Second 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: Stephen H. Urquhart
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 . addresses the dispensing of spirituous liquor;
24 . addresses the amount of spirituous liquor that may be before a patron or attendee;
25 . prohibits conduct related to controlled substances and drug paraphernalia;

26 . modifies requirements related to price lists and private clubs;
27 . establishes requirements related to the display of beer;
28 . expands provisions prohibiting operation without a license or permit; and
29 . makes technical and conforming amendments.
30 Monies Appropriated in this Bill:
31 This bill appropriates:
32 . as an ongoing appropriation subject to future budget constraints, $1,589,100 from
33 the Liquor Control Fund for fiscal year 2008-2009 to the Division of Substance
34 Abuse and Mental Health within the Department of Human Services.
35 Other Special Clauses:
36 None
37 Utah Code Sections Affected:
38 AMENDS:
39 32A-1-105, as last amended by Laws of Utah 2007, Chapter 284
40 32A-1-116, as last amended by Laws of Utah 2007, Chapter 284
41 32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
42 32A-1-122, as last amended by Laws of Utah 2007, Chapter 284
43 32A-1-302, as last amended by Laws of Utah 2002, Chapter 161
44 32A-1-304, as last amended by Laws of Utah 2002, Chapter 161
45 32A-2-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
46 32A-3-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
47 32A-3-102, as last amended by Laws of Utah 2003, Chapter 314
48 32A-4-101, as last amended by Laws of Utah 2006, Chapter 162
49 32A-4-102, as last amended by Laws of Utah 2007, Chapter 284
50 32A-4-104, as renumbered and amended by Laws of Utah 1990, Chapter 23
51 32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
52 32A-4-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
53 32A-4-302, as last amended by Laws of Utah 2006, Chapter 162
54 32A-4-303, as last amended by Laws of Utah 2007, Chapter 284
55 32A-4-305, as enacted by Laws of Utah 2003, Chapter 314
56 32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341

57 32A-4-401, as last amended by Laws of Utah 2007, Chapter 284
58 32A-4-402, as last amended by Laws of Utah 2007, Chapter 284
59 32A-4-406, as last amended by Laws of Utah 2007, Chapters 284 and 341
60 32A-5-101, as last amended by Laws of Utah 2006, Chapter 162
61 32A-5-102, as last amended by Laws of Utah 2007, Chapter 284
62 32A-5-104, as last amended by Laws of Utah 2003, Chapter 314
63 32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
64 32A-7-101, as last amended by Laws of Utah 2004, Chapter 268
65 32A-7-106, as last amended by Laws of Utah 2007, Chapters 284 and 341
66 32A-8-101, as last amended by Laws of Utah 2003, Chapter 314
67 32A-8-401, as last amended by Laws of Utah 2004, Chapter 268
68 32A-8-501, as last amended by Laws of Utah 2003, Chapter 314
69 32A-8-503, as last amended by Laws of Utah 2004, Chapter 268
70 32A-8-505, as last amended by Laws of Utah 2007, Chapter 284
71 32A-10-101, as last amended by Laws of Utah 2007, Chapter 284
72 32A-10-102, as last amended by Laws of Utah 2007, Chapter 284
73 32A-10-201, as last amended by Laws of Utah 2006, Chapter 162
74 32A-10-202, as last amended by Laws of Utah 2007, Chapter 284
75 32A-10-204, as last amended by Laws of Utah 1991, Chapter 5
76 32A-10-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
77 32A-10-306, as last amended by Laws of Utah 2007, Chapters 284 and 341
78 32A-11-106, as last amended by Laws of Utah 2004, Chapter 268
79 32A-12-212, as last amended by Laws of Utah 2005, Chapter 152
80 32A-12-222, as last amended by Laws of Utah 2004, Chapter 268
81 32A-12-301, as last amended by Laws of Utah 2006, Chapter 162
82 32A-12-307, as last amended by Laws of Utah 2003, Chapter 314
83 32A-12-603, as last amended by Laws of Utah 2004, Chapter 268
84 53-10-102, as last amended by Laws of Utah 2000, Chapter 1
85 76-5-113, as last amended by Laws of Utah 2004, Chapter 280
86 ENACTS:
87 32A-1-701, Utah Code Annotated 1953

88 32A-1-702, Utah Code Annotated 1953
89 32A-1-703, Utah Code Annotated 1953
90 32A-1-704, Utah Code Annotated 1953
91 32A-1-801, Utah Code Annotated 1953
92 32A-1-802, Utah Code Annotated 1953
93 32A-1-803, Utah Code Annotated 1953
94 32A-1-804, Utah Code Annotated 1953
95 32A-1-805, Utah Code Annotated 1953
96 32A-1-806, Utah Code Annotated 1953
97 32A-1-807, Utah Code Annotated 1953
98 32A-1-808, Utah Code Annotated 1953
99 32A-1-809, Utah Code Annotated 1953
100
101 Be it enacted by the Legislature of the state of Utah:
102 Section 1. Section 32A-1-105 is amended to read:
103 32A-1-105. Definitions.
104 As used in this title:
105 (1) "Airport lounge" means a place of business licensed to sell an alcoholic [beverages]
106 beverage, at retail, for consumption on its premises located at an international airport with a
107 United States Customs office on the premises of the international airport.
108 (2) "Alcoholic [beverages" means "beer" and "liquor"] beverage" means the following
109 as the [terms are] term is defined in this section[.]:
110 (a) beer;
111 (b) flavored malt beverage; and
112 (c) liquor, which on or after October 1, 2008, includes a flavored malt beverage.
113 (3) (a) "Alcoholic [products] product" means [all products] a product that:
114 [(i) contain:]
115 [(A)] (i) contains at least [63/100 of 1%] .5% of alcohol by volume; [or] and
116 [(B) at least 1/2 of 1% by weight; and]
117 (ii) [are] is obtained by fermentation, infusion, decoction, brewing, distillation, or [any]
118 other process that uses [any] liquid or combinations of liquids, whether drinkable or not, to

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

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

181 (i) a banquet; or
182 (ii) a temporary event for which a permit is issued under this title; and
183 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
184 beverage.
185 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
186 a bus company to a group of persons pursuant to a common purpose:
187 (a) under a single contract;
188 (b) at a fixed charge in accordance with the bus company's tariff; and
189 (c) for the purpose of giving the group of persons the exclusive use of the passenger
190 bus, coach, or other motor vehicle and a driver to travel together to [a] one or more specified
191 [destination or] destinations.
192 (11) "Church" means a building:
193 (a) set apart for the purpose of worship;
194 (b) in which religious services are held;
195 (c) with which clergy is associated; and
196 (d) which is tax exempt under the laws of this state.
197 (12) "Club" and "private club" means any of the following organized primarily for the
198 benefit of its members:
199 (a) a social club;
200 (b) a recreational association;
201 (c) a fraternal association;
202 (d) an athletic association; or
203 (e) a kindred association.
204 (13) "Commission" means the Alcoholic Beverage Control Commission.
205 (14) (a) Subject to Subsection (14)(b), "community location" means:
206 (i) a public or private school;
207 (ii) a church;
208 (iii) a public library;
209 (iv) a public playground; or
210 (v) a public park.
211 (b) For purposes of a 200 feet proximity requirement under this title measured in a

212 straight line to the nearest property boundary of a public library, "community location" does not
213 include a public library that is:
214 (i) located in:
215 (A) a city and a county of the first class; and
216 (B) an area that is zoned for commercial use; and
217 (ii) as of May 5, 2008, listed in the National Register of Historic Places as provided for
218 in 16 U.S.C. Sec. 470a.
219 (15) "Community location governing authority" means:
220 (a) the governing body of the community location; or
221 (b) a person who appears to the commission to have been given on behalf of the
222 community location authority to prohibit an activity at the community location.
223 [(14)] (16) "Department" means the Department of Alcoholic Beverage Control.
224 (17) "Director," unless the context requires otherwise, means the director appointed
225 under Section 32A-1-108 .
226 [(15)] (18) "Distressed merchandise" means [any] an alcoholic beverage in the
227 possession of the department that is saleable, but for some reason is unappealing to the public.
228 (19) "Flavored malt beverage" means a beverage:
229 (a) that contains at least .5% alcohol by volume;
230 (b) that is treated by processing, filtration, or another method of manufacture that is not
231 generally recognized as a traditional process in the production of a beer as described in 27
232 C.F.R. Sec. 25.55;
233 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
234 extract; and
235 (d) (i) for which the producer is required to file a formula for approval with the United
236 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
237 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
238 [(16)] (20) "Guest" means a person accompanied by an active member or visitor of a
239 club who enjoys only those privileges derived from the host for the duration of the visit to the
240 club.
241 [(17)] (21) (a) "Heavy beer" means [any] a product that:
242 (i) contains more than 4% alcohol by volume; and

