First Substitute S.B. 211

Senator Curtis S. Bramble proposes the following substitute bill:

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 This bill appropriates:
30 . as an ongoing appropriation subject to future budget constraints, $1,589,100 from
31 the Liquor Control Fund for fiscal year 2008-2009 to the Division of Substance
32 Abuse and Mental Health within the Department of Human Services.
33 Other Special Clauses:
34 None
35 Utah Code Sections Affected:
36 AMENDS:
37 32A-1-105, as last amended by Laws of Utah 2007, Chapter 284
38 32A-1-116, as last amended by Laws of Utah 2007, Chapter 284
39 32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
40 32A-1-122, as last amended by Laws of Utah 2007, Chapter 284
41 32A-1-302, as last amended by Laws of Utah 2002, Chapter 161
42 32A-1-304, as last amended by Laws of Utah 2002, Chapter 161
43 32A-2-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
44 32A-3-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
45 32A-3-102, as last amended by Laws of Utah 2003, Chapter 314
46 32A-4-101, as last amended by Laws of Utah 2006, Chapter 162
47 32A-4-102, as last amended by Laws of Utah 2007, Chapter 284
48 32A-4-104, as renumbered and amended by Laws of Utah 1990, Chapter 23
49 32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
50 32A-4-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
51 32A-4-302, as last amended by Laws of Utah 2006, Chapter 162
52 32A-4-303, as last amended by Laws of Utah 2007, Chapter 284
53 32A-4-305, as enacted by Laws of Utah 2003, Chapter 314
54 32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
55 32A-4-401, as last amended by Laws of Utah 2007, Chapter 284
56 32A-4-402, as last amended by Laws of Utah 2007, Chapter 284

57 32A-4-406, as last amended by Laws of Utah 2007, Chapters 284 and 341
58 32A-5-101, as last amended by Laws of Utah 2006, Chapter 162
59 32A-5-102, as last amended by Laws of Utah 2007, Chapter 284
60 32A-5-104, as last amended by Laws of Utah 2003, Chapter 314
61 32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
62 32A-7-101, as last amended by Laws of Utah 2004, Chapter 268
63 32A-7-106, as last amended by Laws of Utah 2007, Chapters 284 and 341
64 32A-8-101, as last amended by Laws of Utah 2003, Chapter 314
65 32A-8-401, as last amended by Laws of Utah 2004, Chapter 268
66 32A-8-501, as last amended by Laws of Utah 2003, Chapter 314
67 32A-8-503, as last amended by Laws of Utah 2004, Chapter 268
68 32A-8-505, as last amended by Laws of Utah 2007, Chapter 284
69 32A-10-101, as last amended by Laws of Utah 2007, Chapter 284
70 32A-10-102, as last amended by Laws of Utah 2007, Chapter 284
71 32A-10-201, as last amended by Laws of Utah 2006, Chapter 162
72 32A-10-202, as last amended by Laws of Utah 2007, Chapter 284
73 32A-10-204, as last amended by Laws of Utah 1991, Chapter 5
74 32A-10-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
75 32A-10-306, as last amended by Laws of Utah 2007, Chapters 284 and 341
76 32A-11-106, as last amended by Laws of Utah 2004, Chapter 268
77 32A-12-212, as last amended by Laws of Utah 2005, Chapter 152
78 32A-12-301, as last amended by Laws of Utah 2006, Chapter 162
79 32A-12-307, as last amended by Laws of Utah 2003, Chapter 314
80 32A-12-603, as last amended by Laws of Utah 2004, Chapter 268
81 53-10-102, as last amended by Laws of Utah 2000, Chapter 1
82 76-5-113, as last amended by Laws of Utah 2004, Chapter 280
83 ENACTS:
84 32A-1-701, Utah Code Annotated 1953
85 32A-1-702, Utah Code Annotated 1953
86 32A-1-703, Utah Code Annotated 1953
87 32A-1-704, Utah Code Annotated 1953

88 32A-1-801, Utah Code Annotated 1953
89 32A-1-802, Utah Code Annotated 1953
90 32A-1-803, Utah Code Annotated 1953
91 32A-1-804, Utah Code Annotated 1953
92 32A-1-805, Utah Code Annotated 1953
93 32A-1-806, Utah Code Annotated 1953
94 32A-1-807, Utah Code Annotated 1953
95 32A-1-808, Utah Code Annotated 1953
96 32A-1-809, Utah Code Annotated 1953
97
98 Be it enacted by the Legislature of the state of Utah:
99 Section 1. Section 32A-1-105 is amended to read:
100 32A-1-105. Definitions.
101 As used in this title:
102 (1) "Airport lounge" means a place of business licensed to sell an alcoholic [beverages]
103 beverage, at retail, for consumption on its premises located at an international airport with a
104 United States Customs office on the premises of the international airport.
105 (2) "Alcoholic [beverages" means "beer" and "liquor"] beverage" means the following
106 as the [terms are] term is defined in this section[.]:
107 (a) beer;
108 (b) flavored malt beverage; and
109 (c) liquor, which on or after October 1, 2008, includes a flavored malt beverage.
110 (3) (a) "Alcoholic [products] product" means [all products] a product that:
111 [(i) contain:]
112 [(A)] (i) contains at least [63/100 of 1%] .5% of alcohol by volume; [or] and
113 [(B) at least 1/2 of 1% by weight; and]
114 (ii) [are] is obtained by fermentation, infusion, decoction, brewing, distillation, or [any]
115 other process that uses [any] liquid or combinations of liquids, whether drinkable or not, to
116 create alcohol in an amount greater than the amount prescribed in Subsection (3)(a)(i).
117 (b) "Alcoholic [products] product" does not include any of the following common
118 items that otherwise come within the definition of an alcoholic [products] product:

119 (i) [extracts] except as provided in Subsection (3)(c), extract;
120 (ii) [vinegars] vinegar;
121 (iii) [ciders] cider;
122 (iv) [essences] essence;
123 (v) [tinctures] tincture;
124 (vi) food [preparations] preparation; or
125 (vii) an over-the-counter [drugs and medicines] drug or medicine.
126 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
127 product when it is used as a flavoring in the manufacturing of an alcoholic product.
128 (4) "Bar" means a counter or similar structure:
129 (a) at which an alcoholic [beverages are] beverage is:
130 (i) stored; or
131 (ii) dispensed; or
132 (b) from which an alcoholic [beverages are] beverage is served.
133 (5) (a) ["Beer"] Subject to Subsection (5)(d), "beer" means [any] a product that:
134 (i) contains [63/100 of 1%] at least .5% of alcohol by volume [or 1/2 of 1% of alcohol
135 by weight], but not more than 4% of alcohol by volume or 3.2% by weight; and
136 (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
137 (b) Beer may or may not contain hops or other vegetable products.
138 (c) Beer includes a product that:
139 (i) contains alcohol in the percentages described in Subsection (5)(a); and
140 (ii) is referred to as:
141 [(A) malt liquor;]
142 [(B) malted beverages; or]
143 [(C) malt coolers.]
144 (A) beer;
145 (B) ale;
146 (C) porter;
147 (D) stout;
148 (E) lager; or
149 (F) a malt or malted beverage.

