S.B. 205

1

ALCOHOLIC BEVERAGE CONTROL
2 AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Peter C. Knudson
6 House Sponsor: Scott L Wyatt
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Alcoholic Beverage Control Act.
11 Highlighted Provisions:
12 This bill:
13 . provides for severability;
14 . modifies and adds definitions;
15 . addresses terms of commissioners;
16 . addresses appointment and removal of the director;
17 . adjusts markups by the department and diverts a portion of certain gross sales
18 revenues to the school lunch program;
19 . repeals the wine and liquor tax;
20 . addresses purchases of alcoholic beverages by the department;
21 . addresses disciplinary proceedings and judicial review of those proceedings;
22 . addresses standards for attire, conduct, and entertainment on premises of licensees
23 and permittees;
24 . addresses minors including:
25 . addressing hiring minors;
26 . addressing admitting minors onto premises; and
27 . addressing unlawful acts by minors;

28 . addresses operational restrictions of certain licensees and permittees including
29 on-premise beer retailer and those holding a permit for industrial or manufacturing
30 use;
31 . addresses alcohol-related compliance check investigations;
32 . provides for suspension of driving privileges;
33 . addresses advertising;
34 . removes redundant or out-of-date language; and
35 . makes technical and conforming amendments.
36 Monies Appropriated in this Bill:
37 None
38 Other Special Clauses:
39 This bill has multiple effective dates.
40 Utah Code Sections Affected:
41 AMENDS:
42 32A-1-102, as last amended by Chapter 314, Laws of Utah 2003
43 32A-1-105, as last amended by Chapter 342, Laws of Utah 2006
44 32A-1-106, as last amended by Chapter 14, Laws of Utah 2006
45 32A-1-108, as last amended by Chapter 268, Laws of Utah 2004
46 32A-1-116, as last amended by Chapter 314, Laws of Utah 2003
47 32A-1-119, as last amended by Chapters 14 and 162, Laws of Utah 2006
48 32A-1-120, as renumbered and amended by Chapter 23, Laws of Utah 1990
49 32A-1-122, as last amended by Chapter 314, Laws of Utah 2003
50 32A-1-401, as last amended by Chapter 342, Laws of Utah 2006
51 32A-4-102, as last amended by Chapter 314, Laws of Utah 2003
52 32A-4-106, as last amended by Chapter 268, Laws of Utah 2004
53 32A-4-206, as last amended by Chapter 268, Laws of Utah 2004
54 32A-4-303, as last amended by Chapter 268, Laws of Utah 2004
55 32A-4-307, as last amended by Chapter 268, Laws of Utah 2004
56 32A-4-401, as last amended by Chapter 152, Laws of Utah 2005
57 32A-4-402, as last amended by Chapter 152, Laws of Utah 2005
58 32A-4-406, as last amended by Chapter 152, Laws of Utah 2005

59 32A-5-102, as last amended by Chapter 268, Laws of Utah 2004
60 32A-5-107, as last amended by Chapter 268, Laws of Utah 2004
61 32A-6-301, as last amended by Chapter 314, Laws of Utah 2003
62 32A-6-302, as renumbered and amended by Chapter 23, Laws of Utah 1990
63 32A-7-106, as last amended by Chapter 268, Laws of Utah 2004
64 32A-8-102, as last amended by Chapter 314, Laws of Utah 2003
65 32A-8-106, as last amended by Chapter 314, Laws of Utah 2003
66 32A-8-505, as last amended by Chapter 268, Laws of Utah 2004
67 32A-10-101, as last amended by Chapter 342, Laws of Utah 2006
68 32A-10-102, as last amended by Chapter 314, Laws of Utah 2003
69 32A-10-103, as enacted by Chapter 342, Laws of Utah 2006
70 32A-10-202, as last amended by Chapter 268, Laws of Utah 2004
71 32A-10-206, as last amended by Chapter 268, Laws of Utah 2004
72 32A-10-306, as last amended by Chapter 268, Laws of Utah 2004
73 32A-12-209, as last amended by Chapter 218, Laws of Utah 2004
74 32A-12-213, as last amended by Chapter 268, Laws of Utah 2004
75 32A-12-401, as last amended by Chapter 314, Laws of Utah 2003
76 32A-14a-102, as renumbered and amended by Chapter 197, Laws of Utah 2000
77 53-3-219, as last amended by Chapter 161, Laws of Utah 2004
78 62A-15-401, as last amended by Chapter 342, Laws of Utah 2006
79 76-9-701, as last amended by Chapter 365, Laws of Utah 1997
80 78-3a-506, as repealed and reenacted by Chapter 365, Laws of Utah 1997
81 ENACTS:
82 32A-1-601, Utah Code Annotated 1953
83 32A-1-602, Utah Code Annotated 1953
84 32A-1-603, Utah Code Annotated 1953
85 32A-1-604, Utah Code Annotated 1953
86 32A-12-209.5, Utah Code Annotated 1953
87 REPEALS:
88 59-16-101, as last amended by Chapter 2, Laws of Utah 1988
89 59-16-102, as last amended by Chapter 299, Laws of Utah 1998

90
91 Be it enacted by the Legislature of the state of Utah:
92 Section 1. Section 32A-1-102 is amended to read:
93 32A-1-102. Application of title -- Severability.
94 (1) This title governs alcoholic beverage control in this state except where [local
95 authorities are] a local authority is expressly granted regulatory control by this title.
96 (2) Nothing in this title precludes a local [authorities] authority from regulating the
97 sale, storage, service, or consumption of alcoholic beverages if that regulation does not conflict
98 with [the provisions of] this title.
99 (3) If any provision of this title or the application of any provision to any person or
100 circumstance is held invalid, the remainder of this title shall be given effect without the invalid
101 provision or application. The provisions of this title are severable.
102 Section 2. Section 32A-1-105 is amended to read:
103 32A-1-105. Definitions.
104 As used in this title:
105 (1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
106 retail, for consumption on its premises located at an international airport with a United States
107 Customs office on the premises of the international airport.
108 (2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
109 section.
110 (3) (a) "Alcoholic products" means all products that:
111 (i) contain:
112 (A) at least 63/100 of 1% of alcohol by volume; or
113 (B) at least 1/2 of 1% by weight; and
114 (ii) are obtained by fermentation, infusion, decoction, brewing, distillation, or any other
115 process that uses any liquid or combinations of liquids, whether drinkable or not, to create
116 alcohol in an amount greater than the amount prescribed in Subsection (3)(a)(i).
117 (b) "Alcoholic products" does not include any of the following common items that
118 otherwise come within the definition of alcoholic products:
119 (i) extracts;
120 (ii) vinegars;

121 (iii) ciders;
122 (iv) essences;
123 (v) tinctures;
124 (vi) food preparations; or
125 (vii) over-the-counter drugs and medicines.
126 (4) "Bar" means a counter or similar structure:
127 (a) at which alcoholic beverages are:
128 (i) stored; or
129 (ii) dispensed; or
130 (b) from which alcoholic beverages are served.
131 (5) (a) "Beer" means any product that:
132 (i) contains 63/100 of 1% of alcohol by volume or 1/2 of 1% of alcohol by weight, but
133 not more than 4% of alcohol by volume or 3.2% by weight; and
134 (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
135 (b) Beer may or may not contain hops or other vegetable products.
136 (c) Beer includes a product that:
137 (i) contains alcohol in the percentages described in Subsection (5)(a); and
138 (ii) is referred to as:
139 (A) malt liquor;
140 (B) malted beverages; or
141 (C) malt coolers.
142 (6) (a) "Beer retailer" means [any] a business [establishment] that is:
143 (i) engaged, primarily or incidentally, in the retail sale of beer to [public] patrons,
144 whether for consumption on or off the [establishment's] business premises; and
145 (ii) licensed to sell beer by:
146 (A) the commission;
147 (B) a local authority; or
148 (C) both the commission and a local authority.
149 (b) (i) "Off-premise beer retailer" means a [general food store or similar] business that
150 is engaged in the retail sale of beer to [public] patrons for consumption off the beer retailer's
151 premises.

152 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
153 (c) [(i)] "On-premise beer retailer" means [any beer retailer engaged, primarily or
154 incidentally,] a business that is engaged in the sale of beer to [public] patrons for consumption
155 on the beer retailer's premises, regardless of whether the business sells beer for consumption
156 off the beer retailer's premises.
157 [(ii) "On-premise beer retailer" includes a tavern.]
158 (7) "Billboard" means any public display used to advertise including:
159 (a) a light device;
160 (b) a painting;
161 (c) a drawing;
162 (d) a poster;
163 (e) a sign;
164 (f) a signboard; or
165 (g) a scoreboard.
166 (8) "Brewer" means any person engaged in manufacturing beer.
167 (9) "Cash bar" means the service of alcoholic beverages:
168 (a) at:
169 (i) a banquet; or
170 (ii) a temporary event for which a permit is issued under this title; and
171 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
172 beverage.
173 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
174 a bus company to a group of persons pursuant to a common purpose:
175 (a) under a single contract;
176 (b) at a fixed charge in accordance with the bus company's tariff; and
177 (c) for the purpose of giving the group of persons the exclusive use of the bus and a
178 driver to travel together to a specified destination or destinations.
179 (11) "Church" means a building:
180 (a) set apart for the purpose of worship;
181 (b) in which religious services are held;
182 (c) with which clergy is associated; and

