;
             1308          (g) evidence that the package agency is carrying public liability insurance in an amount
             1309      and form satisfactory to the department;
             1310          (h) a signed consent form stating that the package agent permits any authorized
             1311      representative of the commission, department, or any law enforcement officer to have
             1312      unrestricted right to enter the premises of the package agency;
             1313          (i) if the person applying is an entity, verification that a person who signs the package
             1314      agency application is authorized to sign on behalf of the entity; and
             1315          (j) any other information the commission or department may require.
             1316          (3) The commission may not issue a package agency to a person who is disqualified
             1317      under Section 32B-1-304 .
             1318          (4) The commission may not issue a package agency for premises that do not meet the
             1319      proximity requirements of Section 32B-1-202 .
             1320          Section 16. Section 32B-2-605 (Effective 07/01/11) is amended to read:
             1321           32B-2-605 (Effective 07/01/11). Operational requirements for package agency.
             1322          (1) (a) A person may not operate a package agency until a package agency agreement is
             1323      entered into by the package agent and the department.
             1324          (b) A package agency agreement shall state the conditions of operation by which the
             1325      package agent and the department are bound.
             1326          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             1327      title, or the package agency agreement, the department may take any action against the package
             1328      agent that is allowed by the package agency agreement.
             1329          (ii) An action against a package agent is governed solely by its package agency


             1330      agreement and may include suspension or revocation of the package agency.
             1331          (iii) Notwithstanding that this part refers to "package agency" or "package agent," staff
             1332      of the package agency or package agent is subject to the same requirement or prohibition.
             1333          (2) (a) A package agency shall be operated by an individual who is either:
             1334          (i) the package agent; or
             1335          (ii) an individual designated by the package agent.
             1336          (b) An individual who is a designee under this Subsection (2) shall be:
             1337          (i) an employee of the package agent; and
             1338          (ii) responsible for the operation of the package agency.
             1339          (c) The conduct of the designee is attributable to the package agent.
             1340          (d) A package agent shall submit the name of the person operating the package agency
             1341      to the department for the department's approval.
             1342          (e) A package agent shall state the name and title of a designee on the application for a
             1343      package agency.
             1344          (f) A package agent shall:
             1345          (i) inform the department of a proposed change in the individual designated to operate
             1346      a package agency; and
             1347          (ii) receive prior approval from the department before implementing the change
             1348      described in this Subsection (2)(f).
             1349          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             1350      immediate termination of a package agency agreement.
             1351          (3) (a) A package agent shall display in a prominent place in the package agency[: (a)]
             1352      the record issued by the commission that designates the package agency[; and].
             1353          (b) A package agent that displays or stores liquor at a location visible to the public
             1354      shall display in a prominent place in the package agency a sign in large letters [stating:
             1355      "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             1356      aggressively in Utah."] that consists of text in the following order:
             1357          (i) a header that reads: "WARNING";
             1358          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1359      can cause birth defects and permanent brain damage for the child.";
             1360          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at


             1361      [insert most current toll-free number] with questions or for more information.";
             1362          (iv) a header that reads: "WARNING"; and
             1363          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1364      serious crime that is prosecuted aggressively in Utah."
             1365          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1366      font style than the text described in Subsections (3)(b)(iv) and (v).
             1367          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1368      same font size.
             1369          (d) The Department of Health shall work with the commission and department to
             1370      facilitate consistency in the format of a sign required under this section.
             1371          (4) A package agency may not display liquor or a price list in a window or showcase
             1372      that is visible to passersby.
             1373          (5) (a) A package agency may not purchase liquor from a person except from the
             1374      department.
             1375          (b) At the discretion of the department, liquor may be provided by the department to a
             1376      package agency for sale on consignment.
             1377          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             1378      other than as designated in the package agent's application, unless the package agent first
             1379      applies for and receives approval from the department for a change of location within the
             1380      package agency premises.
             1381          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             1382      fixed by the commission.
             1383          (8) A package agency may not sell, offer for sale, or furnish liquor to:
             1384          (a) a minor;
             1385          (b) a person actually, apparently, or obviously intoxicated;
             1386          (c) a known interdicted person; or
             1387          (d) a known habitual drunkard.
             1388          (9) (a) A package agency may not employ a minor to handle liquor.
             1389          (b) (i) Staff of a package agency may not:
             1390          (A) consume an alcoholic product on the premises of a package agency; or
             1391          (B) allow any person to consume an alcoholic product on the premises of a package


             1392      agency.
             1393          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             1394          (10) (a) A package agency may not close or cease operation for a period longer than 72
             1395      hours, unless:
             1396          (i) the package agency notifies the department in writing at least seven days before the
             1397      closing; and
             1398          (ii) the closure or cessation of operation is first approved by the department.
             1399          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             1400      agency shall immediately notify the department by telephone.
             1401          (c) (i) The department may authorize a closure or cessation of operation for a period
             1402      not to exceed 60 days.
             1403          (ii) The department may extend the initial period an additional 30 days upon written
             1404      request of the package agency and upon a showing of good cause.
             1405          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1406      commission approval.
             1407          (d) The notice required by Subsection (10)(a) shall include:
             1408          (i) the dates of closure or cessation of operation;
             1409          (ii) the reason for the closure or cessation of operation; and
             1410          (iii) the date on which the package agency will reopen or resume operation.
             1411          (e) Failure of a package agency to provide notice and to obtain department
             1412      authorization before closure or cessation of operation results in an automatic termination of the
             1413      package agency agreement effective immediately.
             1414          (f) Failure of a package agency to reopen or resume operation by the approved date
             1415      results in an automatic termination of the package agency agreement effective on that date.
             1416          (11) A package agency may not transfer its operations from one location to another
             1417      location without prior written approval of the commission.
             1418          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             1419      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             1420      person, whether for monetary gain or not.
             1421          (b) A package agency has no monetary value for any type of disposition.
             1422          (13) (a) Subject to the other provisions of this Subsection (13):


             1423          (i) sale or delivery of liquor may not be made on or from the premises of a package
             1424      agency, and a package agency may not be kept open for the sale of liquor:
             1425          (A) on Sunday; or
             1426          (B) on a state or federal legal holiday.
             1427          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             1428      agency, and a package agency may be open for the sale of liquor, only on a day and during
             1429      hours that the commission directs by rule or order.
             1430          [(b) Subsection (13)(a) governs unless:]
             1431          (b) A package agency located at a manufacturing facility is not subject to Subsection
             1432      (13)(a) if:
             1433          (i) the package agency is located at a [winery] manufacturing facility licensed in
             1434      accordance with Chapter 11, Manufacturing and Related Licenses Act;
             1435          (ii) the [winery] manufacturing facility licensed in accordance with Chapter 11,
             1436      Manufacturing and Related Licenses Act, holds:
             1437          (A) a full-service restaurant license; [or]
             1438          (B) a limited-service restaurant license; or
             1439          (C) a beer-only restaurant license;
             1440          (iii) the restaurant is located at the [winery] manufacturing facility;
             1441          (iv) the restaurant sells [wines] an alcoholic product produced at the [winery]
             1442      manufacturing facility;
             1443          (v) the [winery] manufacturing facility:
             1444          (A) owns the restaurant; or
             1445          (B) operates the restaurant;
             1446          (vi) the package agency only sells [wine] an alcoholic product produced at the [winery]
             1447      manufacturing facility; and
             1448          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1449      sale at the restaurant.
             1450          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
             1451      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             1452      in a manner similar to a state store.
             1453          (ii) The commission may by rule define what constitutes a package agency that sells


             1454      liquor "in a manner similar to a state store."
             1455          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1456      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1457      is:
             1458          (i) 21 years of age or older; and
             1459          (ii) the minor's parent, legal guardian, or spouse.
             1460          (b) A package agent or staff of a package agency that has reason to believe that a
             1461      person who is on the premises of a package agency is under the age of 21 and is not
             1462      accompanied by a person described in Subsection (14)(a) may:
             1463          (i) ask the suspected minor for proof of age;
             1464          (ii) ask the person who accompanies the suspected minor for proof of age; and
             1465          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1466      proof of parental, guardianship, or spousal relationship.
             1467          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             1468      suspected minor and to the person who accompanies the suspected minor into the package
             1469      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             1470          (d) A package agent or staff of a package agency shall require the suspected minor and
             1471      the person who accompanies the suspected minor into the package agency to immediately leave
             1472      the premises of the package agency if the minor or person fails to provide information specified
             1473      in Subsection (14)(b).
             1474          (15) (a) A package agency [may not] shall sell, offer for sale, or furnish liquor [except]
             1475      in a sealed [package] container.
             1476          (b) A person may not open a sealed [package] container on the premises of a package
             1477      agency.
             1478          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
             1479      furnish liquor in other than a sealed container:
             1480          (i) if the package agency is the type of package agency that authorizes the package
             1481      agency to sell, offer for sale, or furnish the liquor as part of room service;
             1482          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
             1483          (iii) subject to:
             1484          (A) staff of the package agency providing the liquor in person only to an adult guest in


             1485      the guest room;
             1486          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
             1487      by a guest; and
             1488          (C) the same limits on the portions in which an alcoholic product may be sold by a
             1489      retail licensee under Section 32B-5-304 .
             1490          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
             1491      furnish heavy beer in a sealed container that exceeds two liters.
             1492          [(16)] (17) The department may pay or otherwise remunerate a package agent on any
             1493      basis, including sales or volume of business done by the package agency.
             1494          [(17)] (18) The commission may prescribe by policy or rule general operational
             1495      requirements of a package agency that are consistent with this title and relate to:
             1496          (a) physical facilities;
             1497          (b) conditions of operation;
             1498          (c) hours of operation;
             1499          (d) inventory levels;
             1500          (e) payment schedules;
             1501          (f) methods of payment;
             1502          (g) premises security; and
             1503          (h) any other matter considered appropriate by the commission.
             1504          Section 17. Section 32B-2-606 (Effective 07/01/11) is amended to read:
             1505           32B-2-606 (Effective 07/01/11). Delivery of liquor to package agency.
             1506          (1) Liquor to be sold from a package agency may be transported from a warehouse or
             1507      state store authorized by the department to the package agency if transported by a person
             1508      authorized by the department to transport the liquor to the package agency, including a
             1509      common carrier.
             1510          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1511      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1512          (3) A person may not drink, use, or allow to be drunk or used, any liquor while the
             1513      liquor is in transit under this section.
             1514          Section 18. Section 32B-4-203 (Effective 07/01/11) is amended to read:
             1515           32B-4-203 (Effective 07/01/11). Authority to inspect.


             1516          (1) (a) This Subsection (1) applies to:
             1517          (i) a commissioner;
             1518          (ii) an authorized representative of the commission or department; or
             1519          (iii) a law enforcement or peace officer.
             1520          (b) An individual described in Subsection (1)(a):
             1521          (i) shall be given access, ingress, and egress to and from premises or a conveyance
             1522      used in the storage, sale, furnishing, manufacture, or transportation of an alcoholic product;
             1523          (ii) may open a [package] container containing, or supposed to contain, an article sold,
             1524      or exposed for sale, held in possession, or manufactured with intent to sell in violation of this
             1525      title or commission rules; and
             1526          (iii) may inspect the contents and take samples of the contents for analysis from a
             1527      [package] container described in this Subsection (1).
             1528          (2) The following shall assist, when requested by a person described in Subsection (1),
             1529      in tracing, finding, or discovering the presence of an article prohibited by this title or
             1530      commission rules to the extent assistance would not infringe upon the person's federal and state
             1531      constitutional rights:
             1532          (a) a dealer;
             1533          (b) a clerk;
             1534          (c) a bookkeeper;
             1535          (d) an express agent;
             1536          (e) a railroad or airline official;
             1537          (f) a common or other carrier; and
             1538          (g) an employee of a person listed in this Subsection (2).
             1539          Section 19. Section 32B-4-206 (Effective 07/01/11) is amended to read:
             1540           32B-4-206 (Effective 07/01/11). Searches, seizures, forfeitures, and fines.
             1541          (1) The following are subject to forfeiture pursuant to Title 24, Chapter 1, Utah
             1542      Uniform Forfeiture Procedures Act:
             1543          (a) an alcoholic product possessed, purchased, used, stored, sold, offered for sale,
             1544      furnished, given, received, warehoused, manufactured, distributed, shipped, carried,
             1545      transported, or adulterated in violation of this title or commission rules;
             1546          (b) a [package] container or property used or intended for use as a [package] container


             1547      for an alcoholic product in violation of this title or commission rules;
             1548          (c) raw materials, products, and equipment used, or intended for use, in manufacturing,
             1549      processing, delivering, importing, exporting, or adulterating an alcoholic product in violation
             1550      of this title or commission rules;
             1551          (d) implements, furniture, fixtures, or other personal property used or kept for a
             1552      violation of this title or commission rules;
             1553          (e) conveyances including an aircraft, vehicle, or vessel used or intended for use, to
             1554      transport or in any manner facilitate the transportation, sale, receipt, possession, or
             1555      concealment of property described in Subsection (1)(a), (b), (c), or (d); and
             1556          (f) a record used or intended for use in violation of this title or commission rules.
             1557          (2) (a) Property subject to forfeiture under this title may be seized by a peace officer of
             1558      this state or any other person authorized by law upon process issued by a court having
             1559      jurisdiction over the property in accordance with the Utah Rules of Criminal Procedure relating
             1560      to search warrants or administrative warrants.
             1561          (b) Notwithstanding Subsection (2)(a), seizure without process may be made when:
             1562          (i) the seizure is incident to an arrest or search under a search warrant or an inspection
             1563      under an administrative inspection warrant;
             1564          (ii) the property subject to seizure has been the subject of a prior judgment in favor of
             1565      the state in a criminal injunction or forfeiture proceeding under this title;
             1566          (iii) the peace officer or other person authorized by law has probable cause to believe
             1567      that the property is directly or indirectly dangerous to health or safety; or
             1568          (iv) the peace officer or other person authorized by law has probable cause to believe
             1569      that the property is being or has been used, intended to be used, held, or kept in violation of this
             1570      title or commission rules.
             1571          (3) If property is seized pursuant to a search or administrative warrant, a peace officer
             1572      or other person authorized by law shall comply with the requirements of the Utah Rules of
             1573      Criminal Procedure.
             1574          (4) (a) If property is seized without process:
             1575          (i) the peace officer or other person authorized by law shall make a return of the peace
             1576      officer's or person's acts without delay directly to the district court of the county in which the
             1577      property was located; and


             1578          (ii) the district court shall have jurisdiction of the case.
             1579          (b) A return shall describe:
             1580          (i) the property seized;
             1581          (ii) the place where the property is seized; and
             1582          (iii) any person in apparent possession of the property.
             1583          (c) A peace officer or other person described in Subsection (4)(a) shall promptly:
             1584          (i) deliver a written inventory of anything seized to any person in apparent authority at
             1585      the premises where the seizure is made; or
             1586          (ii) post a written inventory of anything seized in a conspicuous place at the premises.
             1587          (d) A written inventory under this Subsection (4) shall state the place where the
             1588      property is being held.
             1589          (5) Property taken or detained under this section is not repleviable but is considered in
             1590      custody of the law enforcement agency making the seizure subject only to the orders of the
             1591      court or the official having jurisdiction. When property is seized under this title, the
             1592      appropriate person or agency may:
             1593          (a) place the property under seal;
             1594          (b) remove the property to a place designated by:
             1595          (i) the person or agency; or
             1596          (ii) the warrant under which the property is seized; or
             1597          (c) take custody of the property and remove the property to an appropriate location for
             1598      disposition in accordance with law.
             1599          (6) When property is subject to forfeiture under this section, a proceeding shall be
             1600      instituted in accordance with Title 24, Chapter 1, Utah Uniform Forfeiture Procedures Act.
             1601          (7) When property is ordered forfeited under Title 24, Chapter 1, Utah Uniform
             1602      Forfeiture Procedures Act, by a finding of a court that no person is entitled to recover the
             1603      property, the property, if an alcohol [package] container or product used as a [package]
             1604      container for an alcoholic product, shall be disposed of as follows:
             1605          (a) An alcoholic product shall be sold in accordance with Section 24-1-17 if the
             1606      alcoholic product is:
             1607          (i) unadulterated, pure, and free from crude, unrectified, or impure form of ethylic
             1608      alcohol, or any other deleterious substance or liquid; and


             1609          (ii) otherwise in saleable condition.
             1610          (b) If the alcoholic product is impure, adulterated, or otherwise unfit for sale, the
             1611      department shall destroy the alcoholic product and its [package] container under competent
             1612      supervision.
             1613          (8) Except when otherwise provided, a fine or forfeiture levied under this title shall be
             1614      paid to the county treasurer of the county in which the prosecution occurred.
             1615          Section 20. Section 32B-4-208 (Effective 07/01/11) is amended to read:
             1616           32B-4-208 (Effective 07/01/11). Nuisances.
             1617          (1) As used in this section, "nuisance" means:
             1618          (a) a room, house, building, structure, place, aircraft, vehicle, vessel, or other
             1619      conveyance where an alcoholic product is possessed, purchased, used, kept, stored, sold,
             1620      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1621      carried, transported, or adulterated in violation of this title; or
             1622          (b) an alcoholic product, [package] container, equipment, or other property kept or
             1623      used in maintaining an item or property described in Subsection (1)(a).
             1624          (2) A person who maintains or assists in maintaining a nuisance is guilty of a class B
             1625      misdemeanor.
             1626          (3) If a person has knowledge that, or has reason to believe that the person's room,
             1627      house, building, structure, place, aircraft, vehicle, vessel, or other conveyance is occupied or
             1628      used as a nuisance, or allows it to be occupied or used as a nuisance, the nuisance property is
             1629      subject to a lien for and may be sold to pay the fines and costs assessed against the person
             1630      guilty of the common nuisance. This lien may be enforced by action in a court having
             1631      jurisdiction.
             1632          (4) (a) The department shall bring an action to abate a nuisance in the name of the
             1633      department in a court having jurisdiction.
             1634          (b) An action brought under this Subsection (4) is an action in equity.
             1635          (c) The department may not be required to post a bond to initiate an action under this
             1636      Subsection (4).
             1637          (d) A court may issue:
             1638          (i) if it appears that a nuisance exists, a temporary writ of injunction restraining the
             1639      defendant from conducting or permitting the continuance of the nuisance until the conclusion


             1640      of the trial; and
             1641          (ii) an order restraining the defendant and any other person from removing or
             1642      interfering with an alcoholic product, [package] container, equipment, or other property kept or
             1643      used in violation of this title or commission rules.
             1644          (e) In an action to abate or enjoin a nuisance, the court need not find that the property
             1645      involved is being unlawfully used at the time of the hearing.
             1646          (f) On finding that a material allegation of a petition or complaint is true, the court
             1647      shall order that an alcoholic product may not be possessed, purchased, used, kept, stored, sold,
             1648      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1649      carried, transported, or adulterated, in any portion of the room, house, building, structure,
             1650      place, aircraft, vehicle, vessel, or other conveyance.
             1651          (g) Upon judgment of a court ordering abatement of the nuisance, the court may order
             1652      that the premises or conveyance in question may not be occupied or used for any purpose for
             1653      one year, except under Subsection (4)(h).
             1654          (h) A court may permit premises or conveyance described in Subsection (4)(g) to be
             1655      occupied or used:
             1656          (i) if its owner, lessee, tenant, or occupant gives bond in an appropriate amount with
             1657      sufficient surety, approved by the court, payable to the state;
             1658          (ii) on the condition that an alcoholic product will not be present in or on the premises
             1659      or the conveyance; and
             1660          (iii) on the condition that payment of the fines, costs, and damages assessed for
             1661      violation of this title or commission rules will be made.
             1662          (5) If a tenant of the premises uses the premises or any part of the premises in
             1663      maintaining a nuisance, or knowingly permits use by another, the lease is void and the right to
             1664      possession reverts to the owner or lessor who is entitled to the remedy provided by law for
             1665      forcible detention of the premises.
             1666          (6) A person is guilty of assisting in maintaining a nuisance as provided in Section
             1667      76-10-804 , if that person:
             1668          (a) knowingly permits a building or premises owned or leased by the person, or under
             1669      the person's control, or any part of a building or premises, to be used in maintaining a nuisance;
             1670      or


             1671          (b) after being notified in writing by a prosecutor or other citizen of the unlawful use,
             1672      fails to take all proper measures to:
             1673          (i) abate the nuisance; or
             1674          (ii) remove the one or more persons from the premises.
             1675          Section 21. Section 32B-4-406 (Effective 07/01/11) is amended to read:
             1676           32B-4-406 (Effective 07/01/11). Unlawful sale, offer for sale, or furnishing of an
             1677      alcoholic product.
             1678          (1) Except as provided in Subsection (2):
             1679          (a) a person may not sell, offer for sale, or furnish beer to the general public in a
             1680      [package] container that exceeds two liters; and
             1681          (b) a person may not purchase or possess beer in a [package] container that exceeds
             1682      two liters.
             1683          (2) (a) A retail licensee may sell, offer for sale, or furnish beer on draft subject to the
             1684      requirements of Section 32B-5-304 .
             1685          (b) A retail licensee may purchase or possess beer in a [package] container that exceeds
             1686      two liters to be dispensed on draft for consumption subject to the requirements of Section
             1687      32B-5-304 .
             1688          (c) A beer wholesaler licensee may sell, offer for sale, or furnish beer in a [package]
             1689      container that exceeds two liters to a retail licensee described in Subsection (2)(a).
             1690          (3) On or after October 1, 2011:
             1691          (a) A person may not sell, offer for sale, or furnish heavy beer in a container that
             1692      exceeds two liters.
             1693          (b) A person may not purchase or possess heavy beer in a container that exceeds two
             1694      liters.
             1695          Section 22. Section 32B-4-420 (Effective 07/01/11) is amended to read:
             1696           32B-4-420 (Effective 07/01/11). Unlawful adulteration.
             1697          (1) For purposes of this section, "tamper" means to do one or more of the following to
             1698      the contents of a [package] container:
             1699          (a) fortify;
             1700          (b) adulterate;
             1701          (c) contaminate;


             1702          (d) dilute;
             1703          (e) change its character or purity; or
             1704          (f) otherwise change.
             1705          (2) A person may not, for any purpose, mix or allow to be mixed with an alcoholic
             1706      product sold or supplied by the person as a beverage any of the following:
             1707          (a) a drug;
             1708          (b) methylic alcohol;
             1709          (c) a crude, unrectified, or impure form of ethylic alcohol; or
             1710          (d) another deleterious substance.
             1711          (3) (a) The following may not engage in an act listed in Subsection (3)(b):
             1712          (i) a package agent;
             1713          (ii) a retail licensee;
             1714          (iii) a permittee;
             1715          (iv) a beer wholesaler licensee;
             1716          (v) a liquor warehouser licensee;
             1717          (vi) a supplier; or
             1718          (vii) an importer.
             1719          (b) A person listed in Subsection (3)(a) may not:
             1720          (i) tamper with the contents of a [package] container of alcoholic product as originally
             1721      marketed by a manufacturer;
             1722          (ii) refill or partly refill with any substance the contents of an original [package]
             1723      container of alcoholic product as originally marketed by a manufacturer;
             1724          (iii) misrepresent the brand of an alcoholic product sold or offered for sale; or
             1725          (iv) sell or furnish a brand of alcoholic product that is not the same as that ordered by a
             1726      purchaser without first advising the purchaser of the difference.
             1727          Section 23. Section 32B-4-705 (Effective 07/01/11) is amended to read:
             1728           32B-4-705 (Effective 07/01/11). Exclusions from tied house prohibitions.
             1729          (1) Notwithstanding Subsection 32B-4-704 (3), a thing of value may be furnished by an
             1730      industry member to a retailer under the conditions and within the limitations prescribed in:
             1731          (a) this section; and
             1732          (b) the applicable federal laws cited in this section.


             1733          (2) The following may be furnished by an industry member:
             1734          (a) a product display as provided in 27 C.F.R. Sec. 6.83;
             1735          (b) point of sale advertising material or a consumer advertising specialty as provided in
             1736      27 C.F.R. Sec. 6.84;
             1737          (c) a thing of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
             1738          (d) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
             1739          (e) combination packaging as provided in 27 C.F.R. Sec. 6.93;
             1740          (f) an educational seminar as provided in 27 C.F.R. Sec. 6.94;
             1741          (g) a consumer promotion as provided in 27 C.F.R. Sec. 6.96;
             1742          (h) an advertising service as provided in 27 C.F.R. Sec. 6.98;
             1743          (i) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
             1744          (j) merchandise as provided in 27 C.F.R. Sec. 6.101; and
             1745          (k) an outside sign as provided in 27 C.F.R. Sec. 6.102.
             1746          (3) The following exceptions provided in federal law are not applicable:
             1747          (a) the exception for a sample as provided in 27 C.F.R. Sec. 6.91;
             1748          (b) the exception for a consumer tasting or sampling at a retail establishment as
             1749      provided in 27 C.F.R. Sec. 6.95; and
             1750          (c) the exception for participation in a retailer association activity provided in 27
             1751      C.F.R. Sec. 6.100.
             1752          (4) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall maintain
             1753      a record:
             1754          (a) of an item furnished to a retailer;
             1755          (b) on the premises of the industry member; and
             1756          (c) for a three-year period.
             1757          (5) A sample of liquor may be provided to the department under the following
             1758      conditions:
             1759          (a) With the department's permission, an industry member may submit a department
             1760      sample to the department for product testing, analysis, and sampling.
             1761          (b) No more than two department samples of a particular type, vintage, and production
             1762      lot of a particular branded product may be submitted to the department for department testing,
             1763      analysis, and sampling within a consecutive 120-day period.