150 (d) On or after October 1, 2008, "beer" does not include a flavored malt beverage.
151 (6) (a) "Beer retailer" means a business that is:
152 (i) engaged, primarily or incidentally, in the retail sale of beer to [patrons] a patron,
153 whether for consumption on or off the business premises; and
154 (ii) licensed to sell beer by:
155 (A) the commission;
156 (B) a local authority; or
157 (C) both the commission and a local authority.
158 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
159 beer to [patrons] a patron for consumption off the beer retailer's premises.
160 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
161 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to
162 [patrons] a patron for consumption on the beer retailer's premises, regardless of whether the
163 business sells beer for consumption off the beer retailer's premises.
164 (7) "Billboard" means [any] a public display used to advertise including:
165 (a) a light device;
166 (b) a painting;
167 (c) a drawing;
168 (d) a poster;
169 (e) a sign;
170 (f) a signboard; or
171 (g) a scoreboard.
172 (8) "Brewer" means [any] a person engaged in manufacturing:
173 (a) beer[.];
174 (b) heavy beer; or
175 (c) a flavored malt beverage.
176 (9) "Cash bar" means the service of an alcoholic [beverages] beverage:
177 (a) at:
178 (i) a banquet; or
179 (ii) a temporary event for which a permit is issued under this title; and
180 (b) if an attendee at the banquet or temporary event is charged for the alcoholic

181 beverage.
182 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
183 a bus company to a group of persons pursuant to a common purpose:
184 (a) under a single contract;
185 (b) at a fixed charge in accordance with the bus company's tariff; and
186 (c) for the purpose of giving the group of persons the exclusive use of the passenger
187 bus, coach, or other motor vehicle and a driver to travel together to [a] one or more specified
188 [destination or] destinations.
189 (11) "Church" means a building:
190 (a) set apart for the purpose of worship;
191 (b) in which religious services are held;
192 (c) with which clergy is associated; and
193 (d) which is tax exempt under the laws of this state.
194 (12) "Club" and "private club" means any of the following organized primarily for the
195 benefit of its members:
196 (a) a social club;
197 (b) a recreational association;
198 (c) a fraternal association;
199 (d) an athletic association; or
200 (e) a kindred association.
201 (13) "Commission" means the Alcoholic Beverage Control Commission.
202 (14) "Community location" means:
203 (a) a public or private school;
204 (b) a church;
205 (c) a public library;
206 (d) a public playground; or
207 (e) a public park.
208 (15) "Community location governing authority" means:
209 (a) the governing body of the community location; or
210 (b) a person who appears to the commission to have been given on behalf of the
211 community location authority to prohibit an activity at the community location.

212 [(14)] (16) "Department" means the Department of Alcoholic Beverage Control.
213 (17) "Director," unless the context requires otherwise, means the director appointed
214 under Section 32A-1-108 .
215 [(15)] (18) "Distressed merchandise" means [any] an alcoholic beverage in the
216 possession of the department that is saleable, but for some reason is unappealing to the public.
217 (19) "Flavored malt beverage" means a beverage:
218 (a) that contains at least .5% alcohol by volume;
219 (b) that is treated by processing, filtration, or another method of manufacture that is not
220 generally recognized as a traditional process in the production of a beer as described in 27
221 C.F.R. Sec. 25.55;
222 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
223 extract; and
224 (d) (i) for which the producer is required to file a formula for approval with the United
225 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
226 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
227 [(16)] (20) "Guest" means a person accompanied by an active member or visitor of a
228 club who enjoys only those privileges derived from the host for the duration of the visit to the
229 club.
230 [(17)] (21) (a) "Heavy beer" means [any] a product that:
231 (i) contains more than 4% alcohol by volume; and
232 (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
233 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
234 [(18)] (22) "Hosted bar" means the service of an alcoholic [beverages] beverage:
235 (a) without charge; and
236 (b) at a:
237 (i) banquet; or
238 (ii) privately hosted event.
239 [(19)] (23) "Identification card" means [the] an identification card issued under Title
240 53, Chapter 3, Part 8, Identification Card Act.
241 [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
242 an alcoholic beverage is prohibited by:

243 (a) law; or
244 (b) court order.
245 [(21)] (25) "Intoxicated" means that to a degree that is unlawful under Section
246 76-9-701 a person is under the influence of:
247 (a) an alcoholic beverage;
248 (b) a controlled substance;
249 (c) a substance having the property of releasing toxic vapors; or
250 (d) a combination of Subsections [(21)] (25)(a) through (c).
251 [(22)] (26) "Licensee" means [any] a person issued a license by the commission to sell,
252 manufacture, store, or allow consumption of an alcoholic [beverages] beverage on premises
253 owned or controlled by the person.
254 [(23)] (27) "Limousine" means [any] a motor vehicle licensed by the state or a local
255 authority, other than a bus or taxicab:
256 (a) in which the driver and [passengers] a passenger are separated by a partition, glass,
257 or other barrier; and
258 (b) that is provided by a company to [an individual or] one or more individuals at a
259 fixed charge in accordance with the company's tariff for the purpose of giving the [individual
260 or] one or more individuals the exclusive use of the limousine and a driver to travel to [a] one
261 or more specified [destination or] destinations.
262 [(24)] (28) (a) (i) "Liquor" means alcohol, or [any] an alcoholic, spirituous, vinous,
263 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
264 vinous, or fermented, [and all other drinks] or other drink, or drinkable [liquids] liquid that
265 [contain more than 1/2 of 1% of]:
266 (A) contains at least .5% alcohol by volume; and
267 (B) is suitable to use for beverage purposes.
268 (ii) On or after October 1, 2008, "liquor" includes a flavored malt beverage.
269 (b) "Liquor" does not include [any] a beverage defined as a beer[, malt liquor, or
270 malted beverage that has an alcohol content of less than 4% alcohol by volume].
271 [(25)] (29) "Local authority" means:
272 (a) the governing body of the county if the premises are located in an unincorporated
273 area of a county; or

274 (b) the governing body of the city or town if the premises are located in an incorporated
275 city or a town.
276 [(26)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
277 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
278 others.
279 [(27)] (31) "Member" means a person who, after paying regular dues, has full
280 privileges of a club under this title.
281 [(28)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,
282 center, or homeport facility for [any] a ship:
283 (i) (A) under the control of the United States Department of Defense; or
284 (B) of the National Guard;
285 (ii) that is located within the state; and
286 (iii) including [any] a leased facility.
287 (b) "Military installation" does not include [any] a facility used primarily for:
288 (i) civil works;
289 (ii) rivers and harbors projects; or
290 (iii) flood control projects.
291 [(29)] (33) "Minor" means [any person] an individual under the age of 21 years.
292 [(30)] (34) "Nude," "nudity," or "state of nudity" means:
293 (a) the appearance of:
294 (i) the nipple or areola of a female human breast;
295 (ii) a human genital;
296 (iii) a human pubic area; or
297 (iv) a human anus; or
298 (b) a state of dress that fails to opaquely cover:
299 (i) the nipple or areola of a female human breast;
300 (ii) a human genital;
301 (iii) a human pubic area; or
302 (iv) a human anus.
303 [(31)] (35) "Outlet" means a location other than a state store or package agency where
304 an alcoholic [beverages are] beverage is sold pursuant to a license issued by the commission.

305 [(32)] (36) "Package" means any of the following containing liquor:
306 (a) a container;
307 (b) a bottle;
308 (c) a vessel; or
309 (d) other receptacle.
310 [(33)] (37) "Package agency" means a retail liquor location operated:
311 (a) under a contractual agreement with the department[,]; and
312 (b) by a person:
313 (i) other than the state[,]; and
314 (ii) who is authorized by the commission to sell package liquor for consumption off the
315 premises of the package agency.
316 [(34)] (38) "Package agent" means [any] a person permitted by the commission to
317 operate a package agency pursuant to a contractual agreement with the department to sell liquor
318 from premises that the package agent shall provide and maintain.
319 [(35)] (39) "Permittee" means [any] a person issued a permit by the commission to
320 perform [acts] an act or exercise [privileges] a privilege as specifically granted in the permit.
321 [(36)] (40) "Person" means [any] an individual, partnership, firm, corporation, limited
322 liability company, association, business trust, or other form of business enterprise, including a
323 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
324 more limited meaning is disclosed by the context.
325 [(37)] (41) "Premises" means [any] a building, enclosure, room, or equipment used in
326 connection with the sale, storage, service, manufacture, distribution, or consumption of an
327 alcoholic [products] product, unless otherwise defined in this title or in the rules adopted by the
328 commission.
329 [(38)] (42) "Prescription" means a writing in legal form, signed by a physician or
330 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
331 [(39)] (43) (a) "Privately hosted event" or "private social function" means a specific
332 social, business, or recreational event:
333 (i) for which an entire room, area, or hall [has been] is leased or rented[,] in advance by
334 an identified group[,]; and [the event or function]
335 (ii) that is limited in attendance to people who [have been] are specifically designated