243 (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
244 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
245 [(18)] (22) "Hosted bar" means the service of an alcoholic [beverages] beverage:
246 (a) without charge; and
247 (b) at a:
248 (i) banquet; or
249 (ii) privately hosted event.
250 [(19)] (23) "Identification card" means [the] an identification card issued under Title
251 53, Chapter 3, Part 8, Identification Card Act.
252 [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
253 an alcoholic beverage is prohibited by:
254 (a) law; or
255 (b) court order.
256 [(21)] (25) "Intoxicated" means that to a degree that is unlawful under Section
257 76-9-701 a person is under the influence of:
258 (a) an alcoholic beverage;
259 (b) a controlled substance;
260 (c) a substance having the property of releasing toxic vapors; or
261 (d) a combination of Subsections [(21)] (25)(a) through (c).
262 [(22)] (26) "Licensee" means [any] a person issued a license by the commission to sell,
263 manufacture, store, or allow consumption of an alcoholic [beverages] beverage on premises
264 owned or controlled by the person.
265 [(23)] (27) "Limousine" means [any] a motor vehicle licensed by the state or a local
266 authority, other than a bus or taxicab:
267 (a) in which the driver and [passengers] a passenger are separated by a partition, glass,
268 or other barrier; and
269 (b) that is provided by a company to [an individual or] one or more individuals at a
270 fixed charge in accordance with the company's tariff for the purpose of giving the [individual
271 or] one or more individuals the exclusive use of the limousine and a driver to travel to [a] one
272 or more specified [destination or] destinations.
273 [(24)] (28) (a) (i) "Liquor" means alcohol, or [any] an alcoholic, spirituous, vinous,

274 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
275 vinous, or fermented, [and all other drinks] or other drink, or drinkable [liquids] liquid that
276 [contain more than 1/2 of 1% of]:
277 (A) contains at least .5% alcohol by volume; and
278 (B) is suitable to use for beverage purposes.
279 (ii) On or after October 1, 2008, "liquor" includes a flavored malt beverage.
280 (b) "Liquor" does not include [any] a beverage defined as a beer[, malt liquor, or
281 malted beverage that has an alcohol content of less than 4% alcohol by volume].
282 [(25)] (29) "Local authority" means:
283 (a) the governing body of the county if the premises are located in an unincorporated
284 area of a county; or
285 (b) the governing body of the city or town if the premises are located in an incorporated
286 city or a town.
287 [(26)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
288 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
289 others.
290 [(27)] (31) "Member" means a person who, after paying regular dues, has full
291 privileges of a club under this title.
292 [(28)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,
293 center, or homeport facility for [any] a ship:
294 (i) (A) under the control of the United States Department of Defense; or
295 (B) of the National Guard;
296 (ii) that is located within the state; and
297 (iii) including [any] a leased facility.
298 (b) "Military installation" does not include [any] a facility used primarily for:
299 (i) civil works;
300 (ii) rivers and harbors projects; or
301 (iii) flood control projects.
302 [(29)] (33) "Minor" means [any person] an individual under the age of 21 years.
303 [(30)] (34) "Nude," "nudity," or "state of nudity" means:
304 (a) the appearance of:

305 (i) the nipple or areola of a female human breast;
306 (ii) a human genital;
307 (iii) a human pubic area; or
308 (iv) a human anus; or
309 (b) a state of dress that fails to opaquely cover:
310 (i) the nipple or areola of a female human breast;
311 (ii) a human genital;
312 (iii) a human pubic area; or
313 (iv) a human anus.
314 [(31)] (35) "Outlet" means a location other than a state store or package agency where
315 an alcoholic [beverages are] beverage is sold pursuant to a license issued by the commission.
316 [(32)] (36) "Package" means any of the following containing liquor:
317 (a) a container;
318 (b) a bottle;
319 (c) a vessel; or
320 (d) other receptacle.
321 [(33)] (37) "Package agency" means a retail liquor location operated:
322 (a) under a contractual agreement with the department[,]; and
323 (b) by a person:
324 (i) other than the state[,]; and
325 (ii) who is authorized by the commission to sell package liquor for consumption off the
326 premises of the package agency.
327 [(34)] (38) "Package agent" means [any] a person permitted by the commission to
328 operate a package agency pursuant to a contractual agreement with the department to sell liquor
329 from premises that the package agent shall provide and maintain.
330 [(35)] (39) "Permittee" means [any] a person issued a permit by the commission to
331 perform [acts] an act or exercise [privileges] a privilege as specifically granted in the permit.
332 [(36)] (40) "Person" means [any] an individual, partnership, firm, corporation, limited
333 liability company, association, business trust, or other form of business enterprise, including a
334 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
335 more limited meaning is disclosed by the context.

336 [(37)] (41) "Premises" means [any] a building, enclosure, room, or equipment used in
337 connection with the sale, storage, service, manufacture, distribution, or consumption of an
338 alcoholic [products] product, unless otherwise defined in this title or in the rules adopted by the
339 commission.
340 [(38)] (42) "Prescription" means a writing in legal form, signed by a physician or
341 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
342 [(39)] (43) (a) "Privately hosted event" or "private social function" means a specific
343 social, business, or recreational event:
344 (i) for which an entire room, area, or hall [has been] is leased or rented[,] in advance by
345 an identified group[,]; and [the event or function]
346 (ii) that is limited in attendance to people who [have been] are specifically designated
347 and their guests.
348 (b) "Privately hosted event" and "private social function" does not include [events or
349 functions] an event to which the general public is invited, whether for an admission fee or not.
350 [(40)] (44) "Proof of age" means:
351 (a) an identification card;
352 (b) an identification that:
353 (i) is substantially similar to an identification card;
354 (ii) is issued in accordance with the laws of a state other than Utah in which the
355 identification is issued;
356 (iii) includes date of birth; and
357 (iv) has a picture affixed;
358 (c) a valid driver license certificate that:
359 (i) includes date of birth;
360 (ii) has a picture affixed; and
361 (iii) is issued:
362 (A) under Title 53, Chapter 3, Uniform Driver License Act; or
363 (B) in accordance with the laws of the state in which it is issued;
364 (d) a military identification card that:
365 (i) includes date of birth; and
366 (ii) has a picture affixed; or

367 (e) a valid passport.
368 [(41)] (45) (a) "Public building" means [any] a building or permanent structure owned
369 or leased by the state, a county, or local government entity that is used for:
370 (i) public education;
371 (ii) transacting public business; or
372 (iii) regularly conducting government activities.
373 (b) "Public building" does not mean or refer to [any] a building owned by the state or a
374 county or local government entity when the building is used by [anyone] a person, in whole or
375 in part, for a proprietary [functions] function.
376 [(42)] (46) "Representative" means an individual who is compensated by salary,
377 commission, or [any] other means for representing and selling [the] an alcoholic beverage
378 [products] product of a manufacturer, supplier, or importer of liquor[,] including:
379 (a) wine[, or];
380 (b) heavy beer; or
381 (c) on or after October 1, 2008, a flavored malt beverage.
382 [(43)] (47) "Residence" means [the] a person's principal place of abode within Utah.
383 [(44)] (48) "Restaurant" means [any] a business establishment:
384 (a) where a variety of foods is prepared and complete meals are served to the general
385 public;
386 (b) located on a premises having adequate culinary fixtures for food preparation and
387 dining accommodations; and
388 (c) that is engaged primarily in serving meals to the general public.
389 [(45)] (49) "Retailer" means [any] a person engaged in the sale or distribution of an
390 alcoholic [beverages] beverage to [the] a consumer.
391 [(46)] (50) (a) "Sample" includes:
392 (i) a department sample; and
393 (ii) an industry representative sample.
394 (b) "Department sample" means liquor[, wine, and heavy beer] that [has been] is placed
395 in the possession of the department for testing, analysis, and sampling including:
396 (i) wine;
397 (ii) heavy beer; or

398 (iii) on or after October 1, 2008, a flavored malt beverage.
399 (c) "Industry representative sample" means liquor[, wine, and heavy beer] that [has
400 been] is placed in the possession of the department:
401 (i) for testing, analysis, and sampling by a local industry [representatives]
402 representative on the premises of the department to educate the local industry [representatives]
403 representative of the quality and characteristics of the product[.]; and
404 (ii) including:
405 (A) wine;
406 (B) heavy beer; or
407 (C) on or after October 1, 2008, a flavored malt beverage.
408 [(47)] (51) (a) "School" means [any] a building used primarily for the general
409 education of minors.
410 (b) "School" does not include:
411 (i) a nursery school;
412 (ii) an infant day care center; or
413 (iii) a trade or technical school.
414 [(48)] (52) "Sell," "sale," and "to sell" means [any] a transaction, exchange, or barter
415 whereby, for [any] consideration, an alcoholic beverage is either directly or indirectly
416 transferred, solicited, ordered, delivered for value, or by [any] a means or under [any] a pretext
417 is promised or obtained, whether done by a person as a principal, proprietor, or as an agent,
418 servant, or employee, unless otherwise defined in this title or the rules made by the
419 commission.
420 [(49)] (53) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
421 which opaque clothing covers no more than:
422 (a) the nipple and areola of the female human breast in a shape and color other than the
423 natural shape and color of the nipple and areola; and
424 (b) the human genitals, pubic area, and anus:
425 (i) with no less than the following at its widest point:
426 (A) four inches coverage width in the front of the human body; and
427 (B) five inches coverage width in the back of the human body; and
428 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.

