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H.B. 347
This document includes House Committee Amendments incorporated into the bill on Tue,
Feb 24, 2009 at 3:30 PM by ddonat. -->
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ALCOHOLIC BEVERAGE CONTROL ACT
2
MODIFICATIONS
3
2009 GENERAL SESSION
4
STATE OF UTAH
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Chief Sponsor: Gregory H. Hughes
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Senate Sponsor:
____________
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LONG TITLE
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General Description:
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This bill modifies the Alcoholic Beverage Control Act.
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Highlighted Provisions:
12
This bill:
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. modifies definition provisions;
14
. provides for electronic verification of proof of age by social on-premise liquor
15
licensees;
16
. addresses a bar structure in restaurants, including access by minors;
17
. creates a new social on-premise liquor license, which includes two types of classes,
18
including:
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. authorizing the commission to grant the license;
20
. providing application and renewal requirements;
21
. establishing qualifications;
22
. establishing the commission and department duties before granting a license;
23
. requiring a bond;
24
. imposing operational requirements; and
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. providing a transition from private club licenses or restaurant liquor licenses to
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the new social on-premise liquor license;
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. modifies the provisions related to a private club licensee, including:
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. modifying the number and requirements for classes of licenses;
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. changing renewal fees; and
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. changing operational requirements;
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. establishes requirements for renting or leasing a social on-premise liquor licensee
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premises or private club premises;
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. expands licenses subject to protections for employees who exercise judgment; and
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. makes technical and conforming amendments.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides an effective date.
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Utah Code Sections Affected:
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AMENDS:
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11-10-1, as last amended by Laws of Utah 1990, Chapter 23
42
26-38-2, as last amended by Laws of Utah 2006, Chapter 202
43
26-38-3, as last amended by Laws of Utah 2007, Chapter 20
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32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
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32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
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32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
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32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
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32A-1-603, as last amended by Laws of Utah 2008, Chapter 382
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32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
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32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
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32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
52
32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
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32A-5-104, as last amended by Laws of Utah 2008, Chapter 391
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32A-5-106, as renumbered and amended by Laws of Utah 1990, Chapter 23
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32A-5-107, as last amended by Laws of Utah 2008, Chapters 266 and 391
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32A-12-209.5, as last amended by Laws of Utah 2008, Chapter 3
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32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
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32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
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32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
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32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
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ENACTS:
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32A-1-304.5, Utah Code Annotated 1953
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32A-4-501, Utah Code Annotated 1953
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32A-4-502, Utah Code Annotated 1953
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32A-4-503, Utah Code Annotated 1953
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32A-4-504, Utah Code Annotated 1953
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32A-4-505, Utah Code Annotated 1953
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32A-4-506, Utah Code Annotated 1953
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32A-4-507, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
11-10-1
is amended to read:
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11-10-1. Business license required -- Authorization for issuance, denial,
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suspension, or revocation by local authority.
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(1) As used in this chapter, ["club," "local authority," "restaurant," and "person"] the
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following have the meaning set forth in Section
32A-1-105
[.]:
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(a) "local authority";
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(b) "person";
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(c) "private club";
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(d) "restaurant"; and
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(e) "social on-premise liquor licensee."
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(2) A person may not operate an association, restaurant, private club, social on-premise
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liquor licensee, or similar business that allows customers, members, guests, [visitors,] or other
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persons to possess or consume alcoholic beverages on the private club, association, restaurant,
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social on-premise liquor license, or similar business premises without a business license.
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(3) Any local authority may issue a business license to any person who owns or
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operates an association, restaurant, private club, social on-premise liquor license, or similar
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business that allows the customers, members, guests, [visitors,] or other persons to hold, store,
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possess, or consume alcoholic beverages on the premises. This license does not permit any
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person to hold, store, possess, or consume alcoholic beverages on the premises other than as
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provided in Title 32A, [the] Alcoholic Beverage Control Act.
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(4) Any local authority may suspend or revoke a business license for a violation of
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Title 32A, [the] Alcoholic Beverage Control Act.
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(5) Each local authority shall set policy by written rules that establish criteria and
95
procedures for granting, denying, suspending, or revoking licenses issued under this chapter.
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(6) A license issued under this section constitutes consent of the local authority within
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the meaning of Title 32A, [the] Alcoholic Beverage Control Act.
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Section 2.
Section
26-38-2
is amended to read:
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26-38-2. Definitions.
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As used in this chapter:
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(1) "Place of public access" means any enclosed indoor place of business, commerce,
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banking, financial service, or other service-related activity, whether publicly or privately owned
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and whether operated for profit or not, to which persons not employed at the place of public
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access have general and regular access or which the public uses, including:
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(a) buildings, offices, shops, elevators, or restrooms;
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(b) means of transportation or common carrier waiting rooms;
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(c) restaurants, cafes, or cafeterias;
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(d) taverns as defined in Section
32A-1-105
, or cabarets;
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(e) shopping malls, retail stores, grocery stores, or arcades;
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(f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
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sites, auditoriums, or arenas;
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(g) barber shops, hair salons, or laundromats;
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(h) sports or fitness facilities;
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(i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
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breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
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hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
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of these;
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(j) (i) any child care facility or program subject to licensure or certification under this
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title, including those operated in private homes, when any child cared for under that license is
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present; and
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(ii) any child care, other than child care as defined in Section
26-39-102
, that is not
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subject to licensure or certification under this title, when any child cared for by the provider,
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other than the child of the provider, is present;
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(k) public or private elementary or secondary school buildings and educational
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facilities or the property on which those facilities are located;
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(l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
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religious organization when used solely by the organization members or their guests or
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families;
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(m) any facility rented or leased for private functions from which the general public is
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excluded and arrangements for the function are under the control of the function sponsor;
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(n) any workplace that is not a place of public access or a publicly owned building or
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office but has one or more employees who are not owner-operators of the business; [and]
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(o) any area where the proprietor or manager of the area has posted a conspicuous sign
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stating "no smoking", "thank you for not smoking", or similar statement[.];
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(p) a social on-premise liquor licensee licensed under Title 32A, Chapter 4, Part 5,
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Social On-premise Liquor Licenses; and
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[(p) any] (q) a private club licensed under Title 32A, Chapter 5, Private Club [Liquor]
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Licenses.
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(2) "Publicly owned building or office" means any enclosed indoor place or portion of
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a place owned, leased, or rented by any state, county, or municipal government, or by any
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agency supported by appropriation of, or by contracts or grants from, funds derived from the
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collection of federal, state, county, or municipal taxes.
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(3) "Smoking" means the possession of any lighted tobacco product in any form.
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Section 3.
Section
26-38-3
is amended to read:
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26-38-3. Restriction on smoking in public places and in specified places --
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Exceptions.
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(1) Except as provided in Subsection (2), smoking is prohibited in all enclosed indoor
148
places of public access and publicly owned buildings and offices.
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(2) Subsection (1) does not apply to:
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(a) areas not commonly open to the public of owner-operated businesses having no
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employees other than the owner-operator;
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(b) guest rooms in hotels, motels, "bed and breakfast" lodging facilities, and other
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similar lodging facilities, but smoking is prohibited under Subsection (1) in the common areas
154
of these facilities, including dining areas and lobby areas; and
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[(c) before January 1, 2009, taverns, as defined in Section
32A-1-105
, that are:]
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[(i) licensed on or before May 15, 2006; or]
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[(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
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ownership;]
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[(d) before January 1, 2009, class D private clubs, as defined in Section
32A-5-101
,
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that are:]
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[(i) licensed on or before May 15, 2006; or]
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[(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
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ownership;]
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[(e) before January 1, 2009, class B private clubs, as defined in Section
32A-5-101
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that:]
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[(i) are licensed:]
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[(A) on or before May 15, 2006; or]
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[(B) on or before May 15, 2006 and after May 15, 2006 undergo a change in
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ownership; and]
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[(ii) do not permit an individual under the age of 21 in the class B private club, unless
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the individual is active military; and]
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[(f)] (c) separate enclosed smoking areas:
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(i) located in the passenger terminals of an international airport located in the city of
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the first class;
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(ii) vented directly to the outdoors; and
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(iii) certified, by a heating, ventilation, and air conditioning engineer licensed by the
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state, to prevent the drift of any smoke to any nonsmoking area of the terminal.
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Section 4.
Section
32A-1-105
is amended to read:
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32A-1-105. Definitions.
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As used in this title:
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(1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
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at retail, for consumption on its premises located at an international airport with a United States
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Customs office on the premises of the international airport.
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(2) "Alcoholic beverage" means the following as the term is defined in this section:
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(a) beer;
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(b) flavored malt beverage; and
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(c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
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(3) (a) "Alcoholic product" means a product that:
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(i) contains at least .5% of alcohol by volume; and
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(ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
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process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
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in an amount greater than the amount prescribed in Subsection (3)(a)(i).
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(b) "Alcoholic product" does not include any of the following common items that
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otherwise come within the definition of an alcoholic product:
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(i) except as provided in Subsection (3)(c), extract;
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(ii) vinegar;
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(iii) cider;
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(iv) essence;
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(v) tincture;
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(vi) food preparation; or
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(vii) an over-the-counter drug or medicine.
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(c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
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product when it is used as a flavoring in the manufacturing of an alcoholic product.
