H.B. 344

1

ALCOHOLIC BEVERAGE ENFORCEMENT
2 PROVISIONS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Curtis Oda
6 Senate Sponsor: ____________
7 Cosponsors:
8 Jim Bird
9 Jackie Biskupski
10 Rebecca Chavez-Houck
11 Julie Fisher
12 Craig A. Frank
13 Gage FroererKevin S. Garn
Richard A. Greenwood
Christopher N. Herrod
Gregory H. Hughes
Christine A. Johnson
Michael T. MorleyMichael E. Noel
Patrick Painter
Stephen E. Sandstrom
Jennifer M. Seelig
Kenneth W. Sumsion
Carl Wimmer 14
15 LONG TITLE
16 General Description:
17 This bill modifies the Alcoholic Beverage Control Act to address enforcement actions.
18 Highlighted Provisions:
19 This bill:
20 . prohibits the Department of Alcoholic Beverage Control or its director, with some
21 exceptions, from:
22 . initiating a disciplinary proceeding;
23 . conducting a hearing; or
24 . having one of its employees be selected as a hearing officer;
25 . authorizes the attorney general to initiate a disciplinary proceeding under the same
26 conditions that the department previously initiated a disciplinary proceeding;
27 . modifies the Alcoholic Beverage Control Commission's authority to appoint hearing
28 examiners to prohibit the appointment of an employee of the department as a
29 hearing examiner;

30 . addresses altering documents in relation to the attorney general;
31 . addresses false statements, obstruction, bribes, and forgery in relation to the
32 attorney general;
33 . addresses interfering with suppliers by the attorney general;
34 . addresses duties to enforce and authority to inspect in relation to the attorney
35 general;
36 . addresses governmental immunity;
37 . addresses nuisance actions; and
38 . makes technical and conforming amendments.
39 Monies Appropriated in this Bill:
40 None
41 Other Special Clauses:
42 None
43 Utah Code Sections Affected:
44 AMENDS:
45 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
46 32A-1-113, as last amended by Laws of Utah 2003, Chapter 314
47 32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
48 32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
49 32A-4-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
50 32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
51 32A-4-406, as last amended by Laws of Utah 2007, Chapters 284 and 341
52 32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
53 32A-8-106, as last amended by Laws of Utah 2007, Chapter 284
54 32A-8-505, as last amended by Laws of Utah 2007, Chapter 284
55 32A-9-106, as last amended by Laws of Utah 2003, Chapter 314
56 32A-10-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
57 32A-11-106, as last amended by Laws of Utah 2004, Chapter 268
58 32A-12-304, as last amended by Laws of Utah 2000, Chapter 1
59 32A-12-305, as last amended by Laws of Utah 2003, Chapter 314
60 32A-12-306, as last amended by Laws of Utah 2003, Chapter 314

61 32A-12-307, as last amended by Laws of Utah 2003, Chapter 314
62 32A-12-308, as last amended by Laws of Utah 2003, Chapter 314
63 32A-12-310, as last amended by Laws of Utah 2000, Chapter 1
64 32A-13-108, as last amended by Laws of Utah 1990, Chapter 118 and renumbered and
65 amended by Laws of Utah 1990, Chapter 23
66 32A-13-109, as last amended by Laws of Utah 2000, Chapter 1
67 32A-14a-104, as renumbered and amended by Laws of Utah 2000, Chapter 197
68 32A-15a-102, as last amended by Laws of Utah 2007, Chapter 341
69 32A-15a-202, as enacted by Laws of Utah 2003, Chapter 314
70 32A-15a-203, as enacted by Laws of Utah 2003, Chapter 314
71
72 Be it enacted by the Legislature of the state of Utah:
73 Section 1. Section 32A-1-107 is amended to read:
74 32A-1-107. Powers and duties of the commission.
75 (1) The commission shall:
76 (a) act as a general policymaking body on the subject of alcoholic product control;
77 (b) adopt and issue policies, directives, rules, and procedures;
78 (c) set policy by written rules that establish criteria and procedures for:
79 (i) granting, denying, suspending, or revoking [permits, licenses, certificates] a permit,
80 license, certificate of approval, [and] or package [agencies] agency;
81 (ii) controlling liquor merchandise inventory including:
82 (A) listing and delisting one or more products;
83 (B) the procedures for testing a new [products] product;
84 (C) purchasing policy;
85 (D) turnover requirements for regularly coded products to be continued; and
86 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
87 (iii) determining the location of a state [stores] store, package [agencies, and outlets]
88 agency, or outlet;
89 (d) decide within the limits and under the conditions imposed by this title, the number
90 and location of state stores, package agencies, and outlets established in the state;
91 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,

92 certificates of approval, and package agencies for the purchase, sale, storage, service,
93 manufacture, distribution, and consumption of an alcoholic [products] product:
94 (i) package [agencies] agency;
95 (ii) restaurant [licenses] license;
96 (iii) airport lounge [licenses] license;
97 (iv) limited restaurant [licenses] license;
98 (v) on-premise banquet [licenses] license;
99 (vi) private club [licenses] license;
100 (vii) on-premise beer retailer [licenses] license;
101 (viii) temporary special event beer [permits] permit;
102 (ix) special use [permits] permit;
103 (x) single event [permits] permit;
104 (xi) manufacturing [licenses] license;
105 (xii) liquor warehousing [licenses] license;
106 (xiii) beer wholesaling [licenses] license; and
107 (xiv) out-of-state brewer [certificates] certificate of approval;
108 (f) fix prices at which [liquors are] liquor is sold that [are] is the same at all state
109 stores, package agencies, and outlets;
110 (g) issue and distribute price lists showing the price to be paid by [purchasers for each]
111 a purchaser for a class, variety, or brand of liquor kept for sale by the department;
112 (h) (i) require the director to follow sound management principles; and
113 (ii) require periodic reporting from the director to ensure that:
114 (A) sound management principles are being followed; and
115 (B) policies established by the commission are being observed;
116 (i) (i) receive, consider, and act in a timely manner upon [all reports, recommendations,
117 and matters] a report, recommendation, or matter submitted by the director to the commission;
118 and
119 (ii) do all things necessary to support the department in properly performing the
120 department's [duties and] responsibilities;
121 (j) obtain temporarily and for special purposes the services of [experts and persons] an
122 expert or person engaged in the practice of a profession or who [possess any] possesses a

123 needed [skills, talents, or abilities] skill, talent, or ability if:
124 (i) considered expedient; and
125 (ii) approved by the governor;
126 (k) prescribe the duties of a departmental [officials] official authorized to assist the
127 commission in issuing [permits, licenses, certificates] a permit, license, certificate of approval,
128 [and] or package [agencies] agency under this title;
129 (l) prescribe, consistent with this title, the fees payable for:
130 (i) [permits, licenses, certificates] a permit, license, certificate of approval, [and] or
131 package [agencies] agency issued under this title; or
132 (ii) anything done or permitted to be done under this title;
133 (m) prescribe the conduct, management, and equipment of [any] premises upon which
134 an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
135 (n) make rules governing the credit terms of beer sales to [retailers] a retailer within the
136 state;
137 (o) require that each of the following, where required in this title, display in a
138 prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
139 or drugs is a serious crime that is prosecuted aggressively in Utah.":
140 (i) a state store;
141 (ii) a permittee;
142 (iii) a licensee; and
143 (iv) a package agency; [and]
144 (p) subject to Subsection (4) and as provided in this title, impose fines against:
145 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
146 (1)(e); or
147 (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
148 package agent described in Subsection (1)(p)(i)[.]; and
149 (q) do all things necessary to support the attorney general in properly performing the
150 attorney general's responsibility under this title.
151 (2) The power of the commission to do the following is plenary, except as otherwise
152 provided by this title, and not subject to review:
153 (a) establish a state [stores] store;

154 (b) create a package [agencies] agency;
155 (c) grant authority to operate a package [agencies] agency; and
156 (d) grant or deny [permits, licenses, and certificates] a permit, license, or certificate of
157 approval.
158 (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
159 [any] a suspension or revocation [hearings] hearing required by law, except that a hearing
160 officer may not be an employee of the department.
161 (4) (a) In [any] the case where the commission is given the power to suspend [any] a
162 permit, license, certificate of approval, or package agency, the commission may impose a fine
163 in addition to or in lieu of suspension.
164 (b) [Fines] One or more fines imposed may not exceed $25,000 in the aggregate for:
165 (i) [any] a single Notice of Agency Action; or
166 (ii) a single action against a package agency.
167 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
168 for each violation.
169 Section 2. Section 32A-1-113 is amended to read:
170 32A-1-113. Department expenditures and revenues -- Liquor Control Fund --
171 Exempt from Division of Finance -- Annual audits.
172 (1) (a) [All money] (i) Money received by the department in the administration of this
173 title, except as otherwise provided, together with all property acquired, administered,
174 possessed, or received by the department, is the property of the state.
175 (ii) Money received in the administration of this title shall be paid to the department
176 and transferred into the state treasury to the credit of the Liquor Control Fund.
177 (b) All expenses, debts, and liabilities incurred by the department or the Office of the
178 Attorney General in connection with the administration of this title shall be paid from the
179 Liquor Control Fund.
180 (c) The fiscal officers of the department shall transfer annually from the Liquor Control
181 Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor
182 since the preceding transfer of funds. The transfer shall be made within 90 days of the end of
183 the department's fiscal year on June 30.
184 (2) (a) Deposits made by the department shall be made to banks designated as state

