H.B. 349

This document includes House Floor Amendments incorporated into the bill on Tue, Mar 3, 2009 at 3:49 PM by ddonat. --> 1

HEAVY BEER AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis Oda
5 Senate Sponsor: Jon J. Greiner
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Alcoholic Beverage Control Act to address provisions related to
10 heavy beer including the wholesaling of heavy beer.
11 Highlighted Provisions:
12 This bill:
13 . addresses definitions;
14 . permits the retail sale of heavy beer for on-premise consumption on draft, subject to
15 certain restrictions;
16 . enacts the Heavy Beer Wholesaling Act including:
17 . defining terms;
18 . authorizing a beer wholesaler licensee to sell and distribute heavy beer to a
19 liquor retailer under limited circumstances; and
20 . imposing operational restrictions;
21 . addresses issues related to the wholesaling of heavy beer by a beer wholesaler
22 licensee;
23 . expands the scope of the Utah Beer Industry Distribution Act to include heavy beer;
24 . addresses advertising;
25 . addresses criminal provisions; and
26 . makes technical and conforming changes.
27 Monies Appropriated in this Bill:

28 None
29 Other Special Clauses:
30 H. [ None ] This bill coordinates with H.B. 347, Alcoholic Beverage Control Act
30a Modifications, S.B. 106, Alcoholic Beverage Control Act Restrictions, and S.B. 187, Alcohol
30b Amendments, to merge substantive amendments. .H
31 Utah Code Sections Affected:
32 AMENDS:
33 32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
34 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
35 32A-1-109, as last amended by Laws of Utah 2003, Chapter 314
36 32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
37 32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
38 32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
39 32A-4-206, as last amended by Laws of Utah 2008, Chapter 391
40 32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
41 32A-4-406, as last amended by Laws of Utah 2008, Chapters 266, 382, and 391
42 32A-5-107, as last amended by Laws of Utah 2008, Chapters 266 and 391
43 32A-6-105, as last amended by Laws of Utah 2003, Chapter 314
44 32A-6-202, as last amended by Laws of Utah 2003, Chapter 314
45 32A-7-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
46 32A-8-101, as last amended by Laws of Utah 2008, Chapter 391
47 32A-8-401, as last amended by Laws of Utah 2008, Chapter 391
48 32A-8-505, as last amended by Laws of Utah 2008, Chapter 391
49 32A-9-101, as last amended by Laws of Utah 1991, Chapter 241
50 32A-10-102, as last amended by Laws of Utah 2008, Chapter 391
51 32A-10-306, as last amended by Laws of Utah 2008, Chapter 391
52 32A-11-101, as last amended by Laws of Utah 2004, Chapter 268
53 32A-11-102, as last amended by Laws of Utah 2004, Chapter 268
54 32A-11-103, as last amended by Laws of Utah 2008, Chapter 382
55 32A-11-105, as renumbered and amended by Laws of Utah 1990, Chapter 23
56 32A-11-106, as last amended by Laws of Utah 2008, Chapter 391
57 32A-11a-101, as enacted by Laws of Utah 1998, Chapter 328
58 32A-11a-102, as last amended by Laws of Utah 2007, Chapter 272

59 32A-11a-103, as enacted by Laws of Utah 1998, Chapter 328
60 32A-11a-105, as enacted by Laws of Utah 1998, Chapter 328
61 32A-11a-106, as last amended by Laws of Utah 2003, Chapter 314
62 32A-12-201, as last amended by Laws of Utah 2004, Chapter 268
63 32A-12-206, as last amended by Laws of Utah 1991, Chapter 132
64 32A-12-218, as last amended by Laws of Utah 2003, Chapter 314
65 32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
66 32A-12-401, as last amended by Laws of Utah 2007, Chapter 284
67 ENACTS:
68 32A-11-201, Utah Code Annotated 1953
69 32A-11-202, Utah Code Annotated 1953
70 32A-11-203, Utah Code Annotated 1953
71 32A-11-204, Utah Code Annotated 1953
72 32A-11-205, Utah Code Annotated 1953
73
74 Be it enacted by the Legislature of the state of Utah:
75 Section 1. Section 32A-1-105 is amended to read:
76 32A-1-105. Definitions.
77 As used in this title:
78 (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
79 at retail, for consumption on its premises located at an international airport with a United States
80 Customs office on the premises of the international airport.
81 (2) "Alcoholic beverage" means the following as the term is defined in this section:
82 (a) beer;
83 (b) flavored malt beverage; and
84 (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
85 (3) (a) "Alcoholic product" means a product that:
86 (i) contains at least .5% of alcohol by volume; and
87 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
88 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
89 in an amount greater than the amount prescribed in Subsection (3)(a)(i).

90 (b) "Alcoholic product" does not include any of the following common items that
91 otherwise come within the definition of an alcoholic product:
92 (i) except as provided in Subsection (3)(c), extract;
93 (ii) vinegar;
94 (iii) cider;
95 (iv) essence;
96 (v) tincture;
97 (vi) food preparation; or
98 (vii) an over-the-counter drug or medicine.
99 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
100 product when it is used as a flavoring in the manufacturing of an alcoholic product.
101 (4) "Bar" means a counter or similar structure:
102 (a) at which an alcoholic beverage is:
103 (i) stored; or
104 (ii) dispensed; or
105 (b) from which an alcoholic beverage is served.
106 (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
107 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
108 volume or 3.2% by weight; and
109 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
110 (b) Beer may or may not contain hops or other vegetable products.
111 (c) Beer includes a product that:
112 (i) contains alcohol in the percentages described in Subsection (5)(a); and
113 (ii) is referred to as:
114 (A) beer;
115 (B) ale;
116 (C) porter;
117 (D) stout;
118 (E) lager; or
119 (F) a malt or malted beverage.
120 (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt

121 beverage.
122 (6) (a) "Beer retailer" means a business that is:
123 (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
124 consumption on or off the business premises; and
125 (ii) licensed to sell beer by:
126 (A) the commission;
127 (B) a local authority; or
128 (C) both the commission and a local authority.
129 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
130 beer to a patron for consumption off the beer retailer's premises.
131 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
132 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
133 patron for consumption on the beer retailer's premises, regardless of whether the business sells
134 beer for consumption off the beer retailer's premises.
135 (7) "Beer wholesaler licensee" means a business that is licensed by the commission
136 under this title to act as a wholesaler.
137 [(7)] (8) "Billboard" means a public display used to advertise including:
138 (a) a light device;
139 (b) a painting;
140 (c) a drawing;
141 (d) a poster;
142 (e) a sign;
143 (f) a signboard; or
144 (g) a scoreboard.
145 [(8)] (9) "Brewer" means a person engaged in manufacturing:
146 (a) beer;
147 (b) heavy beer; or
148 (c) a flavored malt beverage.
149 [(9)] (10) "Cash bar" means the service of an alcoholic beverage:
150 (a) at:
151 (i) a banquet; or

152 (ii) a temporary event for which a permit is issued under this title; and
153 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
154 beverage.
155 [(10)] (11) "Chartered bus" means a passenger bus, coach, or other motor vehicle
156 provided by a bus company to a group of persons pursuant to a common purpose:
157 (a) under a single contract;
158 (b) at a fixed charge in accordance with the bus company's tariff; and
159 (c) for the purpose of giving the group of persons the exclusive use of the passenger
160 bus, coach, or other motor vehicle and a driver to travel together to one or more specified
161 destinations.
162 [(11)] (12) "Church" means a building:
163 (a) set apart for the purpose of worship;
164 (b) in which religious services are held;
165 (c) with which clergy is associated; and
166 (d) which is tax exempt under the laws of this state.
167 [(12)] (13) "Club" and "private club" means any of the following organized primarily
168 for the benefit of its members:
169 (a) a social club;
170 (b) a recreational association;
171 (c) a fraternal association;
172 (d) an athletic association; or
173 (e) a kindred association.
174 [(13)] (14) "Commission" means the Alcoholic Beverage Control Commission.
175 [(14)] (15) "Community location" means:
176 (a) a public or private school;
177 (b) a church;
178 (c) a public library;
179 (d) a public playground; or
180 (e) a public park.
181 [(15)] (16) "Community location governing authority" means:
182 (a) the governing body of the community location; or

183 (b) if the commission does not know who is the governing body of a community
184 location, a person who appears to the commission to have been given on behalf of the
185 community location authority to prohibit an activity at the community location.
186 [(16)] (17) "Department" means the Department of Alcoholic Beverage Control.
187 [(17)] (18) "Disciplinary proceeding" means an adjudicative proceeding permitted
188 under this title:
189 (a) against:
190 (i) a permittee;
191 (ii) a licensee;
192 (iii) a manufacturer;
193 (iv) a supplier;
194 (v) an importer;
195 (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
196 or
197 (vii) an officer, employee, or agent of:
198 (A) a person listed in Subsections [(17)] (18)(a)(i) through (vi); or
199 (B) a package agent; and
200 (b) that is brought on the basis of a violation of this title.
201 [(18)] (19) "Director," unless the context requires otherwise, means the director
202 appointed under Section 32A-1-108 .
203 [(19)] (20) "Distressed merchandise" means an alcoholic beverage in the possession of
204 the department that is saleable, but for some reason is unappealing to the public.
205 [(20)] (21) "Flavored malt beverage" means a beverage:
206 (a) that contains at least .5% alcohol by volume;
207 (b) that is treated by processing, filtration, or another method of manufacture that is not
208 generally recognized as a traditional process in the production of a beer as described in 27
209 C.F.R. Sec. 25.55;
210 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
211 extract; and
212 (d) (i) for which the producer is required to file a formula for approval with the United
213 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or