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(4) "Bar" means a counter or similar structure:
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(a) at which an alcoholic beverage is:
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(i) stored; or
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(ii) dispensed; or
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(b) from which an alcoholic beverage is served.
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(5) (a) Subject to Subsection (5)(d), "beer" means a product that:
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(i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
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volume or 3.2% by weight; and
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(ii) is obtained by fermentation, infusion, or decoction of malted grain.
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(b) Beer may or may not contain hops or other vegetable products.
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(c) Beer includes a product that:
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(i) contains alcohol in the percentages described in Subsection (5)(a); and
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(ii) is referred to as:
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(A) beer;
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(B) ale;
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(C) porter;
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(D) stout;
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(E) lager; or
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(F) a malt or malted beverage.
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(d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
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beverage.
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(6) (a) "Beer retailer" means a business that is:
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(i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
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consumption on or off the business premises; and
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(ii) licensed to sell beer by:
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(A) the commission;
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(B) a local authority; or
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(C) both the commission and a local authority.
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(b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
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beer to a patron for consumption off the beer retailer's premises.
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(ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
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(c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
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patron for consumption on the beer retailer's premises, regardless of whether the business sells
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beer for consumption off the beer retailer's premises.
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(7) "Billboard" means a public display used to advertise including:
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(a) a light device;
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(b) a painting;
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(c) a drawing;
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(d) a poster;
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(e) a sign;
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(f) a signboard; or
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(g) a scoreboard.
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(8) "Brewer" means a person engaged in manufacturing:
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(a) beer;
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(b) heavy beer; or
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(c) a flavored malt beverage.
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(9) "Cash bar" means the service of an alcoholic beverage:
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(a) at:
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(i) a banquet; or
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(ii) a temporary event for which a permit is issued under this title; and
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(b) if an attendee at the banquet or temporary event is charged for the alcoholic
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beverage.
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(10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
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a bus company to a group of persons pursuant to a common purpose:
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(a) under a single contract;
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(b) at a fixed charge in accordance with the bus company's tariff; and
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(c) for the purpose of giving the group of persons the exclusive use of the passenger
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bus, coach, or other motor vehicle and a driver to travel together to one or more specified
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destinations.
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(11) "Church" means a building:
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(a) set apart for the purpose of worship;
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(b) in which religious services are held;
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(c) with which clergy is associated; and
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(d) which is tax exempt under the laws of this state.
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[(12) "Club" and "private club" means any of the following organized primarily for the
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benefit of its members:]
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[(a) a social club;]
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[(b) a recreational association;]
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[(c) a fraternal association;]
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[(d) an athletic association; or]
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[(e) a kindred association.]
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[(13)] (12) "Commission" means the Alcoholic Beverage Control Commission.
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[(14)] (13) "Community location" means:
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(a) a public or private school;
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(b) a church;
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(c) a public library;
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(d) a public playground; or
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(e) a public park.
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[(15)] (14) "Community location governing authority" means:
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(a) the governing body of the community location; or
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(b) if the commission does not know who is the governing body of a community
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location, a person who appears to the commission to have been given on behalf of the
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community location authority to prohibit an activity at the community location.
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[(16)] (15) "Department" means the Department of Alcoholic Beverage Control.
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[(17)] (16) "Disciplinary proceeding" means an adjudicative proceeding permitted
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under this title:
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(a) against:
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(i) a permittee;
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(ii) a licensee;
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(iii) a manufacturer;
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(iv) a supplier;
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(v) an importer;
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(vi) an out-of-state brewer holding a certificate of approval under Section
32A-8-101
;
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or
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(vii) an officer, employee, or agent of:
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(A) a person listed in Subsections [(17)] (16)(a)(i) through (vi); or
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(B) a package agent; and
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(b) that is brought on the basis of a violation of this title.
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[(18)] (17) "Director," unless the context requires otherwise, means the director
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appointed under Section
32A-1-108
.
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[(19)] (18) "Distressed merchandise" means an alcoholic beverage in the possession of
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the department that is saleable, but for some reason is unappealing to the public.
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[(20)] (19) "Flavored malt beverage" means a beverage:
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(a) that contains at least .5% alcohol by volume;
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(b) that is treated by processing, filtration, or another method of manufacture that is not
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generally recognized as a traditional process in the production of a beer as described in 27
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C.F.R. Sec. 25.55;
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(c) to which is added a flavor or other ingredient containing alcohol, except for a hop
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extract; and
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(d) (i) for which the producer is required to file a formula for approval with the United
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States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
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(ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
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[(21)] (20) "Guest" means [a person accompanied by an active member or visitor of a
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club who enjoys only those privileges derived from the host for the duration of the visit to the
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club] a guest of a member of a private club that meets the requirements of Subsection
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32A-5-107
(5).
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[(22)] (21) (a) "Heavy beer" means a product that:
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(i) contains more than 4% alcohol by volume; and
322
(ii) is obtained by fermentation, infusion, or decoction of malted grain.
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(b) "Heavy beer" is considered "liquor" for the purposes of this title.
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[(23)] (22) "Hosted bar" means the service of an alcoholic beverage:
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(a) without charge; and
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(b) at a:
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(i) banquet; or
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(ii) privately hosted event.
329
[(24)] (23) "Identification card" means an identification card issued under Title 53,
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Chapter 3, Part 8, Identification Card Act.
331
[(25)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
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an alcoholic beverage is prohibited by:
333
(a) law; or
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(b) court order.
335
[(26)] (25) "Intoxicated" means that to a degree that is unlawful under Section
336
76-9-701
a person is under the influence of:
337
(a) an alcoholic beverage;
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(b) a controlled substance;
339
(c) a substance having the property of releasing toxic vapors; or
340
(d) a combination of Subsections [(26)] (25)(a) through (c).
341
[(27)] (26) "Licensee" means a person [issued] granted a license by the commission to
342
sell, manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
343
controlled by the person.
344
[(28)] (27) "Limousine" means a motor vehicle licensed by the state or a local
345
authority, other than a bus or taxicab:
346
(a) in which the driver and a passenger are separated by a partition, glass, or other
347
barrier; and
348
(b) that is provided by a company to one or more individuals at a fixed charge in
349
accordance with the company's tariff for the purpose of giving the one or more individuals the
350
exclusive use of the limousine and a driver to travel to one or more specified destinations.
351
[(29)] (28) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
352
fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
353
vinous, or fermented, or other drink, or drinkable liquid that:
354
(A) contains at least .5% alcohol by volume; and
355
(B) is suitable to use for beverage purposes.
356
(ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
357
(b) "Liquor" does not include a beverage defined as a beer.
358
[(30)] (29) "Local authority" means:
359
(a) the governing body of the county if the premises are located in an unincorporated
360
area of a county; or
361
(b) the governing body of the city or town if the premises are located in an incorporated
362
city or a town.
363
[(31)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
364
ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
365
others.
366
[(32)] (31) "Member" means [a person] an individual who, after paying regular dues,
367
has full privileges of a private club under this title.
368
[(33)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,
369
center, or homeport facility for a ship:
370
(i) (A) under the control of the United States Department of Defense; or
371
(B) of the National Guard;
372
(ii) that is located within the state; and
373
(iii) including a leased facility.
374
(b) "Military installation" does not include a facility used primarily for:
375
(i) civil works;
376
(ii) a rivers and harbors project; or
377
(iii) a flood control project.
378
[(34)] (33) "Minor" means an individual under the age of 21 years.
379
[(35)] (34) "Nude," "nudity," or "state of nudity" means:
380
(a) the appearance of:
381
(i) the nipple or areola of a female human breast;
382
(ii) a human genital;
383
(iii) a human pubic area; or
384
(iv) a human anus; or
385
(b) a state of dress that fails to opaquely cover:
386
(i) the nipple or areola of a female human breast;
387
(ii) a human genital;
388
(iii) a human pubic area; or
389
(iv) a human anus.
390
[(36)] (35) "Outlet" means a location other than a state store or package agency where
391
an alcoholic beverage is sold pursuant to a license [issued] granted by the commission.
392
[(37)] (36) "Package" means any of the following containing liquor:
393
(a) a container;
394
(b) a bottle;
395
(c) a vessel; or
396
(d) other receptacle.
397
[(38)] (37) "Package agency" means a retail liquor location operated:
398
(a) under a contractual agreement with the department; and
399
(b) by a person:
400
(i) other than the state; and
401
(ii) who is authorized by the commission to sell package liquor for consumption off the
402
premises of the package agency.
403
[(39)] (38) "Package agent" means a person permitted by the commission to operate a
404
package agency pursuant to a contractual agreement with the department to sell liquor from
405
premises that the package agent shall provide and maintain.
406
[(40)] (39) "Permittee" means a person issued a permit by the commission to perform
407
an act or exercise a privilege as specifically granted in the permit.
408
[(41)] (40) "Person" means an individual, partnership, firm, corporation, limited
409
liability company, association, business trust, or other form of business enterprise, including a
410
receiver or trustee, and the plural as well as the singular number, unless the intent to give a
411
more limited meaning is disclosed by the context.
412
[(42)] (41) "Premises" means a building, enclosure, room, or equipment used in
413
connection with the sale, storage, service, manufacture, distribution, or consumption of an
414
alcoholic product, unless otherwise defined in this title or in the rules adopted by the
415
commission.
416
[(43)] (42) "Prescription" means a writing in legal form, signed by a physician or
417
dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
418
(43) "Private club" is as defined in Section
32A-5-101
.