183 (d) which is tax exempt under the laws of this state.
184 (12) "Club" and "private club" means any of the following organized primarily for the
185 benefit of its members:
186 (a) a social club;
187 (b) a recreational association;
188 (c) a fraternal association;
189 (d) an athletic association; or
190 (e) a kindred association.
191 (13) "Commission" means the Alcoholic Beverage Control Commission.
192 (14) "Department" means the Department of Alcoholic Beverage Control.
193 (15) "Distressed merchandise" means any alcoholic beverage in the possession of the
194 department that is saleable, but for some reason is unappealing to the public.
195 [(16) "General food store" means any business establishment primarily engaged in
196 selling food and grocery supplies to public patrons for off-premise consumption.]
197 [(17)] (16) "Guest" means a person accompanied by an active member or visitor of a
198 club who enjoys only those privileges derived from the host for the duration of the visit to the
199 club.
200 [(18)] (17) (a) "Heavy beer" means any product that:
201 (i) contains more than 4% alcohol by volume; and
202 (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
203 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
204 [(19)] (18) "Hosted bar" means the service of alcoholic beverages:
205 (a) without charge; and
206 (b) at a:
207 (i) banquet; or
208 (ii) privately hosted event.
209 [(20)] (19) "Identification card" means the identification card issued under Title 53,
210 Chapter 3, Part 8, Identification Card Act.
211 [(21)] (20) "Interdicted person" means a person to whom the sale, gift, or provision of
212 an alcoholic beverage is prohibited by:
213 (a) law; or

214 (b) court order.
215 [(22)] (21) "Intoxicated" means that to a degree that is unlawful under Section
216 76-9-701 a person is under the influence of:
217 (a) an alcoholic beverage;
218 (b) a controlled substance;
219 (c) a substance having the property of releasing toxic vapors; or
220 (d) a combination of Subsections [(22)] (21)(a) through (c).
221 [(23)] (22) "Licensee" means any person issued a license by the commission to sell,
222 manufacture, store, or allow consumption of alcoholic beverages on premises owned or
223 controlled by the person.
224 [(24)] (23) "Limousine" means any motor vehicle licensed by the state or a local
225 authority, other than a bus or taxicab:
226 (a) in which the driver and passengers are separated by a partition, glass, or other
227 barrier; and
228 (b) that is provided by a company to an individual or individuals at a fixed charge in
229 accordance with the company's tariff for the purpose of giving the individual or individuals the
230 exclusive use of the limousine and a driver to travel to a specified destination or destinations.
231 [(25)] (24) (a) "Liquor" means alcohol, or any alcoholic, spirituous, vinous, fermented,
232 malt, or other liquid, or combination of liquids, a part of which is spirituous, vinous, or
233 fermented, and all other drinks, or drinkable liquids that contain more than 1/2 of 1% of
234 alcohol by volume and is suitable to use for beverage purposes.
235 (b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
236 beverage that has an alcohol content of less than 4% alcohol by volume.
237 [(26)] (25) "Local authority" means:
238 (a) the governing body of the county if the premises are located in an unincorporated
239 area of a county; or
240 (b) the governing body of the city or town if the premises are located in an incorporated
241 city or a town.
242 [(27)] (26) "Manufacture" means to distill, brew, rectify, mix, compound, process,
243 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
244 others.

245 [(28)] (27) "Member" means a person who, after paying regular dues, has full
246 privileges of a club under this title.
247 [(29)] (28) (a) "Military installation" means a base, air field, camp, post, station, yard,
248 center, or homeport facility for any ship:
249 (i) (A) under the control of the United States Department of Defense; or
250 (B) of the National Guard;
251 (ii) that is located within the state; and
252 (iii) including any leased facility.
253 (b) "Military installation" does not include any facility used primarily for:
254 (i) civil works;
255 (ii) rivers and harbors projects; or
256 (iii) flood control projects.
257 [(30)] (29) "Minor" means any person under the age of 21 years.
258 (30) "Nude," "nudity," or "state of nudity" means:
259 (a) the appearance of:
260 (i) the nipple or areola of a female human breast;
261 (ii) a human genital;
262 (iii) a human pubic area; or
263 (iv) a human anus; or
264 (b) a state of dress that fails to opaquely cover:
265 (i) the nipple or areola of a female human breast;
266 (ii) a human genital;
267 (iii) a human pubic area; or
268 (iv) a human anus.
269 (31) "Outlet" means a location other than a state store or package agency where
270 alcoholic beverages are sold pursuant to a license issued by the commission.
271 (32) "Package" means any of the following containing liquor:
272 (a) a container;
273 (b) a bottle;
274 (c) a vessel; or
275 (d) other receptacle.

276 (33) "Package agency" means a retail liquor location operated under a contractual
277 agreement with the department, by a person other than the state, who is authorized by the
278 commission to sell package liquor for consumption off the premises of the agency.
279 (34) "Package agent" means any person permitted by the commission to operate a
280 package agency pursuant to a contractual agreement with the department to sell liquor from
281 premises that the package agent shall provide and maintain.
282 (35) "Permittee" means any person issued a permit by the commission to perform acts
283 or exercise privileges as specifically granted in the permit.
284 (36) "Person" means any individual, partnership, firm, corporation, limited liability
285 company, association, business trust, or other form of business enterprise, including a receiver
286 or trustee, and the plural as well as the singular number, unless the intent to give a more limited
287 meaning is disclosed by the context.
288 (37) "Premises" means any building, enclosure, room, or equipment used in connection
289 with the sale, storage, service, manufacture, distribution, or consumption of alcoholic products,
290 unless otherwise defined in this title or in the rules adopted by the commission.
291 (38) "Prescription" means a writing in legal form, signed by a physician or dentist and
292 given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
293 (39) (a) "Privately hosted event" or "private social function" means a specific social,
294 business, or recreational event for which an entire room, area, or hall has been leased or rented,
295 in advance by an identified group, and the event or function is limited in attendance to people
296 who have been specifically designated and their guests.
297 (b) "Privately hosted event" and "private social function" does not include events or
298 functions to which the general public is invited, whether for an admission fee or not.
299 (40) "Proof of age" means:
300 (a) an identification card;
301 (b) an identification that:
302 (i) is substantially similar to an identification card;
303 (ii) is issued in accordance with the laws of a state other than Utah in which the
304 identification is issued;
305 (iii) includes date of birth; and
306 (iv) has a picture affixed;

307 (c) a valid driver license certificate that:
308 (i) includes date of birth;
309 (ii) has a picture affixed; and
310 (iii) is issued:
311 (A) under Title 53, Chapter 3, Uniform Driver License Act; or
312 (B) in accordance with the laws of the state in which it is issued;
313 (d) a military identification card that:
314 (i) includes date of birth; and
315 (ii) has a picture affixed; or
316 (e) a valid passport.
317 (41) (a) "Public building" means any building or permanent structure owned or leased
318 by the state, a county, or local government entity that is used for:
319 (i) public education;
320 (ii) transacting public business; or
321 (iii) regularly conducting government activities.
322 (b) "Public building" does not mean or refer to any building owned by the state or a
323 county or local government entity when the building is used by anyone, in whole or in part, for
324 proprietary functions.
325 (42) "Representative" means an individual who is compensated by salary, commission,
326 or any other means for representing and selling the alcoholic beverage products of a
327 manufacturer, supplier, or importer of liquor, wine, or heavy beer.
328 (43) "Residence" means the person's principal place of abode within Utah.
329 (44) "Restaurant" means any business establishment:
330 (a) where a variety of foods is prepared and complete meals are served to the general
331 public;
332 (b) located on a premises having adequate culinary fixtures for food preparation and
333 dining accommodations; and
334 (c) that is engaged primarily in serving meals to the general public.
335 (45) "Retailer" means any person engaged in the sale or distribution of alcoholic
336 beverages to the consumer.
337 (46) (a) "Sample" includes:

338 (i) a department sample; and
339 (ii) an industry representative sample.
340 (b) "Department sample" means liquor, wine, and heavy beer that has been placed in
341 the possession of the department for testing, analysis, and sampling.
342 (c) "Industry representative sample" means liquor, wine, and heavy beer that has been
343 placed in the possession of the department for testing, analysis, and sampling by local industry
344 representatives on the premises of the department to educate the local industry representatives
345 of the quality and characteristics of the product.
346 (47) (a) "School" means any building used primarily for the general education of
347 minors.
348 (b) "School" does not include:
349 (i) a nursery school;
350 (ii) an infant day care center; or
351 (iii) a trade or technical school.
352 (48) "Sell," "sale," and "to sell" means any transaction, exchange, or barter whereby,
353 for any consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
354 ordered, delivered for value, or by any means or under any pretext is promised or obtained,
355 whether done by a person as a principal, proprietor, or as an agent, servant, or employee, unless
356 otherwise defined in this title or the rules made by the commission.
357 (49) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
358 which opaque clothing covers no more than:
359 (a) the nipple and areola of the female human breast in a shape and color other than the
360 natural shape and color of the nipple and areola; and
361 (b) the human genitals, pubic area, and anus:
362 (i) with no less than the following at its widest point:
363 (A) four inches coverage width in the front of the human body; and
364 (B) five inches coverage width in the back of the human body; and
365 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
366 (50) "Sexually oriented entertainer" means a person who while in a state of seminudity
367 appears at or performs:
368 (a) for the entertainment of one or more patrons;

369 (b) on the premises of:
370 (i) a class D private club as defined in Subsection 32A-5-101 (3); or
371 (ii) a tavern;
372 (c) on behalf of or at the request of the licensee described in Subsection (50)(b);
373 (d) on a contractual or voluntary basis; and
374 (e) whether or not the person is designated:
375 (i) an employee of the licensee described in Subsection (50)(b);
376 (ii) an independent contractor of the licensee described in Subsection (50)(b);
377 (iii) an agent of the licensee described in Subsection (50)(b); or
378 (iv) otherwise of the licensee described in Subsection (50)(b).
379 [(49)] (51) "Small brewer" means a brewer who manufactures less than 60,000 barrels
380 of beer and heavy beer per year.
381 [(50)] (52) (a) "Spirituous liquor" means liquor that is distilled.
382 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
383 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
384 [(51)] (53) (a) "State label" means the official label designated by the commission
385 affixed to all liquor containers sold in the state.
386 (b) "State label" includes the department identification mark and inventory control
387 number.
388 [(52)] (54) (a) "State store" means a facility for the sale of package liquor:
389 (i) located on premises owned or leased by the state; and
390 (ii) operated by state employees.
391 (b) "State store" does not apply to any:
392 (i) licensee;
393 (ii) permittee; or
394 (iii) package agency.
395 [(53)] (55) "Supplier" means any person selling alcoholic beverages to the department.
396 [(54)] (56) (a) "Tavern" means any business establishment that is:
397 (i) engaged primarily in the retail sale of beer to public patrons for consumption on the
398 establishment's premises; and
399 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.