429 [(50)] (54) "Sexually oriented entertainer" means a person who while in a state of
430 seminudity appears at or performs:
431 (a) for the entertainment of one or more patrons;
432 (b) on the premises of:
433 (i) a class D private club as defined in Subsection 32A-5-101 (3); or
434 (ii) a tavern;
435 (c) on behalf of or at the request of the licensee described in Subsection [(50)] (54)(b);
436 (d) on a contractual or voluntary basis; and
437 (e) whether or not the person is designated:
438 (i) an employee of the licensee described in Subsection [(50)] (54)(b);
439 (ii) an independent contractor of the licensee described in Subsection [(50)] (54)(b);
440 (iii) an agent of the licensee described in Subsection [(50)] (54)(b); or
441 (iv) otherwise of the licensee described in Subsection [(50)] (54)(b).
442 [(51)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels
443 of beer [and], heavy beer, and flavored malt beverages per year.
444 [(52)] (56) (a) "Spirituous liquor" means liquor that is distilled.
445 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
446 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
447 [(53)] (57) (a) "State label" means the official label designated by the commission
448 affixed to [all] a liquor [containers] container sold in the state.
449 (b) "State label" includes the department identification mark and inventory control
450 number.
451 [(54)] (58) (a) "State store" means a facility for the sale of package liquor:
452 (i) located on premises owned or leased by the state; and
453 (ii) operated by state employees.
454 (b) "State store" does not apply to [any] a:
455 (i) licensee;
456 (ii) permittee; or
457 (iii) package agency.
458 [(55)] (59) "Supplier" means [any] a person selling an alcoholic [beverages] beverage
459 to the department.

460 [(56)] (60) (a) "Tavern" means [any] a business establishment that is:
461 (i) engaged primarily in the retail sale of beer to a public [patrons] patron for
462 consumption on the establishment's premises; and
463 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
464 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
465 revenue of the sale of food, although food need not be sold in the establishment:
466 (i) a beer bar;
467 (ii) a parlor;
468 (iii) a lounge;
469 (iv) a cabaret; or
470 (v) a nightclub.
471 [(57)] (61) "Temporary domicile" means the principal place of abode within Utah of a
472 person who does not have a present intention to continue residency within Utah permanently or
473 indefinitely.
474 [(58)] (62) "Unsaleable liquor merchandise" means merchandise that:
475 (a) is unsaleable because the merchandise is:
476 (i) unlabeled;
477 (ii) leaky;
478 (iii) damaged;
479 (iv) difficult to open; or
480 (v) partly filled;
481 (b) is in a container:
482 (i) having faded labels or defective caps or corks;
483 (ii) in which the contents are:
484 (A) cloudy;
485 (B) spoiled; or
486 (C) chemically determined to be impure; or
487 (iii) that contains:
488 (A) sediment; or
489 (B) [any] a foreign substance; or
490 (c) is otherwise considered by the department as unfit for sale.

491 [(59)] (63) "Visitor" means an individual that in accordance with Section 32A-5-107
492 holds limited privileges in a private club by virtue of a visitor card.
493 [(60)] (64) "Warehouser" means [any] a person, other than a licensed manufacturer,
494 engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
495 [(61)] (65) (a) "Wholesaler" means [any] a person engaged in the importation for sale,
496 or in the sale of beer in wholesale or jobbing quantities to one or more retailers[, other than a].
497 (b) Notwithstanding Subsection (65)(a), "wholesaler" does not include a small brewer
498 selling beer manufactured by that brewer.
499 [(62)] (66) (a) "Wine" means [any] an alcoholic beverage obtained by the fermentation
500 of the natural sugar content of fruits, plants, honey, or milk, or [any] other like substance,
501 whether or not [other ingredients are] another ingredient is added.
502 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
503 provided in this title.
504 Section 2. Section 32A-1-116 is amended to read:
505 32A-1-116. Purchase of liquor.
506 (1) The department may not purchase or stock spirituous liquor in [containers] a
507 container smaller than 200 milliliters except as otherwise allowed by the commission.
508 (2) (a) Each order by the department for the purchase of spirituous liquor, wine, [or]
509 heavy beer, or flavored malt beverage, or any cancellation by the department of an order for
510 spirituous liquor, wine, [or] heavy beer, or flavored malt beverage:
511 (i) shall be executed in writing by the department; and
512 (ii) is not valid or binding unless executed in writing.
513 (b) A copy of each order or cancellation shall be kept on file by the department for at
514 least three years.
515 (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
516 Chapter 4, Uniform Electronic Transactions Act.
517 Section 3. Section 32A-1-119 is amended to read:
518 32A-1-119. Disciplinary proceedings -- Procedure.
519 (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
520 an adjudicative proceeding permitted under this title:
521 (i) against:

522 (A) a permittee;
523 (B) a licensee;
524 (C) a manufacturer;
525 (D) a supplier;
526 (E) an importer;
527 (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
528 or
529 (G) an officer, employee, or agent of:
530 (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
531 (II) a package agent; and
532 (ii) that is brought on the basis of a violation of this title.
533 (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
534 final unappealable judgment or order has been issued.
535 (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
536 necessary and proper for the administration of this title and rules adopted under this title:
537 (i) the commission;
538 (ii) a hearing examiner appointed by the commission for the purposes provided in
539 Subsection 32A-1-107 (3);
540 (iii) the director; and
541 (iv) the department.
542 (b) Except as provided in this section or Section 32A-3-106 , the following shall
543 comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
544 Procedures Act, in adjudicative proceedings:
545 (i) the commission;
546 (ii) a hearing examiner appointed by the commission;
547 (iii) the director; and
548 (iv) the department.
549 (c) Except where otherwise provided by law, all adjudicative proceedings before the
550 commission or its appointed hearing examiner shall be:
551 (i) video or audio recorded; and
552 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,

553 Open and Public Meetings Act.
554 (d) [All adjudicative proceedings] An adjudicative proceeding concerning departmental
555 personnel shall be conducted in accordance with Title 67, Chapter 19, Utah State Personnel
556 Management Act.
557 (e) [All hearings that are] A hearing that is informational, fact gathering, and
558 nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures
559 promulgated by the commission, director, or department.
560 (3) (a) A disciplinary proceeding shall be conducted under the authority of the
561 commission, which is responsible for rendering a final decision and order on any disciplinary
562 matter.
563 (b) (i) Nothing in this section precludes the commission from appointing necessary
564 officers, including hearing examiners, from within or without the department, to administer the
565 disciplinary proceeding process.
566 (ii) A hearing examiner appointed by the commission:
567 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
568 (B) shall submit to the commission a report including:
569 (I) findings of fact determined on the basis of a preponderance of the evidence
570 presented at the hearing;
571 (II) conclusions of law; and
572 (III) recommendations.
573 (c) Nothing in this section precludes the commission, after the commission has
574 rendered its final decision and order, from having the director prepare, issue, and cause to be
575 served on the parties the final written order on behalf of the commission.
576 (4) (a) The department may initiate a disciplinary proceeding described in Subsection
577 (4)(b) when the department receives:
578 (i) a report from any government agency, peace officer, examiner, or investigator
579 alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
580 the rules of the commission;
581 (ii) a final adjudication of criminal liability against any person listed in Subsections
582 (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
583 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage

584 Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
585 violation of this title.
586 (b) The department may initiate a disciplinary proceeding if the department receives an
587 item listed in Subsection (4)(a) to determine:
588 (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
589 or rules of the commission; and
590 (ii) if a violation is found, the appropriate sanction to be imposed.
591 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
592 (i) if required by law;
593 (ii) before revoking or suspending any permit, license, or certificate of approval issued
594 under this title; or
595 (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A)
596 through (G).
597 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
598 hearing after receiving proper notice is an admission of the charged violation.
599 (c) The validity of a disciplinary proceeding is not affected by the failure of any person
600 to attend or remain in attendance.
601 (d) All disciplinary proceeding hearings shall be presided over by the commission or an
602 appointed hearing examiner.
603 (e) A disciplinary proceeding hearing may be closed only after the commission or
604 hearing examiner makes a written finding that the public interest in an open hearing is clearly
605 outweighed by factors enumerated in the closure order.
606 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
607 hearing may:
608 (A) administer oaths or affirmations;
609 (B) take evidence;
610 (C) take depositions within or without this state; and
611 (D) require by subpoena from any place within this state:
612 (I) the testimony of any person at a hearing; and
613 (II) the production of any books, records, papers, contracts, agreements, documents, or
614 other evidence considered relevant to the inquiry.