336 and their guests.
337 (b) "Privately hosted event" and "private social function" does not include [events or
338 functions] an event to which the general public is invited, whether for an admission fee or not.
339 [(40)] (44) "Proof of age" means:
340 (a) an identification card;
341 (b) an identification that:
342 (i) is substantially similar to an identification card;
343 (ii) is issued in accordance with the laws of a state other than Utah in which the
344 identification is issued;
345 (iii) includes date of birth; and
346 (iv) has a picture affixed;
347 (c) a valid driver license certificate that:
348 (i) includes date of birth;
349 (ii) has a picture affixed; and
350 (iii) is issued:
351 (A) under Title 53, Chapter 3, Uniform Driver License Act; or
352 (B) in accordance with the laws of the state in which it is issued;
353 (d) a military identification card that:
354 (i) includes date of birth; and
355 (ii) has a picture affixed; or
356 (e) a valid passport.
357 [(41)] (45) (a) "Public building" means [any] a building or permanent structure owned
358 or leased by the state, a county, or local government entity that is used for:
359 (i) public education;
360 (ii) transacting public business; or
361 (iii) regularly conducting government activities.
362 (b) "Public building" does not mean or refer to [any] a building owned by the state or a
363 county or local government entity when the building is used by [anyone] a person, in whole or
364 in part, for a proprietary [functions] function.
365 [(42)] (46) "Representative" means an individual who is compensated by salary,
366 commission, or [any] other means for representing and selling [the] an alcoholic beverage

367 [products] product of a manufacturer, supplier, or importer of liquor[,] including:
368 (a) wine[, or];
369 (b) heavy beer; or
370 (c) on or after October 1, 2008, a flavored malt beverage.
371 [(43)] (47) "Residence" means [the] a person's principal place of abode within Utah.
372 [(44)] (48) "Restaurant" means [any] a business establishment:
373 (a) where a variety of foods is prepared and complete meals are served to the general
374 public;
375 (b) located on a premises having adequate culinary fixtures for food preparation and
376 dining accommodations; and
377 (c) that is engaged primarily in serving meals to the general public.
378 [(45)] (49) "Retailer" means [any] a person engaged in the sale or distribution of an
379 alcoholic [beverages] beverage to [the] a consumer.
380 [(46)] (50) (a) "Sample" includes:
381 (i) a department sample; and
382 (ii) an industry representative sample.
383 (b) "Department sample" means liquor[, wine, and heavy beer] that [has been] is placed
384 in the possession of the department for testing, analysis, and sampling including:
385 (i) wine;
386 (ii) heavy beer; or
387 (iii) on or after October 1, 2008, a flavored malt beverage.
388 (c) "Industry representative sample" means liquor[, wine, and heavy beer] that [has
389 been] is placed in the possession of the department:
390 (i) for testing, analysis, and sampling by a local industry [representatives]
391 representative on the premises of the department to educate the local industry [representatives]
392 representative of the quality and characteristics of the product[.]; and
393 (ii) including:
394 (A) wine;
395 (B) heavy beer; or
396 (C) on or after October 1, 2008, a flavored malt beverage.
397 [(47)] (51) (a) "School" means [any] a building used primarily for the general

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

429 (iii) an agent of the licensee described in Subsection [(50)] (54)(b); or
430 (iv) otherwise of the licensee described in Subsection [(50)] (54)(b).
431 [(51)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels
432 of beer [and], heavy beer, and flavored malt beverages per year.
433 [(52)] (56) (a) "Spirituous liquor" means liquor that is distilled.
434 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
435 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
436 [(53)] (57) (a) "State label" means the official label designated by the commission
437 affixed to [all] a liquor [containers] container sold in the state.
438 (b) "State label" includes the department identification mark and inventory control
439 number.
440 [(54)] (58) (a) "State store" means a facility for the sale of package liquor:
441 (i) located on premises owned or leased by the state; and
442 (ii) operated by one or more state employees.
443 (b) "State store" does not apply to [any] a:
444 (i) licensee;
445 (ii) permittee; or
446 (iii) package agency.
447 [(55)] (59) "Supplier" means [any] a person selling an alcoholic [beverages] beverage
448 to the department.
449 [(56)] (60) (a) "Tavern" means [any] a business establishment that is:
450 (i) engaged primarily in the retail sale of beer to a public [patrons] patron for
451 consumption on the establishment's premises; and
452 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
453 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
454 revenue of the sale of food, although food need not be sold in the establishment:
455 (i) a beer bar;
456 (ii) a parlor;
457 (iii) a lounge;
458 (iv) a cabaret; or
459 (v) a nightclub.

460 [(57)] (61) "Temporary domicile" means the principal place of abode within Utah of a
461 person who does not have a present intention to continue residency within Utah permanently or
462 indefinitely.
463 [(58)] (62) "Unsaleable liquor merchandise" means merchandise that:
464 (a) is unsaleable because the merchandise is:
465 (i) unlabeled;
466 (ii) leaky;
467 (iii) damaged;
468 (iv) difficult to open; or
469 (v) partly filled;
470 (b) is in a container:
471 (i) having faded labels or defective caps or corks;
472 (ii) in which the contents are:
473 (A) cloudy;
474 (B) spoiled; or
475 (C) chemically determined to be impure; or
476 (iii) that contains:
477 (A) sediment; or
478 (B) [any] a foreign substance; or
479 (c) is otherwise considered by the department as unfit for sale.
480 [(59)] (63) "Visitor" means an individual that in accordance with Section 32A-5-107
481 holds limited privileges in a private club by virtue of a visitor card.
482 [(60)] (64) "Warehouser" means [any] a person, other than a licensed manufacturer,
483 engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
484 [(61)] (65) (a) "Wholesaler" means [any] a person engaged in the importation for sale,
485 or in the sale of beer in wholesale or jobbing quantities to one or more retailers[, other than a].
486 (b) Notwithstanding Subsection (65)(a), "wholesaler" does not include a small brewer
487 selling beer manufactured by that brewer.
488 [(62)] (66) (a) "Wine" means [any] an alcoholic beverage obtained by the fermentation
489 of the natural sugar content of fruits, plants, honey, or milk, or [any] other like substance,
490 whether or not [other ingredients are] another ingredient is added.

491 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
492 provided in this title.
493 Section 2. Section 32A-1-116 is amended to read:
494 32A-1-116. Purchase of liquor.
495 (1) The department may not purchase or stock spirituous liquor in [containers] a
496 container smaller than 200 milliliters except as otherwise allowed by the commission.
497 (2) (a) Each order by the department for the purchase of spirituous liquor, wine, [or]
498 heavy beer, or flavored malt beverage, or any cancellation by the department of an order for
499 spirituous liquor, wine, [or] heavy beer, or flavored malt beverage:
500 (i) shall be executed in writing by the department; and
501 (ii) is not valid or binding unless executed in writing.
502 (b) A copy of each order or cancellation shall be kept on file by the department for at
503 least three years.
504 (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
505 Chapter 4, Uniform Electronic Transactions Act.
506 Section 3. Section 32A-1-119 is amended to read:
507 32A-1-119. Disciplinary proceedings -- Procedure.
508 (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
509 an adjudicative proceeding permitted under this title:
510 (i) against:
511 (A) a permittee;
512 (B) a licensee;
513 (C) a manufacturer;
514 (D) a supplier;
515 (E) an importer;
516 (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
517 or
518 (G) an officer, employee, or agent of:
519 (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
520 (II) a package agent; and
521 (ii) that is brought on the basis of a violation of this title.