214 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
215 [(21)] (22) "Guest" means a person accompanied by an active member or visitor of a
216 club who enjoys only those privileges derived from the host for the duration of the visit to the
217 club.
218 [(22)] (23) (a) "Heavy beer" means a product that:
219 (i) contains more than 4% alcohol by volume; and
220 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
221 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
222 [(23)] (24) "Hosted bar" means the service of an alcoholic beverage:
223 (a) without charge; and
224 (b) at a:
225 (i) banquet; or
226 (ii) privately hosted event.
227 [(24)] (25) "Identification card" means an identification card issued under Title 53,
228 Chapter 3, Part 8, Identification Card Act.
229 [(25)] (26) "Interdicted person" means a person to whom the sale, gift, or provision of
230 an alcoholic beverage is prohibited by:
231 (a) law; or
232 (b) court order.
233 [(26)] (27) "Intoxicated" means that to a degree that is unlawful under Section
234 76-9-701 a person is under the influence of:
235 (a) an alcoholic beverage;
236 (b) a controlled substance;
237 (c) a substance having the property of releasing toxic vapors; or
238 (d) a combination of Subsections [(26)] (27)(a) through (c).
239 [(27)] (28) "Licensee" means a person issued a license by the commission to sell,
240 manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
241 controlled by the person.
242 [(28)] (29) "Limousine" means a motor vehicle licensed by the state or a local
243 authority, other than a bus or taxicab:
244 (a) in which the driver and a passenger are separated by a partition, glass, or other

245 barrier; and
246 (b) that is provided by a company to one or more individuals at a fixed charge in
247 accordance with the company's tariff for the purpose of giving the one or more individuals the
248 exclusive use of the limousine and a driver to travel to one or more specified destinations.
249 [(29)] (30) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
250 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
251 vinous, or fermented, or other drink, or drinkable liquid that:
252 (A) contains at least .5% alcohol by volume; and
253 (B) is suitable to use for beverage purposes.
254 (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
255 (b) "Liquor" does not include a beverage defined as a beer.
256 [(30)] (31) "Local authority" means:
257 (a) the governing body of the county if the premises are located in an unincorporated
258 area of a county; or
259 (b) the governing body of the city or town if the premises are located in an incorporated
260 city or a town.
261 [(31)] (32) "Manufacture" means to distill, brew, rectify, mix, compound, process,
262 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
263 others.
264 [(32)] (33) "Member" means a person who, after paying regular dues, has full
265 privileges of a club under this title.
266 [(33)] (34) (a) "Military installation" means a base, air field, camp, post, station, yard,
267 center, or homeport facility for a ship:
268 (i) (A) under the control of the United States Department of Defense; or
269 (B) of the National Guard;
270 (ii) that is located within the state; and
271 (iii) including a leased facility.
272 (b) "Military installation" does not include a facility used primarily for:
273 (i) civil works;
274 (ii) a rivers and harbors project; or
275 (iii) a flood control project.

276 [(34)] (35) "Minor" means an individual under the age of 21 years.
277 [(35)] (36) "Nude," "nudity," or "state of nudity" means:
278 (a) the appearance of:
279 (i) the nipple or areola of a female human breast;
280 (ii) a human genital;
281 (iii) a human pubic area; or
282 (iv) a human anus; or
283 (b) a state of dress that fails to opaquely cover:
284 (i) the nipple or areola of a female human breast;
285 (ii) a human genital;
286 (iii) a human pubic area; or
287 (iv) a human anus.
288 [(36)] (37) "Outlet" means a location other than a state store or package agency where
289 an alcoholic beverage is sold pursuant to a license issued by the commission.
290 [(37)] (38) "Package" means any of the following containing liquor:
291 (a) a container;
292 (b) a bottle;
293 (c) a vessel; or
294 (d) other receptacle.
295 [(38)] (39) "Package agency" means a retail liquor location operated:
296 (a) under a contractual agreement with the department; and
297 (b) by a person:
298 (i) other than the state; and
299 (ii) who is authorized by the commission to sell package liquor for consumption off the
300 premises of the package agency.
301 [(39)] (40) "Package agent" means a person permitted by the commission to operate a
302 package agency pursuant to a contractual agreement with the department to sell liquor from
303 premises that the package agent shall provide and maintain.
304 [(40)] (41) "Permittee" means a person issued a permit by the commission to perform
305 an act or exercise a privilege as specifically granted in the permit.
306 [(41)] (42) "Person" means an individual, partnership, firm, corporation, limited

307 liability company, association, business trust, or other form of business enterprise, including a
308 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
309 more limited meaning is disclosed by the context.
310 [(42)] (43) "Premises" means a building, enclosure, room, or equipment used in
311 connection with the sale, storage, service, manufacture, distribution, or consumption of an
312 alcoholic product, unless otherwise defined in this title or in the rules adopted by the
313 commission.
314 [(43)] (44) "Prescription" means a writing in legal form, signed by a physician or
315 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
316 [(44)] (45) (a) "Privately hosted event" or "private social function" means a specific
317 social, business, or recreational event:
318 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
319 group; and
320 (ii) that is limited in attendance to people who are specifically designated and their
321 guests.
322 (b) "Privately hosted event" and "private social function" does not include an event to
323 which the general public is invited, whether for an admission fee or not.
324 [(45)] (46) (a) "Proof of age" means:
325 (i) an identification card;
326 (ii) an identification that:
327 (A) is substantially similar to an identification card;
328 (B) is issued in accordance with the laws of a state other than Utah in which the
329 identification is issued;
330 (C) includes date of birth; and
331 (D) has a picture affixed;
332 (iii) a valid driver license certificate that:
333 (A) includes date of birth;
334 (B) has a picture affixed; and
335 (C) is issued:
336 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
337 (II) in accordance with the laws of the state in which it is issued;

338 (iv) a military identification card that:
339 (A) includes date of birth; and
340 (B) has a picture affixed; or
341 (v) a valid passport.
342 (b) "Proof of age" does not include a driving privilege card issued in accordance with
343 Section 53-3-207 .
344 [(46)] (47) (a) "Public building" means a building or permanent structure owned or
345 leased by the state, a county, or local government entity that is used for:
346 (i) public education;
347 (ii) transacting public business; or
348 (iii) regularly conducting government activities.
349 (b) "Public building" does not mean or refer to a building owned by the state or a
350 county or local government entity when the building is used by a person, in whole or in part,
351 for a proprietary function.
352 (48) "Qualifying heavy beer" is as defined in Section 32A-11-202 .
353 [(47)] (49) "Representative" means an individual who is compensated by salary,
354 commission, or other means for representing and selling an alcoholic beverage product of a
355 manufacturer, supplier, or importer of liquor including:
356 (a) wine;
357 (b) heavy beer; or
358 (c) [on or after October 1, 2008,] a flavored malt beverage.
359 [(48)] (50) "Residence" means a person's principal place of abode within Utah.
360 [(49)] (51) "Restaurant" means a business establishment:
361 (a) where a variety of foods is prepared and complete meals are served to the general
362 public;
363 (b) located on a premises having adequate culinary fixtures for food preparation and
364 dining accommodations; and
365 (c) that is engaged primarily in serving meals to the general public.
366 [(50)] (52) "Retailer" means a person engaged in the sale or distribution of an alcoholic
367 beverage to a consumer.
368 [(51)] (53) (a) "Sample" includes:

369 (i) a department sample; and
370 (ii) an industry representative sample.
371 (b) "Department sample" means liquor that is placed in the possession of the
372 department for testing, analysis, and sampling including:
373 (i) wine;
374 (ii) heavy beer; or
375 (iii) [on or after October 1, 2008,] a flavored malt beverage.
376 (c) "Industry representative sample" means liquor that is placed in the possession of the
377 department:
378 (i) for testing, analysis, and sampling by a local industry representative on the premises
379 of the department to educate the local industry representative of the quality and characteristics
380 of the product; and
381 (ii) including:
382 (A) wine;
383 (B) heavy beer; or
384 (C) [on or after October 1, 2008,] a flavored malt beverage.
385 [(52)] (54) (a) "School" means a building used primarily for the general education of
386 minors.
387 (b) "School" does not include:
388 (i) a nursery school;
389 (ii) an infant day care center; or
390 (iii) a trade or technical school.
391 [(53)] (55) "Sell," "sale," and "to sell" means a transaction, exchange, or barter
392 whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
393 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
394 obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
395 employee, unless otherwise defined in this title or the rules made by the commission.
396 [(54)] (56) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
397 which opaque clothing covers no more than:
398 (a) the nipple and areola of the female human breast in a shape and color other than the
399 natural shape and color of the nipple and areola; and