615 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
616 produce any books, papers, documents, or tangible things as required in the subpoena.
617 (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
618 privilege against self-incrimination may not be compelled to testify, but the commission or the
619 hearing examiner shall file a written report with the county attorney or district attorney in the
620 jurisdiction where the privilege was claimed or where the witness resides setting forth the
621 circumstance of the claimed privilege.
622 (iv) (A) A person is not excused from obeying a subpoena without just cause.
623 (B) Any district court within the judicial district in which a person alleged to be guilty
624 of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
625 by the party issuing the subpoena, may issue an order requiring the person to:
626 (I) appear before the issuing party; and
627 (II) (Aa) produce documentary evidence if so ordered; or
628 (Bb) give evidence regarding the matter in question.
629 (C) Failure to obey an order of the court may be punished by the court as contempt.
630 (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
631 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
632 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
633 recommend a penalty more severe than that initially sought by the department in the notice of
634 agency action.
635 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
636 shall be served upon the respective parties.
637 (iv) The respondent and the department shall be given reasonable opportunity to file
638 any written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
639 before final commission action.
640 (h) In all cases heard by the commission, it shall issue its final decision and order in
641 accordance with Subsection (3).
642 (6) (a) The commission shall:
643 (i) render a final decision and order on any disciplinary action; and
644 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
645 (b) [Any] An order of the commission is considered final on the date the order

646 becomes effective.
647 (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
648 through (G) has committed a violation of this title or the commission's rules, in accordance
649 with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
650 (i) suspend or revoke the permit, license, or certificate of approval;
651 (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
652 (iii) assess the administrative costs of any disciplinary proceeding to the permittee, the
653 licensee, or certificate holder; or
654 (iv) any combination of Subsections (6)(c)(i) through (iii).
655 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
656 32A-1-107 (1)(p) and (4).
657 (e) (i) If a permit or license is suspended under this Subsection (6), a sign provided by
658 the department shall be prominently posted:
659 (A) during the suspension;
660 (B) by the permittee or licensee; and
661 (C) at the entrance of the premises of the permittee or licensee.
662 (ii) The sign required by this Subsection (6)(e) shall:
663 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
664 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
665 sold, served, furnished, or consumed on these premises during the period of suspension."; and
666 (B) include the dates of the suspension period.
667 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
668 to be posted under this Subsection (6)(e) during the suspension period.
669 (f) If a permit or license is revoked, the commission may order the revocation of any
670 compliance bond posted by the permittee or licensee.
671 (g) Any permittee or licensee whose permit or license is revoked may not reapply for a
672 permit or license under this title for three years from the date on which the permit or license is
673 revoked.
674 (h) All costs assessed by the commission shall be transferred into the General Fund in
675 accordance with Section 32A-1-113 .
676 (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder

677 under this section, the department may initiate disciplinary action against an officer, employee,
678 or agent of a permittee, licensee, or certificate holder.
679 (b) If any officer, employee, or agent is found to have violated this title, the
680 commission may prohibit the officer, employee, or agent from serving, selling, distributing,
681 manufacturing, wholesaling, warehousing, or handling alcoholic beverages in the course of
682 employment with any permittee, licensee, or certificate holder under this title for a period
683 determined by the commission.
684 (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of
685 this title or the rules of the commission against:
686 (i) a manufacturer, supplier, or importer of alcoholic beverages; or
687 (ii) an officer, employee, agent, or representative of a person listed in Subsection
688 (8)(a)(i).
689 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
690 commission may, in addition to other penalties prescribed by this title, order:
691 (A) the removal of the manufacturer's, supplier's, or importer's products from the
692 department's sales list; and
693 (B) a suspension of the department's purchase of the products described in Subsection
694 (8)(b)(i)(A) for a period determined by the commission.
695 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
696 (A) any manufacturer, supplier, or importer of liquor, wine, [or] heavy beer, or a
697 flavored malt beverage, or its officer, employee, agent, or representative violates any provision
698 of this title; and
699 (B) the manufacturer, supplier, or importer:
700 (I) directly committed the violation; or
701 (II) solicited, requested, commanded, encouraged, or intentionally aided another to
702 engage in the violation.
703 (9) (a) The department may initiate a disciplinary proceeding against a brewer holding
704 a certificate of approval under Section 32A-8-101 for an alleged violation of this title or the
705 rules of the commission.
706 (b) If the commission makes a finding that the brewer holding a certificate of approval
707 violates this title or rules of the commission, the commission may take any action against the

708 brewer holding a certificate of approval that the commission could take against a licensee
709 including:
710 (i) suspension or revocation of the certificate of approval; and
711 (ii) imposition of a fine.
712 (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
713 the commission or a hearing examiner appointed by the commission shall proceed formally in
714 accordance with Sections 63-46b-6 through 63-46b-11 in any case where:
715 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
716 and welfare;
717 (ii) the alleged violation involves:
718 (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
719 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
720 Entertainment Act;
721 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
722 of the respondent;
723 (D) interfering or refusing to cooperate with:
724 (I) an authorized official of the department or the state in the discharge of the official's
725 duties in relation to the enforcement of this title; or
726 (II) a peace officer in the discharge of the peace officer's duties in relation to the
727 enforcement of this title;
728 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
729 (F) unlawful importation of alcoholic products; or
730 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
731 32A-12-601 (2), to any person other than the department or a military installation, except to the
732 extent permitted by this title; or
733 (iii) the department determines to seek in a disciplinary proceeding hearing:
734 (A) an administrative fine exceeding $3,000;
735 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
736 or
737 (C) a revocation of a license, permit, or certificate of approval.
738 (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah

739 Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
740 Section 4. Section 32A-1-122 is amended to read:
741 32A-1-122. Liquor prices -- School lunch program.
742 (1) For purposes of this section:
743 (a) "Landed case cost" means:
744 (i) the cost of the product; and
745 (ii) inbound shipping costs incurred by the department.
746 (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
747 of the department to a state store.
748 (2) (a) Except as provided in Subsections (2)(b) and (c), [all] spirituous liquor and
749 wine sold by the department within the state shall be marked up in an amount not less than
750 86% above the landed case cost to the department.
751 (b) [All spirituous] Spirituous liquor and wine sold by the department to a military
752 [installations] installation in Utah shall be marked up in an amount not less than 15% above the
753 landed case cost to the department.
754 (c) If a wine manufacturer producing less than 20,000 gallons of wine in any calendar
755 year, as verified by the department pursuant to federal or other verifiable production reports,
756 first applies to the department for a reduced markup, all wine produced by the wine
757 manufacturer and sold to the department shall be marked up by the department in an amount
758 not less than 47% above the landed case cost to the department.
759 (3) (a) Except as provided in Subsection (3)(b), [all] heavy beer sold by the department
760 within the state shall be marked up in an amount not less than 64.5% above the landed case
761 cost to the department.
762 (b) [All heavy] Heavy beer sold by the department to a military [installations]
763 installation in Utah shall be marked up in an amount not less than 15% above the landed case
764 cost to the department.
765 (4) (a) Except as provided in Subsection (4)(b), a flavored malt beverage sold by the
766 department within the state shall be marked up in an amount not less than 86% above the
767 landed case cost to the department.
768 (b) A flavored malt beverage sold by the department to a military installation in Utah
769 shall be marked up in an amount not less than 15% above the landed case cost to the

770 department.
771 [(4)] (5) Ten percent of the total gross revenue from sales of [spiritous] spirituous
772 liquor, wine, [and] heavy beer, and flavored malt beverages shall be deposited by the
773 department with the state treasurer and credited to the Uniform School Fund to be used to
774 support the school lunch program administered by the State Board of Education under Section
775 53A-19-201 .
776 [(5)] (6) Nothing in this section prohibits the department from selling discontinued
777 items at a discount.
778 Section 5. Section 32A-1-302 is amended to read:
779 32A-1-302. Presentation of proof of age upon request.
780 (1) To obtain one or more of the following, a person shall present proof of age at the
781 request of a person listed in Subsection (2):
782 (a) an alcoholic beverage or alcoholic product; [or]
783 (b) admittance that under this title may not be obtained by a minor to a premises where
784 an alcoholic beverage or alcoholic product is sold or consumed; or
785 [(b)] (c) employment that under this title may not be obtained by a minor.
786 (2) To determine whether the person described in Subsection (1) is 21 years of age, the
787 following may request a person described in Subsection (1) to present proof of age:
788 (a) a person authorized by law to sell or otherwise handle an alcoholic [beverages or
789 products] beverage or alcoholic product;
790 (b) a peace officer;
791 (c) a representative of the State Bureau of Investigation of the Department of Public
792 Safety, established in Section 53-10-301 ; or
793 (d) an authorized employee of the department.
794 Section 6. Section 32A-1-304 is amended to read:
795 32A-1-304. Acceptance of identification -- Evidence.
796 (1) A person authorized by law to sell or otherwise handle an alcoholic [beverages or
797 products] beverage or alcoholic product may accept as evidence of the legal age of the person
798 presenting the following:
799 (a) proof of age; or
800 (b) if a statement of age is required under Subsection 32A-1-303 (1):

801 (i) proof of age; and
802 (ii) a statement of age obtained under Section 32A-1-303 .
803 (2) A statement of age described in Section 32A-1-303 , if properly completed, signed,
804 and filed in accordance with Section 32A-1-303 , may be offered as a defense in [any] a case
805 where there is at issue the legality of:
806 (a) selling or otherwise furnishing an alcoholic beverage or product to the person who
807 signed the statement of age; [or]
808 (b) admitting a minor to a premises where an alcoholic beverage or alcoholic product is
809 sold or consumed; or
810 [(b)] (c) allowing the person who signed the statement of age to be employed in any
811 employment that under this title may not be obtained by a minor.
812 (3) A person may not be subject to a penalty for a violation of this part if it is proved to
813 the commission or the court hearing the matter that the person charged with the violation acted
814 in good faith.
815 Section 7. Section 32A-1-701 is enacted to read:
816 Part 7. Criminal Background Check Act
817 32A-1-701. Title.
818 This part is known as the "Criminal Background Check Act."
819 Section 8. Section 32A-1-702 is enacted to read:
820 32A-1-702. Requirement for a criminal background check.
821 (1) The department shall require an individual listed in Subsection (2) to, in accordance
822 with this part:
823 (a) submit a fingerprint card in a form acceptable to the department; and
824 (b) consent to a fingerprint criminal background check by:
825 (i) the Utah Bureau of Criminal Identification; and
826 (ii) the Federal Bureau of Investigation.
827 (2) The following shall comply with Subsection (1):
828 (a) an individual applying for employment with the department;
829 (b) an individual applying to the commission to operate a package agency;
830 (c) an individual applying to the commission for a license;
831 (d) an individual who with regard to an entity that is applying to the commission to

