S.B. 211

1

ALCOHOLIC BEVERAGE CONTROL
2 AMENDMENTS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Curtis S. Bramble
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Alcoholic Beverage Control Act.
11 Highlighted Provisions:
12 This bill:
13 . modifies definition provisions;
14 . addresses presentation of proof of age;
15 . enacts the Malted Beverage Act, including:
16 . providing for the treatment of a flavored malt beverage as a liquor;
17 . addressing approval of the label and packaging of a malt beverage; and
18 . providing transition protections;
19 . enacts provisions related to criminal background checks;
20 . addresses proximity restrictions;
21 . addresses markups;
22 . adjusts quota requirements for licenses;
23 . prohibits conduct related to controlled substances and drug paraphernalia;
24 . modifies requirements related to price lists and private clubs;
25 . establishes requirements related to the display of beer;
26 . expands provisions prohibiting operation without a license or permit; and
27 . makes technical and conforming amendments.

28 Monies Appropriated in this Bill:
29 None
30 Other Special Clauses:
31 None
32 Utah Code Sections Affected:
33 AMENDS:
34 32A-1-105, as last amended by Laws of Utah 2007, Chapter 284
35 32A-1-116, as last amended by Laws of Utah 2007, Chapter 284
36 32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
37 32A-1-122, as last amended by Laws of Utah 2007, Chapter 284
38 32A-1-302, as last amended by Laws of Utah 2002, Chapter 161
39 32A-1-304, as last amended by Laws of Utah 2002, Chapter 161
40 32A-2-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
41 32A-3-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
42 32A-3-102, as last amended by Laws of Utah 2003, Chapter 314
43 32A-4-101, as last amended by Laws of Utah 2006, Chapter 162
44 32A-4-102, as last amended by Laws of Utah 2007, Chapter 284
45 32A-4-104, as renumbered and amended by Laws of Utah 1990, Chapter 23
46 32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
47 32A-4-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
48 32A-4-302, as last amended by Laws of Utah 2006, Chapter 162
49 32A-4-303, as last amended by Laws of Utah 2007, Chapter 284
50 32A-4-305, as enacted by Laws of Utah 2003, Chapter 314
51 32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
52 32A-4-401, as last amended by Laws of Utah 2007, Chapter 284
53 32A-4-402, as last amended by Laws of Utah 2007, Chapter 284
54 32A-4-406, as last amended by Laws of Utah 2007, Chapters 284 and 341
55 32A-5-101, as last amended by Laws of Utah 2006, Chapter 162
56 32A-5-102, as last amended by Laws of Utah 2007, Chapter 284
57 32A-5-104, as last amended by Laws of Utah 2003, Chapter 314
58 32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341

59 32A-7-101, as last amended by Laws of Utah 2004, Chapter 268
60 32A-7-106, as last amended by Laws of Utah 2007, Chapters 284 and 341
61 32A-8-101, as last amended by Laws of Utah 2003, Chapter 314
62 32A-8-401, as last amended by Laws of Utah 2004, Chapter 268
63 32A-8-501, as last amended by Laws of Utah 2003, Chapter 314
64 32A-8-503, as last amended by Laws of Utah 2004, Chapter 268
65 32A-8-505, as last amended by Laws of Utah 2007, Chapter 284
66 32A-10-101, as last amended by Laws of Utah 2007, Chapter 284
67 32A-10-102, as last amended by Laws of Utah 2007, Chapter 284
68 32A-10-201, as last amended by Laws of Utah 2006, Chapter 162
69 32A-10-202, as last amended by Laws of Utah 2007, Chapter 284
70 32A-10-204, as last amended by Laws of Utah 1991, Chapter 5
71 32A-10-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
72 32A-10-306, as last amended by Laws of Utah 2007, Chapters 284 and 341
73 32A-11-106, as last amended by Laws of Utah 2004, Chapter 268
74 32A-12-212, as last amended by Laws of Utah 2005, Chapter 152
75 32A-12-301, as last amended by Laws of Utah 2006, Chapter 162
76 32A-12-307, as last amended by Laws of Utah 2003, Chapter 314
77 32A-12-603, as last amended by Laws of Utah 2004, Chapter 268
78 53-10-102, as last amended by Laws of Utah 2000, Chapter 1
79 76-5-113, as last amended by Laws of Utah 2004, Chapter 280
80 ENACTS:
81 32A-1-701, Utah Code Annotated 1953
82 32A-1-702, Utah Code Annotated 1953
83 32A-1-703, Utah Code Annotated 1953
84 32A-1-704, Utah Code Annotated 1953
85 32A-1-801, Utah Code Annotated 1953
86 32A-1-802, Utah Code Annotated 1953
87 32A-1-803, Utah Code Annotated 1953
88 32A-1-804, Utah Code Annotated 1953
89 32A-1-805, Utah Code Annotated 1953

90 32A-1-806, Utah Code Annotated 1953
91 32A-1-807, Utah Code Annotated 1953
92 32A-1-808, Utah Code Annotated 1953
93 32A-1-809, Utah Code Annotated 1953
94
95 Be it enacted by the Legislature of the state of Utah:
96 Section 1. Section 32A-1-105 is amended to read:
97 32A-1-105. Definitions.
98 As used in this title:
99 (1) "Airport lounge" means a place of business licensed to sell an alcoholic [beverages]
100 beverage, at retail, for consumption on its premises located at an international airport with a
101 United States Customs office on the premises of the international airport.
102 (2) "Alcoholic [beverages" means "beer" and "liquor"] beverage" means the following
103 as the [terms are] term is defined in this section[.]:
104 (a) beer;
105 (b) flavored malt beverage; and
106 (c) liquor, which on or after October 1, 2008, includes a flavored malt beverage.
107 (3) (a) "Alcoholic [products] product" means [all products] a product that:
108 [(i) contain:]
109 [(A)] (i) contains at least [63/100 of 1%] .5% of alcohol by volume; [or] and
110 [(B) at least 1/2 of 1% by weight; and]
111 (ii) [are] is obtained by fermentation, infusion, decoction, brewing, distillation, or [any]
112 other process that uses [any] liquid or combinations of liquids, whether drinkable or not, to
113 create alcohol in an amount greater than the amount prescribed in Subsection (3)(a)(i).
114 (b) "Alcoholic [products] product" does not include any of the following common
115 items that otherwise come within the definition of an alcoholic [products] product:
116 (i) [extracts] except as provided in Subsection (3)(c), extract;
117 (ii) [vinegars] vinegar;
118 (iii) [ciders] cider;
119 (iv) [essences] essence;
120 (v) [tinctures] tincture;

121 (vi) food [preparations] preparation; or
122 (vii) an over-the-counter [drugs and medicines] drug or medicine.
123 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
124 product when it is used as a flavoring in the manufacturing of an alcoholic product.
125 (4) "Bar" means a counter or similar structure:
126 (a) at which an alcoholic [beverages are] beverage is:
127 (i) stored; or
128 (ii) dispensed; or
129 (b) from which an alcoholic [beverages are] beverage is served.
130 (5) (a) ["Beer"] Subject to Subsection (5)(d), "beer" means [any] a product that:
131 (i) contains [63/100 of 1%] at least .5% of alcohol by volume [or 1/2 of 1% of alcohol
132 by weight], but not more than 4% of alcohol by volume or 3.2% by weight; and
133 (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
134 (b) Beer may or may not contain hops or other vegetable products.
135 (c) Beer includes a product that:
136 (i) contains alcohol in the percentages described in Subsection (5)(a); and
137 (ii) is referred to as:
138 [(A) malt liquor;]
139 [(B) malted beverages; or]
140 [(C) malt coolers.]
141 (A) beer;
142 (B) ale;
143 (C) porter;
144 (D) stout;
145 (E) lager; or
146 (F) a malt or malted beverage.
147 (d) On or after October 1, 2008, "beer" does not include a flavored malt beverage.
148 (6) (a) "Beer retailer" means a business that is:
149 (i) engaged, primarily or incidentally, in the retail sale of beer to [patrons] a patron,
150 whether for consumption on or off the business premises; and
151 (ii) licensed to sell beer by:

152 (A) the commission;
153 (B) a local authority; or
154 (C) both the commission and a local authority.
155 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
156 beer to [patrons] a patron for consumption off the beer retailer's premises.
157 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
158 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to
159 [patrons] a patron for consumption on the beer retailer's premises, regardless of whether the
160 business sells beer for consumption off the beer retailer's premises.
161 (7) "Billboard" means [any] a public display used to advertise including:
162 (a) a light device;
163 (b) a painting;
164 (c) a drawing;
165 (d) a poster;
166 (e) a sign;
167 (f) a signboard; or
168 (g) a scoreboard.
169 (8) "Brewer" means [any] a person engaged in manufacturing:
170 (a) beer[.];
171 (b) heavy beer; or
172 (c) a flavored malt beverage.
173 (9) "Cash bar" means the service of an alcoholic [beverages] beverage:
174 (a) at:
175 (i) a banquet; or
176 (ii) a temporary event for which a permit is issued under this title; and
177 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
178 beverage.
179 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
180 a bus company to a group of persons pursuant to a common purpose:
181 (a) under a single contract;
182 (b) at a fixed charge in accordance with the bus company's tariff; and

183 (c) for the purpose of giving the group of persons the exclusive use of the passenger
184 bus, coach, or other motor vehicle and a driver to travel together to [a] one or more specified
185 [destination or] destinations.
186 (11) "Church" means a building:
187 (a) set apart for the purpose of worship;
188 (b) in which religious services are held;
189 (c) with which clergy is associated; and
190 (d) which is tax exempt under the laws of this state.
191 (12) "Club" and "private club" means any of the following organized primarily for the
192 benefit of its members:
193 (a) a social club;
194 (b) a recreational association;
195 (c) a fraternal association;
196 (d) an athletic association; or
197 (e) a kindred association.
198 (13) "Commission" means the Alcoholic Beverage Control Commission.
199 (14) "Community location" means:
200 (a) a public or private school;
201 (b) a church;
202 (c) a public library;
203 (d) a public playground; or
204 (e) a public park.
205 (15) "Community location governing authority" means:
206 (a) the governing body of the community location; or
207 (b) a person who appears to the commission to have been given on behalf of the
208 community location authority to prohibit an activity at the community location.
209 [(14)] (16) "Department" means the Department of Alcoholic Beverage Control.
210 (17) "Director," unless the context requires otherwise, means the director appointed
211 under Section 32A-1-108 .
212 [(15)] (18) "Distressed merchandise" means [any] an alcoholic beverage in the
213 possession of the department that is saleable, but for some reason is unappealing to the public.