400 (b) the human genitals, pubic area, and anus:
401 (i) with no less than the following at its widest point:
402 (A) four inches coverage width in the front of the human body; and
403 (B) five inches coverage width in the back of the human body; and
404 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
405 [(55)] (57) "Sexually oriented entertainer" means a person who while in a state of
406 seminudity appears at or performs:
407 (a) for the entertainment of one or more patrons;
408 (b) on the premises of:
409 (i) a class D private club as defined in Subsection 32A-5-101 (3); or
410 (ii) a tavern;
411 (c) on behalf of or at the request of the licensee described in Subsection [(55)] (57)(b);
412 (d) on a contractual or voluntary basis; and
413 (e) whether or not the person is designated:
414 (i) an employee of the licensee described in Subsection [(55)] (57)(b);
415 (ii) an independent contractor of the licensee described in Subsection [(55)] (57)(b);
416 (iii) an agent of the licensee described in Subsection [(55)] (57)(b); or
417 (iv) otherwise of the licensee described in Subsection [(55)] (57)(b).
418 [(56)] (58) "Small brewer" means a brewer who manufactures less than 60,000 barrels
419 of beer, heavy beer, and flavored malt beverages per year.
420 [(57)] (59) (a) "Spirituous liquor" means liquor that is distilled.
421 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
422 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
423 [(58)] (60) (a) "State label" means the official label designated by the commission
424 affixed to a liquor container sold in the state.
425 (b) "State label" includes the department identification mark and inventory control
426 number.
427 [(59)] (61) (a) "State store" means a facility for the sale of package liquor:
428 (i) located on premises owned or leased by the state; and
429 (ii) operated by a state employee.
430 (b) "State store" does not apply to a:

431 (i) licensee;
432 (ii) permittee; or
433 (iii) package agency.
434 [(60)] (62) "Supplier" means a person selling an alcoholic beverage to the department.
435 [(61)] (63) (a) "Tavern" means a business establishment that is:
436 (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
437 establishment's premises; and
438 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
439 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
440 revenue of the sale of food, although food need not be sold in the establishment:
441 (i) a beer bar;
442 (ii) a parlor;
443 (iii) a lounge;
444 (iv) a cabaret; or
445 (v) a nightclub.
446 [(62)] (64) "Temporary domicile" means the principal place of abode within Utah of a
447 person who does not have a present intention to continue residency within Utah permanently or
448 indefinitely.
449 [(63)] (65) "Unsaleable liquor merchandise" means merchandise that:
450 (a) is unsaleable because the merchandise is:
451 (i) unlabeled;
452 (ii) leaky;
453 (iii) damaged;
454 (iv) difficult to open; or
455 (v) partly filled;
456 (b) is in a container:
457 (i) having faded labels or defective caps or corks;
458 (ii) in which the contents are:
459 (A) cloudy;
460 (B) spoiled; or
461 (C) chemically determined to be impure; or

462 (iii) that contains:
463 (A) sediment; or
464 (B) a foreign substance; or
465 (c) is otherwise considered by the department as unfit for sale.
466 [(64)] (66) "Visitor" means an individual that in accordance with Section 32A-5-107
467 holds limited privileges in a private club by virtue of a visitor card.
468 [(65)] (67) "Warehouser" means a person, other than a licensed manufacturer, engaged
469 in the importation for sale, storage, or distribution of liquor regardless of amount.
470 [(66)] (68) (a) "Wholesaler" means a person engaged in the importation for sale, or in
471 the sale of:
472 (i) beer in wholesale or jobbing quantities to one or more retailers[.]; or
473 (ii) heavy beer in accordance with Chapter 11, Part 2, Heavy Beer Wholesaling Act.
474 (b) Notwithstanding Subsection [(66)] (68)(a), "wholesaler" does not include a small
475 brewer selling beer manufactured by that brewer.
476 [(67)] (69) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
477 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
478 another ingredient is added.
479 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
480 provided in this title.
481 Section 2. Section 32A-1-107 is amended to read:
482 32A-1-107. Powers and duties of the commission.
483 (1) The commission shall:
484 (a) act as a general policymaking body on the subject of alcoholic product control;
485 (b) adopt and issue policies, directives, rules, and procedures;
486 (c) set policy by written rules that establish criteria and procedures for:
487 (i) granting, denying, suspending, or revoking [permits, licenses, certificates of
488 approval, and package agencies] a permit, license, certificate of approval, or package agency;
489 (ii) controlling liquor merchandise inventory including:
490 (A) listing and delisting [products] a product;
491 (B) the procedures for testing a new [products] product;
492 (C) purchasing policy;

493 (D) turnover requirements for a regularly coded [products] product to be continued;
494 [and]
495 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
496 (F) what heavy beers may be sold by a beer wholesaler licensee in accordance with
497 Chapter 11, Part 2, Heavy Beer Wholesaling Act; and
498 (iii) determining the location of a state [stores, package agencies, and outlets] store,
499 package agency, or outlet;
500 (d) decide within the limits and under the conditions imposed by this title, the number
501 and location of state stores, package agencies, and outlets established in the state;
502 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
503 certificates of approval, and package agencies for the purchase, sale, storage, service,
504 manufacture, distribution, and consumption of an alcoholic [products] product:
505 (i) a package [agencies] agency;
506 (ii) a restaurant [licenses] license;
507 (iii) an airport lounge [licenses] license;
508 (iv) a limited restaurant [licenses] license;
509 (v) an on-premise banquet [licenses] license;
510 (vi) a private club [licenses] license;
511 (vii) an on-premise beer retailer [licenses] license;
512 (viii) a temporary special event beer [permits] permit;
513 (ix) a special use [permits] permit;
514 (x) a single event [permits] permit;
515 (xi) a manufacturing [licenses] license;
516 (xii) a liquor warehousing [licenses] license;
517 (xiii) a beer wholesaling [licenses] license; and
518 (xiv) an out-of-state brewer [certificates] certificate of approval;
519 (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
520 package agencies, and outlets[;], except that:
521 (i) the commission may not set the prices at which a beer wholesaler licensee may sell
522 heavy beer to a liquor retailer as provided in Chapter 11, Part 2, Heavy Beer Wholesaling Act;
523 and

524 (ii) the price fixed by the commission for a liquor retailer to sell heavy beer on draft
525 may reflect that the heavy beer is sold at a price set by the beer wholesaler licensee;
526 (g) issue and distribute price lists showing the price to be paid by [purchasers] a
527 purchaser for each class, variety, or brand of liquor kept for sale by the department;
528 (h) (i) require the director to follow sound management principles; and
529 (ii) require periodic reporting from the director to ensure that:
530 (A) sound management principles are being followed; and
531 (B) policies established by the commission are being observed;
532 (i) (i) receive, consider, and act in a timely manner upon [all] the reports,
533 recommendations, and matters submitted by the director to the commission; and
534 (ii) do [all] the things necessary to support the department in properly performing the
535 department's duties and responsibilities;
536 (j) obtain temporarily and for special purposes the services of [experts and persons] an
537 expert or person engaged in the practice of a profession or who possess any needed skills,
538 talents, or abilities if:
539 (i) considered expedient; and
540 (ii) approved by the governor;
541 (k) prescribe the duties of a departmental [officials] official authorized to assist the
542 commission in issuing [permits, licenses, certificates of approval, and package agencies] a
543 permit, license, certificate of approval, or package agency under this title;
544 (l) prescribe, consistent with this title, the fees payable for:
545 (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
546 certificate of approval, or package agency issued under this title; or
547 (ii) anything done or permitted to be done under this title;
548 (m) prescribe the conduct, management, and equipment of [any] premises upon which
549 an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
550 (n) make rules governing the credit terms of:
551 (i) a beer [sales to retailers] sale to a retailer within the state; and
552 (ii) a heavy beer sale to a liquor retailer within the state in accordance with Chapter 11,
553 Part 2, Heavy Beer Wholesaling Act;
554 (o) require that each of the following, where required in this title, display in a

555 prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
556 or drugs is a serious crime that is prosecuted aggressively in Utah.":
557 (i) a state store;
558 (ii) a permittee;
559 (iii) a licensee; and
560 (iv) a package agency; and
561 (p) subject to Subsection (4) and as provided in this title, impose fines against:
562 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
563 (1)(e); or
564 (ii) any officer, employee, or agent of a permittee, licensee, certificate holder, or
565 package agent described in Subsection (1)(p)(i).
566 (2) The power of the commission to do the following is plenary, except as otherwise
567 provided by this title, and not subject to review:
568 (a) establish a state [stores] store;
569 (b) create a package [agencies] agency;
570 (c) grant authority to operate a package [agencies] agency; and
571 (d) grant or deny [permits, licenses, and certificates of approval] a permit, license, or
572 certificate of approval.
573 (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
574 [any] a suspension or revocation [hearings] hearing required by law.
575 (4) (a) In [any] a case [where] when the commission [is given] has the power to
576 suspend [any] a permit, license, certificate of approval, or package agency the commission may
577 impose a fine in addition to or in lieu of suspension.
578 (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
579 (i) [any] a single Notice of Agency Action; or
580 (ii) a single action against a package agency.
581 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
582 for each violation.
583 Section 3. Section 32A-1-109 is amended to read:
584 32A-1-109. Powers and duties of the director.
585 Subject to the powers and responsibilities vested in the commission by this title the