             1764          (c) (i) A department sample may not exceed 1 liter.
             1765          (ii) Notwithstanding Subsection (5)(c)(i), a department sample of the following may
             1766      not exceed 1.5 liters unless that exact alcoholic product is only commercially packaged in a
             1767      larger size, not to exceed 5 liters:
             1768          (A) wine;
             1769          (B) heavy beer; or
             1770          (C) a flavored malt beverage.
             1771          (d) A department sample submitted to the department:
             1772          (i) shall be shipped prepaid by the industry member by common carrier; and
             1773          (ii) may not be shipped by United States mail directly to the department's central
             1774      administrative warehouse office.
             1775          (e) A department sample may not be shipped to any other location within the state.
             1776          (f) The industry member shall submit with a department sample submitted to the
             1777      department a letter from the industry member that clearly:
             1778          (i) identifies the product as a "department sample"; and
             1779          (ii) states the FOB case price of the product.
             1780          (g) (i) The department may transfer a listed item from current stock:
             1781          (A) for use as a comparison control sample; or
             1782          (B) to verify product spoilage as considered appropriate.
             1783          (ii) The department shall charge back a sample transferred under this Subsection (5)(g)
             1784      to the respective industry member.
             1785          (h) The department shall:
             1786          (i) account for, label, and record a department sample received or transferred;
             1787          (ii) account for the department sample's disposition; and
             1788          (iii) maintain a record of the sample and its disposition for a two-year period.
             1789          (i) The department shall affix to each [package] container of a department sample a
             1790      label clearly identifying the product as a "department sample."
             1791          (j) The department shall dispose of a department sample delivered to the department or
             1792      transferred from the department's current stock in one of the following ways as chosen by the
             1793      department:
             1794          (i) test and analyze the department sample, with the remaining contents destroyed


             1795      under controlled and audited conditions established by the department;
             1796          (ii) destroy the entire contents of the department sample under controlled and audited
             1797      conditions established by the department; or
             1798          (iii) add the department sample to the inventory of the department for sale to the
             1799      public.
             1800          (k) A person other than an authorized department official may not be in possession of a
             1801      department sample except as otherwise provided.
             1802          (l) The department shall handle a liquor item received by the department from a
             1803      supplier that is not designated as a sample by the supplier, but that is an item not specifically
             1804      listed on a department purchase order, in accordance with this Subsection (5).
             1805          (m) The department may not use its money to pay freight or charges on a sample or a
             1806      liquor item:
             1807          (i) shipped to the department by a supplier; and
             1808          (ii) not listed on a department purchase order.
             1809          (6) A sample of beer may be provided by a beer industry member to a retailer under the
             1810      conditions listed in this Subsection (6).
             1811          (a) A sample of beer may be provided by an industry member only to a retailer who has
             1812      not purchased the brand of beer from that industry member within the last 12 months.
             1813          (b) For each retailer, the industry member may give not more than three gallons of any
             1814      brand of beer, except that if a particular product is not available in a size within the quantity
             1815      limitation, an industry member may furnish the next largest size.
             1816          (7) An educational seminar may involve an industry member under the conditions
             1817      listed in this Subsection (7).
             1818          (a) An industry member may provide or participate in an educational seminar:
             1819          (i) involving:
             1820          (A) the department;
             1821          (B) a retailer;
             1822          (C) a holder of a scientific or educational special use permit;
             1823          (D) another industry member; or
             1824          (E) an employee of a person listed in Subsections (7)(a)(i)(A) through (D); and
             1825          (ii) regarding a topic such as:


             1826          (A) merchandising and product knowledge;
             1827          (B) use of equipment; and
             1828          (C) a tour of an alcoholic product manufacturing facility.
             1829          (b) An industry member may not pay the expenses of or compensate a person who is a
             1830      department employee, a retailer, or a permittee for attending a seminar or tour described in
             1831      Subsection (7)(a).
             1832          (8) (a) A liquor industry member may conduct a tasting of a liquor product of the
             1833      industry member:
             1834          (i) for the department, at the department's request; and
             1835          (ii) for a licensed industry representative, but only at the department's central
             1836      administrative warehouse office.
             1837          (b) A liquor industry member may only use a department sample or industry
             1838      representative sample when conducting a tasting of the industry member's liquor product.
             1839          (c) A beer industry member may conduct a tasting of a beer product for a beer retailer
             1840      either at:
             1841          (i) the industry member's premises; or
             1842          (ii) a retail establishment.
             1843          (d) Except to the extent authorized by commission rule, an alcoholic product industry
             1844      member may not conduct tasting or sampling activities with:
             1845          (i) a retailer; or
             1846          (ii) a member of the general public.
             1847          (9) A beer industry member may participate in a beer retailer association activity to the
             1848      extent authorized by 27 C.F.R. Sec. 6.100.
             1849          (10) (a) An industry member may contribute to a charitable, civic, religious, fraternal,
             1850      educational, or community activity, except the contribution may not be given to influence a
             1851      retailer in the selection of a product that may be sold at the activity.
             1852          (b) An industry member or retailer violates this Subsection (10) if:
             1853          (i) the industry member's contribution influences, directly or indirectly, the retailer in
             1854      the selection of a product; and
             1855          (ii) a competitor's product is excluded in whole or in part from sale at the activity.
             1856          (11) (a) An industry member may lease or furnish equipment listed in Subsection


             1857      (11)(b) to a retailer if:
             1858          (i) the equipment is leased or furnished for a special event;
             1859          (ii) a reasonable rental or service fee is charged for the equipment; and
             1860          (iii) the period for which the equipment is leased or furnished does not exceed 30 days.
             1861          (b) This Subsection (11) applies to the following equipment:
             1862          (i) a picnic pump;
             1863          (ii) a cold plate;
             1864          (iii) a tub;
             1865          (iv) a keg box;
             1866          (v) a refrigerated trailer;
             1867          (vi) a refrigerated van; or
             1868          (vii) a refrigerated draft system.
             1869          (12) (a) A liquor industry member may assist the department in:
             1870          (i) ordering, shipping, and delivering merchandise;
             1871          (ii) new product notification;
             1872          (iii) listing and delisting information;
             1873          (iv) price quotations;
             1874          (v) product sales analysis;
             1875          (vi) shelf management; and
             1876          (vii) an educational seminar.
             1877          (b) (i) A liquor industry member may, to acquire a new listing:
             1878          (A) solicit an order from the department; and
             1879          (B) submit to the department a sample of the liquor industry member's products under
             1880      Subsection (5) and price lists.
             1881          (ii) (A) An industry member is confined to the customer areas when the industry
             1882      member visits a state store or package agency unless otherwise approved.
             1883          (B) An industry member is confined to the office area of a state warehouse when the
             1884      industry member visits a state warehouse unless otherwise approved.
             1885          (13) A beer industry member may assist a beer retailer in:
             1886          (a) ordering, shipping, and delivering beer merchandise;
             1887          (b) new product notification;


             1888          (c) listing and delisting information;
             1889          (d) price quotations;
             1890          (e) product sales analysis;
             1891          (f) shelf management; and
             1892          (g) an educational seminar.
             1893          (14) A beer industry member may, to acquire a new listing:
             1894          (a) solicit an order from a beer retailer; and
             1895          (b) submit to a beer retailer a sample of the beer industry member's beer products under
             1896      Subsection (5) and price lists.
             1897          Section 24. Section 32B-5-301 (Effective 07/01/11) is amended to read:
             1898           32B-5-301 (Effective 07/01/11). General operational requirements.
             1899          (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
             1900      rules of the commission, including the relevant part under Chapter 6, Specific Retail License
             1901      Act, for the specific type of retail license.
             1902          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1903      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1904          (i) a retail licensee;
             1905          (ii) individual staff of a retail licensee; or
             1906          (iii) both a retail licensee and staff of the retail licensee.
             1907          (2) (a) If there is a conflict between this part and the relevant part under Chapter 6,
             1908      Specific Retail License Act, for the specific type of retail license, the relevant part under
             1909      Chapter 6 governs.
             1910          (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
             1911      licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
             1912      specifically authorized by the relevant part under Chapter 6, Specific Retail License Act.
             1913          (c) Notwithstanding that this part or the relevant part under Chapter 6, Specific Retail
             1914      License Act, refers to "retail licensee," staff of the retail licensee is subject to the same
             1915      requirement or prohibition.
             1916          (3) (a) A retail licensee shall display in a prominent place in the licensed premises[:
             1917      (a)] the retail license that is issued by the department[; and].
             1918          (b) A retail licensee shall display in a prominent place a sign in large letters [stating:


             1919      "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             1920      aggressively in Utah."] that consists of text in the following order:
             1921          (i) a header that reads: "WARNING";
             1922          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1923      can cause birth defects and permanent brain damage for the child.";
             1924          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1925      [insert most current toll-free number] with questions or for more information.";
             1926          (iv) a header that reads: "WARNING"; and
             1927          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1928      serious crime that is prosecuted aggressively in Utah."
             1929          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1930      font style than the text described in Subsections (3)(b)(iv) and (v).
             1931          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1932      same font size.
             1933          (d) The Department of Health shall work with the commission and department to
             1934      facilitate consistency in the format of a sign required under this section.
             1935          (4) A retail licensee may not on the licensed premises:
             1936          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1937      Chapter 10, Part 11, Gambling;
             1938          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1939      Part 11, Gambling; or
             1940          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1941      the risking of something of value for a return or for an outcome when the return or outcome is
             1942      based upon an element of chance, excluding the playing of an amusement device that confers
             1943      only an immediate and unrecorded right of replay not exchangeable for value.
             1944          (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
             1945      violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             1946      Paraphernalia Act:
             1947          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1948      58-37-2 ; or
             1949          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in


             1950      Section 58-37a-3 .
             1951          (6) Upon the presentation of credentials, at any time during which a retail licensee is
             1952      open for the transaction of business, the retail licensee shall immediately:
             1953          (a) admit a commissioner, authorized department employee, or law enforcement officer
             1954      to the retail licensee's premises; and
             1955          (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
             1956      inspect completely:
             1957          (i) the entire premises of the retail licensee; and
             1958          (ii) the records of the retail licensee.
             1959          (7) An individual may not consume an alcoholic product on the licensed premises of a
             1960      retail licensee on any day during the period:
             1961          (a) beginning one hour after the time of day that the period during which a retail
             1962      licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
             1963      begins; and
             1964          (b) ending at the time specified in the relevant part under Chapter 6, Specific Retail
             1965      License Act, for the type of retail license when the retail licensee may first sell, offer for sale,
             1966      or furnish an alcoholic product on the licensed premises on that day.
             1967          Section 25. Section 32B-5-304 (Effective 07/01/11) is amended to read:
             1968           32B-5-304 (Effective 07/01/11). Portions in which alcoholic product may be sold.
             1969          (1) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor only
             1970      in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated
             1971      metered dispensing system approved by the department in accordance with commission rules
             1972      adopted under this title, except that:
             1973          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1974      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1975      requirements:
             1976          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1977      a primary spirituous liquor;
             1978          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1979          (iii) the retail licensee shall designate a location where flavorings are stored on the
             1980      floor plan submitted to the department; and


             1981          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1982          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1983      system if used:
             1984          (i) as a flavoring on a dessert; and
             1985          (ii) in the preparation of a flaming food dish, drink, or dessert; and
             1986          (c) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
             1987          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
             1988      individual portion that does not exceed 5 ounces per glass or individual portion.
             1989          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
             1990      a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
             1991          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             1992      not exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
             1993          (ii) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             1994      not to exceed 750 milliliters at a price fixed by the commission to a table of less than four
             1995      persons.
             1996          (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
             1997      [package] container at a price fixed by the commission, except that the original [package]
             1998      container may not exceed one liter.
             1999          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
             2000      original [package] container at a price fixed by the commission, except that the original
             2001      [package] container may not exceed one liter.
             2002          (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
             2003      beer for on-premise consumption:
             2004          (i) in an open original [package] container; and
             2005          (ii) in a [package] container on draft.
             2006          (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
             2007          (i) in a size of [package] container that exceeds two liters; or
             2008          (ii) to an individual patron in a size of [package] container that exceeds one liter.
             2009          Section 26. Section 32B-5-307 (Effective 07/01/11) is amended to read:
             2010           32B-5-307 (Effective 07/01/11). Bringing onto or removing alcoholic product
             2011      from premises.


             2012          (1) Except as provided in Subsection (3):
             2013          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
             2014      product for on-premise consumption.
             2015          (b) A retail licensee may not allow a person to:
             2016          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
             2017          (ii) consume an alcoholic product brought onto the licensed premises by a person other
             2018      than the retail licensee.
             2019          (2) Except as provided in Subsection (3):
             2020          (a) A person may not carry from a licensed premises of a retail licensee an open
             2021      [package] container that:
             2022          (i) is used primarily for drinking purposes; and
             2023          (ii) contains an alcoholic product.
             2024          (b) A retail licensee may not permit a patron to carry from the licensed premises an
             2025      open [package] container described in Subsection (2)(a).
             2026          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
             2027      on-premise consumption if:
             2028          (i) permitted by the retail licensee; and
             2029          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
             2030          (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
             2031      patron shall deliver the bottled wine to a server or other representative of the retail licensee
             2032      upon entering the licensed premises.
             2033          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
             2034      wine service for a bottled wine carried onto the licensed premises in accordance with this
             2035      Subsection (3).
             2036          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
             2037      of wine purchased in the licensed premises, or brought onto the licensed premises in
             2038      accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
             2039          Section 27. Section 32B-5-309 (Effective 07/01/11) is amended to read:
             2040           32B-5-309 (Effective 07/01/11). Ceasing operation.
             2041          (1) [(a)] Except as provided in Subsection [(1)(h)] (8), a retail licensee may not close
             2042      or cease operation for a period longer than 240 hours, unless:


             2043          [(i)] (a) the retail licensee notifies the department in writing at least seven days before
             2044      the day on which the retail licensee closes or ceases operation; and
             2045          [(ii)] (b) the closure or cessation of operation is first approved by the department.
             2046          [(b)] (2) Notwithstanding Subsection (1)[(a)], in the case of emergency closure, a retail
             2047      licensee shall immediately notify the department by telephone.
             2048          [(c) (i)] (3) (a) The department may authorize a closure or cessation of operation of a
             2049      retail licensee for a period not to exceed 60 days.
             2050          [(ii)] (b) The department may extend the initial period an additional 30 days upon:
             2051          [(A)] (i) written request of the retail licensee; and
             2052          [(B)] (ii) a showing of good cause.
             2053          [(d)] (4) A closure or cessation of operation may not exceed a total of 90 days without
             2054      commission approval.
             2055          [(e)] (5) A notice required under this [Subsection (1)] section shall include:
             2056          [(i)] (a) the dates of closure or cessation of operation;
             2057          [(ii)] (b) the reason for the closure or cessation of operation; and
             2058          [(iii)] (c) the date on which the retail licensee will reopen or resume operation.
             2059          [(f)] (6) Failure of a retail licensee to provide notice and to obtain department approval
             2060      before closure or cessation of operation results in an automatic forfeiture of:
             2061          [(i)] (a) the retail license; and
             2062          [(ii)] (b) the unused portion of the retail license fee for the remainder of the retail
             2063      license year effective immediately.
             2064          [(g)] (7) Failure of a retail licensee to reopen or resume operation by the approved date
             2065      results in an automatic forfeiture of:
             2066          [(i)] (a) the retail license; and
             2067          [(ii)] (b) the unused portion of the retail license fee for the remainder of the retail
             2068      license year.
             2069          [(h) This Subsection (1)]
             2070          (8) This section does not apply to:
             2071          [(i)] (a) an on-premise beer retailer who is not a tavern; or
             2072          [(ii)] (b) an airport lounge licensee.
             2073          [(2) A retail licensee may not transfer a retail license from one location to another


             2074      location, without prior written approval of the commission.]
             2075          [(3) (a) A person, having been issued a retail license may not sell, transfer, assign,
             2076      exchange, barter, give, or attempt in any way to dispose of the retail license to another person
             2077      whether for monetary gain or not.]
             2078          [(b) A retail license has no monetary value for any type of disposition.]
             2079          Section 28. Section 32B-6-102 (Effective 07/01/11) is amended to read:
             2080           32B-6-102 (Effective 07/01/11). Definitions.
             2081          [As used in this chapter:]
             2082          [(1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2083      full-service restaurant licensee or limited-service restaurant licensee that:]
             2084          [(i) as of May 11, 2009, has:]
             2085          [(A) patron seating at the bar structure;]
             2086          [(B) a partition at one or more locations on the bar structure that is along:]
             2087          [(I) the width of the bar structure; or]
             2088          [(II) the length of the bar structure; and]
             2089          [(C) facilities for the dispensing or storage of an alcoholic product:]
             2090          [(I) on the portion of the bar structure that is separated by the partition described in
             2091      Subsection (1)(a)(i)(B); or]
             2092          [(II) if the partition is described in Subsection (1)(a)(i)(B)(II), adjacent to the bar
             2093      structure in a manner visible to a patron sitting at the bar structure;]
             2094          [(ii) is not operational as of May 12, 2009, if:]
             2095          [(A) a person applying for a full-service restaurant license or limited-service restaurant
             2096      license:]
             2097          [(I) has as of May 12, 2009, a building permit to construct the restaurant;]
             2098          [(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2099      defined by rule made by the commission; and]
             2100          [(III) is issued the full-service restaurant license or limited-service restaurant license by
             2101      no later than December 31, 2009; and]
             2102          [(B) once constructed, the licensed premises has a bar structure described in Subsection
             2103      (1)(a)(i);]
             2104          [(iii) as of May 12, 2009, has no patron seating at the bar structure; or]


             2105          [(iv) is not operational as of May 12, 2009, if:]
             2106          [(A) a person applying for a full-service restaurant license or limited-service restaurant
             2107      license:]
             2108          [(I) has as of May 12, 2009, a building permit to construct the restaurant;]
             2109          [(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2110      defined by rule made by the commission; and]
             2111          [(III) is issued a full-service restaurant license or limited-service restaurant license by
             2112      no later than December 31, 2009; and]
             2113          [(B) once constructed, the licensed premises has a bar structure with no patron seating.]
             2114          [(b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2115      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2116      grandfathered bar structure, as defined by rule made by the commission.]
             2117          [(c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2118      bar structure notwithstanding whether a restaurant undergoes a change of ownership.]
             2119          [(2) "Seating grandfathered bar structure" means a grandfathered bar structure
             2120      described in Subsection (1)(a)(i) or (ii).]
             2121          Reserved
             2122          Section 29. Section 32B-6-202 (Effective 07/01/11) is amended to read:
             2123           32B-6-202 (Effective 07/01/11). Definitions.
             2124          [Reserved]
             2125          As used in this part:
             2126          (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2127      full-service restaurant licensee that:
             2128          (i) as of May 11, 2009, has:
             2129          (A) patron seating at the bar structure;
             2130          (B) a partition at one or more locations on the bar structure that is along:
             2131          (I) the width of the bar structure; or
             2132          (II) the length of the bar structure; and
             2133          (C) facilities for the dispensing or storage of an alcoholic product:
             2134          (I) on the portion of the bar structure that is separated by the partition described in
             2135      Subsection (1)(a)(i)(B); or


             2136          (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
             2137      structure in a manner visible to a patron sitting at the bar structure;
             2138          (ii) is not operational as of May 12, 2009, if:
             2139          (A) a person applying for a full-service restaurant license:
             2140          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2141          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2142      defined by rule made by the commission; and
             2143          (III) is issued the full-service restaurant license by no later than December 31, 2009;
             2144      and
             2145          (B) once constructed, the licensed premises has a bar structure described in Subsection
             2146      (1)(a)(i);
             2147          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
             2148          (iv) is not operational as of May 12, 2009, if:
             2149          (A) a person applying for a full-service restaurant license:
             2150          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2151          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2152      defined by rule made by the commission; and
             2153          (III) is issued a full-service restaurant license by no later than December 31, 2009; and
             2154          (B) once constructed, the licensed premises has a bar structure with no patron seating.
             2155          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2156      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2157      grandfathered bar structure, as defined by rule made by the commission.
             2158          (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2159      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             2160          (2) "Seating grandfathered bar structure" means:
             2161          (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
             2162          (b) a bar structure grandfathered under Section 32B-6-409 .
             2163          Section 30. Section 32B-6-203 (Effective 07/01/11) is amended to read:
             2164           32B-6-203 (Effective 07/01/11). Commission's power to issue full-service
             2165      restaurant license.
             2166          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of


             2167      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             2168      full-service restaurant license from the commission in accordance with this part.
             2169          (2) The commission may issue a full-service restaurant license to establish full-service
             2170      restaurant licensed premises at places and in numbers the commission considers proper for the
             2171      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             2172      operated as a full-service restaurant.
             2173          (3) Subject to Section 32B-1-201 :
             2174          [(3)] (a) The commission may not issue a total number of full-service restaurant
             2175      licenses that at any time exceeds the number determined by dividing the population of the state
             2176      by [5,200] 4,925.
             2177          (b) The commission may issue a seasonal full-service restaurant license in accordance
             2178      with Section 32B-5-206 .
             2179          (c) (i) If the location, design, and construction of a hotel may require more than one
             2180      full-service restaurant sales location within the hotel to serve the public convenience, the
             2181      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             2182      many as three full-service restaurant locations within the hotel under one full-service restaurant
             2183      license if:
             2184          (A) the hotel has a minimum of 150 guest rooms; and
             2185          (B) the locations under the full-service restaurant license are:
             2186          (I) within the same hotel; and
             2187          (II) on premises that are managed or operated, and owned or leased, by the full-service
             2188      restaurant licensee.
             2189          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             2190      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             2191          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             2192      full-service restaurant license for premises that do not meet the proximity requirements of
             2193      Section 32B-1-202 .
             2194          (b) With respect to the premises of a full-service restaurant license issued by the
             2195      commission that undergoes a change of ownership, the commission shall waive or vary the
             2196      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             2197      full-service restaurant license to the new owner of the premises if:


             2198          (i) when a full-service restaurant license was issued to a previous owner, the premises
             2199      met the proximity requirements of Subsection 32B-1-202 (2);
             2200          (ii) the premises has had a full-service restaurant license at all times since the
             2201      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             2202      and
             2203          (iii) the community location was located within the proximity requirements of
             2204      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             2205      Subsection (4)(b)(i) was issued.
             2206          Section 31. Section 32B-6-204 (Effective 07/01/11) is amended to read:
             2207           32B-6-204 (Effective 07/01/11). Specific licensing requirements for full-service
             2208      restaurant license.
             2209          (1) To obtain a full-service restaurant license a person shall comply with Chapter 5,
             2210      Part 2, Retail Licensing Process.
             2211          (2) (a) A full-service restaurant license expires on October 31 of each year.
             2212          (b) To renew a person's full-service restaurant license, a person shall comply with the
             2213      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2214      September 30.
             2215          (3) (a) The nonrefundable application fee for a full-service restaurant license is [$250]
             2216      $300.
             2217          (b) The initial license fee for a full-service restaurant license is [$1,750] $2,000.
             2218          (c) The renewal fee for a full-service restaurant license is in the following amount:
             2219      Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             2220          under $5,000                            [$750] $850
             2221          equals or exceeds $5,000 but less than $10,000        [$900] $1,050
             2222          equals or exceeds $10,000 but less than $25,000        [$1,250] $1,500
             2223          equals or exceeds $25,000                    [$1,500] $1,750
             2224          (4) The bond amount required for a full-service restaurant license is the penal sum of
             2225      $10,000.
             2226          Section 32. Section 32B-6-205 (Effective 07/01/11) is amended to read:
             2227           32B-6-205 (Effective 07/01/11). Specific operational requirements for a
             2228      full-service restaurant license.


             2229          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2230      Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
             2231      shall comply with this section.
             2232          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2233      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2234          (i) a full-service restaurant licensee;
             2235          (ii) individual staff of a full-service restaurant licensee; or
             2236          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
             2237      licensee.
             2238          (2) In addition to complying with Subsection 32B-5-301 (3), a full-service restaurant
             2239      licensee shall display in a prominent place in the restaurant a list of the types and brand names
             2240      of liquor being furnished through the full-service restaurant licensee's calibrated metered
             2241      dispensing system.
             2242          (3) In addition to complying with Section 32B-5-303 , a full-service restaurant licensee
             2243      shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2244          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
             2245      licensee's premises shall make a written beverage tab for each table or group that orders or
             2246      consumes an alcoholic product on the premises.
             2247          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2248      alcoholic product ordered or consumed.
             2249          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2250      of employment as a server with a full-service restaurant licensee.
             2251          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
             2252      the licensed premises on any day during the period that:
             2253          (i) begins at midnight; and
             2254          (ii) ends at [11:59] 11:29 a.m.
             2255          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
             2256      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer.
             2257          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
             2258      business from the sale of food, which does not include:
             2259          (a) mix for an alcoholic product; or


             2260          (b) a service charge.
             2261          (8) (a) A full-service restaurant may not sell, offer for sale, or furnish an alcoholic
             2262      product except in connection with an order for food prepared, sold, and furnished at the
             2263      licensed premises.
             2264          (b) A full-service restaurant shall maintain on the licensed premises adequate culinary
             2265      facilities for food preparation and dining accommodations.
             2266          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2267      more than two alcoholic products of any kind at a time before the patron.
             2268          (b) A patron may not have more than one spirituous liquor drink at a time before the
             2269      patron.
             2270          (c) An individual portion of wine is considered to be one alcoholic product under
             2271      Subsection (9)(a).
             2272          (10) A patron may consume an alcoholic product only:
             2273          (a) at:
             2274          (i) the patron's table;
             2275          (ii) a counter; or
             2276          (iii) a seating grandfathered bar structure; and
             2277          (b) where food is served.
             2278          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             2279      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2280      structure that is not a seating grandfathered bar structure.
             2281          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2282      may:
             2283          (i) sit;
             2284          (ii) be furnished an alcoholic product; and
             2285          (iii) consume an alcoholic product.
             2286          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2287      full-service restaurant licensee may not permit a minor to, and a minor may not:
             2288          (i) sit; or
             2289          (ii) consume food or beverages.
             2290          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed


             2291      by a full-service restaurant licensee:
             2292          (A) as provided in Subsection 32B-5-308 (2); or
             2293          (B) to perform maintenance and cleaning services during an hour when the full-service
             2294      restaurant licensee is not open for business.
             2295          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2296      remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
             2297      premises in which the minor is permitted to be.
             2298          (12) Except as provided in Subsection 32B-5-307 (3), a full-service restaurant licensee
             2299      may dispense an alcoholic product only if:
             2300          (a) the alcoholic product is dispensed from:
             2301          (i) a grandfathered bar structure;
             2302          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2303      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2304      12, 2009; or
             2305          (iii) an area that is:
             2306          (A) separated from an area for the consumption of food by a patron by a solid,
             2307      [opaque] translucent, permanent structural barrier such that the facilities for the storage or
             2308      dispensing of an alcoholic product are:
             2309          (I) not readily visible to a patron; and
             2310          (II) not accessible by a patron; and
             2311          (B) apart from an area used:
             2312          (I) for dining;
             2313          (II) for staging; or
             2314          (III) as a lobby or waiting area;
             2315          (b) the full-service restaurant licensee uses an alcoholic product that is:
             2316          (i) stored in an area described in Subsection (12)(a); or
             2317          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2318          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2319      [package] container;
             2320          (B) the unopened [package] container is taken to an area described in Subsection
             2321      (12)(a) before it is opened; and


             2322          (C) once opened, the [package] container is stored in an area described in Subsection
             2323      (12)(a); and
             2324          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2325      area described in Subsection (12)(a).
             2326          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
             2327      charge or fee made in connection with the sale, service, or consumption of liquor including:
             2328          (a) a set-up charge;
             2329          (b) a service charge; or
             2330          (c) a chilling fee.
             2331          Section 33. Section 32B-6-302 (Effective 07/01/11) is amended to read:
             2332           32B-6-302 (Effective 07/01/11). Definitions.
             2333          [For purposes of this part, wine]
             2334          As used in this part:
             2335          (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2336      limited-service restaurant licensee that:
             2337          (i) as of May 11, 2009, has:
             2338          (A) patron seating at the bar structure;
             2339          (B) a partition at one or more locations on the bar structure that is along:
             2340          (I) the width of the bar structure; or
             2341          (II) the length of the bar structure; and
             2342          (C) facilities for the dispensing or storage of an alcoholic product:
             2343          (I) on the portion of the bar structure that is separated by the partition described in
             2344      Subsection (1)(a)(i)(B); or
             2345          (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
             2346      structure in a manner visible to a patron sitting at the bar structure;
             2347          (ii) is not operational as of May 12, 2009, if:
             2348          (A) a person applying for a limited-service restaurant license:
             2349          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2350          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2351      defined by rule made by the commission; and
             2352          (III) is issued the limited-service restaurant license by no later than December 31,


             2353      2009; and
             2354          (B) once constructed, the licensed premises has a bar structure described in Subsection
             2355      (1)(a)(i);
             2356          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
             2357          (iv) is not operational as of May 12, 2009, if:
             2358          (A) a person applying for a limited-service restaurant license:
             2359          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2360          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2361      defined by rule made by the commission; and
             2362          (III) is issued a limited-service restaurant license by no later than December 31, 2009;
             2363      and
             2364          (B) once constructed, the licensed premises has a bar structure with no patron seating.
             2365          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2366      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2367      grandfathered bar structure, as defined by rule made by the commission.
             2368          (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2369      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             2370          (2) "Seating grandfathered bar structure" means:
             2371          (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
             2372          (b) a bar structure grandfathered under Section 32B-6-409 .
             2373          (3) "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211
             2374      and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner of
             2375      wine containing not less than 7% and not more than 24% of alcohol by volume:
             2376          [(1)] (a) sparkling and carbonated wine;
             2377          [(2)] (b) wine made from condensed grape must;
             2378          [(3)] (c) wine made from other agricultural products than the juice of sound, ripe
             2379      grapes;
             2380          [(4)] (d) imitation wine;
             2381          [(5)] (e) compounds sold as wine;
             2382          [(6)] (f) vermouth;
             2383          [(7)] (g) cider;


             2384          [(8)] (h) perry; and
             2385          [(9)] (i) sake.
             2386          Section 34. Section 32B-6-303 (Effective 07/01/11) is amended to read:
             2387           32B-6-303 (Effective 07/01/11). Commission's power to issue limited-service
             2388      restaurant license.
             2389          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2390      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
             2391      obtain a limited-service restaurant license from the commission in accordance with this part.
             2392          (2) (a) The commission may issue a limited-service restaurant license to establish
             2393      limited-service restaurant licensed premises at places and in numbers the commission considers
             2394      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             2395      beer on premises operated as a limited-service restaurant.
             2396          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             2397      following on the licensed premises of a limited-service restaurant licensee:
             2398          (i) spirituous liquor; or
             2399          (ii) a flavored malt beverage.
             2400          (3) Subject to Section 32B-1-201 :
             2401          [(3)] (a) The commission may not issue a total number of limited-service restaurant
             2402      licenses that at any time exceeds the number determined by dividing the population of the state
             2403      by [9,300] 8,373.
             2404          (b) The commission may issue a seasonal limited-service restaurant license in
             2405      accordance with Section 32B-5-206 .
             2406          (c) (i) If the location, design, and construction of a hotel may require more than one
             2407      limited-service restaurant sales location within the hotel to serve the public convenience, the
             2408      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             2409      limited-service restaurant locations within the hotel under one limited-service restaurant license
             2410      if:
             2411          (A) the hotel has a minimum of 150 guest rooms; and
             2412          (B) the locations under the limited-service restaurant license are:
             2413          (I) within the same hotel; and
             2414          (II) on premises that are managed or operated, and owned or leased by the


             2415      limited-service restaurant licensee.
             2416          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             2417      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             2418      furnished.
             2419          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             2420      limited-service restaurant license for premises that do not meet the proximity requirements of
             2421      Section 32B-1-202 .
             2422          (b) With respect to the premises of a limited-service restaurant license issued by the
             2423      commission that undergoes a change of ownership, the commission shall waive or vary the
             2424      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             2425      limited-service restaurant license to the new owner of the premises if:
             2426          (i) when a limited-service restaurant license was issued to a previous owner, the
             2427      premises met the proximity requirements of Subsection 32B-1-202 (2);
             2428          (ii) the premises has had a limited-service restaurant license at all times since the
             2429      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             2430      variance; and
             2431          (iii) the community location was located within the proximity requirements of
             2432      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             2433      described in Subsection (4)(b)(i) was issued.
             2434          Section 35. Section 32B-6-304 (Effective 07/01/11) is amended to read:
             2435           32B-6-304 (Effective 07/01/11). Specific licensing requirements for limited-service
             2436      restaurant license.
             2437          (1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
             2438      Part 2, Retail Licensing Process.
             2439          (2) (a) A limited-service restaurant license expires on October 31 of each year.
             2440          (b) To renew a person's limited-service restaurant license, a person shall comply with
             2441      the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2442      September 30.
             2443          (3) (a) The nonrefundable application fee for a limited-service restaurant license is
             2444      [$250] $300.
             2445          (b) The initial license fee for a limited-service restaurant license is [$500] $750.