214 (19) "Flavored malt beverage" means a beverage:
215 (a) that contains at least .5% alcohol by volume;
216 (b) that is treated by processing, filtration, or another method of manufacture that is not
217 generally recognized as a traditional process in the production of a beer as described in 27
218 C.F.R. Sec. 25.55;
219 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
220 extract; and
221 (d) (i) for which the producer is required to file a formula for approval with the United
222 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
223 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
224 [(16)] (20) "Guest" means a person accompanied by an active member or visitor of a
225 club who enjoys only those privileges derived from the host for the duration of the visit to the
226 club.
227 [(17)] (21) (a) "Heavy beer" means [any] a product that:
228 (i) contains more than 4% alcohol by volume; and
229 (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
230 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
231 [(18)] (22) "Hosted bar" means the service of an alcoholic [beverages] beverage:
232 (a) without charge; and
233 (b) at a:
234 (i) banquet; or
235 (ii) privately hosted event.
236 [(19)] (23) "Identification card" means [the] an identification card issued under Title
237 53, Chapter 3, Part 8, Identification Card Act.
238 [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
239 an alcoholic beverage is prohibited by:
240 (a) law; or
241 (b) court order.
242 [(21)] (25) "Intoxicated" means that to a degree that is unlawful under Section
243 76-9-701 a person is under the influence of:
244 (a) an alcoholic beverage;

245 (b) a controlled substance;
246 (c) a substance having the property of releasing toxic vapors; or
247 (d) a combination of Subsections [(21)] (25)(a) through (c).
248 [(22)] (26) "Licensee" means [any] a person issued a license by the commission to sell,
249 manufacture, store, or allow consumption of an alcoholic [beverages] beverage on premises
250 owned or controlled by the person.
251 [(23)] (27) "Limousine" means [any] a motor vehicle licensed by the state or a local
252 authority, other than a bus or taxicab:
253 (a) in which the driver and [passengers] a passenger are separated by a partition, glass,
254 or other barrier; and
255 (b) that is provided by a company to [an individual or] one or more individuals at a
256 fixed charge in accordance with the company's tariff for the purpose of giving the [individual
257 or] one or more individuals the exclusive use of the limousine and a driver to travel to [a] one
258 or more specified [destination or] destinations.
259 [(24)] (28) (a) (i) "Liquor" means alcohol, or [any] an alcoholic, spirituous, vinous,
260 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
261 vinous, or fermented, [and all other drinks] or a drink, or drinkable [liquids] liquid that [contain
262 more than 1/2 of 1% of]:
263 (A) contains at least .5% alcohol by volume; and
264 (B) is suitable to use for beverage purposes.
265 (ii) On or after October 1, 2008, "liquor" includes a flavored malt beverage.
266 (b) "Liquor" does not include [any] a beverage defined as a beer[, malt liquor, or
267 malted beverage that has an alcohol content of less than 4% alcohol by volume].
268 [(25)] (29) "Local authority" means:
269 (a) the governing body of the county if the premises are located in an unincorporated
270 area of a county; or
271 (b) the governing body of the city or town if the premises are located in an incorporated
272 city or a town.
273 [(26)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
274 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
275 others.

276 [(27)] (31) "Member" means a person who, after paying regular dues, has full
277 privileges of a club under this title.
278 [(28)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,
279 center, or homeport facility for [any] a ship:
280 (i) (A) under the control of the United States Department of Defense; or
281 (B) of the National Guard;
282 (ii) that is located within the state; and
283 (iii) including [any] a leased facility.
284 (b) "Military installation" does not include [any] a facility used primarily for:
285 (i) civil works;
286 (ii) rivers and harbors projects; or
287 (iii) flood control projects.
288 [(29)] (33) "Minor" means [any person] an individual under the age of 21 years.
289 [(30)] (34) "Nude," "nudity," or "state of nudity" means:
290 (a) the appearance of:
291 (i) the nipple or areola of a female human breast;
292 (ii) a human genital;
293 (iii) a human pubic area; or
294 (iv) a human anus; or
295 (b) a state of dress that fails to opaquely cover:
296 (i) the nipple or areola of a female human breast;
297 (ii) a human genital;
298 (iii) a human pubic area; or
299 (iv) a human anus.
300 [(31)] (35) "Outlet" means a location other than a state store or package agency where
301 an alcoholic [beverages are] beverage is sold pursuant to a license issued by the commission.
302 [(32)] (36) "Package" means any of the following containing liquor:
303 (a) a container;
304 (b) a bottle;
305 (c) a vessel; or
306 (d) other receptacle.

307 [(33)] (37) "Package agency" means a retail liquor location operated:
308 (a) under a contractual agreement with the department[,]; and
309 (b) by a person:
310 (i) other than the state[,]; and
311 (ii) who is authorized by the commission to sell package liquor for consumption off the
312 premises of the package agency.
313 [(34)] (38) "Package agent" means [any] a person permitted by the commission to
314 operate a package agency pursuant to a contractual agreement with the department to sell liquor
315 from premises that the package agent shall provide and maintain.
316 [(35)] (39) "Permittee" means [any] a person issued a permit by the commission to
317 perform [acts] an act or exercise [privileges] a privilege as specifically granted in the permit.
318 [(36)] (40) "Person" means [any] an individual, partnership, firm, corporation, limited
319 liability company, association, business trust, or other form of business enterprise, including a
320 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
321 more limited meaning is disclosed by the context.
322 [(37)] (41) "Premises" means [any] a building, enclosure, room, or equipment used in
323 connection with the sale, storage, service, manufacture, distribution, or consumption of an
324 alcoholic [products] product, unless otherwise defined in this title or in the rules adopted by the
325 commission.
326 [(38)] (42) "Prescription" means a writing in legal form, signed by a physician or
327 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
328 [(39)] (43) (a) "Privately hosted event" or "private social function" means a specific
329 social, business, or recreational event:
330 (i) for which an entire room, area, or hall [has been] is leased or rented[,] in advance by
331 an identified group[,]; and [the event or function]
332 (ii) that is limited in attendance to people who [have been] are specifically designated
333 and their guests.
334 (b) "Privately hosted event" and "private social function" does not include [events or
335 functions] an event to which the general public is invited, whether for an admission fee or not.
336 [(40)] (44) "Proof of age" means:
337 (a) an identification card;

338 (b) an identification that:
339 (i) is substantially similar to an identification card;
340 (ii) is issued in accordance with the laws of a state other than Utah in which the
341 identification is issued;
342 (iii) includes date of birth; and
343 (iv) has a picture affixed;
344 (c) a valid driver license certificate that:
345 (i) includes date of birth;
346 (ii) has a picture affixed; and
347 (iii) is issued:
348 (A) under Title 53, Chapter 3, Uniform Driver License Act; or
349 (B) in accordance with the laws of the state in which it is issued;
350 (d) a military identification card that:
351 (i) includes date of birth; and
352 (ii) has a picture affixed; or
353 (e) a valid passport.
354 [(41)] (45) (a) "Public building" means [any] a building or permanent structure owned
355 or leased by the state, a county, or local government entity that is used for:
356 (i) public education;
357 (ii) transacting public business; or
358 (iii) regularly conducting government activities.
359 (b) "Public building" does not mean or refer to [any] a building owned by the state or a
360 county or local government entity when the building is used by [anyone] a person, in whole or
361 in part, for a proprietary [functions] function.
362 [(42)] (46) "Representative" means an individual who is compensated by salary,
363 commission, or [any] other means for representing and selling [the] an alcoholic beverage
364 [products] product of a manufacturer, supplier, or importer of liquor[,] including:
365 (a) wine[, or];
366 (b) heavy beer; or
367 (c) on or after October 1, 2008, a flavored malt beverage.
368 [(43)] (47) "Residence" means [the] a person's principal place of abode within Utah.

369 [(44)] (48) "Restaurant" means [any] a business establishment:
370 (a) where a variety of foods is prepared and complete meals are served to the general
371 public;
372 (b) located on a premises having adequate culinary fixtures for food preparation and
373 dining accommodations; and
374 (c) that is engaged primarily in serving meals to the general public.
375 [(45)] (49) "Retailer" means [any] a person engaged in the sale or distribution of an
376 alcoholic [beverages] beverage to [the] a consumer.
377 [(46)] (50) (a) "Sample" includes:
378 (i) a department sample; and
379 (ii) an industry representative sample.
380 (b) "Department sample" means liquor[, wine, and heavy beer] that [has been] is placed
381 in the possession of the department for testing, analysis, and sampling including:
382 (i) wine;
383 (ii) heavy beer; or
384 (iii) on or after October 1, 2008, a flavored malt beverage.
385 (c) "Industry representative sample" means liquor[, wine, and heavy beer] that [has
386 been] is placed in the possession of the department:
387 (i) for testing, analysis, and sampling by a local industry [representatives]
388 representative on the premises of the department to educate the local industry [representatives]
389 representative of the quality and characteristics of the product[.]; and
390 (ii) including:
391 (A) wine;
392 (B) heavy beer; or
393 (C) on or after October 1, 2008, a flavored malt beverage.
394 [(47)] (51) (a) "School" means [any] a building used primarily for the general
395 education of minors.
396 (b) "School" does not include:
397 (i) a nursery school;
398 (ii) an infant day care center; or
399 (iii) a trade or technical school.