832 operate a package agency or for a license is:
833 (i) a partner;
834 (ii) a managing agent;
835 (iii) a manager;
836 (iv) an officer;
837 (v) a director;
838 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
839 corporation;
840 (vii) a member who owns at least 20% of a limited liability company; or
841 (viii) an individual employed to act in a supervisory or managerial capacity; or
842 (e) an individual who becomes involved in an entity listed in Subsection (2)(b) or (c) in
843 a capacity listed in Subsection (2)(d) on or after the day on which the entity:
844 (i) is approved to operate a package agency; or
845 (ii) is licensed by the commission.
846 (3) The department shall require compliance with Subsection (2)(e) as a condition of
847 an entity's:
848 (a) continued operation of a package agency; or
849 (b) renewal of a license.
850 (4) The department may require as a condition of continued employment that an
851 employee:
852 (a) submit a fingerprint card in a form acceptable to the department; and
853 (b) consent to a fingerprint criminal background check by:
854 (i) the Utah Bureau of Criminal Identification; and
855 (ii) the Federal Bureau of Investigation.
856 Section 9. Section 32A-1-703 is enacted to read:
857 32A-1-703. Use of information from a criminal background check.
858 The commission or department may use information obtained pursuant to Section
859 32A-1-702 only for one or more of the following purposes:
860 (1) enforcing this title;
861 (2) determining whether or not an individual is convicted of any of the following
862 offenses that disqualify the individual under this title from acting in a capacity described in

863 Subsection 32A-1-702 (2):
864 (a) a felony under federal or state law;
865 (b) a violation of a federal law, state law, or local ordinance concerning the sale,
866 manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
867 beverage;
868 (c) a crime involving moral turpitude; or
869 (d) on two or more occasions within the previous five years, driving under the
870 influence of alcohol, a drug, or the combined influence of alcohol and a drug;
871 (3) determining whether or not an individual fails to accurately disclose the person's
872 criminal history on an application or document filed with the department or commission;
873 (4) approving or denying an application for employment with the department;
874 (5) taking disciplinary action against an employee of the department, including
875 possible termination of employment;
876 (6) granting or denying an application to operate a package agency;
877 (7) granting or denying an application for a license;
878 (8) granting or denying the renewal of a package agency contract;
879 (9) granting or denying the renewal of a license;
880 (10) suspending the operation of a package agency;
881 (11) terminating a package agency contract; or
882 (12) suspending or revoking a license.
883 Section 10. Section 32A-1-704 is enacted to read:
884 32A-1-704. Criminal background check procedure.
885 (1) (a) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall
886 provide a fingerprint card at the expense of the individual.
887 (b) The department shall pay the expense of obtaining a fingerprint card required of:
888 (i) an applicant for employment with the department; or
889 (ii) an employee of the department.
890 (2) (a) The department shall obtain information from a criminal history record
891 maintained by the Utah Bureau of Criminal Identification pursuant to Title 53, Chapter 10, Part
892 2, Bureau of Criminal Identification, for a purpose outlined in Section 32A-1-703 .
893 (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to

894 the department the expense of obtaining the criminal history record described in Subsection
895 (2)(a).
896 (c) The department shall pay the expense of obtaining the criminal history record
897 required for:
898 (i) an applicant for employment with the department; or
899 (ii) an employee of the department.
900 (3) (a) The department shall submit a fingerprint card obtained under Section
901 32A-1-702 of an individual who has not resided in the state for at least two years before the day
902 on which the fingerprint card is submitted to the Utah Bureau of Criminal Identification to be
903 forwarded to the Federal Bureau of Investigation for a nationwide criminal history record
904 check.
905 (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to
906 the department the expense of obtaining the criminal history record described in Subsection
907 (3)(a).
908 (c) The department shall pay the expense of obtaining the criminal history record
909 required for:
910 (i) an applicant for employment with the department; or
911 (ii) an employee of the department.
912 (4) The department shall pay the Utah Bureau of Criminal Identification the costs
913 incurred in providing the department criminal background information.
914 (5) (a) The commission, the department, or an official or employee of the commission
915 or department may not disseminate a criminal history record obtained under this part to any
916 person except for a purpose described in Subsection 32A-1-703 .
917 (b) (i) Notwithstanding Subsection (5)(a), a criminal history record obtained under this
918 part may be provided by the department to the individual who is the subject of the criminal
919 history record.
920 (ii) The department shall provide an individual who is the subject of a criminal history
921 record and who requests the criminal history record an opportunity to:
922 (A) review the criminal history record; and
923 (B) respond to information in the criminal history record.
924 (6) If an individual described in Subsection 32A-1-702 (2) is determined to be

925 disqualified under Subsection 32A-1-703 (2)(b), the department shall provide the individual
926 with:
927 (a) notice of the reason for the disqualification; and
928 (b) an opportunity to respond to the disqualification.
929 (7) The department shall maintain the following in one or more separate files so that
930 they may be accessed only for a purpose under Section 32A-1-703 :
931 (a) a fingerprint card submitted under this part; and
932 (b) a criminal history record received from:
933 (i) the Utah Bureau of Criminal Identification; and
934 (ii) the Federal Bureau of Investigation.
935 Section 11. Section 32A-1-801 is enacted to read:
936 Part 8. Malted Beverages Act
937 32A-1-801. Title.
938 This part is known as the "Malted Beverages Act."
939 Section 12. Section 32A-1-802 is enacted to read:
940 32A-1-802. Definitions.
941 As used in this part:
942 (1) "Malted beverages means:
943 (a) beer;
944 (b) a flavored malt beverage; and
945 (c) heavy beer.
946 (2) "Packaging" means the outer packaging that is visible to a consumer such as a
947 carton, case, or other wrapper of a container.
948 Section 13. Section 32A-1-803 is enacted to read:
949 32A-1-803. Power of the commission and department to classify flavored malted
950 beverages.
951 (1) The commission and department shall beginning on October 1, 2008, regulate a
952 flavored malt beverage as liquor.
953 (2) (a) By no later than October 1, 2008, the department shall make available to the
954 public on the Internet a list of all flavored malt beverages authorized to be sold in this state as
955 liquor.

956 (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
957 (3) (a) Beginning on August 1, 2008, a manufacturer shall file, under penalty of
958 perjury, a report with the department listing each flavored malt beverage manufactured by the
959 manufacturer that the manufacturer wants to distribute in this state on or after October 1, 2008,
960 subject to the manufacturer holding:
961 (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
962 (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
963 (b) On or after October 1, 2008, a manufacturer may not distribute or sell in this state a
964 flavored malt beverage if the manufacturer does not list the flavored malt beverage in a filing
965 with the department in accordance with this Subsection (3) before distributing or selling the
966 flavored malt beverage.
967 (4) The department may require a manufacturer of a flavored malt beverage to provide
968 the department with a copy of the following filed with the United States Alcohol and Tobacco
969 Trade and Tax Bureau, pursuant to 27 C.F.R. Sec. 25.55:
970 (a) a statement of process; or
971 (b) a formula.
972 (5) (a) A manufacturer of an alcoholic product that the department is classifying or
973 proposes to classify as a flavored malt beverage may submit evidence to the department that its
974 alcoholic product should not be treated as liquor under this section because the alcoholic
975 product:
976 (i) is obtained by fermentation, infusion, or decoction of a malted grain;
977 (ii) is produced by processing, filtration, or another method of manufacture that is
978 generally recognized as a traditional process in the production of beer as described in 27 C.F.R.
979 Sec. 25.55;
980 (iii) does not have added to it a flavor or other ingredient containing alcohol, except for
981 a hop extract; and
982 (iv) (A) is not one for which the producer is required to file a formula for approval with
983 the United States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec.
984 25.55; or
985 (B) is exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
986 (b) The department shall review the evidence submitted by the manufacturer under this

