Download Zipped Introduced WordPerfect HB0347.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 347

             1     

ALCOHOLIC BEVERAGE CONTROL ACT

             2     
MODIFICATIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gregory H. Hughes

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definition provisions;
             14          .    provides for electronic verification of proof of age by social on-premise liquor
             15      licensees;
             16          .    addresses a bar structure in restaurants, including access by minors;
             17          .    creates a new social on-premise liquor license, which includes two types of classes,
             18      including:
             19              .    authorizing the commission to grant the license;
             20              .    providing application and renewal requirements;
             21              .    establishing qualifications;
             22              .    establishing the commission and department duties before granting a license;
             23              .    requiring a bond;
             24              .    imposing operational requirements; and
             25              .    providing a transition from private club licenses or restaurant liquor licenses to
             26      the new social on-premise liquor license;
             27          .    modifies the provisions related to a private club licensee, including:


             28              .    modifying the number and requirements for classes of licenses;
             29              .    changing renewal fees; and
             30              .    changing operational requirements;
             31          .    establishes requirements for renting or leasing a social on-premise liquor licensee
             32      premises or private club premises;
             33          .    expands licenses subject to protections for employees who exercise judgment; and
             34          .    makes technical and conforming amendments.
             35      Monies Appropriated in this Bill:
             36          None
             37      Other Special Clauses:
             38          This bill provides an effective date.
             39      Utah Code Sections Affected:
             40      AMENDS:
             41          11-10-1, as last amended by Laws of Utah 1990, Chapter 23
             42          26-38-2, as last amended by Laws of Utah 2006, Chapter 202
             43          26-38-3, as last amended by Laws of Utah 2007, Chapter 20
             44          32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
             45          32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
             46          32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
             47          32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
             48          32A-1-603, as last amended by Laws of Utah 2008, Chapter 382
             49          32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
             50          32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
             51          32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
             52          32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
             53          32A-5-104, as last amended by Laws of Utah 2008, Chapter 391
             54          32A-5-106, as renumbered and amended by Laws of Utah 1990, Chapter 23
             55          32A-5-107, as last amended by Laws of Utah 2008, Chapters 266 and 391
             56          32A-12-209.5, as last amended by Laws of Utah 2008, Chapter 3
             57          32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
             58          32A-12-222, as last amended by Laws of Utah 2008, Chapter 391


             59          32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
             60          32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
             61      ENACTS:
             62          32A-1-304.5, Utah Code Annotated 1953
             63          32A-4-501, Utah Code Annotated 1953
             64          32A-4-502, Utah Code Annotated 1953
             65          32A-4-503, Utah Code Annotated 1953
             66          32A-4-504, Utah Code Annotated 1953
             67          32A-4-505, Utah Code Annotated 1953
             68          32A-4-506, Utah Code Annotated 1953
             69          32A-4-507, Utah Code Annotated 1953
             70     
             71      Be it enacted by the Legislature of the state of Utah:
             72          Section 1. Section 11-10-1 is amended to read:
             73           11-10-1. Business license required -- Authorization for issuance, denial,
             74      suspension, or revocation by local authority.
             75          (1) As used in this chapter, ["club," "local authority," "restaurant," and "person"] the
             76      following have the meaning set forth in Section 32A-1-105 [.]:
             77          (a) "local authority";
             78          (b) "person";
             79          (c) "private club";
             80          (d) "restaurant"; and
             81          (e) "social on-premise liquor licensee."
             82          (2) A person may not operate an association, restaurant, private club, social on-premise
             83      liquor licensee, or similar business that allows customers, members, guests, [visitors,] or other
             84      persons to possess or consume alcoholic beverages on the private club, association, restaurant,
             85      social on-premise liquor license, or similar business premises without a business license.
             86          (3) Any local authority may issue a business license to any person who owns or
             87      operates an association, restaurant, private club, social on-premise liquor license, or similar
             88      business that allows the customers, members, guests, [visitors,] or other persons to hold, store,
             89      possess, or consume alcoholic beverages on the premises. This license does not permit any


