H.B. 104 Enrolled

1

ALCOHOLIC BEVERAGE LICENSEES AND
2 GAMBLING-LIKE ACTIVITIES
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Stephen E. Sandstrom
6 Senate Sponsor: Curtis S. Bramble
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Alcoholic Beverage Control Act to address gambling-like
11 activities.
12 Highlighted Provisions:
13 This bill:
14 . prohibits certain gambling-like activities;
15 . provides for an exclusion; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 32A-4-106, as last amended by Chapter 268, Laws of Utah 2004
24 32A-4-206, as last amended by Chapter 268, Laws of Utah 2004
25 32A-4-307, as last amended by Chapter 268, Laws of Utah 2004
26 32A-4-406, as last amended by Chapter 152, Laws of Utah 2005
27 32A-5-107, as last amended by Chapter 268, Laws of Utah 2004
28 32A-7-106, as last amended by Chapter 268, Laws of Utah 2004
29 32A-10-206, as last amended by Chapter 268, Laws of Utah 2004

30 32A-10-306, as last amended by Chapter 268, Laws of Utah 2004
31 32A-15a-102, as enacted by Chapter 314, Laws of Utah 2003
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 32A-4-106 is amended to read:
35 32A-4-106. Operational restrictions.
36 Each person granted a restaurant liquor license and the employees and management
37 personnel of the restaurant shall comply with the following conditions and requirements.
38 Failure to comply may result in a suspension or revocation of the license or other disciplinary
39 action taken against individual employees or management personnel.
40 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
41 stores or package agencies.
42 (b) Liquor purchased may be transported by the restaurant liquor licensee from the
43 place of purchase to the licensed premises.
44 (c) Payment for liquor shall be made in accordance with rules established by the
45 commission.
46 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
47 a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
48 dispensing system approved by the department in accordance with commission rules adopted
49 under this title, except that:
50 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
51 system if used as a secondary flavoring ingredient in a beverage subject to the following
52 restrictions:
53 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
54 a primary spirituous liquor;
55 (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
56 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
57 on the floor plan provided to the department; and

58 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
59 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
60 system if used:
61 (i) as a flavoring on desserts; and
62 (ii) in the preparation of flaming food dishes, drinks, and desserts;
63 (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
64 time; and
65 (d) each restaurant patron may have no more than one spirituous liquor drink at a time
66 before the patron.
67 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
68 exceed five ounces per glass or individual portion.
69 (ii) An individual portion of wine may be served to a patron in more than one glass as
70 long as the total amount of wine does not exceed five ounces.
71 (iii) An individual portion of wine is considered to be one alcoholic beverage under
72 Subsection (7)(e).
73 (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
74 fixed by the commission to tables of four or more persons.
75 (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
76 the commission to tables of less than four persons.
77 (c) A wine service may be performed and a service charge assessed by the restaurant as
78 authorized by commission rule for wine purchased at the restaurant.
79 (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
80 fixed by the commission.
81 (b) A service charge may be assessed by the restaurant as authorized by commission
82 rule for heavy beer purchased at the restaurant.
83 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may sell
84 beer for on-premise consumption:
85 (A) in an open container; and

86 (B) on draft.
87 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
88 not exceed two liters, except that beer may not be sold to an individual patron in a size of
89 container that exceeds one liter.
90 (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection
91 (5)(a):
92 (i) may do so without obtaining a separate on-premise beer retailer license from the
93 commission; and
94 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
95 Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
96 inconsistent with or less restrictive than the operational restrictions under this part.
97 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
98 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
99 restaurant's:
100 (i) state liquor license; and
101 (ii) alcoholic beverage license issued by the local authority.
102 (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
103 designated in the licensee's application, unless the licensee first applies for and receives
104 approval from the department for a change of location within the restaurant.
105 (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
106 and be served by a person employed, designated, and trained by the licensee to sell and serve
107 alcoholic beverages.
108 (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
109 from an employee of the restaurant or has carried bottled wine onto the premises of the
110 restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
111 or others at the patron's table.
112 (b) Alcoholic beverages shall be delivered by a server to the patron.
113 (c) Any alcoholic beverage may only be consumed at the patron's table or counter.