400 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
401 revenue of the sale of food, although food need not be sold in the establishment:
402 (i) a beer bar;
403 (ii) a parlor;
404 (iii) a lounge;
405 (iv) a cabaret; or
406 (v) a nightclub.
407 [(55)] (57) "Temporary domicile" means the principal place of abode within Utah of a
408 person who does not have a present intention to continue residency within Utah permanently or
409 indefinitely.
410 [(56)] (58) "Unsaleable liquor merchandise" means merchandise that:
411 (a) is unsaleable because the merchandise is:
412 (i) unlabeled;
413 (ii) leaky;
414 (iii) damaged;
415 (iv) difficult to open; or
416 (v) partly filled;
417 (b) is in a container:
418 (i) having faded labels or defective caps or corks;
419 (ii) in which the contents are:
420 (A) cloudy;
421 (B) spoiled; or
422 (C) chemically determined to be impure; or
423 (iii) that contains:
424 (A) sediment; or
425 (B) any foreign substance; or
426 (c) is otherwise considered by the department as unfit for sale.
427 [(57)] (59) "Visitor" means an individual that in accordance with Section 32A-5-107
428 holds limited privileges in a private club by virtue of a visitor card.
429 [(58)] (60) "Warehouser" means any person, other than a licensed manufacturer,
430 engaged in the importation for sale, storage, or distribution of liquor regardless of amount.

431 [(59)] (61) "Wholesaler" means any person engaged in the importation for sale, or in
432 the sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling
433 beer manufactured by that brewer.
434 [(60)] (62) (a) "Wine" means any alcoholic beverage obtained by the fermentation of
435 the natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether
436 or not other ingredients are added.
437 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
438 provided in this title.
439 Section 3. Section 32A-1-106 is amended to read:
440 32A-1-106. Alcoholic Beverage Control Commission -- Membership -- Oaths and
441 bond -- Per diem -- Offices -- Removal -- Meetings.
442 (1) The Alcoholic Beverage Control Commission shall act as a governing board over
443 the Department of Alcoholic Beverage Control.
444 (2) (a) The commission is composed of five part-time commissioners appointed by the
445 governor with the consent of the Senate.
446 (b) No more than three commissioners may be of the same political party.
447 (3) (a) Except as required by Subsection (3)(b), as terms of current [commission
448 members] commissioners expire, the governor shall appoint each new [member] commissioner
449 or reappointed [member] commissioner to a four-year term.
450 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
451 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
452 [commission members are staggered so that approximately half of the commission is appointed
453 every two years] no more than two commissioners expire in a fiscal year.
454 (4) When a vacancy occurs in the [membership] commission for any reason, the
455 replacement shall be appointed for the unexpired term with the consent of the Senate.
456 (5) Each commissioner shall qualify by taking the oath of office and by giving bond to
457 the state for faithful performance of duties in an amount determined by the Division of
458 Finance, and in a form approved by the attorney general. The bond premium shall be paid by
459 the state.
460 (6) (a) [Members shall receive no] A commissioner may not receive compensation or
461 benefits for [their] the commissioner's services, but may receive per diem and expenses

462 incurred in the performance of the [member's] commissioner's official duties at the rates
463 established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
464 (b) [Members] A commissioner may decline to receive per diem and expenses for
465 [their] the commissioner's service.
466 (7) (a) The commission shall elect one of its members to serve as chair, another to
467 serve as vice chair, and other commission officers as it considers advisable, all of whom shall
468 serve at the pleasure of the commission.
469 (b) All [members of] commissioners on the commission have equal voting rights on all
470 commission matters when in attendance at a commission meeting.
471 (c) Three [members] commissioners of the commission is a quorum for conducting
472 commission business.
473 (d) A majority vote of the quorum present is required for any action to be taken by the
474 commission.
475 (8) (a) (i) The governor may remove any commissioner from office for cause after a
476 public hearing conducted by the governor or by an impartial hearing examiner appointed by the
477 governor to conduct the hearing.
478 (ii) The commissioner shall receive written notice of the date, time, and place of the
479 hearing along with the alleged grounds for the removal at least ten days before the hearing.
480 The commissioner shall have the opportunity to attend the hearing, present witnesses and other
481 evidence, and confront and cross examine witnesses.
482 (b) Following the hearing, written findings of fact and conclusions of law shall be
483 prepared by the person conducting the hearing and a copy served upon the commissioner. If
484 the hearing is before a hearing examiner, the hearing examiner shall also issue a written
485 recommendation to the governor.
486 (c) The commissioner shall have five days to file written objections to the
487 recommendation before the governor issues a final order. The governor's order shall be in
488 writing and served upon the commissioner.
489 (9) (a) The commission shall meet at least monthly, but may hold other meetings at
490 times and places as scheduled by the commission, by the chair, or by any three commissioners
491 upon filing a written request for a meeting with the chair.
492 (b) Notice of the time and place of each commission meeting shall be given to each

493 commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
494 Meetings Act. All commission meetings shall be open to the public, except those meetings or
495 portions of meetings that are closed by the commission as authorized by Sections 52-4-204 and
496 52-4-205 .
497 Section 4. Section 32A-1-108 is amended to read:
498 32A-1-108. Director of alcoholic beverage control -- Qualifications -- Oath and
499 bond -- Compensation -- Accountable to commission -- Removal from office.
500 (1) (a) The commission by a vote of four of the five commissioners, with the approval
501 of the governor, shall appoint a director of alcoholic beverage control who is the administrative
502 head of the department.
503 (b) The director serves at the pleasure of the commission, except that the director may
504 only be removed from office by a vote of four commissioners.
505 [(b)] (c) The director may not be a member of the commission.
506 [(c)] (d) The director shall:
507 (i) be qualified in administration [and];
508 (ii) be knowledgeable by experience and training in the field of business management;
509 and [shall]
510 (iii) possess any other qualifications prescribed by the commission.
511 [(2) (a) The director shall qualify by:]
512 [(i) taking the oath of office; and]
513 [(ii) giving a bond for the faithful performance of the director's duties in an amount
514 determined by the Division of Finance and in form approved by the attorney general.]
515 [(b) The bond premium for the bond required by Subsection (2)(a) shall be paid by the
516 state.]
517 [(3)] (2) The director's compensation shall be established by the governor within the
518 salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
519 [(4)] (3) The director shall:
520 (a) carry out the policies of the commission and those of the department;
521 (b) keep the commission fully informed of all operations and administrative activities
522 of the department; and
523 (c) assist the commission in the proper discharge of its duties and responsibilities.

524 [(5) (a) The director may be removed from office for cause by a majority vote of the
525 commission after a public hearing before the full commission.]
526 [(b) The director shall receive written notice of:]
527 [(i) the date, time, and place of the hearing; and]
528 [(ii) the alleged grounds for removal at least ten days before the hearing.]
529 [(c) The director shall be afforded the opportunity to:]
530 [(i) attend the hearing;]
531 [(ii) present witnesses and other evidence; and]
532 [(iii) confront and cross examine witnesses.]
533 [(d) Following the hearing, written findings of fact, conclusions of law, and the final
534 order of the commission shall be issued and served upon the director.]
535 Section 5. Section 32A-1-116 is amended to read:
536 32A-1-116. Purchase of liquor.
537 (1) The department may not purchase or stock [alcoholic beverages] spirituous liquor
538 in containers smaller than 200 [ml.] milliliters except as otherwise allowed by the commission.
539 (2) (a) Each order by the department for the purchase of spirituous liquor, wine, or
540 heavy beer, or any cancellation by the department of an order for spirituous liquor, wine, or
541 heavy beer:
542 (i) shall be executed in writing by the department; and
543 (ii) is not valid or binding unless executed in writing.
544 (b) A copy of each order or cancellation shall be kept on file by the department for at
545 least three years.
546 (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
547 Chapter 4, Uniform Electronic Transactions Act.
548 Section 6. Section 32A-1-119 is amended to read:
549 32A-1-119. Disciplinary proceedings -- Procedure.
550 (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
551 an adjudicative proceeding permitted under this title:
552 (i) against:
553 (A) a permittee;
554 (B) a licensee;