185 depositories and reported to the state treasurer at the end of each day.
186 (b) Any member of the commission and any employee of the department is not
187 personally liable for any loss caused by the default or failure of depositories.
188 (c) All funds deposited in any bank or trust company are entitled to the same priority of
189 payment as other public funds of the state.
190 (3) All expenditures necessary for the administration of this title, including the
191 payment of all salaries, premiums, if any, on bonds of the commissioners, the director, and the
192 department staff in all cases where bonds are required, and all other expenditures incurred in
193 establishing, operating, and maintaining state stores and package agencies and in the
194 administration of this title, shall be paid by warrants drawn on the state treasurer paid out of the
195 Liquor Control Fund.
196 (4) If the cash balance of the Liquor Control Fund is not adequate to cover the warrants
197 drawn against it by the state treasurer, the cash resources of the General Fund may be [utilized]
198 used to the extent necessary. However, at no time may the fund equity of the Liquor Control
199 Fund fall below zero.
200 (5) (a) When [any] a check issued in payment of [any fees or costs] a fee or cost
201 authorized or required by this title is returned to the department as dishonored:
202 (i) the department may assess a service charge in an amount set by commission rule
203 against the person on whose behalf the check was tendered; and
204 (ii) if the check that is returned to the department is from a licensee, permittee, or
205 package agent, it is grounds for:
206 (A) the suspension or revocation of the license or permit; or
207 (B) the suspension or termination of the operation of the package agency.
208 (b) The revocation of a license or permit under this Subsection (5) is grounds for the
209 forfeiture of the bond of the:
210 (i) licensee; or
211 (ii) permittee.
212 (c) The termination of the operation of a package agency under this Subsection (5) is
213 grounds for the forfeiture of the bond of the package agency.
214 (6) The laws that govern the Division of Finance and prescribe the general powers and
215 duties of the Division of Finance are not applicable to the Department of Alcoholic Beverage

216 Control in the purchase and sale of alcoholic products.
217 (7) The accounts of the department shall be audited annually by the state auditor or by
218 any other person, firm, or corporation the state auditor appoints. The audit report shall be made
219 to the state auditor, and copies submitted to members of the Legislature not later than January 1
220 following the close of the fiscal year for which the report is made.
221 Section 3. Section 32A-1-119 is amended to read:
222 32A-1-119. Disciplinary proceedings -- Procedure.
223 (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
224 an adjudicative proceeding permitted under this title:
225 (i) against:
226 (A) a permittee;
227 (B) a licensee;
228 (C) a manufacturer;
229 (D) a supplier;
230 (E) an importer;
231 (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
232 or
233 (G) an officer, employee, or agent of:
234 (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
235 (II) a package agent; and
236 (ii) that is brought on the basis of a violation of this title.
237 (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
238 final unappealable judgment or order [has been] is issued.
239 (2) (a) The following may conduct an adjudicative [proceedings] proceeding to inquire
240 into [any] a matter necessary and proper for the administration of this title and rules adopted
241 under this title:
242 (i) the commission;
243 (ii) a hearing examiner appointed by the commission for the purposes provided in
244 Subsection 32A-1-107 (3); and
245 (iii) the director[; and], to the extent expressly provided for in another provision of this
246 title.

247 [(iv) the department.]
248 (b) Except as provided in this section or Section 32A-3-106 , the following shall
249 comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
250 Procedures Act, in an adjudicative [proceedings] proceeding:
251 (i) the commission;
252 (ii) a hearing examiner appointed by the commission; and
253 (iii) the director[; and].
254 [(iv) the department.]
255 (c) Except where otherwise provided by law, [all] an adjudicative [proceedings]
256 proceeding before the commission or [its appointed] a hearing examiner appointed by the
257 commission shall be:
258 (i) video or audio recorded; and
259 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
260 Open and Public Meetings Act.
261 (d) [All adjudicative proceedings] A person shall conduct an adjudicative proceeding
262 concerning departmental personnel [shall be conducted] in accordance with Title 67, Chapter
263 19, Utah State Personnel Management Act.
264 (e) [All hearings that are] A hearing that is informational, fact gathering, and
265 nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures
266 [promulgated] made by the commission, director, or department.
267 (3) (a) A disciplinary proceeding shall be conducted under the authority of the
268 commission, which is responsible for rendering a final decision and order on [any] a
269 disciplinary matter.
270 (b) (i) Nothing in this section precludes the commission from appointing a necessary
271 [officers] officer, including a hearing [examiners] examiner, from [within or] without the
272 department, to administer the disciplinary proceeding process.
273 (ii) A hearing examiner appointed by the commission:
274 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
275 (B) shall submit to the commission a report including:
276 (I) findings of fact determined on the basis of a preponderance of the evidence
277 presented at the hearing;

278 (II) conclusions of law; and
279 (III) recommendations.
280 (c) Nothing in this section precludes the commission, after the commission [has
281 rendered] renders its final decision and order, from having the director prepare, issue, and
282 cause to be served on the parties the final written order on behalf of the commission.
283 (4) (a) The [department] attorney general may initiate a disciplinary proceeding
284 described in Subsection (4)(b) [when] if the [department] attorney general receives:
285 (i) a report from [any] a government agency, peace officer, examiner, or investigator
286 alleging that [any] a person listed in Subsections (1)(a)(i)(A) through (G) has violated this title
287 or the rules of the commission;
288 (ii) a final adjudication of criminal liability against [any] a person listed in Subsections
289 (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
290 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
291 Liability, against [any] a person listed in Subsections (1)(a)(i)(A) through (G) based on an
292 alleged violation of this title.
293 (b) The [department] attorney general may initiate a disciplinary proceeding if the
294 [department] attorney general receives an item listed in Subsection (4)(a) to determine:
295 (i) whether [any] a person listed in Subsections (1)(a)(i)(A) through (G) violated this
296 title or rules of the commission; and
297 (ii) if a violation is found, the appropriate sanction to be imposed.
298 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
299 (i) if required by law;
300 (ii) before revoking or suspending [any] a permit, license, or certificate of approval
301 issued under this title; or
302 (iii) before imposing a fine against [any] a person listed in Subsections (1)(a)(i)(A)
303 through (G).
304 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
305 hearing after receiving proper notice is an admission of the charged violation.
306 (c) The validity of a disciplinary proceeding is not affected by the failure of [any] a
307 person to attend or remain in attendance.
308 (d) [All disciplinary proceeding hearings shall be presided over by the] The

309 commission or an appointed hearing examiner shall preside over a disciplinary proceeding
310 hearing.
311 (e) A disciplinary proceeding hearing may be closed only after the commission or
312 hearing examiner makes a written finding that the public interest in an open hearing is clearly
313 outweighed by factors enumerated in the closure order.
314 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
315 hearing may:
316 (A) administer oaths or affirmations;
317 (B) take evidence;
318 (C) take [depositions] a deposition within or without this state; and
319 (D) require by subpoena from [any] a place within this state:
320 (I) the testimony of [any] a person at a hearing; and
321 (II) the production of [any books, records, papers, contracts, agreements, documents] a
322 book, record, paper, contract, agreement, document, or other evidence considered relevant to
323 the inquiry.
324 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
325 produce [any books, papers, documents,] a book, paper, document, or tangible [things] thing as
326 required in the subpoena.
327 (iii) [Any] A witness subpoenaed or called to testify or produce evidence who claims a
328 privilege against self-incrimination may not be compelled to testify, but the commission or the
329 hearing examiner shall file a written report with the county attorney or district attorney in the
330 jurisdiction where the privilege [was] is claimed or where the witness resides setting forth the
331 circumstance of the claimed privilege.
332 (iv) (A) A person is not excused from obeying a subpoena without just cause.
333 (B) [Any] A district court within the judicial district in which a person alleged to be
334 guilty of willful contempt of court or refusal to obey a subpoena is found or resides, upon
335 application by the party issuing the subpoena, may issue an order requiring the person to:
336 (I) appear before the issuing party; and
337 (II) (Aa) produce documentary evidence if so ordered; or
338 (Bb) give evidence regarding the matter in question.
339 (C) Failure to obey an order of the court may be punished by the court as contempt.

340 (g) (i) In [all] a disciplinary proceeding [hearings] hearing heard by a hearing
341 examiner, the hearing examiner shall prepare a report required by Subsection (3)(b)(ii) to the
342 commission.
343 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
344 recommend a penalty more severe than that initially sought by the [department] attorney
345 general in the notice of agency action.
346 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
347 shall be served upon the respective parties.
348 (iv) The respondent and the [department] attorney general shall be given reasonable
349 opportunity to file [any] a written [objections] objection to the report required by Subsection
350 (3)(b)(ii) and this Subsection (5)(g) before final commission action.
351 (h) In [all cases] a case heard by the commission, it shall issue its final decision and
352 order in accordance with Subsection (3).
353 (6) (a) The commission shall:
354 (i) render a final decision and order on [any] a disciplinary action; and
355 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
356 (b) [Any] An order of the commission is considered final on the date the order
357 becomes effective.
358 (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
359 through (G) [has committed a violation of] violated this title or the commission's rules, in
360 accordance with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
361 (i) suspend or revoke the permit, license, or certificate of approval;
362 (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
363 (iii) assess the administrative costs of [any] a disciplinary proceeding to the permittee,
364 the licensee, or certificate holder; or
365 (iv) [any] take a combination of actions described in Subsections (6)(c)(i) through (iii).
366 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
367 32A-1-107 (1)(p) and (4).
368 (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
369 licensee shall prominently post a sign provided by the department [shall be prominently
370 posted]:

371 (A) during the suspension; and
372 [(B) by the permittee or licensee; and]
373 [(C)] (B) at the entrance of the premises of the permittee or licensee.
374 (ii) The sign required by this Subsection (6)(e) shall:
375 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
376 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
377 sold, served, furnished, or consumed on these premises during the period of suspension."; and
378 (B) include the dates of the suspension period.
379 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
380 to be posted under this Subsection (6)(e) during the suspension period.
381 (f) If a permit or license is revoked, the commission may order the revocation of [any]
382 a compliance bond posted by the permittee or licensee.
383 (g) [Any] A permittee or licensee whose permit or license is revoked may not reapply
384 for a permit or license under this title for three years from the date on which the permit or
385 license is revoked.
386 (h) [All costs assessed by the] The commission shall [be transferred] transfer all costs
387 assessed into the General Fund in accordance with Section 32A-1-113 .
388 (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder
389 under this section, the [department] attorney general may initiate disciplinary action against an
390 officer, employee, or agent of a permittee, licensee, or certificate holder.
391 (b) If [any] an officer, employee, or agent is found to have violated this title, the
392 commission may prohibit the officer, employee, or agent from serving, selling, distributing,
393 manufacturing, wholesaling, warehousing, or handling an alcoholic [beverages] beverage in the
394 course of [employment] acting as an officer, employee, or agent with [any] a permittee,
395 licensee, or certificate holder under this title for a period determined by the commission.
396 (8) (a) The [department] attorney general may initiate a disciplinary proceeding for an
397 alleged violation of this title or the rules of the commission against:
398 (i) a manufacturer, supplier, or importer of an alcoholic [beverages] beverage; or
399 (ii) an officer, employee, agent, or representative of a person listed in Subsection
400 (8)(a)(i).
401 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the

402 commission may, in addition to other penalties prescribed by this title, order:
403 (A) the removal of the manufacturer's, supplier's, or importer's one or more products
404 from the department's sales list; and
405 (B) a suspension of the department's purchase of the one or more products described in
406 Subsection (8)(b)(i)(A) for a period determined by the commission.
407 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
408 (A) [any] a manufacturer, supplier, or importer of liquor, wine, or heavy beer or its
409 officer, employee, agent, or representative violates [any provision of] this title; and
410 (B) the manufacturer, supplier, or importer:
411 (I) directly [committed] commits the violation; or
412 (II) [solicited, requested, commanded, encouraged, or intentionally aided] solicits,
413 requests, commands, encourages, or intentionally aids another to engage in the violation.
414 (9) (a) The [department] attorney general may initiate a disciplinary proceeding against
415 a brewer holding a certificate of approval under Section 32A-8-101 for an alleged violation of
416 this title or the rules of the commission.
417 (b) If the commission makes a finding that the brewer holding a certificate of approval
418 violates this title or rules of the commission, the commission may take [any] an action against
419 the brewer holding a certificate of approval that the commission could take against a licensee
420 including:
421 (i) suspension or revocation of the certificate of approval; and
422 (ii) imposition of a fine.
423 (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
424 the commission or a hearing examiner appointed by the commission shall proceed formally in
425 accordance with Sections 63-46b-6 through 63-46b-11 in [any] a case where:
426 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
427 and welfare;
428 (ii) the alleged violation involves:
429 (A) selling, serving, or otherwise furnishing an alcoholic [products] product to a minor;
430 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
431 Entertainment Act;
432 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf

433 of the respondent;
434 (D) interfering or refusing to cooperate with:
435 (I) an authorized official of the department or the state in the discharge of the official's
436 duties in relation to the enforcement of this title; or
437 (II) a peace officer in the discharge of the peace officer's duties in relation to the
438 enforcement of this title;
439 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
440 (F) unlawful importation of an alcoholic [products] product; or
441 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
442 32A-12-601 (2), to [any] a person other than the department or a military installation, except to
443 the extent permitted by this title; or
444 (iii) the [department] attorney general determines to seek in a disciplinary proceeding
445 hearing:
446 (A) an administrative fine exceeding $3,000;
447 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
448 or
449 (C) a revocation of a license, permit, or certificate of approval.
450 (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
451 Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
452 Section 4. Section 32A-4-106 is amended to read:
453 32A-4-106. Operational restrictions.
454 [Each] A person granted a restaurant liquor license and [the employees and] an
455 employee or an individual who is a part of management personnel of the restaurant shall
456 comply with the following conditions and requirements. Failure to comply may result in a
457 suspension or revocation of the restaurant liquor license or other disciplinary action taken
458 against an individual [employees or] employee or individual who is a part of management
459 personnel.
460 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
461 [stores] store or package [agencies] agency.
462 (b) Liquor purchased from a state store or package agency may be transported by the
463 restaurant liquor licensee from the place of purchase to the licensed premises.

464 (c) Payment for liquor shall be made in accordance with rules established by the
465 commission.
466 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
467 a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
468 dispensing system approved by the department in accordance with commission rules adopted
469 under this title, except that:
470 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
471 system if used as a secondary flavoring ingredient in a beverage subject to the following
472 restrictions:
473 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
474 a primary spirituous liquor;
475 (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
476 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
477 on the floor plan provided to the department; and
478 (iv) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
479 "flavorings";
480 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
481 system if used:
482 (i) as a flavoring on [desserts] a dessert; and
483 (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
484 dessert;
485 (c) [each] a restaurant patron may have no more than 2.75 ounces of spirituous liquor
486 at a time; and
487 (d) [each] a restaurant patron may have no more than one spirituous liquor drink at a
488 time before the patron.
489 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
490 exceed five ounces per glass or individual portion.
491 (ii) An individual portion of wine may be served to a patron in more than one glass as
492 long as the total amount of wine does not exceed five ounces.
493 (iii) An individual portion of wine is considered to be one alcoholic beverage under
494 Subsection (7)(e).

495 (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
496 at [prices] a price fixed by the commission to [tables] a table of four or more persons.
497 (ii) Wine may be sold and served in [containers] a container not exceeding 750
498 milliliters at [prices] a price fixed by the commission to [tables] a table of less than four
499 persons.
500 (c) A wine service may be performed and a service charge assessed by [the] a
501 restaurant liquor licensee as authorized by commission rule for wine purchased at the
502 restaurant.
503 (4) (a) Heavy beer may be served in original containers not exceeding one liter at
504 prices fixed by the commission.
505 (b) A service charge may be assessed by [the] a restaurant liquor licensee as authorized
506 by commission rule for heavy beer purchased at the restaurant.
507 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant [licensed to sell] liquor licensee
508 may sell beer for on-premise consumption:
509 (A) in an open container; and
510 (B) on draft.
511 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
512 not exceed two liters, except that beer may not be sold to an individual patron in a size of
513 container that exceeds one liter.
514 (b) A restaurant [licensed under this chapter] liquor licensee that sells beer pursuant to
515 Subsection (5)(a):
516 (i) may do so without obtaining a separate on-premise beer retailer license from the
517 commission; and
518 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
519 Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
520 restrictions are inconsistent with or less restrictive than the operational restrictions under this
521 part.
522 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
523 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
524 restaurant's:
525 (i) state liquor license; and

526 (ii) alcoholic beverage license issued by the local authority.
527 (6) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
528 [any] a place other than as designated in the restaurant liquor licensee's application, unless the
529 restaurant liquor licensee first applies for and receives approval from the department for a
530 change of location within the restaurant.
531 (7) (a) (i) A patron may only make an alcoholic beverage [purchases] purchase in the
532 restaurant from and be served by a person employed, designated, and trained by the restaurant
533 liquor licensee to sell and serve an alcoholic [beverages] beverage.
534 (ii) Notwithstanding Subsection (7)(a)(i), a patron who [has purchased] purchases
535 bottled wine from an employee of the restaurant or [has carried] carries bottled wine onto the
536 premises of the restaurant pursuant to Subsection (14) may thereafter serve wine from the
537 bottle to the patron or others at the patron's table.
538 (b) [Alcoholic beverages] An alcoholic beverage shall be delivered by a server to the
539 patron.
540 (c) [Any] An alcoholic beverage may only be consumed at the patron's table or counter.
541 (d) [Alcoholic beverages] An alcoholic beverage may not be served to or consumed by
542 a patron at a bar.
543 (e) [Each] A restaurant patron may have no more than two alcoholic beverages of any
544 kind at a time before the patron, subject to the limitation in Subsection (2)(d).
545 (8) The liquor storage area shall remain locked at all times other than those hours and
546 days when liquor sales are authorized by law.
547 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
548 restaurant of a restaurant liquor licensee during the following days or hours:
549 (i) until after the polls are closed on the day of [any] a:
550 (A) regular general election;
551 (B) regular primary election; or
552 (C) statewide special election;
553 (ii) until after the polls are closed on the day of [any] a municipal, local district, special
554 service district, or school election, but only:
555 (A) within the boundaries of the municipality, local district, special service district, or
556 school district; and

557 (B) if required by local ordinance; and
558 (iii) on [any other] another day after 12 midnight and before 12 noon.
559 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
560 Licenses, for on-premise beer licensees.
561 (10) [Alcoholic beverages] An alcoholic beverage may not be sold except in
562 connection with an order for food prepared, sold, and served at the restaurant.
563 (11) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or
564 otherwise furnished to [any] a:
565 (a) minor;
566 (b) person actually, apparently, or obviously intoxicated;
567 (c) known habitual drunkard; or
568 (d) known interdicted person.
569 (12) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
570 (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
571 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
572 beverage to the restaurant liquor licensee.
573 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
574 over consumption or intoxication.
575 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
576 hours of [the restaurant's] a restaurant liquor licensee's business day such as a "happy hour."
577 (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
578 served for the price of a single alcoholic beverage [is prohibited].
579 (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
580 during [any] a set period may not be sold or served for a fixed price [is prohibited].
581 (g) A restaurant liquor licensee may not engage in a public promotion involving or
582 offering free an alcoholic [beverages] beverage to the general public.
583 (13) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
584 a restaurant by:
585 (a) the restaurant liquor licensee; or
586 (b) [any] an employee or agent of the restaurant liquor licensee.
587 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee [any]