522 (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
523 final unappealable judgment or order has been issued.
524 (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
525 necessary and proper for the administration of this title and rules adopted under this title:
526 (i) the commission;
527 (ii) a hearing examiner appointed by the commission for the purposes provided in
528 Subsection 32A-1-107 (3);
529 (iii) the director; and
530 (iv) the department.
531 (b) Except as provided in this section or Section 32A-3-106 , the following shall
532 comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
533 Procedures Act, in adjudicative proceedings:
534 (i) the commission;
535 (ii) a hearing examiner appointed by the commission;
536 (iii) the director; and
537 (iv) the department.
538 (c) Except where otherwise provided by law, all adjudicative proceedings before the
539 commission or its appointed hearing examiner shall be:
540 (i) video or audio recorded; and
541 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
542 Open and Public Meetings Act.
543 (d) [All adjudicative proceedings] An adjudicative proceeding concerning departmental
544 personnel shall be conducted in accordance with Title 67, Chapter 19, Utah State Personnel
545 Management Act.
546 (e) [All hearings that are] A hearing that is informational, fact gathering, and
547 nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures
548 promulgated by the commission, director, or department.
549 (3) (a) A disciplinary proceeding shall be conducted under the authority of the
550 commission, which is responsible for rendering a final decision and order on any disciplinary
551 matter.
552 (b) (i) Nothing in this section precludes the commission from appointing necessary

553 officers, including hearing examiners, from within or without the department, to administer the
554 disciplinary proceeding process.
555 (ii) A hearing examiner appointed by the commission:
556 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
557 (B) shall submit to the commission a report including:
558 (I) findings of fact determined on the basis of a preponderance of the evidence
559 presented at the hearing;
560 (II) conclusions of law; and
561 (III) recommendations.
562 (c) Nothing in this section precludes the commission, after the commission has
563 rendered its final decision and order, from having the director prepare, issue, and cause to be
564 served on the parties the final written order on behalf of the commission.
565 (4) (a) The department may initiate a disciplinary proceeding described in Subsection
566 (4)(b) when the department receives:
567 (i) a report from any government agency, peace officer, examiner, or investigator
568 alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
569 the rules of the commission;
570 (ii) a final adjudication of criminal liability against any person listed in Subsections
571 (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
572 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
573 Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
574 violation of this title.
575 (b) The department may initiate a disciplinary proceeding if the department receives an
576 item listed in Subsection (4)(a) to determine:
577 (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
578 or rules of the commission; and
579 (ii) if a violation is found, the appropriate sanction to be imposed.
580 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
581 (i) if required by law;
582 (ii) before revoking or suspending any permit, license, or certificate of approval issued
583 under this title; or

584 (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A)
585 through (G).
586 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
587 hearing after receiving proper notice is an admission of the charged violation.
588 (c) The validity of a disciplinary proceeding is not affected by the failure of any person
589 to attend or remain in attendance.
590 (d) All disciplinary proceeding hearings shall be presided over by the commission or an
591 appointed hearing examiner.
592 (e) A disciplinary proceeding hearing may be closed only after the commission or
593 hearing examiner makes a written finding that the public interest in an open hearing is clearly
594 outweighed by factors enumerated in the closure order.
595 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
596 hearing may:
597 (A) administer oaths or affirmations;
598 (B) take evidence;
599 (C) take depositions within or without this state; and
600 (D) require by subpoena from any place within this state:
601 (I) the testimony of any person at a hearing; and
602 (II) the production of any books, records, papers, contracts, agreements, documents, or
603 other evidence considered relevant to the inquiry.
604 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
605 produce any books, papers, documents, or tangible things as required in the subpoena.
606 (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
607 privilege against self-incrimination may not be compelled to testify, but the commission or the
608 hearing examiner shall file a written report with the county attorney or district attorney in the
609 jurisdiction where the privilege was claimed or where the witness resides setting forth the
610 circumstance of the claimed privilege.
611 (iv) (A) A person is not excused from obeying a subpoena without just cause.
612 (B) Any district court within the judicial district in which a person alleged to be guilty
613 of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
614 by the party issuing the subpoena, may issue an order requiring the person to:

615 (I) appear before the issuing party; and
616 (II) (Aa) produce documentary evidence if so ordered; or
617 (Bb) give evidence regarding the matter in question.
618 (C) Failure to obey an order of the court may be punished by the court as contempt.
619 (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
620 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
621 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
622 recommend a penalty more severe than that initially sought by the department in the notice of
623 agency action.
624 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
625 shall be served upon the respective parties.
626 (iv) The respondent and the department shall be given reasonable opportunity to file
627 any written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
628 before final commission action.
629 (h) In all cases heard by the commission, it shall issue its final decision and order in
630 accordance with Subsection (3).
631 (6) (a) The commission shall:
632 (i) render a final decision and order on any disciplinary action; and
633 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
634 (b) [Any] An order of the commission is considered final on the date the order
635 becomes effective.
636 (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
637 through (G) has committed a violation of this title or the commission's rules, in accordance
638 with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
639 (i) suspend or revoke the permit, license, or certificate of approval;
640 (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
641 (iii) assess the administrative costs of any disciplinary proceeding to the permittee, the
642 licensee, or certificate holder; or
643 (iv) any combination of Subsections (6)(c)(i) through (iii).
644 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
645 32A-1-107 (1)(p) and (4).

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

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

708 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
709 Entertainment Act;
710 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
711 of the respondent;
712 (D) interfering or refusing to cooperate with:
713 (I) an authorized official of the department or the state in the discharge of the official's
714 duties in relation to the enforcement of this title; or
715 (II) a peace officer in the discharge of the peace officer's duties in relation to the
716 enforcement of this title;
717 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
718 (F) unlawful importation of alcoholic products; or
719 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
720 32A-12-601 (2), to any person other than the department or a military installation, except to the
721 extent permitted by this title; or
722 (iii) the department determines to seek in a disciplinary proceeding hearing:
723 (A) an administrative fine exceeding $3,000;
724 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
725 or
726 (C) a revocation of a license, permit, or certificate of approval.
727 (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
728 Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
729 Section 4. Section 32A-1-122 is amended to read:
730 32A-1-122. Liquor prices -- School lunch program.
731 (1) For purposes of this section:
732 (a) "Landed case cost" means:
733 (i) the cost of the product; and
734 (ii) inbound shipping costs incurred by the department.
735 (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
736 of the department to a state store.
737 (2) (a) Except as provided in Subsections (2)(b) and (c), [all] spirituous liquor and
738 wine sold by the department within the state shall be marked up in an amount not less than

739 86% above the landed case cost to the department.
740 (b) [All spirituous] Spirituous liquor and wine sold by the department to a military
741 [installations] installation in Utah shall be marked up in an amount not less than 15% above the
742 landed case cost to the department.
743 (c) If a wine manufacturer producing less than 20,000 gallons of wine in any calendar
744 year, as verified by the department pursuant to federal or other verifiable production reports,
745 first applies to the department for a reduced markup, all wine produced by the wine
746 manufacturer and sold to the department shall be marked up by the department in an amount
747 not less than 47% above the landed case cost to the department.
748 (3) (a) Except as provided in Subsection (3)(b), [all] heavy beer sold by the department
749 within the state shall be marked up in an amount not less than 64.5% above the landed case
750 cost to the department.
751 (b) [All heavy] Heavy beer sold by the department to a military [installations]
752 installation in Utah shall be marked up in an amount not less than 15% above the landed case
753 cost to the department.
754 (4) (a) Except as provided in Subsection (4)(b), a flavored malt beverage sold by the
755 department within the state shall be marked up in an amount not less than 86% above the
756 landed case cost to the department.
757 (b) A flavored malt beverage sold by the department to a military installation in Utah
758 shall be marked up in an amount not less than 15% above the landed case cost to the
759 department.
760 [(4)] (5) Ten percent of the total gross revenue from sales of [spiritous] spirituous
761 liquor, wine, [and] heavy beer, and flavored malt beverages shall be deposited by the
762 department with the state treasurer and credited to the Uniform School Fund to be used to
763 support the school lunch program administered by the State Board of Education under Section
764 53A-19-201 .
765 [(5)] (6) Nothing in this section prohibits the department from selling discontinued
766 items at a discount.
767 Section 5. Section 32A-1-302 is amended to read:
768 32A-1-302. Presentation of proof of age upon request.
769 (1) To obtain one or more of the following, a person shall present proof of age at the