555 (C) a manufacturer;
556 (D) a supplier;
557 (E) an importer;
558 (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
559 or
560 (G) an officer, employee, or agent of:
561 (I) a person listed in Subsections (1)(a)(i)(A) through (F); [and] or
562 (II) a package agent; and
563 (ii) that is brought on the basis of a violation of this title.
564 (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
565 final unappealable judgment or order has been issued.
566 (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
567 necessary and proper for the administration of this title and rules adopted under this title:
568 (i) the commission;
569 (ii) a hearing examiner appointed by the commission for the purposes provided in
570 Subsection 32A-1-107 (3);
571 (iii) the director; and
572 (iv) the department.
573 (b) Except as provided in this section or Section 32A-3-106 , the following shall
574 comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
575 Procedures Act, in adjudicative proceedings:
576 (i) the commission;
577 (ii) a hearing examiner appointed by the commission;
578 (iii) the director; and
579 (iv) the department.
580 (c) Except where otherwise provided by law, all adjudicative proceedings before the
581 commission or its appointed hearing examiner shall be:
582 (i) video or audio recorded; and
583 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
584 Open and Public Meetings Act.
585 (d) All adjudicative proceedings concerning departmental personnel shall be conducted

586 in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
587 (e) All hearings that are informational, fact gathering, and nonadversarial in nature
588 shall be conducted in accordance with rules, policies, and procedures promulgated by the
589 commission, director, or department.
590 (3) (a) A disciplinary proceeding shall be conducted under the authority of the
591 commission, which is responsible for rendering a final decision and order on any disciplinary
592 matter.
593 (b) (i) Nothing in this section precludes the commission from appointing necessary
594 officers, including hearing examiners, from within or without the department, to administer the
595 disciplinary proceeding process.
596 (ii) A hearing examiner appointed by the commission:
597 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
598 (B) shall submit to the commission a report including:
599 (I) findings of fact determined on the basis of a preponderance of the evidence
600 presented at the hearing;
601 (II) conclusions of law; and
602 (III) recommendations.
603 (c) Nothing in this section precludes the commission, after [it] the commission has
604 rendered its final decision and order, from having the director prepare, issue, and cause to be
605 served on the parties the final written order on behalf of the commission.
606 (4) (a) The department may initiate a disciplinary proceeding described in Subsection
607 (4)(b) when the department receives:
608 (i) a report from any government agency, peace officer, examiner, or investigator
609 alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
610 the rules of the commission;
611 (ii) a final adjudication of criminal liability against any person listed in Subsections
612 (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
613 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
614 Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
615 violation of this title.
616 (b) The department may initiate a disciplinary proceeding if the department receives an

617 item listed in Subsection (4)(a) to determine:
618 (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
619 or rules of the commission; and
620 (ii) if a violation is found, the appropriate sanction to be imposed.
621 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
622 (i) if required by law;
623 (ii) before revoking or suspending any permit, license, or certificate of approval issued
624 under this title; or
625 (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A)
626 through (G).
627 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
628 hearing after receiving proper notice is an admission of the charged violation.
629 (c) The validity of a disciplinary proceeding is not affected by the failure of any person
630 to attend or remain in attendance.
631 (d) All disciplinary proceeding hearings shall be presided over by the commission or an
632 appointed hearing examiner.
633 (e) A disciplinary proceeding hearing may be closed only after the commission or
634 hearing examiner makes a written finding that the public interest in an open hearing is clearly
635 outweighed by factors enumerated in the closure order.
636 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
637 hearing may:
638 (A) administer oaths or affirmations;
639 (B) take evidence;
640 (C) take depositions within or without this state; and
641 (D) require by subpoena from any place within this state:
642 (I) the testimony of any person at a hearing; and
643 (II) the production of any books, records, papers, contracts, agreements, documents, or
644 other evidence considered relevant to the inquiry.
645 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
646 produce any books, papers, documents, or tangible things as required in the subpoena.
647 (iii) Any witness subpoenaed or called to testify or produce evidence who claims a

648 privilege against self-incrimination may not be compelled to testify, but the commission or the
649 hearing examiner shall file a written report with the county attorney or district attorney in the
650 jurisdiction where the privilege was claimed or where the witness resides setting forth the
651 circumstance of the claimed privilege.
652 (iv) (A) A person is not excused from obeying a subpoena without just cause.
653 (B) Any district court within the judicial district in which a person alleged to be guilty
654 of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
655 by the party issuing the subpoena, may issue an order requiring the person to:
656 (I) appear before the issuing party; and
657 (II) (Aa) produce documentary evidence if so ordered; or
658 (Bb) give evidence regarding the matter in question.
659 (C) Failure to obey an order of the court may be punished by the court as contempt.
660 (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
661 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
662 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
663 recommend a penalty more severe than that initially sought by the department in the notice of
664 agency action.
665 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
666 shall be served upon the respective parties.
667 (iv) The respondent and the department shall be given reasonable opportunity to file
668 any written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
669 before final commission action.
670 (h) In all cases heard by the commission, it shall issue its final decision and order in
671 accordance with Subsection (3).
672 (6) (a) The commission shall:
673 (i) render a final decision and order on any disciplinary action; and
674 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
675 (b) Any order of the commission is considered final on the date the order becomes
676 effective.
677 (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
678 through (G) has committed a violation of this title or the commission's rules, in accordance

679 with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
680 (i) suspend or revoke the permit, license, or certificate of approval;
681 (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
682 (iii) assess the administrative costs of any [hearing] disciplinary proceeding to the
683 permittee, the licensee, or certificate holder; or
684 (iv) any combination of Subsections (6)(c)(i) through (iii).
685 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
686 32A-1-107 (1)(p) and (4).
687 (e) (i) If a permit or license is suspended under this Subsection (6), a sign provided by
688 the department shall be prominently posted:
689 (A) during the suspension;
690 (B) by the permittee or licensee; and
691 (C) at the entrance of the premises of the permittee or licensee.
692 (ii) The sign required by this Subsection (6)(e) shall:
693 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
694 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
695 sold, served, furnished, or consumed on these premises during the period of suspension."; and
696 (B) include the dates of the suspension period.
697 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
698 to be posted under this Subsection (6)(e) during the suspension period.
699 (f) If a permit or license is revoked, the commission may order the revocation of any
700 compliance bond posted by the permittee or licensee.
701 (g) Any permittee or licensee whose permit or license is revoked may not reapply for a
702 permit or license under this title for three years from the date on which the permit or license is
703 revoked.
704 (h) All costs assessed by the commission shall be transferred into the General Fund in
705 accordance with Section 32A-1-113 .
706 (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder
707 under this section, the department may initiate disciplinary action against an officer, employee,
708 or agent of a permittee, licensee, or certificate holder.
709 (b) If any officer, employee, or agent is found to have violated this title, the

710 commission may prohibit the officer, employee, or agent from serving, selling, distributing,
711 manufacturing, wholesaling, warehousing, or handling alcoholic beverages in the course of
712 employment with any permittee, licensee, or certificate holder under this title for a period
713 determined by the commission.
714 (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of
715 this title or the rules of the commission against:
716 (i) a manufacturer, supplier, or importer of alcoholic beverages; or
717 (ii) an officer, employee, agent, or representative of a person listed in Subsection
718 (8)(a)(i).
719 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
720 commission may, in addition to other penalties prescribed by this title, order:
721 (A) the removal of the manufacturer's, supplier's, or importer's products from the
722 department's sales list; and
723 (B) a suspension of the department's purchase of the products described in Subsection
724 (8)(b)(i)(A) for a period determined by the commission.
725 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
726 (A) any manufacturer, supplier, or importer of liquor, wine, or heavy beer or its officer,
727 employee, agent, or representative violates any provision of this title; and
728 (B) the manufacturer, supplier, or importer:
729 (I) directly committed the violation; or
730 (II) solicited, requested, commanded, encouraged, or intentionally aided another to
731 engage in the violation.
732 (9) (a) The department may initiate a disciplinary proceeding against a brewer holding
733 a certificate of approval under Section 32A-8-101 for an alleged violation of this title or the
734 rules of the commission.
735 (b) If the commission makes a finding that the brewer holding a certificate of approval
736 violates this title or rules of the commission, the commission may take any action against the
737 brewer holding a certificate of approval that the commission could take against a licensee
738 including:
739 (i) suspension or revocation of the certificate of approval; and
740 (ii) imposition of a fine.

741 (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
742 the commission or a hearing examiner appointed by the commission shall proceed formally in
743 accordance with Sections 63-46b-6 through 63-46b-11 in any case where:
744 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
745 and welfare;
746 (ii) the alleged violation involves:
747 (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
748 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
749 Entertainment Act;
750 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
751 of the respondent;
752 (D) interfering or refusing to cooperate with:
753 (I) an authorized official of the department or the state in the discharge of the official's
754 duties in relation to the enforcement of this title; or
755 (II) a peace officer in the discharge of the peace officer's duties in relation to the
756 enforcement of this title;
757 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
758 (F) unlawful importation of alcoholic products; or
759 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
760 32A-12-601 (2), to any person other than the department or a military installation, except to the
761 extent permitted by this title; or
762 (iii) the department determines to seek in a disciplinary proceeding hearing:
763 (A) an administrative fine exceeding $3,000;
764 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
765 or
766 (C) a revocation of a license, permit, or certificate of approval.
767 (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
768 Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
769 Section 7. Section 32A-1-120 is amended to read:
770 32A-1-120. Judicial review -- Stay of commission order.
771 (1) In a disciplinary proceeding, [any party named] as defined in Section 32A-1-119 , a