400 [(48)] (52) "Sell," "sale," and "to sell" means [any] a transaction, exchange, or barter
401 whereby, for [any] consideration, an alcoholic beverage is either directly or indirectly
402 transferred, solicited, ordered, delivered for value, or by [any] a means or under [any] a pretext
403 is promised or obtained, whether done by a person as a principal, proprietor, or as an agent,
404 servant, or employee, unless otherwise defined in this title or the rules made by the
405 commission.
406 [(49)] (53) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
407 which opaque clothing covers no more than:
408 (a) the nipple and areola of the female human breast in a shape and color other than the
409 natural shape and color of the nipple and areola; and
410 (b) the human genitals, pubic area, and anus:
411 (i) with no less than the following at its widest point:
412 (A) four inches coverage width in the front of the human body; and
413 (B) five inches coverage width in the back of the human body; and
414 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
415 [(50)] (54) "Sexually oriented entertainer" means a person who while in a state of
416 seminudity appears at or performs:
417 (a) for the entertainment of one or more patrons;
418 (b) on the premises of:
419 (i) a class D private club as defined in Subsection 32A-5-101 (3); or
420 (ii) a tavern;
421 (c) on behalf of or at the request of the licensee described in Subsection [(50)] (54)(b);
422 (d) on a contractual or voluntary basis; and
423 (e) whether or not the person is designated:
424 (i) an employee of the licensee described in Subsection [(50)] (54)(b);
425 (ii) an independent contractor of the licensee described in Subsection [(50)] (54)(b);
426 (iii) an agent of the licensee described in Subsection [(50)] (54)(b); or
427 (iv) otherwise of the licensee described in Subsection [(50)] (54)(b).
428 [(51)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels
429 of beer [and], heavy beer, and flavored malt beverages per year.
430 [(52)] (56) (a) "Spirituous liquor" means liquor that is distilled.

431 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
432 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
433 [(53)] (57) (a) "State label" means the official label designated by the commission
434 affixed to [all] a liquor [containers] container sold in the state.
435 (b) "State label" includes the department identification mark and inventory control
436 number.
437 [(54)] (58) (a) "State store" means a facility for the sale of package liquor:
438 (i) located on premises owned or leased by the state; and
439 (ii) operated by one or more state employees.
440 (b) "State store" does not apply to [any] a:
441 (i) licensee;
442 (ii) permittee; or
443 (iii) package agency.
444 [(55)] (59) "Supplier" means [any] a person selling an alcoholic [beverages] beverage
445 to the department.
446 [(56)] (60) (a) "Tavern" means [any] a business establishment that is:
447 (i) engaged primarily in the retail sale of beer to a public [patrons] patron for
448 consumption on the establishment's premises; and
449 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
450 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
451 revenue of the sale of food, although food need not be sold in the establishment:
452 (i) a beer bar;
453 (ii) a parlor;
454 (iii) a lounge;
455 (iv) a cabaret; or
456 (v) a nightclub.
457 [(57)] (61) "Temporary domicile" means the principal place of abode within Utah of a
458 person who does not have a present intention to continue residency within Utah permanently or
459 indefinitely.
460 [(58)] (62) "Unsaleable liquor merchandise" means merchandise that:
461 (a) is unsaleable because the merchandise is:

462 (i) unlabeled;
463 (ii) leaky;
464 (iii) damaged;
465 (iv) difficult to open; or
466 (v) partly filled;
467 (b) is in a container:
468 (i) having faded labels or defective caps or corks;
469 (ii) in which the contents are:
470 (A) cloudy;
471 (B) spoiled; or
472 (C) chemically determined to be impure; or
473 (iii) that contains:
474 (A) sediment; or
475 (B) [any] a foreign substance; or
476 (c) is otherwise considered by the department as unfit for sale.
477 [(59)] (63) "Visitor" means an individual that in accordance with Section 32A-5-107
478 holds limited privileges in a private club by virtue of a visitor card.
479 [(60)] (64) "Warehouser" means [any] a person, other than a licensed manufacturer,
480 engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
481 [(61)] (65) (a) "Wholesaler" means [any] a person engaged in the importation for sale,
482 or in the sale of beer in wholesale or jobbing quantities to one or more retailers[, other than a].
483 (b) Notwithstanding Subsection (65)(a), "wholesaler" does not include a small brewer
484 selling beer manufactured by that brewer.
485 [(62)] (66) (a) "Wine" means [any] an alcoholic beverage obtained by the fermentation
486 of the natural sugar content of fruits, plants, honey, or milk, or [any] other like substance,
487 whether or not [other ingredients are] another ingredient is added.
488 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
489 provided in this title.
490 Section 2. Section 32A-1-116 is amended to read:
491 32A-1-116. Purchase of liquor.
492 (1) The department may not purchase or stock spirituous liquor in [containers] a

493 container smaller than 200 milliliters except as otherwise allowed by the commission.
494 (2) (a) Each order by the department for the purchase of spirituous liquor, wine, [or]
495 heavy beer, or flavored malt beverage, or any cancellation by the department of an order for
496 spirituous liquor, wine, [or] heavy beer, or flavored malt beverage:
497 (i) shall be executed in writing by the department; and
498 (ii) is not valid or binding unless executed in writing.
499 (b) A copy of each order or cancellation shall be kept on file by the department for at
500 least three years.
501 (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
502 Chapter 4, Uniform Electronic Transactions Act.
503 Section 3. Section 32A-1-119 is amended to read:
504 32A-1-119. Disciplinary proceedings -- Procedure.
505 (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
506 an adjudicative proceeding permitted under this title:
507 (i) against:
508 (A) a permittee;
509 (B) a licensee;
510 (C) a manufacturer;
511 (D) a supplier;
512 (E) an importer;
513 (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
514 or
515 (G) an officer, employee, or agent of:
516 (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
517 (II) a package agent; and
518 (ii) that is brought on the basis of a violation of this title.
519 (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
520 final unappealable judgment or order has been issued.
521 (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
522 necessary and proper for the administration of this title and rules adopted under this title:
523 (i) the commission;

524 (ii) a hearing examiner appointed by the commission for the purposes provided in
525 Subsection 32A-1-107 (3);
526 (iii) the director; and
527 (iv) the department.
528 (b) Except as provided in this section or Section 32A-3-106 , the following shall
529 comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
530 Procedures Act, in adjudicative proceedings:
531 (i) the commission;
532 (ii) a hearing examiner appointed by the commission;
533 (iii) the director; and
534 (iv) the department.
535 (c) Except where otherwise provided by law, all adjudicative proceedings before the
536 commission or its appointed hearing examiner shall be:
537 (i) video or audio recorded; and
538 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
539 Open and Public Meetings Act.
540 (d) [All adjudicative proceedings] An adjudicative proceeding concerning departmental
541 personnel shall be conducted in accordance with Title 67, Chapter 19, Utah State Personnel
542 Management Act.
543 (e) [All hearings that are] A hearing that is informational, fact gathering, and
544 nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures
545 promulgated by the commission, director, or department.
546 (3) (a) A disciplinary proceeding shall be conducted under the authority of the
547 commission, which is responsible for rendering a final decision and order on any disciplinary
548 matter.
549 (b) (i) Nothing in this section precludes the commission from appointing necessary
550 officers, including hearing examiners, from within or without the department, to administer the
551 disciplinary proceeding process.
552 (ii) A hearing examiner appointed by the commission:
553 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
554 (B) shall submit to the commission a report including:

555 (I) findings of fact determined on the basis of a preponderance of the evidence
556 presented at the hearing;
557 (II) conclusions of law; and
558 (III) recommendations.
559 (c) Nothing in this section precludes the commission, after the commission has
560 rendered its final decision and order, from having the director prepare, issue, and cause to be
561 served on the parties the final written order on behalf of the commission.
562 (4) (a) The department may initiate a disciplinary proceeding described in Subsection
563 (4)(b) when the department receives:
564 (i) a report from any government agency, peace officer, examiner, or investigator
565 alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
566 the rules of the commission;
567 (ii) a final adjudication of criminal liability against any person listed in Subsections
568 (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
569 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
570 Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
571 violation of this title.
572 (b) The department may initiate a disciplinary proceeding if the department receives an
573 item listed in Subsection (4)(a) to determine:
574 (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
575 or rules of the commission; and
576 (ii) if a violation is found, the appropriate sanction to be imposed.
577 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
578 (i) if required by law;
579 (ii) before revoking or suspending any permit, license, or certificate of approval issued
580 under this title; or
581 (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A)
582 through (G).
583 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
584 hearing after receiving proper notice is an admission of the charged violation.
585 (c) The validity of a disciplinary proceeding is not affected by the failure of any person