114 (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
115 (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
116 at a time before the patron, subject to the limitation in Subsection (2)(d).
117 (8) The liquor storage area shall remain locked at all times other than those hours and
118 days when liquor sales are authorized by law.
119 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
120 restaurant during the following days or hours:
121 (i) until after the polls are closed on the day of any:
122 (A) regular general election;
123 (B) regular primary election; or
124 (C) statewide special election;
125 (ii) until after the polls are closed on the day of any municipal, special district, or
126 school election, but only:
127 (A) within the boundaries of the municipality, special district, or school district; and
128 (B) if required by local ordinance; and
129 (iii) on any other day after 12 midnight and before 12 noon.
130 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
131 Licenses, for on-premise beer licensees.
132 (10) Alcoholic beverages may not be sold except in connection with an order for food
133 prepared, sold, and served at the restaurant.
134 (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
135 (a) minor;
136 (b) person actually, apparently, or obviously intoxicated;
137 (c) known habitual drunkard; or
138 (d) known interdicted person.
139 (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
140 (ii) Liquor may not be sold at discount prices on any date or at any time.
141 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic

142 beverage to the licensee.
143 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
144 over consumption or intoxication.
145 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
146 hours of the restaurant's business day such as a "happy hour."
147 (e) The sale or service of more than one alcoholic beverage for the price of a single
148 alcoholic beverage is prohibited.
149 (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
150 during any set period for a fixed price is prohibited.
151 (g) A restaurant licensee may not engage in a public promotion involving or offering
152 free alcoholic beverages to the general public.
153 (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
154 (a) the licensee; or
155 (b) any employee or agent of the licensee.
156 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
157 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
158 discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
159 on-premise consumption.
160 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its
161 officers, managers, employees, or agents may not allow:
162 (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
163 consumption; or
164 (ii) consumption of any such alcoholic beverage on its premises.
165 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
166 or other representative of the licensee upon entering the restaurant.
167 (d) A wine service may be performed and a service charge assessed by the restaurant as
168 authorized by commission rule for wine carried in by a patron.
169 (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its

170 employees may not permit a restaurant patron to carry from the restaurant premises an open
171 container that:
172 (i) is used primarily for drinking purposes; and
173 (ii) contains any alcoholic beverage.
174 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
175 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
176 onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
177 been recorked or recapped before removal.
178 (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense
179 alcoholic beverages.
180 (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a
181 cash register or other sales recording device.
182 (17) An employee of a restaurant liquor licensee, while on duty, may not:
183 (a) consume an alcoholic beverage; or
184 (b) be intoxicated.
185 (18) Any charge or fee made in connection with the sale, service, or consumption of
186 liquor may be stated in food or alcoholic beverage menus including:
187 (a) a set-up charge;
188 (b) a service charge; or
189 (c) a chilling fee.
190 (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
191 (a) the liquor license that is issued by the department;
192 (b) a list of the types and brand names of liquor being served through its calibrated
193 metered dispensing system; and
194 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
195 drugs is a serious crime that is prosecuted aggressively in Utah."
196 (20) The following acts or conduct in a restaurant licensed under this chapter are
197 considered contrary to the public welfare and morals, and are prohibited upon the premises:

198 (a) employing or using any person in the sale or service of alcoholic beverages while
199 the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
200 female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
201 buttocks, vulva, or genitals;
202 (b) employing or using the services of any person to mingle with the patrons while the
203 person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);
204 (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
205 buttocks, anus, or genitals of any other person;
206 (d) permitting any employee or person to wear or use any device or covering, exposed
207 to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
208 (e) permitting any person to use artificial devices or inanimate objects to depict any of
209 the prohibited activities described in this Subsection (20);
210 (f) permitting any person to remain in or upon the premises who exposes to public
211 view any portion of that person's genitals or anus; or
212 (g) showing films, still pictures, electronic reproductions, or other visual reproductions
213 depicting:
214 (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
215 copulation, flagellation, or any sexual acts prohibited by Utah law;
216 (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
217 genitals;
218 (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
219 drawings are used to portray, any of the prohibited activities described in this Subsection (20);
220 or
221 (iv) scenes wherein a person displays the vulva or the anus or the genitals.
222 (21) Nothing in Subsection (20) precludes a local authority from being more restrictive
223 of acts or conduct of the type prohibited in Subsection (20).
224 (22) (a) Although live entertainment is permitted on the premises of a restaurant liquor
225 licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by