419
(44) (a) "Privately hosted event" or "private social function" means a specific social,
420
business, or recreational event:
421
(i) for which an entire room, area, or hall is leased or rented in advance by an identified
422
group; and
423
(ii) that is limited in attendance to people who are specifically designated and their
424
guests.
425
(b) "Privately hosted event" and "private social function" does not include an event to
426
which the general public is invited, whether for an admission fee or not.
427
(45) (a) "Proof of age" means:
428
(i) an identification card;
429
(ii) an identification that:
430
(A) is substantially similar to an identification card;
431
(B) is issued in accordance with the laws of a state other than Utah in which the
432
identification is issued;
433
(C) includes date of birth; and
434
(D) has a picture affixed;
435
(iii) a valid driver license certificate that:
436
(A) includes date of birth;
437
(B) has a picture affixed; and
438
(C) is issued:
439
(I) under Title 53, Chapter 3, Uniform Driver License Act; or
440
(II) in accordance with the laws of the state in which it is issued;
441
(iv) a military identification card that:
442
(A) includes date of birth; and
443
(B) has a picture affixed; or
444
(v) a valid passport.
445
(b) "Proof of age" does not include a driving privilege card issued in accordance with
446
Section
53-3-207
.
447
(46) (a) "Public building" means a building or permanent structure owned or leased by
448
the state, a county, or local government entity that is used for:
449
(i) public education;
450
(ii) transacting public business; or
451
(iii) regularly conducting government activities.
452
(b) "Public building" does not mean or refer to a building owned by the state or a
453
county or local government entity when the building is used by a person, in whole or in part,
454
for a proprietary function.
455
(47) "Representative" means an individual who is compensated by salary, commission,
456
or other means for representing and selling an alcoholic beverage product of a manufacturer,
457
supplier, or importer of liquor including:
458
(a) wine;
459
(b) heavy beer; or
460
(c) [on or after October 1, 2008,] a flavored malt beverage.
461
(48) "Residence" means a person's principal place of abode within Utah.
462
(49) "Restaurant" means a business establishment:
463
(a) where a variety of foods [is] are prepared and complete meals are served to the
464
general public;
465
(b) located on a premises having adequate culinary fixtures for food preparation and
466
dining accommodations; and
467
(c) that is engaged primarily in serving meals to the general public.
468
(50) "Retailer" means a person engaged in the sale or distribution of an alcoholic
469
beverage to a consumer.
470
(51) (a) "Sample" includes:
471
(i) a department sample; and
472
(ii) an industry representative sample.
473
(b) "Department sample" means liquor that is placed in the possession of the
474
department for testing, analysis, and sampling including:
475
(i) wine;
476
(ii) heavy beer; or
477
(iii) [on or after October 1, 2008,] a flavored malt beverage.
478
(c) "Industry representative sample" means liquor that is placed in the possession of the
479
department:
480
(i) for testing, analysis, and sampling by a local industry representative on the premises
481
of the department to educate the local industry representative of the quality and characteristics
482
of the product; and
483
(ii) including:
484
(A) wine;
485
(B) heavy beer; or
486
(C) [on or after October 1, 2008,] a flavored malt beverage.
487
(52) (a) "School" means a building used primarily for the general education of minors.
488
(b) "School" does not include:
489
(i) a nursery school;
490
(ii) an infant day care center; or
491
(iii) a trade or technical school.
492
(53) "Sell," "sale," and "to sell" means a transaction, exchange, or barter whereby, for
493
consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
494
ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
495
done by a person as a principal, proprietor, or as an agent, servant, or employee, unless
496
otherwise defined in this title or the rules made by the commission.
497
(54) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
498
which opaque clothing covers no more than:
499
(a) the nipple and areola of the female human breast in a shape and color other than the
500
natural shape and color of the nipple and areola; and
501
(b) the human genitals, pubic area, and anus:
502
(i) with no less than the following at its widest point:
503
(A) four inches coverage width in the front of the human body; and
504
(B) five inches coverage width in the back of the human body; and
505
(ii) with coverage that does not taper to less than one inch wide at the narrowest point.
506
(55) "Sexually oriented entertainer" means a person who while in a state of seminudity
507
appears at or performs:
508
(a) for the entertainment of one or more patrons;
509
(b) on the premises of:
510
(i) a class [D private club] 2 social on-premise liquor license as defined in [Subsection
511
32A-5-101
(3)] Section
32A-4-501
; or
512
(ii) a tavern;
513
(c) on behalf of or at the request of the licensee described in Subsection (55)(b);
514
(d) on a contractual or voluntary basis; and
515
(e) whether or not the person is designated:
516
(i) an employee of the licensee described in Subsection (55)(b);
517
(ii) an independent contractor of the licensee described in Subsection (55)(b);
518
(iii) an agent of the licensee described in Subsection (55)(b); or
519
(iv) otherwise of the licensee described in Subsection (55)(b).
520
(56) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
521
beer, heavy beer, and flavored malt beverages per year.
522
(57) "Social on-premise liquor licensee" means a person licensed under Chapter 4, Part
523
5, Social On-premise Liquor Licenses.
524
[(57)] (58) (a) "Spirituous liquor" means liquor that is distilled.
525
(b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
526
U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
527
[(58)] (59) (a) "State label" means the official label designated by the commission
528
affixed to a liquor container sold in the state.
529
(b) "State label" includes the department identification mark and inventory control
530
number.
531
[(59)] (60) (a) "State store" means a facility for the sale of package liquor:
532
(i) located on premises owned or leased by the state; and
533
(ii) operated by a state employee.
534
(b) "State store" does not apply to a:
535
(i) licensee;
536
(ii) permittee; or
537
(iii) package agency.
538
[(60)] (61) "Supplier" means a person selling an alcoholic beverage to the department.
539
[(61)] (62) (a) "Tavern" means a business establishment that is:
540
(i) engaged primarily in the retail sale of beer to a public patron for consumption on the
541
establishment's premises; and
542
(ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
543
(b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
544
revenue of the sale of food, although food need not be sold in the establishment:
545
(i) a beer bar;
546
(ii) a parlor;
547
(iii) a lounge;
548
(iv) a cabaret; or
549
(v) a nightclub.
550
[(62)] (63) "Temporary domicile" means the principal place of abode within Utah of a
551
person who does not have a present intention to continue residency within Utah permanently or
552
indefinitely.
553
[(63)] (64) "Unsaleable liquor merchandise" means merchandise that:
554
(a) is unsaleable because the merchandise is:
555
(i) unlabeled;
556
(ii) leaky;
557
(iii) damaged;
558
(iv) difficult to open; or
559
(v) partly filled;
560
(b) is in a container:
561
(i) having faded labels or defective caps or corks;
562
(ii) in which the contents are:
563
(A) cloudy;
564
(B) spoiled; or
565
(C) chemically determined to be impure; or
566
(iii) that contains:
567
(A) sediment; or
568
(B) a foreign substance; or
569
(c) is otherwise considered by the department as unfit for sale.
570
[(64) "Visitor" means an individual that in accordance with Section
32A-5-107
holds
571
limited privileges in a private club by virtue of a visitor card.]
572
(65) "Warehouser" means a person, other than a licensed manufacturer, engaged in the
573
importation for sale, storage, or distribution of liquor regardless of amount.
574
(66) (a) "Wholesaler" means a person engaged in the importation for sale, or in the sale
575
of beer in wholesale or jobbing quantities to one or more retailers.
576
(b) Notwithstanding Subsection (66)(a), "wholesaler" does not include a small brewer
577
selling beer manufactured by that brewer.
578
(67) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
579
natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
580
another ingredient is added.
581
(b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
582
provided in this title.
583
Section 5.
Section
32A-1-107
is amended to read:
584
32A-1-107. Powers and duties of the commission.