586 to attend or remain in attendance.
587 (d) All disciplinary proceeding hearings shall be presided over by the commission or an
588 appointed hearing examiner.
589 (e) A disciplinary proceeding hearing may be closed only after the commission or
590 hearing examiner makes a written finding that the public interest in an open hearing is clearly
591 outweighed by factors enumerated in the closure order.
592 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
593 hearing may:
594 (A) administer oaths or affirmations;
595 (B) take evidence;
596 (C) take depositions within or without this state; and
597 (D) require by subpoena from any place within this state:
598 (I) the testimony of any person at a hearing; and
599 (II) the production of any books, records, papers, contracts, agreements, documents, or
600 other evidence considered relevant to the inquiry.
601 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
602 produce any books, papers, documents, or tangible things as required in the subpoena.
603 (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
604 privilege against self-incrimination may not be compelled to testify, but the commission or the
605 hearing examiner shall file a written report with the county attorney or district attorney in the
606 jurisdiction where the privilege was claimed or where the witness resides setting forth the
607 circumstance of the claimed privilege.
608 (iv) (A) A person is not excused from obeying a subpoena without just cause.
609 (B) Any district court within the judicial district in which a person alleged to be guilty
610 of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
611 by the party issuing the subpoena, may issue an order requiring the person to:
612 (I) appear before the issuing party; and
613 (II) (Aa) produce documentary evidence if so ordered; or
614 (Bb) give evidence regarding the matter in question.
615 (C) Failure to obey an order of the court may be punished by the court as contempt.
616 (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing

617 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
618 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
619 recommend a penalty more severe than that initially sought by the department in the notice of
620 agency action.
621 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
622 shall be served upon the respective parties.
623 (iv) The respondent and the department shall be given reasonable opportunity to file
624 any written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
625 before final commission action.
626 (h) In all cases heard by the commission, it shall issue its final decision and order in
627 accordance with Subsection (3).
628 (6) (a) The commission shall:
629 (i) render a final decision and order on any disciplinary action; and
630 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
631 (b) [Any] An order of the commission is considered final on the date the order
632 becomes effective.
633 (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
634 through (G) has committed a violation of this title or the commission's rules, in accordance
635 with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
636 (i) suspend or revoke the permit, license, or certificate of approval;
637 (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
638 (iii) assess the administrative costs of any disciplinary proceeding to the permittee, the
639 licensee, or certificate holder; or
640 (iv) any combination of Subsections (6)(c)(i) through (iii).
641 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
642 32A-1-107 (1)(p) and (4).
643 (e) (i) If a permit or license is suspended under this Subsection (6), a sign provided by
644 the department shall be prominently posted:
645 (A) during the suspension;
646 (B) by the permittee or licensee; and
647 (C) at the entrance of the premises of the permittee or licensee.

648 (ii) The sign required by this Subsection (6)(e) shall:
649 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
650 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
651 sold, served, furnished, or consumed on these premises during the period of suspension."; and
652 (B) include the dates of the suspension period.
653 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
654 to be posted under this Subsection (6)(e) during the suspension period.
655 (f) If a permit or license is revoked, the commission may order the revocation of any
656 compliance bond posted by the permittee or licensee.
657 (g) Any permittee or licensee whose permit or license is revoked may not reapply for a
658 permit or license under this title for three years from the date on which the permit or license is
659 revoked.
660 (h) [All costs] Costs assessed by the commission shall be transferred into the General
661 Fund in accordance with Section 32A-1-113 .
662 (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder
663 under this section, the department may initiate disciplinary action against an officer, employee,
664 or agent of a permittee, licensee, or certificate holder.
665 (b) If any officer, employee, or agent is found to have violated this title, the
666 commission may prohibit the officer, employee, or agent from serving, selling, distributing,
667 manufacturing, wholesaling, warehousing, or handling alcoholic beverages in the course of
668 employment with any permittee, licensee, or certificate holder under this title for a period
669 determined by the commission.
670 (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of
671 this title or the rules of the commission against:
672 (i) a manufacturer, supplier, or importer of alcoholic beverages; or
673 (ii) an officer, employee, agent, or representative of a person listed in Subsection
674 (8)(a)(i).
675 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
676 commission may, in addition to other penalties prescribed by this title, order:
677 (A) the removal of the manufacturer's, supplier's, or importer's products from the
678 department's sales list; and

679 (B) a suspension of the department's purchase of the products described in Subsection
680 (8)(b)(i)(A) for a period determined by the commission.
681 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
682 (A) any manufacturer, supplier, or importer of liquor, wine, [or] heavy beer, or a
683 flavored malt beverage, or its officer, employee, agent, or representative violates any provision
684 of this title; and
685 (B) the manufacturer, supplier, or importer:
686 (I) directly committed the violation; or
687 (II) solicited, requested, commanded, encouraged, or intentionally aided another to
688 engage in the violation.
689 (9) (a) The department may initiate a disciplinary proceeding against a brewer holding
690 a certificate of approval under Section 32A-8-101 for an alleged violation of this title or the
691 rules of the commission.
692 (b) If the commission makes a finding that the brewer holding a certificate of approval
693 violates this title or rules of the commission, the commission may take any action against the
694 brewer holding a certificate of approval that the commission could take against a licensee
695 including:
696 (i) suspension or revocation of the certificate of approval; and
697 (ii) imposition of a fine.
698 (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
699 the commission or a hearing examiner appointed by the commission shall proceed formally in
700 accordance with Sections 63-46b-6 through 63-46b-11 in any case where:
701 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
702 and welfare;
703 (ii) the alleged violation involves:
704 (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
705 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
706 Entertainment Act;
707 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
708 of the respondent;
709 (D) interfering or refusing to cooperate with:

710 (I) an authorized official of the department or the state in the discharge of the official's
711 duties in relation to the enforcement of this title; or
712 (II) a peace officer in the discharge of the peace officer's duties in relation to the
713 enforcement of this title;
714 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
715 (F) unlawful importation of alcoholic products; or
716 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
717 32A-12-601 (2), to any person other than the department or a military installation, except to the
718 extent permitted by this title; or
719 (iii) the department determines to seek in a disciplinary proceeding hearing:
720 (A) an administrative fine exceeding $3,000;
721 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
722 or
723 (C) a revocation of a license, permit, or certificate of approval.
724 (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
725 Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
726 Section 4. Section 32A-1-122 is amended to read:
727 32A-1-122. Liquor prices -- School lunch program.
728 (1) For purposes of this section:
729 (a) "Landed case cost" means:
730 (i) the cost of the product; and
731 (ii) inbound shipping costs incurred by the department.
732 (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
733 of the department to a state store.
734 (2) (a) Except as provided in Subsections (2)(b) and (c), [all] spirituous liquor and
735 wine sold by the department within the state shall be marked up in an amount not less than
736 86% above the landed case cost to the department.
737 (b) [All spirituous] Spirituous liquor and wine sold by the department to a military
738 [installations] installation in Utah shall be marked up in an amount not less than 15% above the
739 landed case cost to the department.
740 (c) If a wine manufacturer producing less than 20,000 gallons of wine in any calendar

741 year, as verified by the department pursuant to federal or other verifiable production reports,
742 first applies to the department for a reduced markup, all wine produced by the wine
743 manufacturer and sold to the department shall be marked up by the department in an amount
744 not less than 47% above the landed case cost to the department.
745 (3) (a) Except as provided in Subsection (3)(b), [all] heavy beer sold by the department
746 within the state shall be marked up in an amount not less than 64.5% above the landed case
747 cost to the department.
748 (b) [All heavy] Heavy beer sold by the department to a military [installations]
749 installation in Utah shall be marked up in an amount not less than 15% above the landed case
750 cost to the department.
751 (4) (a) Except as provided in Subsection (4)(b), a flavored malt beverage sold by the
752 department within the state shall be marked up in an amount not less than 86% above the
753 landed case cost to the department.
754 (b) A flavored malt beverage sold by the department to a military installation in Utah
755 shall be marked up in an amount not less than 15% above the landed case cost to the
756 department.
757 [(4)] (5) Ten percent of the total gross revenue from sales of [spiritous] spirituous
758 liquor, wine, [and] heavy beer, and flavored malt beverages shall be deposited by the
759 department with the state treasurer and credited to the Uniform School Fund to be used to
760 support the school lunch program administered by the State Board of Education under Section
761 53A-19-201 .
762 [(5)] (6) Nothing in this section prohibits the department from selling discontinued
763 items at a discount.
764 Section 5. Section 32A-1-302 is amended to read:
765 32A-1-302. Presentation of proof of age upon request.
766 (1) To obtain one or more of the following, a person shall present proof of age at the
767 request of a person listed in Subsection (2):
768 (a) an alcoholic beverage or alcoholic product; [or]
769 (b) admittance that under this title may not be obtained by a minor to a premises where
770 an alcoholic beverage or alcoholic product is sold or consumed; or
771 [(b)] (c) employment that under this title may not be obtained by a minor.