588 an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
589 discretion of the restaurant liquor licensee, bottled wine onto the premises of [any] a restaurant
590 liquor licensee for on-premise consumption.
591 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or [its
592 officers, managers, employees, or agents] an officer, manager, employee, or agent of the
593 restaurant liquor licensee may not allow:
594 (i) a person to bring onto the restaurant premises [any] an alcoholic beverage for
595 on-premise consumption; or
596 (ii) consumption of [any such] an alcoholic beverage [on its] described in this
597 Subsection (14) on the restaurant liquor licensee's premises.
598 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
599 or other representative of the restaurant liquor licensee upon entering the restaurant.
600 (d) A wine service may be performed and a service charge assessed by [the] a
601 restaurant liquor licensee as authorized by commission rule for wine carried in by a patron.
602 (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee [and its
603 employees] or an employee of the restaurant liquor licensee may not permit a restaurant patron
604 to carry from the restaurant premises an open container that:
605 (i) is used primarily for drinking purposes; and
606 (ii) contains [any] an alcoholic beverage.
607 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
608 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
609 onto the premises of the restaurant in accordance with Subsection (14), [provided] only if the
610 bottle [has been] is recorked or recapped before removal.
611 (16) (a) A restaurant liquor licensee may not employ a minor [may not be employed by
612 a restaurant licensee] to sell or dispense an alcoholic [beverages] beverage.
613 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
614 employed to enter the sale at a cash register or other sales recording device.
615 (17) An employee of a restaurant liquor licensee, while on duty, may not:
616 (a) consume an alcoholic beverage; or
617 (b) be intoxicated.
618 (18) [Any] A charge or fee made in connection with the sale, service, or consumption

619 of liquor may be stated in food or alcoholic beverage menus including:
620 (a) a set-up charge;
621 (b) a service charge; or
622 (c) a chilling fee.
623 (19) [Each] A restaurant liquor licensee shall display in a prominent place in the
624 restaurant:
625 (a) the liquor license that is issued by the department;
626 (b) a list of the types and brand names of liquor being served through its calibrated
627 metered dispensing system; and
628 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
629 drugs is a serious crime that is prosecuted aggressively in Utah."
630 (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
631 licensee:
632 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
633 Chapter 10, Part 11, Gambling;
634 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
635 Part 11, Gambling; or
636 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
637 the risking of something of value for a return or for an outcome when the return or outcome is
638 based upon an element of chance, excluding the playing of an amusement device that confers
639 only an immediate and unrecorded right of replay not exchangeable for value.
640 (21) (a) [Each] A restaurant liquor licensee shall maintain an expense ledger or record
641 showing in detail:
642 (i) quarterly expenditures made separately for:
643 (A) malt or brewed beverages;
644 (B) set-ups;
645 (C) liquor;
646 (D) food; and
647 (E) all other items required by the department; and
648 (ii) sales made separately for:
649 (A) malt or brewed beverages;

650 (B) set-ups;
651 (C) food; and
652 (D) all other items required by the department.
653 (b) [The] A restaurant liquor licensee shall keep a record required by Subsection
654 (21)(a) [shall be kept]:
655 (i) in a form approved by the department; and
656 (ii) current for each three-month period.
657 (c) [Each] An expenditure shall be supported by:
658 (i) a delivery [tickets] ticket;
659 (ii) [invoices] an invoice;
660 (iii) a receipted [bills] bill;
661 (iv) a canceled [checks] check;
662 (v) a petty cash [vouchers] voucher; or
663 (vi) other sustaining [data or memoranda] datum or memorandum.
664 (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
665 liquor licensee shall maintain accounting and other records and documents as the department
666 may require.
667 (e) [Any] A restaurant liquor licensee or person acting for the restaurant, who
668 knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of
669 the books] an entry in a book of account or other [documents] document of the restaurant that
670 is required to be made, maintained, or preserved by this title or the rules of the commission for
671 the purpose of deceiving the commission [or], the department, [or any of their officials or
672 employees] the attorney general, or an official or employee of the commission, department, or
673 attorney general, is subject to:
674 (i) the suspension or revocation of the restaurant's liquor license; and
675 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
676 (22) (a) A restaurant liquor licensee may not close or cease operation for a period
677 longer than 240 hours, unless:
678 (i) the restaurant liquor licensee notifies the department in writing at least seven days
679 before the [closing] day on which the restaurant liquor licensee closes or ceases operation; and
680 (ii) the closure or cessation of operation is first approved by the department.

681 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, [immediate
682 notice of closure shall be made to] the restaurant liquor licensee shall immediately notify the
683 department by telephone.
684 (c) (i) The department may authorize a closure or cessation of operation for a period
685 not to exceed 60 days.
686 (ii) The department may extend the initial period an additional 30 days upon:
687 (A) written request of the restaurant liquor licensee; and [upon]
688 (B) a showing of good cause.
689 (iii) A closure or cessation of operation may not exceed a total of 90 days without
690 commission approval.
691 (d) [Any] A notice shall include:
692 (i) the dates of closure or cessation of operation;
693 (ii) the reason for the closure or cessation of operation; and
694 (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
695 (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
696 authorization [prior to] before closure or cessation of operation [shall result] results in an
697 automatic forfeiture of:
698 (i) the license; and
699 (ii) the unused portion of the license fee for the remainder of the license year effective
700 immediately.
701 (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
702 approved date [shall result] results in an automatic forfeiture of:
703 (i) the license; and
704 (ii) the unused portion of the license fee for the remainder of the license year.
705 (23) [Each] A restaurant liquor licensee shall maintain at least 70% of its total
706 restaurant business from the sale of food, which does not include mix for an alcoholic
707 [beverages] beverage or service charges.
708 (24) A restaurant liquor license may not be transferred from one location to another,
709 without prior written approval of the commission.
710 (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
711 assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license

712 to [any other] another person whether for monetary gain or not.
713 (b) A restaurant liquor license has no monetary value for the purpose of any type of
714 disposition.
715 (26) [Each] A server of an alcoholic [beverages] beverage in a restaurant liquor
716 licensee's establishment shall keep a written beverage tab for each table or group that orders or
717 consumes an alcoholic [beverages] beverage on the premises. The beverage tab shall list the
718 type and amount of an alcoholic [beverages] beverage ordered or consumed.
719 (27) A person's willingness to serve an alcoholic [beverages] beverage may not be
720 made a condition of employment as a server with a restaurant that has a restaurant liquor
721 license.
722 Section 5. Section 32A-4-206 is amended to read:
723 32A-4-206. Operational restrictions.
724 [Each] A person granted an airport lounge liquor license and [the employees and] an
725 employee or an individual who is a part of management personnel of the airport lounge shall
726 comply with the following conditions and requirements. Failure to comply may result in a
727 suspension or revocation of the airport lounge liquor license or other disciplinary action taken
728 against an individual [employees or] employee or individual who is a part of management
729 personnel.
730 (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from a
731 state [stores] store or package [agencies] agency.
732 (b) Liquor purchased from a state store or package agency may be transported by the
733 airport lounge liquor licensee from the place of purchase to the licensed premises.
734 (c) Payment for liquor shall be made in accordance with the rules established by the
735 commission.
736 (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
737 only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
738 dispensing system approved by the department in accordance with commission rules adopted
739 under this title, except that:
740 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
741 system if used as a secondary flavoring ingredient in a beverage subject to the following
742 restrictions:

743 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
744 a spirituous primary liquor;
745 (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
746 (iii) the airport lounge liquor licensee shall designate a location where flavorings are
747 stored on the floor plan provided to the department; and
748 (iv) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
749 "flavorings";
750 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
751 system if used:
752 (i) as a flavoring on [desserts] a dessert; and
753 (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
754 dessert; and
755 (c) [each] an airport lounge patron may have no more than 2.75 ounces of spirituous
756 liquor at a time before the patron.
757 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
758 exceed five ounces per glass or individual portion.
759 (ii) An individual portion may be served to a patron in more than one glass as long as
760 the total amount of wine does not exceed five ounces.
761 (iii) An individual portion of wine is considered to be one alcoholic beverage under
762 Subsection (7)(c).
763 (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
764 at [prices] a price fixed by the commission to [tables] a table of four or more persons.
765 (ii) Wine may be sold and served in [containers] a container not exceeding 750
766 milliliters at [prices] a price fixed by the commission to [tables] a table of less than four
767 persons.
768 (c) A wine service may be performed and a service charge assessed by the airport
769 lounge liquor licensee as authorized by commission rule for wine purchased at the airport
770 lounge.
771 (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
772 fixed by the commission.
773 (b) A service charge may be assessed by the airport lounge liquor licensee as

774 authorized by commission rule for heavy beer purchased at the airport lounge.
775 (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge [licensed to sell] liquor
776 licensee may sell beer for on-premise consumption:
777 (A) in an open container; and
778 (B) on draft.
779 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
780 not exceed two liters, except that beer may not be sold to an individual patron in a size of
781 container that exceeds one liter.
782 (b) An airport lounge liquor licensee that sells beer pursuant to Subsection (5)(a):
783 (i) may do so without obtaining a separate on-premise beer retailer license from the
784 commission; and
785 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
786 Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
787 restrictions are inconsistent with or less restrictive than the operational restrictions under this
788 part.
789 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
790 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
791 lounge's:
792 (i) state liquor license; and
793 (ii) alcoholic beverage license issued by the local authority.
794 (6) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
795 [any] a place other than as designated in the airport lounge liquor licensee's application, unless
796 the airport lounge liquor licensee first applies for and receives approval from the department
797 for a change of location within the airport lounge.
798 (7) (a) A patron may only make [purchases] a purchase in the airport lounge from and
799 be served by a person employed, designated, and trained by the airport lounge liquor licensee to
800 sell, dispense, and serve an alcoholic [beverages] beverage.
801 (b) Notwithstanding Subsection (7)(a), a patron who [has purchased] purchases bottled
802 wine from an employee of the airport lounge may serve wine from the bottle to the patron or
803 others at the patron's table.
804 (c) [Each] An airport lounge patron may have no more than two alcoholic beverages of