586 director shall:
587 (1) prepare and propose to the commission one or more general policies, directives,
588 rules, and procedures governing the administrative activities of the department, and may
589 submit other recommendations to the commission as the director considers in the interest of
590 [its] the commission's or the department's business;
591 (2) within the general policies, directives, rules, and procedures of the commission[,]:
592 (a) provide day-to-day direction, coordination, and delegation of responsibilities in the
593 administrative activities of the department's business; and [promulgate]
594 (b) make one or more internal department policies, directives, rules, and procedures
595 relating to department personnel matters, and the day-to-day operation of the department
596 consistent with those of the commission;
597 (3) (a) appoint or employ personnel as considered necessary in the administration of
598 this title [and];
599 (b) prescribe the conditions of [their] employment[, define their] for the personnel
600 described in Subsection (3)(a);
601 (c) define the respective duties and powers[, fix their] for the personnel described in
602 Subsection (3)(a);
603 (d) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
604 Management Act, for the personnel described in Subsection (3)(a); and
605 (e) designate those employees required to give [bonds] a bond and specify the bond
606 amounts;
607 (4) establish and secure adherence to a system of reports, controls, and performance in
608 [all] matters relating to personnel, security, department property management, and operation of
609 [department offices, warehouses, state stores, package agencies, and licensees;]:
610 (a) a department office;
611 (b) a warehouse;
612 (c) a state store;
613 (d) a package agency; and
614 (e) a licensee;
615 (5) within the policies, directives, rules, and procedures approved by the commission
616 and provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,

617 transportation, and delivery of an alcoholic [products] product;
618 (6) prepare for commission approval:
619 (a) recommendations regarding the location, establishment, relocation, and closure of a
620 state [stores and package agencies] store or package agency;
621 (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation
622 of [licenses and permits] a license or permit;
623 (c) an annual [budgets] budget, proposed legislation, and one or more reports as
624 required by law and sound business principles;
625 (d) plans for reorganizing divisions of the department and [their] the functions of the
626 divisions;
627 (e) one or more manuals containing [all] the commission and department policies,
628 directives, rules, and procedures;
629 (f) an inventory control system;
630 (g) any other [reports and recommendations] report or recommendation as may be
631 requested by the commission;
632 (h) rules governing the credit terms of the sale of:
633 (i) beer [sales] to a beer retailer [licensees;] licensee; or
634 (ii) heavy beer to a liquor retailer within the state in accordance with Chapter 11, Part
635 2, Heavy Beer Wholesaling Act;
636 (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
637 dispensing [systems] system;
638 (j) rules governing the posting of a list of types and brand names of liquor being served
639 through a calibrated metered dispensing [systems] system;
640 (k) one or more price lists issued and distributed showing the price to be paid for each
641 class, variety, or brand of liquor kept for sale at a state [stores, package agencies, and outlets]
642 store, package agency, or outlet;
643 (l) one or more directives prescribing the books of account kept by the department and
644 by a state [stores, package agencies, and outlets] store, package agency, or outlet;
645 (m) an official state label and the manner in which the label shall be affixed to [every]
646 a package of liquor sold under this title; and
647 (n) a policy prescribing the manner of giving and serving [notices] a notice required by

648 this title or rules made under this title;
649 (7) make available through the department to [any] a person, upon request, a copy of
650 [any] a policy or directive [promulgated] made by the director;
651 [(8) adopt internal departmental policies, directives, rules, and procedures relating to
652 department personnel matters and the day-to-day operation of the department that are
653 consistent with those of the commission;]
654 [(9)] (8) keep a current copy of [the manuals containing] a manual that contains the
655 rules and policies of the department and commission available for public inspection;
656 [(10)] (9) (a) after consultation with the governor, determine whether an alcoholic
657 [products] product should not be sold, offered for sale, or otherwise furnished in an area of the
658 state during a period of emergency that is proclaimed by the governor to exist in that area; and
659 (b) issue [any] a necessary public [announcements and directives] announcement or
660 directive with respect to the determination described in Subsection [(10)] (9)(a); and
661 [(11)] (10) perform other duties required by the commission and by law.
662 Section 4. Section 32A-1-119 is amended to read:
663 32A-1-119. Disciplinary proceedings -- Procedure.
664 (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
665 final unappealable judgment or order is issued.
666 (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
667 proceeding to inquire into a matter necessary and proper for the administration of this title and
668 rules adopted under this title:
669 (i) the commission;
670 (ii) a hearing examiner appointed by the commission for the purposes provided in
671 Subsection 32A-1-107 (3);
672 (iii) the director; and
673 (iv) the department.
674 (b) Except as provided in this section or Section 32A-3-106 , the following shall
675 comply with [the procedures and requirements of] Title 63G, Chapter 4, Administrative
676 Procedures Act, in an adjudicative proceeding:
677 (i) the commission;
678 (ii) a hearing examiner appointed by the commission;

679 (iii) the director; and
680 (iv) the department.
681 (c) Except where otherwise provided by law, an adjudicative proceeding before the
682 commission or a hearing examiner appointed by the commission shall be:
683 (i) video or audio recorded; and
684 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
685 Open and Public Meetings Act.
686 (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
687 concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
688 Personnel Management Act.
689 (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
690 conducted in accordance with rules, policies, and procedures made by the commission,
691 director, or department.
692 (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
693 under the authority of the commission, which is responsible for rendering a final decision and
694 order on a disciplinary matter.
695 (b) (i) Nothing in this section precludes the commission from appointing a necessary
696 officer, including a hearing examiner, from within or without the department, to administer the
697 disciplinary proceeding process.
698 (ii) A hearing examiner appointed by the commission:
699 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
700 (B) shall submit to the commission a report including:
701 (I) findings of fact determined on the basis of a preponderance of the evidence
702 presented at the hearing;
703 (II) conclusions of law; and
704 (III) recommendations.
705 (c) Nothing in this section precludes the commission, after the commission renders its
706 final decision and order, from having the director prepare, issue, and cause to be served on the
707 parties the final written order on behalf of the commission.
708 (4) Subject to Section 32A-1-119.5 :
709 (a) The department may initiate a disciplinary proceeding described in Subsection

710 (4)(b) if the department receives:
711 (i) a report from a government agency, peace officer, examiner, or investigator alleging
712 that a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or
713 the rules of the commission;
714 (ii) a final adjudication of criminal liability against a person listed in Subsections
715 32A-1-105 [(17)](18)(a)(i) through (vii) based on an alleged violation of this title; or
716 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
717 Liability, against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) based
718 on an alleged violation of this title.
719 (b) The department may initiate a disciplinary proceeding if the department receives an
720 item listed in Subsection (4)(a) to determine:
721 (i) whether a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii)
722 violated this title or rules of the commission; and
723 (ii) if a violation is found, the appropriate sanction to be imposed.
724 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
725 (i) if required by law;
726 (ii) before revoking or suspending a permit, license, or certificate of approval issued
727 under this title; or
728 (iii) before imposing a fine against a person listed in Subsections
729 32A-1-105 [(17)](18)(a)(i) through (vii).
730 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
731 hearing after receiving proper notice is an admission of the charged violation.
732 (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
733 attend or remain in attendance.
734 (d) The commission or an appointed hearing examiner shall preside over a disciplinary
735 proceeding hearing.
736 (e) A disciplinary proceeding hearing may be closed only after the commission or
737 hearing examiner makes a written finding that the public interest in an open hearing is clearly
738 outweighed by factors enumerated in the closure order.
739 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
740 hearing may:

741 (A) administer [oaths or affirmations] an oath or affirmation;
742 (B) take evidence;
743 (C) take a deposition within or without this state; and
744 (D) require by subpoena from a place within this state:
745 (I) the testimony of a person at a hearing; and
746 (II) the production of a book, record, paper, contract, agreement, document, or other
747 evidence considered relevant to the inquiry.
748 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
749 produce a book, paper, document, or tangible thing as required in the subpoena.
750 (iii) A witness subpoenaed or called to testify or produce evidence who claims a
751 privilege against self-incrimination may not be compelled to testify, but the commission or the
752 hearing examiner shall file a written report with the county attorney or district attorney in the
753 jurisdiction where the privilege is claimed or where the witness resides setting forth the
754 circumstance of the claimed privilege.
755 (iv) (A) A person is not excused from obeying a subpoena without just cause.
756 (B) A district court within the judicial district in which a person alleged to be guilty of
757 willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
758 the party issuing the subpoena, may issue an order requiring the person to:
759 (I) appear before the issuing party; and
760 (II) (Aa) produce documentary evidence if so ordered; or
761 (Bb) give evidence regarding the matter in question.
762 (C) Failure to obey an order of the court may be punished by the court as contempt.
763 (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
764 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
765 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
766 recommend a penalty more severe than that initially sought by the department in the notice of
767 agency action.
768 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
769 shall be served upon the respective parties.
770 (iv) The respondent and the department shall be given reasonable opportunity to file a
771 written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)