772 (2) To determine whether the person described in Subsection (1) is 21 years of age, the
773 following may request a person described in Subsection (1) to present proof of age:
774 (a) a person authorized by law to sell or otherwise handle an alcoholic [beverages or
775 products] beverage or alcoholic product;
776 (b) a peace officer;
777 (c) a representative of the State Bureau of Investigation of the Department of Public
778 Safety, established in Section 53-10-301 ; or
779 (d) an authorized employee of the department.
780 Section 6. Section 32A-1-304 is amended to read:
781 32A-1-304. Acceptance of identification -- Evidence.
782 (1) A person authorized by law to sell or otherwise handle an alcoholic [beverages or
783 products] beverage or alcoholic product may accept as evidence of the legal age of the person
784 presenting the following:
785 (a) proof of age; or
786 (b) if a statement of age is required under Subsection 32A-1-303 (1):
787 (i) proof of age; and
788 (ii) a statement of age obtained under Section 32A-1-303 .
789 (2) A statement of age described in Section 32A-1-303 , if properly completed, signed,
790 and filed in accordance with Section 32A-1-303 , may be offered as a defense in [any] a case
791 where there is at issue the legality of:
792 (a) selling or otherwise furnishing an alcoholic beverage or product to the person who
793 signed the statement of age; [or]
794 (b) admitting a minor to a premises where an alcoholic beverage or alcoholic product is
795 sold or consumed; or
796 [(b)] (c) allowing the person who signed the statement of age to be employed in any
797 employment that under this title may not be obtained by a minor.
798 (3) A person may not be subject to a penalty for a violation of this part if it is proved to
799 the commission or the court hearing the matter that the person charged with the violation acted
800 in good faith.
801 Section 7. Section 32A-1-701 is enacted to read:
802 Part 7. Criminal Background Check Act

803 32A-1-701. Title.
804 This part is known as the "Criminal Background Check Act."
805 Section 8. Section 32A-1-702 is enacted to read:
806 32A-1-702. Requirement for a criminal background check.
807 (1) The department shall require an individual listed in Subsection (2) to, in accordance
808 with this part:
809 (a) submit a fingerprint card in a form acceptable to the department; and
810 (b) consent to a fingerprint criminal background check by:
811 (i) the Utah Bureau of Criminal Identification; and
812 (ii) the Federal Bureau of Investigation.
813 (2) The following shall comply with Subsection (1):
814 (a) an individual applying for employment with the department;
815 (b) an individual applying to the commission to operate a package agency;
816 (c) an individual applying to the commission for a license;
817 (d) an individual who with regard to an entity that is applying to the commission to
818 operate a package agency or for a license is:
819 (i) a partner;
820 (ii) a managing agent;
821 (iii) a manager;
822 (iv) an officer;
823 (v) a director;
824 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
825 corporation;
826 (vii) a member who owns at least 20% of a limited liability company; or
827 (viii) an individual employed to act in a supervisory or managerial capacity; or
828 (e) an individual who becomes involved in an entity listed in Subsection (2)(b) or (c) in
829 a capacity listed in Subsection (2)(d) on or after the day on which the entity:
830 (i) is approved to operate a package agency; or
831 (ii) is licensed by the commission.
832 (3) The department shall require compliance with Subsection (2)(e) as a condition of
833 an entity's:

834 (a) continued operation of a package agency; or
835 (b) renewal of a license.
836 (4) The department may require as a condition of continued employment that an
837 employee:
838 (a) submit a fingerprint card in a form acceptable to the department; and
839 (b) consent to a fingerprint criminal background check by:
840 (i) the Utah Bureau of Criminal Identification; and
841 (ii) the Federal Bureau of Investigation.
842 Section 9. Section 32A-1-703 is enacted to read:
843 32A-1-703. Use of information from a criminal background check.
844 The commission or department may use information obtained pursuant to Section
845 32A-1-702 only for one or more of the following purposes:
846 (1) enforcing this title;
847 (2) determining whether or not an individual is convicted of any of the following
848 offenses that disqualify the individual under this title from acting in a capacity described in
849 Subsection 32A-1-702 (2):
850 (a) a felony under federal or state law;
851 (b) a violation of a federal law, state law, or local ordinance concerning the sale,
852 manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
853 beverage;
854 (c) a crime involving moral turpitude; or
855 (d) on two or more occasions within the previous five years, driving under the
856 influence of alcohol, a drug, or the combined influence of alcohol and a drug;
857 (3) determining whether or not an individual fails to accurately disclose the person's
858 criminal history on an application or document filed with the department or commission;
859 (4) approving or denying an application for employment with the department;
860 (5) taking disciplinary action against an employee of the department, including
861 possible termination of employment;
862 (6) granting or denying an application to operate a package agency;
863 (7) granting or denying an application for a license;
864 (8) granting or denying the renewal of a package agency contract;

865 (9) granting or denying the renewal of a license;
866 (10) suspending the operation of a package agency;
867 (11) terminating a package agency contract; or
868 (12) suspending or revoking a license.
869 Section 10. Section 32A-1-704 is enacted to read:
870 32A-1-704. Criminal background check procedure.
871 (1) (a) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall
872 provide a fingerprint card at the expense of the individual.
873 (b) The department shall pay the expense of obtaining a fingerprint card required of:
874 (i) an applicant for employment with the department; or
875 (ii) an employee of the department.
876 (2) (a) The department shall obtain information from a criminal history record
877 maintained by the Utah Bureau of Criminal Identification pursuant to Title 53, Chapter 10, Part
878 2, Bureau of Criminal Identification, for a purpose outlined in Section 32A-1-703 .
879 (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to
880 the department the expense of obtaining the criminal history record described in Subsection
881 (2)(a).
882 (c) The department shall pay the expense of obtaining the criminal history record
883 required for:
884 (i) an applicant for employment with the department; or
885 (ii) an employee of the department.
886 (3) (a) The department shall submit a fingerprint card obtained under Section
887 32A-1-702 of an individual who has not resided in the state for at least two years before the day
888 on which the fingerprint card is submitted to the Utah Bureau of Criminal Identification to be
889 forwarded to the Federal Bureau of Investigation for a nationwide criminal history record
890 check.
891 (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to
892 the department the expense of obtaining the criminal history record described in Subsection
893 (3)(a).
894 (c) The department shall pay the expense of obtaining the criminal history record
895 required for:

896 (i) an applicant for employment with the department; or
897 (ii) an employee of the department.
898 (4) The department shall pay the Utah Bureau of Criminal Identification the costs
899 incurred in providing the department criminal background information.
900 (5) (a) The commission, the department, or an official or employee of the commission
901 or department may not disseminate a criminal history record obtained under this part to any
902 person except for a purpose described in Subsection 32A-1-703 .
903 (b) (i) Notwithstanding Subsection (5)(a), a criminal history record obtained under this
904 part may be provided by the department to the individual who is the subject of the criminal
905 history record.
906 (ii) The department shall provide an individual who is the subject of a criminal history
907 record and who requests the criminal history record an opportunity to:
908 (A) review the criminal history record; and
909 (B) respond to information in the criminal history record.
910 (6) If an individual described in Subsection 32A-1-702 (2) is determined to be
911 disqualified under Subsection 32A-1-703 (2)(b), the department shall provide the individual
912 with:
913 (a) notice of the reason for the disqualification; and
914 (b) an opportunity to respond to the disqualification.
915 (7) The department shall maintain the following in one or more separate files so that
916 they may be accessed only for a purpose under Section 32A-1-703 :
917 (a) a fingerprint card submitted under this part; and
918 (b) a criminal history record received from:
919 (i) the Utah Bureau of Criminal Identification; and
920 (ii) the Federal Bureau of Investigation.
921 Section 11. Section 32A-1-801 is enacted to read:
922 Part 8. Malted Beverages Act
923 32A-1-801. Title.
924 This part is known as the "Malted Beverages Act."
925 Section 12. Section 32A-1-802 is enacted to read:
926 32A-1-802. Definitions.

927 As used in this part:
928 (1) "Malted beverages means:
929 (a) beer;
930 (b) a flavored malt beverage; and
931 (c) heavy beer.
932 (2) "Packaging" means the outer packaging that is visible to a consumer such as a
933 carton, case, or other wrapper of a container.
934 Section 13. Section 32A-1-803 is enacted to read:
935 32A-1-803. Power of the commission and department to classify flavored malted
936 beverages.
937 (1) The commission and department shall beginning on October 1, 2008, regulate a
938 flavored malt beverage as liquor.
939 (2) (a) By no later than October 1, 2008, the department shall make available to the
940 public on the Internet a list of all flavored malt beverages authorized to be sold in this state as
941 liquor.
942 (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
943 (3) (a) Beginning on August 1, 2008, a manufacturer shall file, under penalty of
944 perjury, a report with the department listing each flavored malt beverage manufactured by the
945 manufacturer that the manufacturer wants to distribute in this state on or after October 1, 2008,
946 subject to the manufacturer holding:
947 (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
948 (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
949 (b) On or after October 1, 2008, a manufacturer may not distribute or sell in this state a
950 flavored malt beverage if the manufacturer does not list the flavored malt beverage in a filing
951 with the department in accordance with this Subsection (3) before distributing or selling the
952 flavored malt beverage.
953 (4) The department may require a manufacturer of a flavored malt beverage to provide
954 the department with a copy of the following filed with the United States Alcohol and Tobacco
955 Trade and Tax Bureau, pursuant to 27 C.F.R. Sec. 25.55:
956 (a) a statement of process; or
957 (b) a formula.

958 (5) (a) A manufacturer of an alcoholic product that the department is classifying or
959 proposes to classify as a flavored malt beverage may submit evidence to the department that its
960 alcoholic product should not be treated as liquor under this section because the alcoholic
961 product:
962 (i) is obtained by fermentation, infusion, or decoction of a malted grain;
963 (ii) is produced by processing, filtration, or another method of manufacture that is
964 generally recognized as a traditional process in the production of beer as described in 27 C.F.R.
965 Sec. 25.55;
966 (iii) does not have added to it a flavor or other ingredient containing alcohol, except for
967 a hop extract; and
968 (iv) (A) is not one for which the producer is not required to file a formula for approval
969 with the United States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec.
970 25.55; or
971 (B) is exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
972 (b) The department shall review the evidence submitted by the manufacturer under this
973 Subsection (5).
974 (c) The department shall make available to the public on the Internet a list of all
975 alcoholic beverages authorized under this Subsection (5) to be sold as beer in this state.
976 (d) A decision of the department under this Subsection (5) may be appealed to the
977 commission.
978 Section 14. Section 32A-1-804 is enacted to read:
979 32A-1-804. Requirements for labeling and packaging -- Authority of the
980 commission and department.
981 (1) On or after October 1, 2008, a manufacturer may not distribute or sell a malted
982 beverage:
983 (a) unless the label and packaging of the malted beverage:
984 (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
985 (ii) clearly gives notice to the public that the malted beverage is an alcoholic beverage;
986 and
987 (b) until the day on which the department in accordance with this title and rules of the
988 commission approves the label and packaging of the malted beverage.