772 respondent found in a final order of the commission to have violated this title or rules of the
773 commission made under this title may seek judicial review in a court of competent jurisdiction
774 pursuant to the judicial review provisions of Sections 63-46b-14 through 63-46b-18 .
775 [(2) (a) The findings of the commission on questions of fact are final and are not
776 subject to review.]
777 [(b) "Questions of fact" include ultimate facts and findings and conclusions of the
778 commission on reasonableness and discretion.]
779 [(3) After the hearing, the reviewing court shall enter judgment affirming or setting
780 aside the order of the commission.]
781 [(4) (a) The fact that a petition is pending in a reviewing court does not stay or suspend
782 the operation of any order of the commission.]
783 [(b) The reviewing court may order that the commission's order be stayed or suspended
784 during the appeal.]
785 [(c) Before issuing an order staying or suspending the commission's order, the
786 reviewing court shall:]
787 [(i) give three days' notice to the parties; and]
788 [(ii) hold a hearing to receive argument and evidence on whether or not the
789 commission's order should be stayed or suspended.]
790 [(d) If the reviewing court decides to stay or suspend the commission's order, it shall
791 make a written finding that:]
792 [(i) great or irreparable damage would result to the petitioner absent the stay or
793 suspension;]
794 [(ii) specifies the nature of the damage; and]
795 [(iii) is based upon evidence submitted to the court and identified by reference.]
796 (2) Notwithstanding Subsection 63-46b-16 (4)(g), an appellate court may not grant
797 relief on the basis that a finding of fact by the commission in a formal disciplinary proceeding
798 is not supported, if the commission's finding of fact is supported by any evidence of substance
799 in the record of the formal disciplinary proceeding when viewed in light of the whole record
800 before the court.
801 (3) In addition to any other remedy provided by law, the commission may seek
802 enforcement of a commission order in a disciplinary proceeding by seeking civil enforcement

803 in a state district court in accordance with Section 63-46b-19 .
804 Section 8. Section 32A-1-122 is amended to read:
805 32A-1-122. Liquor prices.
806 (1) For purposes of this section:
807 (a) "Landed case cost" means:
808 (i) the cost of the product; and
809 (ii) inbound shipping costs incurred by the department.
810 (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
811 of the department to a state store.
812 [(1)] (2) (a) Except as provided in Subsections (2)(b) and [(3)] (c), all spirituous liquor
813 and wine sold by the department within the state shall be marked up in an amount not less than
814 [64.5%] 86% above the landed case cost to the department.
815 [(2)] (b) All spirituous liquor and wine sold by the department to military installations
816 in Utah shall be marked up in an amount not less than 15% above the landed case cost to the
817 department.
818 [(3)] (c) If a wine manufacturer producing less than 20,000 gallons of wine in any
819 calendar year, as verified by the department pursuant to federal or other verifiable production
820 reports, first applies to the department for a reduced markup, all wine [sold in Utah by the wine
821 manufacturer] produced by the wine manufacturer and sold to the department shall be marked
822 up by the department in an amount not less than [30%] 47% above the landed case cost to the
823 department.
824 (3) (a) Except as provided in Subsection (3)(b), all heavy beer sold by the department
825 within the state shall be marked up in an amount not less than 64.5% above the landed case
826 cost to the department.
827 (b) All heavy beer sold by the department to military installations in Utah shall be
828 marked up in an amount not less than 15% above the landed case cost to the department.
829 (4) Ten percent of the total gross revenue from sales of spiritous liquor, wine, and
830 heavy beer shall be deposited by the department with the state treasurer and credited to the
831 Uniform School Fund to be used to support the school lunch program administered by the State
832 Board of Education under Section 53A-19-201 .
833 [(4)] (5) Nothing in this section prohibits the department from selling discontinued

834 [lines] items at a discount.
835 Section 9. Section 32A-1-401 is amended to read:
836 32A-1-401. Alcohol training and education -- Revocation, suspension, or
837 nonrenewal of licenses.
838 (1) The commission may suspend, revoke, or not renew the license of any licensee
839 licensed by the commission if any of the following individuals, as defined in Section
840 62A-15-401 , fail to complete an alcohol training and education seminar required in Section
841 62A-15-401 :
842 (a) an individual who manages operations at the premises of the licensee engaged in the
843 retail sale of alcoholic beverages for consumption on the premises of the licensee;
844 (b) an individual who supervises the serving of alcoholic beverages to a customer for
845 consumption on the premises of the licensee; or
846 (c) an individual who serves alcoholic beverages to a customer for consumption on the
847 premises of the licensee.
848 (2) A city, town, or county in which an establishment conducts its business may
849 suspend, revoke, or not renew the business license of the establishment if any individual
850 described in Subsection (1) fails to complete an alcohol training and education seminar
851 required in Section 62A-15-401 .
852 (3) A local authority that issues an off-premise beer retailer license to a [general food
853 store or similar] business that is engaged in the retail sale of beer for consumption off the beer
854 retailer's premises may immediately suspend the license if any of the following individuals fail
855 to complete an alcohol training and education seminar required in Sections 32A-10-103 and
856 62A-15-401 , an individual who:
857 (a) directly supervises the sale of beer to a customer for consumption off the premises
858 of the off-premise beer retailer licensee; or
859 (b) sells beer to a customer for consumption off the premises of the off-premise beer
860 retailer licensee.
861 Section 10. Section 32A-1-601 is enacted to read:
862 Part 6. Attire, Conduct, and Entertainment Act
863 32A-1-601. Title -- Purpose -- Application to other laws.
864 (1) This part is known as the "Attire, Conduct, and Entertainment Act."

865 (2) This part establishes reasonable and uniform time, place, and manner of operation
866 restrictions relating to attire, conduct, and sexually oriented entertainers on a premises or at an
867 event at which alcoholic beverages are sold, served, or allowed to be consumed under a retail
868 license or permit issued by the commission so as to:
869 (a) reduce the adverse secondary effects that the attire, conduct, and sexually oriented
870 entertainers may have upon communities of this state; and
871 (b) protect the health, peace, safety, welfare, and morals of the residents of
872 communities of this state.
873 (3) Nothing in this part permits or allows the showing or display of any matter that is
874 contrary to:
875 (a) applicable federal or state statutes prohibiting obscenity; or
876 (b) state statutes relating to lewdness or indecent public displays.
877 (4) A local authority may be more restrictive of attire, conduct, or sexually oriented
878 entertainers of the type prohibited in this part.
879 Section 11. Section 32A-1-602 is enacted to read:
880 32A-1-602. General restrictions on attire and conduct.
881 The following attire and conduct on a premises or at an event regulated by the
882 commission under this title are considered contrary to the public health, peace, safety, welfare,
883 and morals, and are prohibited:
884 (1) employing or using a person in the sale or service of alcoholic beverages while the
885 person is in:
886 (a) a state of nudity;
887 (b) a state of seminudity; or
888 (c) attire, costume, or clothing that exposes to view any portion of:
889 (i) the female breast below the top of the areola; or
890 (ii) the cleft of the buttocks;
891 (2) employing or using the services of a person to mingle with patrons while the person
892 is in:
893 (a) a state of nudity;
894 (b) a state of seminudity; or
895 (c) attire, costume, or clothing that exposes to view any portion of:

896 (i) the female breast below the top of the areola; or
897 (ii) the cleft of the buttocks;
898 (3) encouraging or permitting a person to:
899 (a) engage in or simulate an act of:
900 (i) sexual intercourse;
901 (ii) masturbation;
902 (iii) sodomy;
903 (iv) bestiality;
904 (v) oral copulation;
905 (vi) flagellation; or
906 (vii) a sexual act that is prohibited by Utah law; or
907 (b) touch, caress, or fondle the breast, buttocks, anus, or genitals of any other person;
908 (4) permitting a person to wear or use a device or covering that:
909 (a) is exposed to view; and
910 (b) simulates all or any portion of the human genitals, anus, pubic area, or female
911 breast;
912 (5) permitting a person to use an artificial device or inanimate object to depict an act
913 prohibited by this section;
914 (6) permitting a person to remain on a premises or at an event who exposes to public
915 view any portion of that person's:
916 (a) genitals, pubic area, or anus; or
917 (b) in the case of a female, the areola and nipple of the breast; or
918 (7) showing a film, still picture, electronic reproduction, or other visual reproduction
919 depicting:
920 (a) an act or simulated act of:
921 (i) sexual intercourse;
922 (ii) masturbation;
923 (iii) sodomy;
924 (iv) bestiality;
925 (v) oral copulation;
926 (vi) flagellation; or

927 (vii) a sexual act that is prohibited by Utah law;
928 (b) a person being touched, caressed, or fondled on the breast, buttocks, anus, or
929 genitals;
930 (c) a scene wherein an artificial device or inanimate object is employed to depict, or a
931 drawing is employed to portray, an act prohibited by this section; or
932 (d) a scene wherein a person displays the genitals or anus.
933 Section 12. Section 32A-1-603 is enacted to read:
934 32A-1-603. Sexually oriented entertainer.
935 (1) Subject to the restrictions of this section, live entertainment is permitted on a
936 premises or at an event regulated by the commission.
937 (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
938 (a) appear or perform in a state of nudity;
939 (b) perform or simulate an act of:
940 (i) sexual intercourse;
941 (ii) masturbation;
942 (iii) sodomy;
943 (iv) bestiality;
944 (v) oral copulation;
945 (vi) flagellation; or
946 (v) a sexual act that is prohibited by Utah law; or
947 (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
948 (3) A sexually oriented entertainer may perform in a state of seminudity:
949 (a) only in a tavern or class D private club; and
950 (b) only if:
951 (i) all windows, doors, and other apertures to the premises are darkened or otherwise
952 constructed to prevent anyone outside the premises from seeing the performance; and
953 (ii) the outside entrance doors of the premises remain unlocked.
954 (4) A sexually oriented entertainer may perform only upon a stage or in a designated
955 performance area that is:
956 (a) approved by the commission in accordance with rules made by the commission in
957 accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;