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

801 (3) A person may not be subject to a penalty for a violation of this part if it is proved to
802 the commission or the court hearing the matter that the person charged with the violation acted
803 in good faith.
804 Section 7. Section 32A-1-701 is enacted to read:
805 Part 7. Criminal Background Check Act
806 32A-1-701. Title.
807 This part is known as the "Criminal Background Check Act."
808 Section 8. Section 32A-1-702 is enacted to read:
809 32A-1-702. Requirement for a criminal background check.
810 (1) The department shall require an individual listed in Subsection (2) to, in accordance
811 with this part:
812 (a) submit a fingerprint card in a form acceptable to the department; and
813 (b) consent to a fingerprint criminal background check by:
814 (i) the Utah Bureau of Criminal Identification; and
815 (ii) the Federal Bureau of Investigation.
816 (2) The following shall comply with Subsection (1):
817 (a) an individual applying for employment with the department;
818 (b) an individual applying to the commission to operate a package agency;
819 (c) an individual applying to the commission for a license;
820 (d) an individual who with regard to an entity that is applying to the commission to
821 operate a package agency or for a license is:
822 (i) a partner;
823 (ii) a managing agent;
824 (iii) a manager;
825 (iv) an officer;
826 (v) a director;
827 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
828 corporation;
829 (vii) a member who owns at least 20% of a limited liability company; or
830 (viii) an individual employed to act in a supervisory or managerial capacity; or
831 (e) an individual who becomes involved in an entity listed in Subsection (2)(b) or (c) in

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

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

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

925 Part 8. Malted Beverages Act
926 32A-1-801. Title.
927 This part is known as the "Malted Beverages Act."
928 Section 12. Section 32A-1-802 is enacted to read:
929 32A-1-802. Definitions.
930 As used in this part:
931 (1) "Malted beverages means:
932 (a) beer;
933 (b) a flavored malt beverage; and
934 (c) heavy beer.
935 (2) "Packaging" means the outer packaging that is visible to a consumer such as a
936 carton, case, or other wrapper of a container.
937 Section 13. Section 32A-1-803 is enacted to read:
938 32A-1-803. Power of the commission and department to classify flavored malted
939 beverages.
940 (1) The commission and department shall beginning on October 1, 2008, regulate a
941 flavored malt beverage as liquor.
942 (2) (a) By no later than October 1, 2008, the department shall make available to the
943 public on the Internet a list of all flavored malt beverages authorized to be sold in this state as
944 liquor.
945 (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
946 (3) (a) Beginning on August 1, 2008, a manufacturer shall file, under penalty of
947 perjury, a report with the department listing each flavored malt beverage manufactured by the
948 manufacturer that the manufacturer wants to distribute in this state on or after October 1, 2008,
949 subject to the manufacturer holding:
950 (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
951 (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
952 (b) On or after October 1, 2008, a manufacturer may not distribute or sell in this state a
953 flavored malt beverage if the manufacturer does not list the flavored malt beverage in a filing
954 with the department in accordance with this Subsection (3) before distributing or selling the
955 flavored malt beverage.

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

987 (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
988 (ii) clearly gives notice to the public that the malted beverage is an alcoholic beverage;
989 and
990 (b) until the day on which the department in accordance with this title and rules of the
991 commission approves the label and packaging of the malted beverage.
992 (2) The department shall review the label and packaging of a malted beverage to ensure
993 that the label and packaging meets the requirements of Subsection (1)(a).
994 (3) A manufacturer may comply with the requirement of Subsection (1)(a)(ii) by
995 including on a label and packaging for a malted beverage any of the following terms:
996 (a) beer;
997 (b) ale;
998 (c) porter;
999 (d) stout;
1000 (e) lager;
1001 (f) lager beer; or
1002 (g) another class or type designation commonly applied to a malted beverage that
1003 conveys by a recognized term that the product contains alcohol.
1004 Section 15. Section 32A-1-805 is enacted to read:
1005 32A-1-805. General procedure for approval.
1006 (1) To obtain approval of the label and packaging of a malted beverage, the
1007 manufacturer of the malted beverage shall submit an application to the department for
1008 approval.
1009 (2) The application described in Subsection (1) shall be on a form approved by the
1010 department and include the following:
1011 (a) a copy of a federal certificate of label approval from the Department of Treasury,
1012 Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
1013 approval;
1014 (b) a complete set of original labels for each size of container of the malted beverage;
1015 (c) a description of the size of the container on which a label will be placed;
1016 (d) a description of each type of container of the malted beverage; and
1017 (e) a description of any packaging for the malted beverage.

1018 (3) The department may assess a reasonable fee for reviewing a label and packaging for
1019 approval.
1020 (4) (a) The department shall notify a manufacturer within 30 days after the day on
1021 which the manufacturer submits an application whether the label and packaging is approved or
1022 denied.
1023 (b) If the department determines that an unusual circumstance requires additional time,
1024 the department may extend the time period described in Subsection (4)(a).
1025 (5) A manufacturer shall obtain the approval of the department of a revision of a
1026 previously approved label and packaging before a malted beverage using the revised label and
1027 packaging may be distributed or sold in this state.
1028 (6) (a) The department may revoke a label and packaging previously approved upon a
1029 finding that the label and packaging is not in compliance with this title or rules of the
1030 commission.
1031 (b) The department shall notify the person that applies for the approval of a label and
1032 packaging at least five business days before the day on which a label and packaging approval is
1033 considered revoked.
1034 (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
1035 argument or evidence to the department on why the revocation should not occur.
1036 (7) A manufacturer that applies for approval of a label and packaging may appeal a
1037 denial or revocation of a label and packaging approval to the commission.
1038 Section 16. Section 32A-1-806 is enacted to read:
1039 32A-1-806. Special procedure for flavored malted beverages.
1040 (1) If a flavored malt beverage is labeled or packaged in a manner that is similar to a
1041 label or package used for a nonalcoholic beverage, beginning October 1, 2008, a manufacturer
1042 of the flavored malt beverage may not distribute or sell the flavored malt beverage in this state
1043 until the day on which the manufacturer receives approval of the labeling and packaging from
1044 the department in accordance with:
1045 (a) Sections 32A-1-804 and 32A-1-805 ; and
1046 (b) this section.
1047 (2) The department may not approve the labeling and packaging of a flavored malt
1048 beverage described in Subsection (1) unless in addition to the requirements of Section

1049 32A-1-804 the labeling and packaging complies with the following:
1050 (a) The label on the flavored malt beverage shall bear a prominently displayed label or
1051 a firmly affixed sticker that provides the following information:
1052 (i) the statement:
1053 (A) "alcoholic beverage"; or
1054 (B) "contains alcohol"; and
1055 (ii) the alcohol content of the flavored malt beverage.
1056 (b) Any packaging of the flavored malt beverage shall prominently include, either
1057 imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging, the
1058 statement:
1059 (i) "alcoholic beverage"; or
1060 (ii) "contains alcohol".
1061 (c) A statement required by Subsection (2)(a) or (b) shall appear in a format required
1062 by rule made by the commission in accordance with Title 63, Chapter 46a, Utah Administrative
1063 Rulemaking Act.
1064 (d) A statement of alcohol content required by Subsection (2)(a)(ii):
1065 (i) shall state the alcohol content as a percentage of alcohol by volume or by weight;
1066 (ii) may not use an abbreviation, but shall use the complete words "alcohol," "volume,"
1067 or "weight"; and
1068 (iii) shall be in a format required by rule made by the commission:
1069 (3) The department may reject a label or packaging that appears designed to obscure
1070 the information required by Subsection (2).
1071 (4) To determine whether or not a flavored malt beverage is described in Subsection
1072 (1) and subject to this section, the department may consider in addition to other factors one or
1073 more of the following factors:
1074 (a) whether the coloring, carbonation, and packaging of the flavored malt beverage:
1075 (i) is similar to those of a nonalcoholic beverage or product; or
1076 (ii) can be confused with a nonalcoholic beverage;
1077 (b) whether the flavored malt beverage possesses a character and flavor distinctive
1078 from a traditional malted beverage;
1079 (c) whether the flavored malt beverage is:

1080 (i) prepackaged;
1081 (ii) contains high levels of caffeine and other additives; and
1082 (iii) is marketed as a beverage that is specifically designed to provide energy;
1083 (d) whether the flavored malt beverage contains added sweetener or sugar substitutes;
1084 or
1085 (e) whether the flavored malt beverage contains an added fruit flavor or other flavor
1086 that masks the taste of a traditional malted beverage.
1087 Section 17. Section 32A-1-807 is enacted to read:
1088 32A-1-807. Rulemaking authority.
1089 The commission may adopt rules necessary to implement this part.
1090 Section 18. Section 32A-1-808 is enacted to read:
1091 32A-1-808. Disciplinary proceeding for violation.
1092 A person who violates this part is subject to a disciplinary proceeding under Section
1093 32A-1-119 .
1094 Section 19. Section 32A-1-809 is enacted to read:
1095 32A-1-809. Transition protections.
1096 (1) Except as provided in Subsection (3), a manufacturer of a flavored malt beverage
1097 may not be held liable under this title for distributing or selling a flavored malt beverage as a
1098 beer if:
1099 (a) the flavored malt beverage is distributed or sold on or before September 30, 2008;
1100 and
1101 (b) the manufacturer when distributing or selling the flavored malt beverage complies
1102 with the requirements of this title for distributing or selling a beer including holding:
1103 (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
1104 (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
1105 (2) Except as provided in Subsection (3), a licensee or permittee may not be held liable
1106 for the sale, offering, or furnishing of a flavored malt beverage as a beer if:
1107 (a) the flavored malt beverage is sold, offered, or furnished on or before September 30,
1108 2008; and
1109 (b) the licensee or permittee when selling, offering, or furnishing the flavored malt
1110 beverage complies with the requirements of this title for selling, offering, or furnishing a beer

1111 under the license or permit held by the licensee or permittee.
1112 (3) This section does not apply to liability under Chapter 14a, Alcoholic Beverage
1113 Liability.
1114 Section 20. Section 32A-2-101 is amended to read:
1115 32A-2-101. Commission's power to establish state stores -- Limitations.
1116 (1) (a) The commission may establish state stores in numbers and at places, owned or
1117 leased by the department, [it] the commission considers proper for the sale of liquor, by
1118 employees of the state, in accordance with this title and the rules made under this title.
1119 (b) [Employees of state stores are] An employee of a state store is considered
1120 [employees] an employee of the department and shall meet all qualification requirements for
1121 employment [outlined] in Section 32A-1-111 .
1122 (2) (a) The total number of state stores may not at any time aggregate more than that
1123 number determined by dividing the population of the state by 48,000.
1124 (b) For purposes of this Subsection (2), population shall be determined by:
1125 (i) the most recent United States decennial or special census; or
1126 (ii) [any other] another population determination made by the United States or state
1127 governments.
1128 (3) (a) [A] Except as provided in Subsection (3)(b), a state store may not be
1129 established:
1130 (i) within 600 feet of [any public or private school, church, public library, public
1131 playground, or park] a community location, as measured by the method in Subsection [(4).]
1132 (3)(c); or
1133 [(b) A state store may not be established]
1134 (ii) within 200 feet of [any public or private school, church, public library, public
1135 playground, or park] a community location, measured in a straight line from the nearest
1136 entrance of the proposed state store to the nearest property boundary of the [public or private
1137 school, church, public library, public playground, or park] community location.
1138 [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
1139 following exceptions applies:]
1140 [(i) with] (b) With respect to the establishment of a state store [within a city of the
1141 third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission

1142 may authorize a variance that reduces the proximity [requirements] requirement of Subsection
1143 (3)(a)(i) [or (b)] if:
1144 [(A)] (i) the commission finds that alternative locations for establishing a state store in
1145 the community are limited;
1146 [(B)] (ii) a public hearing [has been] is held in the city, town, or county, and where
1147 practical in the neighborhood concerned; [and]
1148 [(C)] (iii) after giving full consideration to all of the attending circumstances and the
1149 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1150 establishing the state store would not be detrimental to the public health, peace, safety, and
1151 welfare of the community; [or] and
1152 [(ii) with respect to the establishment of a state store in any location, the commission
1153 may authorize a variance to reduce the proximity requirements of Subsection (3)(a) or (b) in
1154 relation to a church:]
1155 [(A) if the local governing body of the church in question gives its written consent to
1156 the variance;]
1157 [(B) following a public hearing in the county, and where practical in the neighborhood
1158 concerned; and]
1159 [(C) after giving full consideration to all of the attending circumstances and the
1160 policies stated in Subsections 32A-1-104 (3) and (4).]
1161 [(4) With respect to any public or private school, church, public library, public
1162 playground, or park, the]
1163 (iv) (A) the community location governing authority gives its written consent to the
1164 variance; or
1165 (B) when written consent is not given by the community location governing authority,
1166 the commission finds that:
1167 (I) there is substantial unmet public demand to consume alcohol within the geographic
1168 boundary of the local authority in which the state store is to be located;
1169 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1170 described in Subsection (3)(b)(iv)(B)(I) other than through the establishment of a state store;
1171 and
1172 (III) there is no reasonably viable alternative location within the geographic boundary

1173 of the local authority in which the state store is to be located for establishing a state store to
1174 satisfy the unmet demand described in Subsection (3)(b)(iv)(B)(I).
1175 (c) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
1176 nearest entrance of the state store by following the shortest route of ordinary pedestrian travel
1177 to the property boundary of the [public or private school, church, public library, public
1178 playground, school playground, or park] community location.
1179 [(5)] (4) (a) Nothing in this section prevents the commission from considering the
1180 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1181 reaching a decision on a proposed location.
1182 (b) For purposes of this Subsection [(5)] (4), "educational facility" includes:
1183 (i) a nursery school;
1184 (ii) an infant day care center; and
1185 (iii) a trade and technical school.
1186 Section 21. Section 32A-3-101 is amended to read:
1187 32A-3-101. Commission's power to establish package agencies -- Limitations.
1188 (1) (a) The commission may, when [considered] it considers necessary, create a
1189 package [agencies] agency by entering into a contractual [relationships with persons]
1190 relationship with a person to sell liquor in sealed packages from premises other than those
1191 owned or leased by the state.
1192 (b) The commission shall authorize a person to operate a package agency by issuing a
1193 certificate from the commission that designates the person in charge of the agency as a
1194 "package agent" as defined under Section 32A-1-105 .
1195 (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
1196 any time aggregate more than that number determined by dividing the population of the state
1197 by 18,000.
1198 (b) For purposes of Subsection (2)(a), population shall be determined by:
1199 (i) the most recent United States decennial or special census; or
1200 (ii) [any other] another population determination made by the United States or state
1201 governments.
1202 (c) (i) The commission may establish seasonal package agencies established in areas
1203 the commission considers necessary.