989 (2) The department shall review the label and packaging of a malted beverage to ensure
990 that the label and packaging meets the requirements of Subsection (1)(a).
991 (3) A manufacturer may comply with the requirement of Subsection (1)(a)(ii) by
992 including on a label and packaging for a malted beverage any of the following terms:
993 (a) beer;
994 (b) ale;
995 (c) porter;
996 (d) stout;
997 (e) lager;
998 (f) lager beer; or
999 (g) another class or type designation commonly applied to a malted beverage that
1000 conveys by a recognized term that the product contains alcohol.
1001 Section 15. Section 32A-1-805 is enacted to read:
1002 32A-1-805. General procedure for approval.
1003 (1) To obtain approval of the label and packaging of a malted beverage, the
1004 manufacturer of the malted beverage shall submit an application to the department for
1005 approval.
1006 (2) The application described in Subsection (1) shall be on a form approved by the
1007 department and include the following:
1008 (a) a copy of a federal certificate of label approval from the Department of Treasury,
1009 Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
1010 approval;
1011 (b) a complete set of original labels for each size of container of the malted beverage;
1012 (c) a description of the size of the container on which a label will be placed;
1013 (d) a description of each type of container of the malted beverage; and
1014 (e) a description of any packaging for the malted beverage.
1015 (3) The department may assess a reasonable fee for reviewing a label and packaging for
1016 approval.
1017 (4) (a) The department shall notify a manufacturer within 30 days after the day on
1018 which the manufacturer submits an application whether the label and packaging is approved or
1019 denied.

1020 (b) If the department determines that an unusual circumstance requires additional time,
1021 the department may extend the time period described in Subsection (4)(a).
1022 (5) A manufacturer shall obtain the approval of the department of a revision of a
1023 previously approved label and packaging before a malted beverage using the revised label and
1024 packaging may be distributed or sold in this state.
1025 (6) (a) The department may revoke a label and packaging previously approved upon a
1026 finding that the label and packaging is not in compliance with this title or rules of the
1027 commission.
1028 (b) The department shall notify the person that applies for the approval of a label and
1029 packaging at least five business days before the day on which a label and packaging approval is
1030 considered revoked.
1031 (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
1032 argument or evidence to the department on why the revocation should not occur.
1033 (7) A manufacturer that applies for approval of a label and packaging may appeal a
1034 denial or revocation of a label and packaging approval to the commission.
1035 Section 16. Section 32A-1-806 is enacted to read:
1036 32A-1-806. Special procedure for flavored malted beverages.
1037 (1) If a flavored malt beverage is labeled or packaged in a manner that is similar to a
1038 label or package used for a nonalcoholic beverage, beginning October 1, 2008, a manufacturer
1039 of the flavored malt beverage may not distribute or sell the flavored malt beverage in this state
1040 until the day on which the manufacturer receives approval of the labeling and packaging from
1041 the department in accordance with:
1042 (a) Sections 32A-1-804 and 32A-1-805 ; and
1043 (b) this section.
1044 (2) The department may not approve the labeling and packaging of a flavored malt
1045 beverage described in Subsection (1) unless in addition to the requirements of Section
1046 32A-1-804 the labeling and packaging complies with the following:
1047 (a) The label on the flavored malt beverage shall bear a prominently displayed label or
1048 a firmly affixed sticker that provides the following information:
1049 (i) the statement:
1050 (A) "alcoholic beverage"; or

1051 (B) "contains alcohol"; and
1052 (ii) the alcohol content of the flavored malt beverage.
1053 (b) Any packaging of the flavored malt beverage shall prominently include, either
1054 imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging, the
1055 statement:
1056 (i) "alcoholic beverage"; or
1057 (ii) "contains alcohol".
1058 (c) A statement required by Subsection (2)(a) or (b) shall appear in a format required
1059 by rule made by the commission in accordance with Title 63, Chapter 46a, Utah Administrative
1060 Rulemaking Act.
1061 (d) A statement of alcohol content required by Subsection (2)(a)(ii):
1062 (i) shall state the alcohol content as a percentage of alcohol by volume or by weight;
1063 (ii) may not use an abbreviation, but shall use the complete words "alcohol," "volume,"
1064 or "weight"; and
1065 (iii) shall be in a format required by rule made by the commission:
1066 (3) The department may reject a label or packaging that appears designed to obscure
1067 the information required by Subsection (2).
1068 (4) To determine whether or not a flavored malt beverage is described in Subsection
1069 (1) and subject to this section, the department may consider in addition to other factors one or
1070 more of the following factors:
1071 (a) whether the coloring, carbonation, and packaging of the flavored malt beverage:
1072 (i) is similar to those of a nonalcoholic beverage or product; or
1073 (ii) can be confused with a nonalcoholic beverage;
1074 (b) whether the flavored malt beverage possesses a character and flavor distinctive
1075 from a traditional malted beverage;
1076 (c) whether the flavored malt beverage is:
1077 (i) prepackaged;
1078 (ii) contains high levels of caffeine and other additives; and
1079 (iii) is marketed as a beverage that is specifically designed to provide energy;
1080 (d) whether the flavored malt beverage contains added sweetener or sugar substitutes;
1081 or

1082 (e) whether the flavored malt beverage contains an added fruit flavor or other flavor
1083 that masks the taste of a traditional malted beverage.
1084 Section 17. Section 32A-1-807 is enacted to read:
1085 32A-1-807. Rulemaking authority.
1086 The commission may adopt rules necessary to implement this part.
1087 Section 18. Section 32A-1-808 is enacted to read:
1088 32A-1-808. Disciplinary proceeding for violation.
1089 A person who violates this part is subject to a disciplinary proceeding under Section
1090 32A-1-119 .
1091 Section 19. Section 32A-1-809 is enacted to read:
1092 32A-1-809. Transition protections.
1093 (1) Except as provided in Subsection (3), a manufacturer of a flavored malt beverage
1094 may not be held liable under this title for distributing or selling a flavored malt beverage as a
1095 beer if:
1096 (a) the flavored malt beverage is distributed or sold on or before September 30, 2008;
1097 and
1098 (b) the manufacturer when distributing or selling the flavored malt beverage complies
1099 with the requirements of this title for distributing or selling a beer including holding:
1100 (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
1101 (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
1102 (2) Except as provided in Subsection (3), a licensee or permittee may not be held liable
1103 for the sale, offering, or furnishing of a flavored malt beverage as a beer if:
1104 (a) the flavored malt beverage is sold, offered, or furnished on or before September 30,
1105 2008; and
1106 (b) the licensee or permittee when selling, offering, or furnishing the flavored malt
1107 beverage complies with the requirements of this title for selling, offering, or furnishing a beer
1108 under the license or permit held by the licensee or permittee.
1109 (3) This section does not apply to liability under Chapter 14a, Alcoholic Beverage
1110 Liability.
1111 Section 20. Section 32A-2-101 is amended to read:
1112 32A-2-101. Commission's power to establish state stores -- Limitations.

1113 (1) (a) The commission may establish state stores in numbers and at places, owned or
1114 leased by the department, [it] the commission considers proper for the sale of liquor, by
1115 employees of the state, in accordance with this title and the rules made under this title.
1116 (b) [Employees of state stores are] An employee of a state store is considered
1117 [employees] an employee of the department and shall meet all qualification requirements for
1118 employment [outlined] in Section 32A-1-111 .
1119 (2) (a) The total number of state stores may not at any time aggregate more than that
1120 number determined by dividing the population of the state by 48,000.
1121 (b) For purposes of this Subsection (2), population shall be determined by:
1122 (i) the most recent United States decennial or special census; or
1123 (ii) [any other] another population determination made by the United States or state
1124 governments.
1125 (3) (a) [A] Except as provided in Subsection (3)(b), a state store may not be
1126 established:
1127 (i) within 600 feet of [any public or private school, church, public library, public
1128 playground, or park] a community location, as measured by the method in Subsection [(4).]
1129 (3)(c); or
1130 [(b) A state store may not be established]
1131 (ii) within 200 feet of [any public or private school, church, public library, public
1132 playground, or park] a community location, measured in a straight line from the nearest
1133 entrance of the proposed state store to the nearest property boundary of the [public or private
1134 school, church, public library, public playground, or park] community location.
1135 [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
1136 following exceptions applies:]
1137 [(i) with] (b) With respect to the establishment of a state store [within a city of the
1138 third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
1139 may authorize a variance that reduces the proximity [requirements] requirement of Subsection
1140 (3)(a)(i) [or (b)] if:
1141 [(A)] (i) the commission finds that alternative locations for establishing a state store in
1142 the community are limited;
1143 [(B)] (ii) a public hearing [has been] is held in the city, town, or county, and where