             2446          (c) The renewal fee for a limited-service restaurant license is [$300] $550.
             2447          (4) The bond amount required for a limited-service restaurant license is the penal sum
             2448      of $5,000.
             2449          Section 36. Section 32B-6-305 (Effective 07/01/11) is amended to read:
             2450           32B-6-305 (Effective 07/01/11). Specific operational requirements for a
             2451      limited-service restaurant license.
             2452          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2453      Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
             2454      licensee shall comply with this section.
             2455          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2456      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2457          (i) a limited-service restaurant licensee;
             2458          (ii) individual staff of a limited-service restaurant licensee; or
             2459          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
             2460      licensee.
             2461          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
             2462      for sale, furnish, or allow consumption of:
             2463          (i) spirituous liquor; or
             2464          (ii) a flavored malt beverage.
             2465          (b) A product listed in Subsection (2)(a) may not be on the premises of a
             2466      limited-service restaurant licensee except for use:
             2467          (i) as a flavoring on a dessert; and
             2468          (ii) in the preparation of a flaming food dish, drink, or dessert.
             2469          (3) In addition to complying with Section 32B-5-303 , a limited-service restaurant
             2470      licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2471          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
             2472      licensee's premises shall make a written beverage tab for each table or group that orders or
             2473      consumes an alcoholic product on the premises.
             2474          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2475      alcoholic product ordered or consumed.
             2476          (5) A person's willingness to serve an alcoholic product may not be made a condition


             2477      of employment as a server with a limited-service restaurant licensee.
             2478          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
             2479      or heavy beer at the licensed premises on any day during the period that:
             2480          (i) begins at midnight; and
             2481          (ii) ends at [11:59] 11:29 a.m.
             2482          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
             2483      the hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer.
             2484          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
             2485      restaurant business from the sale of food, which does not include a service charge.
             2486          (8) (a) A limited-service restaurant may not sell, offer for sale, or furnish an alcoholic
             2487      product except in connection with an order for food prepared, sold, and furnished at the
             2488      licensed premises.
             2489          (b) A limited-service restaurant shall maintain on the licensed premises adequate
             2490      culinary facilities for food preparation and dining accommodations.
             2491          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2492      more than two alcoholic products of any kind at a time before the patron.
             2493          (b) An individual portion of wine is considered to be one alcoholic product under
             2494      Subsection (9)(a).
             2495          (10) A patron may consume an alcoholic product only:
             2496          (a) at:
             2497          (i) the patron's table;
             2498          (ii) a counter; or
             2499          (iii) a seating grandfathered bar structure; and
             2500          (b) where food is served.
             2501          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             2502      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2503      structure that is not a seating grandfathered bar structure.
             2504          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2505      may:
             2506          (i) sit;
             2507          (ii) be furnished an alcoholic product; and


             2508          (iii) consume an alcoholic product.
             2509          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2510      limited-service restaurant licensee may not permit a minor to, and a minor may not:
             2511          (i) sit; or
             2512          (ii) consume food or beverages.
             2513          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2514      by a limited-service restaurant licensee:
             2515          (A) as provided in Subsection 32B-5-308 (2); or
             2516          (B) to perform maintenance and cleaning services during an hour when the
             2517      limited-service restaurant licensee is not open for business.
             2518          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2519      remaining or sitting at the bar structure en route to an area of a limited-service restaurant
             2520      licensee's premises in which the minor is permitted to be.
             2521          (12) Except as provided in Subsection 32B-5-307 (3), a limited-service restaurant
             2522      licensee may dispense an alcoholic product only if:
             2523          (a) the alcoholic product is dispensed from:
             2524          (i) a grandfathered bar structure;
             2525          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2526      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2527      12, 2009; or
             2528          (iii) an area that is:
             2529          (A) separated from an area for the consumption of food by a patron by a solid,
             2530      [opaque] translucent, permanent structural barrier such that the facilities for the storage or
             2531      dispensing of an alcoholic product are:
             2532          (I) not readily visible to a patron; and
             2533          (II) not accessible by a patron; and
             2534          (B) apart from an area used:
             2535          (I) for dining;
             2536          (II) for staging; or
             2537          (III) as a lobby or waiting area;
             2538          (b) the limited-service restaurant licensee uses an alcoholic product that is:


             2539          (i) stored in an area described in Subsection (12)(a); or
             2540          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2541          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2542      [package] container;
             2543          (B) the unopened [package] container is taken to an area described in Subsection
             2544      (12)(a) before it is opened; and
             2545          (C) once opened, the [package] container is stored in an area described in Subsection
             2546      (12)(a); and
             2547          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2548      area described in Subsection (12)(a).
             2549          (13) A limited-service restaurant licensee may state in a food or alcoholic product
             2550      menu a charge or fee made in connection with the sale, service, or consumption of wine or
             2551      heavy beer including:
             2552          (a) a set-up charge;
             2553          (b) a service charge; or
             2554          (c) a chilling fee.
             2555          Section 37. Section 32B-6-403 (Effective 07/01/11) is amended to read:
             2556           32B-6-403 (Effective 07/01/11). Commission's power to issue club license.
             2557          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2558      an alcoholic product on its premises as a club licensee, the person shall first obtain a club
             2559      license from the commission in accordance with this part.
             2560          (2) The commission may issue a club license to establish club licensed premises at
             2561      places and in numbers the commission considers proper for the storage, sale, offer for sale,
             2562      furnishing, and consumption of an alcoholic product on premises operated by a club licensee.
             2563          (3) Subject to Section 32B-1-201 :
             2564          [(3)] (a) The commission may not issue a total number of club licenses that at any time
             2565      exceeds the number determined by dividing the population of the state by 7,850.
             2566          (b) The commission may issue a seasonal club license in accordance with Section
             2567      32B-5-206 to:
             2568          (i) a dining club licensee; or
             2569          (ii) a social club licensee.


             2570          (c) (i) If the location, design, and construction of a hotel may require more than one
             2571      dining club license or social club license location within the hotel to serve the public
             2572      convenience, the commission may authorize as many as three club license locations within the
             2573      hotel under one club license if:
             2574          (A) the hotel has a minimum of 150 guest rooms; and
             2575          (B) all locations under the club license are:
             2576          (I) within the same hotel; and
             2577          (II) on premises that are managed or operated, and owned or leased, by the club
             2578      licensee.
             2579          (ii) A facility other than a hotel shall have a separate club license for each club license
             2580      location where an alcoholic product is sold, offered for sale, or furnished.
             2581          Section 38. Section 32B-6-404 (Effective 07/01/11) is amended to read:
             2582           32B-6-404 (Effective 07/01/11). Types of club license.
             2583          (1) To obtain an equity club license, in addition to meeting the other requirements of
             2584      this part, a person shall:
             2585          (a) whether incorporated or unincorporated:
             2586          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
             2587      purpose;
             2588          (ii) have members;
             2589          (iii) limit access to its licensed premises to a member or a guest of the member; and
             2590          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
             2591      to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
             2592          (b) own, maintain, or operate a substantial recreational facility in conjunction with a
             2593      club house such as:
             2594          (i) a golf course; or
             2595          (ii) a tennis facility;
             2596          (c) have at least 50% of the total membership having:
             2597          (i) full voting rights; and
             2598          (ii) an equal share of the equity of the club; and
             2599          (d) if there is more than one class of membership, have at least one class of
             2600      membership that entitles each member in that class to:


             2601          (i) full voting rights; and
             2602          (ii) an equal share of the equity of the club.
             2603          (2) To obtain a fraternal club license, in addition to meeting the other requirements of
             2604      this part, a person shall:
             2605          (a) whether incorporated or unincorporated:
             2606          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
             2607      purpose;
             2608          (ii) have members;
             2609          (iii) limit access to its licensed premises to a member or a guest of the member; and
             2610          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
             2611      to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
             2612          (b) have no capital stock;
             2613          (c) exist solely for:
             2614          (i) the benefit of its members and their beneficiaries; and
             2615          (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
             2616      patriotic, or religious purpose for the benefit of its members or the public, carried on through
             2617      voluntary activity of its members in their local lodges;
             2618          (d) have a representative form of government;
             2619          (e) have a lodge system in which:
             2620          (i) there is a supreme governing body;
             2621          (ii) subordinate to the supreme governing body are local lodges, however designated,
             2622      into which individuals are admitted as members in accordance with the laws of the fraternal;
             2623          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
             2624      least monthly; and
             2625          (iv) the local lodges regularly engage in one or more programs involving member
             2626      participation to implement the purposes of Subsection (2)(c); and
             2627          (f) own or lease a building or space in a building used for lodge activities.
             2628          (3) To obtain a dining club license, in addition to meeting the other requirements of
             2629      this part, a person shall:
             2630          (a) maintain at least [50%] the following percentages of its total club business from the
             2631      sale of food, not including[: (i)] mix for alcoholic products[;], or [(ii)] service charges[; and]:


             2632          (i) for a dining club license that is issued an original license on or after July 1, 2011,
             2633      60%;
             2634          (ii) for a dining club license that is issued on or before June 30, 2011:
             2635          (A) 50% on or before June 30, 2012; and
             2636          (B) 60% on and after July 1, 2012; and
             2637          (b) obtain a determination by the commission that the person will operate as a dining
             2638      club licensee, as part of which the commission may consider:
             2639          (i) the square footage and seating capacity of the premises;
             2640          (ii) what portion of the square footage and seating capacity will be used for a dining
             2641      area in comparison to the portion that will be used as a lounge or bar area;
             2642          (iii) whether full meals including appetizers, main courses, and desserts are served;
             2643          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
             2644      full meals, except a person who is located on the premise of a hotel or resort facility may use
             2645      the culinary facilities of the hotel or resort facility;
             2646          (v) whether the entertainment provided at the club is suitable for minors; and
             2647          (vi) the club management's ability to manage and operate a dining club license
             2648      including:
             2649          (A) management experience;
             2650          (B) past dining club licensee or restaurant management experience; and
             2651          (C) the type of management scheme used by the dining club license.
             2652          (4) To obtain a social club license, a person is required to meet the requirements of this
             2653      part except those listed in Subsection (1), (2), or (3).
             2654          (5) (a) At the time that the commission issues a club license, the commission shall
             2655      designate the type of club license for which the person qualifies.
             2656          (b) If requested by a club licensee, the commission may approve a change in the type of
             2657      club license in accordance with rules made by the commission.
             2658          (6) To the extent not prohibited by law, this part does not prevent a dining club
             2659      licensee or social club licensee from restricting access to the club's licensed premises on the
             2660      basis of an individual:
             2661          (a) paying a fee; or
             2662          (b) agreeing to being on a list of individuals who have access to the club's licensed


             2663      premises.
             2664          Section 39. Section 32B-6-405 (Effective 07/01/11) is amended to read:
             2665           32B-6-405 (Effective 07/01/11). Specific licensing requirements for club license.
             2666          (1) To obtain a club license, in addition to complying with Chapter 5, Part 2, Retail
             2667      Licensing Process, a person shall submit with the written application:
             2668          (a) (i) a statement as to whether the person is seeking to qualify as:
             2669          (A) an equity club licensee;
             2670          (B) a fraternal club licensee;
             2671          (C) a dining club licensee; or
             2672          (D) a social club licensee; and
             2673          (ii) evidence that the person meets the requirements for the type of club license for
             2674      which the person is applying;
             2675          (b) evidence that the person operates club premises where a variety of food is prepared
             2676      and served in connection with dining accommodations; and
             2677          (c) if the person is applying for an equity club license or fraternal club license, a copy
             2678      of the club's bylaws or house rules, and an amendment to those records.
             2679          (2) The commission may refuse to issue a club license to a person for an equity club
             2680      license or fraternal club license if the commission determines that a provision of the person's
             2681      bylaws or house rules, or amendments to those records is not:
             2682          (a) reasonable; and
             2683          (b) consistent with:
             2684          (i) the declared nature and purpose of the club licensee; and
             2685          (ii) the purposes of this part.
             2686          (3) (a) A club license expires on June 30 of each year.
             2687          (b) To renew a club license, a person shall comply with the requirements of Chapter 5,
             2688      Part 2, Retail Licensing Process, by no later than May 31.
             2689          (4) (a) The nonrefundable application fee for a club license is [$250] $300.
             2690          (b) The initial license fee for a club license is [$2,500] $2,750.
             2691          (c) The renewal fee for a club license is [$1,600] $2,000.
             2692          (5) The bond amount required for a full-service restaurant license is the penal sum of
             2693      $10,000.


             2694          Section 40. Section 32B-6-406 (Effective 07/01/11) is amended to read:
             2695           32B-6-406 (Effective 07/01/11). Specific operational requirements for a club
             2696      license.
             2697          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2698      Requirements, a club licensee and staff of the club licensee shall comply with this section.
             2699          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2700      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2701          (i) a club licensee;
             2702          (ii) individual staff of a club licensee; or
             2703          (iii) both a club licensee and staff of the club licensee.
             2704          (2) In addition to complying with Subsection 32B-5-301 (3), a club licensee shall
             2705      display in a prominent place in the club licensed premises a list of the types and brand names of
             2706      liquor being furnished through the club licensee's calibrated metered dispensing system.
             2707          (3) (a) In addition to complying with Section 32B-5-302 , a club licensee shall maintain
             2708      for a minimum of three years:
             2709          (i) a record required by Section 32B-5-302 ; and
             2710          (ii) a record maintained or used by the club licensee, as the department requires.
             2711          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
             2712      accordance with this Subsection (3).
             2713          (c) The department shall audit the records of a club licensee at least once annually.
             2714          (4) (a) A club licensee may not sell, offer for sale, or furnish liquor on the licensed
             2715      premises on any day during a period that:
             2716          (i) begins at 1 a.m.; and
             2717          (ii) ends at 9:59 a.m.
             2718          (b) A club licensee may sell, offer for sale, or furnish beer during the hours specified in
             2719      Part 7, On-premise Beer Retailer License, for an on-premise beer retailer license.
             2720          (c) (i) Notwithstanding Subsections (4)(a) and (b), a club licensee shall keep its
             2721      licensed premises open for one hour after the club licensee ceases the sale and furnishing of an
             2722      alcoholic product during which time a patron of the club licensee may finish consuming:
             2723          (A) a single drink containing spirituous liquor;
             2724          (B) a single serving of wine not exceeding five ounces;


             2725          (C) a single serving of heavy beer;
             2726          (D) a single serving of beer not exceeding 26 ounces; or
             2727          (E) a single serving of a flavored malt beverage.
             2728          (ii) A club licensee is not required to remain open:
             2729          (A) after all patrons have vacated the premises; or
             2730          (B) during an emergency.
             2731          [(d) A club licensee may not allow a patron to remain on the licensed premises of the
             2732      club licensee to consume an alcoholic product on the licensed premises during a period that:]
             2733          [(i) begins at 2 a.m.; and]
             2734          [(ii) ends at 9:59 a.m.]
             2735          (5) (a) A minor may not be admitted into, use, or be in:
             2736          (i) a lounge or bar area of the premises of:
             2737          (A) an equity club licensee;
             2738          (B) a fraternal club licensee; or
             2739          (C) a dining club licensee; or
             2740          (ii) the premises of:
             2741          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
             2742      or older; or
             2743          (B) a social club licensee, except to the extent provided for under Section 32B-6-406.1 .
             2744          (b) Notwithstanding Section 32B-5-308 , a club licensee may not employ a minor to:
             2745          (i) work in a lounge or bar area of an equity club licensee, fraternal club licensee, or
             2746      dining club licensee; or
             2747          (ii) handle an alcoholic product.
             2748          (c) Notwithstanding Section 32B-5-308 , a minor may not be employed on the licensed
             2749      premises of a social club licensee.
             2750          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
             2751      more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a
             2752      club licensee.
             2753          (6) A club licensee shall have food available at all times when an alcoholic product is
             2754      sold, offered for sale, furnished, or consumed on the licensed premises.
             2755          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have


             2756      more than two alcoholic products of any kind at a time before the patron.
             2757          (b) A patron may not have two spirituous liquor drinks before the club licensee patron
             2758      if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
             2759      spirituous liquor drink.
             2760          (c) An individual portion of wine is considered to be one alcoholic product under
             2761      Subsection (7)(a).
             2762          (8) A club licensee shall have available on the premises for a patron to review at the
             2763      time that the patron requests it, a written alcoholic product price list or a menu containing the
             2764      price of an alcoholic product sold, offered for sale, or furnished by the club licensee including:
             2765          (a) a set-up charge;
             2766          (b) a service charge; or
             2767          (c) a chilling fee.
             2768          (9) Subject to Section 32B-5-309 , a club licensee may not temporarily rent or
             2769      otherwise temporarily lease its premises to a person unless:
             2770          (a) the person to whom the club licensee rents or leases the premises agrees in writing
             2771      to comply with this title as if the person is the club licensee, except for a requirement related to
             2772      making or maintaining a record; and
             2773          (b) the club licensee takes reasonable steps to ensure that the person complies with this
             2774      section as provided in Subsection (9)(a).
             2775          (10) If a club licensee is an equity club licensee or fraternal club licensee, the club
             2776      licensee shall comply with Section 32B-6-407 .
             2777          (11) If a club licensee is a dining club licensee or social club licensee, the club licensee
             2778      shall comply with Section 32B-1-407 .
             2779          (12) (a) A club licensee shall own or lease premises suitable for the club licensee's
             2780      activities.
             2781          (b) A club licensee may not maintain licensed premises in a manner that barricades or
             2782      conceals the club licensee's operation.
             2783          Section 41. Section 32B-6-409 is enacted to read:
             2784          32B-6-409. Conversion from dining club license to different type of retail license.
             2785          (1) In accordance with this section, a dining club licensee may convert its dining club
             2786      license to a different type of retail license, including a different type of club license during the


             2787      time period:
             2788          (a) beginning on July 1, 2011; and
             2789          (b) ending on June 30, 2013.
             2790          (2) A dining club licensee may convert its dining license only to a retail license for
             2791      which the dining club licensee qualifies.
             2792          (3) The commission shall provide a procedure for a dining club to convert to a different
             2793      type of retail license as provided in this section by rule made in accordance with Title 63G,
             2794      Chapter 3, Utah Administrative Rulemaking Act.
             2795          (4) After a dining club license is converted to another type of retail license, the retail
             2796      licensee shall operate under the provisions relevant to the type of retail license held by the retail
             2797      licensee, except that, in accordance with Section 32B-1-201 , the retail license is not considered
             2798      in determining the total number of licenses available for that type of retail license.
             2799          (5) If a dining club license is converted to full-service restaurant license,
             2800      limited-service restaurant license, or beer-only restaurant license, the bar structure of the dining
             2801      club is considered:
             2802          (a) a seating grandfathered bar structure for purposes of a full-service restaurant license
             2803      or a limited-service restaurant license; or
             2804          (b) a grandfathered bar structure for purposes of a beer-only restaurant license.
             2805          Section 42. Section 32B-6-502 (Effective 07/01/11) is amended to read:
             2806           32B-6-502 (Effective 07/01/11). Definitions.
             2807          [Reserved]
             2808          As used in this chapter, "total passengers" means the number of total passengers in a
             2809      calendar year that is reported in the most current comprehensive annual financial report for the
             2810      airport in which an airport lounge is located.
             2811          Section 43. Section 32B-6-503 (Effective 07/01/11) is amended to read:
             2812           32B-6-503 (Effective 07/01/11). Commission's power to issue airport lounge
             2813      license.
             2814          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2815      an alcoholic product on its premises as an airport lounge licensee, the person shall first obtain
             2816      an airport lounge license from the commission in accordance with this part.
             2817          (2) The commission may issue an airport lounge license to establish airport lounge


             2818      licensed premises beyond the security point at an international airport and in the numbers the
             2819      commission considers proper for the storage, sale, offer for sale, furnishing, and consumption
             2820      of an alcoholic product on licensed premises operated as an airport lounge.
             2821          (3) (a) The commission may not issue a total number of airport lounge licenses for an
             2822      international airport that at any time exceed one [lounge per terminal plus one lounge per
             2823      concourse located beyond the security point at that international airport] airport lounge license
             2824      for each 2,500,000 of total passengers at the international airport.
             2825          (b) Notwithstanding Subsection (3)(a), the commission may not reduce the total
             2826      number of airport lounge licenses unless:
             2827          (i) the commission determines that the number of total passengers is reduced by more
             2828      than 25% from the last day on which the commission determined the total number of airport
             2829      lounge licenses allowed for that international airport under this Subsection (3); and
             2830          (ii) the reduction can be accomplished without the international airport terminating a
             2831      lease for an airport lounge before:
             2832          (A) the expiration of the lease;
             2833          (B) the airport lounge undergoes a change of ownership; or
             2834          (C) the airport lounge ceases operations.
             2835          Section 44. Section 32B-6-504 (Effective 07/01/11) is amended to read:
             2836           32B-6-504 (Effective 07/01/11). Specific licensing requirements for airport lounge
             2837      license.
             2838          (1) To obtain an airport lounge license, in addition to complying with Chapter 5, Part
             2839      2, Retail Licensing Process, a person shall submit with the written application:
             2840          (a) both the written consent of the local authority and the written consent of the airport
             2841      authority; and
             2842          (b) a copy of the sign proposed to be used by the airport lounge licensee on its licensed
             2843      premises to inform the public that alcoholic products are sold and consumed on the licensed
             2844      premises.
             2845          (2) (a) An airport lounge license expires on October 31 of each year.
             2846          (b) To renew a person's airport lounge license, a person shall comply with the renewal
             2847      requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             2848          (3) (a) The nonrefundable application fee for an airport lounge license is [$250] $300.


             2849          (b) The initial license fee for an airport lounge license is [$7,000] $8,000.
             2850          (c) The renewal fee for an airport lounge license is [$5,000] $6,000.
             2851          (4) The bond amount required for an airport lounge license is the penal sum of
             2852      $10,000.
             2853          (5) An airport lounge license is not subject to the proximity requirements of Section
             2854      32B-1-202 .
             2855          Section 45. Section 32B-6-603 (Effective 07/01/11) is amended to read:
             2856           32B-6-603 (Effective 07/01/11). Commission's power to issue on-premise banquet
             2857      license -- Contracts as host.
             2858          (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
             2859      of an alcoholic product in connection with the person's banquet and room service activities at
             2860      one of the following, the person shall first obtain an on-premise banquet license in accordance
             2861      with this part:
             2862          (i) a hotel;
             2863          (ii) a resort facility;
             2864          (iii) a sports center; or
             2865          (iv) a convention center.
             2866          (b) This part does not prohibit an alcoholic product on the premises of a person listed
             2867      in Subsection (1)(a) to the extent otherwise permitted by this title.
             2868          (c) This section does not prohibit a person who applies for an on-premise banquet
             2869      license to also apply for a package agency if otherwise qualified.
             2870          (2) The commission may issue an on-premise banquet license to establish on-premise
             2871      banquet licensees in the numbers the commission considers proper for the storage, sale, offer
             2872      for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
             2873      service activities operated by an on-premise banquet licensee.
             2874          (3) [The] Subject to Section 32B-1-201 , the commission may not issue a total number
             2875      of on-premise banquet licenses that at any time exceed the number determined by dividing the
             2876      population of the state by 30,000.
             2877          [(4) (a) As used in this Subsection (4), "grandfathered facility" means a facility:]
             2878          [(i) for which the commission issued an on-premise banquet license that is in effect on
             2879      May 11, 2009, on the basis that the facility is a convention center; and]


             2880          [(ii) that no longer qualifies as a convention center as defined in Section 32B-1-102
             2881      solely because it is in total less than 30,000 square feet.]
             2882          [(b) Notwithstanding the definition of "convention center" in Section 32B-1-102 , an
             2883      on-premise banquet license applicable to a grandfathered facility may be renewed until October
             2884      31, 2011, if the on-premise banquet licensee is qualified for an on-premise banquet license
             2885      except for the requirement that the facility be in total at least 30,000 square feet.]
             2886          [(5)] (4) Pursuant to a contract between the host of a banquet and an on-premise
             2887      banquet licensee:
             2888          (a) the host of the banquet may request an on-premise banquet licensee to provide an
             2889      alcoholic product served at the banquet; and
             2890          (b) an on-premise banquet licensee may provide an alcoholic product served at the
             2891      banquet.
             2892          [(6)] (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic
             2893      product:
             2894          (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
             2895      for an alcoholic product furnished at the banquet; or
             2896          (b) with a charge to a patron at the banquet.
             2897          Section 46. Section 32B-6-604 (Effective 07/01/11) is amended to read:
             2898           32B-6-604 (Effective 07/01/11). Specific licensing requirements for an on-premise
             2899      banquet license.
             2900          (1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part
             2901      2, Retail Licensing Process.
             2902          (2) (a) An on-premise banquet license expires on October 31 of each year.
             2903          (b) To renew a person's on-premise banquet license, a person shall comply with the
             2904      requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             2905          (3) (a) The nonrefundable application fee for an on-premise banquet license is [$250]
             2906      $300.
             2907          (b) The initial license fee for an on-premise banquet license is [$500] $750.
             2908          (c) The renewal fee for an on-premise banquet license is [$500] $750.
             2909          (4) The bond amount required for an on-premise banquet license is the penal sum of
             2910      $10,000.