987 Subsection (5).
988 (c) The department shall make available to the public on the Internet a list of all
989 alcoholic beverages authorized under this Subsection (5) to be sold as beer in this state.
990 (d) A decision of the department under this Subsection (5) may be appealed to the
991 commission.
992 Section 14. Section 32A-1-804 is enacted to read:
993 32A-1-804. Requirements for labeling and packaging -- Authority of the
994 commission and department.
995 (1) On or after October 1, 2008, a manufacturer may not distribute or sell a malted
996 beverage:
997 (a) unless the label and packaging of the malted beverage:
998 (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
999 (ii) clearly gives notice to the public that the malted beverage is an alcoholic beverage;
1000 and
1001 (b) until the day on which the department in accordance with this title and rules of the
1002 commission approves the label and packaging of the malted beverage.
1003 (2) The department shall review the label and packaging of a malted beverage to ensure
1004 that the label and packaging meets the requirements of Subsection (1)(a).
1005 (3) A manufacturer may comply with the requirement of Subsection (1)(a)(ii) by
1006 including on a label and packaging for a malted beverage any of the following terms:
1007 (a) beer;
1008 (b) ale;
1009 (c) porter;
1010 (d) stout;
1011 (e) lager;
1012 (f) lager beer; or
1013 (g) another class or type designation commonly applied to a malted beverage that
1014 conveys by a recognized term that the product contains alcohol.
1015 Section 15. Section 32A-1-805 is enacted to read:
1016 32A-1-805. General procedure for approval.
1017 (1) To obtain approval of the label and packaging of a malted beverage, the

1018 manufacturer of the malted beverage shall submit an application to the department for
1019 approval.
1020 (2) The application described in Subsection (1) shall be on a form approved by the
1021 department and include the following:
1022 (a) a copy of a federal certificate of label approval from the Department of Treasury,
1023 Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
1024 approval;
1025 (b) a complete set of original labels for each size of container of the malted beverage;
1026 (c) a description of the size of the container on which a label will be placed;
1027 (d) a description of each type of container of the malted beverage; and
1028 (e) a description of any packaging for the malted beverage.
1029 (3) The department may assess a reasonable fee for reviewing a label and packaging for
1030 approval.
1031 (4) (a) The department shall notify a manufacturer within 30 days after the day on
1032 which the manufacturer submits an application whether the label and packaging is approved or
1033 denied.
1034 (b) If the department determines that an unusual circumstance requires additional time,
1035 the department may extend the time period described in Subsection (4)(a).
1036 (5) A manufacturer shall obtain the approval of the department of a revision of a
1037 previously approved label and packaging before a malted beverage using the revised label and
1038 packaging may be distributed or sold in this state.
1039 (6) (a) The department may revoke a label and packaging previously approved upon a
1040 finding that the label and packaging is not in compliance with this title or rules of the
1041 commission.
1042 (b) The department shall notify the person that applies for the approval of a label and
1043 packaging at least five business days before the day on which a label and packaging approval is
1044 considered revoked.
1045 (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
1046 argument or evidence to the department on why the revocation should not occur.
1047 (7) A manufacturer that applies for approval of a label and packaging may appeal a
1048 denial or revocation of a label and packaging approval to the commission.

1049 Section 16. Section 32A-1-806 is enacted to read:
1050 32A-1-806. Special procedure for flavored malted beverages.
1051 (1) If a flavored malt beverage is labeled or packaged in a manner that is similar to a
1052 label or package used for a nonalcoholic beverage, beginning October 1, 2008, a manufacturer
1053 of the flavored malt beverage may not distribute or sell the flavored malt beverage in this state
1054 until the day on which the manufacturer receives approval of the labeling and packaging from
1055 the department in accordance with:
1056 (a) Sections 32A-1-804 and 32A-1-805 ; and
1057 (b) this section.
1058 (2) The department may not approve the labeling and packaging of a flavored malt
1059 beverage described in Subsection (1) unless in addition to the requirements of Section
1060 32A-1-804 the labeling and packaging complies with the following:
1061 (a) The label on the flavored malt beverage shall bear a prominently displayed label or
1062 a firmly affixed sticker that provides the following information:
1063 (i) the statement:
1064 (A) "alcoholic beverage"; or
1065 (B) "contains alcohol"; and
1066 (ii) the alcohol content of the flavored malt beverage.
1067 (b) Any packaging of the flavored malt beverage shall prominently include, either
1068 imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging, the
1069 statement:
1070 (i) "alcoholic beverage"; or
1071 (ii) "contains alcohol".
1072 (c) A statement required by Subsection (2)(a) or (b) shall appear in a format required
1073 by rule made by the commission in accordance with Title 63, Chapter 46a, Utah Administrative
1074 Rulemaking Act.
1075 (d) A statement of alcohol content required by Subsection (2)(a)(ii):
1076 (i) shall state the alcohol content as a percentage of alcohol by volume or by weight;
1077 (ii) may not use an abbreviation, but shall use the complete words "alcohol," "volume,"
1078 or "weight"; and
1079 (iii) shall be in a format required by rule made by the commission:

1080 (3) The department may reject a label or packaging that appears designed to obscure
1081 the information required by Subsection (2).
1082 (4) To determine whether or not a flavored malt beverage is described in Subsection
1083 (1) and subject to this section, the department may consider in addition to other factors one or
1084 more of the following factors:
1085 (a) whether the coloring, carbonation, and packaging of the flavored malt beverage:
1086 (i) is similar to those of a nonalcoholic beverage or product; or
1087 (ii) can be confused with a nonalcoholic beverage;
1088 (b) whether the flavored malt beverage possesses a character and flavor distinctive
1089 from a traditional malted beverage;
1090 (c) whether the flavored malt beverage is:
1091 (i) prepackaged;
1092 (ii) contains high levels of caffeine and other additives; and
1093 (iii) is marketed as a beverage that is specifically designed to provide energy;
1094 (d) whether the flavored malt beverage contains added sweetener or sugar substitutes;
1095 or
1096 (e) whether the flavored malt beverage contains an added fruit flavor or other flavor
1097 that masks the taste of a traditional malted beverage.
1098 Section 17. Section 32A-1-807 is enacted to read:
1099 32A-1-807. Rulemaking authority.
1100 The commission may adopt rules necessary to implement this part.
1101 Section 18. Section 32A-1-808 is enacted to read:
1102 32A-1-808. Disciplinary proceeding for violation.
1103 A person who violates this part is subject to a disciplinary proceeding under Section
1104 32A-1-119 .
1105 Section 19. Section 32A-1-809 is enacted to read:
1106 32A-1-809. Transition protections.
1107 (1) Except as provided in Subsection (3), a manufacturer of a flavored malt beverage
1108 may not be held liable under this title for distributing or selling a flavored malt beverage as a
1109 beer if:
1110 (a) the flavored malt beverage is distributed or sold on or before September 30, 2008;

1111 and
1112 (b) the manufacturer when distributing or selling the flavored malt beverage complies
1113 with the requirements of this title for distributing or selling a beer including holding:
1114 (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
1115 (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
1116 (2) Except as provided in Subsection (3), a licensee or permittee may not be held liable
1117 for the sale, offering, or furnishing of a flavored malt beverage as a beer if:
1118 (a) the flavored malt beverage is sold, offered, or furnished on or before September 30,
1119 2008; and
1120 (b) the licensee or permittee when selling, offering, or furnishing the flavored malt
1121 beverage complies with the requirements of this title for selling, offering, or furnishing a beer
1122 under the license or permit held by the licensee or permittee.
1123 (3) This section does not apply to liability under Chapter 14a, Alcoholic Beverage
1124 Liability.
1125 Section 20. Section 32A-2-101 is amended to read:
1126 32A-2-101. Commission's power to establish state stores -- Limitations.
1127 (1) (a) The commission may establish state stores in numbers and at places, owned or
1128 leased by the department, [it] the commission considers proper for the sale of liquor, by
1129 employees of the state, in accordance with this title and the rules made under this title.
1130 (b) [Employees of state stores are] An employee of a state store is considered
1131 [employees] an employee of the department and shall meet all qualification requirements for
1132 employment [outlined] in Section 32A-1-111 .
1133 (2) (a) The total number of state stores may not at any time aggregate more than that
1134 number determined by dividing the population of the state by 48,000.
1135 (b) For purposes of this Subsection (2), population shall be determined by:
1136 (i) the most recent United States decennial or special census; or
1137 (ii) [any other] another population determination made by the United States or state
1138 governments.
1139 (3) (a) [A] Except as provided in Subsection (3)(b), a state store may not be
1140 established:
1141 (i) within 600 feet of [any public or private school, church, public library, public

1142 playground, or park] a community location, as measured by the method in Subsection [(4).]
1143 (3)(c); or
1144 [(b) A state store may not be established]
1145 (ii) within 200 feet of [any public or private school, church, public library, public
1146 playground, or park] a community location, measured in a straight line from the nearest
1147 entrance of the proposed state store to the nearest property boundary of the [public or private
1148 school, church, public library, public playground, or park] community location.
1149 [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
1150 following exceptions applies:]
1151 [(i) with] (b) With respect to the establishment of a state store [within a city of the
1152 third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
1153 may authorize a variance that reduces the proximity [requirements] requirement of Subsection
1154 (3)(a)(i) [or (b)] if:
1155 [(A)] (i) the commission finds that alternative locations for establishing a state store in
1156 the community are limited;
1157 [(B)] (ii) a public hearing [has been] is held in the city, town, or county, and where
1158 practical in the neighborhood concerned; [and]
1159 [(C)] (iii) after giving full consideration to all of the attending circumstances and the
1160 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1161 establishing the state store would not be detrimental to the public health, peace, safety, and
1162 welfare of the community; [or] and
1163 [(ii) with respect to the establishment of a state store in any location, the commission
1164 may authorize a variance to reduce the proximity requirements of Subsection (3)(a) or (b) in
1165 relation to a church:]
1166 [(A) if the local governing body of the church in question gives its written consent to
1167 the variance;]
1168 [(B) following a public hearing in the county, and where practical in the neighborhood
1169 concerned; and]
1170 [(C) after giving full consideration to all of the attending circumstances and the
1171 policies stated in Subsections 32A-1-104 (3) and (4).]
1172 [(4) With respect to any public or private school, church, public library, public