1144 practical in the neighborhood concerned; [and]
1145 [(C)] (iii) after giving full consideration to all of the attending circumstances and the
1146 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1147 establishing the state store would not be detrimental to the public health, peace, safety, and
1148 welfare of the community; [or] and
1149 [(ii) with respect to the establishment of a state store in any location, the commission
1150 may authorize a variance to reduce the proximity requirements of Subsection (3)(a) or (b) in
1151 relation to a church:]
1152 [(A) if the local governing body of the church in question gives its written consent to
1153 the variance;]
1154 [(B) following a public hearing in the county, and where practical in the neighborhood
1155 concerned; and]
1156 [(C) after giving full consideration to all of the attending circumstances and the
1157 policies stated in Subsections 32A-1-104 (3) and (4).]
1158 [(4) With respect to any public or private school, church, public library, public
1159 playground, or park, the]
1160 (iv) (A) the community location governing authority gives its written consent to the
1161 variance; or
1162 (B) when written consent is not given by the community location governing authority,
1163 the commission finds that:
1164 (I) there is substantial unmet public demand to consume alcohol within the geographic
1165 boundary of the local authority in which the state store is to be located;
1166 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1167 described in Subsection (3)(b)(iv)(B)(I) other than through the establishment of a state store;
1168 and
1169 (III) there is no reasonably viable alternative location within the geographic boundary
1170 of the local authority in which the state store is to be located for establishing a state store to
1171 satisfy the unmet demand described in Subsection (3)(b)(iv)(B)(I).
1172 (c) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
1173 nearest entrance of the state store by following the shortest route of ordinary pedestrian travel
1174 to the property boundary of the [public or private school, church, public library, public

1175 playground, school playground, or park] community location.
1176 [(5)] (4) (a) Nothing in this section prevents the commission from considering the
1177 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1178 reaching a decision on a proposed location.
1179 (b) For purposes of this Subsection [(5)] (4), "educational facility" includes:
1180 (i) a nursery school;
1181 (ii) an infant day care center; and
1182 (iii) a trade and technical school.
1183 Section 21. Section 32A-3-101 is amended to read:
1184 32A-3-101. Commission's power to establish package agencies -- Limitations.
1185 (1) (a) The commission may, when [considered] it considers necessary, create a
1186 package [agencies] agency by entering into a contractual [relationships with persons]
1187 relationship with a person to sell liquor in sealed packages from premises other than those
1188 owned or leased by the state.
1189 (b) The commission shall authorize a person to operate a package agency by issuing a
1190 certificate from the commission that designates the person in charge of the agency as a
1191 "package agent" as defined under Section 32A-1-105 .
1192 (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
1193 any time aggregate more than that number determined by dividing the population of the state
1194 by 18,000.
1195 (b) For purposes of Subsection (2)(a), population shall be determined by:
1196 (i) the most recent United States decennial or special census; or
1197 (ii) [any other] another population determination made by the United States or state
1198 governments.
1199 (c) (i) The commission may establish seasonal package agencies established in areas
1200 the commission considers necessary.
1201 (ii) A seasonal package agency shall be for a period of six consecutive months.
1202 (iii) A package agency established for operation during a summer time period is known
1203 as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency shall:
1204 (A) begin on May 1; and
1205 (B) end on October 31.

1206 (iv) A package agency established for operation during a winter time period is known as
1207 a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency shall:
1208 (A) begin on November 1; and
1209 (B) end on April 30.
1210 (v) In determining the number of package agencies that the commission may establish
1211 under this section:
1212 (A) a seasonal package agency is counted as 1/2 of one package agency; and
1213 (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency.
1214 (d) (i) If the location, design, and construction of a hotel may require more than one
1215 package agency sales location to serve the public convenience, the commission may authorize a
1216 single package agent to sell liquor at as many as three locations within the hotel under one
1217 package agency if:
1218 (A) the hotel has a minimum of 150 guest rooms; and
1219 (B) all locations under the agency are:
1220 (I) within the same hotel facility; and
1221 (II) on premises that are managed or operated and owned or leased by the package
1222 agent.
1223 (ii) [Facilities] A facility other than [hotels] a hotel may not have more than one sales
1224 location under a single package agency.
1225 (3) (a) [As measured by the method in Subsection (4), the] Except as provided in
1226 Subsection (3)(b) or (c), the premises of a package agency may not be established:
1227 (i) within 600 feet of [any public or private school, church, public library, public
1228 playground, or park.] a community location, as measured by the method described in
1229 Subsection (3)(d); or
1230 [(b) The premises of a package agency may not be established]
1231 (ii) within 200 feet of [any public or private school, church, public library, public
1232 playground, or park] a community location, measured in a straight line from the nearest
1233 entrance of the proposed package agency to the nearest property boundary of the [public or
1234 private school, church, public library, public playground, or park] community location.
1235 [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
1236 following exemptions applies:]

1237 [(i) with] (b) With respect to the establishment of a package agency [within a city of
1238 the third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
1239 may authorize a variance to reduce the proximity [requirements] requirement of Subsection
1240 (3)(a)(i) [or (b)] if:
1241 [(A)] (i) the local governing authority [has granted] grants its written consent to the
1242 variance;
1243 [(B)] (ii) the commission finds that alternative locations for establishing a package
1244 agency in the community are limited;
1245 [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
1246 practical in the neighborhood concerned; [and]
1247 [(D)] (iv) after giving full consideration to all of the attending circumstances and the
1248 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1249 establishing the package agency would not be detrimental to the public health, peace, safety,
1250 and welfare of the community; and
1251 [(ii) with respect to the establishment of a package agency in any location, the
1252 commission may authorize a variance to reduce the proximity requirements of Subsection
1253 (3)(a) or (b) in relation to a church:]
1254 [(A) if the local governing body of the church in question gives its written consent to
1255 the variance;]
1256 [(B) following a public hearing in the city, town, or county and where practical in the
1257 neighborhood concerned; and]
1258 [(C) after giving full consideration to all of the attending circumstances and the
1259 policies stated in Subsections 32A-1-104 (3) and (4); or]
1260 (v) (A) the community location governing authority gives its written consent to the
1261 variance; or
1262 (B) when written consent is not given by the community location governing authority,
1263 the commission finds that the applicant has established that:
1264 (I) there is substantial unmet public demand to consume alcohol within the geographic
1265 boundary of the local authority in which the package agency is to be located;
1266 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1267 described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a package

1268 agency; and
1269 (III) there is no reasonably viable alternative location within the geographic boundary
1270 of the local authority in which the package agency is to be located for establishing a package
1271 agency to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
1272 [(iii) with] (c) With respect to the premises of a package agency issued by the
1273 commission that undergoes a change of ownership, the commission may waive or vary the
1274 proximity requirements of Subsection (3)(a) [or (b)] in considering whether to grant a package
1275 agency to the new owner of the premises if:
1276 (A) (I) the premises previously received a variance reducing the proximity
1277 [requirements] requirement of Subsection (3)(a)(i) [or (b)]; or
1278 (II) the premises received a variance reducing the proximity requirement of Subsection
1279 (3)(a)(ii) on or before May 4, 2008; or
1280 (B) a variance from proximity [or distance] requirements was otherwise allowed under
1281 this title.
1282 [(4) With respect to any public or private school, church, public library, public
1283 playground, or park, the]
1284 (d) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
1285 nearest entrance of the package agency by following the shortest route of ordinary pedestrian
1286 travel to the property boundary of the [public or private school, church, public library, public
1287 playground, school playground, or park] community location.
1288 [(5)] (4) (a) Nothing in this section prevents the commission from considering the
1289 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1290 reaching a decision on a proposed location.
1291 (b) For purposes of Subsection [(5)] (4)(a), "educational facility" includes:
1292 (i) a nursery school;
1293 (ii) an infant day care center; and
1294 (iii) a trade and technical school.
1295 [(6)] (5) (a) The package agent, under the direction of the department, [shall be] is
1296 responsible for implementing and enforcing this title and the rules adopted under this title to
1297 the extent they relate to the conduct of the package agency and its sale of liquor.
1298 (b) A package agent may not be, or construed to be, a state employee nor be otherwise

1299 entitled to any benefits of employment from the state.
1300 (c) A package agent, when selling liquor from a package agency, is considered an agent
1301 of the state only to the extent specifically expressed in the package agency agreement.
1302 [(7)] (6) The commission may prescribe by policy, directive, or rule, consistent with
1303 this title, general operational requirements of all package agencies relating to:
1304 (a) physical facilities;
1305 (b) conditions of operation;
1306 (c) hours of operation;
1307 (d) inventory levels;
1308 (e) payment schedules;
1309 (f) methods of payment;
1310 (g) premises security; and
1311 (h) any other matters considered appropriate by the commission.
1312 Section 22. Section 32A-3-102 is amended to read:
1313 32A-3-102. Application requirements.
1314 (1) A person seeking to operate a package agency as a package agent under this chapter
1315 shall file a written application with the department in a form prescribed by the department.
1316 (2) The application shall be accompanied by:
1317 (a) a nonrefundable application fee of $100;
1318 (b) written consent of the local authority;
1319 (c) evidence of proximity to any [public or private school, church, public library,
1320 public playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
1321 Subsections 32A-3-101 (3) and (4), the application shall be processed in accordance with those
1322 subsections] community location, with proximity requirements being governed by Section
1323 32A-3-101 ;
1324 (d) a bond as specified by Section 32A-3-105 ;
1325 (e) a floor plan of the premises, including a description and highlighting of that part of
1326 the premises in which the applicant proposes that the package agency be established;
1327 (f) evidence that the package agency is carrying public liability insurance in an amount
1328 and form satisfactory to the department;
1329 (g) a signed consent form stating that the package agent will permit any authorized