585
(1) The commission shall:
586
(a) act as a general policymaking body on the subject of alcoholic product control;
587
(b) adopt and issue policies, directives, rules, and procedures;
588
(c) set policy by written rules that establish criteria and procedures for:
589
(i) granting, denying, suspending, or revoking [permits, licenses, certificates of
590
approval, and package agencies] a permit, license, certificate of approval, or package agency;
591
(ii) controlling liquor merchandise inventory including:
592
(A) listing and delisting [products] a product;
593
(B) the procedures for testing a new [products] product;
594
(C) purchasing policy;
595
(D) turnover requirements for regularly coded products to be continued; and
596
(E) the disposition of discontinued, distressed, or unsaleable merchandise; and
597
(iii) determining the location of [state stores, package agencies, and outlets] a state
598
store, package agency, or outlet;
599
(d) decide within the limits and under the conditions imposed by this title, the number
600
and location of state stores, package agencies, and outlets established in the state;
601
(e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
602
certificates of approval, and package agencies for the purchase, sale, storage, service,
603
manufacture, distribution, and consumption of an alcoholic [products] product:
604
(i) a package [agencies] agency;
605
(ii) a restaurant [licenses] liquor license;
606
(iii) an airport lounge [licenses] license;
607
(iv) a limited restaurant [licenses] license;
608
(v) an on-premise banquet [licenses] license;
609
(vi) a social on-premise liquor license;
610
[(vi)] (vii) a private club [licenses] license;
611
[(vii)] (viii) an on-premise beer retailer [licenses] license;
612
[(viii)] (ix) a temporary special event beer [permits] permit;
613
[(ix)] (x) a special use [permits] permit;
614
[(x)] (xi) a single event [permits] permit;
615
[(xi)] (xii) a manufacturing [licenses] license;
616
[(xii)] (xiii) a liquor warehousing [licenses] license;
617
[(xiii)] (xiv) a beer wholesaling [licenses] license; and
618
[(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
619
(f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
620
package agencies, and outlets;
621
(g) issue and distribute price lists showing the price to be paid by [purchasers] a
622
purchaser for each class, variety, or brand of liquor kept for sale by the department;
623
(h) (i) require the director to follow sound management principles; and
624
(ii) require periodic reporting from the director to ensure that:
625
(A) sound management principles are being followed; and
626
(B) policies established by the commission are being observed;
627
(i) (i) receive, consider, and act in a timely manner upon [all] reports,
628
recommendations, and matters submitted by the director to the commission; and
629
(ii) do [all] the things necessary to support the department in properly performing the
630
department's duties and responsibilities;
631
(j) obtain temporarily and for special purposes the services of [experts and persons] an
632
expert or a person engaged in the practice of a profession or who possess any needed skills,
633
talents, or abilities if:
634
(i) considered expedient; and
635
(ii) approved by the governor;
636
(k) prescribe the duties of a departmental [officials] official authorized to assist the
637
commission in issuing [permits, licenses, certificates of approval, and package agencies] a
638
permit, license, certificate of approval, or package agency under this title;
639
(l) prescribe, consistent with this title, the fees payable for:
640
(i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
641
certificate of approval, or package agency issued under this title; or
642
(ii) anything done or permitted to be done under this title;
643
(m) prescribe the conduct, management, and equipment of any premises upon which an
644
alcoholic [beverages] beverage may be sold, consumed, served, or stored;
645
(n) make rules governing the credit terms of beer sales to retailers within the state;
646
(o) require that each of the following, where required in this title, display in a
647
prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
648
or drugs is a serious crime that is prosecuted aggressively in Utah.":
649
(i) a state store;
650
(ii) a permittee;
651
(iii) a licensee; and
652
(iv) a package agency; and
653
(p) subject to Subsection (4) and as provided in this title, impose fines against:
654
(i) a permittee, licensee, certificate holder, or package agent described in Subsection
655
(1)(e); or
656
(ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
657
package agent described in Subsection (1)(p)(i).
658
(2) The power of the commission to do the following is plenary, except as otherwise
659
provided by this title, and not subject to review:
660
(a) establish a state [stores] store;
661
(b) create a package [agencies] agency;
662
(c) grant authority to operate a package [agencies] agency; and
663
(d) grant or deny [permits, licenses, and certificates of approval] a permit, license, or
664
certificate of approval.
665
(3) The commission may appoint a qualified hearing [examiners] examiner to conduct
666
[any] a suspension or revocation [hearings] hearing required by law.
667
(4) (a) In [any] a case [where] when the commission is given the power to suspend
668
[any] a permit, license, certificate of approval, or package agency, the commission may impose
669
a fine in addition to or in lieu of suspension.
670
(b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
671
(i) [any] a single Notice of Agency Action; or
672
(ii) a single action against a package agency.
673
(c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
674
for each violation.
675
Section 6.
Section
32A-1-119
is amended to read:
676
32A-1-119. Disciplinary proceedings -- Procedure.
677
(1) As used in Subsection (4), "final adjudication" means an adjudication for which a
678
final unappealable judgment or order is issued.
679
(2) (a) Subject to Section
32A-1-119.5
, the following may conduct an adjudicative
680
proceeding to inquire into a matter necessary and proper for the administration of this title and
681
rules adopted under this title:
682
(i) the commission;
683
(ii) a hearing examiner appointed by the commission for the purposes provided in
684
Subsection
32A-1-107
(3);
685
(iii) the director; and
686
(iv) the department.
687
(b) Except as provided in this section or Section
32A-3-106
, the following shall
688
comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
689
Procedures Act, in an adjudicative proceeding:
690
(i) the commission;
691
(ii) a hearing examiner appointed by the commission;
692
(iii) the director; and
693
(iv) the department.
694
(c) Except where otherwise provided by law, an adjudicative proceeding before the
695
commission or a hearing examiner appointed by the commission shall be:
696
(i) video or audio recorded; and
697
(ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
698
Open and Public Meetings Act.
699
(d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
700
concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
701
Personnel Management Act.
702
(e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
703
conducted in accordance with rules, policies, and procedures made by the commission,
704
director, or department.
705
(3) (a) Subject to Section
32A-1-119.5
, a disciplinary proceeding shall be conducted
706
under the authority of the commission, which is responsible for rendering a final decision and
707
order on a disciplinary matter.
708
(b) (i) Nothing in this section precludes the commission from appointing a necessary
709
officer, including a hearing examiner, from within or without the department, to administer the
710
disciplinary proceeding process.
711
(ii) A hearing examiner appointed by the commission:
712
(A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
713
(B) shall submit to the commission a report including:
714
(I) findings of fact determined on the basis of a preponderance of the evidence
715
presented at the hearing;
716
(II) conclusions of law; and
717
(III) recommendations.
718
(c) Nothing in this section precludes the commission, after the commission renders its
719
final decision and order, from having the director prepare, issue, and cause to be served on the
720
parties the final written order on behalf of the commission.
721
(4) Subject to Section
32A-1-119.5
:
722
(a) The department may initiate a disciplinary proceeding described in Subsection
723
(4)(b) if the department receives:
724
(i) a report from a government agency, peace officer, examiner, or investigator alleging
725
that a person listed in Subsections
32A-1-105
[(17)](16)(a)(i) through (vii) violated this title or
726
the rules of the commission;
727
(ii) a final adjudication of criminal liability against a person listed in Subsections
728
32A-1-105
[(17)](16)(a)(i) through (vii) based on an alleged violation of this title; or
729
(iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
730
Liability, against a person listed in Subsections
32A-1-105
[(17)](16)(a)(i) through (vii) based
731
on an alleged violation of this title.
732
(b) The department may initiate a disciplinary proceeding if the department receives an
733
item listed in Subsection (4)(a) to determine:
734
(i) whether a person listed in Subsections
32A-1-105
[(17)](16)(a)(i) through (vii)
735
violated this title or rules of the commission; and
736
(ii) if a violation is found, the appropriate sanction to be imposed.
737
(5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
738
(i) if required by law;
739
(ii) before revoking or suspending a permit, license, or certificate of approval issued
740
under this title; or
741
(iii) before imposing a fine against a person listed in Subsections
742
32A-1-105
[(17)](16)(a)(i) through (vii).
743
(b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
744
hearing after receiving proper notice is an admission of the charged violation.
745
(c) The validity of a disciplinary proceeding is not affected by the failure of a person to
746
attend or remain in attendance.
747
(d) The commission or an appointed hearing examiner shall preside over a disciplinary
748
proceeding hearing.
749
(e) A disciplinary proceeding hearing may be closed only after the commission or
750
hearing examiner makes a written finding that the public interest in an open hearing is clearly
751
outweighed by factors enumerated in the closure order.
752
(f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
753
hearing may:
754
(A) administer oaths or affirmations;
755
(B) take evidence;
756
(C) take a deposition within or without this state; and
757
(D) require by subpoena from a place within this state:
758
(I) the testimony of a person at a hearing; and
759
(II) the production of a book, record, paper, contract, agreement, document, or other
760
evidence considered relevant to the inquiry.
761
(ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
762
produce a book, paper, document, or tangible thing as required in the subpoena.
763
(iii) A witness subpoenaed or called to testify or produce evidence who claims a
764
privilege against self-incrimination may not be compelled to testify, but the commission or the
765
hearing examiner shall file a written report with the county attorney or district attorney in the
766
jurisdiction where the privilege is claimed or where the witness resides setting forth the
767
circumstance of the claimed privilege.
768
(iv) (A) A person is not excused from obeying a subpoena without just cause.
769
(B) A district court within the judicial district in which a person alleged to be guilty of
770
willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
771
the party issuing the subpoena, may issue an order requiring the person to:
772
(I) appear before the issuing party; and
773
(II) (Aa) produce documentary evidence if so ordered; or
774
(Bb) give evidence regarding the matter in question.
775
(C) Failure to obey an order of the court may be punished by the court as contempt.
776
(g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
777
examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
778
(ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
779
recommend a penalty more severe than that initially sought by the department in the notice of
780
agency action.
781
(iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
782
shall be served upon the respective parties.
783
(iv) The respondent and the department shall be given reasonable opportunity to file a
784
written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
785
before final commission action.
786
(h) In a case heard by the commission, it shall issue its final decision and order in
787
accordance with Subsection (3).
788
(6) (a) The commission shall:
789
(i) render a final decision and order on a disciplinary action; and
790
(ii) cause its final order to be prepared in writing, issued, and served on all parties.
791
(b) An order of the commission is considered final on the date the order becomes
792
effective.
793
(c) If the commission is satisfied that a person listed in Subsections
794
32A-1-105
[(17)](16)(a)(i) through (vii) violated this title or the commission's rules, in
795
accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
796
(i) suspend or revoke the permit, license, or certificate of approval;
797
(ii) impose a fine against a person listed in Subsections
32A-1-105
[(17)](16)(a)(i)
798
through (vii);
799
(iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
800
licensee, or certificate holder; or
801
(iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
802
(d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
803
32A-1-107
(1)(p) and (4).