             90      person to hold, store, possess, or consume alcoholic beverages on the premises other than as
             91      provided in Title 32A, [the] Alcoholic Beverage Control Act.
             92          (4) Any local authority may suspend or revoke a business license for a violation of
             93      Title 32A, [the] Alcoholic Beverage Control Act.
             94          (5) Each local authority shall set policy by written rules that establish criteria and
             95      procedures for granting, denying, suspending, or revoking licenses issued under this chapter.
             96          (6) A license issued under this section constitutes consent of the local authority within
             97      the meaning of Title 32A, [the] Alcoholic Beverage Control Act.
             98          Section 2. Section 26-38-2 is amended to read:
             99           26-38-2. Definitions.
             100          As used in this chapter:
             101          (1) "Place of public access" means any enclosed indoor place of business, commerce,
             102      banking, financial service, or other service-related activity, whether publicly or privately owned
             103      and whether operated for profit or not, to which persons not employed at the place of public
             104      access have general and regular access or which the public uses, including:
             105          (a) buildings, offices, shops, elevators, or restrooms;
             106          (b) means of transportation or common carrier waiting rooms;
             107          (c) restaurants, cafes, or cafeterias;
             108          (d) taverns as defined in Section 32A-1-105 , or cabarets;
             109          (e) shopping malls, retail stores, grocery stores, or arcades;
             110          (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
             111      sites, auditoriums, or arenas;
             112          (g) barber shops, hair salons, or laundromats;
             113          (h) sports or fitness facilities;
             114          (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
             115      breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
             116      hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
             117      of these;
             118          (j) (i) any child care facility or program subject to licensure or certification under this
             119      title, including those operated in private homes, when any child cared for under that license is
             120      present; and


             121          (ii) any child care, other than child care as defined in Section 26-39-102 , that is not
             122      subject to licensure or certification under this title, when any child cared for by the provider,
             123      other than the child of the provider, is present;
             124          (k) public or private elementary or secondary school buildings and educational
             125      facilities or the property on which those facilities are located;
             126          (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
             127      religious organization when used solely by the organization members or their guests or
             128      families;
             129          (m) any facility rented or leased for private functions from which the general public is
             130      excluded and arrangements for the function are under the control of the function sponsor;
             131          (n) any workplace that is not a place of public access or a publicly owned building or
             132      office but has one or more employees who are not owner-operators of the business; [and]
             133          (o) any area where the proprietor or manager of the area has posted a conspicuous sign
             134      stating "no smoking", "thank you for not smoking", or similar statement[.];
             135          (p) a social on-premise liquor licensee licensed under Title 32A, Chapter 4, Part 5,
             136      Social On-premise Liquor Licenses; and
             137          [(p) any] (q) a private club licensed under Title 32A, Chapter 5, Private Club [Liquor]
             138      Licenses.
             139          (2) "Publicly owned building or office" means any enclosed indoor place or portion of
             140      a place owned, leased, or rented by any state, county, or municipal government, or by any
             141      agency supported by appropriation of, or by contracts or grants from, funds derived from the
             142      collection of federal, state, county, or municipal taxes.
             143          (3) "Smoking" means the possession of any lighted tobacco product in any form.
             144          Section 3. Section 26-38-3 is amended to read:
             145           26-38-3. Restriction on smoking in public places and in specified places --
             146      Exceptions.
             147          (1) Except as provided in Subsection (2), smoking is prohibited in all enclosed indoor
             148      places of public access and publicly owned buildings and offices.
             149          (2) Subsection (1) does not apply to:
             150          (a) areas not commonly open to the public of owner-operated businesses having no
             151      employees other than the owner-operator;


             152          (b) guest rooms in hotels, motels, "bed and breakfast" lodging facilities, and other
             153      similar lodging facilities, but smoking is prohibited under Subsection (1) in the common areas
             154      of these facilities, including dining areas and lobby areas; and
             155          [(c) before January 1, 2009, taverns, as defined in Section 32A-1-105 , that are:]
             156          [(i) licensed on or before May 15, 2006; or]
             157          [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
             158      ownership;]
             159          [(d) before January 1, 2009, class D private clubs, as defined in Section 32A-5-101 ,
             160      that are:]
             161          [(i) licensed on or before May 15, 2006; or]
             162          [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
             163      ownership;]
             164          [(e) before January 1, 2009, class B private clubs, as defined in Section 32A-5-101
             165      that:]
             166          [(i) are licensed:]
             167          [(A) on or before May 15, 2006; or]
             168          [(B) on or before May 15, 2006 and after May 15, 2006 undergo a change in
             169      ownership; and]
             170          [(ii) do not permit an individual under the age of 21 in the class B private club, unless
             171      the individual is active military; and]
             172          [(f)] (c) separate enclosed smoking areas:
             173          (i) located in the passenger terminals of an international airport located in the city of
             174      the first class;
             175          (ii) vented directly to the outdoors; and
             176          (iii) certified, by a heating, ventilation, and air conditioning engineer licensed by the
             177      state, to prevent the drift of any smoke to any nonsmoking area of the terminal.
             178          Section 4. Section 32A-1-105 is amended to read:
             179           32A-1-105. Definitions.
             180          As used in this title:
             181          (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
             182      at retail, for consumption on its premises located at an international airport with a United States