772 before final commission action.
773 (h) In a case heard by the commission, it shall issue its final decision and order in
774 accordance with Subsection (3).
775 (6) (a) The commission shall:
776 (i) render a final decision and order on a disciplinary action; and
777 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
778 (b) An order of the commission is considered final on the date the order becomes
779 effective.
780 (c) If the commission is satisfied that a person listed in Subsections
781 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or the commission's rules, in
782 accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
783 (i) suspend or revoke the permit, license, or certificate of approval;
784 (ii) impose a fine against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i)
785 through (vii);
786 (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
787 licensee, or certificate holder; or
788 (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
789 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
790 32A-1-107 (1)(p) and (4).
791 (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
792 licensee shall prominently post a sign provided by the department:
793 (A) during the suspension; and
794 (B) at the entrance of the premises of the permittee or licensee.
795 (ii) The sign required by this Subsection (6)(e) shall:
796 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
797 alcoholic beverage license or permit of this establishment. [Alcoholic beverages] An alcoholic
798 beverage may not be sold, served, furnished, or consumed on these premises during the period
799 of suspension."; and
800 (B) include the dates of the suspension period.
801 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
802 to be posted under this Subsection (6)(e) during the suspension period.

803 (f) If a permit or license is revoked, the commission may order the revocation of a
804 compliance bond posted by the permittee or licensee.
805 (g) A permittee or licensee whose permit or license is revoked may not reapply for a
806 permit or license under this title for three years from the date on which the permit or license is
807 revoked.
808 (h) The commission shall transfer [all] costs assessed into the General Fund in
809 accordance with Section 32A-1-113 .
810 (7) Subject to Section 32A-1-119.5 :
811 (a) In addition to an action taken against a permittee, licensee, or certificate holder
812 under this section, the department may initiate disciplinary action against an officer, employee,
813 or agent of a permittee, licensee, or certificate holder.
814 (b) If an officer, employee, or agent is found to have violated this title, the commission
815 may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
816 wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
817 officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
818 period determined by the commission.
819 (8) Subject to Section 32A-1-119.5 :
820 (a) The department may initiate a disciplinary proceeding for an alleged violation of
821 this title or the rules of the commission against:
822 (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
823 (ii) an officer, employee, agent, or representative of a person listed in Subsection
824 (8)(a)(i).
825 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
826 commission may, in addition to other penalties prescribed by this title, order:
827 (A) the removal of the manufacturer's, supplier's, or importer's one or more products
828 from the department's sales list; and
829 (B) a suspension of the department's purchase of the one or more products described in
830 Subsection (8)(b)(i)(A) for a period determined by the commission.
831 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
832 (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
833 beverage, or its officer, employee, agent, or representative violates this title; and

834 (B) the manufacturer, supplier, or importer:
835 (I) directly commits the violation; or
836 (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
837 the violation.
838 (9) Subject to Section 32A-1-119.5 :
839 (a) The department may initiate a disciplinary proceeding against a brewer holding a
840 certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
841 of the commission.
842 (b) If the commission makes a finding that the brewer holding a certificate of approval
843 violates this title or rules of the commission, the commission may take an action against the
844 brewer holding a certificate of approval that the commission could take against a licensee
845 including:
846 (i) suspension or revocation of the certificate of approval; and
847 (ii) imposition of a fine.
848 (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
849 the commission or a hearing examiner appointed by the commission shall proceed formally in
850 accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
851 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
852 and welfare;
853 (ii) the alleged violation involves:
854 (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
855 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
856 Entertainment Act;
857 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
858 of the respondent;
859 (D) interfering or refusing to cooperate with:
860 (I) an authorized official of the department or the state in the discharge of the official's
861 duties in relation to the enforcement of this title; or
862 (II) a peace officer in the discharge of the peace officer's duties in relation to the
863 enforcement of this title;
864 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;

865 (F) unlawful importation of an alcoholic product; or
866 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
867 32A-12-601 (2)[,]:
868 (I) to a person other than:
869 (Aa) the department; or
870 (Bb) a military installation[,]; and
871 (II) except to the extent permitted by this title, including Chapter 11, Part 2, Heavy
872 Beer Wholesaling Act; or
873 (iii) the department determines to seek in a disciplinary proceeding hearing:
874 (A) an administrative fine exceeding $3,000;
875 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
876 or
877 (C) a revocation of a license, permit, or certificate of approval.
878 (b) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
879 Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
880 Section 5. Section 32A-1-119.5 is amended to read:
881 32A-1-119.5. Timing of reporting violations.
882 (1) As used in this section:
883 (a) "Department compliance officer" means an individual who is:
884 (i) an auditor or inspector; and
885 (ii) employed by the department.
886 (b) "Nondepartment enforcement agency" means an agency that:
887 (i) (A) is a state agency other than the department; or
888 (B) is an agency of a county, city, or town; and
889 (ii) has a responsibility, as provided in another provision of this title, to enforce one or
890 more provisions of this title.
891 (c) "Nondepartment enforcement officer" means an individual who is:
892 (i) a peace officer, examiner, or investigator; and
893 (ii) employed by an agency described in Subsection (1)(b).
894 (2) A disciplinary proceeding may not be initiated or maintained by the commission or
895 department on the basis, in whole or in part, of a violation of this title unless a person listed in

896 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) against whom the violation is alleged is
897 notified by the department of the violation in accordance with this section.
898 (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer
899 may not report a violation of this title to the department more than eight business days after the
900 day on which a nondepartment enforcement officer or agency completes an investigation that
901 finds a violation of this title.
902 (b) If the commission or department wants the right to initiate or maintain a
903 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
904 report described in Subsection (3)(a), the department shall notify a person listed in Subsections
905 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this title:
906 (i) by no later than eight business days of the day on which the department receives the
907 report described in Subsection (3)(a); and
908 (ii) that the commission or department may initiate or maintain a disciplinary
909 proceeding on the basis, in whole or in part, of the violation.
910 (4) 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 by
912 report of a department compliance officer, the department shall notify a person listed in
913 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
914 title:
915 (a) by no later than eight business days of the day on which the department compliance
916 officer completes an investigation that finds a violation of this title; and
917 (b) that the commission or department may initiate or maintain a disciplinary
918 proceeding on the basis, in whole or in part, of the violation.
919 (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
920 a person listed in Subsection 32A-1-105 [(15)](18)(a)(vii).
921 (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
922 the oral notification the department provides written notification.
923 (b) The written notification described in Subsection (6)(a) may be sent outside the time
924 periods required by this section.
925 (7) The department shall maintain a record of a notification required by Subsection (2),
926 (3)(b), or (4) that includes:

927 (a) the name of the person notified; and
928 (b) the date of the notification.
929 Section 6. Section 32A-4-106 is amended to read:
930 32A-4-106. Operational restrictions.
931 A person granted a restaurant liquor license and the employees and management
932 personnel of the restaurant shall comply with the following conditions and requirements.
933 Failure to comply may result in a suspension or revocation of the restaurant liquor license or
934 other disciplinary action taken against individual employees or management personnel.
935 (1) (a) [Liquor] Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling
936 Act, liquor may not be purchased by a restaurant liquor licensee except from a state store or
937 package agency.
938 (b) Liquor purchased from a state store or package agency may be transported by the
939 restaurant liquor licensee from the place of purchase to the licensed premises.
940 (c) Payment for liquor shall be made in accordance with rules established by the
941 commission.
942 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
943 a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
944 dispensing system approved by the department in accordance with commission rules adopted
945 under this title, except that:
946 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
947 system if used as a secondary flavoring ingredient in a beverage subject to the following
948 restrictions:
949 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
950 a primary spirituous liquor;
951 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
952 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
953 on the floor plan provided to the department; and
954 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
955 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
956 system if used:
957 (i) as a flavoring on a dessert; and