             2911          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
             2912      political subdivision of the state it is not required to:
             2913          (a) pay an application fee, initial license fee, or renewal fee;
             2914          (b) obtain the written consent of the local authority;
             2915          (c) submit a copy of the applicant's current business license; or
             2916          (d) post a bond as specified by Section 32B-5-204 .
             2917          (6) Notwithstanding Subsection 32B-5-303 (3), the department may approve an
             2918      additional location in or on the licensed premises of an on-premise banquet licensee from
             2919      which the on-premise banquet licensee may store, sell, offer for sale, furnish, or allow the
             2920      consumption of an alcoholic product that is not included in its original application only:
             2921          (a) upon proper application by an on-premise banquet licensee; and
             2922          (b) in accordance with guidelines approved by the commission.
             2923          Section 47. Section 32B-6-605 (Effective 07/01/11) is amended to read:
             2924           32B-6-605 (Effective 07/01/11). Specific operational requirements for on-premise
             2925      banquet license.
             2926          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2927      Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
             2928      shall comply with this section.
             2929          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2930      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2931          (i) an on-premise banquet licensee;
             2932          (ii) individual staff of an on-premise banquet licensee; or
             2933          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
             2934          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301 (4) and
             2935      (5) for the entire premises of the hotel, resort facility, sports center, or convention center that is
             2936      the basis for the on-premise banquet license.
             2937          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
             2938      shall provide the department with advance notice of a scheduled banquet in accordance with
             2939      rules made by the commission.
             2940          (b) Any of the following may conduct a random inspection of a banquet:
             2941          (i) an authorized representative of the commission or the department; or


             2942          (ii) a law enforcement officer.
             2943          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302 , but shall
             2944      make and maintain the records the commission or department requires.
             2945          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2946      accordance with this Subsection (4).
             2947          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
             2948      sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
             2949      location of the banquet.
             2950          (b) A host of a banquet, a patron, or a person other than the on-premise banquet
             2951      licensee or staff of the on-premise banquet licensee, may not remove an alcoholic product from
             2952      the premises of the banquet.
             2953          (c) Notwithstanding Section 32B-5-307 , a patron at a banquet may not bring an
             2954      alcoholic product into or onto, or remove an alcoholic product from the premises of a banquet.
             2955          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
             2956      the banquet following the conclusion of the banquet.
             2957          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
             2958          (i) destroy an opened and unused alcoholic product that is not saleable, under
             2959      conditions established by the department; and
             2960          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             2961          (A) opened and unused alcoholic product that is saleable; and
             2962          (B) unopened [package] container of an alcoholic product.
             2963          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed [package]
             2964      container of an alcoholic product not sold or consumed at a banquet, an on-premise banquet
             2965      licensee:
             2966          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
             2967      locked storage area; and
             2968          (ii) may use the alcoholic product at more than one banquet.
             2969          (7) Notwithstanding Section 32B-5-308 , an on-premise banquet licensee may not
             2970      employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
             2971      on-premise banquet licensee's banquet and room service activities.
             2972          (8) An on-premise banquet licensee may not sell, offer for sale, or furnish an alcoholic


             2973      product at a banquet or in connection with room service any day during a period that:
             2974          (a) begins at 1 a.m.; and
             2975          (b) ends at 9:59 a.m.
             2976          (9) An on-premise banquet licensee shall maintain at least 50% of its total annual
             2977      banquet gross receipts from the sale of food, not including:
             2978          (a) mix for an alcoholic product; and
             2979          (b) a charge in connection with the furnishing of an alcoholic product.
             2980          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
             2981      more than two alcoholic products of any kind at a time before the patron.
             2982          (b) A patron may not have more than one spirituous liquor drink at a time before the
             2983      patron.
             2984          (c) An individual portion of wine is considered to be one alcoholic product under
             2985      Subsection (10)(a).
             2986          (11) (a) An on-premise banquet licensee shall supervise and direct a person involved in
             2987      the sale, offer for sale, or furnishing of an alcoholic product.
             2988          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             2989      shall complete an alcohol training and education seminar.
             2990          (12) A staff person of an on-premise banquet licensee shall remain at the banquet at all
             2991      times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
             2992      banquet.
             2993          (13) (a) Room service of an alcoholic product to a guest room of a hotel or resort
             2994      facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
             2995      guest in the guest room.
             2996          (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
             2997          [(c) An on-premise banquet licensee may only provide an alcoholic product for room
             2998      service in a sealed package.]
             2999          Section 48. Section 32B-6-702 (Effective 07/01/11) is amended to read:
             3000           32B-6-702 (Effective 07/01/11). Definitions.
             3001          [Reserved]
             3002          As used in this part, "recreational amenity" is defined by the commission by rule made
             3003      in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. A rule made


             3004      under this section shall define "recreational amenity" to be one or more of the following or an
             3005      activity substantially similar to one of the following:
             3006          (1) a billiard parlor;
             3007          (2) a pool parlor;
             3008          (3) a bowling facility;
             3009          (4) a golf course;
             3010          (5) miniature golf;
             3011          (6) a golf driving range; or
             3012          (7) a tennis club.
             3013          Section 49. Section 32B-6-703 (Effective 07/01/11) is amended to read:
             3014           32B-6-703 (Effective 07/01/11). Commission's power to issue on-premise beer
             3015      retailer license.
             3016          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             3017      beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise
             3018      beer retailer license from the commission in accordance with this part.
             3019          (2) (a) The commission may issue an on-premise beer retailer license to establish
             3020      on-premise beer retailer licensed premises at places and in numbers as the commission
             3021      considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on
             3022      premises operated as an on-premise beer retailer.
             3023          (b) At the time that the commission issues an on-premise beer retailer license, the
             3024      commission shall designate whether the on-premise beer retailer is a tavern.
             3025          (c) The commission may change its designation of whether an on-premise beer retailer
             3026      is a tavern in accordance with rules made by the commission.
             3027          (d) (i) In determining whether an on-premise beer retailer is a tavern, the commission
             3028      shall determine whether the on-premise beer retailer will engage primarily in the retail sale of
             3029      beer for consumption on the establishment's premises.
             3030          (ii) In making a determination under this Subsection (2)(d), the commission shall
             3031      consider:
             3032          (A) whether the on-premise beer retailer will operate as one of the following:
             3033          (I) a beer bar;
             3034          (II) a parlor;


             3035          (III) a lounge;
             3036          (IV) a cabaret; or
             3037          (V) a nightclub;
             3038          (B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
             3039          (I) whether the on-premise beer retailer will sell food in the establishment; and
             3040          (II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer
             3041      will exceed the revenue of the sale of food;
             3042          (C) whether full meals including appetizers, main courses, and desserts will be served;
             3043          (D) the square footage and seating capacity of the premises;
             3044          (E) what portion of the square footage and seating capacity will be used for a dining
             3045      area in comparison to the portion that will be used as a lounge or bar area;
             3046          (F) whether the person will maintain adequate on-premise culinary facilities to prepare
             3047      full meals, except a person that is located on the premises of a hotel or resort facility may use
             3048      the culinary facilities of the hotel or resort facility;
             3049          (G) whether the entertainment provided on the premises of the beer retailer will be
             3050      suitable for minors; and
             3051          (H) the beer retailer management's ability to manage and operate an on-premise beer
             3052      retailer license including:
             3053          (I) management experience;
             3054          (II) past beer retailer management experience; and
             3055          (III) the type of management scheme that will be used by the beer retailer.
             3056          (e) On or after March 1, 2012:
             3057          (i) To be licensed as an on-premise beer retailer that is not a tavern, a person shall
             3058      maintain at least 70% of its total gross revenues from a recreational amenity on or directly
             3059      adjoining the licensed premises of the beer retailer.
             3060          (ii) The commission may not license a person as an on-premise beer retailer if the
             3061      person does not:
             3062          (A) meet the requirements of Subsection (2)(e); or
             3063          (B) operate as a tavern.
             3064          (iii) (A) A person licensed as an on-premise beer retailer as of July 1, 2011, shall notify
             3065      the department by no later than August 1, 2011, whether the person will seek to be licensed as


             3066      a beer-only restaurant licensee effective March 1, 2012.
             3067          (B) If an on-premise beer retailer fails to notify the department as required by
             3068      Subsection (2)(e)(i)(A), the on-premise beer retailer's license expires as of February 29, 2012,
             3069      and to operate as an on-premise beer retailer after February 29, 2012, the on-premise beer
             3070      retailer is required to apply as a new licensee.
             3071          (3) Subject to Section 32B-1-201 :
             3072          [(3)] (a) The commission may not issue a total number of on-premise beer retailer
             3073      licenses that are taverns that at any time exceeds the number determined by dividing the
             3074      population of the state by [30,500] 54,147.
             3075          (b) The commission may issue a seasonal on-premise beer retailer license for a tavern
             3076      in accordance with Section 32B-5-206 .
             3077          (4) (a) Unless otherwise provided in Subsection (4)(b):
             3078          (i) only one on-premise beer retailer license is required for each building or resort
             3079      facility owned or leased by the same person; and
             3080          (ii) a separate license is not required for each retail beer dispensing location in the
             3081      same building or on the same resort premises owned or operated by the same person.
             3082          (b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in the
             3083      building or resort facility operates in the same manner.
             3084          (ii) If each retail beer dispensing location does not operate in the same manner:
             3085          (A) one on-premise beer retailer license designated as a tavern is required for the
             3086      locations in the same building or on the same resort premises that operate as a tavern; and
             3087          (B) one on-premise beer retailer license is required for the locations in the same
             3088      building or on the same resort premises that do not operate as a tavern.
             3089          Section 50. Section 32B-6-705 (Effective 07/01/11) is amended to read:
             3090           32B-6-705 (Effective 07/01/11). Specific licensing requirements for on-premise
             3091      beer retailer license.
             3092          (1) To obtain an on-premise beer retailer license a person shall comply with Chapter 5,
             3093      Part 2, Retail Licensing Process, except that an on-premise beer retailer is required to carry
             3094      dramshop insurance coverage in accordance with Section 32B-5-201 only if the on-premise
             3095      beer retailer sells more than $5,000 of beer annually.
             3096          (2) (a) An on-premise beer retailer license expires on the last day of February each


             3097      year.
             3098          (b) To renew a person's on-premise beer retailer license, a person shall comply with the
             3099      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
             3100      31.
             3101          (3) (a) The nonrefundable application fee for an on-premise beer retailer license is
             3102      [$250] $300.
             3103          (b) (i) The initial license fee for an on-premise beer retailer license that is not a tavern
             3104      is [$150] $300.
             3105          (ii) The initial license fee for an on-premise beer retailer license that is a tavern is
             3106      [$1,250] $1,500.
             3107          (c) (i) The renewal fee for an on-premise beer retailer license that is not a tavern is
             3108      [$200] $350.
             3109          (ii) The renewal fee for an on-premise beer retailer license that is a tavern is [$1,000]
             3110      $1,250.
             3111          (4) The bond amount required for an on-premise beer retailer license is the penal sum
             3112      of $2,000.
             3113          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
             3114      political subdivision of the state it is not required to:
             3115          (a) pay an application fee, initial license fee, or renewal fee;
             3116          (b) obtain the written consent of the local authority;
             3117          (c) submit a copy of the applicant's current business license; or
             3118          (d) post a bond as specified by Section 32B-5-204 .
             3119          Section 51. Section 32B-6-706 (Effective 07/01/11) is amended to read:
             3120           32B-6-706 (Effective 07/01/11). Specific operational requirements for on-premise
             3121      beer retailer license.
             3122          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3123      Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply
             3124      with this section.
             3125          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             3126      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             3127          (i) an on-premise beer retailer;


             3128          (ii) individual staff of an on-premise beer retailer; or
             3129          (iii) both an on-premise beer retailer and staff of the on-premise beer retailer.
             3130          (2) (a) An on-premise beer retailer is not subject to Section 32B-5-302 , but shall make
             3131      and maintain the records the department requires.
             3132          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             3133      accordance with this Subsection (2).
             3134          (3) Notwithstanding Section 32B-5-303 , an on-premise beer retailer may not store or
             3135      sell liquor on its licensed premises.
             3136          (4) Beer sold in a sealed [package] container by an on-premise beer retailer may be
             3137      removed from the on-premise beer retailer premises in the sealed [package] container.
             3138          (5) [(a)] Only an on-premise beer retailer that operates as a tavern is subject to
             3139      [Subsection] Section 32B-5-309 [(1)].
             3140          [(b) An on-premise beer retailer is subject to Subsections 32B-5-309 (2) and (3)
             3141      regardless of whether it operates as a tavern.]
             3142          (6) (a) An on-premise beer retailer may not sell, offer for sale, or furnish beer at its
             3143      licensed premises during a period that:
             3144          (i) begins at 1 a.m.; and
             3145          (ii) ends at [9:59] 11:29 a.m.
             3146          (b) (i) Notwithstanding Subsection [(5)] (6)(a), a tavern shall remain open for one hour
             3147      after the tavern ceases the sale and furnishing of beer during which time a patron of the tavern
             3148      may finish consuming a single serving of beer not exceeding 26 ounces.
             3149          (ii) A tavern is not required to remain open:
             3150          (A) after all patrons have vacated the premises; or
             3151          (B) during an emergency.
             3152          [(c) A tavern may not allow a patron to remain on the licensed premises to consume
             3153      beer on the licensed premises during a period that:]
             3154          [(i) begins at 2 a.m.; and]
             3155          [(ii) ends at 9:59 a.m.]
             3156          (7) Notwithstanding Section 32B-5-308 , a minor may not be on the premises of a
             3157      tavern.
             3158          (8) (a) (i) An on-premise beer retailer may not purchase, acquire, possess for the


             3159      purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases
             3160      from:
             3161          (A) a beer wholesaler licensee; or
             3162          (B) a small brewer that manufactures the beer.
             3163          (ii) Violation of Subsection (8)(a) is a class A misdemeanor.
             3164          (b) (i) If an on-premise beer retailer purchases beer under this Subsection (8) from a
             3165      beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer
             3166      wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
             3167      in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
             3168      the department to sell to the off-premise beer retailer as provided in Section 32B-13-301 .
             3169          (ii) Violation of Subsection (8)(b)(i) is a class B misdemeanor.
             3170          (9) A tavern shall comply with Section 32B-1-407 .
             3171          Section 52. Section 32B-6-801 is enacted to read:
             3172     
Part 8. Reception Center License

             3173          32B-6-801. Title.
             3174          This part is known as "Reception Center License."
             3175          Section 53. Section 32B-6-802 is enacted to read:
             3176          32B-6-802. Definitions.
             3177          Reserved
             3178          Section 54. Section 32B-6-803 is enacted to read:
             3179          32B-6-803. Commission's power to issue reception center license.
             3180          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             3181      an alcoholic product on its premises as a reception center, the person shall first obtain a
             3182      reception center license from the commission in accordance with this part.
             3183          (2) The commission may issue a reception center license to establish reception center
             3184      licensed premises at places and in numbers the commission considers proper for the storage,
             3185      sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
             3186      as a reception center.
             3187          (3) Subject to Section 32B-1-201 , the commission may not issue a total number of
             3188      reception center licenses that at any time exceeds the number determined by dividing the
             3189      population of the state by 56,313.


             3190          (4) The commission may not issue a reception center license for premises that do not
             3191      meet the proximity requirements of Section 32B-1-202 .
             3192          Section 55. Section 32B-6-804 is enacted to read:
             3193          32B-6-804. Specific licensing requirements for reception center license.
             3194          (1) To obtain a reception center license a person shall comply with Chapter 5, Part 2,
             3195      Retail Licensing Process.
             3196          (2) (a) A reception center license expires on October 31 of each year.
             3197          (b) To renew a person's reception center license, a person shall comply with the
             3198      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             3199      September 30.
             3200          (3) (a) The nonrefundable application fee for a reception center license is $300.
             3201          (b) The initial license fee for a reception center license is $750.
             3202          (c) The renewal fee for a reception center license is $750.
             3203          (4) The bond amount required for a reception center license is the penal sum of
             3204      $10,000.
             3205          Section 56. Section 32B-6-805 is enacted to read:
             3206          32B-6-805. Specific operational requirements for a reception center license.
             3207          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3208      Requirements, a reception center licensee and staff of the reception center licensee shall
             3209      comply with this section.
             3210          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             3211      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             3212          (i) a reception center licensee;
             3213          (ii) individual staff of a reception center licensee; or
             3214          (iii) both a reception center licensee and staff of the reception center licensee.
             3215          (2) In addition to complying with Section 32B-5-303 , a reception center licensee shall
             3216      store an alcoholic product in a storage area described in Subsection (15)(a).
             3217          (3) (a) For the purpose described in Subsection (3)(b), a reception center licensee shall
             3218      provide the following with advance notice of a scheduled event in accordance with rules made
             3219      by the commission:
             3220          (i) the department; and


             3221          (ii) the local law enforcement agency responsible for the enforcement of this title in the
             3222      jurisdiction where the reception center is located.
             3223          (b) Any of the following may conduct a random inspection of an event:
             3224          (i) an authorized representative of the commission or the department; or
             3225          (ii) a law enforcement officer.
             3226          (4) (a) Except as otherwise provided in this title, a reception center licensee may sell,
             3227      offer for sale, or furnish an alcoholic product at an event only for consumption at the reception
             3228      center.
             3229          (b) A host of an event, a patron, or a person other than the reception center licensee or
             3230      staff of the reception center licensee, may not remove an alcoholic product from the reception
             3231      center.
             3232          (c) Notwithstanding Section 32B-5-307 , a patron at an event may not bring an
             3233      alcoholic product into or onto, or remove an alcoholic product from, the reception center.
             3234          (5) (a) A reception center licensee may not leave an unsold alcoholic product at an
             3235      event following the conclusion of the event.
             3236          (b) At the conclusion of an event, a reception center licensee shall:
             3237          (i) destroy an opened and unused alcoholic product that is not saleable, under
             3238      conditions established by the department; and
             3239          (ii) return to the reception center licensee's approved locked storage area any:
             3240          (A) opened and unused alcoholic product that is saleable; and
             3241          (B) unopened container of an alcoholic product.
             3242          (c) Except as provided in Subsection (5)(b) with regard to an open or sealed container
             3243      of an alcoholic product not sold or consumed at an event, a reception center licensee:
             3244          (i) shall store the alcoholic product in accordance with Subsection (2); and
             3245          (ii) may use the alcoholic product at more than one event.
             3246          (6) Notwithstanding Section 32B-5-308 , a reception center licensee may not employ a
             3247      minor in connection with an event at the reception center at which food is not made available.
             3248          (7) A person's willingness to serve an alcoholic product may not be made a condition
             3249      of employment as a server with a reception center licensee.
             3250          (8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             3251      product at the licensed premises on any day during the period that:


             3252          (a) begins at 1 a.m.; and
             3253          (b) ends at 9:59 a.m.
             3254          (9) A reception center licensee may not maintain in excess of 30% of its total annual
             3255      receipts from the sale of an alcoholic product, which includes:
             3256          (a) mix for an alcoholic product; or
             3257          (b) a charge in connection with the furnishing of an alcoholic product.
             3258          (10) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             3259      product at an event at which a minor is present unless the reception center licensee makes food
             3260      available at all times when an alcoholic product is sold, offered for sale, furnished, or
             3261      consumed during the event.
             3262          (11) (a) Subject to the other provisions of this Subsection (11), a patron may not have
             3263      more than two alcoholic products of any kind at a time before the patron.
             3264          (b) An individual portion of wine is considered to be one alcoholic product under
             3265      Subsection (11)(a).
             3266          (12) (a) A reception center licensee shall supervise and direct a person involved in the
             3267      sale, offer for sale, or furnishing of an alcoholic product.
             3268          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             3269      shall complete an alcohol training and education seminar.
             3270          (13 A staff person of a reception center licensee shall remain at an event at all times
             3271      when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.
             3272          (14) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             3273      product to a patron, and a patron may not consume an alcoholic product at a bar structure.
             3274          (15) Except as provided in Subsection (16), a reception center licensee may dispense
             3275      an alcoholic product only if:
             3276          (a) the alcoholic product is dispensed from an area that is:
             3277          (i) separated from an area for the consumption of food by a patron by a solid,
             3278      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             3279      an alcoholic product are:
             3280          (A) not readily visible to a patron; and
             3281          (B) not accessible by a patron; and
             3282          (ii) apart from an area used:


             3283          (A) for staging; or
             3284          (B) as a lobby or waiting area;
             3285          (b) the reception center licensee uses an alcoholic product that is:
             3286          (i) stored in an area described in Subsection (15)(a); or
             3287          (ii) in an area not described in Subsection (15)(a) on the licensed premises and:
             3288          (A) immediately before the alcoholic product is dispensed it is in an unopened
             3289      container;
             3290          (B) the unopened container is taken to an area described in Subsection (15)(a) before it
             3291      is opened; and
             3292          (C) once opened, the container is stored in an area described in Subsection (15)(a); and
             3293          (c) any instrument or equipment used to dispense an alcoholic product is located in an
             3294      area described in Subsection (15)(a).
             3295          (16) A reception center licensee may dispense an alcoholic product from a mobile
             3296      serving area that:
             3297          (a) is moved only by staff of the reception center licensee;
             3298          (b) is capable of being moved by only one individual; and
             3299          (c) is no larger than 6 feet long and 30 inches wide.
             3300          (17) (a) A reception center licensee may not have an event on the licensed premises
             3301      except pursuant to a contract between a third party host of the event and the reception center
             3302      licensee under which the reception center licensee provides an alcoholic product sold, offered
             3303      for sale, or furnished at an event.
             3304          (b) At an event, a reception center licensee may furnish an alcoholic product:
             3305          (i) without charge to a patron, except that the third party host of the event shall pay for
             3306      an alcoholic product furnished at the event; or
             3307          (ii) with a charge to a patron at the event.
             3308          (18) A reception center licensee shall have culinary facilities that are:
             3309          (a) adequate to prepare a full meal; and
             3310          (b) (i) located on the licensed premises; or
             3311          (ii) under the same control as the reception center licensee.
             3312          Section 57. Section 32B-6-901 is enacted to read:
             3313     
Part
    9. Beer-only Restaurant License


             3314          32B-6-901. Title.
             3315          This part is known as "Beer-only Restaurant License."
             3316          Section 58. Section 32B-6-902 is enacted to read:
             3317          32B-6-902. Definitions.
             3318          (1) (a) As used in this part, "grandfathered bar structure" means a bar structure in a
             3319      licensed premises of a beer-only restaurant licensee that:
             3320          (i) as of January 1, 2011:
             3321          (A) is operational; and
             3322          (B) has facilities for the dispensing or storage of an alcoholic product that do not meet
             3323      the requirements of Subsection 32B-6-905 (12)(a)(ii);
             3324          (ii) is not operational as of January 1, 2011, if a person applying for the beer-only
             3325      restaurant license:
             3326          (A) has as of January 1, 2011, a building permit to construct the restaurant;
             3327          (B) is as of January 1, 2011, actively engaged in the construction of the restaurant, as
             3328      defined by rule made by the commission;
             3329          (C) is issued the beer-only license by no later than December 31, 2011; and
             3330          (D) once constructed, will have a bar structure that does not meet the requirements of
             3331      Subsection 32B-6-905 (12)(a)(ii); or
             3332          (iii) is a bar structure grandfathered under Section 32B-6-409 .
             3333          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             3334      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             3335      grandfathered bar structure, as defined by rule made by the commission.
             3336          (2) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             3337      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             3338          Section 59. Section 32B-6-903 is enacted to read:
             3339          32B-6-903. Commission's power to issue beer-only restaurant license.
             3340          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             3341      beer on its premises as a beer-only restaurant, the person shall first obtain a beer-only
             3342      restaurant license from the commission in accordance with this part.
             3343          (2) (a) The commission may issue a beer-only restaurant license to establish beer-only
             3344      restaurant licensed premises at places and in numbers the commission considers proper for the


             3345      storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as a
             3346      beer-only restaurant.
             3347          (b) A person may not sell, offer for sale, furnish, or allow the consumption of liquor on
             3348      the licensed premises of a beer-only restaurant licensee.
             3349          (3) (a) Only one beer-only restaurant license is required for each building or resort
             3350      facility owned or leased by the same person.
             3351          (b) A separate license is not required for each beer-only restaurant license dispensing
             3352      location in the same building or on the same resort premises owned or operated by the same
             3353      person.
             3354          (4) (a) Except as provided in Subsection (4)(b) or (c), the commission may not issue a
             3355      beer-only restaurant license for premises that do not meet the proximity requirements of
             3356      Section 32B-1-202 .
             3357          (b) With respect to the premises of a beer-only restaurant license issued by the
             3358      commission that undergoes a change of ownership, the commission shall waive or vary the
             3359      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             3360      beer-only restaurant license to the new owner of the premises if:
             3361          (i) when a beer-only restaurant license was issued to a previous owner, the premises
             3362      met the proximity requirements of Subsection 32B-1-202 (2);
             3363          (ii) the premises has had a beer-only restaurant license at all times since the beer-only
             3364      restaurant license described in Subsection (4)(b)(i) was issued without a variance; and
             3365          (iii) the community location was located within the proximity requirements of
             3366      Subsection 32B-1-202 (2) after the day on which the beer-only restaurant license described in
             3367      Subsection (4)(b)(i) was issued.
             3368          (c) The location of the licensed premises of an on-premise beer retailer who is licensed
             3369      as of July 1, 2011, is grandfathered and not required to meet the proximity requirements of
             3370      Section 32B-1-202 if the on-premise beer retailer obtains a beer-only restaurant license by not
             3371      later than March 1, 2012. A location grandfathered under this Subsection (4)(c) is considered
             3372      grandfathered notwithstanding that the beer-only restaurant license undergoes a change of
             3373      ownership.
             3374          Section 60. Section 32B-6-904 is enacted to read:
             3375          32B-6-904. Specific licensing requirements for beer-only restaurant license.


             3376          (1) To obtain a beer-only restaurant license a person shall comply with Chapter 5, Part
             3377      2, Retail Licensing Process.
             3378          (2) (a) A beer-only restaurant license expires the last day of February of each year.
             3379          (b) To renew a person's beer-only restaurant license, a person shall comply with the
             3380      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
             3381      31.
             3382          (3) (a) The nonrefundable application fee for a beer-only restaurant license is $300.
             3383          (b) The initial license fee for a beer-only restaurant license is $750.
             3384          (c) The renewal fee for a beer-only restaurant license is $550.
             3385          (4) The bond amount required for a beer-only restaurant license is the penal sum of
             3386      $5,000.
             3387          Section 61. Section 32B-6-905 is enacted to read:
             3388          32B-6-905. Specific operational requirements for a beer-only restaurant license.
             3389          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3390      Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
             3391      shall comply with this section.
             3392          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             3393      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             3394          (i) a beer-only restaurant licensee;
             3395          (ii) individual staff of a beer-only restaurant licensee; or
             3396          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
             3397          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
             3398      sale, furnish, or allow consumption of liquor.
             3399          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
             3400          (i) as a flavoring on a dessert; and
             3401          (ii) in the preparation of a flaming food dish, drink, or dessert.
             3402          (3) In addition to complying with Section 32B-5-303 , a beer-only restaurant licensee
             3403      shall store beer in a storage area described in Subsection (12)(a).
             3404          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
             3405      make a written beverage tab for each table or group that orders or consumes an alcoholic
             3406      product on the premises.