             183      Customs office on the premises of the international airport.
             184          (2) "Alcoholic beverage" means the following as the term is defined in this section:
             185          (a) beer;
             186          (b) flavored malt beverage; and
             187          (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
             188          (3) (a) "Alcoholic product" means a product that:
             189          (i) contains at least .5% of alcohol by volume; and
             190          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             191      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             192      in an amount greater than the amount prescribed in Subsection (3)(a)(i).
             193          (b) "Alcoholic product" does not include any of the following common items that
             194      otherwise come within the definition of an alcoholic product:
             195          (i) except as provided in Subsection (3)(c), extract;
             196          (ii) vinegar;
             197          (iii) cider;
             198          (iv) essence;
             199          (v) tincture;
             200          (vi) food preparation; or
             201          (vii) an over-the-counter drug or medicine.
             202          (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
             203      product when it is used as a flavoring in the manufacturing of an alcoholic product.
             204          (4) "Bar" means a counter or similar structure:
             205          (a) at which an alcoholic beverage is:
             206          (i) stored; or
             207          (ii) dispensed; or
             208          (b) from which an alcoholic beverage is served.
             209          (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
             210          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             211      volume or 3.2% by weight; and
             212          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             213          (b) Beer may or may not contain hops or other vegetable products.


             214          (c) Beer includes a product that:
             215          (i) contains alcohol in the percentages described in Subsection (5)(a); and
             216          (ii) is referred to as:
             217          (A) beer;
             218          (B) ale;
             219          (C) porter;
             220          (D) stout;
             221          (E) lager; or
             222          (F) a malt or malted beverage.
             223          (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
             224      beverage.
             225          (6) (a) "Beer retailer" means a business that is:
             226          (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
             227      consumption on or off the business premises; and
             228          (ii) licensed to sell beer by:
             229          (A) the commission;
             230          (B) a local authority; or
             231          (C) both the commission and a local authority.
             232          (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
             233      beer to a patron for consumption off the beer retailer's premises.
             234          (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
             235          (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
             236      patron for consumption on the beer retailer's premises, regardless of whether the business sells
             237      beer for consumption off the beer retailer's premises.
             238          (7) "Billboard" means a public display used to advertise including:
             239          (a) a light device;
             240          (b) a painting;
             241          (c) a drawing;
             242          (d) a poster;
             243          (e) a sign;
             244          (f) a signboard; or


             245          (g) a scoreboard.
             246          (8) "Brewer" means a person engaged in manufacturing:
             247          (a) beer;
             248          (b) heavy beer; or
             249          (c) a flavored malt beverage.
             250          (9) "Cash bar" means the service of an alcoholic beverage:
             251          (a) at:
             252          (i) a banquet; or
             253          (ii) a temporary event for which a permit is issued under this title; and
             254          (b) if an attendee at the banquet or temporary event is charged for the alcoholic
             255      beverage.
             256          (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             257      a bus company to a group of persons pursuant to a common purpose:
             258          (a) under a single contract;
             259          (b) at a fixed charge in accordance with the bus company's tariff; and
             260          (c) for the purpose of giving the group of persons the exclusive use of the passenger
             261      bus, coach, or other motor vehicle and a driver to travel together to one or more specified
             262      destinations.
             263          (11) "Church" means a building:
             264          (a) set apart for the purpose of worship;
             265          (b) in which religious services are held;
             266          (c) with which clergy is associated; and
             267          (d) which is tax exempt under the laws of this state.
             268          [(12) "Club" and "private club" means any of the following organized primarily for the
             269      benefit of its members:]
             270          [(a) a social club;]
             271          [(b) a recreational association;]
             272          [(c) a fraternal association;]
             273          [(d) an athletic association; or]
             274          [(e) a kindred association.]
             275          [(13)] (12) "Commission" means the Alcoholic Beverage Control Commission.