958 (ii) in the preparation of a flaming food dish, drink, or dessert;
959 (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
960 and
961 (d) a restaurant patron may have no more than one spirituous liquor drink at a time
962 before the patron.
963 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
964 exceed five ounces per glass or individual portion.
965 (ii) An individual portion of wine may be served to a patron in more than one glass as
966 long as the total amount of wine does not exceed five ounces.
967 (iii) An individual portion of wine is considered to be one alcoholic beverage under
968 Subsection (7)(e).
969 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
970 fixed by the commission to a table of four or more persons.
971 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
972 fixed by the commission to a table of less than four persons.
973 (c) A wine service may be performed and a service charge assessed by a restaurant
974 liquor licensee as authorized by commission rule for wine purchased at the restaurant.
975 [(4) (a) Heavy beer may be served in an original container not exceeding one liter at a
976 price fixed by the commission.]
977 (4) (a) A restaurant liquor licensee may serve heavy beer:
978 (i) at a price fixed by the commission; and
979 (ii) (A) in an original container not exceeding one liter; or
980 (B) subject to Subsection (4)(c):
981 (I) in an open container; and
982 (II) on draft.
983 (b) A flavored malt beverage may be served in an original container not exceeding one
984 liter at a price fixed by the commission.
985 (c) A restaurant liquor licensee shall sell heavy beer sold pursuant to Subsection
986 (4)(a)(ii)(B) in a size of container that does not exceed two liters, except that heavy beer may
987 not be sold to an individual patron in a size of container that exceeds one liter.
988 [(c)] (d) A service charge may be assessed by a restaurant liquor licensee as authorized

989 by commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
990 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
991 on-premise consumption:
992 (A) in an open container; and
993 (B) on draft.
994 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
995 not exceed two liters, except that beer may not be sold to an individual patron in a size of
996 container that exceeds one liter.
997 (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
998 (i) may do so without obtaining a separate on-premise beer retailer license from the
999 commission; and
1000 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1001 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1002 inconsistent with or less restrictive than the operational restrictions under this part.
1003 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1004 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1005 restaurant's:
1006 (i) state liquor license; and
1007 (ii) alcoholic beverage license issued by the local authority.
1008 (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1009 designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
1010 first applies for and receives approval from the department for a change of location within the
1011 restaurant.
1012 (7) (a) (i) A patron may only make an alcoholic beverage purchase in the restaurant
1013 from and be served by a person employed, designated, and trained by the restaurant liquor
1014 licensee to sell and serve an alcoholic beverage.
1015 (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1016 employee of the restaurant or carries bottled wine onto the premises of the restaurant pursuant
1017 to Subsection (14) may thereafter serve wine from the bottle to the patron or others at the
1018 patron's table.
1019 (b) An alcoholic beverage shall be delivered by a server to the patron.

1020 (c) An alcoholic beverage may only be consumed at the patron's table or counter.
1021 (d) An alcoholic beverage may not be served to or consumed by a patron at a bar.
1022 (e) A restaurant patron may have no more than two alcoholic beverages of any kind at a
1023 time before the patron, subject to the limitation in Subsection (2)(d).
1024 (8) The liquor storage area shall remain locked at all times other than those hours and
1025 days when liquor sales are authorized by law.
1026 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
1027 restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
1028 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1029 Licenses, for on-premise beer licensees.
1030 (10) An alcoholic beverage may not be sold except in connection with an order for food
1031 prepared, sold, and served at the restaurant.
1032 (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
1033 (a) minor;
1034 (b) person actually, apparently, or obviously intoxicated;
1035 (c) known habitual drunkard; or
1036 (d) known interdicted person.
1037 (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
1038 (ii) Liquor may not be sold at a discount price on any date or at any time.
1039 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1040 beverage to the restaurant liquor licensee.
1041 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1042 over consumption or intoxication.
1043 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1044 hours of a restaurant liquor licensee's business day such as a "happy hour."
1045 (e) More than one alcoholic beverage may not be sold or served for the price of a single
1046 alcoholic beverage.
1047 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
1048 not be sold or served for a fixed price.
1049 (g) A restaurant liquor licensee may not engage in a public promotion involving or
1050 offering free an alcoholic beverage to the general public.

1051 (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
1052 (a) the restaurant liquor licensee; or
1053 (b) an employee or agent of the restaurant liquor licensee.
1054 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
1055 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1056 discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
1057 licensee for on-premise consumption.
1058 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
1059 officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
1060 (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
1061 consumption; or
1062 (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
1063 restaurant liquor licensee's premises.
1064 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1065 or other representative of the restaurant liquor licensee upon entering the restaurant.
1066 (d) A wine service may be performed and a service charge assessed by a restaurant
1067 liquor licensee as authorized by commission rule for wine carried in by a patron.
1068 (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
1069 employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
1070 restaurant premises an open container that:
1071 (i) is used primarily for drinking purposes; and
1072 (ii) contains an alcoholic beverage.
1073 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
1074 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
1075 onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
1076 recorked or recapped before removal.
1077 (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
1078 alcoholic beverage.
1079 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1080 employed to enter the sale at a cash register or other sales recording device.
1081 (17) An employee of a restaurant liquor licensee, while on duty, may not:

1082 (a) consume an alcoholic beverage; or
1083 (b) be intoxicated.
1084 (18) A charge or fee made in connection with the sale, service, or consumption of liquor
1085 may be stated in food or alcoholic beverage menus including:
1086 (a) a set-up charge;
1087 (b) a service charge; or
1088 (c) a chilling fee.
1089 (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
1090 (a) the liquor license that is issued by the department;
1091 (b) a list of the types and brand names of liquor being served through its calibrated
1092 metered dispensing system; and
1093 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1094 drugs is a serious crime that is prosecuted aggressively in Utah."
1095 (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
1096 licensee:
1097 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1098 Chapter 10, Part 11, Gambling;
1099 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1100 Part 11, Gambling; or
1101 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1102 the risking of something of value for a return or for an outcome when the return or outcome is
1103 based upon an element of chance, excluding the playing of an amusement device that confers
1104 only an immediate and unrecorded right of replay not exchangeable for value.
1105 (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record
1106 showing in detail:
1107 (i) quarterly expenditures made separately for:
1108 (A) malt or brewed beverages;
1109 (B) set-ups;
1110 (C) liquor;
1111 (D) food; and
1112 (E) [all] other items required by the department; and

1113 (ii) sales made separately for:
1114 (A) malt or brewed beverages;
1115 (B) set-ups;
1116 (C) food; and
1117 (D) [all] other items required by the department.
1118 (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
1119 (i) in a form approved by the department; and
1120 (ii) current for each three-month period.
1121 (c) An expenditure shall be supported by:
1122 (i) a delivery ticket;
1123 (ii) an invoice;
1124 (iii) a receipted bill;
1125 (iv) a canceled check;
1126 (v) a petty cash voucher; or
1127 (vi) other sustaining datum or memorandum.
1128 (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
1129 liquor licensee shall maintain accounting and other records and documents as the department
1130 may require.
1131 (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
1132 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
1133 other document of the restaurant that is required to be made, maintained, or preserved by this
1134 title or the rules of the commission for the purpose of deceiving the commission or the
1135 department, or an official or employee of the commission or department, is subject to:
1136 (i) the suspension or revocation of the restaurant's liquor license; and
1137 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1138 (22) (a) A restaurant liquor licensee may not close or cease operation for a period
1139 longer than 240 hours, unless:
1140 (i) the restaurant liquor licensee notifies the department in writing at least seven days
1141 before the day on which the restaurant liquor licensee closes or ceases operation; and
1142 (ii) the closure or cessation of operation is first approved by the department.
1143 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the

1144 restaurant liquor licensee shall immediately notify the department by telephone.
1145 (c) (i) The department may authorize a closure or cessation of operation for a period
1146 not to exceed 60 days.
1147 (ii) The department may extend the initial period an additional 30 days upon:
1148 (A) written request of the restaurant liquor licensee; and
1149 (B) a showing of good cause.
1150 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1151 commission approval.
1152 (d) A notice shall include:
1153 (i) the dates of closure or cessation of operation;
1154 (ii) the reason for the closure or cessation of operation; and
1155 (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
1156 (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
1157 authorization before closure or cessation of operation results in an automatic forfeiture of:
1158 (i) the license; and
1159 (ii) the unused portion of the license fee for the remainder of the license year effective
1160 immediately.
1161 (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
1162 approved date results in an automatic forfeiture of:
1163 (i) the license; and
1164 (ii) the unused portion of the license fee for the remainder of the license year.
1165 (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
1166 business from the sale of food, which does not include mix for an alcoholic beverage or service
1167 charges.
1168 (24) A restaurant liquor license may not be transferred from one location to another,
1169 without prior written approval of the commission.
1170 (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
1171 assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
1172 to another person whether for monetary gain or not.
1173 (b) A restaurant liquor license has no monetary value for the purpose of any type of
1174 disposition.