226 Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
227 flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
228 displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
229 stage or at a designated area approved by the commission.
230 (b) Nothing in Subsection (22)(a) precludes a local authority from being more
231 restrictive of acts or conduct of the type prohibited in Subsection (22)(a).
232 (23) A restaurant liquor licensee may not on the premises of the restaurant liquor
233 licensee:
234 (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
235 76, Chapter 10, Part 11, Gambling;
236 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
237 Part 11, Gambling[, on the premises of the restaurant liquor licensee.]; or
238 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
239 the risking of something of value for a return or for an outcome when the return or outcome is
240 based upon an element of chance, excluding the playing of an amusement device that confers
241 only an immediate and unrecorded right of replay not exchangeable for value.
242 (24) (a) Each restaurant liquor licensee shall maintain an expense ledger or record
243 showing in detail:
244 (i) quarterly expenditures made separately for:
245 (A) malt or brewed beverages;
246 (B) set-ups;
247 (C) liquor;
248 (D) food; and
249 (E) all other items required by the department; and
250 (ii) sales made separately for:
251 (A) malt or brewed beverages;
252 (B) set-ups;
253 (C) food; and

254 (D) all other items required by the department.
255 (b) The record required by Subsection (24)(a) shall be kept:
256 (i) in a form approved by the department; and
257 (ii) current for each three-month period.
258 (c) Each expenditure shall be supported by:
259 (i) delivery tickets;
260 (ii) invoices;
261 (iii) receipted bills;
262 (iv) canceled checks;
263 (v) petty cash vouchers; or
264 (vi) other sustaining data or memoranda.
265 (d) In addition to a ledger or record required under Subsection (24)(a), a restaurant
266 liquor licensee shall maintain accounting and other records and documents as the department
267 may require.
268 (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
269 alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
270 other documents of the restaurant required to be made, maintained, or preserved by this title or
271 the rules of the commission for the purpose of deceiving the commission or the department, or
272 any of their officials or employees, is subject to:
273 (i) the suspension or revocation of the restaurant's liquor license; and
274 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
275 (25) (a) A restaurant liquor licensee may not close or cease operation for a period
276 longer than 240 hours, unless:
277 (i) the restaurant liquor licensee notifies the department in writing at least seven days
278 before the closing; and
279 (ii) the closure or cessation of operation is first approved by the department.
280 (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
281 notice of closure shall be made to the department by telephone.

282 (c) The department may authorize a closure or cessation of operation for a period not to
283 exceed 60 days. The department may extend the initial period an additional 30 days upon
284 written request of the restaurant licensee and upon a showing of good cause. A closure or
285 cessation of operation may not exceed a total of 90 days without commission approval.
286 (d) Any notice shall include:
287 (i) the dates of closure or cessation of operation;
288 (ii) the reason for the closure or cessation of operation; and
289 (iii) the date on which the licensee will reopen or resume operation.
290 (e) Failure of the licensee to provide notice and to obtain department authorization
291 prior to closure or cessation of operation shall result in an automatic forfeiture of:
292 (i) the license; and
293 (ii) the unused portion of the license fee for the remainder of the license year effective
294 immediately.
295 (f) Failure of the licensee to reopen or resume operation by the approved date shall
296 result in an automatic forfeiture of:
297 (i) the license; and
298 (ii) the unused portion of the license fee for the remainder of the license year.
299 (26) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
300 business from the sale of food, which does not include mix for alcoholic beverages or service
301 charges.
302 (27) A restaurant liquor license may not be transferred from one location to another,
303 without prior written approval of the commission.
304 (28) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
305 assign, exchange, barter, give, or attempt in any way to dispose of the license to any other
306 person whether for monetary gain or not.
307 (b) A restaurant liquor license has no monetary value for the purpose of any type of
308 disposition.
309 (29) Each server of alcoholic beverages in a licensee's establishment shall keep a