805 any kind at a time before the patron.
806 (8) The liquor storage area shall remain locked at all times other than those hours and
807 days when liquor sales and service are authorized by law.
808 (9) [Alcoholic beverages] An alcoholic beverage may not be sold, offered for sale,
809 served, or otherwise furnished at an airport lounge on any day after 12 midnight and before 8
810 a.m.
811 (10) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or
812 otherwise furnished to [any] a:
813 (a) minor;
814 (b) person actually, apparently, or obviously intoxicated;
815 (c) known habitual drunkard; or
816 (d) known interdicted person.
817 (11) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
818 (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
819 (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost
820 of the alcoholic beverage to the airport lounge liquor licensee.
821 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
822 over consumption or intoxication.
823 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
824 hours of the airport [lounge's] lounge liquor licensee's business day such as a "happy hour."
825 (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
826 served for the price of a single alcoholic beverage [is prohibited].
827 (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
828 during [any] a set period may not be sold or served for a fixed price [is prohibited].
829 (g) An airport lounge liquor licensee may not engage in a public promotion involving
830 or offering free an alcoholic [beverages] beverage to the general public.
831 (12) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
832 an airport lounge by:
833 (a) the airport lounge liquor licensee; or
834 (b) [any] an employee or agent of the airport lounge liquor licensee.
835 (13) (a) A person may not bring onto the premises of an airport lounge liquor licensee

836 [any] an alcoholic beverage for on-premise consumption.
837 (b) An airport lounge [or its officers, managers, employees, or agents] liquor licensee
838 or an officer, manager, employee, or agent of the airport lounge liquor licensee may not allow a
839 person to bring onto the airport lounge premises [any] an alcoholic beverage for on-premise
840 consumption or allow consumption of [any such] the alcoholic beverage on [its] the airport
841 lounge liquor licensee's premises.
842 (14) An airport lounge liquor licensee and [its employees] an employee of the airport
843 lounge liquor licensee may not permit a patron to remove [any] an alcoholic [beverages]
844 beverage from the airport lounge premises.
845 (15) (a) [A minor may not be employed by an] An airport lounge liquor licensee may
846 not employ a minor to sell or dispense an alcoholic [beverages] beverage.
847 (b) Notwithstanding Subsection (15)(a), a minor who is at least 16 years of age may be
848 employed to enter the sale at a cash register or other sales recording device.
849 (16) An employee of an airport lounge liquor licensee, while on duty, may not:
850 (a) consume an alcoholic beverage; or
851 (b) be intoxicated.
852 (17) [Any] A charge or fee made in connection with the sale, service, or consumption
853 of liquor may be stated in a food or alcoholic beverage menu including:
854 (a) a set-up charge;
855 (b) a service charge; or
856 (c) a chilling fee.
857 (18) [Each] An airport lounge liquor licensee shall display in a prominent place in the
858 airport lounge:
859 (a) the liquor license that is issued by the department;
860 (b) a list of the types and brand names of liquor being served through its calibrated
861 metered dispensing system; and
862 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
863 drugs is a serious crime that is prosecuted aggressively in Utah."
864 (19) (a) [Each] An airport lounge liquor licensee shall maintain an expense ledger or
865 record showing in detail:
866 (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all

867 other items required by the department; and
868 (ii) sales made separately for malt or brewed beverages, food, and all other items
869 required by the department.
870 [(b) This record shall be kept:]
871 (b) An airport lounge liquor licensee shall keep a record required by Subsection
872 (19)(a):
873 (i) in a form approved by the department; and
874 (ii) current for each three-month period.
875 (c) [Each] An expenditure shall be supported by:
876 (i) a delivery [tickets] ticket;
877 (ii) [invoices] an invoice;
878 (iii) a receipted [bills] bill;
879 (iv) a canceled [checks] check;
880 (v) a petty cash [vouchers] voucher; or
881 (vi) other sustaining [data or memoranda] datum or memorandum.
882 (d) In addition to a ledger or record required by Subsection (19)(a), [each] an airport
883 lounge liquor licensee shall maintain accounting and other records and documents as the
884 department may require.
885 (e) [Any] An airport lounge liquor licensee or person acting for the airport lounge, who
886 knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of
887 the books] an entry in a book of account or other [documents] document of the airport lounge
888 required to be made, maintained, or preserved by this title or the rules of the commission for
889 the purpose of deceiving the commission [or], the department, [or any of their officials or
890 employees] the attorney general, or an official or employee of the commission, department, or
891 attorney general, is subject to:
892 (i) the immediate suspension or revocation of the airport lounge's liquor license; and
893 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
894 (20) An airport lounge liquor license may not be transferred from one location to
895 another, without prior written approval of the commission.
896 (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
897 barter, give, or attempt in any way to dispose of the airport lounge liquor license to [any other]

898 another person, whether for monetary gain or not.
899 (b) An airport lounge liquor license has no monetary value for the purpose of any type
900 of disposition.
901 (22) [Each] A server of an alcoholic [beverages] beverage in [a] an airport lounge
902 liquor licensee's establishment shall keep a written beverage tab for each table or group that
903 orders or consumes an alcoholic [beverages] beverage on the premises. The beverage tab shall
904 list the type and amount of an alcoholic [beverages] beverage ordered or consumed.
905 (23) An airport lounge liquor licensee's premises may not be leased for a private
906 [functions] function.
907 (24) An airport lounge liquor licensee may not on the premises of the airport lounge
908 liquor licensee:
909 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
910 Chapter 10, Part 11, Gambling;
911 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
912 Part 11, Gambling; or
913 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
914 the risking of something of value for a return or for an outcome when the return or outcome is
915 based upon an element of chance, excluding the playing of an amusement device that confers
916 only an immediate and unrecorded right of replay not exchangeable for value.
917 Section 6. Section 32A-4-307 is amended to read:
918 32A-4-307. Operational restrictions.
919 [Each] A person granted a limited restaurant license and [the employees and] an
920 employee or individual who is a part of management personnel of the limited restaurant shall
921 comply with the following conditions and requirements. Failure to comply may result in a
922 suspension or revocation of the license or other disciplinary action taken against an individual
923 [employees or] employee or individual who is a part of management personnel.
924 (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
925 except from a state [stores] store or package [agencies] agency.
926 (b) Wine and heavy beer purchased [in accordance with Subsection (1)(a)] from a state
927 store or package agency may be transported by the limited restaurant licensee from the place of
928 purchase to the licensed premises.

929 (c) Payment for wine and heavy beer shall be made in accordance with rules
930 established by the commission.
931 (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
932 spirituous liquor on the premises of the limited restaurant.
933 (b) Spirituous liquor may not be on the premises of the limited restaurant except for
934 use:
935 (i) as a flavoring on [desserts] a dessert; and
936 (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
937 dessert.
938 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
939 exceed five ounces per glass or individual portion.
940 (ii) An individual portion may be served to a patron in more than one glass as long as
941 the total amount of wine does not exceed five ounces.
942 (iii) An individual portion of wine is considered to be one alcoholic beverage under
943 Subsection (7)(e).
944 (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
945 at [prices] a price fixed by the commission to [tables] a table of four or more persons.
946 (ii) Wine may be sold and served in [containers] a container not exceeding 750
947 milliliters at [prices] a price fixed by the commission to [tables] a table of less than four
948 persons.
949 (c) A wine service may be performed and a service charge assessed by the limited
950 restaurant licensee as authorized by commission rule for wine purchased at the limited
951 restaurant.
952 (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
953 fixed by the commission.
954 (b) A service charge may be assessed by the limited restaurant licensee as authorized
955 by commission rule for heavy beer purchased at the limited restaurant.
956 (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
957 on-premise consumption:
958 (A) in an open container; and
959 (B) on draft.

960 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
961 not exceed two liters, except that beer may not be sold to an individual patron in a size of
962 container that exceeds one liter.
963 (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
964 (i) may do so without obtaining a separate on-premise beer retailer license from the
965 commission; and
966 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
967 Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
968 restrictions are inconsistent with or less restrictive than the operational restrictions under this
969 part.
970 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
971 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
972 restaurant's:
973 (i) limited restaurant license; and
974 (ii) alcoholic beverage license issued by the local authority.
975 (6) Wine, heavy beer, and beer may not be stored, served, or sold in [any] a place other
976 than as designated in the limited restaurant licensee's application, unless the limited restaurant
977 licensee first applies for and receives approval from the department for a change of location
978 within the limited restaurant.
979 (7) (a) (i) A patron may only make an alcoholic beverage [purchases] purchase in [the]
980 a limited restaurant from and be served by a person employed, designated, and trained by the
981 limited restaurant licensee to sell and serve an alcoholic [beverages] beverage.
982 (ii) Notwithstanding Subsection (7)(a)(i), a patron who [has purchased] purchases
983 bottled wine from an employee of the limited restaurant [or has carried] licensee or carries
984 bottled wine onto the premises of the limited restaurant pursuant to Subsection (14) may
985 thereafter serve wine from the bottle to the patron or others at the patron's table.
986 (b) [Alcoholic beverages] An alcoholic beverage shall be delivered by a server to the
987 patron.
988 (c) [Any] An alcoholic beverage may only be consumed at the patron's table or counter.
989 (d) [Alcoholic beverages] An alcoholic beverage may not be served to or consumed by
990 a patron at a bar.