804
(e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
805
licensee shall prominently post a sign provided by the department:
806
(A) during the suspension; and
807
(B) at the entrance of the premises of the permittee or licensee.
808
(ii) The sign required by this Subsection (6)(e) shall:
809
(A) read "The Utah Alcoholic Beverage Control Commission has suspended the
810
alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
811
sold, served, furnished, or consumed on these premises during the period of suspension."; and
812
(B) include the dates of the suspension period.
813
(iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
814
to be posted under this Subsection (6)(e) during the suspension period.
815
(f) If a permit or license is revoked, the commission may order the revocation of a
816
compliance bond posted by the permittee or licensee.
817
(g) A permittee or licensee whose permit or license is revoked may not reapply for a
818
permit or license under this title for three years from the date on which the permit or license is
819
revoked.
820
(h) The commission shall transfer all costs assessed into the General Fund in
821
accordance with Section
32A-1-113
.
822
(7) Subject to Section
32A-1-119.5
:
823
(a) In addition to an action taken against a permittee, licensee, or certificate holder
824
under this section, the department may initiate disciplinary action against an officer, employee,
825
or agent of a permittee, licensee, or certificate holder.
826
(b) If an officer, employee, or agent is found to have violated this title, the commission
827
may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
828
wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
829
officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
830
period determined by the commission.
831
(8) Subject to Section
32A-1-119.5
:
832
(a) The department may initiate a disciplinary proceeding for an alleged violation of
833
this title or the rules of the commission against:
834
(i) a manufacturer, supplier, or importer of an alcoholic beverage; or
835
(ii) an officer, employee, agent, or representative of a person listed in Subsection
836
(8)(a)(i).
837
(b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
838
commission may, in addition to other penalties prescribed by this title, order:
839
(A) the removal of the manufacturer's, supplier's, or importer's one or more products
840
from the department's sales list; and
841
(B) a suspension of the department's purchase of the one or more products described in
842
Subsection (8)(b)(i)(A) for a period determined by the commission.
843
(ii) The commission may take the action described in Subsection (8)(b)(i) if:
844
(A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
845
beverage, or its officer, employee, agent, or representative violates this title; and
846
(B) the manufacturer, supplier, or importer:
847
(I) directly commits the violation; or
848
(II) solicits, requests, commands, encourages, or intentionally aids another to engage in
849
the violation.
850
(9) Subject to Section
32A-1-119.5
:
851
(a) The department may initiate a disciplinary proceeding against a brewer holding a
852
certificate of approval under Section
32A-8-101
for an alleged violation of this title or the rules
853
of the commission.
854
(b) If the commission makes a finding that the brewer holding a certificate of approval
855
violates this title or rules of the commission, the commission may take an action against the
856
brewer holding a certificate of approval that the commission could take against a licensee
857
including:
858
(i) suspension or revocation of the certificate of approval; and
859
(ii) imposition of a fine.
860
(10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
861
the commission or a hearing examiner appointed by the commission shall proceed formally in
862
accordance with Sections
63G-4-204
through
63G-4-209
in a case where:
863
(i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
864
and welfare;
865
(ii) the alleged violation involves:
866
(A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
867
(B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
868
Entertainment Act;
869
(C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
870
of the respondent;
871
(D) interfering or refusing to cooperate with:
872
(I) an authorized official of the department or the state in the discharge of the official's
873
duties in relation to the enforcement of this title; or
874
(II) a peace officer in the discharge of the peace officer's duties in relation to the
875
enforcement of this title;
876
(E) an unlawful trade practice under Sections
32A-12-601
through
32A-12-606
;
877
(F) unlawful importation of an alcoholic product; or
878
(G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
879
32A-12-601
(2), to a person other than the department or a military installation, except to the
880
extent permitted by this title; or
881
(iii) the department determines to seek in a disciplinary proceeding hearing:
882
(A) an administrative fine exceeding $3,000;
883
(B) a suspension of a license, permit, or certificate of approval of more than ten days;
884
or
885
(C) a revocation of a license, permit, or certificate of approval.
886
(b) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
887
Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
888
Section 7.
Section
32A-1-119.5
is amended to read:
889
32A-1-119.5. Timing of reporting violations.
890
(1) As used in this section:
891
(a) "Department compliance officer" means an individual who is:
892
(i) an auditor or inspector; and
893
(ii) employed by the department.
894
(b) "Nondepartment enforcement agency" means an agency that:
895
(i) (A) is a state agency other than the department; or
896
(B) is an agency of a county, city, or town; and
897
(ii) has a responsibility, as provided in another provision of this title, to enforce one or
898
more provisions of this title.
899
(c) "Nondepartment enforcement officer" means an individual who is:
900
(i) a peace officer, examiner, or investigator; and
901
(ii) employed by an agency described in Subsection (1)(b).
902
(2) A disciplinary proceeding may not be initiated or maintained by the commission or
903
department on the basis, in whole or in part, of a violation of this title unless a person listed in
904
Subsections
32A-1-105
[(15)](16)(a)(i) through (vi) against whom the violation is alleged is
905
notified by the department of the violation in accordance with this section.
906
(3) (a) A nondepartment enforcement agency or nondepartment enforcement officer
907
may not report a violation of this title to the department more than eight business days after the
908
day on which a nondepartment enforcement officer or agency completes an investigation that
909
finds a violation of this title.
910
(b) If the commission or department wants the right to initiate or maintain a
911
disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
912
report described in Subsection (3)(a), the department shall notify a person listed in Subsections
913
32A-1-105
[(15)](16)(a)(i) through (vi) alleged by the report to have violated this title:
914
(i) by no later than eight business days of the day on which the department receives the
915
report described in Subsection (3)(a); and
916
(ii) that the commission or department may initiate or maintain a disciplinary
917
proceeding on the basis, in whole or in part, of the violation.
918
(4) If the commission or department wants the right to initiate or maintain a
919
disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
920
report of a department compliance officer, the department shall notify a person listed in
921
Subsections
32A-1-105
[(17)](16)(a)(i) through (vi) alleged by the report to have violated this
922
title:
923
(a) by no later than eight business days of the day on which the department compliance
924
officer completes an investigation that finds a violation of this title; and
925
(b) that the commission or department may initiate or maintain a disciplinary
926
proceeding on the basis, in whole or in part, of the violation.
927
(5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
928
a person listed in Subsection
32A-1-105
[(17)](16)(a)(vii).
929
(6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
930
the oral notification the department provides written notification.
931
(b) The written notification described in Subsection (6)(a) may be sent outside the time
932
periods required by this section.
933
(7) The department shall maintain a record of a notification required by Subsection (2),
934
(3)(b), or (4) that includes:
935
(a) the name of the person notified; and
936
(b) the date of the notification.
937
Section 8.
Section
32A-1-304.5
is enacted to read:
938
32A-1-304.5. Verification of proof of age by a social on-premise liquor licensee.
939
(1) Notwithstanding any other provision of this part, a social on-premise liquor
940
licensee shall require that a person authorized to sell or otherwise handle an alcoholic beverage
941
or alcoholic product under the social on-premise liquor license verify proof of age as provided
942
in this section.
943
(2) A person described in Subsection (1) is required to verify proof of age under this
944
section before an individual who appears to be 30 years of age or younger:
945
(a) gains admittance to the class 2 social on-premise liquor licensee's premises if the
946
social on-premise liquor licensee is a class 2 social on-premise liquor licensee; or
947
(b) procures an alcoholic beverage or alcoholic product if the social on-premise liquor
948
licensee is a class 1 social on-premise liquor licensee.
949
(3) To comply with Subsection (2), a person shall:
950
(a) request the individual present proof of age; and
951
(b) (i) verify the validity of the proof of age electronically under the verification
952
program created in Subsection (4); or
953
(ii) if the proof of age cannot be electronically verified as provided in Subsection
954
(3)(b)(i), request that the individual comply with a process established by the commission by
955
rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
956
(4) The commission shall establish by rule made in accordance with Title 63G, Chapter
957
3, Utah Administrative Rulemaking Act, an electronic verification program that includes the
958
following:
959
(a) the specifications for the technology used by the social on-premise liquor licensee
960
to electronically verify proof of age, including that the technology display to the person
961
described in Subsection (1) no more than the following for the individual who presents the
962
proof of age:
963
(i) the name;
964
(ii) the age;
965
(iii) the number assigned to the individual's proof of age by the issuing authority;
966
(iv) the birth date;
967
(v) the gender; and
968
(vi) the status and expiration date of the individual's proof of age; and
969
(b) the security measures that must be used by a social on-premise liquor licensee to
970
ensure that information obtained under this section is:
971
(i) used by the social on-premise liquor licensee only for purposes of verifying proof
972
of age in accordance with this section; and
973
(ii) retained by the social on-premise liquor licensee for no more than H. [
48 hours
] seven
973a
calendar days .H from
974
close of business of the day on which the social on-premise liquor licensee obtains the
975
information.
976
(5) A social on-premise liquor licensee may not disclose information obtained under
977
this section except as provided under this title.
978
Section 9.
Section
32A-1-603
is amended to read:
979
32A-1-603. Sexually oriented entertainer.
980
(1) Subject to the restrictions of this section, live entertainment is permitted on a
981
premises or at an event regulated by the commission.