1204 (ii) A seasonal package agency shall be for a period of six consecutive months.
1205 (iii) A package agency established for operation during a summer time period is known
1206 as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency shall:
1207 (A) begin on May 1; and
1208 (B) end on October 31.
1209 (iv) A package agency established for operation during a winter time period is known as
1210 a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency shall:
1211 (A) begin on November 1; and
1212 (B) end on April 30.
1213 (v) In determining the number of package agencies that the commission may establish
1214 under this section:
1215 (A) a seasonal package agency is counted as 1/2 of one package agency; and
1216 (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency.
1217 (d) (i) If the location, design, and construction of a hotel may require more than one
1218 package agency sales location to serve the public convenience, the commission may authorize a
1219 single package agent to sell liquor at as many as three locations within the hotel under one
1220 package agency if:
1221 (A) the hotel has a minimum of 150 guest rooms; and
1222 (B) all locations under the agency are:
1223 (I) within the same hotel facility; and
1224 (II) on premises that are managed or operated and owned or leased by the package
1225 agent.
1226 (ii) [Facilities] A facility other than [hotels] a hotel may not have more than one sales
1227 location under a single package agency.
1228 (3) (a) [As measured by the method in Subsection (4), the] Except as provided in
1229 Subsection (3)(b) or (c), the premises of a package agency may not be established:
1230 (i) within 600 feet of [any public or private school, church, public library, public
1231 playground, or park.] a community location, as measured by the method described in
1232 Subsection (3)(d); or
1233 [(b) The premises of a package agency may not be established]
1234 (ii) within 200 feet of [any public or private school, church, public library, public

1235 playground, or park] a community location, measured in a straight line from the nearest
1236 entrance of the proposed package agency to the nearest property boundary of the [public or
1237 private school, church, public library, public playground, or park] community location.
1238 [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
1239 following exemptions applies:]
1240 [(i) with] (b) With respect to the establishment of a package agency [within a city of
1241 the third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
1242 may authorize a variance to reduce the proximity [requirements] requirement of Subsection
1243 (3)(a)(i) [or (b)] if:
1244 [(A)] (i) the local governing authority [has granted] grants its written consent to the
1245 variance;
1246 [(B)] (ii) the commission finds that alternative locations for establishing a package
1247 agency in the community are limited;
1248 [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
1249 practical in the neighborhood concerned; [and]
1250 [(D)] (iv) after giving full consideration to all of the attending circumstances and the
1251 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1252 establishing the package agency would not be detrimental to the public health, peace, safety,
1253 and welfare of the community; and
1254 [(ii) with respect to the establishment of a package agency in any location, the
1255 commission may authorize a variance to reduce the proximity requirements of Subsection
1256 (3)(a) or (b) in relation to a church:]
1257 [(A) if the local governing body of the church in question gives its written consent to
1258 the variance;]
1259 [(B) following a public hearing in the city, town, or county and where practical in the
1260 neighborhood concerned; and]
1261 [(C) after giving full consideration to all of the attending circumstances and the
1262 policies stated in Subsections 32A-1-104 (3) and (4); or]
1263 (v) (A) the community location governing authority gives its written consent to the
1264 variance; or
1265 (B) when written consent is not given by the community location governing authority,

1266 the commission finds that the applicant has established that:
1267 (I) there is substantial unmet public demand to consume alcohol within the geographic
1268 boundary of the local authority in which the package agency is to be located;
1269 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1270 described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a package
1271 agency; and
1272 (III) there is no reasonably viable alternative location within the geographic boundary
1273 of the local authority in which the package agency is to be located for establishing a package
1274 agency to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
1275 [(iii) with] (c) With respect to the premises of a package agency issued by the
1276 commission that undergoes a change of ownership, the commission may waive or vary the
1277 proximity requirements of Subsection (3)(a) [or (b)] in considering whether to grant a package
1278 agency to the new owner of the premises if:
1279 (i) (A) the premises previously received a variance reducing the proximity
1280 [requirements] requirement of Subsection (3)(a)(i) [or (b)]; or
1281 (B) the premises received a variance reducing the proximity requirement of Subsection
1282 (3)(a)(ii) on or before May 4, 2008; or
1283 [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
1284 under this title.
1285 [(4) With respect to any public or private school, church, public library, public
1286 playground, or park, the]
1287 (d) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
1288 nearest entrance of the package agency by following the shortest route of ordinary pedestrian
1289 travel to the property boundary of the [public or private school, church, public library, public
1290 playground, school playground, or park] community location.
1291 [(5)] (4) (a) Nothing in this section prevents the commission from considering the
1292 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1293 reaching a decision on a proposed location.
1294 (b) For purposes of Subsection [(5)] (4)(a), "educational facility" includes:
1295 (i) a nursery school;
1296 (ii) an infant day care center; and

1297 (iii) a trade and technical school.
1298 [(6)] (5) (a) The package agent, under the direction of the department, [shall be] is
1299 responsible for implementing and enforcing this title and the rules adopted under this title to
1300 the extent they relate to the conduct of the package agency and its sale of liquor.
1301 (b) A package agent may not be, or construed to be, a state employee nor be otherwise
1302 entitled to any benefits of employment from the state.
1303 (c) A package agent, when selling liquor from a package agency, is considered an agent
1304 of the state only to the extent specifically expressed in the package agency agreement.
1305 [(7)] (6) The commission may prescribe by policy, directive, or rule, consistent with
1306 this title, general operational requirements of all package agencies relating to:
1307 (a) physical facilities;
1308 (b) conditions of operation;
1309 (c) hours of operation;
1310 (d) inventory levels;
1311 (e) payment schedules;
1312 (f) methods of payment;
1313 (g) premises security; and
1314 (h) any other matters considered appropriate by the commission.
1315 Section 22. Section 32A-3-102 is amended to read:
1316 32A-3-102. Application requirements.
1317 (1) A person seeking to operate a package agency as a package agent under this chapter
1318 shall file a written application with the department in a form prescribed by the department.
1319 (2) The application shall be accompanied by:
1320 (a) a nonrefundable application fee of $100;
1321 (b) written consent of the local authority;
1322 (c) evidence of proximity to any [public or private school, church, public library,
1323 public playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
1324 Subsections 32A-3-101 (3) and (4), the application shall be processed in accordance with those
1325 subsections] community location, with proximity requirements being governed by Section
1326 32A-3-101 ;
1327 (d) a bond as specified by Section 32A-3-105 ;

1328 (e) a floor plan of the premises, including a description and highlighting of that part of
1329 the premises in which the applicant proposes that the package agency be established;
1330 (f) evidence that the package agency is carrying public liability insurance in an amount
1331 and form satisfactory to the department;
1332 (g) a signed consent form stating that the package agent will permit any authorized
1333 representative of the commission, department, or any law enforcement officer to have
1334 unrestricted right to enter the package agency;
1335 (h) in the case of an applicant that is a partnership, corporation, or limited liability
1336 company, proper verification evidencing that the person or persons signing the package agency
1337 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1338 company; and
1339 (i) any other information as the commission or department may direct.
1340 Section 23. Section 32A-4-101 is amended to read:
1341 32A-4-101. Commission's power to grant licenses -- Limitations.
1342 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1343 shall first obtain a license from the commission as provided in this part.
1344 (2) The commission may issue restaurant liquor licenses for the purpose of establishing
1345 restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
1346 consumption of liquor on premises operated as public restaurants.
1347 (3) (a) Subject to the other provisions of this Subsection (3), the total number of
1348 restaurant liquor licenses may not at any time aggregate more than that number determined by
1349 dividing the population of the state by 5,200.
1350 (b) For purposes of this Subsection (3), population shall be determined by:
1351 (i) the most recent United States decennial or special census; or
1352 (ii) [any other] another population determination made by the United States or state
1353 governments.
1354 (c) (i) The commission may issue seasonal restaurant liquor licenses established in
1355 areas the commission considers necessary.
1356 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
1357 (iii) A restaurant liquor license issued for operation during a summer time period is
1358 known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"