1173 playground, or park, the]
1174 (iv) (A) the community location governing authority gives its written consent to the
1175 variance; or
1176 (B) when written consent is not given by the community location governing authority,
1177 the commission finds that:
1178 (I) there is substantial unmet public demand to consume alcohol within the geographic
1179 boundary of the local authority in which the state store is to be located;
1180 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1181 described in Subsection (3)(b)(iv)(B)(I) other than through the establishment of a state store;
1182 and
1183 (III) there is no reasonably viable alternative location within the geographic boundary
1184 of the local authority in which the state store is to be located for establishing a state store to
1185 satisfy the unmet demand described in Subsection (3)(b)(iv)(B)(I).
1186 (c) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
1187 nearest entrance of the state store by following the shortest route of ordinary pedestrian travel
1188 to the property boundary of the [public or private school, church, public library, public
1189 playground, school playground, or park] community location.
1190 [(5)] (4) (a) Nothing in this section prevents the commission from considering the
1191 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1192 reaching a decision on a proposed location.
1193 (b) For purposes of this Subsection [(5)] (4), "educational facility" includes:
1194 (i) a nursery school;
1195 (ii) an infant day care center; and
1196 (iii) a trade and technical school.
1197 Section 21. Section 32A-3-101 is amended to read:
1198 32A-3-101. Commission's power to establish package agencies -- Limitations.
1199 (1) (a) The commission may, when [considered] it considers necessary, create a
1200 package [agencies] agency by entering into a contractual [relationships with persons]
1201 relationship with a person to sell liquor in sealed packages from premises other than those
1202 owned or leased by the state.
1203 (b) The commission shall authorize a person to operate a package agency by issuing a

1204 certificate from the commission that designates the person in charge of the agency as a
1205 "package agent" as defined under Section 32A-1-105 .
1206 (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
1207 any time aggregate more than that number determined by dividing the population of the state
1208 by 18,000.
1209 (b) For purposes of Subsection (2)(a), population shall be determined by:
1210 (i) the most recent United States decennial or special census; or
1211 (ii) [any other] another population determination made by the United States or state
1212 governments.
1213 (c) (i) The commission may establish seasonal package agencies established in areas
1214 the commission considers necessary.
1215 (ii) A seasonal package agency shall be for a period of six consecutive months.
1216 (iii) A package agency established for operation during a summer time period is known
1217 as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency shall:
1218 (A) begin on May 1; and
1219 (B) end on October 31.
1220 (iv) A package agency established for operation during a winter time period is known as
1221 a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency shall:
1222 (A) begin on November 1; and
1223 (B) end on April 30.
1224 (v) In determining the number of package agencies that the commission may establish
1225 under this section:
1226 (A) a seasonal package agency is counted as 1/2 of one package agency; and
1227 (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency.
1228 (d) (i) If the location, design, and construction of a hotel may require more than one
1229 package agency sales location to serve the public convenience, the commission may authorize a
1230 single package agent to sell liquor at as many as three locations within the hotel under one
1231 package agency if:
1232 (A) the hotel has a minimum of 150 guest rooms; and
1233 (B) all locations under the agency are:
1234 (I) within the same hotel facility; and

1235 (II) on premises that are managed or operated and owned or leased by the package
1236 agent.
1237 (ii) [Facilities] A facility other than [hotels] a hotel may not have more than one sales
1238 location under a single package agency.
1239 (3) (a) [As measured by the method in Subsection (4), the] Except as provided in
1240 Subsection (3)(b) or (c), the premises of a package agency may not be established:
1241 (i) within 600 feet of [any public or private school, church, public library, public
1242 playground, or park.] a community location, as measured by the method described in
1243 Subsection (3)(d); or
1244 [(b) The premises of a package agency may not be established]
1245 (ii) within 200 feet of [any public or private school, church, public library, public
1246 playground, or park] a community location, measured in a straight line from the nearest
1247 entrance of the proposed package agency to the nearest property boundary of the [public or
1248 private school, church, public library, public playground, or park] community location.
1249 [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
1250 following exemptions applies:]
1251 [(i) with] (b) With respect to the establishment of a package agency [within a city of
1252 the third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
1253 may authorize a variance to reduce the proximity [requirements] requirement of Subsection
1254 (3)(a)(i) [or (b)] if:
1255 [(A)] (i) the local governing authority [has granted] grants its written consent to the
1256 variance;
1257 [(B)] (ii) the commission finds that alternative locations for establishing a package
1258 agency in the community are limited;
1259 [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
1260 practical in the neighborhood concerned; [and]
1261 [(D)] (iv) after giving full consideration to all of the attending circumstances and the
1262 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1263 establishing the package agency would not be detrimental to the public health, peace, safety,
1264 and welfare of the community; and
1265 [(ii) with respect to the establishment of a package agency in any location, the

1266 commission may authorize a variance to reduce the proximity requirements of Subsection
1267 (3)(a) or (b) in relation to a church:]
1268 [(A) if the local governing body of the church in question gives its written consent to
1269 the variance;]
1270 [(B) following a public hearing in the city, town, or county and where practical in the
1271 neighborhood concerned; and]
1272 [(C) after giving full consideration to all of the attending circumstances and the
1273 policies stated in Subsections 32A-1-104 (3) and (4); or]
1274 (v) (A) the community location governing authority gives its written consent to the
1275 variance; or
1276 (B) when written consent is not given by the community location governing authority,
1277 the commission finds that the applicant has established that:
1278 (I) there is substantial unmet public demand to consume alcohol within the geographic
1279 boundary of the local authority in which the package agency is to be located;
1280 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1281 described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a package
1282 agency; and
1283 (III) there is no reasonably viable alternative location within the geographic boundary
1284 of the local authority in which the package agency is to be located for establishing a package
1285 agency to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
1286 [(iii) with] (c) With respect to the premises of a package agency issued by the
1287 commission that undergoes a change of ownership, the commission may waive or vary the
1288 proximity requirements of Subsection (3)(a) [or (b)] in considering whether to grant a package
1289 agency to the new owner of the premises if:
1290 (i) (A) the premises previously received a variance reducing the proximity
1291 [requirements] requirement of Subsection (3)(a)(i) [or (b)]; or
1292 (B) the premises received a variance reducing the proximity requirement of Subsection
1293 (3)(a)(ii) on or before May 4, 2008; or
1294 [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
1295 under this title.
1296 [(4) With respect to any public or private school, church, public library, public

1297 playground, or park, the]
1298 (d) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
1299 nearest entrance of the package agency by following the shortest route of ordinary pedestrian
1300 travel to the property boundary of the [public or private school, church, public library, public
1301 playground, school playground, or park] community location.
1302 [(5)] (4) (a) Nothing in this section prevents the commission from considering the
1303 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1304 reaching a decision on a proposed location.
1305 (b) For purposes of Subsection [(5)] (4)(a), "educational facility" includes:
1306 (i) a nursery school;
1307 (ii) an infant day care center; and
1308 (iii) a trade and technical school.
1309 [(6)] (5) (a) The package agent, under the direction of the department, [shall be] is
1310 responsible for implementing and enforcing this title and the rules adopted under this title to
1311 the extent they relate to the conduct of the package agency and its sale of liquor.
1312 (b) A package agent may not be, or construed to be, a state employee nor be otherwise
1313 entitled to any benefits of employment from the state.
1314 (c) A package agent, when selling liquor from a package agency, is considered an agent
1315 of the state only to the extent specifically expressed in the package agency agreement.
1316 [(7)] (6) The commission may prescribe by policy, directive, or rule, consistent with
1317 this title, general operational requirements of all package agencies relating to:
1318 (a) physical facilities;
1319 (b) conditions of operation;
1320 (c) hours of operation;
1321 (d) inventory levels;
1322 (e) payment schedules;
1323 (f) methods of payment;
1324 (g) premises security; and
1325 (h) any other matters considered appropriate by the commission.
1326 Section 22. Section 32A-3-102 is amended to read:
1327 32A-3-102. Application requirements.