             276          [(14)] (13) "Community location" means:
             277          (a) a public or private school;
             278          (b) a church;
             279          (c) a public library;
             280          (d) a public playground; or
             281          (e) a public park.
             282          [(15)] (14) "Community location governing authority" means:
             283          (a) the governing body of the community location; or
             284          (b) if the commission does not know who is the governing body of a community
             285      location, a person who appears to the commission to have been given on behalf of the
             286      community location authority to prohibit an activity at the community location.
             287          [(16)] (15) "Department" means the Department of Alcoholic Beverage Control.
             288          [(17)] (16) "Disciplinary proceeding" means an adjudicative proceeding permitted
             289      under this title:
             290          (a) against:
             291          (i) a permittee;
             292          (ii) a licensee;
             293          (iii) a manufacturer;
             294          (iv) a supplier;
             295          (v) an importer;
             296          (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
             297      or
             298          (vii) an officer, employee, or agent of:
             299          (A) a person listed in Subsections [(17)] (16)(a)(i) through (vi); or
             300          (B) a package agent; and
             301          (b) that is brought on the basis of a violation of this title.
             302          [(18)] (17) "Director," unless the context requires otherwise, means the director
             303      appointed under Section 32A-1-108 .
             304          [(19)] (18) "Distressed merchandise" means an alcoholic beverage in the possession of
             305      the department that is saleable, but for some reason is unappealing to the public.
             306          [(20)] (19) "Flavored malt beverage" means a beverage:


             307          (a) that contains at least .5% alcohol by volume;
             308          (b) that is treated by processing, filtration, or another method of manufacture that is not
             309      generally recognized as a traditional process in the production of a beer as described in 27
             310      C.F.R. Sec. 25.55;
             311          (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
             312      extract; and
             313          (d) (i) for which the producer is required to file a formula for approval with the United
             314      States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             315          (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             316          [(21)] (20) "Guest" means [a person accompanied by an active member or visitor of a
             317      club who enjoys only those privileges derived from the host for the duration of the visit to the
             318      club] a guest of a member of a private club that meets the requirements of Subsection
             319      32A-5-107 (5).
             320          [(22)] (21) (a) "Heavy beer" means a product that:
             321          (i) contains more than 4% alcohol by volume; and
             322          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             323          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             324          [(23)] (22) "Hosted bar" means the service of an alcoholic beverage:
             325          (a) without charge; and
             326          (b) at a:
             327          (i) banquet; or
             328          (ii) privately hosted event.
             329          [(24)] (23) "Identification card" means an identification card issued under Title 53,
             330      Chapter 3, Part 8, Identification Card Act.
             331          [(25)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
             332      an alcoholic beverage is prohibited by:
             333          (a) law; or
             334          (b) court order.
             335          [(26)] (25) "Intoxicated" means that to a degree that is unlawful under Section
             336      76-9-701 a person is under the influence of:
             337          (a) an alcoholic beverage;


             338          (b) a controlled substance;
             339          (c) a substance having the property of releasing toxic vapors; or
             340          (d) a combination of Subsections [(26)] (25)(a) through (c).
             341          [(27)] (26) "Licensee" means a person [issued] granted a license by the commission to
             342      sell, manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
             343      controlled by the person.
             344          [(28)] (27) "Limousine" means a motor vehicle licensed by the state or a local
             345      authority, other than a bus or taxicab:
             346          (a) in which the driver and a passenger are separated by a partition, glass, or other
             347      barrier; and
             348          (b) that is provided by a company to one or more individuals at a fixed charge in
             349      accordance with the company's tariff for the purpose of giving the one or more individuals the
             350      exclusive use of the limousine and a driver to travel to one or more specified destinations.
             351          [(29)] (28) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
             352      fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
             353      vinous, or fermented, or other drink, or drinkable liquid that:
             354          (A) contains at least .5% alcohol by volume; and
             355          (B) is suitable to use for beverage purposes.
             356          (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
             357          (b) "Liquor" does not include a beverage defined as a beer.
             358          [(30)] (29) "Local authority" means:
             359          (a) the governing body of the county if the premises are located in an unincorporated
             360      area of a county; or
             361          (b) the governing body of the city or town if the premises are located in an incorporated
             362      city or a town.
             363          [(31)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             364      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             365      others.
             366          [(32)] (31) "Member" means [a person] an individual who, after paying regular dues,
             367      has full privileges of a private club under this title.
             368          [(33)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,