958 (b) configured so as to preclude a patron from:
959 (i) touching the sexually oriented entertainer; or
960 (ii) placing any money or object on or within the costume or the person of the sexually
961 oriented entertainer; and
962 (c) configured so as to preclude the sexually oriented entertainer from touching a
963 patron.
964 (5) A sexually oriented entertainer may not touch a patron:
965 (a) during the sexually oriented entertainer's performance; or
966 (b) while the sexually oriented entertainer is dressed in performance attire or costume.
967 (6) A sexually oriented entertainer, while in the portion of the premises used by
968 patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
969 entertainer's performance attire or costume from the top of the breast to the knee.
970 (7) A patron may not be on the stage or in the performance area while a sexually
971 oriented entertainer is appearing or performing on the stage or in the performance area.
972 (8) A patron may not:
973 (a) touch a sexually oriented entertainer:
974 (i) during the sexually oriented entertainer's performance; or
975 (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
976 or
977 (b) place money or any other object on or within the costume or the person of the
978 sexually oriented entertainer.
979 (9) A minor may not be on a premises described in Subsection (3) when a sexually
980 oriented entertainer is performing on the premises.
981 (10) A person who appears or performs for the entertainment of patrons on a premises
982 or at an event regulated by the commission that is not a tavern or class D private club:
983 (a) may not appear or perform in a state of nudity or a state of seminudity; and
984 (b) may appear or perform in opaque clothing that completely covers the person's
985 genitals, pubic area, and anus if the covering:
986 (i) is not less than the following at its widest point:
987 (A) four inches coverage width in the front of the human body; and
988 (B) five inches coverage width in the back of the human body;

989 (ii) does not taper to less than one inch wide at the narrowest point; and
990 (iii) if covering a female, completely covers the breast below the top of the areola.
991 Section 13. Section 32A-1-604 is enacted to read:
992 32A-1-604. Compliance -- Disciplinary proceeding.
993 (1) Each person granted a license or permit by the commission to sell, serve, or allow
994 consumption of alcoholic beverages on a premises or at an event and each officer, employee, or
995 agent of the licensee or permittee shall comply with the conditions and requirements of this
996 part.
997 (2) Failure to comply with this part may result in a disciplinary proceeding pursuant to
998 Section 32A-1-119 against:
999 (a) a licensee or permittee; and
1000 (b) an officer, employee, or agent of the licensee or permittee.
1001 Section 14. Section 32A-4-102 is amended to read:
1002 32A-4-102. Application and renewal requirements.
1003 (1) A person seeking a restaurant liquor license under this part shall file a written
1004 application with the department, in a form prescribed by the department. It shall be
1005 accompanied by:
1006 (a) a nonrefundable $250 application fee;
1007 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1008 (c) written consent of the local authority;
1009 (d) a copy of the applicant's current business license;
1010 (e) evidence of proximity to any public or private school, church, public library, public
1011 playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
1012 Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
1013 subsections;
1014 (f) a bond as specified by Section 32A-4-105 ;
1015 (g) a floor plan of the restaurant, including consumption areas and the area where the
1016 applicant proposes to keep, store, and sell liquor;
1017 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1018 form satisfactory to the department;
1019 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least

1020 $500,000 per occurrence and $1,000,000 in the aggregate;
1021 (j) a signed consent form stating that the restaurant will permit any authorized
1022 representative of the commission, department, or any law enforcement officer unrestricted right
1023 to enter the restaurant;
1024 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1025 company, proper verification evidencing that the person or persons signing the restaurant
1026 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1027 company; and
1028 (l) any other information the commission or department may require.
1029 (2) (a) All restaurant liquor licenses expire on October 31 of each year.
1030 (b) Persons desiring to renew their restaurant liquor license shall by no later than
1031 September 30 submit:
1032 (i) a completed renewal application to the department; and
1033 (ii) a renewal fee in the following amount:
1034 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1035 under $5,000 $750
1036 equals or exceeds $5,000 but less than $10,000 $900
1037 equals or exceeds $10,000 but less than $25,000 $1,250
1038 equals or exceeds $25,000 $1,500[.]
1039 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1040 the license effective on the date the existing license expires.
1041 (d) Renewal applications shall be in a form as prescribed by the department.
1042 (3) To ensure compliance with Subsection 32A-4-106 [(28)] (25), the commission may
1043 suspend or revoke any restaurant liquor license if the restaurant liquor licensee does not
1044 immediately notify the department of any change in:
1045 (a) ownership of the restaurant;
1046 (b) for a corporate owner, the:
1047 (i) corporate officers or directors; or
1048 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1049 corporation; or
1050 (c) for a limited liability company:

1051 (i) managers; or
1052 (ii) members owning at least 20% of the limited liability company.
1053 Section 15. Section 32A-4-106 is amended to read:
1054 32A-4-106. Operational restrictions.
1055 Each person granted a restaurant liquor license and the employees and management
1056 personnel of the restaurant shall comply with the following conditions and requirements.
1057 Failure to comply may result in a suspension or revocation of the license or other disciplinary
1058 action taken against individual employees or management personnel.
1059 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
1060 stores or package agencies.
1061 (b) Liquor purchased may be transported by the restaurant liquor licensee from the
1062 place of purchase to the licensed premises.
1063 (c) Payment for liquor shall be made in accordance with rules established by the
1064 commission.
1065 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
1066 a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
1067 dispensing system approved by the department in accordance with commission rules adopted
1068 under this title, except that:
1069 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1070 system if used as a secondary flavoring ingredient in a beverage subject to the following
1071 restrictions:
1072 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1073 a primary spirituous liquor;
1074 (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
1075 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
1076 on the floor plan provided to the department; and
1077 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
1078 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1079 system if used:
1080 (i) as a flavoring on desserts; and
1081 (ii) in the preparation of flaming food dishes, drinks, and desserts;

1082 (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
1083 time; and
1084 (d) each restaurant patron may have no more than one spirituous liquor drink at a time
1085 before the patron.
1086 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
1087 exceed five ounces per glass or individual portion.
1088 (ii) An individual portion of wine may be served to a patron in more than one glass as
1089 long as the total amount of wine does not exceed five ounces.
1090 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1091 Subsection (7)(e).
1092 (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
1093 fixed by the commission to tables of four or more persons.
1094 (ii) Wine may be sold and served in containers not exceeding 750 [ml] milliliters at
1095 prices fixed by the commission to tables of less than four persons.
1096 (c) A wine service may be performed and a service charge assessed by the restaurant as
1097 authorized by commission rule for wine purchased at the restaurant.
1098 (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
1099 fixed by the commission.
1100 (b) A service charge may be assessed by the restaurant as authorized by commission
1101 rule for heavy beer purchased at the restaurant.
1102 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may sell
1103 beer for on-premise consumption:
1104 (A) in an open container; and
1105 (B) on draft.
1106 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1107 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1108 container that exceeds one liter.
1109 (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection
1110 (5)(a):
1111 (i) may do so without obtaining a separate on-premise beer retailer license from the
1112 commission; and

1113 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1114 Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
1115 inconsistent with or less restrictive than the operational restrictions under this part.
1116 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1117 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1118 restaurant's:
1119 (i) state liquor license; and
1120 (ii) alcoholic beverage license issued by the local authority.
1121 (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
1122 designated in the licensee's application, unless the licensee first applies for and receives
1123 approval from the department for a change of location within the restaurant.
1124 (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
1125 and be served by a person employed, designated, and trained by the licensee to sell and serve
1126 alcoholic beverages.
1127 (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
1128 from an employee of the restaurant or has carried bottled wine onto the premises of the
1129 restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
1130 or others at the patron's table.
1131 (b) Alcoholic beverages shall be delivered by a server to the patron.
1132 (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
1133 (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
1134 (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
1135 at a time before the patron, subject to the limitation in Subsection (2)(d).
1136 (8) The liquor storage area shall remain locked at all times other than those hours and
1137 days when liquor sales are authorized by law.
1138 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
1139 restaurant during the following days or hours:
1140 (i) until after the polls are closed on the day of any:
1141 (A) regular general election;
1142 (B) regular primary election; or
1143 (C) statewide special election;

1144 (ii) until after the polls are closed on the day of any municipal, special district, or
1145 school election, but only:
1146 (A) within the boundaries of the municipality, special district, or school district; and
1147 (B) if required by local ordinance; and
1148 (iii) on any other day after 12 midnight and before 12 noon.
1149 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1150 Licenses, for on-premise beer licensees.
1151 (10) Alcoholic beverages may not be sold except in connection with an order for food
1152 prepared, sold, and served at the restaurant.
1153 (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
1154 (a) minor;
1155 (b) person actually, apparently, or obviously intoxicated;
1156 (c) known habitual drunkard; or
1157 (d) known interdicted person.
1158 (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
1159 (ii) Liquor may not be sold at discount prices on any date or at any time.
1160 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1161 beverage to the licensee.
1162 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1163 over consumption or intoxication.
1164 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1165 hours of the restaurant's business day such as a "happy hour."
1166 (e) The sale or service of more than one alcoholic beverage for the price of a single
1167 alcoholic beverage is prohibited.
1168 (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
1169 during any set period for a fixed price is prohibited.
1170 (g) A restaurant licensee may not engage in a public promotion involving or offering
1171 free alcoholic beverages to the general public.
1172 (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
1173 (a) the licensee; or
1174 (b) any employee or agent of the licensee.