1328 (1) A person seeking to operate a package agency as a package agent under this chapter
1329 shall file a written application with the department in a form prescribed by the department.
1330 (2) The application shall be accompanied by:
1331 (a) a nonrefundable application fee of $100;
1332 (b) written consent of the local authority;
1333 (c) evidence of proximity to any [public or private school, church, public library,
1334 public playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
1335 Subsections 32A-3-101 (3) and (4), the application shall be processed in accordance with those
1336 subsections] community location, with proximity requirements being governed by Section
1337 32A-3-101 ;
1338 (d) a bond as specified by Section 32A-3-105 ;
1339 (e) a floor plan of the premises, including a description and highlighting of that part of
1340 the premises in which the applicant proposes that the package agency be established;
1341 (f) evidence that the package agency is carrying public liability insurance in an amount
1342 and form satisfactory to the department;
1343 (g) a signed consent form stating that the package agent will permit any authorized
1344 representative of the commission, department, or any law enforcement officer to have
1345 unrestricted right to enter the package agency;
1346 (h) in the case of an applicant that is a partnership, corporation, or limited liability
1347 company, proper verification evidencing that the person or persons signing the package agency
1348 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1349 company; and
1350 (i) any other information as the commission or department may direct.
1351 Section 23. Section 32A-4-101 is amended to read:
1352 32A-4-101. Commission's power to grant licenses -- Limitations.
1353 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1354 shall first obtain a license from the commission as provided in this part.
1355 (2) The commission may issue restaurant liquor licenses for the purpose of establishing
1356 restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
1357 consumption of liquor on premises operated as public restaurants.
1358 (3) (a) Subject to the other provisions of this Subsection (3), the total number of

1359 restaurant liquor licenses may not at any time aggregate more than that number determined by
1360 dividing the population of the state by 5,200.
1361 (b) For purposes of this Subsection (3), population shall be determined by:
1362 (i) the most recent United States decennial or special census; or
1363 (ii) [any other] another population determination made by the United States or state
1364 governments.
1365 (c) (i) The commission may issue seasonal restaurant liquor licenses established in
1366 areas the commission considers necessary.
1367 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
1368 (iii) A restaurant liquor license issued for operation during a summer time period is
1369 known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"
1370 restaurant liquor license shall:
1371 (A) begin on May 1; and
1372 (B) end on October 31.
1373 (iv) A restaurant liquor license issued for operation during a winter time period is
1374 known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
1375 restaurant liquor license shall:
1376 (A) begin on November 1; and
1377 (B) end on April 30.
1378 (v) In determining the number of restaurant liquor licenses that the commission may
1379 issue under this section:
1380 (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
1381 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1382 (d) (i) If the location, design, and construction of a hotel may require more than one
1383 restaurant liquor sales location within the hotel to serve the public convenience, the
1384 commission may authorize the sale of liquor at as many as three restaurant locations within the
1385 hotel under one license if:
1386 (A) the hotel has a minimum of 150 guest rooms; and
1387 (B) all locations under the license are:
1388 (I) within the same hotel facility; and
1389 (II) on premises that are managed or operated and owned or leased by the licensee.

1390 (ii) [Facilities] A facility other than [hotels] a hotel shall have a separate restaurant
1391 liquor license for each restaurant where liquor is sold.
1392 (4) (a) [The] Except as provided in Subsection (4)(b) or (c), the premises of a
1393 restaurant liquor license may not be established:
1394 (i) within 600 feet of [any public or private school, church, public library, public
1395 playground, or park,] a community location, as measured by the method in Subsection [(5).]
1396 (4)(d);
1397 [(b) The premises of a restaurant liquor license may not be established]
1398 (ii) within 200 feet of [any public or private school, church, public library, public
1399 playground, or park] a community location, measured in a straight line from the nearest
1400 entrance of the proposed outlet to the nearest property boundary of the [public or private
1401 school, church, public library, public playground, or park] community location.
1402 [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
1403 following exemptions applies:]
1404 [(i) with] (b) With respect to the establishment of a restaurant liquor license [in any
1405 location], the commission may authorize a variance to reduce the proximity [requirements]
1406 requirement of Subsection (4)(a)(i) [or (b)] if:
1407 [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
1408 variance;
1409 [(B)] (ii) the commission finds that alternative locations for establishing a restaurant
1410 liquor license in the community are limited;
1411 [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
1412 practical in the neighborhood concerned; [and]
1413 [(D)] (iv) after giving full consideration to all of the attending circumstances and the
1414 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1415 establishing the restaurant liquor license would not be detrimental to the public health, peace,
1416 safety, and welfare of the community; [or] and
1417 (v) (A) the community location governing authority gives its written consent to the
1418 variance; or
1419 (B) when written consent is not given by the community location governing authority,
1420 the commission finds that the applicant has established that:

1421 (I) there is substantial unmet public demand to consume alcohol in a public setting
1422 within the geographic boundary of the local authority in which the restaurant is to be located;
1423 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1424 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1425 liquor license; and
1426 (III) there is no reasonably viable alternative location within the geographic boundary
1427 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1428 license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1429 [(ii) with] (c) With respect to the premises of a restaurant liquor license issued by the
1430 commission that undergoes a change of ownership, the commission may waive or vary the
1431 proximity requirements of Subsection (4)(a) [or (b)] in considering whether to grant a
1432 restaurant liquor license to the new owner of the premises if:
1433 (i) (A) the premises previously received a variance reducing the proximity
1434 [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
1435 (B) the premises received a variance reducing the proximity requirement of Subsection
1436 (4)(a)(ii) on or before May 4, 2008; or
1437 [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
1438 under this title.
1439 [(5) With respect to any public or private school, church, public library, public
1440 playground, or park, the]
1441 (d) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
1442 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1443 [property boundary of the public or private school, church, public library, public playground,
1444 school playground, or park] community location.
1445 [(6)] (5) (a) Nothing in this section prevents the commission from considering the
1446 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1447 reaching a decision on a proposed location.
1448 (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
1449 (i) a nursery school;
1450 (ii) an infant day care center; and
1451 (iii) a trade and technical school.

1452 Section 24. Section 32A-4-102 is amended to read:
1453 32A-4-102. Application and renewal requirements.
1454 (1) A person seeking a restaurant liquor license under this part shall file a written
1455 application with the department, in a form prescribed by the department. It shall be
1456 accompanied by:
1457 (a) a nonrefundable $250 application fee;
1458 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1459 (c) written consent of the local authority;
1460 (d) a copy of the applicant's current business license;
1461 (e) evidence of proximity to any [public or private school, church, public library,
1462 public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
1463 Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
1464 subsections] community location, with proximity requirements being governed by Section
1465 32A-4-101 ;
1466 (f) a bond as specified by Section 32A-4-105 ;
1467 (g) a floor plan of the restaurant, including consumption areas and the area where the
1468 applicant proposes to keep, store, and sell liquor;
1469 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1470 form satisfactory to the department;
1471 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1472 $500,000 per occurrence and $1,000,000 in the aggregate;
1473 (j) a signed consent form stating that the restaurant will permit any authorized
1474 representative of the commission, department, or any law enforcement officer unrestricted right
1475 to enter the restaurant;
1476 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1477 company, proper verification evidencing that the person or persons signing the restaurant
1478 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1479 company; and
1480 (l) any other information the commission or department may require.
1481 (2) (a) All restaurant liquor licenses expire on October 31 of each year.
1482 (b) [Persons] A person desiring to renew [their] the person's restaurant liquor license

1483 shall by no later than September 30 submit:
1484 (i) a completed renewal application to the department; and
1485 (ii) a renewal fee in the following amount:
1486 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1487 under $5,000 $750
1488 equals or exceeds $5,000 but less than $10,000 $900
1489 equals or exceeds $10,000 but less than $25,000 $1,250
1490 equals or exceeds $25,000 $1,500
1491 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1492 the license effective on the date the existing license expires.
1493 (d) [Renewal applications] A renewal application shall be in a form as prescribed by
1494 the department.
1495 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1496 suspend or revoke [any] a restaurant liquor license if the restaurant liquor licensee does not
1497 immediately notify the department of any change in:
1498 (a) ownership of the restaurant;
1499 (b) for a corporate owner, the:
1500 (i) corporate officers or directors; or
1501 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1502 corporation; or
1503 (c) for a limited liability company:
1504 (i) managers; or
1505 (ii) members owning at least 20% of the limited liability company.
1506 Section 25. Section 32A-4-104 is amended to read:
1507 32A-4-104. Commission and department duties before granting licenses.
1508 (1) (a) Before a restaurant liquor license may be granted by the commission, the
1509 department shall conduct an investigation and may hold public hearings for the purpose of
1510 gathering information and making recommendations to the commission as to whether or not a
1511 license should be granted. [This]
1512 (b) The department shall forward the information [shall be forwarded] and
1513 recommendations described in Subsection (1)(a) to the commission to aid in [its] the

1514 commission's determination.
1515 (2) Before issuing [any] a restaurant liquor license, the commission shall:
1516 (a) determine that:
1517 (i) the applicant has complied with all basic qualifications and requirements for making
1518 application for a license as provided by Sections 32A-4-102 and 32A-4-103 [,]; and [that]
1519 (ii) the application is complete;
1520 (b) consider the locality within which the proposed restaurant liquor outlet is located,
1521 including [but not limited to]:
1522 (i) physical characteristics such as:
1523 (A) condition of the premises[,];
1524 (B) square footage[,]; and
1525 (C) parking availability; and
1526 (ii) operational factors such as:
1527 (A) tourist traffic[,];
1528 (B) proximity to and density of other state stores, package agencies, and outlets[,];
1529 (C) demographics[,];
1530 (D) population to be served[,]; and
1531 (E) the extent of and proximity to any [school, church, public library, public
1532 playground, or park] community location;
1533 (c) consider the applicant's ability to manage and operate a restaurant liquor license,
1534 including [but not limited to]:
1535 (i) management experience[,];
&n