             369      center, or homeport facility for a ship:
             370          (i) (A) under the control of the United States Department of Defense; or
             371          (B) of the National Guard;
             372          (ii) that is located within the state; and
             373          (iii) including a leased facility.
             374          (b) "Military installation" does not include a facility used primarily for:
             375          (i) civil works;
             376          (ii) a rivers and harbors project; or
             377          (iii) a flood control project.
             378          [(34)] (33) "Minor" means an individual under the age of 21 years.
             379          [(35)] (34) "Nude," "nudity," or "state of nudity" means:
             380          (a) the appearance of:
             381          (i) the nipple or areola of a female human breast;
             382          (ii) a human genital;
             383          (iii) a human pubic area; or
             384          (iv) a human anus; or
             385          (b) a state of dress that fails to opaquely cover:
             386          (i) the nipple or areola of a female human breast;
             387          (ii) a human genital;
             388          (iii) a human pubic area; or
             389          (iv) a human anus.
             390          [(36)] (35) "Outlet" means a location other than a state store or package agency where
             391      an alcoholic beverage is sold pursuant to a license [issued] granted by the commission.
             392          [(37)] (36) "Package" means any of the following containing liquor:
             393          (a) a container;
             394          (b) a bottle;
             395          (c) a vessel; or
             396          (d) other receptacle.
             397          [(38)] (37) "Package agency" means a retail liquor location operated:
             398          (a) under a contractual agreement with the department; and
             399          (b) by a person:


             400          (i) other than the state; and
             401          (ii) who is authorized by the commission to sell package liquor for consumption off the
             402      premises of the package agency.
             403          [(39)] (38) "Package agent" means a person permitted by the commission to operate a
             404      package agency pursuant to a contractual agreement with the department to sell liquor from
             405      premises that the package agent shall provide and maintain.
             406          [(40)] (39) "Permittee" means a person issued a permit by the commission to perform
             407      an act or exercise a privilege as specifically granted in the permit.
             408          [(41)] (40) "Person" means an individual, partnership, firm, corporation, limited
             409      liability company, association, business trust, or other form of business enterprise, including a
             410      receiver or trustee, and the plural as well as the singular number, unless the intent to give a
             411      more limited meaning is disclosed by the context.
             412          [(42)] (41) "Premises" means a building, enclosure, room, or equipment used in
             413      connection with the sale, storage, service, manufacture, distribution, or consumption of an
             414      alcoholic product, unless otherwise defined in this title or in the rules adopted by the
             415      commission.
             416          [(43)] (42) "Prescription" means a writing in legal form, signed by a physician or
             417      dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             418          (43) "Private club" is as defined in Section 32A-5-101 .
             419          (44) (a) "Privately hosted event" or "private social function" means a specific social,
             420      business, or recreational event:
             421          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             422      group; and
             423          (ii) that is limited in attendance to people who are specifically designated and their
             424      guests.
             425          (b) "Privately hosted event" and "private social function" does not include an event to
             426      which the general public is invited, whether for an admission fee or not.
             427          (45) (a) "Proof of age" means:
             428          (i) an identification card;
             429          (ii) an identification that:
             430          (A) is substantially similar to an identification card;


             431          (B) is issued in accordance with the laws of a state other than Utah in which the
             432      identification is issued;
             433          (C) includes date of birth; and
             434          (D) has a picture affixed;
             435          (iii) a valid driver license certificate that:
             436          (A) includes date of birth;
             437          (B) has a picture affixed; and
             438          (C) is issued:
             439          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             440          (II) in accordance with the laws of the state in which it is issued;
             441          (iv) a military identification card that:
             442          (A) includes date of birth; and
             443          (B) has a picture affixed; or
             444          (v) a valid passport.
             445          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             446      Section 53-3-207 .
             447          (46) (a) "Public building" means a building or permanent structure owned or leased by
             448      the state, a county, or local government entity that is used for:
             449          (i) public education;
             450          (ii) transacting public business; or
             451          (iii) regularly conducting government activities.
             452          (b) "Public building" does not mean or refer to a building owned by the state or a
             453      county or local government entity when the building is used by a person, in whole or in part,
             454      for a proprietary function.
             455          (47) "Representative" means an individual who is compensated by salary, commission,
             456      or other means for representing and selling an alcoholic beverage product of a manufacturer,
             457      supplier, or importer of liquor including:
             458          (a) wine;
             459          (b) heavy beer; or
             460          (c) [on or after October 1, 2008,] a flavored malt beverage.
             461          (48) "Residence" means a person's principal place of abode within Utah.