991 (e) [Each] A limited restaurant patron may have no more than two alcoholic beverages
992 of any kind at a time before the patron.
993 (8) The alcoholic beverage storage area shall remain locked at all times other than
994 those hours and days when alcoholic beverage sales are authorized by law.
995 (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
996 furnished at a limited restaurant during the following days or hours:
997 (i) until after the polls are closed on the day of [any] a:
998 (A) regular general election;
999 (B) regular primary election; or
1000 (C) statewide special election;
1001 (ii) until after the polls are closed on the day of [any] a municipal, local district, special
1002 service district, or school election, but only:
1003 (A) within the boundaries of the municipality, local district, special service district, or
1004 school district; and
1005 (B) if required by local ordinance; and
1006 (iii) on [any other] another day after 12 midnight and before 12 noon.
1007 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1008 Licenses, for on-premise beer licensees.
1009 (10) [Alcoholic beverages] An alcoholic beverage may not be sold except in
1010 connection with an order of food prepared, sold, and served at the limited restaurant.
1011 (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to
1012 [any] a:
1013 (a) minor;
1014 (b) person actually, apparently, or obviously intoxicated;
1015 (c) known habitual drunkard; or
1016 (d) known interdicted person.
1017 (12) (a) (i) Wine and heavy beer may be sold only at [prices] a price fixed by the
1018 commission.
1019 (ii) Wine and heavy beer may not be sold at a discount [prices] price on any date or at
1020 any time.
1021 (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost

1022 of the alcoholic [beverages] beverage to the limited restaurant licensee.
1023 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1024 over consumption or intoxication.
1025 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1026 hours of the limited [restaurant's] restaurant licensee's business day such as a "happy hour."
1027 (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
1028 served for the price of a single alcoholic beverage [is prohibited].
1029 (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
1030 during [any] a set period may not be sold or service for a fixed price [is prohibited].
1031 (g) A limited restaurant licensee may not engage in a public promotion involving or
1032 offering free alcoholic beverages to the general public.
1033 (13) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
1034 the limited restaurant by:
1035 (a) the limited restaurant licensee; or
1036 (b) [any] an employee or agent of the limited restaurant licensee.
1037 (14) (a) A person may not bring onto the premises of a limited restaurant licensee [any]
1038 an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1039 discretion of the limited restaurant licensee, bottled wine onto the premises of [any] a limited
1040 restaurant licensee for on-premise consumption.
1041 (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee [or its
1042 officers, managers, employees, or agents] or an officer, manager, employee, or agent of a
1043 limited restaurant licensee may not allow:
1044 (i) a person to bring onto the limited restaurant premises [any] an alcoholic beverage
1045 for on-premise consumption; or
1046 (ii) consumption of [any] an alcoholic beverage described in Subsection (14)(b)(i) on
1047 [its] the limited restaurant licensee's premises.
1048 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1049 or other representative of the limited restaurant licensee upon entering the limited restaurant.
1050 (d) A wine service may be performed and a service charge assessed by the limited
1051 restaurant licensee as authorized by commission rule for wine carried in by a patron.
1052 (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee [and its

1053 employees] and an employee of the limited restaurant licensee may not permit a restaurant
1054 patron to carry from the limited restaurant premises an open container that:
1055 (i) is used primarily for drinking purposes; and
1056 (ii) contains [any] an alcoholic beverage.
1057 (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
1058 contents of a bottle of wine if before removal the bottle [has been] is recorked or recapped.
1059 (16) (a) A [minor may not be employed by a] limited restaurant licensee may not
1060 employ a minor to sell or dispense an alcoholic [beverages] beverage.
1061 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1062 employed to enter the sale at a cash register or other sales recording device.
1063 (17) An employee of a limited restaurant licensee, while on duty, may not:
1064 (a) consume an alcoholic beverage; or
1065 (b) be intoxicated.
1066 (18) A charge or fee made in connection with the sale, service, or consumption of wine
1067 or heavy beer may be stated in food or alcoholic beverage menus including:
1068 (a) a service charge; or
1069 (b) a chilling fee.
1070 (19) [Each] A limited restaurant licensee shall display in a prominent place in the
1071 restaurant:
1072 (a) the limited restaurant license that is issued by the department; and
1073 (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1074 drugs is a serious crime that is prosecuted aggressively in Utah."
1075 (20) A limited restaurant licensee may not on the premises of the restaurant:
1076 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1077 Chapter 10, Part 11, Gambling;
1078 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1079 Part 11, Gambling; or
1080 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1081 the risking of something of value for a return or for an outcome when the return or outcome is
1082 based upon an element of chance, excluding the playing of an amusement device that confers
1083 only an immediate and unrecorded right of replay not exchangeable for value.

1084 (21) (a) [Each] A limited restaurant licensee shall maintain an expense ledger or record
1085 showing in detail:
1086 (i) quarterly expenditures made separately for:
1087 (A) wine;
1088 (B) heavy beer;
1089 (C) beer;
1090 (D) food; and
1091 (E) all other items required by the department; and
1092 (ii) sales made separately for:
1093 (A) wine;
1094 (B) heavy beer;
1095 (C) beer;
1096 (D) food; and
1097 (E) all other items required by the department.
1098 (b) [The] A limited restaurant licensee shall keep a record required by Subsection
1099 (21)(a) [shall be kept]:
1100 (i) in a form approved by the department; and
1101 (ii) current for each three-month period.
1102 (c) [Each] An expenditure shall be supported by:
1103 (i) a delivery [tickets] ticket;
1104 (ii) [invoices] an invoice;
1105 (iii) a receipted [bills] bill;
1106 (iv) a canceled [checks] check;
1107 (v) a petty cash [vouchers] voucher; or
1108 (vi) other sustaining [data or memoranda] datum or memorandum.
1109 (d) In addition to the ledger or record maintained under Subsections (21)(a) through
1110 (c), a limited restaurant licensee shall maintain accounting and other records and documents as
1111 the department may require.
1112 (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
1113 forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of the books]
1114 an entry in a book of account or other [documents] document of the limited restaurant that is

1115 required to be made, maintained, or preserved by this title or the rules of the commission for
1116 the purpose of deceiving the commission [or], the department, [or any of their officials or
1117 employees] the attorney general, or an official or employee of the commission, department, or
1118 attorney general, is subject to:
1119 (i) the suspension or revocation of the limited restaurant's license; and
1120 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1121 (22) (a) A limited restaurant licensee may not close or cease operation for a period
1122 longer than 240 hours, unless:
1123 (i) the limited restaurant licensee notifies the department in writing at least seven days
1124 before the [closing] day on which the limited restaurant licensee closes or ceases operation; and
1125 (ii) the closure or cessation of operation is first approved by the department.
1126 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, [immediate
1127 notice of closure shall be made to] the limited restaurant licensee shall immediately notify the
1128 department by telephone.
1129 (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
1130 cessation of operation for a period not to exceed 60 days.
1131 (ii) The department may extend the initial period an additional 30 days upon:
1132 (A) written request of the limited restaurant licensee; and
1133 (B) a showing of good cause.
1134 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1135 commission approval.
1136 (d) [Any] A notice required by Subsection (22)(a) shall include:
1137 (i) the dates of closure or cessation of operation;
1138 (ii) the reason for the closure or cessation of operation; and
1139 (iii) the date on which the limited restaurant licensee will reopen or resume operation.
1140 (e) Failure of the limited restaurant licensee to provide notice and to obtain department
1141 authorization before closure or cessation of operation [shall result] results in an automatic
1142 forfeiture of:
1143 (i) the limited restaurant license; and
1144 (ii) the unused portion of the license fee for the remainder of the license year effective
1145 immediately.

1146 (f) Failure of the limited restaurant licensee to reopen or resume operation by the
1147 approved date [shall result] results in an automatic forfeiture of:
1148 (i) the limited restaurant license; and
1149 (ii) the unused portion of the license fee for the remainder of the license year.
1150 (23) [Each] A limited restaurant licensee shall maintain at least 70% of its total
1151 restaurant business from the sale of food, which does not include service charges.
1152 (24) A limited restaurant license may not be transferred from one location to another,
1153 without prior written approval of the commission.
1154 (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
1155 give, or attempt in any way to dispose of the limited restaurant license to [any other] another
1156 person whether for monetary gain or not.
1157 (b) A limited restaurant license has no monetary value for the purpose of any type of
1158 disposition.
1159 (26) (a) [Each] A server of wine, heavy beer, and beer in a limited restaurant licensee's
1160 establishment shall keep a written beverage tab for each table or group that orders or consumes
1161 an alcoholic [beverages] beverage on the premises.
1162 (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
1163 alcoholic [beverages] beverage ordered or consumed.
1164 (27) A limited restaurant licensee may not make a person's willingness to serve an
1165 alcoholic [beverages] beverage a condition of employment as a server with the limited
1166 restaurant.
1167 Section 7. Section 32A-4-406 is amended to read:
1168 32A-4-406. Operational restrictions.
1169 [Each] A person granted an on-premise banquet license and [the employees and] an
1170 employee or individual who is a part of management personnel of the on-premise banquet
1171 licensee shall comply with this title, the rules of the commission, and the following conditions
1172 and requirements. Failure to comply may result in a suspension or revocation of the
1173 on-premise banquet license or other disciplinary action taken against an individual [employees
1174 or] employee or individual who is a part of management personnel.
1175 (1) A person involved in the sale or service of an alcoholic [beverages] beverage under
1176 the on-premise banquet license shall:

1177 (a) be under the supervision and direction of the on-premise banquet licensee; and
1178 (b) complete the seminar provided for in Section 62A-15-401 .
1179 (2) (a) Liquor may not be purchased by [the] an on-premise banquet licensee except
1180 from a state [stores] store or package [agencies] agency.
1181 (b) Liquor purchased [in accordance with Subsection (2)(a)] from a state store or
1182 package agency may be transported by the on-premise banquet licensee from the place of
1183 purchase to the licensed premises.
1184 (c) Payment for liquor shall be made in accordance with rules established by the
1185 commission.
1186 (3) [Alcoholic beverages] An alcoholic beverage may be sold or provided at a banquet
1187 by an on-premise banquet licensee subject to the restrictions set forth in this Subsection (3).
1188 (a) An on-premise banquet licensee may sell or provide [any] a primary spirituous
1189 liquor only in a quantity not to exceed one ounce per beverage dispensed through a calibrated
1190 metered dispensing system approved by the department in accordance with commission rules
1191 adopted under this title, except that:
1192 (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
1193 system if used as a secondary flavoring ingredient in a beverage subject to the following
1194 restrictions:
1195 (A) the secondary ingredient may be dispensed only in conjunction with the purchase
1196 of a primary spirituous liquor;
1197 (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
1198 (C) the on-premise banquet licensee shall designate a location where flavorings are
1199 stored on the floor plan provided to the department; and
1200 (D) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
1201 "flavorings";
1202 (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
1203 system if used:
1204 (A) as a flavoring on [desserts] a dessert; and
1205 (B) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
1206 dessert;
1207 (iii) [each] an attendee may have no more than 2.75 ounces of spirituous liquor at a

1208 time before the attendee; and
1209 (iv) [each] an attendee may have no more than one spirituous liquor drink at a time
1210 before the attendee.
1211 (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
1212 exceed five ounces per glass or individual portion.
1213 (B) An individual portion may be served to an attendee in more than one glass as long
1214 as the total amount of wine does not exceed five ounces.
1215 (C) An individual portion of wine is considered to be one alcoholic beverage under
1216 Subsection (5)(c).
1217 (ii) Wine may be sold and served in [containers] a container not exceeding 1.5 liters at
1218 [prices] a price fixed by the commission.
1219 (iii) A wine service may be performed and a service charge assessed by the on-premise
1220 banquet licensee as authorized by commission rule for wine purchased on the banquet
1221 premises.
1222 (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
1223 fixed by the commission.
1224 (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
1225 by commission rule for heavy beer purchased on the banquet premises.
1226 (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
1227 on-premise consumption:
1228 (A) in an open container; and
1229 (B) on draft.
1230 (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
1231 not exceed two liters, except that beer may not be sold to an individual attendee in a container
1232 size that exceeds one liter.
1233 (4) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
1234 any place other than as designated in the on-premise banquet licensee's application, except that
1235 additional locations in or on the premises of an on-premise banquet licensee may be approved
1236 in accordance with guidelines approved by the commission as provided in Subsection
1237 32A-4-402 (2).
1238 (5) (a) An attendee may only make an alcoholic beverage [purchases] purchase from

1239 and be served by a person employed, designated, and trained by the on-premise banquet
1240 licensee to sell and serve an alcoholic [beverages] beverage.
1241 (b) Notwithstanding Subsection (5)(a), an attendee who [has purchased] purchases
1242 bottled wine from an employee of the on-premise banquet licensee may thereafter serve wine
1243 from the bottle to the attendee or others at the attendee's table.
1244 (c) [Each] An attendee may have no more than two alcoholic beverages of any kind at a
1245 time before the attendee.
1246 (6) The alcoholic beverage storage area shall remain locked at all times other than
1247 those hours and days when alcoholic beverage sales are authorized by law.
1248 (7) (a) Except as provided in Subsection (7)(b), an alcoholic [beverages] beverage may
1249 be offered for sale, sold, served, or otherwise furnished by an on-premise banquet licensee
1250 from 10 a.m. to 1 a.m. seven days a week:
1251 (i) at a banquet; or
1252 (ii) in connection with room service.
1253 (b) Notwithstanding Subsection (7)(a), a sale or service of liquor may not occur at a
1254 banquet or in connection with room service until after the polls are closed on the day of:
1255 (i) a regular general election;
1256 (ii) a regular primary election; or
1257 (iii) a statewide special election.
1258 (8) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or otherwise
1259 furnished to [any] a:
1260 (a) minor;
1261 (b) person actually, apparently, or obviously intoxicated;
1262 (c) known habitual drunkard; or
1263 (d) known interdicted person.
1264 (9) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
1265 (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
1266 (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost
1267 of the alcoholic beverage to the on-premise banquet licensee.
1268 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1269 over consumption or intoxication.

1270 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1271 hours of the on-premise banquet licensee's business day such as a "happy hour."
1272 (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
1273 served for the price of a single alcoholic beverage [is prohibited].
1274 (f) An on-premise banquet licensee may not engage in a public promotion involving or
1275 offering free alcoholic beverages to the general public.
1276 (10) [Alcoholic beverages] An alcoholic beverage may not be purchased for an
1277 attendee by:
1278 (a) the on-premise banquet licensee; or
1279 (b) [any] an employee or agent of the on-premise banquet licensee.
1280 (11) An attendee of a banquet may not bring [any] an alcoholic beverage into or onto,
1281 or remove [any] an alcoholic beverage from the premises of a banquet.
1282 (12) (a) Except as otherwise provided in this title, the sale and service of an alcoholic
1283 [beverages] beverage by an on-premise banquet licensee at a banquet shall be made only for
1284 consumption at the location of the banquet.
1285 (b) The host of a banquet, an attendee, or [any other] a person other than the
1286 on-premise banquet licensee or [its employees] an employee of the on-premise banquet
1287 licensee, may not remove [any] an alcoholic beverage from the premises of the banquet.
1288 (13) An on-premise banquet licensee employee shall remain at the banquet at all times
1289 when an alcoholic [beverages are being] beverage is sold, served, or consumed at the banquet.
1290 (14) (a) An on-premise banquet licensee may not leave [any] an unsold alcoholic
1291 [beverages] beverage at the banquet following the conclusion of the banquet.
1292 (b) At the conclusion of a banquet, the on-premise banquet licensee or [its employees]
1293 an employee of the on-premise banquet licensee, shall:
1294 (i) destroy [any] an opened and unused alcoholic [beverages] beverage that [are] is not
1295 saleable, under conditions established by the department; and
1296 (ii) return to the on-premise banquet licensee's approved locked storage area [any] an:
1297 (A) opened and unused alcoholic beverage that is saleable; and
1298 (B) unopened [containers] container of an alcoholic [beverages] beverage.
1299 (15) Except as provided in Subsection (14), [any] an open or sealed container of an
1300 alcoholic [beverages] beverage not sold or consumed at a banquet:

1301 (a) shall be stored by the on-premise banquet licensee in the on-premise banquet
1302 licensee's approved locked storage area; and
1303 (b) may be used at more than one banquet.
1304 (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,
1305 or otherwise furnish an alcoholic [beverages] beverage in connection with the on-premise
1306 banquet licensee's banquet and room service activities.
1307 (17) An employee of an on-premise banquet licensee, while on duty, may not:
1308 (a) consume an alcoholic beverage; or
1309 (b) be intoxicated.
1310 (18) An on-premise banquet licensee shall prominently display at [each] a banquet at
1311 which an alcoholic [beverages are] beverage is sold or served:
1312 (a) a copy of the licensee's on-premise banquet license; and
1313 (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1314 drugs is a serious crime that is prosecuted aggressively in Utah."
1315 (19) An on-premise banquet licensee may not on the premises of the hotel, resort
1316 facility, sports center, or convention center:
1317 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1318 Chapter 10, Part 11, Gambling;
1319 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1320 Part 11, Gambling; or
1321 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1322 the risking of something of value for a return or for an outcome when the return or outcome is
1323 based upon an element of chance, excluding the playing of an amusement device that confers
1324 only an immediate and unrecorded right of replay not exchangeable for value.
1325 (20) (a) An on-premise banquet licensee shall maintain accounting and such other
1326 records and documents as the commission or department may require.
1327 (b) An on-premise banquet licensee or person acting for the on-premise banquet
1328 licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the
1329 entries in any of the books] an entry in a book of account or other [documents] document of the
1330 on-premise banquet licensee required to be made, maintained, or preserved by this title or the
1331 rules of the commission for the purpose of deceiving the commission [or], the department, [or

1332 any of their officials or employees] the attorney general, or an official or employee of the
1333 commission, department, or attorney general, is subject to:
1334 (i) the suspension or revocation of the on-premise banquet license; and
1335 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1336 (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
1337 licensee shall provide the department with advance notice of a scheduled banquet in
1338 accordance with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
1339 Administrative Rulemaking Act.
1340 (b) The advance notice required by Subsection (21)(a) is required to provide [any of]
1341 the following the opportunity to conduct a random inspection of a banquet:
1342 (i) an authorized representative of the commission or the department; or
1343 (ii) a law enforcement officer.
1344 (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
1345 banquet gross receipts from the sale of food, not including:
1346 (a) mix for an alcoholic [beverages] beverage; and
1347 (b) [charges] a charge in connection with the service of an alcoholic [beverages]
1348 beverage.
1349 (23) A person may not transfer an on-premise banquet license from one business
1350 location to another without prior written approval of the commission.
1351 (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
1352 barter, give, or attempt in any way to dispose of the license to [any other] another person,
1353 whether for monetary gain or not.
1354 (b) An on-premise banquet license has no monetary value for the purpose of any type
1355 of disposition.
1356 (25) (a) Room service of an alcoholic [beverages] beverage to a guest room of a hotel
1357 or resort facility shall be provided in person by an on-premise banquet licensee employee only
1358 to an adult guest in the guest room.
1359 (b) [Alcoholic beverages] An alcoholic beverage may not be left outside a guest room
1360 for retrieval by a guest.
1361 (c) An on-premise banquet licensee may only provide an alcoholic [beverages]
1362 beverage for room service in a sealed [containers] container.