982
(2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
983
(a) appear or perform in a state of nudity;
984
(b) perform or simulate an act of:
985
(i) sexual intercourse;
986
(ii) masturbation;
987
(iii) sodomy;
988
(iv) bestiality;
989
(v) oral copulation;
990
(vi) flagellation; or
991
(vii) a sexual act that is prohibited by Utah law; or
992
(c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
993
(3) A sexually oriented entertainer may perform in a state of seminudity:
994
(a) only in:
995
(i) a tavern; or [class D private club; and]
996
(ii) a class 2 social on-premise liquor licensee's premises; and
997
(b) only if:
998
(i) all windows, doors, and other apertures to the premises are darkened or otherwise
999
constructed to prevent anyone outside the premises from seeing the performance; and
1000
(ii) the outside entrance doors of the premises remain unlocked.
1001
(4) A sexually oriented entertainer may perform only upon a stage or in a designated
1002
performance area that is:
1003
(a) approved by the commission in accordance with rules made by the commission in
1004
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1005
(b) configured so as to preclude a patron from:
1006
(i) touching the sexually oriented entertainer; or
1007
(ii) placing any money or object on or within the costume or the person of the sexually
1008
oriented entertainer; and
1009
(c) configured so as to preclude the sexually oriented entertainer from touching a
1010
patron.
1011
(5) A sexually oriented entertainer may not touch a patron:
1012
(a) during the sexually oriented entertainer's performance; or
1013
(b) while the sexually oriented entertainer is dressed in performance attire or costume.
1014
(6) A sexually oriented entertainer, while in the portion of the premises used by
1015
patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
1016
entertainer's performance attire or costume from the top of the breast to the knee.
1017
(7) A patron may not be on the stage or in the performance area while a sexually
1018
oriented entertainer is appearing or performing on the stage or in the performance area.
1019
(8) A patron may not:
1020
(a) touch a sexually oriented entertainer:
1021
(i) during the sexually oriented entertainer's performance; or
1022
(ii) while the sexually oriented entertainer is dressed in performance attire or costume;
1023
or
1024
(b) place money or any other object on or within the costume or the person of the
1025
sexually oriented entertainer.
1026
(9) A minor may not be on a premises described in Subsection (3) [when a sexually
1027
oriented entertainer is performing on the premises].
1028
(10) A person who appears or performs for the entertainment of patrons on a premises
1029
or at an event regulated by the commission that is not a tavern or class [D private club] 2 social
1030
on-premise liquor license:
1031
(a) may not appear or perform in a state of nudity or a state of seminudity; and
1032
(b) may appear or perform in opaque clothing that completely covers the person's
1033
genitals, pubic area, and anus if the covering:
1034
(i) is not less than the following at its widest point:
1035
(A) four inches coverage width in the front of the human body; and
1036
(B) five inches coverage width in the back of the human body;
1037
(ii) does not taper to less than one inch wide at the narrowest point; and
1038
(iii) if covering a female, completely covers the breast below the top of the areola.
1039
Section 10.
Section
32A-4-106
is amended to read:
1040
32A-4-106. Operational restrictions.
1041
A person granted a restaurant liquor license and the employees and management
1042
personnel of the restaurant shall comply with the following conditions and requirements.
1043
Failure to comply may result in a suspension or revocation of the restaurant liquor license or
1044
other disciplinary action taken against individual employees or management personnel.
1045
(1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
1046
store or package agency.
1047
(b) Liquor purchased from a state store or package agency may be transported by the
1048
restaurant liquor licensee from the place of purchase to the licensed premises.
1049
(c) Payment for liquor shall be made in accordance with rules established by the
1050
commission.
1051
(2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
1052
a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
1053
dispensing system approved by the department in accordance with commission rules adopted
1054
under this title, except that:
1055
(a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1056
system if used as a secondary flavoring ingredient in a beverage subject to the following
1057
restrictions:
1058
(i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1059
a primary spirituous liquor;
1060
(ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1061
(iii) the restaurant liquor licensee shall designate a location where flavorings are stored
1062
on the floor plan provided to the department; and
1063
(iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1064
(b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1065
system if used:
1066
(i) as a flavoring on a dessert; and
1067
(ii) in the preparation of a flaming food dish, drink, or dessert;
1068
(c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
1069
and
1070
(d) a restaurant patron may have no more than one spirituous liquor drink at a time
1071
before the patron.
1072
(3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
1073
exceed five ounces per glass or individual portion.
1074
(ii) An individual portion of wine may be served to a patron in more than one glass as
1075
long as the total amount of wine does not exceed five ounces.
1076
(iii) An individual portion of wine is considered to be one alcoholic beverage under
1077
Subsection (7)[(e)](d).
1078
(b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1079
fixed by the commission to a table of four or more persons.
1080
(ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1081
fixed by the commission to a table of less than four persons.
1082
(c) A wine service may be performed and a service charge assessed by a restaurant
1083
liquor licensee as authorized by commission rule for wine purchased at the restaurant.
1084
(4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1085
price fixed by the commission.
1086
(b) A flavored malt beverage may be served in an original container not exceeding one
1087
liter at a price fixed by the commission.
1088
(c) A service charge may be assessed by a restaurant liquor licensee as authorized by
1089
commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
1090
(5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
1091
on-premise consumption:
1092
(A) in an open container; and
1093
(B) on draft.
1094
(ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1095
not exceed two liters, except that beer may not be sold to an individual patron in a size of
1096
container that exceeds one liter.
1097
(b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
1098
(i) may do so without obtaining a separate on-premise beer retailer license from the
1099
commission; and
1100
(ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1101
Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1102
inconsistent with or less restrictive than the operational restrictions under this part.
1103
(c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1104
Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1105
restaurant's:
1106
(i) state liquor license; and
1107
(ii) alcoholic beverage license issued by the local authority.
1108
(6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1109
designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
1110
first applies for and receives approval from the department for a change of location within the
1111
restaurant.
1112
(7) (a) (i) A patron may only make an alcoholic beverage purchase in the restaurant
1113
from and be served by a person employed, designated, and trained by the restaurant liquor
1114
licensee to sell and serve an alcoholic beverage.
1115
(ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1116
employee of the restaurant or carries bottled wine onto the premises of the restaurant pursuant
1117
to Subsection (14) may thereafter serve wine from the bottle to the patron or others at the
1118
patron's table.
1119
[(b) An alcoholic beverage shall be delivered by a server to the patron.]
1120
[(c) An] (b) A patron may consume an alcoholic beverage [may] only [be consumed] at
1121
the patron's table or at a counter, bar, or similar structure.
1122
[(d) An alcoholic beverage may not be served to or consumed by a patron at a bar.]
1123
(c) (i) For purposes of this Subsection (7)(c), "bar structure" means the entire counter
1124
or structure at which occurs an activity that makes the counter or structure a bar under Section
1125
32A-1-105
.
1126
(ii) A patron who is 21 years of age or older may:
1127
(A) sit at a bar structure;
1128
(B) be served an alcoholic beverage at a bar structure; and
1129
(C) consume an alcoholic beverage at a bar structure.
1130
(iii) Except as provided in Subsection (7)(c)(iv), a restaurant liquor licensee may not
1131
permit a minor to, and a minor may not:
1132
(A) sit at a bar structure; or
1133
(B) consume food or beverages at a bar structure.
1134
(iv) (A) A minor may be at a bar structure if the minor is employed by a restaurant
1135
liquor licensee to perform maintenance and cleaning services during an hour when the
1136
restaurant liquor licensee is not open for business.
1137
(B) A minor may momentarily pass by a bar structure without remaining or sitting at
1138
the bar structure en route to an area of a restaurant liquor licensee's premises in which the
1139
minor is permitted to be.
1140
[(e)] (d) A restaurant patron may have no more than two alcoholic beverages of any
1141
kind at a time before the patron, subject to the limitation in Subsection (2)(d).
1142
(8) The liquor storage area shall remain locked at all times other than those hours and
1143
days when liquor sales are authorized by law.
1144
(9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
1145
restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
1146
(b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1147
Licenses, for on-premise beer licensees.
1148
(10) An alcoholic beverage may not be sold except in connection with an order for food
1149
prepared, sold, and served at the restaurant.
1150
(11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
1151
(a) minor;
1152
(b) person actually, apparently, or obviously intoxicated;
1153
(c) known habitual drunkard; or
1154
(d) known interdicted person.
1155
(12) (a) (i) Liquor may be sold only at a price fixed by the commission.
1156
(ii) Liquor may not be sold at a discount price on any date or at any time.
1157
(b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1158
beverage to the restaurant liquor licensee.
1159
(c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1160
over consumption or intoxication.
1161
(d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1162
hours of a restaurant liquor licensee's business day such as a "happy hour."
1163
(e) More than one alcoholic beverage may not be sold or served for the price of a single
1164
alcoholic beverage.
1165
(f) An indefinite or unlimited number of alcoholic beverages during a set period may
1166
not be sold or served for a fixed price.
1167
(g) A restaurant liquor licensee may not engage in a public promotion involving or
1168
offering free an alcoholic beverage to the general public.
1169
(13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
1170
(a) the restaurant liquor licensee; or
1171
(b) an employee or agent of the restaurant liquor licensee.
1172
(14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
1173
alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1174
discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
1175
licensee for on-premise consumption.
1176
(b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
1177
officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
1178
(i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
1179
consumption; or
1180
(ii) consumption of an alcoholic beverage described in this Subsection (14) on the
1181
restaurant liquor licensee's premises.