             3407          (b) A beverage tab required by this Subsection (4) shall list the type and amount of
             3408      beer ordered or consumed.
             3409          (5) A person's willingness to serve beer may not be made a condition of employment as
             3410      a server with a beer-only restaurant licensee.
             3411          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer during the
             3412      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer.
             3413          (7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
             3414      business from the sale of food, which does not include a service charge.
             3415          (8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except in
             3416      connection with an order for food prepared, sold, and furnished at the licensed premises.
             3417          (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
             3418      facilities for food preparation and dining accommodations.
             3419          (9) A patron may not have more than two beers at a time before the patron.
             3420          (10) A patron may consume a beer only:
             3421          (a) at:
             3422          (i) the patron's table;
             3423          (ii) a grandfathered bar structure; or
             3424          (iii) a counter; and
             3425          (b) where food is served.
             3426          (11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
             3427      a patron, and a patron may not consume an alcoholic product at a bar structure.
             3428          (b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who
             3429      is 21 years of age or older may:
             3430          (i) sit;
             3431          (ii) be furnished a beer; and
             3432          (iii) consume a beer.
             3433          (c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
             3434      beer-only restaurant licensee may not permit a minor to, and a minor may not:
             3435          (i) sit; or
             3436          (ii) consume food or beverages.
             3437          (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a


             3438      beer-only restaurant licensee:
             3439          (A) as provided in Subsection 32B-5-308 (2); or
             3440          (B) to perform maintenance and cleaning services during an hour when the beer-only
             3441      restaurant licensee is not open for business.
             3442          (ii) A minor may momentarily pass by a grandfathered bar structure without remaining
             3443      or sitting at the bar structure en route to an area of a beer-only restaurant licensee's premises in
             3444      which the minor is permitted to be.
             3445          (12) A beer-only restaurant licensee may dispense a beer only if:
             3446          (a) the beer is dispensed from an area that is:
             3447          (i) a grandfathered bar structure; or
             3448          (ii) separated from an area for the consumption of food by a patron by a solid,
             3449      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             3450      an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
             3451      from an area used for dining, for staging, or as a lobby or waiting area;
             3452          (b) the beer-only restaurant licensee uses a beer that is:
             3453          (i) stored in an area described in Subsection (12)(a); or
             3454          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             3455          (A) immediately before the beer is dispensed it is in an unopened container;
             3456          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             3457      is opened; and
             3458          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             3459          (c) any instrument or equipment used to dispense the beer is located in an area
             3460      described in Subsection (12)(a).
             3461          Section 62. Section 32B-8-202 (Effective 07/01/11) is amended to read:
             3462           32B-8-202 (Effective 07/01/11). Specific licensing requirements for resort license.
             3463          (1) To obtain a resort license, in addition to complying with Chapter 5, Part 2, Retail
             3464      Licensing Process, a person shall submit with the written application:
             3465          (a) the current business license for each sublicense, if the business license is separate
             3466      from the person's business license;
             3467          (b) evidence:
             3468          (i) of proximity of the resort building to any community location, with proximity


             3469      requirements being governed by Section 32B-1-202 ;
             3470          (ii) that each of the four or more sublicense premises is entirely within the boundaries
             3471      of the resort building; and
             3472          (iii) that the building designated in the application as the resort building qualifies as a
             3473      resort building;
             3474          (c) a description and boundary map of the resort building;
             3475          (d) a description, floor plan, and boundary map of each sublicense premises
             3476      designating:
             3477          (i) any location at which the person proposes that an alcoholic product be stored; and
             3478          (ii) a designated location on the sublicense premises from which the person proposes
             3479      that an alcoholic product be sold, furnished, or consumed;
             3480          (e) evidence that the resort license person carries dramshop insurance coverage equal
             3481      to the sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both
             3482      the general resort license and each sublicense; and
             3483          (f) a signed consent form stating that the person will permit any authorized
             3484      representative of the commission, department, or any law enforcement officer to have
             3485      unrestricted right to enter the boundary of the resort building and each sublicense premises.
             3486          (2) (a) A resort license expires on October 31 of each year.
             3487          (b) To renew a person's resort license, the person shall comply with the requirements of
             3488      Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             3489          (3) (a) The nonrefundable application fee for a resort license is [$250] $300.
             3490          (b) The initial license fee for a resort license is calculated as follows:
             3491          (i) $10,000 if four sublicenses are being applied for under the resort license; or
             3492          (ii) if more than four sublicenses are being applied for under the resort license, the sum
             3493      of:
             3494          (A) $10,000; and
             3495          (B) $2,000 for each sublicense in excess of four sublicenses for which the person is
             3496      applying.
             3497          (c) The renewal fee for a resort license is $1,000 for each sublicense under the resort
             3498      license.
             3499          (4) (a) The bond amount required for a resort license is the penal sum of $25,000.


             3500          (b) A resort licensee is not required to have a separate bond for each sublicense, except
             3501      that the aggregate of the bonds posted by the resort licensee shall cover each sublicense under
             3502      the resort license.
             3503          (5) The commission may not issue a resort license for a resort building that does not
             3504      meet the proximity requirements of Section 32B-1-202 .
             3505          Section 63. Section 32B-8-204 (Effective 07/01/11) is amended to read:
             3506           32B-8-204 (Effective 07/01/11). Commission and department duties before issuing
             3507      resort license.
             3508          (1) Before the issuance of a resort license, the department shall comply with the
             3509      requirements of Subsection [ 32B-8-202 ] 32B-5-203 (1) in relation to the resort license and each
             3510      sublicense.
             3511          (2) Before issuing a resort license, in addition to considering the factors described in
             3512      Section 32B-8-202 , the commission shall:
             3513          (a) consider the resort license person's ability to manage and operate a resort license
             3514      and the ability of any individual who will act in a supervisory or managerial capacity for a
             3515      sublicense, including:
             3516          (i) past management experience;
             3517          (ii) past alcoholic product license experience; and
             3518          (iii) the type of management scheme to be used by the resort license person;
             3519          (b) consider the nature or type of:
             3520          (i) the person's business operation of the resort license; and
             3521          (ii) the business operation of each sublicense; and
             3522          (c) subject to Subsection (3), determine that each sublicense meets the requirements
             3523      imposed under the provisions applicable to each sublicense.
             3524          (3) (a) Subject to Subsection (3)(b), notwithstanding the requirements to obtain a retail
             3525      license under the provisions applicable to a sublicense, a sublicense of a resort license is not
             3526      subject to:
             3527          (i) a requirement to submit an application or renewal application that is separate from
             3528      the resort license application;
             3529          (ii) a requirement to carry public liability insurance or dramshop insurance coverage
             3530      that is separate from that carried by the resort licensee; or


             3531          (iii) a requirement to post a bond that is separate from the bond posted by the resort
             3532      licensee.
             3533          (b) If a resort licensee seeks to add a sublicense after its resort license is issued, the
             3534      resort licensee shall file with the department:
             3535          (i) a nonrefundable [$250] $300 application fee;
             3536          (ii) an initial license fee of [$2,000] $2,250, which is refundable if the sublicense is not
             3537      issued;
             3538          (iii) written consent of the local authority;
             3539          (iv) a copy of:
             3540          (A) the resort licensee's current business license; and
             3541          (B) the current business license for the sublicense, if the business licensee is separate
             3542      from the resort licensee's business license;
             3543          (v) evidence that the sublicense premises is entirely within the boundary of the resort
             3544      building;
             3545          (vi) a description, floor plan, and boundary map of the sublicense premises
             3546      designating:
             3547          (A) any location at which the person proposes that an alcoholic product be stored; and
             3548          (B) any designated location on the sublicense premises from which the person proposes
             3549      that an alcoholic product be sold, furnished, or consumed;
             3550          (vii) evidence that the person carries public liability insurance in an amount and form
             3551      satisfactory to the department;
             3552          (viii) evidence that the person carries dramshop insurance coverage in the amount
             3553      required by Section 32B-8-202 that covers the sublicense to be added;
             3554          (ix) a signed consent form stating that the resort licensee will permit any authorized
             3555      representative of the commission, department, or any law enforcement officer to have
             3556      unrestricted right to enter the sublicense premises;
             3557          (x) if the resort licensee is an entity, proper verification evidencing that a person who
             3558      signs the application is authorized to sign on behalf of the entity; and
             3559          (xi) any other information the commission or department may require.
             3560          Section 64. Section 32B-8-304 (Effective 07/01/11) is amended to read:
             3561           32B-8-304 (Effective 07/01/11). Specific operational requirements for resort spa


             3562      sublicense.
             3563          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3564      Requirements, a resort licensee, staff of the resort licensee, or a person otherwise related to a
             3565      resort spa sublicense shall comply with this section.
             3566          (b) Subject to Section 32B-8-502 , failure to comply as provided in Subsection (1)(a)
             3567      may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             3568      Enforcement Act, against:
             3569          (i) a retail licensee;
             3570          (ii) staff of the retail licensee;
             3571          (iii) a person otherwise related to a resort spa sublicense; or
             3572          (iv) any combination of the persons listed in this Subsection (1)(b).
             3573          [(2) A person operating under a resort spa sublicense shall display in a prominent place
             3574      in the resort spa a list of the types and brand names of liquor being furnished through its
             3575      calibrated metered dispensing system.]
             3576          [(3)] (2) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure
             3577      that a record required by this title is maintained, and a record is maintained or used for the
             3578      resort spa sublicense:
             3579          (i) as the department requires; and
             3580          (ii) for a minimum period of three years.
             3581          (b) A record is subject to inspection by an authorized representative of the commission
             3582      and the department.
             3583          (c) A resort licensee shall allow the department, through an auditor or examiner of the
             3584      department, to audit the records for a resort spa sublicense at the times the department
             3585      considers advisable.
             3586          (d) The department shall audit the records for a resort spa sublicense at least once
             3587      annually.
             3588          (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
             3589      accordance with this Subsection [(3)] (2).
             3590          [(4)] (3) (a) A person operating under a resort spa sublicense may not sell, offer for
             3591      sale, or furnish liquor at a resort spa during a period that:
             3592          (i) begins at 1 a.m.; and


             3593          (ii) ends at 9:59 a.m.
             3594          (b) A person operating under a resort spa sublicense may sell, offer for sale, or furnish
             3595      beer during the hours specified in Chapter 6, Part 7, On-premise Beer Retailer License, for an
             3596      on-premise beer retailer.
             3597          (c) (i) Notwithstanding Subsections [(4)] (3)(a) and (b), a resort spa shall remain open
             3598      for one hour after the resort spa ceases the sale and furnishing of an alcoholic product during
             3599      which time a person at the resort spa may finish consuming:
             3600          (A) a single drink containing spirituous liquor;
             3601          (B) a single serving of wine not exceeding five ounces;
             3602          (C) a single serving of heavy beer;
             3603          (D) a single serving of beer not exceeding 26 ounces; or
             3604          (E) a single serving of a flavored malt beverage.
             3605          (ii) A resort spa is not required to remain open:
             3606          (A) after all persons have vacated the resort spa sublicense premises; or
             3607          (B) during an emergency.
             3608          [(d) A person operating under a resort spa sublicense may not allow a person to remain
             3609      on the resort spa sublicense premises to consume an alcoholic product on the resort spa
             3610      sublicense premises during a period that:]
             3611          [(i) begins at 2 a.m.; and]
             3612          [(ii) ends at 9:59 a.m.]
             3613          [(5)] (4) A minor may not be admitted into, use, or be on:
             3614          (a) the sublicense premises of a resort spa unless accompanied by a person 21 years of
             3615      age or older; or
             3616          (b) a lounge or bar area of the resort spa sublicense premises.
             3617          [(6)] (5) A resort spa shall have food available at all times when an alcoholic product is
             3618      sold, offered for sale, furnished, or consumed on the resort spa sublicense premises.
             3619          [(7)] (6) (a) Subject to the other provisions of this Subsection [(7)] (6), a patron may
             3620      not have more than two alcoholic products of any kind at a time before the patron.
             3621          (b) A resort spa patron may not have two spirituous liquor drinks before the resort spa
             3622      patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
             3623      the other spirituous liquor drink.


             3624          (c) An individual portion of wine is considered to be one alcoholic product under this
             3625      Subsection [(7)] (6).
             3626          [(8)] (7) (a) An alcoholic product may only be consumed at a table or counter.
             3627          (b) An alcoholic product may not be served to or consumed by a patron at a bar.
             3628          [(9)] (8) (a) A person operating under a resort spa sublicense shall have available on
             3629      the resort spa sublicense premises for a patron to review at the time that the patron requests it, a
             3630      written alcoholic product price list or a menu containing the price of an alcoholic product sold
             3631      or furnished by the resort spa including:
             3632          (i) a set-up charge;
             3633          (ii) a service charge; or
             3634          (iii) a chilling fee.
             3635          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             3636      may be stated in food or alcoholic product menus including:
             3637          (i) a set-up charge;
             3638          (ii) a service charge; or
             3639          (iii) a chilling fee.
             3640          [(10)] (9) (a) A resort licensee shall own or lease premises suitable for the resort spa's
             3641      activities.
             3642          (b) A resort licensee may not maintain premises in a manner that barricades or conceals
             3643      the resort spa sublicense's operation.
             3644          [(11)] (10) Subject to the other provisions of this section, a person operating under a
             3645      resort spa sublicense may not sell an alcoholic product to or allow a person to be admitted to or
             3646      use the resort spa sublicense premises other than:
             3647          (a) a resident;
             3648          (b) a public customer who holds a valid customer card issued under Subsection [(13)]
             3649      (12); or
             3650          (c) an invitee.
             3651          [(12)] (11) A person operating under a resort spa sublicense may allow an individual to
             3652      be admitted to or use the resort spa sublicense premises as an invitee subject to the following
             3653      conditions:
             3654          (a) the individual must be previously authorized by one of the following who agrees to


             3655      host the individual as an invitee into the resort spa:
             3656          (i) a resident; or
             3657          (ii) a public customer as described in Subsection [(11)] (10);
             3658          (b) the individual has only those privileges derived from the individual's host for the
             3659      duration of the invitee's visit to the resort spa; and
             3660          (c) a resort licensee, resort spa, or staff of the resort licensee or resort spa may not enter
             3661      into an agreement or arrangement with a resident or public customer to indiscriminately host a
             3662      member of the general public into the resort spa as an invitee.
             3663          [(13)] (12) A person operating under a resort spa sublicense may issue a customer card
             3664      to allow an individual to enter and use the resort spa sublicense premises on a temporary basis
             3665      under the following conditions:
             3666          (a) the resort spa may not issue a customer card for a time period that exceeds three
             3667      weeks;
             3668          (b) the resort spa shall assess a fee to a public customer for a customer card;
             3669          (c) the resort spa may not issue a customer card to a minor; and
             3670          (d) a public customer may not host more than seven invitees at one time.
             3671          Section 65. Section 32B-8-401 (Effective 07/01/11) is amended to read:
             3672           32B-8-401 (Effective 07/01/11). Specific operational requirements for resort
             3673      license.
             3674          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3675      Requirements, a resort licensee, staff of the resort licensee, and a person otherwise operating
             3676      under a sublicense shall comply with this section.
             3677          (b) Subject to Section 32B-8-502 , failure to comply as provided in Subsection (1)(a)
             3678      may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             3679      Enforcement Act, against:
             3680          (i) a resort licensee;
             3681          (ii) individual staff of a resort licensee;
             3682          (iii) a person otherwise operating under a sublicense;
             3683          (iv) individual staff of a person otherwise operating under a sublicense; or
             3684          (v) any combination of the persons listed in this Subsection (1)(b).
             3685          (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product


             3686      except:
             3687          (i) on a sublicense premises;
             3688          (ii) pursuant to a permit issued under this title; or
             3689          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
             3690      6, Package Agency.
             3691          (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
             3692      provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
             3693          (i) if on a sublicense premises, in accordance with the operational requirements under
             3694      the provisions applicable to the sublicense, except as provided in Section 32B-8-402 ;
             3695          (ii) if under a permit issued under this title, in accordance with the operational
             3696      requirements under the provisions applicable to the permit; and
             3697          (iii) if as a package agency, in accordance with the contract with the department and
             3698      Chapter 2, Part 6, Package Agency.
             3699          (3) A resort licensee shall comply with Subsections 32B-5-301 (4) and (5) within the
             3700      boundary of the resort building.
             3701          (4) [(a) Subject to Subsection (4)(b), a] A resort licensee shall operate in a manner so
             3702      that at least 70% of the annual aggregate of the gross receipts related to the sale of food or
             3703      beverages for the resort license and each of its sublicenses is from the sale of food, not
             3704      including:
             3705          [(i)] (a) mix for an alcoholic product; and
             3706          [(ii)] (b) a charge in connection with the service of an alcoholic product.
             3707          [(b) In calculating the annual aggregate of the gross receipts described in Subsection
             3708      (4)(a), a resort licensee is not required to include in the calculation money from the sale of a
             3709      bottle of wine by the resort licensee or under a sublicense in excess of $250.]
             3710          (5) (a) A resort licensee shall supervise and direct a person involved in the sale, offer
             3711      for sale, or furnishing of an alcoholic product under a resort license.
             3712          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             3713      under a resort license shall complete the alcohol training and education seminar.
             3714          (6) (a) Room service of an alcoholic product to a lodging accommodation of a resort
             3715      licensee shall be provided in person by staff of a resort licensee only to an adult occupant in the
             3716      lodging accommodation.


             3717          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
             3718      by an occupant.
             3719          [(c) A resort licensee may only provide an alcoholic product for room service in a
             3720      sealed package.]
             3721          Section 66. Section 32B-8-402 (Effective 07/01/11) is amended to read:
             3722           32B-8-402 (Effective 07/01/11). Specific operational requirements for a
             3723      sublicense.
             3724          (1) A person operating under a sublicense is subject to the operational requirements
             3725      under the provisions applicable to the sublicense except that[,]:
             3726          (a) notwithstanding a requirement in the provisions applicable to the sublicense, a
             3727      person operating under the sublicense is not subject to a requirement that a certain percentage
             3728      of the gross receipts for the sublicense be from the sale of food, except to the extent that the
             3729      gross receipts for the sublicense are included in calculating the percentages under Subsection
             3730      32B-8-401 (4)[.]; and
             3731          (b) notwithstanding Section 32B-6-202 or 32B-6-302 , a bar structure in a licensed
             3732      premises operated under a full-service restaurant sublicense or limited-service restaurant
             3733      sublicense is considered a grandfathered bar structure if the resort license that includes the
             3734      full-service restaurant sublicense or limited-service restaurant sublicense is issued by no later
             3735      than December 31, 2010.
             3736          (2) Subject to Section 32B-8-502 , for purposes of interpreting an operational
             3737      requirement imposed by the provisions applicable to a sublicense:
             3738          (a) a requirement imposed on a person operating under a sublicense applies to the
             3739      resort licensee; and
             3740          (b) a requirement imposed on staff of a person operating under a sublicense applies to
             3741      staff of the resort licensee.
             3742          Section 67. Section 32B-8a-101 is enacted to read:
             3743     
CHAPTER 8a. TRANSFER OF RETAIL LICENSE ACT

             3744     
Part 1. General Provisions

             3745          32B-8a-101. Title.
             3746          This chapter is known as the "Transfer of Retail License Act."
             3747          Section 68. Section 32B-8a-102 is enacted to read:


             3748          32B-8a-102. Definitions.
             3749          As used in this chapter:
             3750          (1) "Business entity" means a corporation, partnership, limited liability company, sole
             3751      proprietorship, or similar entity.
             3752          (2) "Transfer fee" means a fee described in Section 32B-8a-303 .
             3753          (3) "Transferee" means a person who intends to hold a retail license after the transfer of
             3754      the retail license if the transfer is approved by the commission under this chapter.
             3755          (4) "Transferor" means a retail licensee who intends to transfer a retail license held by
             3756      the retail licensee if the transfer is approved by the commission under this chapter.
             3757          Section 69. Section 32B-8a-201 is enacted to read:
             3758     
Part 2. Transferability of Retail License

             3759          32B-8a-201. Transferability of retail license.
             3760          (1) (a) A retail license is separate from other property of a retail licensee.
             3761          (b) Notwithstanding Subsection (1)(a), the Legislature may terminate or modify the
             3762      existence of any type of retail license.
             3763          (c) Except as provided in this chapter, a person may not:
             3764          (i) transfer a retail license from one location to another location; or
             3765          (ii) sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
             3766      retail license to another person whether for monetary gain or not.
             3767          (d) If approved by the commission and subject to the requirements of this chapter, a
             3768      retail licensee may transfer a retail license:
             3769          (i) from the retail licensee to another person, regardless of whether it is for the same
             3770      premises; and
             3771          (ii) from one premises of the retail licensee to another premises of the retail licensee.
             3772          (2) The commission may not approve the transfer of a retail license that results in a
             3773      transferee holding a different type of retail license than is held by the transferor.
             3774          (3) The commission may not approve the transfer of a retail license if the transferee:
             3775          (a) is not eligible to hold the same type of retail license as the retail license to be
             3776      transferred at the premises to which the retail license would be transferred; or
             3777          (b) is delinquent in the payment of any of the following that arises in full or in part out
             3778      of the operation of a retail license:


             3779          (i) a tax, fee, or charge due under this title or Title 59, Revenue and Taxation; or
             3780          (ii) an amount due under Title 35A, Chapter 4, Employment Security Act.
             3781          Section 70. Section 32B-8a-202 is enacted to read:
             3782          32B-8a-202. Effect of transfer of ownership of business entity.
             3783          (1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
             3784      acquired by or transferred to one or more persons who did not hold the ownership of 51% of
             3785      those shares of stock on the date a retail license is issued to the corporation, the corporation
             3786      shall comply with this chapter to transfer the retail license to the corporation as if the
             3787      corporation is newly constituted.
             3788          (b) When there is a new general partner or when the ownership of 51% or more of the
             3789      capital or profits of a limited partnership is acquired by or transferred to one or more persons as
             3790      general or limited partners and who did not hold ownership of 51% or more of the capital or
             3791      profits of the limited partnership on the date a retail license is issued to the limited partnership,
             3792      the limited partnership shall comply with this chapter to transfer the retail license to the limited
             3793      partnership as if the limited partnership is newly constituted.
             3794          (c) When the ownership of 51% or more of the interests in a limited liability company
             3795      is acquired by or transferred to one or more persons as members who did not hold ownership of
             3796      51% or more of the interests in the limited liability company on the date a retail license is
             3797      issued to the limited liability company, the limited liability company shall comply with this
             3798      chapter to transfer the retail license to the limited liability company as if the limited liability
             3799      company is newly constituted.
             3800          (2) A business entity may not transfer a retail license under this section unless, before
             3801      the filing of the transfer application with the department, the business entity initiating the
             3802      transfer complies with Section 32B-8a-301 .
             3803          (3) If a business entity fails to comply with this section within 30 days of the day on
             3804      which the event described in Subsection (1) occurs, the business entity's retail license is
             3805      automatically forfeited.
             3806          Section 71. Section 32B-8a-203 is enacted to read:
             3807          32B-8a-203. Operational requirements for transferee.
             3808          (1) A transferee shall begin operations of the retail license within 30 days from the day
             3809      on which a transfer is approved by the commission, except that the department may grant an


             3810      extension of this time period not to exceed 30 days.
             3811          (2) If a transferee fails to begin operations of the retail license within the time period
             3812      required by Subsection (1), the retail license is forfeited and the commission may issue the
             3813      retail license to another person.
             3814          (3) A transferee shall begin operations of the retail license at the location to which the
             3815      transfer applies before the transferee may seek a transfer of the retail license to a different
             3816      location.
             3817          Section 72. Section 32B-8a-301 is enacted to read:
             3818     
Part 3. Process for Transferring a Retail License

             3819          32B-8a-301. Notice of intended transfer.
             3820          (1) To transfer a retail license, at least 10 days before the filing of a transfer application
             3821      with the department, the transferee shall file a notice of intended transfer with the department
             3822      that states the following:
             3823          (a) the name and address of the transferor;
             3824          (b) the name and address of the transferee;
             3825          (c) the type of retail license intended to be transferred;
             3826          (d) the address of the premises to which the retail license is issued;
             3827          (e) the address of the premises to which the retail license will be transferred;
             3828          (f) an agreement between the transferor and the transferee that the consideration for the
             3829      transfer of the retail license, if any, is to be paid only after the transfer is approved by the
             3830      commission; and
             3831          (g) any other information the commission or department may require.
             3832          (2) Notwithstanding Subsection (1), a notice of intended transfer filed by a business
             3833      entity for a transfer under Section 32B-8a-202 , shall state the following:
             3834          (a) the name and address of the business entity;
             3835          (b) the name and address of the one or more persons acquiring ownership of 51% or
             3836      more of the:
             3837          (i) stock of the corporation;
             3838          (ii) capital or profits of the limited partnership; or
             3839          (iii) interest in a limited liability company;
             3840          (c) the kind of retail license intended to be transferred;


             3841          (d) the address of the one or more premises to which a retail license:
             3842          (i) has been issued; and
             3843          (ii) will be transferred; and
             3844          (e) any other information the commission or department may require.
             3845          Section 73. Section 32B-8a-302 is enacted to read:
             3846          32B-8a-302. Application -- Approval process.
             3847          (1) To obtain the transfer of a retail license from a retail licensee, the transferee shall
             3848      file a transfer application with the department that includes:
             3849          (a) an application in the form provided by the department;
             3850          (b) a statement as to whether the consideration, if any, to be paid to the transferor
             3851      includes payment for any or all of the following:
             3852          (i) inventory;
             3853          (ii) fixtures; and
             3854          (iii) transfer of the retail license;
             3855          (c) a copy of the notice of intended transfer; and
             3856          (d) (i) an application fee of $300; and
             3857          (ii) a transfer fee determined in accordance with Section 32B-8a-303 .
             3858          (2) (a) (i) Before the commission may approve the transfer of a retail license, the
             3859      department shall conduct an investigation and may hold public hearings to gather information
             3860      and make recommendations to the commission as to whether the transfer of the retail license
             3861      should be approved.
             3862          (ii) The department shall forward the information and recommendations described in
             3863      this Subsection (2)(a) to the commission to aid in the commission's determination.
             3864          (b) Before approving a transfer, the commission shall:
             3865          (i) determine that the transferee filed a complete application;
             3866          (ii) determine that the transferee is eligible to hold the type of retail license that is to be
             3867      transferred at the premises to which the retail license would be transferred;
             3868          (iii) determine that the transferee is not delinquent in the payment of an amount
             3869      described in Subsection 32B-8a-201 (3);
             3870          (iv) determine that the transferee is not disqualified under Section 32B-1-304 ;
             3871          (v) consider the locality within which the proposed licensed premises is located,


             3872      including the factors listed in Section 32B-5-206 for the issuance of a retail license;
             3873          (vi) consider the transferee's ability to manage and operate the retail license to be
             3874      transferred, including the factors listed in Section 32B-5-202 for the issuance of a retail license;
             3875          (vii) consider the nature or type of retail licensee operation of the transferee, including
             3876      the factors listed in Section 32B-5-202 for the issuance of a retail license;
             3877          (viii) if the transfer involves consideration, determine that the transferee and transferor
             3878      have complied with Part 4, Protection of Creditors; and
             3879          (ix) consider any other factor the commission considers necessary.
             3880          (3) (a) Except as provided in Subsection (3)(b), the commission may not approve the
             3881      transfer of a retail license to premises that do not meet the proximity requirements of Section
             3882      32B-1-202 .
             3883          (b) If after a transfer of a retail license the transferee operates the same type of retail
             3884      license at the same location as did the transferor, the commission may waive or vary the
             3885      proximity requirements of Subsection 32B-1-202 (2) in considering whether to approve the
             3886      transfer under the same circumstances that the commission may waive or vary the proximity
             3887      requirements in accordance with Subsection 32B-1-202 (4) when considering whether to issue a
             3888      retail license.
             3889          Section 74. Section 32B-8a-303 is enacted to read:
             3890          32B-8a-303. Transfer fees.
             3891          (1) Except as otherwise provided in this section, the department shall charge the
             3892      following transfer fees:
             3893          (a) for a transfer of a retail license from a retail licensee to another person, the transfer
             3894      fee equals the initial license fee amount specified in the relevant part under Chapter 6, Specific
             3895      Retail License Act, for the type of retail license that is being transferred;
             3896          (b) for the transfer of a retail license from one premises to another premises of the
             3897      same retail licensee, the transfer fee equals the renewal fee amount specified in the relevant
             3898      part under Chapter 6, Specific Retail License Act, for the type of retail license that is being
             3899      transferred;
             3900          (c) subject to Subsections (1)(d) and (2), for a transfer described in Section
             3901      32B-8a-202 , the transfer fee equals the renewal fee amount specified in the relevant part under
             3902      Chapter 6, Specific Retail License Act, for the type of retail license that is being transferred;


             3903          (d) for a transfer of a retail license to include the parent or child of a retail licensee,
             3904      when no consideration is given for the transfer, the transfer fee is one-half of the amount
             3905      described in Subsection (1)(a); and
             3906          (e) for one of the following transfers, the transfer fee is one-half of the amount
             3907      described in Subsection (1)(a):
             3908          (i) a retail license of one spouse to the other spouse when the transfer application is
             3909      made before the entry of a final decree of divorce;
             3910          (ii) a retail license of a deceased retail licensee to:
             3911          (A) the one or more surviving partners of the deceased retail licensee;
             3912          (B) the executor, administrator, or conservator of the estate of the deceased retail
             3913      licensee; or
             3914          (C) the surviving spouse of the deceased retail licensee, if the deceased retail licensee
             3915      leaves no estate to be administered;
             3916          (iii) a retail license of a minor ward, incompetent person, or conservatee by or to the
             3917      conservator or guardian for the minor ward, incompetent person, or conservatee who is the
             3918      retail licensee;
             3919          (iv) a retail license of a debtor in a bankruptcy case by or to the trustee of a bankrupt
             3920      estate of the retail licensee;
             3921          (v) a retail license of a person for whose estate a receiver is appointed may be
             3922      transferred by or to a receiver of the estate of the retail licensee;
             3923          (vi) a retail license of an assignor for the benefit of creditors by or to an assignee for
             3924      the benefit of creditors of a licensee with the consent of the assignor;
             3925          (vii) a retail license transferred to a revocable living trust if the retail licensee is the
             3926      trustee of the revocable living trust;
             3927          (viii) a retail license transferred between partners when no new partner is being
             3928      licensed;
             3929          (ix) a retail license transferred between corporations whose outstanding shares of stock
             3930      are owned by the same individuals;
             3931          (x) upon compliance with Section 32B-8a-202 , a retail license to a corporation whose
             3932      entire stock is owned by:
             3933          (A) the transferor; or


             3934          (B) the spouse of the transferor;
             3935          (xi) upon compliance with Section 32B-8a-202 , a retail license to a limited liability
             3936      company whose entire membership consists of:
             3937          (A) the transferor; or
             3938          (B) the spouse of the transferor; or
             3939          (xii) a retail license transferred from a corporation to a person who owns, or whose
             3940      spouse owns, the entire stock of the corporation.
             3941          (2) If there are multiple and simultaneous transfers of retail licenses under Section
             3942      32B-8a-202 , a transfer fee described in Subsection (1)(c) is required for only one of the retail
             3943      licenses being transferred.
             3944          (3) (a) Except as provided in Subsection (3)(b), a transfer fee required under
             3945      Subsection (1) is due for a transfer subsequent to a transfer under Subsection (1)(e)(xiii) if the
             3946      subsequent transfer is of 51% of the stock in a corporation to which a retail license is
             3947      transferred by a retail licensee or the spouse of a retail licensee.
             3948          (b) If the transfer of stock described in Subsection (3)(a) is from a parent to the parent's
             3949      child or grandchild, the transfer fee is one-half of the amount described in Subsection (1)(a).
             3950          (4) Money collected from a transfer fee shall be deposited in the Liquor Control Fund.
             3951          Section 75. Section 32B-8a-401 is enacted to read:
             3952     
Part 4. Protection of Creditors

             3953          32B-8a-401. Notification of creditors -- Escrow -- Priority of payments.
             3954          (1) Before the filing of a transfer application with the department, if the intended
             3955      transfer of a retail license involves consideration:
             3956          (a) the transferor shall provide the transferee a list of creditors who have a claim
             3957      against the transferor;
             3958          (b) the transferee shall provide a copy of the notice of intended transfer to each creditor
             3959      on the list provided under Subsection (1)(a);
             3960          (c) the transferor and the transferee shall establish an escrow with a person who is not a
             3961      party to the transfer to act as escrow holder;
             3962          (d) the transferee shall deposit with the escrow holder the full amount of the
             3963      consideration; and
             3964          (e) the transferor and transferee shall enter into an agreement that:


             3965          (i) the consideration is deposited with the escrow holder;
             3966          (ii) requires the escrow holder to distribute the consideration within a reasonable time
             3967      after the completion of the transfer of the retail license; and
             3968          (iii) directs the escrow holder to distribute the consideration in accordance with
             3969      Subsection (2).
             3970          (2) Subject to the other requirements of this section, if a creditor with a claim against
             3971      the transferor files the claim with the escrow holder before the escrow holder is notified by the
             3972      department that the transfer is approved, the escrow holder shall distribute the consideration in
             3973      the following order:
             3974          (a) to the payment of:
             3975          (i) the United States for a claim based on income or withholding taxes; and
             3976          (ii) a claim based on a tax other than specified in Subsection 32B-8a-201 (3);
             3977          (b) to the payment of a claim for wages, salaries, or fringe benefits earned or accrued
             3978      by an employee of the transferor before the transfer or opening of the escrow for the transfer of
             3979      the retail license;
             3980          (c) to the payment of a claim of a secured creditor to the extent of the proceeds that
             3981      arise from the sale of the security;
             3982          (d) to the payment of a claim on a mechanics liens;
             3983          (e) to the payment of:
             3984          (i) escrow fees;
             3985          (ii) a claim for prevailing brokerage fees for services rendered; and
             3986          (iii) a claim for reasonable attorney fees for services rendered;
             3987          (f) to the payment of claims:
             3988          (i) of a landlord, to the extent of proceeds on past due rent or lease requirements;
             3989          (ii) for goods sold and delivered to the retail licensee for resale at the transferor's
             3990      licensed premises; and
             3991          (iii) for services rendered, performed, or supplied in connection with the operation of
             3992      the transferor's licensed business; and
             3993          (g) to the payment of other types of claims that are reduced to court-ordered judgments,
             3994      including a claim for court-ordered support of a minor child; and
             3995          (h) to the payment of all other claims.