1363 Section 8. Section 32A-5-107 is amended to read:
1364 32A-5-107. Operational restrictions.
1365 [Each] A club granted a private club license [and the employees], an employee, an
1366 individual who is a part of management personnel, [and members] or a member of the club
1367 shall comply with the following conditions and requirements. Failure to comply may result in
1368 a suspension or revocation of the private club license or other disciplinary action taken against
1369 an individual [employees or] employee or individual who is a part of management personnel.
1370 (1) [Each] A private club shall have a governing body that:
1371 (a) consists of three or more members of the private club; and
1372 (b) holds regular meetings to:
1373 (i) review membership applications; and
1374 (ii) conduct [any] other business as required by the bylaws or house rules of the private
1375 club.
1376 (2) (a) [Each] A private club may admit an individual as a member only on written
1377 application signed by the applicant, subject to:
1378 (i) the applicant paying an application fee as required by Subsection (4); and
1379 (ii) investigation, vote, and approval of a quorum of the governing body.
1380 (b) (i) [Admissions] An admission shall be recorded in the official minutes of a regular
1381 meeting of the governing body.
1382 (ii) An application, whether approved or disapproved, shall be filed as a part of the
1383 official records of the private club licensee.
1384 (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
1385 applicant and immediately accord the applicant temporary privileges of a member until the
1386 governing body completes its investigation and votes on the application, subject to the
1387 following conditions:
1388 (i) the applicant shall:
1389 (A) submit a written application; and
1390 (B) pay the application fee required by Subsection (4);
1391 (ii) the governing body votes on the application at its next meeting, which shall take
1392 place no later than 31 days following the day on which the application [was] is submitted; and
1393 (iii) the applicant's temporary membership privileges [are terminated] terminate if the

1394 governing body disapproves the application.
1395 (d) The spouse of a member of any class of private club [is entitled to all] has the rights
1396 and privileges of the member:
1397 (i) to the extent permitted by the bylaws or house rules of the private club; and
1398 (ii) except to the extent restricted by this title.
1399 (e) The minor child of a member of a class A private club [is entitled to all] has the
1400 rights and privileges of the member:
1401 (i) to the extent permitted by the bylaws or house rules of the private club; and
1402 (ii) except to the extent restricted by this title.
1403 (3) (a) [Each] A private club shall maintain a current and complete membership record
1404 showing:
1405 (i) the date of application of [each] a proposed member;
1406 (ii) [each] a member's address;
1407 (iii) the date the governing body approved a member's admission;
1408 (iv) the date initiation fees and dues [were] are assessed and paid; and
1409 (v) the serial number of the membership card issued to [each] a member.
1410 (b) A current record shall [also] be kept indicating when [members are dropped or
1411 resigned] a member is dropped or resigns.
1412 (4) (a) [Each] A private club shall establish in the private club bylaws or house rules
1413 application fees and membership dues:
1414 (i) as established by commission rules; and
1415 (ii) [which] that are collected from all members.
1416 (b) An application fee:
1417 (i) [shall] may not be less than $4;
1418 (ii) shall be paid when the applicant applies for membership; and
1419 (iii) at the discretion of the private club, may be credited toward membership dues if
1420 the governing body approves the applicant as a member.
1421 (5) (a) [Each] A private club may, in its discretion, allow an individual to be admitted
1422 to or use the private club premises as a guest only under the following conditions:
1423 (i) [each] a guest must be previously authorized by one of the following who agrees to
1424 host the guest into the private club:

1425 (A) an active member of the private club; or
1426 (B) a holder of a current visitor card;
1427 (ii) [each] a guest must be known by the guest's host based on a preexisting bonafide
1428 business or personal relationship with the host [prior to] before the guest's admittance to the
1429 private club;
1430 (iii) [each] a guest must be accompanied by the guest's host for the duration of the
1431 guest's visit to the private club;
1432 (iv) [each] a guest's host must remain on the private club premises for the duration of
1433 the guest's visit to the private club;
1434 (v) [each] a guest's host is responsible for the cost of [all] services extended to the
1435 guest;
1436 (vi) [each] a guest [enjoys] has only those privileges derived from the guest's host for
1437 the duration of the guest's visit to the private club;
1438 (vii) an employee of the private club, while on duty, may not act as a host for a guest;
1439 (viii) an employee of the private club, while on duty, may not attempt to locate a
1440 member or current visitor card holder to serve as a host for a guest with whom the member or
1441 visitor card holder has no acquaintance based on a preexisting bonafide business or personal
1442 relationship prior to the guest's arrival at the private club; and
1443 (ix) a private club [and its employees] or an employee of the private club may not enter
1444 into an agreement or arrangement with a club member or holder of a current visitor card to
1445 indiscriminately host [members] a member of the general public into the club as [guests] a
1446 guest.
1447 (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
1448 (i) the private club licensee is a class B private club; and
1449 (ii) the guest is a member of the same fraternal organization as the private club
1450 licensee.
1451 (6) [Each] A private club may, in its discretion, issue a visitor [cards] card to allow
1452 [individuals] an individual to enter and use the private club premises on a temporary basis
1453 under the following conditions:
1454 (a) [each] a visitor card shall be issued for a period not to exceed three weeks;
1455 (b) a fee of not less than $4 shall be assessed for [each] a visitor card that is issued;

1456 (c) a visitor card [shall] may not be issued to a minor;
1457 (d) a holder of a visitor card may not host more than seven guests at one time;
1458 (e) [each] a visitor card issued shall include:
1459 (i) the visitor's full name and signature;
1460 (ii) the date the visitor card [was] is issued;
1461 (iii) the date the visitor card expires;
1462 (iv) the club's name; and
1463 (v) the serial number of the visitor card; and
1464 (f) (i) the private club shall maintain a current record of the issuance of [each] a visitor
1465 card on the private club premises; and
1466 (ii) the record described in Subsection (6)(f)(i) shall:
1467 (A) be available for inspection by the department; and
1468 (B) include:
1469 (I) the name of the person to whom the visitor card [was] is issued;
1470 (II) the date the visitor card [was] is issued;
1471 (III) the date the visitor card expires; and
1472 (IV) the serial number of the visitor card.
1473 (7) A private club may not sell an alcoholic [beverages] beverage to or allow [any] a
1474 patron to be admitted to or use the private club premises other than:
1475 (a) a member;
1476 (b) a visitor who holds a valid visitor card issued under Subsection (6); or
1477 (c) a guest of:
1478 (i) a member; or
1479 (ii) a holder of a [current] valid visitor card.
1480 (8) (a) A minor may not be:
1481 (i) a member, officer, director, or trustee of a private club;
1482 (ii) issued a visitor card;
1483 (iii) admitted into, use, or be on the premises of [any] a lounge or bar area, as defined
1484 by commission rule, of [any] a private club except to the extent authorized under Subsection
1485 (8)(c)(ii);
1486 (iv) admitted into, use, or be on the premises of [any] a class D private club:

1487 (A) that operates as a sexually oriented business as defined by local ordinance; or
1488 (B) when a sexually oriented entertainer is performing on the premises; or
1489 (v) admitted into, use, or be on the premises of a class D private club except to the
1490 extent authorized under Subsections (8)(b) through (g).
1491 (b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
1492 club, a minor may be admitted into, use, or be on the premises of a class D private club under
1493 the following circumstances:
1494 (i) during [periods] a period when no alcoholic beverages are sold, served, otherwise
1495 furnished, or consumed on the premises, but in no event later than 1 p.m.;
1496 (ii) when accompanied at all times by a member or holder of a current visitor card who
1497 is the minor's parent, legal guardian, or spouse; and
1498 (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
1499 service provider.
1500 (c) A [minor may be employed by a] class D private club may employ a minor on the
1501 premises of the private club if:
1502 (i) the parent or legal guardian of the minor owns or operates the class D private club;
1503 or
1504 (ii) the minor performs maintenance and cleaning services during the hours when the
1505 private club is not open for business.
1506 (d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be
1507 admitted into, use, or be on the premises of a dance or concert hall if:
1508 (A) the dance or concert hall is located:
1509 (I) on the premises of a class D private club; or
1510 (II) on the property that immediately adjoins the premises of and is operated by a class
1511 D private club; and
1512 (B) the commission [has issued] issues the class D private club a permit to operate a
1513 minor dance or concert hall based on the criteria described in Subsection (8)(d)(iii).
1514 (ii) If the dance or concert hall is located on the premises of a class D private club, a
1515 minor must be properly hosted in accordance with Subsection (5) by:
1516 (A) a member; or
1517 (B) a holder of a current visitor card.

1518 (iii) The commission may issue a minor dance or concert hall permit if:
1519 (A) the private club's lounge, bar, and alcoholic beverage consumption area is:
1520 (I) not accessible to [minors] a minor;
1521 (II) clearly defined; and
1522 (III) separated from the dance or concert hall area by one or more walls, multiple floor
1523 levels, or other substantial physical barriers;
1524 (B) [any] a bar or dispensing area is not visible to [minors] a minor;
1525 (C) [no] consumption of an alcoholic [beverages] beverage may not occur in:
1526 (I) the dance or concert hall area; or
1527 (II) [any] an area of the private club accessible to a minor;
1528 (D) the private club maintains sufficient security personnel to prevent the passing of
1529 beverages from the private club's lounge, bar, or an alcoholic beverage consumption [areas]
1530 area to:
1531 (I) the dance or concert hall area; or
1532 (II) [any] an area of the private club accessible to a minor;
1533 (E) there are one or more separate entrances, exits, and restroom facilities from the
1534 private club's lounge, bar, and alcoholic beverage consumption areas than for:
1535 (I) the dance or concert hall area; or
1536 (II) [any] an area accessible to a minor; and
1537 (F) the private club complies with any other restrictions imposed by the commission by
1538 rule.
1539 (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
1540 guardian who is a member or holder of a current visitor card may be admitted into, use, or be
1541 on the premises of a concert hall described in Subsection (8)(d)(i) if:
1542 (i) [all] the requirements of Subsection (8)(d) are met; and
1543 (ii) [all] signage, product, and dispensing equipment containing recognition of an
1544 alcoholic [beverages] beverage is not visible to the minor.
1545 (f) A minor under 18 years of age but who is 14 years of age or older who is not
1546 accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
1547