1182
(c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1183
or other representative of the restaurant liquor licensee upon entering the restaurant.
1184
(d) A wine service may be performed and a service charge assessed by a restaurant
1185
liquor licensee as authorized by commission rule for wine carried in by a patron.
1186
(15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
1187
employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
1188
restaurant premises an open container that:
1189
(i) is used primarily for drinking purposes; and
1190
(ii) contains an alcoholic beverage.
1191
(b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
1192
restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
1193
onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
1194
recorked or recapped before removal.
1195
(16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
1196
alcoholic beverage.
1197
(b) Notwithstanding Subsection (16)(a) and subject to Subsection (7)(c), a minor who
1198
is at least 16 years of age may be employed to enter the sale at a cash register or other sales
1199
recording device.
1200
(17) An employee of a restaurant liquor licensee, while on duty, may not:
1201
(a) consume an alcoholic beverage; or
1202
(b) be intoxicated.
1203
(18) A charge or fee made in connection with the sale, service, or consumption of liquor
1204
may be stated in food or alcoholic beverage menus including:
1205
(a) a set-up charge;
1206
(b) a service charge; or
1207
(c) a chilling fee.
1208
(19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
1209
(a) the liquor license that is issued by the department;
1210
(b) a list of the types and brand names of liquor being served through its calibrated
1211
metered dispensing system; and
1212
(c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1213
drugs is a serious crime that is prosecuted aggressively in Utah."
1214
(20) A restaurant liquor licensee may not on the premises of the restaurant liquor
1215
licensee:
1216
(a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1217
Chapter 10, Part 11, Gambling;
1218
(b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1219
Part 11, Gambling; or
1220
(c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1221
the risking of something of value for a return or for an outcome when the return or outcome is
1222
based upon an element of chance, excluding the playing of an amusement device that confers
1223
only an immediate and unrecorded right of replay not exchangeable for value.
1224
(21) (a) A restaurant liquor licensee shall maintain an expense ledger or record showing
1225
in detail:
1226
(i) quarterly expenditures made separately for:
1227
(A) malt or brewed beverages;
1228
(B) set-ups;
1229
(C) liquor;
1230
(D) food; and
1231
(E) all other items required by the department; and
1232
(ii) sales made separately for:
1233
(A) malt or brewed beverages;
1234
(B) set-ups;
1235
(C) food; and
1236
(D) all other items required by the department.
1237
(b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
1238
(i) in a form approved by the department; and
1239
(ii) current for each three-month period.
1240
(c) An expenditure shall be supported by:
1241
(i) a delivery ticket;
1242
(ii) an invoice;
1243
(iii) a receipted bill;
1244
(iv) a canceled check;
1245
(v) a petty cash voucher; or
1246
(vi) other sustaining datum or memorandum.
1247
(d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
1248
liquor licensee shall maintain accounting and other records and documents as the department
1249
may require.
1250
(e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
1251
forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
1252
other document of the restaurant that is required to be made, maintained, or preserved by this
1253
title or the rules of the commission for the purpose of deceiving the commission or the
1254
department, or an official or employee of the commission or department, is subject to:
1255
(i) the suspension or revocation of the restaurant's liquor license; and
1256
(ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1257
(22) (a) A restaurant liquor licensee may not close or cease operation for a period
1258
longer than 240 hours, unless:
1259
(i) the restaurant liquor licensee notifies the department in writing at least seven days
1260
before the day on which the restaurant liquor licensee closes or ceases operation; and
1261
(ii) the closure or cessation of operation is first approved by the department.
1262
(b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
1263
restaurant liquor licensee shall immediately notify the department by telephone.
1264
(c) (i) The department may authorize a closure or cessation of operation for a period
1265
not to exceed 60 days.
1266
(ii) The department may extend the initial period an additional 30 days upon:
1267
(A) written request of the restaurant liquor licensee; and
1268
(B) a showing of good cause.
1269
(iii) A closure or cessation of operation may not exceed a total of 90 days without
1270
commission approval.
1271
(d) A notice shall include:
1272
(i) the dates of closure or cessation of operation;
1273
(ii) the reason for the closure or cessation of operation; and
1274
(iii) the date on which the restaurant liquor licensee will reopen or resume operation.
1275
(e) Failure of the restaurant liquor licensee to provide notice and to obtain department
1276
authorization before closure or cessation of operation results in an automatic forfeiture of:
1277
(i) the license; and
1278
(ii) the unused portion of the license fee for the remainder of the license year effective
1279
immediately.
1280
(f) Failure of the restaurant liquor licensee to reopen or resume operation by the
1281
approved date results in an automatic forfeiture of:
1282
(i) the license; and
1283
(ii) the unused portion of the license fee for the remainder of the license year.
1284
(23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
1285
business from the sale of food, which does not include mix for an alcoholic beverage or service
1286
charges.
1287
(24) A restaurant liquor license may not be transferred from one location to another,
1288
without prior written approval of the commission.
1289
(25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
1290
assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
1291
to another person whether for monetary gain or not.
1292
(b) A restaurant liquor license has no monetary value for the purpose of any type of
1293
disposition.
1294
(26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
1295
shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
1296
beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
1297
beverage ordered or consumed.
1298
(27) A person's willingness to serve an alcoholic beverage may not be made a
1299
condition of employment as a server with a restaurant that has a restaurant liquor license.
1300
(28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
1301
not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
1302
Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
1303
(a) sell, distribute, possess, or use a controlled substance, as defined in Section
1304
58-37-2
; or
1305
(b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
1306
Section
58-37a-3
.
1307
Section 11.
Section
32A-4-307
is amended to read:
1308
32A-4-307. Operational restrictions.
1309
A person granted a limited restaurant license and the employees and management
1310
personnel of the limited restaurant shall comply with the following conditions and
1311
requirements. Failure to comply may result in a suspension or revocation of the license or
1312
other disciplinary action taken against individual employees or management personnel.
1313
(1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
1314
except from a state store or package agency.
1315
(b) Wine and heavy beer purchased from a state store or package agency may be
1316
transported by the limited restaurant licensee from the place of purchase to the licensed
1317
premises.
1318
(c) Payment for wine and heavy beer shall be made in accordance with rules
1319
established by the commission.
1320
(2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
1321
products listed in Subsection (2)(c) on the premises of the limited restaurant.
1322
(b) A product listed in Subsection (2)(c) may not be on the premises of the limited
1323
restaurant except for use:
1324
(i) as a flavoring on a dessert; and
1325
(ii) in the preparation of a flaming food dish, drink, or dessert.
1326
(c) This Subsection (2) applies to:
1327
(i) spirituous liquor; and
1328
(ii) [on or after October 1, 2008,] a flavored malt beverage.
1329
(3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
1330
exceed five ounces per glass or individual portion.
1331
(ii) An individual portion may be served to a patron in more than one glass as long as
1332
the total amount of wine does not exceed five ounces.
1333
(iii) An individual portion of wine is considered to be one alcoholic beverage under
1334
Subsection (7)[(e)](d).
1335
(b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1336
fixed by the commission to a table of four or more persons.
1337
(ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1338
fixed by the commission to a table of less than four persons.
1339
(c) A wine service may be performed and a service charge assessed by the limited
1340
restaurant licensee as authorized by commission rule for wine purchased at the limited
1341
restaurant.
1342
(4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1343
price fixed by the commission.
1344
(b) A service charge may be assessed by the limited restaurant licensee as authorized
1345
by commission rule for heavy beer purchased at the limited restaurant.
1346
(5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
1347
on-premise consumption:
1348
(A) in an open container; and
1349
(B) on draft.
1350
(ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1351
not exceed two liters, except that beer may not be sold to an individual patron in a size of
1352
container that exceeds one liter.
1353
(b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
1354
(i) may do so without obtaining a separate on-premise beer retailer license from the
1355
commission; and
1356
(ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1357
Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1358
inconsistent with or less restrictive than the operational restrictions under this part.
1359
(c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1360
Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
1361
restaurant's:
1362
(i) limited restaurant license; and
1363
(ii) alcoholic beverage license issued by the local authority.
1364
(6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
1365
as designated in the limited restaurant licensee's application, unless the limited restaurant
1366
licensee first applies for and receives approval from the department for a change of location
1367
within the limited restaurant.
1368
(7) (a) (i) A patron may only make an alcoholic beverage purchase in a limited
1369
restaurant from and be served by a person employed, designated, and trained by the limited
1370
restaurant licensee to sell and serve an alcoholic beverage.
1371
(ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1372
employee of the limited restaurant licensee or carries bottled wine onto the premises of the
1373
limited restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
1374
patron or others at the patron's table.
1375
[(b) An alcoholic beverage shall be delivered by a server to the patron.]
1376
[(c) An] (b) A patron may consume an alcoholic beverage [may] only [be consumed] at
1377
the patron's table or at a counter, bar, or similar structure.
1378
[(d) An alcoholic beverage may not be served to or consumed by a patron at a bar.]
1379
(c) (i) For purposes of this Subsection (7)(c), "bar structure" means the entire counter
1380
or structure at which occurs an activity that makes the counter or structure a bar under Section
1381
32A-1-105
.
1382
(ii) A patron who is 21 years of age or older may:
1383
(A) sit at a bar structure;
1384
(B) be served an alcoholic beverage at a bar structure; or
1385
(C) consume an alcoholic beverage at a bar structure.