1175 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
1176 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1177 discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
1178 on-premise consumption.
1179 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its
1180 officers, managers, employees, or agents may not allow:
1181 (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
1182 consumption; or
1183 (ii) consumption of any such alcoholic beverage on its premises.
1184 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1185 or other representative of the licensee upon entering the restaurant.
1186 (d) A wine service may be performed and a service charge assessed by the restaurant as
1187 authorized by commission rule for wine carried in by a patron.
1188 (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
1189 employees may not permit a restaurant patron to carry from the restaurant premises an open
1190 container that:
1191 (i) is used primarily for drinking purposes; and
1192 (ii) contains any alcoholic beverage.
1193 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
1194 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
1195 onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
1196 been recorked or recapped before removal.
1197 (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense
1198 alcoholic beverages.
1199 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1200 employed to enter the sale at a cash register or other sales recording device.
1201 (17) An employee of a restaurant liquor licensee, while on duty, may not:
1202 (a) consume an alcoholic beverage; or
1203 (b) be intoxicated.
1204 (18) Any charge or fee made in connection with the sale, service, or consumption of
1205 liquor may be stated in food or alcoholic beverage menus including:

1206 (a) a set-up charge;
1207 (b) a service charge; or
1208 (c) a chilling fee.
1209 (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
1210 (a) the liquor license that is issued by the department;
1211 (b) a list of the types and brand names of liquor being served through its calibrated
1212 metered dispensing system; and
1213 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1214 drugs is a serious crime that is prosecuted aggressively in Utah."
1215 [(20) The following acts or conduct in a restaurant licensed under this chapter are
1216 considered contrary to the public welfare and morals, and are prohibited upon the premises:]
1217 [(a) employing or using any person in the sale or service of alcoholic beverages while
1218 the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
1219 female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
1220 buttocks, vulva, or genitals;]
1221 [(b) employing or using the services of any person to mingle with the patrons while the
1222 person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);]
1223 [(c) encouraging or permitting any person to touch, caress, or fondle the breasts,
1224 buttocks, anus, or genitals of any other person;]
1225 [(d) permitting any employee or person to wear or use any device or covering, exposed
1226 to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;]
1227 [(e) permitting any person to use artificial devices or inanimate objects to depict any of
1228 the prohibited activities described in this Subsection (20);]
1229 [(f) permitting any person to remain in or upon the premises who exposes to public
1230 view any portion of that person's genitals or anus; or]
1231 [(g) showing films, still pictures, electronic reproductions, or other visual
1232 reproductions depicting:]
1233 [(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
1234 copulation, flagellation, or any sexual acts prohibited by Utah law;]
1235 [(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
1236 genitals;]

1237 [(iii) scenes wherein artificial devices or inanimate objects are used to depict, or
1238 drawings are used to portray, any of the prohibited activities described in this Subsection (20);
1239 or]
1240 [(iv) scenes wherein a person displays the vulva or the anus or the genitals.]
1241 [(21) Nothing in Subsection (20) precludes a local authority from being more
1242 restrictive of acts or conduct of the type prohibited in Subsection (20).]
1243 [(22) (a) Although live entertainment is permitted on the premises of a restaurant liquor
1244 licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
1245 Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
1246 flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
1247 displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
1248 stage or at a designated area approved by the commission.]
1249 [(b) Nothing in Subsection (22)(a) precludes a local authority from being more
1250 restrictive of acts or conduct of the type prohibited in Subsection (22)(a).]
1251 [(23)] (20) A restaurant liquor licensee may not engage in or permit any form of
1252 gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1253 Part 11, Gambling, on the premises of the restaurant liquor licensee.
1254 [(24)] (21) (a) Each restaurant liquor licensee shall maintain an expense ledger or
1255 record showing in detail:
1256 (i) quarterly expenditures made separately for:
1257 (A) malt or brewed beverages;
1258 (B) set-ups;
1259 (C) liquor;
1260 (D) food; and
1261 (E) all other items required by the department; and
1262 (ii) sales made separately for:
1263 (A) malt or brewed beverages;
1264 (B) set-ups;
1265 (C) food; and
1266 (D) all other items required by the department.
1267 (b) The record required by Subsection [(24)] (21)(a) shall be kept:

1268 (i) in a form approved by the department; and
1269 (ii) current for each three-month period.
1270 (c) Each expenditure shall be supported by:
1271 (i) delivery tickets;
1272 (ii) invoices;
1273 (iii) receipted bills;
1274 (iv) canceled checks;
1275 (v) petty cash vouchers; or
1276 (vi) other sustaining data or memoranda.
1277 (d) In addition to a ledger or record required under Subsection [(24)] (21)(a), a
1278 restaurant liquor licensee shall maintain accounting and other records and documents as the
1279 department may require.
1280 (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
1281 alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
1282 other documents of the restaurant required to be made, maintained, or preserved by this title or
1283 the rules of the commission for the purpose of deceiving the commission or the department, or
1284 any of their officials or employees, is subject to:
1285 (i) the suspension or revocation of the restaurant's liquor license; and
1286 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1287 [(25)] (22) (a) A restaurant liquor licensee may not close or cease operation for a
1288 period longer than 240 hours, unless:
1289 (i) the restaurant liquor licensee notifies the department in writing at least seven days
1290 before the closing; and
1291 (ii) the closure or cessation of operation is first approved by the department.
1292 (b) Notwithstanding Subsection [(25)] (22)(a), in the case of emergency closure,
1293 immediate notice of closure shall be made to the department by telephone.
1294 (c) The department may authorize a closure or cessation of operation for a period not to
1295 exceed 60 days. The department may extend the initial period an additional 30 days upon
1296 written request of the restaurant licensee and upon a showing of good cause. A closure or
1297 cessation of operation may not exceed a total of 90 days without commission approval.
1298 (d) Any notice shall include:

1299 (i) the dates of closure or cessation of operation;
1300 (ii) the reason for the closure or cessation of operation; and
1301 (iii) the date on which the licensee will reopen or resume operation.
1302 (e) Failure of the licensee to provide notice and to obtain department authorization
1303 prior to closure or cessation of operation shall result in an automatic forfeiture of:
1304 (i) the license; and
1305 (ii) the unused portion of the license fee for the remainder of the license year effective
1306 immediately.
1307 (f) Failure of the licensee to reopen or resume operation by the approved date shall
1308 result in an automatic forfeiture of:
1309 (i) the license; and
1310 (ii) the unused portion of the license fee for the remainder of the license year.
1311 [(26)] (23) Each restaurant liquor licensee shall maintain at least 70% of its total
1312 restaurant business from the sale of food, which does not include mix for alcoholic beverages
1313 or service charges.
1314 [(27)] (24) A restaurant liquor license may not be transferred from one location to
1315 another, without prior written approval of the commission.
1316 [(28)] (25) (a) A person, having been granted a restaurant liquor license may not sell,
1317 transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to any
1318 other person whether for monetary gain or not.
1319 (b) A restaurant liquor license has no monetary value for the purpose of any type of
1320 disposition.
1321 [(29)] (26) Each server of alcoholic beverages in a licensee's establishment shall keep a
1322 written beverage tab for each table or group that orders or consumes alcoholic beverages on the
1323 premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
1324 consumed.
1325 [(30)] (27) A person's willingness to serve alcoholic beverages may not be made a
1326 condition of employment as a server with a restaurant that has a restaurant liquor license.
1327 Section 16. Section 32A-4-206 is amended to read:
1328 32A-4-206. Operational restrictions.
1329 Each person granted an airport lounge liquor license and the employees and

1330 management personnel of the airport lounge shall comply with the following conditions and
1331 requirements. Failure to comply may result in a suspension or revocation of the license or
1332 other disciplinary action taken against individual employees or management personnel.
1333 (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
1334 state stores or package agencies.
1335 (b) Liquor purchased may be transported by the licensee from the place of purchase to
1336 the licensed premises.
1337 (c) Payment for liquor shall be made in accordance with the rules established by the
1338 commission.
1339 (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
1340 only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
1341 dispensing system approved by the department in accordance with commission rules adopted
1342 under this title, except that:
1343 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1344 system if used as a secondary flavoring ingredient in a beverage subject to the following
1345 restrictions:
1346 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1347 a spirituous primary liquor;
1348 (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
1349 (iii) the airport lounge liquor licensee shall designate a location where flavorings are
1350 stored on the floor plan provided to the department; and
1351 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
1352 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1353 system if used:
1354 (i) as a flavoring on desserts; and
1355 (ii) in the preparation of flaming food dishes, drinks, and desserts; and
1356 (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor
1357 at a time before the patron.
1358 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
1359 exceed five ounces per glass or individual portion.
1360 (ii) An individual portion may be served to a patron in more than one glass as long as

1361 the total amount of wine does not exceed five ounces.
1362 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1363 Subsection (7)(c).
1364 (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
1365 fixed by the commission to tables of four or more persons.
1366 (ii) Wine may be sold and served in containers not exceeding 750 [ml] milliliters at
1367 prices fixed by the commission to tables of less than four persons.
1368 (c) A wine service may be performed and a service charge assessed by the airport
1369 lounge as authorized by commission rule for wine purchased at the airport lounge.
1370 (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
1371 fixed by the commission.
1372 (b) A service charge may be assessed by the airport lounge as authorized by
1373 commission rule for heavy beer purchased at the airport lounge.
1374 (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge licensed to sell liquor may
1375 sell beer for on-premise consumption:
1376 (A) in an open container; and
1377 (B) on draft.
1378 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1379 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1380 container that exceeds one liter.
1381 (b) An airport lounge that sells beer pursuant to Subsection (5)(a):
1382 (i) may do so without obtaining a separate on-premise beer retailer license from the
1383 commission; and
1384 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1385 Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
1386 inconsistent with or less restrictive than the operational restrictions under this part.
1387 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1388 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
1389 lounge's:
1390 (i) state liquor license; and
1391 (ii) alcoholic beverage license issued by the local authority.