             3996          Section 76. Section 32B-8a-402 is enacted to read:
             3997          32B-8a-402. Duties of escrow holder.
             3998          (1) To act as an escrow holder under Section 32B-8a-401 , a person shall comply with
             3999      Title 7, Chapter 22, Regulation of Independent Escrow Agents.
             4000          (2) Not more than 10 days after receiving a claim from a creditor, an escrow holder
             4001      shall acknowledge receipt of the claim.
             4002          (3) (a) Not more than 10 days after a retail license is transferred and before the
             4003      distribution of the consideration held by an escrow holder, the escrow holder shall advise each
             4004      creditor who files a claim against the escrow whether there is sufficient consideration in the
             4005      escrow to pay all creditors in full.
             4006          (b) If the consideration in an escrow is sufficient to pay all creditors in full, the escrow
             4007      holder shall advise each creditor of the date on or before which payment will be made.
             4008          (c) If there are not sufficient assets to pay all creditors in full, the escrow holder shall
             4009      advise each creditor who filed a claim of the following:
             4010          (i) the total assets placed in escrow with the escrow holder;
             4011          (ii) the nature of each asset;
             4012          (iii) the name of each creditor who filed a claim against the escrow and the amount of
             4013      the claim;
             4014          (iv) the amount the escrow holder proposes to pay each creditor; and
             4015          (v) the date on or before which the escrow holder will pay each creditor.
             4016          (4) An escrow holder may not release money in the escrow in exchange for:
             4017          (a) a promissory note; or
             4018          (b) any other consideration of less value to the creditors than the money exchanged.
             4019          (5) If sufficient assets are not available in the escrow for the payment of the claims in
             4020      full, the escrow holder shall pay the claims pro rata.
             4021          (6) If the retail licensee who transfers the retail license disputes a claim, the escrow
             4022      holder shall:
             4023          (a) notify the creditor making the claim;
             4024          (b) retain the amount to be paid to the creditor under this section for a period of 25
             4025      days; and
             4026          (c) to the extent that creditors do not successfully recover the amount described in


             4027      Subsection (6)(b) in accordance with this part, pay the amount to the retail licensee.
             4028          (7) An escrow holder shall distribute the money in the escrow account after the
             4029      payments made under Subsections 32B-8a-401 (2) and this section within a reasonable time
             4030      after the completion of the transfer of the retail license.
             4031          Section 77. Section 32B-8a-403 is enacted to read:
             4032          32B-8a-403. Statement by transferee.
             4033          (1) Within 30 days after the filing of a transfer application under Section 32B-8a-302
             4034      for transfer of a retail license, the transferee shall file with the department a statement executed
             4035      under penalty of perjury that the consideration as set forth in the escrow agreement required by
             4036      Section 32B-8a-401 is deposited with the escrow holder.
             4037          (2) At the time the statement described in Subsection (1) is filed with the department,
             4038      the transferee shall submit a copy of the statement to:
             4039          (a) the transferee; and
             4040          (b) the escrow holder.
             4041          (3) The department may extend the 30-day period specified by this section for a period
             4042      not to exceed an additional 30 days, except that a retail license may not be transferred until the
             4043      statement required by this section is received by the department.
             4044          (4) This section does not apply to a transfer for which a guaranty of payment is filed
             4045      pursuant to Section 32B-8a-404 .
             4046          Section 78. Section 32B-8a-404 is enacted to read:
             4047          32B-8a-404. When escrow not required.
             4048          (1) Notwithstanding the other provisions of this part, an escrow is not required to be
             4049      established in connection with the transfer of a retail license if:
             4050          (a) a business entity files with the department a guaranty of full, prompt, and faithful
             4051      payment of all claims of a creditor of the retail licensee; and
             4052          (b) the guaranty described in Subsection (1)(a) is accepted in writing by the creditors
             4053      listed in Subsection 32B-8a-401 (2).
             4054          (2) A transfer of a retail license described in Subsection (1) is not considered complete
             4055      until:
             4056          (a) the guarantor pays all creditors' claims in full; and
             4057          (b) the guarantor files with the department a statement executed under penalty of


             4058      perjury that all conditions of the transfer have been satisfied.
             4059          (3) Payment of a claim by a guarantor shall be made in United States currency or by
             4060      certified check in a manner acceptable to the creditors.
             4061          (4) This section applies only in the case of a transfer in which the guarantor business
             4062      entity has a net worth on a consolidated basis, according to its most recent audited financial
             4063      statement, of not less than $5,000,000.
             4064          Section 79. Section 32B-8a-501 is enacted to read:
             4065     
Part 5. Prohibited Activities

             4066          32B-8a-501. License not to be pledged as security -- Prohibited transfers.
             4067          (1) A retail licensee may not enter into any agreement under which the retail licensee
             4068      pledges the retail license as security for a loan or as security for the fulfillment of any
             4069      agreement.
             4070          (2) A retail licensee may not transfer a retail license if the transfer is to:
             4071          (a) satisfy a loan or to fulfill an agreement entered into more than 90 days preceding
             4072      the date on which the transfer application is filed;
             4073          (b) gain or establish a preference to or for any creditor of the transferor, except as
             4074      provided by Section 32B-8a-202 ; or
             4075          (c) defraud or injure a creditor of the transferor.
             4076          (3) A retail licensee may not transfer a retail license except in accordance with this
             4077      chapter.
             4078          Section 80. Section 32B-8a-502 is enacted to read:
             4079          32B-8a-502. Effect of transfer in violation of this chapter.
             4080          (1) If a retail license is transferred in violation of this chapter, the commission may:
             4081          (a) void the transfer; and
             4082          (b) require the retail license to be forfeited.
             4083          (2) Subsection (1) is in addition to any other penalty under this title that is applicable to
             4084      the person who violates this chapter.
             4085          Section 81. Section 32B-9-204 (Effective 07/01/11) is amended to read:
             4086           32B-9-204 (Effective 07/01/11). General operational requirements for an event
             4087      permit.
             4088          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or


             4089      furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
             4090      with this title and rules of the commission.
             4091          (b) Failure to comply as provided in Subsection (1)(a):
             4092          (i) may result in:
             4093          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             4094      Enforcement Act, against:
             4095          (I) an event permittee;
             4096          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             4097      product at the event; or
             4098          (III) any combination of the persons listed in this Subsection (1)(b);
             4099          (B) immediate revocation of the event permit;
             4100          (C) forfeiture of a bond; or
             4101          (D) immediate seizure of an alcoholic product present at the event; and
             4102          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
             4103      event permit for a period of three years from the date of revocation of the event permit.
             4104          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
             4105      permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206 .
             4106          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             4107      the specific type of special use permit held by the special use permittee, the relevant part
             4108      governs.
             4109          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
             4110      event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
             4111      relevant part under this chapter for the type of event permit that is held by the event permittee.
             4112          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             4113      event permit held by an event permittee refers to "event permittee," a person involved in the
             4114      storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
             4115      event permit is issued is subject to the same requirement or prohibition.
             4116          (3) An event permittee shall display a copy of the event permit in a prominent place in
             4117      the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
             4118          (4) An event permittee may not on the premises of the event:
             4119          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,


             4120      Chapter 10, Part 11, Gambling;
             4121          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             4122      Part 11, Gambling; or
             4123          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             4124      the risking of something of value for a return or for an outcome when the return or outcome is
             4125      based upon an element of chance, excluding the playing of an amusement device that confers
             4126      only an immediate and unrecorded right of replay not exchangeable for value.
             4127          (5) An event permittee may not knowingly allow a person at an event to, in violation of
             4128      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             4129      Paraphernalia Act:
             4130          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             4131      58-37-2 ; or
             4132          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             4133      Section 58-37a-3 .
             4134          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
             4135      purchases from:
             4136          (a) a beer wholesaler licensee;
             4137          (b) a beer retailer; or
             4138          (c) a small brewer.
             4139          (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
             4140      consumption of an alcoholic product purchased for an event in a location other than that
             4141      described in the application and designated on the event permit unless the event permittee first
             4142      applies for and receives approval from the commission for a change of location.
             4143          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
             4144      furnish beer for on-premise consumption:
             4145          (i) in an open original [package] container; and
             4146          (ii) in a [package] container on draft.
             4147          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
             4148      Subsection (8)(a):
             4149          (i) in a size of [package] container that exceeds two liters; or
             4150          (ii) to an individual patron in a size of [package] container that exceeds one liter.


             4151          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
             4152      than the cost of the alcoholic product to the event permittee.
             4153          (b) An event permittee may not sell or offer for sale an alcoholic product at a price that
             4154      encourages over consumption or intoxication.
             4155          (c) An event permittee may not sell or offer for sale an alcoholic product at a special or
             4156      reduced price for only certain hours of the day of an event.
             4157          (d) An event permittee may not sell, offer for sale, or furnish more than one alcoholic
             4158      product at the price of a single alcoholic product.
             4159          (e) An event permittee, or a person operating, selling, offering, or furnishing an
             4160      alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or
             4161      unlimited number of alcoholic products during a set period for a fixed price.
             4162          [(e)] (f) An event permittee may not engage in a public promotion involving or offering
             4163      a free alcoholic product to the general public.
             4164          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
             4165          (a) a minor;
             4166          (b) a person actually, apparently, or obviously intoxicated;
             4167          (c) a known interdicted person; or
             4168          (d) a known habitual drunkard.
             4169          (11) (a) An alcoholic product is considered under the control of the event permittee
             4170      during an event.
             4171          (b) A patron at an event may not bring an alcoholic product onto the premises of the
             4172      event.
             4173          (12) An event permittee may not permit a patron to carry from the premises an open
             4174      [package] container that:
             4175          (a) is used primarily for drinking purposes; and
             4176          (b) contains an alcoholic product.
             4177          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
             4178      an event is considered under the supervision and direction of the event permittee.
             4179          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
             4180      an event may not, while on duty:
             4181          (i) consume an alcoholic product; or


             4182          (ii) be intoxicated.
             4183          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
             4184      event.
             4185          (15) The location specified in an event permit may not be changed without prior
             4186      written approval of the commission.
             4187          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
             4188      attempt in any way to dispose of the event permit to another person whether for monetary gain
             4189      or not.
             4190          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
             4191      consumption of an alcoholic product during a period that:
             4192          (i) begins at 1 a.m.; and
             4193          (ii) ends at 9:59 a.m.
             4194          (b) This Subsection (17) does not preclude a local authority from being more restrictive
             4195      with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
             4196      product at an event.
             4197          (18) A patron may have no more than one alcoholic product of any kind at a time
             4198      before the patron.
             4199          (19) (a) An event permittee shall display, in a prominent place, a sign in large letters
             4200      that consists of text in the following order:
             4201          (i) a header that reads: "WARNING";
             4202          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             4203      can cause birth defects and permanent brain damage for the child.";
             4204          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             4205      [insert most current toll-free number] with questions or for more information.";
             4206          (iv) a header that reads: "WARNING"; and
             4207          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             4208      serious crime that is prosecuted aggressively in Utah."
             4209          (b) (i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different
             4210      font style than the text described in Subsections (19)(a)(iv) and (v).
             4211          (ii) The warning statements in the sign described in Subsection (19)(a) shall be in the
             4212      same font size.


             4213          (c) The Department of Health shall work with the commission and department to
             4214      facilitate consistency in the format of a sign required under this section.
             4215          Section 82. Section 32B-9-304 (Effective 07/01/11) is amended to read:
             4216           32B-9-304 (Effective 07/01/11). Specific permitting requirements for single event
             4217      permit.
             4218          (1) To obtain a single event permit, in addition to complying with Part 2, Event
             4219      Permitting General Provisions, an entity described in Subsection 32B-9-303 (2)(a) shall state in
             4220      its written application:
             4221          (a) the purpose of the entity described in Subsection 32B-9-303 (2)(a);
             4222          (b) the time period under Subsection 32B-9-303 (3)(a)(i)(A) or (B) for which the entity
             4223      is applying; and
             4224          (c) if submitting the first request for a single event permit in a calendar year, whether it
             4225      is requesting to be under Subsection 32B-9-303 (4)(a) or (b).
             4226          (2) The application fee for a single event permit is [$100] $125.
             4227          (3) The bond amount required for a single event permit is the penal sum of $1,000.
             4228          Section 83. Section 32B-9-305 (Effective 07/01/11) is amended to read:
             4229           32B-9-305 (Effective 07/01/11). Specific operational requirements for single event
             4230      permit.
             4231          (1) (a) In addition to complying with Section 32B-9-204 , a single event permittee or a
             4232      person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the
             4233      event shall comply with this section.
             4234          (b) Failure to comply as provided in Subsection (1)(a):
             4235          (i) may result in:
             4236          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             4237      Enforcement Act, against:
             4238          (I) a single event permittee;
             4239          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             4240      product at the event; or
             4241          (III) any combination of persons listed in this Subsection (1)(b);
             4242          (B) immediate revocation of the single event permit;
             4243          (C) forfeiture of a bond; or


             4244          (D) immediate seizure of an alcoholic product present at the event; and
             4245          (ii) if the single event permit is revoked, disqualifies the single event permittee from
             4246      applying for a single event permit or temporary beer event permit for a period of three years
             4247      from the date of revocation of the single event permit.
             4248          (c) An alcoholic product seized under this Subsection (1) shall be returned to the single
             4249      event permittee after an event if forfeiture proceedings are not instituted under Section
             4250      32B-4-206 .
             4251          (2) (a) A single event permittee shall make and maintain an expense and revenue
             4252      ledger or record showing:
             4253          (i) expenditures made for:
             4254          (A) liquor;
             4255          (B) beer;
             4256          (C) set-ups; and
             4257          (D) an ingredient or component of an alcoholic product other than a set-up; and
             4258          (ii) the revenue from the sale of an alcoholic product.
             4259          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             4260      accordance with this Subsection (2).
             4261          (3) A single event permittee shall purchase liquor stored, sold, offered for sale,
             4262      furnished, or consumed at an event from a state store or package agency.
             4263          (4) (a) A single event permittee may not sell, offer for sale, or furnish a primary
             4264      spirituous liquor in a quantity that exceeds 1.5 ounces per beverage, except that additional
             4265      spirituous liquor may be used in a beverage if:
             4266          (i) used as a secondary flavoring ingredient;
             4267          (ii) used in conjunction with the primary spirituous liquor;
             4268          (iii) the secondary ingredient is not the only spirituous liquor in the beverage; and
             4269          (iv) subject to Subsection 32B-9-204 (18):
             4270          [(iv)] (A) a patron has no more than 2.5 ounces of spirituous liquor at a time before the
             4271      patron; and
             4272          [(v)] (B) a patron has no more than one spirituous liquor drink at a time before the
             4273      patron.
             4274          (b) Spirituous liquor need not be dispensed through a calibrated metered dispensing


             4275      system.
             4276          (5) (a) A single event permittee may sell, offer for sale, or furnish wine by the glass or
             4277      an individual portion, except that a glass or individual portion may not exceed five ounces.
             4278          (b) A single event permittee may furnish an individual portion served to a patron in
             4279      more than one glass if the total amount of wine does not exceed five ounces.
             4280          (c) An individual portion of wine is considered to be one alcoholic product under
             4281      Subsection 32B-9-204 [(12)](18).
             4282          (d) A single event permittee may sell, offer for sale, or furnish wine in a [package]
             4283      container not exceeding 1.5 liters at a price fixed by the commission.
             4284          (6) A single event permittee may sell, offer for sale, or furnish heavy beer in an original
             4285      [package] container at a price fixed by the commission, except that the original [package]
             4286      container may not exceed one liter.
             4287          (7) A single event permittee may sell, offer for sale, or furnish a flavored malt beverage
             4288      in an original [package] container at a price fixed by the commission, except that the original
             4289      [package] container may not exceed one liter.
             4290          (8) (a) A single event permittee may sell liquor only at a price fixed by the
             4291      commission.
             4292          (b) A single event permittee may not sell liquor at a discount price on any date or at
             4293      any time.
             4294          (9) A single event permittee may perform a service and assess a service charge as
             4295      authorized by commission rule for liquor purchased at an event.
             4296          Section 84. Section 32B-9-405 (Effective 07/01/11) is amended to read:
             4297           32B-9-405 (Effective 07/01/11). Specific permitting requirements for temporary
             4298      beer event permit issued by commission.
             4299          (1) To obtain a temporary beer event permit, in addition to complying with Part 2,
             4300      Event Permitting General Provisions, a person shall state in the person's written application the
             4301      purpose of the event for which the person seeks a temporary beer event permit.
             4302          (2) The application fee for a beer permit is [$75] $100.
             4303          (3) The bond amount required for a beer permit is the penal sum of $500.
             4304          Section 85. Section 32B-10-303 (Effective 07/01/11) is amended to read:
             4305           32B-10-303 (Effective 07/01/11). Specific application and renewal requirements


             4306      for public service permit.
             4307          (1) To obtain a public service permit, in addition to complying with Section
             4308      32B-10-202 , a person shall submit to the department:
             4309          (a) a statement of the total of regularly numbered flights, trains, buses, boats, or other
             4310      types of public conveyance for which the person plans to use the special use permit;
             4311          (b) a floor plan of any room or facility in which the person plans to establish a
             4312      hospitality room where the sale, offer for sale, or furnishing of an alcoholic product is made to
             4313      a patron then in transit, using the host company's airline, railroad, bus, boat, or other public
             4314      conveyance; and
             4315          (c) evidence of proximity of a proposed hospitality room to the arrival and departure
             4316      area used by a person traveling on the host company's airline, railroad, bus, boat, or other
             4317      public conveyance.
             4318          (2) (a) The nonrefundable application fee for a public service permit is [$50] $75.
             4319          (b) The initial permit fee for a public service permit is [$200] $250.
             4320          (c) The bond amount required for a public service permittee is the penal sum of $1,000.
             4321          (3) (a) To renew a public service permit, a person shall comply with Section
             4322      32B-10-203 .
             4323          (b) The renewal fee for a public service permit is $30 for each regularly numbered
             4324      passenger airplane flight, passenger train, bus, boat, or any other regularly scheduled public
             4325      conveyance upon which an alcoholic product is sold, offered for sale, or furnished.
             4326          Section 86. Section 32B-10-304 (Effective 07/01/11) is amended to read:
             4327           32B-10-304 (Effective 07/01/11). Specific operational requirements for a public
             4328      service permit.
             4329          (1) (a) In addition to complying with Section 32B-10-206 , a public service permittee
             4330      and staff of the public service permittee shall comply with this section.
             4331          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             4332      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             4333          (i) a public service permittee;
             4334          (ii) individual staff of a public service permittee; or
             4335          (iii) both a public service permittee and staff of the public service permittee.
             4336          (2) (a) A public service permittee whose public conveyances operate on an interstate


             4337      basis may do the following:
             4338          (i) purchase an alcoholic product outside of the state;
             4339          (ii) bring an alcoholic product purchased outside of the state into the state; and
             4340          (iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state
             4341      to a passenger traveling on the public service permittee's public conveyance for consumption
             4342      while en route on the public conveyance.
             4343          (b) A public service permittee whose public conveyance operates solely within the
             4344      state, to sell, offer for sale, or furnish to a passenger traveling on the public service permittee's
             4345      public conveyance for consumption while en route on the public conveyance, shall purchase:
             4346          (i) liquor from a state store or package agency; and
             4347          (ii) beer from a beer wholesaler licensee.
             4348          (3) (a) A public service permittee may establish a hospitality room in which an
             4349      alcoholic product may be stored, sold, offered for sale, furnished, and consumed, if:
             4350          (i) the room is located within a depot, terminal, or similar facility adjacent to and
             4351      servicing the public service permittee's airline, railroad, bus, boat, or other public conveyance;
             4352          (ii) the room is completely enclosed and the interior is not visible to the public;
             4353          (iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a
             4354      person:
             4355          (A) then in transit using the host company's airline, railroad, bus line, or other public
             4356      conveyance; and
             4357          (B) holding a valid boarding pass or similar travel document issued by the host
             4358      company; and
             4359          (iv) (A) liquor is purchased from:
             4360          (I) a state store; or
             4361          (II) a package agency; and
             4362          (B) beer is purchased from a beer wholesaler licensee.
             4363          (b) (i) A public service permittee operating a hospitality room shall display in a
             4364      prominent place in the hospitality room, a sign in large letters [stating: "Warning: Driving
             4365      under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in
             4366      Utah."] that consists of text in the following order:
             4367          (A) a header that reads: "WARNING";


             4368          (B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             4369      can cause birth defects and permanent brain damage for the child.";
             4370          (C) a statement in smaller font that reads: "Call the Utah Department of Health at
             4371      [insert most current toll-free number] with questions or for more information.";
             4372          (D) a header that reads: "WARNING"; and
             4373          (E) a warning statement that reads: "Driving under the influence of alcohol or drugs is
             4374      a serious crime that is prosecuted aggressively in Utah."
             4375          (ii) (A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a
             4376      different font style than the text described in Subsections (3)(b)(i)(D) and (E).
             4377          (B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the
             4378      same font size.
             4379          (iii) The Department of Health shall work with the commission and department to
             4380      facilitate consistency in the format of a sign required under this section.
             4381          (c) A hospitality room shall be operated in accordance with this chapter and rules
             4382      adopted by the commission.
             4383          Section 87. Section 32B-10-403 (Effective 07/01/11) is amended to read:
             4384           32B-10-403 (Effective 07/01/11). Specific application requirements for industrial
             4385      or manufacturing use permit.
             4386          (1) To obtain an industrial or manufacturing use permit, in addition to complying with
             4387      Section 32B-10-202 , a person shall submit to the department:
             4388          (a) a floor plan of the immediate area within the premises in which the person proposes
             4389      that an alcoholic product be used, mixed, stored, sold, offered for sale, furnished, or consumed;
             4390      and
             4391          (b) if the person is applying for an industrial or manufacturing use permit to produce
             4392      gasohol or any alcoholic product, evidence that the person has:
             4393          (i) an approved Notice of Registration of Distilled Spirits Plant; and
             4394          (ii) the appropriate permit from the federal Alcohol and Tobacco Tax and Trade
             4395      Bureau.
             4396          (2) (a) The nonrefundable application fee for an industrial or manufacturing use permit
             4397      is [$50] $75.
             4398          (b) The one-time special use permit fee for an industrial or manufacturing use permit is


             4399      [$200] $250.
             4400          (c) The bond amount required for an industrial or manufacturing use permit is the
             4401      penal sum of $1,000.
             4402          Section 88. Section 32B-10-404 (Effective 07/01/11) is amended to read:
             4403           32B-10-404 (Effective 07/01/11). Specific operational requirements for industrial
             4404      or manufacturing use permit.
             4405          (1) (a) In addition to complying with Section 32B-10-206 , an industrial or
             4406      manufacturing use permittee and staff of the industrial or manufacturing use permittee shall
             4407      comply with this section.
             4408          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             4409      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             4410          (i) an industrial or manufacturing use permittee;
             4411          (ii) individual staff of an industrial or manufacturing use permittee; or
             4412          (iii) an industrial or manufacturing use permittee and staff of the industrial or
             4413      manufacturing use permittee.
             4414          (2) An industrial or manufacturing use permittee may produce for lawful use and sale
             4415      the following:
             4416          (a) vinegar;
             4417          (b) preserved nonintoxicating cider;
             4418          (c) a food preparation;
             4419          (d) a United States Pharmacopoeia or national formulary preparation in conformity
             4420      with Title 58, Chapters 17b, 37, 37a, 37b, and 37c, if the preparation:
             4421          (i) conforms to standards established by:
             4422          (A) the Department of Agriculture and Food; and
             4423          (B) the Department of Health; and
             4424          (ii) contains no more alcohol than is necessary to preserve or extract the medicinal,
             4425      flavoring, or perfumed properties of the treated substances; and
             4426          (e) wood and denatured alcohol if manufactured in compliance with the formulas and
             4427      regulations under Title 27, C.F.R. Parts 19, 20, and 21.
             4428          (3) (a) An industrial or manufacturing use permittee that produces patent or proprietary
             4429      medicines containing alcohol may sell or offer for sale the medicines in the original and


             4430      unbroken [package] container if the medicine contains sufficient medication to prevent its use
             4431      as an alcoholic product.
             4432          (b) An industrial or manufacturing use permittee described in this Subsection (3) shall,
             4433      upon request by the department, provide a sufficient sample of the medicine to enable the
             4434      department to have the medicine analyzed for purposes of this section.
             4435          Section 89. Section 32B-10-503 (Effective 07/01/11) is amended to read:
             4436           32B-10-503 (Effective 07/01/11). Specific application requirements for scientific
             4437      or educational use permit.
             4438          (1) To obtain a scientific or educational use permit, a person shall comply with Section
             4439      32B-10-202 .
             4440          (2) The one-time special use permit fee for a scientific or educational use permit is
             4441      [$100] $125.
             4442          Section 90. Section 32B-10-603 (Effective 07/01/11) is amended to read:
             4443           32B-10-603 (Effective 07/01/11). Specific application requirements for religious
             4444      wine use permit.
             4445          (1) To purchase an alcoholic product from the department at the department's cost plus
             4446      freight charges, a religious organization shall obtain a religious wine use permit.
             4447          (2) To obtain a religious wine permit, a person shall comply with Section 32B-10-202 .
             4448          (3) The one-time special use permit fee for a religious wine use permit is [$100] $125.
             4449          Section 91. Section 32B-11-201 (Effective 07/01/11) is amended to read:
             4450           32B-11-201 (Effective 07/01/11). Commission's power to issue a manufacturing
             4451      license -- Certificates of approval for brewers, importers, suppliers.
             4452          (1) (a) Except as provided in Section 32B-11-202 , before a person may manufacture an
             4453      alcoholic product in this state, the person shall obtain an alcoholic product manufacturing
             4454      license issued by the commission in accordance with this part.
             4455          (b) A separate license is required for each place of storage, sale, and manufacture of an
             4456      alcoholic product.
             4457          (c) A violation of this Subsection (1) is a class B misdemeanor.
             4458          (2) The commission may issue an alcoholic product manufacturing license to a
             4459      manufacturer whose business is located in this state for the storage, sale, and manufacture of an
             4460      alcoholic product for each type of manufacturing license provided by this chapter.