1175 (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
1176 shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
1177 beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
1178 beverage ordered or consumed.
1179 (27) A person's willingness to serve an alcoholic beverage may not be made a
1180 condition of employment as a server with a restaurant that has a restaurant liquor license.
1181 (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
1182 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
1183 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
1184 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
1185 58-37-2 ; or
1186 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
1187 Section 58-37a-3 .
1188 Section 7. Section 32A-4-206 is amended to read:
1189 32A-4-206. Operational restrictions.
1190 A person granted an airport lounge liquor license and the employees and management
1191 personnel of the airport lounge shall comply with the following conditions and requirements.
1192 Failure to comply may result in a suspension or revocation of the airport lounge liquor license
1193 or other disciplinary action taken against individual employees or management personnel.
1194 (1) (a) [Liquor] Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling
1195 Act, liquor may not be purchased by an airport lounge liquor licensee except from a state store
1196 or package agency.
1197 (b) Liquor purchased from a state store or package agency may be transported by the
1198 airport lounge liquor licensee from the place of purchase to the licensed premises.
1199 (c) Payment for liquor shall be made in accordance with the rules established by the
1200 commission.
1201 (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
1202 only in a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated
1203 metered dispensing system approved by the department in accordance with commission rules
1204 adopted under this title, except that:
1205 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing

1206 system if used as a secondary flavoring ingredient in a beverage subject to the following
1207 restrictions:
1208 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1209 a spirituous primary liquor;
1210 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1211 (iii) the airport lounge liquor licensee shall designate a location where flavorings are
1212 stored on the floor plan provided to the department; and
1213 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1214 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1215 system if used:
1216 (i) as a flavoring on a dessert; and
1217 (ii) in the preparation of a flaming food dish, drink, or dessert;
1218 (c) an airport lounge patron may have no more than 2.5 ounces of spirituous liquor at a
1219 time before the patron; and
1220 (d) an airport lounge patron may have no more than two spirituous liquor drinks at a
1221 time before the patron, except that an airport lounge patron may not have two spirituous liquor
1222 drinks before the airport lounge patron if one of the spirituous liquor drinks consists only of the
1223 primary spirituous liquor for the other spirituous liquor drink.
1224 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
1225 exceed five ounces per glass or individual portion.
1226 (ii) An individual portion may be served to a patron in more than one glass as long as
1227 the total amount of wine does not exceed five ounces.
1228 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1229 Subsection (7)(c).
1230 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1231 fixed by the commission to a table of four or more persons.
1232 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1233 fixed by the commission to a table of less than four persons.
1234 (c) A wine service may be performed and a service charge assessed by the airport
1235 lounge liquor licensee as authorized by commission rule for wine purchased at the airport
1236 lounge.

1237 [(4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1238 price fixed by the commission.]
1239 (4) (a) An airport lounge liquor licensee may serve heavy beer:
1240 (i) at a price fixed by the commission; and
1241 (ii) (A) in an original container not exceeding one liter; or
1242 (B) subject to Subsection (4)(c):
1243 (I) in an open container; and
1244 (II) on draft.
1245 (b) A flavored malt beverage may be served in an original container not exceeding one
1246 liter at a price fixed by the commission.
1247 (c) An airport lounge liquor licensee shall sell heavy beer sold pursuant to Subsection
1248 (4)(a)(ii)(B) in a size of container that does not exceed two liters, except that heavy beer may
1249 not be sold to an individual patron in a size of container that exceeds one liter.
1250 [(c)] (d) A service charge may be assessed by the airport lounge liquor licensee as
1251 authorized by commission rule for heavy beer or a flavored malt beverage purchased at the
1252 airport lounge.
1253 (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge liquor licensee may sell
1254 beer for on-premise consumption:
1255 (A) in an open container; and
1256 (B) on draft.
1257 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1258 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1259 container that exceeds one liter.
1260 (b) An airport lounge liquor licensee that sells beer pursuant to Subsection (5)(a):
1261 (i) may do so without obtaining a separate on-premise beer retailer license from the
1262 commission; and
1263 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1264 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1265 inconsistent with or less restrictive than the operational restrictions under this part.
1266 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1267 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport

1268 lounge's:
1269 (i) state liquor license; and
1270 (ii) alcoholic beverage license issued by the local authority.
1271 (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1272 designated in the airport lounge liquor licensee's application, unless the airport lounge liquor
1273 licensee first applies for and receives approval from the department for a change of location
1274 within the airport lounge.
1275 (7) (a) A patron may only make a purchase in the airport lounge from and be served by
1276 a person employed, designated, and trained by the airport lounge liquor licensee to sell,
1277 dispense, and serve an alcoholic beverage.
1278 (b) Notwithstanding Subsection (7)(a), a patron who purchases bottled wine from an
1279 employee of the airport lounge may serve wine from the bottle to the patron or others at the
1280 patron's table.
1281 (c) An airport lounge patron may have no more than two alcoholic beverages of any
1282 kind at a time before the patron, subject to the limitation in Subsection (2)(d).
1283 (8) The liquor storage area shall remain locked at all times other than those hours and
1284 days when liquor sales and service are authorized by law.
1285 (9) An alcoholic beverage may not be sold, offered for sale, served, or otherwise
1286 furnished at an airport lounge on any day after 12 midnight and before 8 a.m.
1287 (10) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
1288 (a) minor;
1289 (b) person actually, apparently, or obviously intoxicated;
1290 (c) known habitual drunkard; or
1291 (d) known interdicted person.
1292 (11) (a) (i) Liquor may be sold only at a price fixed by the commission.
1293 (ii) Liquor may not be sold at a discount price on any date or at any time.
1294 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1295 beverage to the airport lounge liquor licensee.
1296 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1297 over consumption or intoxication.
1298 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain

1299 hours of the airport lounge liquor licensee's business day such as a "happy hour."
1300 (e) More than one alcoholic beverage may not be sold or served for the price of a single
1301 alcoholic beverage.
1302 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
1303 not be sold or served for a fixed price.
1304 (g) An airport lounge liquor licensee may not engage in a public promotion involving
1305 or offering free an alcoholic beverage to the general public.
1306 (12) An alcoholic beverage may not be purchased for a patron of an airport lounge by:
1307 (a) the airport lounge liquor licensee; or
1308 (b) an employee or agent of the airport lounge liquor licensee.
1309 (13) (a) A person may not bring onto the premises of an airport lounge liquor licensee
1310 an alcoholic beverage for on-premise consumption.
1311 (b) An airport lounge liquor licensee or an officer, manager, employee, or agent of the
1312 airport lounge liquor licensee may not allow a person to bring onto the airport lounge premises
1313 an alcoholic beverage for on-premise consumption or allow consumption of the alcoholic
1314 beverage on the airport lounge liquor licensee's premises.
1315 (14) An airport lounge liquor licensee and an employee of the airport lounge liquor
1316 licensee may not permit a patron to remove an alcoholic beverage from the airport lounge
1317 premises.
1318 (15) (a) An airport lounge liquor licensee may not employ a minor to sell or dispense
1319 an alcoholic beverage.
1320 (b) Notwithstanding Subsection (15)(a), a minor who is at least 16 years of age may be
1321 employed to enter the sale at a cash register or other sales recording device.
1322 (16) An employee of an airport lounge liquor licensee, while on duty, may not:
1323 (a) consume an alcoholic beverage; or
1324 (b) be intoxicated.
1325 (17) A charge or fee made in connection with the sale, service, or consumption of
1326 liquor may be stated in a food or alcoholic beverage menu including:
1327 (a) a set-up charge;
1328 (b) a service charge; or
1329 (c) a chilling fee.

1330 (18) An airport lounge liquor licensee shall display in a prominent place in the airport
1331 lounge:
1332 (a) the liquor license that is issued by the department;
1333 (b) a list of the types and brand names of liquor being served through its calibrated
1334 metered dispensing system; and
1335 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1336 drugs is a serious crime that is prosecuted aggressively in Utah."
1337 (19) (a) An airport lounge liquor licensee shall maintain an expense ledger or record
1338 showing in detail:
1339 (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
1340 other items required by the department; and
1341 (ii) sales made separately for malt or brewed beverages, food, and all other items
1342 required by the department.
1343 (b) An airport lounge liquor licensee shall keep a record required by Subsection
1344 (19)(a):
1345 (i) in a form approved by the department; and
1346 (ii) current for each three-month period.
1347 (c) An expenditure shall be supported by:
1348 (i) a delivery ticket;
1349 (ii) an invoice;
1350 (iii) a receipted bill;
1351 (iv) a canceled check;
1352 (v) a petty cash voucher; or
1353 (vi) other sustaining datum or memorandum.
1354 (d) In addition to a ledger or record required by Subsection (19)(a), an airport lounge
1355 liquor licensee shall maintain accounting and other records and documents as the department
1356 may require.
1357 (e) An airport lounge liquor licensee or person acting for the airport lounge, who
1358 knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of
1359 account or other document of the airport lounge required to be made, maintained, or preserved
1360 by this title or the rules of the commission for the purpose of deceiving the commission, the