1359 restaurant liquor license shall:
1360 (A) begin on May 1; and
1361 (B) end on October 31.
1362 (iv) A restaurant liquor license issued for operation during a winter time period is
1363 known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
1364 restaurant liquor license shall:
1365 (A) begin on November 1; and
1366 (B) end on April 30.
1367 (v) In determining the number of restaurant liquor licenses that the commission may
1368 issue under this section:
1369 (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
1370 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1371 (d) (i) If the location, design, and construction of a hotel may require more than one
1372 restaurant liquor sales location within the hotel to serve the public convenience, the
1373 commission may authorize the sale of liquor at as many as three restaurant locations within the
1374 hotel under one license if:
1375 (A) the hotel has a minimum of 150 guest rooms; and
1376 (B) all locations under the license are:
1377 (I) within the same hotel facility; and
1378 (II) on premises that are managed or operated and owned or leased by the licensee.
1379 (ii) [Facilities] A facility other than [hotels] a hotel shall have a separate restaurant
1380 liquor license for each restaurant where liquor is sold.
1381 (4) (a) [The] Except as provided in Subsection (4)(b) or (c), the premises of a
1382 restaurant liquor license may not be established:
1383 (i) within 600 feet of [any public or private school, church, public library, public
1384 playground, or park,] a community location, as measured by the method in Subsection [(5).]
1385 (4)(d);
1386 [(b) The premises of a restaurant liquor license may not be established]
1387 (ii) within 200 feet of [any public or private school, church, public library, public
1388 playground, or park] a community location, measured in a straight line from the nearest
1389 entrance of the proposed outlet to the nearest property boundary of the [public or private

1390 school, church, public library, public playground, or park] community location.
1391 [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
1392 following exemptions applies:]
1393 [(i) with] (b) With respect to the establishment of a restaurant liquor license [in any
1394 location], the commission may authorize a variance to reduce the proximity [requirements]
1395 requirement of Subsection (4)(a)(i) [or (b)] if:
1396 [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
1397 variance;
1398 [(B)] (ii) the commission finds that alternative locations for establishing a restaurant
1399 liquor license in the community are limited;
1400 [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
1401 practical in the neighborhood concerned; [and]
1402 [(D)] (iv) after giving full consideration to all of the attending circumstances and the
1403 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1404 establishing the restaurant liquor license would not be detrimental to the public health, peace,
1405 safety, and welfare of the community; [or] and
1406 (v) (A) the community location governing authority gives its written consent to the
1407 variance; or
1408 (B) when written consent is not given by the community location governing authority,
1409 the commission finds that the applicant has established that:
1410 (I) there is substantial unmet public demand to consume alcohol in a public setting
1411 within the geographic boundary of the local authority in which the restaurant is to be located;
1412 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1413 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1414 liquor license; and
1415 (III) there is no reasonably viable alternative location within the geographic boundary
1416 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1417 license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1418 [(ii) with] (c) With respect to the premises of a restaurant liquor license issued by the
1419 commission that undergoes a change of ownership, the commission may waive or vary the
1420 proximity requirements of Subsection (4)(a) [or (b)] in considering whether to grant a

1421 restaurant liquor license to the new owner of the premises if:
1422 (i) (A) the premises previously received a variance reducing the proximity
1423 [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
1424 (B) the premises received a variance reducing the proximity requirement of Subsection
1425 (4)(a)(ii) on or before May 4, 2008; or
1426 [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
1427 under this title.
1428 [(5) With respect to any public or private school, church, public library, public
1429 playground, or park, the]
1430 (d) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
1431 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1432 [property boundary of the public or private school, church, public library, public playground,
1433 school playground, or park] community location.
1434 [(6)] (5) (a) Nothing in this section prevents the commission from considering the
1435 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1436 reaching a decision on a proposed location.
1437 (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
1438 (i) a nursery school;
1439 (ii) an infant day care center; and
1440 (iii) a trade and technical school.
1441 Section 24. Section 32A-4-102 is amended to read:
1442 32A-4-102. Application and renewal requirements.
1443 (1) A person seeking a restaurant liquor license under this part shall file a written
1444 application with the department, in a form prescribed by the department. It shall be
1445 accompanied by:
1446 (a) a nonrefundable $250 application fee;
1447 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1448 (c) written consent of the local authority;
1449 (d) a copy of the applicant's current business license;
1450 (e) evidence of proximity to any [public or private school, church, public library,
1451 public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of

1452 Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
1453 subsections] community location, with proximity requirements being governed by Section
1454 32A-4-101 ;
1455 (f) a bond as specified by Section 32A-4-105 ;
1456 (g) a floor plan of the restaurant, including consumption areas and the area where the
1457 applicant proposes to keep, store, and sell liquor;
1458 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1459 form satisfactory to the department;
1460 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1461 $500,000 per occurrence and $1,000,000 in the aggregate;
1462 (j) a signed consent form stating that the restaurant will permit any authorized
1463 representative of the commission, department, or any law enforcement officer unrestricted right
1464 to enter the restaurant;
1465 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1466 company, proper verification evidencing that the person or persons signing the restaurant
1467 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1468 company; and
1469 (l) any other information the commission or department may require.
1470 (2) (a) All restaurant liquor licenses expire on October 31 of each year.
1471 (b) [Persons] A person desiring to renew [their] the person's restaurant liquor license
1472 shall by no later than September 30 submit:
1473 (i) a completed renewal application to the department; and
1474 (ii) a renewal fee in the following amount:
1475 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1476 under $5,000 $750
1477 equals or exceeds $5,000 but less than $10,000 $900
1478 equals or exceeds $10,000 but less than $25,000 $1,250
1479 equals or exceeds $25,000 $1,500
1480 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1481 the license effective on the date the existing license expires.
1482 (d) [Renewal applications] A renewal application shall be in a form as prescribed by

1483 the department.
1484 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1485 suspend or revoke [any] a restaurant liquor license if the restaurant liquor licensee does not
1486 immediately notify the department of any change in:
1487 (a) ownership of the restaurant;
1488 (b) for a corporate owner, the:
1489 (i) corporate officers or directors; or
1490 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1491 corporation; or
1492 (c) for a limited liability company:
1493 (i) managers; or
1494 (ii) members owning at least 20% of the limited liability company.
1495 Section 25. Section 32A-4-104 is amended to read:
1496 32A-4-104. Commission and department duties before granting licenses.
1497 (1) (a) Before a restaurant liquor license may be granted by the commission, the
1498 department shall conduct an investigation and may hold public hearings for the purpose of
1499 gathering information and making recommendations to the commission as to whether or not a
1500 license should be granted. [This]
1501 (b) The department shall forward the information [shall be forwarded] and
1502 recommendations described in Subsection (1)(a) to the commission to aid in [its] the
1503 commission's determination.
1504 (2) Before issuing [any] a restaurant liquor license, the commission shall:
1505 (a) determine that:
1506 (i) the applicant has complied with all basic qualifications and requirements for making
1507 application for a license as provided by Sections 32A-4-102 and 32A-4-103 [,]; and [that]
1508 (ii) the application is complete;
1509 (b) consider the locality within which the proposed restaurant liquor outlet is located,
1510 including [but not limited to]:
1511 (i) physical characteristics such as:
1512 (A) condition of the premises[,];
1513 (B) square footage[,]; and

1514 (C) parking availability; and
1515 (ii) operational factors such as:
1516 (A) tourist traffic[,];
1517 (B) proximity to and density of other state stores, package agencies, and outlets[,];
1518 (C) demographics[,];
1519 (D) population to be served[,]; and
1520 (E) the extent of and proximity to any [school, church, public library, public
1521 playground, or park] community location;
1522 (c) consider the applicant's ability to manage and operate a restaurant liquor license,
1523 including [but not limited to]:
1524 (i) management experience[,];
1525 (ii) past retail liquor experience[,]; and
1526 (iii) the type of management scheme employed by the restaurant;
1527 (d) consider the nature or type of restaurant operation of the proposed liquor licensee,
1528 including [but not limited to,]:
1529 (i) the type of menu items offered and emphasized[,];
1530 (ii) whether the restaurant emphasizes service to an adult clientele or to minors[,];
1531 (iii) the hours of operation[,];
1532 (iv) the seating capacity of the facility[,]; and
1533 (v) the gross sales of food items; and
1534 (e) consider any other factors or circumstances [it] the commission considers
1535 necess