             4461          (3) The types of manufacturing licenses issued under this chapter are known as:
             4462          (a) a winery manufacturing license;
             4463          (b) a distillery manufacturing license; and
             4464          (c) a brewery manufacturing license.
             4465          (4) (a) A brewer located outside the state is not required to be licensed under this
             4466      chapter.
             4467          (b) A brewer described in Subsection (4)(a) shall obtain a certificate of approval from
             4468      the department before selling or delivering:
             4469          (i) beer to a beer wholesaler licensee in this state;
             4470          (ii) a flavored malt beverage to:
             4471          (A) the department; or
             4472          (B) a military installation; or
             4473          (iii) if a small brewer, beer to one of the following in the state:
             4474          (A) a beer wholesaler licensee;
             4475          (B) a beer retailer; or
             4476          (C) an event permittee.
             4477          (c) To obtain a certificate of approval, a brewer shall submit to the department:
             4478          (i) a written application in a form prescribed by the department;
             4479          (ii) a nonrefundable [$50] $75 application fee;
             4480          (iii) an initial certificate of approval fee of [$250] $300 that is refundable if a
             4481      certificate of approval is not issued;
             4482          (iv) evidence of authority from the federal Alcohol and Tobacco Tax and Trade Bureau
             4483      of the United States Department of the Treasury to brew beer, heavy beer, or a flavored malt
             4484      beverage; and
             4485          (v) any other information the commission or department may require.
             4486          (d) (i) [A] One of the following shall sign and verify a written application under this
             4487      Subsection (4) [shall be signed and verified] by oath or affirmation [by]:
             4488          (A) a partner if the brewer is a partnership; or
             4489          (B) an executive officer, manager, or person specifically authorized by a corporation or
             4490      limited liability company to sign the application.
             4491          (ii) A brewer filing an application shall attach to the application written evidence of the


             4492      authority of the person described in Subsection (4)(d)(i) to sign the application.
             4493          (e) (i) A certificate of approval under this Subsection (4) expires on December 31 of
             4494      each year.
             4495          (ii) A brewer desiring to renew its certificate of approval shall submit to the
             4496      department by no later than November 30 of the year the certificate of approval expires:
             4497          (A) a completed renewal application in the form prescribed by the department; and
             4498          (B) a renewal [feel] fee of [$200] $250.
             4499          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4500      certificate of approval effective on the date the existing certificate of approval expires.
             4501          (5) (a) An importer or supplier of beer, heavy beer, or flavored malt beverages who is
             4502      not required to be licensed under this title shall obtain a certificate of approval from the
             4503      department before selling or delivering:
             4504          (i) beer to a beer wholesaler licensee in this state; or
             4505          (ii) heavy beer or a flavored malt beverage to:
             4506          (A) the department; or
             4507          (B) a military installation.
             4508          (b) To obtain a certificate of approval, an importer or supplier described in Subsection
             4509      (5)(a) shall submit to the department:
             4510          (i) a written application in a form prescribed by the department;
             4511          (ii) a nonrefundable $75 application fee;
             4512          (iii) an initial certificate of approval fee of $300 that is refundable if a certificate of
             4513      approval is not issued;
             4514          (iv) evidence of authority from the federal Alcohol and Tobacco Tax and Trade Bureau
             4515      of the United States Department of the Treasury to brew beer, heavy beer, or a flavored malt
             4516      beverage; and
             4517          (v) any other information the commission or department may require.
             4518          (c) (i) One of the following shall sign and verify a written application under this
             4519      Subsection (5) by oath or affirmation:
             4520          (A) a partner if the importer or supplier is a partnership; or
             4521          (B) an executive officer, manager, or person specifically authorized by a corporation or
             4522      limited liability company to sign the application.


             4523          (ii) An importer or supplier filing an application under this Subsection (5) shall attach
             4524      to the application written evidence of the authority of the person described in Subsection
             4525      (5)(c)(i) to sign the application.
             4526          (d) (i) A certificate of approval under this Subsection (5) expires on December 31 of
             4527      each year.
             4528          (ii) An importer or supplier desiring to renew its certificate of approval shall submit to
             4529      the department by no later than November 30 of the year the certificate of approval expires:
             4530          (A) a completed renewal application in the form prescribed by the department; and
             4531          (B) a renewal fee of $250.
             4532          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4533      certificate of approval effective on the date the existing certificate of approval expires.
             4534          (6) (a) Subject to Subsection (7), a brewer, importer, or supplier required to hold a
             4535      certificate of approval under this section may not distribute beer in this state except under a
             4536      written agreement with a beer wholesaler licensee in this state.
             4537          (b) An agreement described in Subsection (6)(a) shall:
             4538          (i) create a restricted exclusive sales territory that is mutually agreed upon by the
             4539      persons entering into the agreement;
             4540          (ii) designate the one or more brands that may be distributed in the sales territory; and
             4541          (iii) set forth the exact geographical area of the sales territory.
             4542          (c) A brewer, importer of beer, or supplier of beer may have more than one agreement
             4543      described in this Subsection (6) if each brand of the brewer, importer, or supplier distributed in
             4544      the state is covered by one exclusive sales territory.
             4545          (d) A brewer, importer of beer, or supplier of beer may not enter into an agreement
             4546      with more than one beer wholesaler licensee to distribute the same brand of beer in the same
             4547      sales territory or any portion of the sales territory.
             4548          (7) A small brewer is not subject to the requirements of Subsection (6).
             4549          Section 92. Section 32B-11-203 (Effective 07/01/11) is amended to read:
             4550           32B-11-203 (Effective 07/01/11). Application requirements for a manufacturing
             4551      license.
             4552          To obtain an alcoholic product manufacturing license, a person shall submit to the
             4553      department:


             4554          (1) a written application in a form prescribed by the department;
             4555          (2) a nonrefundable application fee of [$250] $300;
             4556          (3) an initial license fee of [$3,250] $3,800:
             4557          (a) unless otherwise provided in this chapter; and
             4558          (b) that is refundable if a license is not issued;
             4559          (4) written consent of the local authority;
             4560          (5) a statement of the purpose for which the person has applied for the manufacturing
             4561      license;
             4562          (6) evidence that the person is authorized by the United States to manufacture an
             4563      alcoholic product;
             4564          (7) a bond as specified by Section 32B-11-207 ;
             4565          (8) evidence that the person is carrying public liability insurance in an amount and
             4566      form satisfactory to the department;
             4567          (9) a signed consent form stating that the manufacturing licensee will permit any
             4568      authorized representative of the commission, department, or any law enforcement officer to
             4569      have unrestricted right to enter the licensed premises;
             4570          (10) if the person is an entity, proper verification evidencing that a person who signs
             4571      the application is authorized to sign on behalf of the entity; and
             4572          (11) any other information the commission or department may require.
             4573          Section 93. Section 32B-11-204 (Effective 07/01/11) is amended to read:
             4574           32B-11-204 (Effective 07/01/11). Renewal requirements for a manufacturing
             4575      license.
             4576          (1) A manufacturing license expires on December 31 of each year.
             4577          (2) To renew a manufacturing license, a person shall submit by no later than November
             4578      30 of the year the license expires:
             4579          (a) a completed renewal application to the department, in a form prescribed by the
             4580      department; and
             4581          (b) a renewal fee in the following amount of:
             4582          (i) [$2,500] $2,900, except for a wine manufacturing license described in Subsection
             4583      (2)(b)(ii); or
             4584          (ii) [$1,200] $1,400 for a winery manufacturing license if the winery manufacturing


             4585      licensee produces less than 20,000 gallons of wine in the calendar year preceding the year in
             4586      which the manufacturing licensee seeks renewal.
             4587          (3) Failure to meet the renewal requirements results in an automatic forfeiture of a
             4588      manufacturing license effective on the date the existing manufacturing license expires.
             4589          Section 94. Section 32B-11-503 (Effective 07/01/11) is amended to read:
             4590           32B-11-503 (Effective 07/01/11). Specific authority and operational requirements
             4591      for brewery manufacturing license.
             4592          (1) A brewery manufacturing license allows a brewery manufacturing licensee to:
             4593          (a) store, manufacture, brew, transport, or export beer, heavy beer, and flavored malt
             4594      beverages;
             4595          (b) sell heavy beer and a flavored malt beverage to:
             4596          (i) the department;
             4597          (ii) a military installation; or
             4598          (iii) an out-of-state customer;
             4599          (c) sell beer to a beer wholesaler licensee;
             4600          (d) in the case of a small brewer, in accordance with Subsection (5), sell beer
             4601      manufactured by the small brewer to:
             4602          (i) a retail licensee;
             4603          (ii) an off-premise beer retailer; or
             4604          (iii) an event permittee; and
             4605          (e) warehouse on its premises an alcoholic product that the brewery manufacturing
             4606      licensee manufactures or purchases for manufacturing purposes.
             4607          (2) A brewery manufacturing licensee may not sell the following to a person within the
             4608      state except the department or a military installation:
             4609          (a) heavy beer; or
             4610          (b) a flavored malt beverage.
             4611          (3) If considered necessary, the commission or department may require:
             4612          (a) the alteration of the plant, equipment, or licensed premises;
             4613          (b) the alteration or removal of any unsuitable alcoholic product-making equipment or
             4614      material;
             4615          (c) a brewery manufacturing licensee to clean, disinfect, ventilate, or otherwise


             4616      improve the sanitary and working conditions of the plant, licensed premises, and equipment; or
             4617          (d) that a record pertaining to the materials and ingredients used in the manufacture of
             4618      an alcoholic product be available to the commission or department upon request.
             4619          (4) A brewery manufacturing licensee may not permit any beer, heavy beer, or flavored
             4620      malt beverage to be consumed on the licensed premises, except under the circumstances
             4621      described in this Subsection (4).
             4622          (a) A brewery manufacturing licensee may allow its off-duty staff to consume beer,
             4623      heavy beer, or a flavored malt beverage on its premises without charge.
             4624          (b) A brewery manufacturing licensee may allow a person who can lawfully purchase
             4625      the following for wholesale or retail distribution to consume a bona fide sample of the brewery
             4626      manufacturing licensee's product on the licensed premises:
             4627          (i) beer;
             4628          (ii) heavy beer; or
             4629          (iii) a flavored malt beverage.
             4630          (c) (i) A brewery manufacturing licensee may operate on its licensed premises a retail
             4631      facility allowing consumption on premises of beer in a bottle or on draft if food is also
             4632      available.
             4633          (ii) A retail facility located on the licensed premises of a brewery manufacturing
             4634      licensee shall be operated or supervised by the brewery manufacturing licensee.
             4635          (iii) In operating a retail facility under this Subsection (4)(c), a brewery manufacturing
             4636      licensee shall comply with the requirements of Chapter 7, Part 2, Off-premise Beer Retailer
             4637      Local Authority.
             4638          (5) (a) A small brewer shall own, lease, or maintain and control a warehouse facility
             4639      located in this state for the storage of beer to be sold to a person described in Subsection (1)(d)
             4640      if the small brewer:
             4641          (i) (A) (I) is located in this state; and
             4642          (II) holds a brewery manufacturing license; or
             4643          (B) (I) is located outside this state; and
             4644          (II) holds a certificate of approval to sell beer in this state; and
             4645          (ii) sells beer manufactured by the small brewer directly to a person described in
             4646      Subsection (1)(d).


             4647          (b) A small brewer may not sell beer to a person described in Subsection (1)(d) unless
             4648      the beer:
             4649          (i) is manufactured by the small brewer; and
             4650          (ii) is first placed in the small brewer's warehouse facility in this state.
             4651          (c) (i) A small brewer warehouse shall make and maintain complete beer importation,
             4652      inventory, tax, distribution, sales records, and other records as the department and State Tax
             4653      Commission may require.
             4654          (ii) The records described in Subsection (5)(c)(i) are subject to inspection by:
             4655          (A) the department; and
             4656          (B) the State Tax Commission.
             4657          (iii) Section 32B-1-205 applies to a record required to be made or maintained in
             4658      accordance with this Subsection (5), except that the provision is considered to include an action
             4659      described in Section 32B-1-205 made for the purpose of deceiving the State Tax Commission,
             4660      or an official or employee of the State Tax Commission.
             4661          (6) Subject to Subsection (7):
             4662          (a) A brewery manufacturing licensee may not sell beer in this state except under a
             4663      written agreement with a beer wholesaler licensee in this state.
             4664          (b) An agreement described in Subsection (6)(a) shall:
             4665          (i) create a restricted exclusive sales territory that is mutually agreed upon by the
             4666      persons entering into the agreement;
             4667          (ii) designate the one or more brands that may be distributed in the sales territory; and
             4668          (iii) set forth the exact geographical area of the sales territory.
             4669          (c) A brewery manufacturing licensee may have more than one agreement described in
             4670      this Subsection (6) if each brand of the brewery manufacturing licensee is covered by one
             4671      exclusive sales territory.
             4672          (d) A brewery manufacturing licensee may not enter into an agreement with more than
             4673      one beer wholesaler licensee to distribute the same brand of beer in the same sales territory or
             4674      any portion of the sales territory.
             4675          (7) A small brewer is not subject to the requirements of Subsection (6).
             4676          Section 95. Section 32B-11-604 (Effective 07/01/11) is amended to read:
             4677           32B-11-604 (Effective 07/01/11). Application for local industry representative


             4678      license.
             4679          (1) To obtain a local industry representative license, a person shall submit to the
             4680      department:
             4681          (a) a written application in a form prescribed by the department;
             4682          (b) a nonrefundable [$50] $75 application fee;
             4683          (c) an initial license fee of [$100] $125, which is refundable if a local industry
             4684      representative license is not issued;
             4685          (d) verification that the person is:
             4686          (i) a resident of Utah;
             4687          (ii) a Utah partnership;
             4688          (iii) a Utah corporation; or
             4689          (iv) a Utah limited liability company;
             4690          (e) an affidavit stating the name and address of any manufacturer, supplier, or importer
             4691      the person will represent;
             4692          (f) a signed consent form stating that the local industry representative will permit any
             4693      authorized representative of the commission, department, or any law enforcement officer to
             4694      have an unrestricted right to enter, during normal business hours, the specific premises where
             4695      the local industry representative conducts business;
             4696          (g) if the person is an entity, proper verification evidencing that a person who signs the
             4697      application is authorized to sign on behalf of the entity; and
             4698          (h) any other information the commission or department may require.
             4699          (2) A local industry representative licensee is not required to pay an additional license
             4700      fee to represent more than one manufacturer, supplier, or importer.
             4701          Section 96. Section 32B-11-605 (Effective 07/01/11) is amended to read:
             4702           32B-11-605 (Effective 07/01/11). Renewal requirements for local industry
             4703      representative license.
             4704          (1) A local industry representative license expires on December 31 of each year.
             4705          (2) To renew a local industry representative license, a person shall submit to the
             4706      department by no later than November 30 of the year the license expires:
             4707          (a) a completed renewal application in a form prescribed by the department;
             4708          (b) a renewal fee of [$100] $125; and


             4709          (c) an affidavit stating the name and address of any manufacturer, supplier, or importer
             4710      the local industry representative licensee represents at the time of submitting the renewal
             4711      application.
             4712          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4713      local industry representative license effective on the date the existing local industry
             4714      representative license expires.
             4715          Section 97. Section 32B-11-608 (Effective 07/01/11) is amended to read:
             4716           32B-11-608 (Effective 07/01/11). Operational requirements for local industry
             4717      representative license.
             4718          (1) (a) A local industry representative licensee, staff of the local industry representative
             4719      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             4720      state, shall comply with this title and rules of the commission.
             4721          (b) If a person knowingly violates Subsection (1)(a):
             4722          (i) the violation may result in disciplinary action in accordance with Chapter 3,
             4723      Disciplinary Actions and Enforcement Act, against:
             4724          (A) a local industry representative licensee;
             4725          (B) individual staff of a local industry representative licensee; or
             4726          (C) both a local industry representative licensee and staff of the local industry
             4727      representative licensee; and
             4728          (ii) if the conditions of Subsection (1)(c) are met, the commission may order:
             4729          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             4730      department's sales list; and
             4731          (B) a suspension of the department's purchase of those products for a period
             4732      determined by the commission.
             4733          (c) Subsection (1)(b)(ii) applies if the manufacturer, supplier, or importer:
             4734          (i) directly commits the violation; or
             4735          (ii) solicits, requests, commands, encourages, or intentionally aides another to engage
             4736      in the violation.
             4737          (2) A local industry representative licensee shall display its license in the local industry
             4738      representative licensee's principal place of business.
             4739          (3) (a) A local industry representative licensee shall maintain on file with the


             4740      department a current accounts list of the names and addresses of the manufacturers, suppliers,
             4741      and importers the local industry representative licensee represents.
             4742          (b) A local industry representative licensee shall notify the department in writing of a
             4743      change to its accounts list within 14 days from the date the local industry representative
             4744      licensee:
             4745          (i) acquires the account of a manufacturer, supplier, or importer; or
             4746          (ii) loses the account of a manufacturer, supplier, or importer.
             4747          (4) (a) A local industry representative licensee shall make and maintain the records the
             4748      department requires for at least three years.
             4749          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             4750      accordance with this Subsection (4).
             4751          (5) Staff of a local industry representative licensee may not be:
             4752          (a) a retail licensee that sells, offers for sale, or furnishes liquor;
             4753          (b) staff of a retail licensee that sells, offers for sale, or furnishes liquor; or
             4754          (c) a minor.
             4755          (6) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,
             4756      give, or attempt in any way to dispose of the license to another person, whether for monetary
             4757      gain or not.
             4758          (b) A local industry representative license has no monetary value for any type of
             4759      disposition.
             4760          (7) A local industry representative licensee, staff of the local industry representative
             4761      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             4762      state:
             4763          (a) only to the extent authorized by Chapter 4, Criminal Offenses and Procedure Act,
             4764      may:
             4765          (i) assist the department in:
             4766          (A) ordering, shipping, and delivering merchandise;
             4767          (B) providing new product notification;
             4768          (C) obtaining listing and delisting information;
             4769          (D) receiving price quotations;
             4770          (E) providing product sales analysis;


             4771          (F) conducting shelf management; and
             4772          (G) conducting educational seminars; and
             4773          (ii) to acquire new listings:
             4774          (A) solicit orders from the department; and
             4775          (B) submit to the department price lists and samples of the products of the
             4776      manufacturer, supplier, or importer;
             4777          (b) may not sell liquor within the state except to:
             4778          (i) the department; and
             4779          (ii) a military installation;
             4780          (c) may not ship or transport, or cause to be shipped or transported, liquor into this
             4781      state or from one place to another within this state;
             4782          (d) may not sell or furnish any liquor to any person within this state other than to:
             4783          (i) the department; or
             4784          (ii) a military installation;
             4785          (e) except as otherwise provided, may not advertise a product the local industry
             4786      representative licensee represents in violation of this title or any other federal or state law;
             4787          (f) shall comply with the trade practices provided in Chapter 4, Part 7, Trade Practices
             4788      Act; and
             4789          (g) may only provide a sample of a product of the manufacturer, supplier, or importer
             4790      for tasting and sampling purposes as provided in Section 32B-4-705 by the department.
             4791          (8) A local industry representative licensee may, to become educated as to the quality
             4792      and characteristics of a liquor that the licensee represents, taste and analyze an industry
             4793      representative sample under the conditions listed in this Subsection (8).
             4794          (a) A local industry representative licensee may not receive more than two industry
             4795      representative samples of a particular type, vintage, and production lot of a particular branded
             4796      product within a consecutive 120-day period.
             4797          (b) (i) An industry representative sample of liquor may not exceed one liter.
             4798          (ii) Notwithstanding Subsection (8)(b)(i), an industry representative sample of the
             4799      following may not exceed 1.5 liters unless that exact product is only commercially packaged in
             4800      a larger size, not to exceed 5 liters:
             4801          (A) wine;


             4802          (B) heavy beer; or
             4803          (C) a flavored malt beverage.
             4804          (c) An industry representative sample may only be of a product not presently listed on
             4805      the department's sales list.
             4806          (d) (i) An industry representative sample shall be shipped:
             4807          (A) prepaid by the manufacturer, supplier, or importer;
             4808          (B) by common carrier and not via United States mail; and
             4809          (C) directly to the department's central administrative warehouse office.
             4810          (ii) An industry representative sample may not be shipped to any other location within
             4811      the state.
             4812          (e) An industry representative sample shall be accompanied by a letter from the
             4813      manufacturer, supplier, or importer:
             4814          (i) clearly identifying the product as an "industry representative sample"; and
             4815          (ii) clearly stating:
             4816          (A) the FOB case price of the product; and
             4817          (B) the name of the local industry representative for whom it is intended.
             4818          (f) The department shall assess a reasonable handling, labeling, and storage fee for
             4819      each industry representative sample received.
             4820          (g) The department shall affix to a [package] container a label clearly identifying the
             4821      product as an "industry representative sample."
             4822          (h) The department shall:
             4823          (i) account for and record each industry representative sample received;
             4824          (ii) account for the industry representative sample's disposition; and
             4825          (iii) maintain a record of the industry representative sample and its disposition for a
             4826      two-year period.
             4827          (i) An industry representative sample may not leave the premises of the department's
             4828      central administrative warehouse office.
             4829          (j) A local industry representative licensee's and a local industry representative
             4830      licensee's staff may, at regularly scheduled days and times established by the department, taste
             4831      and analyze one or more industry representative samples on the premises of the department's
             4832      central administrative warehouse office.


             4833          (k) The department shall destroy the unused contents of an opened product remaining
             4834      after a product is sampled under controlled and audited conditions established by the
             4835      department.
             4836          (l) An industry representative sample that is not tasted within 30 days of receipt by the
             4837      department shall be disposed of at the discretion of the department in one of the following
             4838      ways:
             4839          (i) the contents destroyed under controlled and audited conditions established by the
             4840      department; or
             4841          (ii) added to the inventory of the department for sale to the public.
             4842          Section 98. Section 32B-12-202 (Effective 07/01/11) is amended to read:
             4843           32B-12-202 (Effective 07/01/11). Application requirements for liquor
             4844      warehousing license.
             4845          To obtain a liquor warehousing license, a person shall submit to the department:
             4846          (1) a written application in a form prescribed by the department;
             4847          (2) a nonrefundable [$250] $300 application fee;
             4848          (3) an initial license fee of [$750] $850, which is refundable if a liquor warehousing
             4849      license is not issued;
             4850          (4) written consent of the local authority;
             4851          (5) a copy of the person's current business license;
             4852          (6) a bond as specified by Section 32B-12-206 ;
             4853          (7) a floor plan of the person's warehouse, including the area in which the person
             4854      proposes that liquor be stored;
             4855          (8) evidence that the person is carrying public liability insurance in an amount and
             4856      form satisfactory to the department;
             4857          (9) a signed consent form stating that the liquor warehousing licensee will permit any
             4858      authorized representative of the commission, department, or any law enforcement officer to
             4859      have unrestricted right to enter the licensed premises;
             4860          (10) if the person is an entity, proper verification evidencing that a person who signs
             4861      the application is authorized to sign on behalf of the entity; and
             4862          (11) any other information the commission or department may require.
             4863          Section 99. Section 32B-12-203 (Effective 07/01/11) is amended to read:


             4864           32B-12-203 (Effective 07/01/11). Renewal requirements for liquor warehousing
             4865      license.
             4866          (1) A liquor warehousing license expires on December 31 of each year.
             4867          (2) To renew a liquor warehousing license, a person shall submit to the department by
             4868      no later than November 30 of the year the license expires:
             4869          (a) a completed renewal application in a form prescribed by the department; and
             4870          (b) a renewal fee of [$1,000] $1,200.
             4871          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4872      liquor warehousing license effective on the date the existing liquor warehousing license
             4873      expires.
             4874          Section 100. Section 32B-13-202 (Effective 07/01/11) is amended to read:
             4875           32B-13-202 (Effective 07/01/11). Application requirements for beer wholesaling
             4876      license.
             4877          To obtain a beer wholesaling license, a person shall submit to the department:
             4878          (1) a written application in a form prescribed by the department;
             4879          (2) a nonrefundable [$250] $300 application fee;
             4880          (3) an initial license fee of [$2,000] $2,300 that is refundable if a beer wholesaling
             4881      license is not issued;
             4882          (4) written consent of the local authority;
             4883          (5) a copy of the person's current business license;
             4884          (6) a bond as specified in Section 32B-13-206 ;
             4885          (7) a statement of the brands of beer the person is authorized to sell and distribute;
             4886          (8) a statement of the [geographical areas] one or more sales territories in which the
             4887      person is authorized [by the beer manufacturer] to sell and distribute beer under an agreement
             4888      required by Subsection 32B-13-202 (6);
             4889          (9) evidence that the person is carrying public liability insurance in an amount and
             4890      form satisfactory to the department;
             4891          (10) a signed consent form stating that the beer wholesaling licensee will permit any
             4892      authorized representative of the commission, department, or any law enforcement officer to
             4893      have unrestricted right to enter the licensed premises;
             4894          (11) if the person is an entity, proper verification evidencing that a person who signs


             4895      the application is authorized to sign on behalf of the entity; and
             4896          (12) any other information that the commission or department may require.
             4897          Section 101. Section 32B-13-203 (Effective 07/01/11) is amended to read:
             4898           32B-13-203 (Effective 07/01/11). Renewal requirements for beer wholesaling
             4899      license.
             4900          (1) A beer wholesaling license expires on December 31 of each year.
             4901          (2) To renew a beer wholesaling license, a person shall submit to the department by no
             4902      later than November 30 of the year the license expires:
             4903          (a) a completed renewal application in a form prescribed by the department; and
             4904          (b) a renewal fee in the following amount:
             4905      Case Sales in Previous License Year for the Licensee            Renewal Fee
             4906          under 500,000 cases                            [$1,000] $1,200
             4907          equals or exceeds 500,000 cases but less than 1,000,000 cases    [$2,000] $2,350
             4908          equals or exceeds 1,000,000 cases                    [$3,000] $3,500.
             4909          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4910      beer wholesaling license effective on the date the existing beer wholesaling license expires.
             4911          Section 102. Section 32B-13-301 (Effective 07/01/11) is amended to read:
             4912           32B-13-301 (Effective 07/01/11). General operational requirements for beer
             4913      wholesaling license.
             4914          (1) (a) A beer wholesaler licensee and staff of the beer wholesaler licensee shall
             4915      comply with this title and the rules of the commission.
             4916          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             4917      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             4918          (i) a beer wholesaler licensee;
             4919          (ii) individual staff of a beer wholesaler licensee; or
             4920          (iii) both a beer wholesaler licensee and staff of the beer wholesaler licensee.
             4921          (2) (a) A beer wholesaler licensee shall make and maintain the records required by the
             4922      department.
             4923          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             4924      accordance with this Subsection (2).
             4925          (3) A beer wholesaler licensee may not employ a minor to handle an alcoholic product.