310 written beverage tab for each table or group that orders or consumes alcoholic beverages on the
311 premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
312 consumed.
313 (30) A person's willingness to serve alcoholic beverages may not be made a condition
314 of employment as a server with a restaurant that has a restaurant liquor license.
315 Section 2. Section 32A-4-206 is amended to read:
316 32A-4-206. Operational restrictions.
317 Each person granted an airport lounge liquor license and the employees and
318 management personnel of the airport lounge shall comply with the following conditions and
319 requirements. Failure to comply may result in a suspension or revocation of the license or
320 other disciplinary action taken against individual employees or management personnel.
321 (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
322 state stores or package agencies.
323 (b) Liquor purchased may be transported by the licensee from the place of purchase to
324 the licensed premises.
325 (c) Payment for liquor shall be made in accordance with the rules established by the
326 commission.
327 (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
328 only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
329 dispensing system approved by the department in accordance with commission rules adopted
330 under this title, except that:
331 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
332 system if used as a secondary flavoring ingredient in a beverage subject to the following
333 restrictions:
334 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
335 a spirituous primary liquor;
336 (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
337 (iii) the airport lounge liquor licensee shall designate a location where flavorings are

338 stored on the floor plan provided to the department; and
339 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
340 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
341 system if used:
342 (i) as a flavoring on desserts; and
343 (ii) in the preparation of flaming food dishes, drinks, and desserts; and
344 (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor
345 at a time before the patron.
346 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
347 exceed five ounces per glass or individual portion.
348 (ii) An individual portion may be served to a patron in more than one glass as long as
349 the total amount of wine does not exceed five ounces.
350 (iii) An individual portion of wine is considered to be one alcoholic beverage under
351 Subsection (7)(c).
352 (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
353 fixed by the commission to tables of four or more persons.
354 (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
355 the commission to tables of less than four persons.
356 (c) A wine service may be performed and a service charge assessed by the airport
357 lounge as authorized by commission rule for wine purchased at the airport lounge.
358 (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
359 fixed by the commission.
360 (b) A service charge may be assessed by the airport lounge as authorized by
361 commission rule for heavy beer purchased at the airport lounge.
362 (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge licensed to sell liquor may
363 sell beer for on-premise consumption:
364 (A) in an open container; and
365 (B) on draft.

366 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
367 not exceed two liters, except that beer may not be sold to an individual patron in a size of
368 container that exceeds one liter.
369 (b) An airport lounge that sells beer pursuant to Subsection (5)(a):
370 (i) may do so without obtaining a separate on-premise beer retailer license from the
371 commission; and
372 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
373 Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
374 inconsistent with or less restrictive than the operational restrictions under this part.
375 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
376 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
377 lounge's:
378 (i) state liquor license; and
379 (ii) alcoholic beverage license issued by the local authority.
380 (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
381 designated in the licensee's application, unless the licensee first applies for and receives
382 approval from the department for a change of location within the airport lounge.
383 (7) (a) A patron may only make purchases in the airport lounge from and be served by
384 a person employed, designated, and trained by the licensee to sell, dispense, and serve alcoholic
385 beverages.
386 (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
387 an employee of the airport lounge may serve wine from the bottle to the patron or others at the
388 patron's table.
389 (c) Each airport lounge patron may have no more than two alcoholic beverages of any
390 kind at a time before the patron.
391 (8) The liquor storage area shall remain locked at all times other than those hours and
392 days when liquor sales and service are authorized by law.
393 (9) Alcoholic beverages may not be sold, offered for sale, served, or otherwise

394 furnished at an airport lounge on any day after 12 midnight and before 8 a.m.
395 (10) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
396 (a) minor;
397 (b) person actually, apparently, or obviously intoxicated;
398 (c) known habitual drunkard; or
399 (d) known interdicted person.
400 (11) (a) (i) Liquor may be sold only at prices fixed by the commission.
401 <