1386
(iii) Except as provided in Subsection (7)(c)(iv), a limited restaurant licensee may not
1387
permit a minor to, and a minor may not:
1388
(A) sit at a bar structure; or
1389
(B) consume food or beverages at a bar structure.
1390
(iv) (A) A minor may be at a bar structure if the minor is employed by a limited
1391
restaurant licensee to perform maintenance and cleaning services during an hour when the
1392
limited restaurant licensee is not open for business.
1393
(B) A minor may momentarily pass by a bar structure without remaining or sitting at
1394
the bar structure en route to an area of a limited restaurant licensee's premises in which the
1395
minor is permitted to be.
1396
[(e)] (d) A limited restaurant patron may have no more than two alcoholic beverages of
1397
any kind at a time before the patron.
1398
(8) The alcoholic beverage storage area shall remain locked at all times other than
1399
those hours and days when alcoholic beverage sales are authorized by law.
1400
(9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
1401
furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
1402
(b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1403
Licenses, for on-premise beer licensees.
1404
(10) An alcoholic beverage may not be sold except in connection with an order of food
1405
prepared, sold, and served at the limited restaurant.
1406
(11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
1407
(a) minor;
1408
(b) person actually, apparently, or obviously intoxicated;
1409
(c) known habitual drunkard; or
1410
(d) known interdicted person.
1411
(12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
1412
(ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
1413
(b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1414
beverage to the limited restaurant licensee.
1415
(c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1416
over consumption or intoxication.
1417
(d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1418
hours of the limited restaurant licensee's business day such as a "happy hour."
1419
(e) More than one alcoholic beverage may not be sold or served for the price of a single
1420
alcoholic beverage.
1421
(f) An indefinite or unlimited number of alcoholic beverages during a set period may
1422
not be sold or served for a fixed price.
1423
(g) A limited restaurant licensee may not engage in a public promotion involving or
1424
offering free alcoholic beverages to the general public.
1425
(13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
1426
by:
1427
(a) the limited restaurant licensee; or
1428
(b) an employee or agent of the limited restaurant licensee.
1429
(14) (a) A person may not bring onto the premises of a limited restaurant licensee an
1430
alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1431
discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
1432
restaurant licensee for on-premise consumption.
1433
(b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
1434
officer, manager, employee, or agent of a limited restaurant licensee may not allow:
1435
(i) a person to bring onto the limited restaurant premises an alcoholic beverage for
1436
on-premise consumption; or
1437
(ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
1438
limited restaurant licensee's premises.
1439
(c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1440
or other representative of the limited restaurant licensee upon entering the limited restaurant.
1441
(d) A wine service may be performed and a service charge assessed by the limited
1442
restaurant licensee as authorized by commission rule for wine carried in by a patron.
1443
(15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
1444
employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
1445
limited restaurant premises an open container that:
1446
(i) is used primarily for drinking purposes; and
1447
(ii) contains an alcoholic beverage.
1448
(b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
1449
contents of a bottle of wine if before removal, the bottle is recorked or recapped.
1450
(16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
1451
alcoholic beverage.
1452
(b) Notwithstanding Subsection (16)(a) and subject to Subsection (7)(c), a minor who
1453
is at least 16 years of age may be employed to enter the sale at a cash register or other sales
1454
recording device.
1455
(17) An employee of a limited restaurant licensee, while on duty, may not:
1456
(a) consume an alcoholic beverage; or
1457
(b) be intoxicated.
1458
(18) A charge or fee made in connection with the sale, service, or consumption of wine
1459
or heavy beer may be stated in food or alcoholic beverage menus including:
1460
(a) a service charge; or
1461
(b) a chilling fee.
1462
(19) A limited restaurant licensee shall display in a prominent place in the restaurant:
1463
(a) the limited restaurant license that is issued by the department; and
1464
(b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1465
drugs is a serious crime that is prosecuted aggressively in Utah."
1466
(20) A limited restaurant licensee may not on the premises of the restaurant:
1467
(a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1468
Chapter 10, Part 11, Gambling;
1469
(b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1470
Part 11, Gambling; or
1471
(c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1472
the risking of something of value for a return or for an outcome when the return or outcome is
1473
based upon an element of chance, excluding the playing of an amusement device that confers
1474
only an immediate and unrecorded right of replay not exchangeable for value.
1475
(21) (a) A limited restaurant licensee shall maintain an expense ledger or record
1476
showing in detail:
1477
(i) quarterly expenditures made separately for:
1478
(A) wine;
1479
(B) heavy beer;
1480
(C) beer;
1481
(D) food; and
1482
(E) all other items required by the department; and
1483
(ii) sales made separately for:
1484
(A) wine;
1485
(B) heavy beer;
1486
(C) beer;
1487
(D) food; and
1488
(E) all other items required by the department.
1489
(b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
1490
(i) in a form approved by the department; and
1491
(ii) current for each three-month period.
1492
(c) An expenditure shall be supported by:
1493
(i) a delivery ticket;
1494
(ii) an invoice;
1495
(iii) a receipted bill;
1496
(iv) a canceled check;
1497
(v) a petty cash voucher; or
1498
(vi) other sustaining datum or memorandum.
1499
(d) In addition to the ledger or record maintained under Subsections (21)(a) through
1500
(c), a limited restaurant licensee shall maintain accounting and other records and documents as
1501
the department may require.
1502
(e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
1503
forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
1504
other document of the limited restaurant that is required to be made, maintained, or preserved
1505
by this title or the rules of the commission for the purpose of deceiving the commission, the
1506
department, or an official or employee of the commission or department, is subject to:
1507
(i) the suspension or revocation of the limited restaurant's license; and
1508
(ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1509
(22) (a) A limited restaurant licensee may not close or cease operation for a period
1510
longer than 240 hours, unless:
1511
(i) the limited restaurant licensee notifies the department in writing at least seven days
1512
before the day on which the limited restaurant licensee closes or ceases operation; and
1513
(ii) the closure or cessation of operation is first approved by the department.
1514
(b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
1515
restaurant licensee shall immediately notify the department by telephone.
1516
(c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
1517
cessation of operation for a period not to exceed 60 days.
1518
(ii) The department may extend the initial period an additional 30 days upon:
1519
(A) written request of the limited restaurant licensee; and
1520
(B) a showing of good cause.
1521
(iii) A closure or cessation of operation may not exceed a total of 90 days without
1522
commission approval.
1523
(d) A notice required by Subsection (22)(a) shall include:
1524
(i) the dates of closure or cessation of operation;
1525
(ii) the reason for the closure or cessation of operation; and
1526
(iii) the date on which the limited restaurant licensee will reopen or resume operation.
1527
(e) Failure of the limited restaurant licensee to provide notice and to obtain department
1528
authorization before closure or cessation of operation results in an automatic forfeiture of:
1529
(i) the limited restaurant license; and
1530
(ii) the unused portion of the license fee for the remainder of the license year effective
1531
immediately.
1532
(f) Failure of the limited restaurant licensee to reopen or resume operation by the
1533
approved date results in an automatic forfeiture of:
1534
(i) the limited restaurant license; and
1535
(ii) the unused portion of the license fee for the remainder of the license year.
1536
(23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
1537
business from the sale of food, which does not include service charges.
1538
(24) A limited restaurant license may not be transferred from one location to another,
1539
without prior written approval of the commission.
1540
(25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
1541
give, or attempt in any way to dispose of the limited restaurant license to another person
1542
whether for monetary gain or not.
1543
(b) A limited restaurant license has no monetary value for the purpose of any type of
1544
disposition.
1545
(26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
1546
establishment shall keep a written beverage tab for each table or group that orders or consumes
1547
an alcoholic beverage on the premises.
1548
(b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
1549
alcoholic beverage ordered or consumed.
1550
(27) A limited restaurant licensee may not make a person's willingness to serve an
1551
alcoholic beverage a condition of employment as a server with the limited restaurant.
1552
(28) A limited restaurant licensee or an employee of the limited restaurant licensee may
1553
not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
1554
Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
1555
(a) sell, distribute, possess, or use a controlled substance, as defined in Section
1556
58-37-2
; or
1557
(b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
1558
Section
58-37a-3
.
1559
Section 12.
Section
32A-4-501
is enacted to read:
1560
Part 5. Social On-premise Liquor Licenses
1561
32A-4-501. Definitions -- Commission's power to license social on-premise liquor
1562
establishments -- Limitations.
1563
(1) As used in this chapter:
1564
(a) "Class 1 social on-premise liquor licensee" means a person that qualifies as a class
1565
1 social on-premise liquor licensee under Subsection (3)(a)(ii)(A).
1566
(b) "Class 2 social on-premise liquor licensee" means a person that qualifies as a class
1567
2 social on-premise liquor licensee under Subsection (3)(a)(ii)(B).
1568
(c) "Social on-premise liquor licensee" means a person who is licensed under this
1569
chapter.
1570
(2) Before a person may sell or allow the consumption of an alcoholic beverage on its
1571
premises as a social on-premise liquor licensee, the person shall first obtain a license from the
1572
commission as provided in this chapter.
1573
(3) (a) The commission may grant a social on-premise liquor license to a person who:
1574
(i) meets the requirements of this chapter; and
1575
(ii) (A) meets the following requirements for a class 1 social on-premise liquor license:
1576
(I) operates in the manner of a dining establishment, as determined by