1392 (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
1393 designated in the licensee's application, unless the licensee first applies for and receives
1394 approval from the department for a change of location within the airport lounge.
1395 (7) (a) A patron may only make purchases in the airport lounge from and be served by
1396 a person employed, designated, and trained by the licensee to sell, dispense, and serve alcoholic
1397 beverages.
1398 (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
1399 an employee of the airport lounge may serve wine from the bottle to the patron or others at the
1400 patron's table.
1401 (c) Each airport lounge patron may have no more than two alcoholic beverages of any
1402 kind at a time before the patron.
1403 (8) The liquor storage area shall remain locked at all times other than those hours and
1404 days when liquor sales and service are authorized by law.
1405 (9) Alcoholic beverages may not be sold, offered for sale, served, or otherwise
1406 furnished at an airport lounge on any day after 12 midnight and before 8 a.m.
1407 (10) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
1408 (a) minor;
1409 (b) person actually, apparently, or obviously intoxicated;
1410 (c) known habitual drunkard; or
1411 (d) known interdicted person.
1412 (11) (a) (i) Liquor may be sold only at prices fixed by the commission.
1413 (ii) Liquor may not be sold at discount prices on any date or at any time.
1414 (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
1415 to the licensee.
1416 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1417 over consumption or intoxication.
1418 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1419 hours of the airport lounge's business day such as a "happy hour."
1420 (e) The sale or service of more than one alcoholic beverage for the price of a single
1421 alcoholic beverage is prohibited.
1422 (f) The sale or service of an indefinite or unlimited number of alcoholic beverages

1423 during any set period for a fixed price is prohibited.
1424 (g) An airport lounge licensee may not engage in a public promotion involving or
1425 offering free alcoholic beverages to the general public.
1426 (12) Alcoholic beverages may not be purchased for a patron of an airport lounge by:
1427 (a) the licensee; or
1428 (b) any employee or agent of the licensee.
1429 (13) (a) A person may not bring onto the premises of an airport lounge licensee any
1430 alcoholic beverage for on-premise consumption.
1431 (b) An airport lounge or its officers, managers, employees, or agents may not allow a
1432 person to bring onto the airport lounge premises any alcoholic beverage for on-premise
1433 consumption or allow consumption of any such alcoholic beverage on its premises.
1434 (14) An airport lounge licensee and its employees may not permit a patron to remove
1435 any alcoholic beverages from the airport lounge premises.
1436 (15) (a) A minor may not be employed by an airport lounge licensee to sell or dispense
1437 alcoholic beverages.
1438 (b) Notwithstanding Subsection (15)(a), a minor who is at least 16 years of age may be
1439 employed to enter the sale at a cash register or other sales recording device.
1440 (16) An employee of an airport lounge licensee, while on duty, may not:
1441 (a) consume an alcoholic beverage; or
1442 (b) be intoxicated.
1443 (17) Any charge or fee made in connection with the sale, service, or consumption of
1444 liquor may be stated in a food or alcoholic beverage menu including:
1445 (a) a set-up charge;
1446 (b) a service charge; or
1447 (c) a chilling fee.
1448 (18) Each airport lounge liquor licensee shall display in a prominent place in the airport
1449 lounge:
1450 (a) the liquor license that is issued by the department;
1451 (b) a list of the types and brand names of liquor being served through its calibrated
1452 metered dispensing system; and
1453 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or

1454 drugs is a serious crime that is prosecuted aggressively in Utah."
1455 (19) (a) Each airport lounge liquor licensee shall maintain an expense ledger or record
1456 showing in detail:
1457 (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
1458 other items required by the department; and
1459 (ii) sales made separately for malt or brewed beverages, food, and all other items
1460 required by the department.
1461 (b) This record shall be kept:
1462 (i) in a form approved by the department; and
1463 (ii) current for each three-month period.
1464 (c) Each expenditure shall be supported by:
1465 (i) delivery tickets;
1466 (ii) invoices;
1467 (iii) receipted bills;
1468 (iv) canceled checks;
1469 (v) petty cash vouchers; or
1470 (vi) other sustaining data or memoranda.
1471 (d) In addition to a ledger or record required by Subsection (19)(a), each airport lounge
1472 liquor licensee shall maintain accounting and other records and documents as the department
1473 may require.
1474 (e) Any airport lounge or person acting for the airport lounge, who knowingly forges,
1475 falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of
1476 account or other documents of the airport lounge required to be made, maintained, or preserved
1477 by this title or the rules of the commission for the purpose of deceiving the commission or the
1478 department, or any of their officials or employees, is subject to:
1479 (i) the immediate suspension or revocation of the airport lounge's liquor license; and
1480 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1481 (20) An airport lounge liquor license may not be transferred from one location to
1482 another, without prior written approval of the commission.
1483 (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
1484 barter, give, or attempt in any way to dispose of the license to any other person, whether for

1485 monetary gain or not.
1486 (b) An airport lounge liquor license has no monetary value for the purpose of any type
1487 of disposition.
1488 (22) Each server of alcoholic beverages in a licensee's establishment shall keep a
1489 written beverage tab for each table or group that orders or consumes alcoholic beverages on the
1490 premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
1491 consumed.
1492 (23) An airport lounge liquor licensee's premises may not be leased for private
1493 functions.
1494 (24) An airport lounge liquor licensee may not engage in or permit any form of
1495 gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1496 Part 11, Gambling, on the premises of the airport lounge liquor licensee.
1497 Section 17. Section 32A-4-303 is amended to read:
1498 32A-4-303. Application and renewal requirements.
1499 (1) A person seeking a limited restaurant license under this part shall file a written
1500 application with the department, in a form prescribed by the department. The application shall
1501 be accompanied by:
1502 (a) a nonrefundable $250 application fee;
1503 (b) an initial license fee of $500, which is refundable if a license is not granted;
1504 (c) written consent of the local authority;
1505 (d) a copy of the applicant's current business license;
1506 (e) evidence of proximity to any public or private school, church, public library, public
1507 playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
1508 Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
1509 subsections;
1510 (f) a bond as specified by Section 32A-4-306 ;
1511 (g) a floor plan of the restaurant, including:
1512 (i) consumption areas; and
1513 (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
1514 beer;
1515 (h) evidence that the restaurant is carrying public liability insurance in an amount and

1516 form satisfactory to the department;
1517 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1518 $500,000 per occurrence and $1,000,000 in the aggregate;
1519 (j) a signed consent form stating that the restaurant will permit any authorized
1520 representative of the commission, department, or any law enforcement officer unrestricted right
1521 to enter the restaurant;
1522 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1523 company, proper verification evidencing that the person or persons signing the restaurant
1524 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1525 company; and
1526 (l) any other information the commission or department may require.
1527 [(2) A holder of a restaurant liquor license or a private club license on May 5, 2003,
1528 may not be required to pay the application or initial license fees for a limited restaurant license
1529 under this chapter if the licensee:]
1530 [(a) surrenders the restaurant liquor license or private club license before being granted
1531 a limited restaurant license; and]
1532 [(b) applies for a limited restaurant license in calendar year 2003:]
1533 [(i) for the same premises for which the restaurant liquor license or private club license
1534 was granted; and]
1535 [(ii) before the expiration of the restaurant liquor license or private club license.]
1536 [(3)] (2) (a) All limited restaurant licenses expire on October 31 of each year.
1537 (b) A person desiring to renew that person's limited restaurant license shall submit:
1538 (i) a renewal fee of $300; and
1539 (ii) a renewal application to the department no later than September 30.
1540 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1541 the license effective on the date the existing license expires.
1542 (d) Renewal applications shall be in a form as prescribed by the department.
1543 [(4)] (3) To ensure compliance with Subsection 32A-4-307 [(28)] (25), the commission
1544 may suspend or revoke a limited restaurant license if the limited restaurant licensee does not
1545 immediately notify the department of any change in:
1546 (a) ownership of the restaurant;

1547 (b) for a corporate owner, the:
1548 (i) corporate officer or directors; or
1549 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1550 corporation; or
1551 (c) for a limited liability company:
1552 (i) managers; or
1553 (ii) members owning at least 20% of the limited liability company.
1554 Section 18. Section 32A-4-307 is amended to read:
1555 32A-4-307. Operational restrictions.
1556 Each person granted a limited restaurant license and the employees and management
1557 personnel of the restaurant shall comply with the following conditions and requirements.
1558 Failure to comply may result in a suspension or revocation of the license or other disciplinary
1559 action taken against individual employees or management personnel.
1560 (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
1561 except from state stores or package agencies.
1562 (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
1563 transported by the licensee from the place of purchase to the licensed premises.
1564 (c) Payment for wine and heavy beer shall be made in accordance with rules
1565 established by the commission.
1566 (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
1567 spirituous liquor on the premises of the restaurant.
1568 (b) Spirituous liquor may not be on the premises of the restaurant except for use:
1569 (i) as a flavoring on desserts; and
1570 (ii) in the preparation of flaming food dishes, drinks, and desserts.
1571 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
1572 exceed five ounces per glass or individual portion.
1573 (ii) An individual portion may be served to a patron in more than one glass as long as
1574 the total amount of wine does not exceed five ounces.
1575