1330 representative of the commission, department, or any law enforcement officer to have
1331 unrestricted right to enter the package agency;
1332 (h) in the case of an applicant that is a partnership, corporation, or limited liability
1333 company, proper verification evidencing that the person or persons signing the package agency
1334 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1335 company; and
1336 (i) any other information as the commission or department may direct.
1337 Section 23. Section 32A-4-101 is amended to read:
1338 32A-4-101. Commission's power to grant licenses -- Limitations.
1339 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1340 shall first obtain a license from the commission as provided in this part.
1341 (2) The commission may issue restaurant liquor licenses for the purpose of establishing
1342 restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
1343 consumption of liquor on premises operated as public restaurants.
1344 (3) (a) Subject to the other provisions of this Subsection (3), the total number of
1345 restaurant liquor licenses may not at any time aggregate more than that number determined by
1346 dividing the population of the state by 5,200.
1347 (b) For purposes of this Subsection (3), population shall be determined by:
1348 (i) the most recent United States decennial or special census; or
1349 (ii) [any other] another population determination made by the United States or state
1350 governments.
1351 (c) (i) The commission may issue seasonal restaurant liquor licenses established in
1352 areas the commission considers necessary.
1353 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
1354 (iii) A restaurant liquor license issued for operation during a summer time period is
1355 known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"
1356 restaurant liquor license shall:
1357 (A) begin on May 1; and
1358 (B) end on October 31.
1359 (iv) A restaurant liquor license issued for operation during a winter time period is
1360 known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"

1361 restaurant liquor license shall:
1362 (A) begin on November 1; and
1363 (B) end on April 30.
1364 (v) In determining the number of restaurant liquor licenses that the commission may
1365 issue under this section:
1366 (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
1367 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1368 (d) (i) If the location, design, and construction of a hotel may require more than one
1369 restaurant liquor sales location within the hotel to serve the public convenience, the
1370 commission may authorize the sale of liquor at as many as three restaurant locations within the
1371 hotel under one license if:
1372 (A) the hotel has a minimum of 150 guest rooms; and
1373 (B) all locations under the license are:
1374 (I) within the same hotel facility; and
1375 (II) on premises that are managed or operated and owned or leased by the licensee.
1376 (ii) [Facilities] A facility other than [hotels] a hotel shall have a separate restaurant
1377 liquor license for each restaurant where liquor is sold.
1378 (4) (a) [The] Except as provided in Subsection (4)(b) or (c), the premises of a
1379 restaurant liquor license may not be established:
1380 (i) within 600 feet of [any public or private school, church, public library, public
1381 playground, or park,] a community location, as measured by the method in Subsection [(5).]
1382 (4)(d);
1383 [(b) The premises of a restaurant liquor license may not be established]
1384 (ii) within 200 feet of [any public or private school, church, public library, public
1385 playground, or park] a community location, measured in a straight line from the nearest
1386 entrance of the proposed outlet to the nearest property boundary of the [public or private
1387 school, church, public library, public playground, or park] community location.
1388 [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
1389 following exemptions applies:]
1390 [(i) with] (b) With respect to the establishment of a restaurant liquor license [in any
1391 location], the commission may authorize a variance to reduce the proximity [requirements]

1392 requirement of Subsection (4)(a)(i) [or (b)] if:
1393 [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
1394 variance;
1395 [(B)] (ii) the commission finds that alternative locations for establishing a restaurant
1396 liquor license in the community are limited;
1397 [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
1398 practical in the neighborhood concerned; [and]
1399 [(D)] (iv) after giving full consideration to all of the attending circumstances and the
1400 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1401 establishing the restaurant liquor license would not be detrimental to the public health, peace,
1402 safety, and welfare of the community; [or] and
1403 (v) (A) the community location governing authority gives its written consent to the
1404 variance; or
1405 (B) when written consent is not given by the community location governing authority,
1406 the commission finds that the applicant has established that:
1407 (I) there is substantial unmet public demand to consume alcohol in a public setting
1408 within the geographic boundary of the local authority in which the restaurant is to be located;
1409 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1410 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1411 liquor license; and
1412 (III) there is no reasonably viable alternative location within the geographic boundary
1413 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1414 license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1415 [(ii) with] (c) With respect to the premises of a restaurant liquor license issued by the
1416 commission that undergoes a change of ownership, the commission may waive or vary the
1417 proximity requirements of Subsection (4)(a) [or (b)] in considering whether to grant a
1418 restaurant liquor license to the new owner of the premises if:
1419 (A) (I) the premises previously received a variance reducing the proximity
1420 [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
1421 (II) the premises received a variance reducing the proximity requirement of Subsection
1422 (4)(a)(ii) on or before May 4, 2008; or

1423 (B) a variance from proximity [or distance] requirements was otherwise allowed under
1424 this title.
1425 [(5) With respect to any public or private school, church, public library, public
1426 playground, or park, the]
1427 (d) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
1428 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1429 [property boundary of the public or private school, church, public library, public playground,
1430 school playground, or park] community location.
1431 [(6)] (5) (a) Nothing in this section prevents the commission from considering the
1432 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1433 reaching a decision on a proposed location.
1434 (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
1435 (i) a nursery school;
1436 (ii) an infant day care center; and
1437 (iii) a trade and technical school.
1438 Section 24. Section 32A-4-102 is amended to read:
1439 32A-4-102. Application and renewal requirements.
1440 (1) A person seeking a restaurant liquor license under this part shall file a written
1441 application with the department, in a form prescribed by the department. It shall be
1442 accompanied by:
1443 (a) a nonrefundable $250 application fee;
1444 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1445 (c) written consent of the local authority;
1446 (d) a copy of the applicant's current business license;
1447 (e) evidence of proximity to any [public or private school, church, public library,
1448 public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
1449 Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
1450 subsections] community location, with proximity requirements being governed by Section
1451 32A-4-101 ;
1452 (f) a bond as specified by Section 32A-4-105 ;
1453 (g) a floor plan of the restaurant, including consumption areas and the area where the

1454 applicant proposes to keep, store, and sell liquor;
1455 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1456 form satisfactory to the department;
1457 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1458 $500,000 per occurrence and $1,000,000 in the aggregate;
1459 (j) a signed consent form stating that the restaurant will permit any authorized
1460 representative of the commission, department, or any law enforcement officer unrestricted right
1461 to enter the restaurant;
1462 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1463 company, proper verification evidencing that the person or persons signing the restaurant
1464 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1465 company; and
1466 (l) any other information the commission or department may require.
1467 (2) (a) All restaurant liquor licenses expire on October 31 of each year.
1468 (b) [Persons] A person desiring to renew [their] the person's restaurant liquor license
1469 shall by no later than September 30 submit:
1470 (i) a completed renewal application to the department; and
1471 (ii) a renewal fee in the following amount:
1472 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1473 under $5,000 $750
1474 equals or exceeds $5,000 but less than $10,000 $900
1475 equals or exceeds $10,000 but less than $25,000 $1,250
1476 equals or exceeds $25,000 $1,500
1477 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1478 the license effective on the date the existing license expires.
1479 (d) [Renewal applications] A renewal application shall be in a form as prescribed by
1480 the department.
1481 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1482 suspend or revoke [any] a restaurant liquor license if the restaurant liquor licensee does not
1483 immediately notify the department of any change in:
1484 (a) ownership of the restaurant;

1485 (b) for a corporate owner, the:
1486 (i) corporate officers or directors; or
1487 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1488 corporation; or
1489 (c) for a limited liability company:
1490 (i) managers; or
1491 (ii) members owning at least 20% of the limited liability company.
1492 Section 25. Section 32A-4-104 is amended to read:
1493 32A-4-104. Commission and department duties before granting licenses.
1494 (1) (a) Before a restaurant liquor license may be granted by the commission, the
1495 department shall conduct an investigation and may hold public hearings for the purpose of
1496 gathering information and making recommendations to the commission as to whether or not a
1497 license should be granted. [This]
1498 (b) The department shall forward the information [shall be forwarded] and
1499 recommendations described in Subsection (1)(a) to the commission to aid in [its] the
1500 commission's determination.
1501 (2) Before issuing [any] a restaurant liquor license, the commission shall:
1502 (a) determine that:
1503 (i) the applicant has complied with all basic qualifications and requirements for making
1504 application for a license as provided by Sections 32A-4-102 and 32A-4-103 [,]; and [that]
1505 (ii) the application is complete;
1506 (b) consider the locality within which the proposed restaurant liquor outlet is located,
1507 including [but not limited to]:
1508 (i) physical characteristics such as:
1509 (A) condition of the premises[,];
1510 (B) square footage[,]; and
1511 (C) parking availability; and
1512 (ii) operational factors such as:
1513 (A) tourist traffic[,];
1514 (B) proximity to and density of other state stores, package agencies, and outlets[,];
1515 (C) demographics[,];

1516 (D) population to be served[,]; and
1517 (E) the extent of and proximity to any [school, church, public library, public
1518 playground, or park] community location;
1519 (c) consider the applicant's ability to manage and operate a restaurant liquor license,
1520 including [but not limited to]:
1521 (i) management experience[,];
1522 (ii) past retail liquor experience[,]; and
1523 (iii) the type of management scheme employed by the restaurant;
1524 (d) consider the nature or type of restaurant operation of the proposed liquor licensee,
1525 including [but not limited to,]:
1526 (i) the type of menu items offered and emphasized[,];
1527 (ii) whether the restaurant emphasizes service to an adult clientele or to minors[,];
1528 (iii) the hours of operation[,];
1529 (iv) the seating capacity of the facility[,]; and
1530 (v) the gross sales of food items; and
1531 (e) consider any other factors or circumstances [it] the commission considers
1532 necessary.
1533 Section 26. Section 32A-4-106 is amended to read:
1534 32A-4-106. Operational restrictions.
1535 [Each] A person granted a restaurant liquor license and the employees and management
1536 &nb