1361 department, or an official or employee of the commission or department, is subject to:
1362 (i) the immediate suspension or revocation of the airport lounge's liquor license; and
1363 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1364 (20) An airport lounge liquor license may not be transferred from one location to
1365 another, without prior written approval of the commission.
1366 (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
1367 barter, give, or attempt in any way to dispose of the airport lounge liquor license to another
1368 person, whether for monetary gain or not.
1369 (b) An airport lounge liquor license has no monetary value for the purpose of any type
1370 of disposition.
1371 (22) A server of an alcoholic beverage in an airport lounge liquor licensee's
1372 establishment shall keep a written beverage tab for each table or group that orders or consumes
1373 an alcoholic beverage on the premises. The beverage tab shall list the type and amount of an
1374 alcoholic beverage ordered or consumed.
1375 (23) An airport lounge liquor licensee's premises may not be leased for a private
1376 function.
1377 (24) An airport lounge liquor licensee may not on the premises of the airport lounge
1378 liquor licensee:
1379 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1380 Chapter 10, Part 11, Gambling;
1381 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1382 Part 11, Gambling; or
1383 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1384 the risking of something of value for a return or for an outcome when the return or outcome is
1385 based upon an element of chance, excluding the playing of an amusement device that confers
1386 only an immediate and unrecorded right of replay not exchangeable for value.
1387 (25) An airport lounge liquor licensee or an employee of the airport lounge liquor
1388 licensee may not knowingly allow a person on the licensed premises to, in violation of Title 58,
1389 Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
1390 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
1391 58-37-2 ; or

1392 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
1393 Section 58-37a-3 .
1394 Section 8. Section 32A-4-307 is amended to read:
1395 32A-4-307. Operational restrictions.
1396 A person granted a limited restaurant license and the employees and management
1397 personnel of the limited restaurant shall comply with the following conditions and
1398 requirements. Failure to comply may result in a suspension or revocation of the license or
1399 other disciplinary action taken against individual employees or management personnel.
1400 (1) (a) [Wine] Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling Act,
1401 wine and heavy beer may not be purchased by a limited restaurant licensee except from a state
1402 store or package agency.
1403 (b) Wine and heavy beer purchased from a state store or package agency may be
1404 transported by the limited restaurant licensee from the place of purchase to the licensed
1405 premises.
1406 (c) Payment for wine and heavy beer shall be made in accordance with rules
1407 established by the commission.
1408 (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
1409 products listed in Subsection (2)(c) on the premises of the limited restaurant.
1410 (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
1411 restaurant except for use:
1412 (i) as a flavoring on a dessert; and
1413 (ii) in the preparation of a flaming food dish, drink, or dessert.
1414 (c) This Subsection (2) applies to:
1415 (i) spirituous liquor; and
1416 (ii) [on or after October 1, 2008,] a flavored malt beverage.
1417 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
1418 exceed five ounces per glass or individual portion.
1419 (ii) An individual portion may be served to a patron in more than one glass as long as
1420 the total amount of wine does not exceed five ounces.
1421 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1422 Subsection (7)(e).

1423 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1424 fixed by the commission to a table of four or more persons.
1425 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1426 fixed by the commission to a table of less than four persons.
1427 (c) A wine service may be performed and a service charge assessed by the limited
1428 restaurant licensee as authorized by commission rule for wine purchased at the limited
1429 restaurant.
1430 [(4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1431 price fixed by the commission.]
1432 (4) (a) A limited restaurant licensee may serve heavy beer:
1433 (i) at a price fixed by the commission; and
1434 (ii) (A) in an original container not exceeding one liter; or
1435 (B) subject to Subsection (4)(c):
1436 (I) in an open container; and
1437 (II) on draft.
1438 (b) A service charge may be assessed by the limited restaurant licensee as authorized
1439 by commission rule for heavy beer purchased at the limited restaurant.
1440 (c) A limited restaurant licensee shall sell heavy beer sold pursuant to Subsection
1441 (4)(a)(ii)(B) in a size of container that does not exceed two liters, except that heavy beer may
1442 not be sold to an individual patron in a size of container that exceeds one liter.
1443 (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
1444 on-premise consumption:
1445 (A) in an open container; and
1446 (B) on draft.
1447 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1448 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1449 container that exceeds one liter.
1450 (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
1451 (i) may do so without obtaining a separate on-premise beer retailer license from the
1452 commission; and
1453 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer

1454 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1455 inconsistent with or less restrictive than the operational restrictions under this part.
1456 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1457 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
1458 restaurant's:
1459 (i) limited restaurant license; and
1460 (ii) alcoholic beverage license issued by the local authority.
1461 (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
1462 as designated in the limited restaurant licensee's application, unless the limited restaurant
1463 licensee first applies for and receives approval from the department for a change of location
1464 within the limited restaurant.
1465 (7) (a) (i) A patron may only make an alcoholic beverage purchase in a limited
1466 restaurant from and be served by a person employed, designated, and trained by the limited
1467 restaurant licensee to sell and serve an alcoholic beverage.
1468 (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1469 employee of the limited restaurant licensee or carries bottled wine onto the premises of the
1470 limited restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
1471 patron or others at the patron's table.
1472 (b) An alcoholic beverage shall be delivered by a server to the patron.
1473 (c) An alcoholic beverage may only be consumed at the patron's table or counter.
1474 (d) An alcoholic beverage may not be served to or consumed by a patron at a bar.
1475 (e) A limited restaurant patron may have no more than two alcoholic beverages of any
1476 kind at a time before the patron.
1477 (8) The alcoholic beverage storage area shall remain locked at all times other than
1478 those hours and days when alcoholic beverage sales are authorized by law.
1479 (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
1480 furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
1481 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1482 Licenses, for on-premise beer licensees.
1483 (10) An alcoholic beverage may not be sold except in connection with an order of food
1484 prepared, sold, and served at the limited restaurant.

1485 (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
1486 (a) minor;
1487 (b) person actually, apparently, or obviously intoxicated;
1488 (c) known habitual drunkard; or
1489 (d) known interdicted person.
1490 (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
1491 (ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
1492 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1493 beverage to the limited restaurant licensee.
1494 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1495 over consumption or intoxication.
1496 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1497 hours of the limited restaurant licensee's business day such as a "happy hour."
1498 (e) More than one alcoholic beverage may not be sold or served for the price of a single
1499 alcoholic beverage.
1500 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
1501 not be sold or served for a fixed price.
1502 (g) A limited restaurant licensee may not engage in a public promotion involving or
1503 offering free alcoholic beverages to the general public.
1504 (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
1505 by:
1506 (a) the limited restaurant licensee; or
1507 (b) an employee or agent of the limited restaurant licensee.
1508 (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
1509 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1510 discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
1511 restaurant licensee for on-premise consumption.
1512 (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
1513 officer, manager, employee, or agent of a limited restaurant licensee may not allow:
1514 (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
1515 on-premise consumption; or

1516 (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
1517 limited restaurant licensee's premises.
1518 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1519 or other representative of the limited restaurant licensee upon entering the limited restaurant.
1520 (d) A wine service may be performed and a service charge assessed by the limited
1521 restaurant licensee as authorized by commission rule for wine carried in by a patron.
1522 (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
1523 employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
1524 limited restaurant premises an open container that:
1525 (i) is used primarily for drinking purposes; and
1526 (ii) contains an alcoholic beverage.
1527 (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
1528 contents of a bottle of wine if before removal, the bottle is recorked or recapped.
1529 (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
1530 alcoholic beverage.
1531 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1532 employed to enter the sale at a cash register or other sales recording device.
1533 (17) An employee of a limited restaurant licensee, while on duty, may not:
1534 (a) consume an alcoholic beverage; or
1535 (b) be intoxicated.
1536 (18) A charge or fee made in connection with the sale, service, or consumption of wine
1537 or heavy beer may be stated in food or alcoholic beverage menus including:
1538 (a) a service charge; or
1539 (b) a chilling fee.
1540 (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
1541 (a) the limited restaurant license that is issued by the department; and
1542 (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1543 drugs is a serious crime that is prosecuted aggressively in Utah."
1544 (20) A limited restaurant licensee may not on the premises of the restaurant:
1545 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1546 Chapter 10, Part 11, Gambling;

1547 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1548 Part 11, Gambling; or
1549 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1550 the risking of something of value for a return or for an outcome when the return or outcome is
1551 based upon an element of chance, excluding the playing of an amusement device that confers
1552 only an immediate and unrecorded right of replay not exchangeable for value.
1553 (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
1554 showing in detail:
1555 (i) quarterly expenditures made separately for:
1556 (A) wine;
1557 (B) heavy beer;
1558 (C) beer;
1559 (D) food; and
1560 (E) [all] other items required by the department; and
1561 (ii) sales made separately for:
1562 (A) wine;
1563 (B) heavy beer;
1564 (C) beer;
1565 (D) food; and
1566 (E) [all] other items required by the department.
1567 (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
1568 (i) in a form approved by the department; and
1569 (ii) current for each three-month period.
1570 (c) An expenditure shall be supported by:
1571 (i) a delivery ticket;
1572 (ii) an invoice;
1573 (iii) a receipted bill;
1574 (iv) a canceled check;
1575 (v) a petty cash voucher; or
1576 (vi) other sustaining datum or memorandum.
1577 (d) In addition to the ledger or record maintained under Subsections (21)(a) through

1578 (c), a limited restaurant licensee shall maintain accounting and other records and documents as
1579 the department may require.
1580 (e) [Any] A limited restaurant licensee or person acting for the restaurant, who
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