             4926          (4) A beer wholesaler licensee may not sell, transfer, assign, exchange, barter, give, or
             4927      attempt in any way to dispose of the beer wholesaling license to a person, whether for monetary
             4928      gain or not, unless it is done:
             4929          (a) in accordance with the commission rules; and
             4930          (b) after written consent is given by the commission.
             4931          (5) A beer wholesaler licensee may not wholesale a beer manufactured within the state
             4932      by a brewer who is not licensed by the commission as a brewery manufacturing licensee.
             4933          (6) A beer wholesaler licensee may not wholesale a beer manufactured out of state by a
             4934      brewer who has not obtained a certificate of approval from the department.
             4935          (7) (a) A beer wholesaler licensee may not sell or distribute beer to a person within the
             4936      state except to:
             4937          (i) a retail licensee;
             4938          (ii) an off-premise beer retailer; or
             4939          (iii) an event permittee.
             4940          (b) A violation of this Subsection (7) is a class A misdemeanor.
             4941          (8) (a) A beer wholesaler licensee may not sell or distribute a beer to a person who sells
             4942      the beer at retail outside of [the geographic area] a sales territory designated on its application
             4943      and authorized by an agreement required by Subsection 32B-13-202 , except that if a beer
             4944      wholesaler licensee is temporarily unable to supply a person within the beer wholesaler
             4945      licensee's authorized [geographical area] sales territory, the department may grant temporary
             4946      authority to another beer wholesaler licensee who distributes the same brand in another [area]
             4947      sales territory to supply:
             4948          (i) a retail licensee; or
             4949          (ii) an off-premise beer retailer.
             4950          (b) A violation of this Subsection (8) is a class B misdemeanor.
             4951          (9) (a) A beer wholesaler licensee shall own, lease, or otherwise control and maintain a
             4952      warehouse facility located in this state for the receipt, storage, and further distribution of beer
             4953      sold by the beer wholesaler licensee to a person within the state.
             4954          (b) A beer wholesaler licensee may not sell beer to a person in this state, other than the
             4955      department, unless the beer is first:
             4956          (i) physically removed from the vehicle used to transport the beer from the supplier to


             4957      the beer wholesaler licensee; and
             4958          (ii) delivered into the actual possession and control of the beer wholesaler licensee in
             4959      its warehouse or other facility.
             4960          (10) A beer wholesaler licensee may not sell or distribute an alcoholic product that has
             4961      not had its label and packaging approved by the department in accordance with Chapter 1, Part
             4962      6, Malted Beverage Act.
             4963          (11) The commission may prescribe by policy or rule, consistent with this title, the
             4964      general operational requirements of a beer wholesaling licensee relating to:
             4965          (a) physical facilities; and
             4966          (b) the conditions of importation, purchase, storage, sale, offering for sale, distribution,
             4967      or transportation of beer within the state.
             4968          Section 103. Section 52-4-205 is amended to read:
             4969           52-4-205. Purposes of closed meetings.
             4970          (1) A closed meeting described under Section 52-4-204 may only be held for:
             4971          (a) discussion of the character, professional competence, or physical or mental health
             4972      of an individual;
             4973          (b) strategy sessions to discuss collective bargaining;
             4974          (c) strategy sessions to discuss pending or reasonably imminent litigation;
             4975          (d) strategy sessions to discuss the purchase, exchange, or lease of real property,
             4976      including any form of a water right or water shares, if public discussion of the transaction
             4977      would:
             4978          (i) disclose the appraisal or estimated value of the property under consideration; or
             4979          (ii) prevent the public body from completing the transaction on the best possible terms;
             4980          (e) strategy sessions to discuss the sale of real property, including any form of a water
             4981      right or water shares, if:
             4982          (i) public discussion of the transaction would:
             4983          (A) disclose the appraisal or estimated value of the property under consideration; or
             4984          (B) prevent the public body from completing the transaction on the best possible terms;
             4985          (ii) the public body previously gave public notice that the property would be offered for
             4986      sale; and
             4987          (iii) the terms of the sale are publicly disclosed before the public body approves the


             4988      sale;
             4989          (f) discussion regarding deployment of security personnel, devices, or systems;
             4990          (g) investigative proceedings regarding allegations of criminal misconduct;
             4991          (h) as relates to the Independent Legislative Ethics Commission, conducting business
             4992      relating to the receipt or review of ethics complaints;
             4993          (i) as relates to an ethics committee of the Legislature, a purpose permitted under
             4994      Subsection 52-4-204 (1)(a)(iii)(B);
             4995          (j) as relates to a county legislative body, discussing commercial information as
             4996      defined in Section 59-1-404 ; [or]
             4997          (k) as relates to the Alcoholic Beverage Control Commission issuing a retail license
             4998      under Title 32B, Alcoholic Beverage Control Act, after receiving public input in a public
             4999      meeting in support or opposition to the commission issuing the retail license, discussing one or
             5000      more of the following factors in a closed meeting:
             5001          (i) a factor the commission is required to consider under Section 32B-5-203 or that is
             5002      specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail
             5003      license at issue;
             5004          (ii) the availability of a retail license under a quota;
             5005          (iii) the length of time the applicant has waited for a retail license;
             5006          (iv) an opening date for the applicant;
             5007          (v) whether the applicant is a seasonal business;
             5008          (vi) whether the location of the applicant has been previously licensed or is a new
             5009      location;
             5010          (vii) whether the application involves a change of ownership of an existing location;
             5011          (viii) whether the applicant holds other alcohol licenses at any location;
             5012          (ix) whether the applicant has a violation history or a pending violation;
             5013          (x) projected alcohol sales for the applicant as it relates to the extent to which the retail
             5014      license will be used;
             5015          (xi) whether the applicant is a small or entrepreneurial business that would benefit the
             5016      community in which it would be located;
             5017          (xii) the nature of entertainment the applicant proposes; or
             5018          (xiii) public input in support or opposition to granting the retail license; or


             5019          [(k)] (l) a purpose for which a meeting is required to be closed under Subsection (2).
             5020          (2) The following meetings shall be closed:
             5021          (a) a meeting of the Health and Human Services Interim Committee to review a fatality
             5022      review report described in Subsection 62A-16-301 (1)(a), and the responses to the report
             5023      described in Subsections 62A-16-301 (2) and (4); and
             5024          (b) a meeting of the Child Welfare Legislative Oversight Panel to:
             5025          (i) review a fatality review report described in Subsection 62A-16-301 (1)(a), and the
             5026      responses to the report described in Subsections 62A-16-301 (2) and (4); or
             5027          (ii) review and discuss an individual case, as described in Subsection 62A-4a-207 (5).
             5028          (3) A public body may not interview a person applying to fill an elected position in a
             5029      closed meeting.
             5030          Section 104. Section 62A-15-401 (Effective 07/01/11) is amended to read:
             5031           62A-15-401 (Effective 07/01/11). Alcohol training and education seminar.
             5032          (1) As used in this part:
             5033          (a) "Instructor" means a person that directly provides the instruction during an alcohol
             5034      training and education seminar for a seminar provider.
             5035          (b) "Licensee" means a person who is:
             5036          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
             5037      and
             5038          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
             5039      of the licensee; or
             5040          (ii) a business that is:
             5041          (A) a new or renewing licensee licensed by a city, town, or county; and
             5042          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
             5043          (c) "Off-premise beer retailer" is as defined in Section 32B-1-102 .
             5044          (d) "Seminar provider" means a person other than the division who provides an alcohol
             5045      training and education seminar meeting the requirements of this section.
             5046          (2) (a) This section applies to an individual who, as defined by the board by rule:
             5047          (i) manages operations at the premises of a licensee engaged in the retail sale of an
             5048      alcoholic product for consumption on the premises of the licensee;
             5049          (ii) supervises the serving of an alcoholic product to a customer for consumption on the


             5050      premises of a licensee;
             5051          (iii) serves an alcoholic product to a customer for consumption on the premises of a
             5052      licensee;
             5053          (iv) directly supervises the sale of beer to a customer for consumption off the premises
             5054      of an off-premise beer retailer; or
             5055          (v) sells beer to a customer for consumption off the premises of an off-premise beer
             5056      retailer.
             5057          (b) If the individual does not have a valid record that the individual has completed an
             5058      alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
             5059          (i) (A) complete an alcohol training and education seminar within 30 days of the
             5060      following if the individual is described in Subsections (2)(a)(i) through (iii):
             5061          (I) if the individual is an employee, the day the individual begins employment;
             5062          (II) if the individual is an independent contractor, the day the individual is first hired;
             5063      or
             5064          (III) if the individual holds an ownership interest in the licensee, the day that the
             5065      individual first engages in an activity that would result in that individual being required to
             5066      complete an alcohol training and education seminar; or
             5067          (B) complete an alcohol training and education seminar within the time periods
             5068      specified in Subsection 32B-5-404 (1) if the individual is described in Subsections (2)(a)(iv)
             5069      and (v); and
             5070          (ii) pay a fee:
             5071          (A) to the seminar provider; and
             5072          (B) that is equal to or greater than the amount established under Subsection (4)(h).
             5073          (c) An individual shall have a valid record that the individual completed an alcohol
             5074      training and education seminar within the time period provided in this Subsection (2) to engage
             5075      in an activity described in Subsection (2)(a).
             5076          (d) A record that an individual has completed an alcohol training and education
             5077      seminar is valid for:
             5078          (i) three years from the day on which the record is issued for an individual described in
             5079      Subsection (2)(a)(i), (ii), or (iii); and
             5080          (ii) five years from the day on which the record is issued for an individual described in


             5081      Subsection (2)(a)(iv) or (v).
             5082          (e) On and after July 1, 2011, to be considered as having completed an alcohol training
             5083      and education seminar an individual shall attend the alcohol training and education seminar in
             5084      the physical presence of an instructor of the seminar provider.
             5085          (3) (a) A licensee may not permit an individual who is not in compliance with
             5086      Subsection (2) to:
             5087          (i) serve or supervise the serving of an alcoholic product to a customer for
             5088      consumption on the premises of the licensee;
             5089          (ii) engage in any activity that would constitute managing operations at the premises of
             5090      a licensee that engages in the retail sale of an alcoholic product for consumption on the
             5091      premises of the licensee;
             5092          (iii) directly supervise the sale of beer to a customer for consumption off the premises
             5093      of an off-premise beer retailer; or
             5094          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
             5095      retailer.
             5096          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-5-403 .
             5097          (4) The division shall:
             5098          (a) (i) provide alcohol training and education seminars; or
             5099          (ii) certify one or more seminar providers;
             5100          (b) establish the curriculum for an alcohol training and education seminar that includes
             5101      the following subjects:
             5102          (i) (A) alcohol as a drug; and
             5103          (B) alcohol's effect on the body and behavior;
             5104          (ii) recognizing the problem drinker or signs of intoxication;
             5105          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
             5106      as determined in consultation with the Department of Alcoholic Beverage Control;
             5107          (iv) dealing with the problem customer, including ways to terminate sale or service;
             5108      and
             5109          (v) for those supervising or engaging in the retail sale of an alcoholic product for
             5110      consumption on the premises of a licensee, alternative means of transportation to get the
             5111      customer safely home;


             5112          (c) recertify each seminar provider every three years;
             5113          (d) monitor compliance with the curriculum described in Subsection (4)(b);
             5114          (e) maintain for at least five years a record of every person who has completed an
             5115      alcohol training and education seminar;
             5116          (f) provide the information described in Subsection (4)(e) on request to:
             5117          (i) the Department of Alcoholic Beverage Control;
             5118          (ii) law enforcement; or
             5119          (iii) a person licensed by the state or a local government to sell an alcoholic product;
             5120          (g) provide the Department of Alcoholic Beverage Control on request a list of any
             5121      seminar provider certified by the division; and
             5122          (h) establish a fee amount for each person attending an alcohol training and education
             5123      seminar that is sufficient to offset the division's cost of administering this section.
             5124          (5) The board shall by rule made in accordance with Title 63G, Chapter 3, Utah
             5125      Administrative Rulemaking Act:
             5126          (a) define what constitutes under this section an individual who:
             5127          (i) manages operations at the premises of a licensee engaged in the retail sale of an
             5128      alcoholic product for consumption on the premises of the licensee;
             5129          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
             5130      premises of a licensee;
             5131          (iii) serves an alcoholic product to a customer for consumption on the premises of a
             5132      licensee;
             5133          (iv) directly supervises the sale of beer to a customer for consumption off the premises
             5134      of an off-premise beer retailer; or
             5135          (v) sells beer to a customer for consumption off the premises of an off-premise beer
             5136      retailer;
             5137          (b) establish criteria for certifying and recertifying a seminar provider; and
             5138          (c) establish guidelines for the manner in which an instructor provides an alcohol
             5139      education and training seminar.
             5140          (6) A seminar provider shall:
             5141          (a) obtain recertification by the division every three years;
             5142          (b) ensure that an instructor used by the seminar provider:


             5143          (i) follows the curriculum established under this section; and
             5144          (ii) conducts an alcohol training and education seminar in accordance with the
             5145      guidelines established by rule;
             5146          (c) ensure that any information provided by the seminar provider or instructor of a
             5147      seminar provider is consistent with:
             5148          (i) the curriculum established under this section; and
             5149          (ii) this section;
             5150          (d) provide the division with the names of all persons who complete an alcohol training
             5151      and education seminar provided by the seminar provider;
             5152          (e) (i) collect a fee for each person attending an alcohol training and education seminar
             5153      in accordance with Subsection (2); and
             5154          (ii) forward to the division the portion of the fee that is equal to the amount described
             5155      in Subsection (4)(h); and
             5156          (f) issue a record to an individual that completes an alcohol training and education
             5157      seminar provided by the seminar provider.
             5158          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
             5159      Administrative Procedures Act, the division finds that a seminar provider violates this section
             5160      or that an instructor of the seminar provider violates this section, the division may:
             5161          (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
             5162          (ii) revoke the certification of the seminar provider;
             5163          (iii) require the seminar provider to take corrective action regarding an instructor; or
             5164          (iv) prohibit the seminar provider from using an instructor until such time that the
             5165      seminar provider establishes to the satisfaction of the division that the instructor is in
             5166      compliance with Subsection (6)(b).
             5167          (b) The division may certify a seminar provider whose certification is revoked:
             5168          (i) no sooner than 90 days from the date the certification is revoked; and
             5169          (ii) if the seminar provider establishes to the satisfaction of the division that the
             5170      seminar provider will comply with this section.
             5171          Section 105. Section 63J-1-201 is amended to read:
             5172           63J-1-201. Governor to submit budget to Legislature -- Contents -- Preparation --
             5173      Appropriations based on current tax laws and not to exceed estimated revenues.


             5174          (1) The governor shall deliver, not later than 30 days before the date the Legislature
             5175      convenes in the annual general session, a confidential draft copy of the governor's proposed
             5176      budget recommendations to the Office of the Legislative Fiscal Analyst.
             5177          (2) (a) The governor shall, within the first three days of the annual general session of
             5178      the Legislature, submit to the presiding officer of each house of the Legislature:
             5179          (i) a proposed budget for the ensuing fiscal year;
             5180          (ii) a schedule for all of the proposed appropriations of the budget, with each
             5181      appropriation clearly itemized and classified;
             5182          (iii) the statement described in Subsection (2)(c); and
             5183          (iv) as applicable, a document showing proposed expenditures and estimated revenues
             5184      that are based on changes in state tax laws or rates.
             5185          (b) The proposed budget shall include:
             5186          (i) a projection of estimated revenues and expenditures for the next fiscal year;
             5187          (ii) the source of all direct, indirect, and in-kind matching funds for all federal grants or
             5188      assistance programs included in the budget;
             5189          (iii) a complete plan of proposed expenditures and estimated revenues for the next
             5190      fiscal year that is based upon the current fiscal year state tax laws and rates;
             5191          (iv) an itemized estimate of the proposed appropriations for:
             5192          (A) the Legislative Department as certified to the governor by the president of the
             5193      Senate and the speaker of the House;
             5194          (B) the Executive Department;
             5195          (C) the Judicial Department as certified to the governor by the state court
             5196      administrator;
             5197          (D) payment and discharge of the principal and interest of the indebtedness of the state;
             5198          (E) the salaries payable by the state under the Utah Constitution or under law for the
             5199      lease agreements planned for the next fiscal year;
             5200          (F) other purposes that are set forth in the Utah Constitution or under law; and
             5201          (G) all other appropriations;
             5202          (v) for each line item, the average annual dollar amount of staff funding associated
             5203      with all positions that were vacant during the last fiscal year; and
             5204          (vi) deficits or anticipated deficits.


             5205          (c) The budget shall be accompanied by a statement showing:
             5206          (i) the revenues and expenditures for the last fiscal year;
             5207          (ii) the current assets, liabilities, and reserves, surplus or deficit, and the debts and
             5208      funds of the state;
             5209          (iii) an estimate of the state's financial condition as of the beginning and the end of the
             5210      period covered by the budget;
             5211          (iv) a complete analysis of lease with an option to purchase arrangements entered into
             5212      by state agencies;
             5213          (v) the recommendations for each state agency for new full-time employees for the
             5214      next fiscal year, which shall also be provided to the State Building Board as required by
             5215      Subsection 63A-5-103 (2);
             5216          (vi) any explanation that the governor may desire to make as to the important features
             5217      of the budget and any suggestion as to methods for the reduction of expenditures or increase of
             5218      the state's revenue; and
             5219          (vii) information detailing certain fee increases as required by Section 63J-1-504 .
             5220          (3) (a) (i) For the purpose of preparing and reporting the proposed budget, the governor
             5221      shall require the proper state officials, including all public and higher education officials, all
             5222      heads of executive and administrative departments and state institutions, bureaus, boards,
             5223      commissions, and agencies expending or supervising the expenditure of the state money, and
             5224      all institutions applying for state money and appropriations, to provide itemized estimates of
             5225      revenues and expenditures.
             5226          (ii) The governor may also require other information under these guidelines and at
             5227      times as the governor may direct, which may include a requirement for program productivity
             5228      and performance measures, where appropriate, with emphasis on outcome indicators.
             5229          (b) The governor may require representatives of public and higher education, state
             5230      departments and institutions, and other institutions or individuals applying for state
             5231      appropriations to attend budget meetings.
             5232          (c) (i) (A) In submitting the budgets for the Departments of Health and Human
             5233      Services and the Office of the Attorney General, the governor shall consider a separate
             5234      recommendation in the governor's budget for funds to be contracted to:
             5235          (I) local mental health authorities under Section 62A-15-110 ;


             5236          (II) local substance abuse authorities under Section 62A-15-110 ;
             5237          (III) area agencies under Section 62A-3-104.2 ;
             5238          (IV) programs administered directly by and for operation of the Divisions of Substance
             5239      Abuse and Mental Health and Aging and Adult Services;
             5240          (V) local health departments under Title 26A, Chapter 1, Local Health Departments;
             5241      and
             5242          (VI) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
             5243          (B) In the governor's budget recommendations under Subsections (3)(c)(i)(A)(I), (II),
             5244      and (III), the governor shall consider an amount sufficient to grant local health departments,
             5245      local mental health authorities, local substance abuse authorities, and area agencies the same
             5246      percentage increase for wages and benefits that the governor includes in the governor's budget
             5247      for persons employed by the state.
             5248          (C) If the governor does not include in the governor's budget an amount sufficient to
             5249      grant the increase described in Subsection (3)(c)(i)(B), the governor shall include a message to
             5250      the Legislature regarding the governor's reason for not including that amount.
             5251          (ii) (A) In submitting the budget for the Department of Agriculture, the governor shall
             5252      consider an amount sufficient to grant local conservation districts and Utah Association of
             5253      Conservation District employees the same percentage increase for wages and benefits that the
             5254      governor includes in the governor's budget for persons employed by the state.
             5255          (B) If the governor does not include in the governor's budget an amount sufficient to
             5256      grant the increase described in Subsection (3)(c)(ii)(A), the governor shall include a message to
             5257      the Legislature regarding the governor's reason for not including that amount.
             5258          (iii) (A) In submitting the budget for the Utah State Office of Rehabilitation and the
             5259      Division of Services for People with Disabilities, the Division of Child and Family Services,
             5260      and the Division of Juvenile Justice Services within the Department of Human Services, the
             5261      governor shall consider an amount sufficient to grant employees of corporations that provide
             5262      direct services under contract with those divisions, the same percentage increase for
             5263      cost-of-living that the governor includes in the governor's budget for persons employed by the
             5264      state.
             5265          (B) If the governor does not include in the governor's budget an amount sufficient to
             5266      grant the increase described in Subsection (3)(c)(iii)(A), the governor shall include a message


             5267      to the Legislature regarding the governor's reason for not including that amount.
             5268          (iv) (A) The Families, Agencies, and Communities Together Council may propose a
             5269      budget recommendation to the governor for collaborative service delivery systems operated
             5270      under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
             5271          (B) The Legislature may, through a specific program schedule, designate funds
             5272      appropriated for collaborative service delivery systems operated under Section 63M-9-402 .
             5273          (v) The governor shall include in the governor's budget the state's portion of the budget
             5274      for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah
             5275      Communications Agency Network Act.
             5276          (vi) (A) The governor shall include a separate recommendation in the governor's
             5277      budget for funds to maintain the operation and administration of the Utah Comprehensive
             5278      Health Insurance Pool.
             5279          (B) In making the recommendation, the governor may consider:
             5280          (I) actuarial analysis of growth or decline in enrollment projected over a period of at
             5281      least three years;
             5282          (II) actuarial analysis of the medical and pharmacy claims costs projected over a period
             5283      of at least three years;
             5284          (III) the annual Medical Care Consumer Price Index;
             5285          (IV) the annual base budget for the pool established by the Commerce and Revenue
             5286      Appropriations Subcommittee for each fiscal year;
             5287          (V) the growth or decline in insurance premium taxes and fees collected by the State
             5288      Tax Commission and the Insurance Department; and
             5289          (VI) the availability of surplus General Fund revenue under Section 63J-1-312 and
             5290      Subsection 59-14-204 (5)(b).
             5291          (vii) (A) In submitting the budget for the Department of Public Safety, the governor
             5292      shall include a separate recommendation in the governor's budget for maintaining a sufficient
             5293      number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
             5294      or below the number specified in Subsection 32B-1-201 (2).
             5295          (B) If the governor does not include in the governor's budget an amount sufficient to
             5296      maintain the number of alcohol-related law enforcement officers described in Subsection
             5297      (3)(c)(vii)(A), the governor shall include a message to the Legislature regarding the governor's


             5298      reason for not including that amount.
             5299          (d) (i) The governor may revise all estimates, except those relating to the Legislative
             5300      Department, the Judicial Department, and those providing for the payment of principal and
             5301      interest to the state debt and for the salaries and expenditures specified by the Utah
             5302      Constitution or under the laws of the state.
             5303          (ii) The estimate for the Legislative Department, as certified by the presiding officers
             5304      of both houses, shall be included in the budget without revision by the governor.
             5305          (iii) The estimate for the Judicial Department, as certified by the state court
             5306      administrator, shall also be included in the budget without revision, but the governor may make
             5307      separate recommendations on the estimate.
             5308          (e) The total appropriations requested for expenditures authorized by the budget may
             5309      not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
             5310      fiscal year.
             5311          (4) In considering the factors in Subsections (3)(c)(vi)(B)(I), (II), and (III) and
             5312      Subsections (5)(b)(ii)(A), (B), and (C), the governor and the Legislature may consider the
             5313      actuarial data and projections prepared for the board of the Utah Comprehensive Health
             5314      Insurance Pool as it develops its financial statements and projections for each fiscal year.
             5315          (5) (a) In adopting a budget for each fiscal year, the Legislature shall consider an
             5316      amount sufficient to grant local health departments, local mental health authorities, local
             5317      substance abuse authorities, area agencies on aging, conservation districts, and Utah
             5318      Association of Conservation District employees the same percentage increase for wages and
             5319      benefits that is included in the budget for persons employed by the state.
             5320          (b) (i) In adopting a budget each year for the Utah Comprehensive Health Insurance
             5321      Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each
             5322      fiscal year.
             5323          (ii) When making a determination under Subsection (5)(b)(i), the Legislature shall
             5324      consider factors it determines are appropriate, which may include:
             5325          (A) actuarial analysis of growth or decline in enrollment projected over a period of at
             5326      least three years;
             5327          (B) actuarial analysis of the medical and pharmacy claims costs projected over a period
             5328      of at least three years;


             5329          (C) the annual Medical Care Consumer Price Index;
             5330          (D) the annual base budget for the pool established by the Commerce and Revenue
             5331      Appropriations Subcommittee for each fiscal year;
             5332          (E) the growth or decline in insurance premium taxes and fees collected by the tax
             5333      commission and the insurance department from the previous fiscal year; and
             5334          (F) the availability of surplus General Fund revenue under Section 63J-1-312 and
             5335      Subsection 59-14-204 (5)(b).
             5336          (iii) The funds appropriated by the Legislature to fund the Utah Comprehensive Health
             5337      Insurance Pool as determined under Subsection (5)(b)(i):
             5338          (A) shall be deposited into the fund established by Section 31A-29-120 ; and
             5339          (B) are restricted and are to be used to maintain the operation, administration, and
             5340      management of the Utah Comprehensive Health Insurance Pool created by Section
             5341      31A-29-104 .
             5342          (6) If any item of the budget as enacted is held invalid upon any ground, the invalidity
             5343      does not affect the budget itself or any other item in it.
             5344          Section 106. Section 63J-1-602.2 is amended to read:
             5345           63J-1-602.2. List of nonlapsing funds and accounts -- Title 31 through Title 45.
             5346          (1) Appropriations from the Technology Development Restricted Account created in
             5347      Section 31A-3-104 .
             5348          (2) Appropriations from the Criminal Background Check Restricted Account created in
             5349      Section 31A-3-105 .
             5350          (3) Appropriations from the Captive Insurance Restricted Account created in Section
             5351      31A-3-304 , except to the extent that Section 31A-3-304 makes the money received under that
             5352      section free revenue.
             5353          (4) Appropriations from the Title Licensee Enforcement Restricted Account created in
             5354      Section 31A-23a-415 .
             5355          (5) The fund for operating the state's Federal Health Care Tax Credit Program, as
             5356      provided in Section 31A-38-104 .
             5357          (6) The Alcoholic Beverage Control Act Enforcement Fund created in Section
             5358      32B-2-305 .
             5359          [(6)] (7) The Special Administrative Expense Account created in Section 35A-4-506 .


             5360          [(7)] (8) Funding for a new program or agency that is designated as nonlapsing under
             5361      Section 36-24-101 .
             5362          [(8)] (9) The Oil and Gas Conservation Account created in Section 40-6-14.5 .
             5363          [(9)] (10) The Off-Highway Access and Education Restricted Account created in
             5364      Section 41-22-19.5 .
             5365          Section 107. Repealer.
             5366          This bill repeals:
             5367          Section 26-7-6 (Effective 07/01/11), Alcohol retailers to post warnings related to
             5368      consumption of alcohol and pregnancy.
             5369          Section 32B-4-506 (Effective 07/01/11), Conflicting interests.
             5370          Section 32B-4-507 (Effective 07/01/11), Interfering with manufacturer, supplier, or
             5371      importer.
             5372          Section 108. Effective date.
             5373          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2011.
             5374          (2) (a) The repeal of Subsection 32B-6-603 (4) in this bill takes effect on November 1,
             5375      2011.
             5376          (b) Title 32B, Chapter 6, Part 8, Reception Center License, enacted by this bill takes
             5377      effect on November 1, 2011.
             5378          (c) Title 32B, Chapter 6, Part 9, Beer-only Restaurant License, enacted by this bill
             5379      takes effect on March 1, 2012.
             5380          (d) Title 32B, Chapter 8a, Transfer of Retail License Act, enacted by this bill takes
             5381      effect on July 1, 2012.
             5382          (e) Section 32B-5-309 as amended by this bill takes effect on July 1, 2012.




Legislative Review Note
    as of 2-17-11 5:09 PM


Office of Legislative Research and General Counsel


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