             462          (49) "Restaurant" means a business establishment:
             463          (a) where a variety of foods [is] are prepared and complete meals are served to the
             464      general public;
             465          (b) located on a premises having adequate culinary fixtures for food preparation and
             466      dining accommodations; and
             467          (c) that is engaged primarily in serving meals to the general public.
             468          (50) "Retailer" means a person engaged in the sale or distribution of an alcoholic
             469      beverage to a consumer.
             470          (51) (a) "Sample" includes:
             471          (i) a department sample; and
             472          (ii) an industry representative sample.
             473          (b) "Department sample" means liquor that is placed in the possession of the
             474      department for testing, analysis, and sampling including:
             475          (i) wine;
             476          (ii) heavy beer; or
             477          (iii) [on or after October 1, 2008,] a flavored malt beverage.
             478          (c) "Industry representative sample" means liquor that is placed in the possession of the
             479      department:
             480          (i) for testing, analysis, and sampling by a local industry representative on the premises
             481      of the department to educate the local industry representative of the quality and characteristics
             482      of the product; and
             483          (ii) including:
             484          (A) wine;
             485          (B) heavy beer; or
             486          (C) [on or after October 1, 2008,] a flavored malt beverage.
             487          (52) (a) "School" means a building used primarily for the general education of minors.
             488          (b) "School" does not include:
             489          (i) a nursery school;
             490          (ii) an infant day care center; or
             491          (iii) a trade or technical school.
             492          (53) "Sell," "sale," and "to sell" means a transaction, exchange, or barter whereby, for


             493      consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
             494      ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
             495      done by a person as a principal, proprietor, or as an agent, servant, or employee, unless
             496      otherwise defined in this title or the rules made by the commission.
             497          (54) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
             498      which opaque clothing covers no more than:
             499          (a) the nipple and areola of the female human breast in a shape and color other than the
             500      natural shape and color of the nipple and areola; and
             501          (b) the human genitals, pubic area, and anus:
             502          (i) with no less than the following at its widest point:
             503          (A) four inches coverage width in the front of the human body; and
             504          (B) five inches coverage width in the back of the human body; and
             505          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             506          (55) "Sexually oriented entertainer" means a person who while in a state of seminudity
             507      appears at or performs:
             508          (a) for the entertainment of one or more patrons;
             509          (b) on the premises of:
             510          (i) a class [D private club] 2 social on-premise liquor license as defined in [Subsection
             511      32A-5-101 (3)] Section 32A-4-501 ; or
             512          (ii) a tavern;
             513          (c) on behalf of or at the request of the licensee described in Subsection (55)(b);
             514          (d) on a contractual or voluntary basis; and
             515          (e) whether or not the person is designated:
             516          (i) an employee of the licensee described in Subsection (55)(b);
             517          (ii) an independent contractor of the licensee described in Subsection (55)(b);
             518          (iii) an agent of the licensee described in Subsection (55)(b); or
             519          (iv) otherwise of the licensee described in Subsection (55)(b).
             520          (56) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
             521      beer, heavy beer, and flavored malt beverages per year.
             522          (57) "Social on-premise liquor licensee" means a person licensed under Chapter 4, Part
             523      5, Social On-premise Liquor Licenses.


             524          [(57)] (58) (a) "Spirituous liquor" means liquor that is distilled.
             525          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             526      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             527          [(58)] (59) (a) "State label" means the official label designated by the commission
             528      affixed to a liquor container sold in the state.
             529          (b) "State label" includes the department identification mark and inventory control
             530      number.
             531          [(59)] (60) (a) "State store" means a facility for the sale of package liquor:
             532          (i) located on premises owned or leased by the state; and
             533          (ii) operated by a state employee.
             534          (b) "State store" does not apply to a:
             535          (i) licensee;
             536          (ii) permittee; or
             537          (iii) package agency.
             538          [(60)] (61) "Supplier" means a person selling an alcoholic beverage to the department.
             539          [(61)] (62) (a) "Tavern" means a business establishment that is:
             540          (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
             541      establishment's premises; and
             542          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             543          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             544      revenue of the sale of food, although food need not be sold in the establishment:
             545          (i) a beer bar;
             546          (ii) a parlor;
             547          (iii) a lounge;
             548          (iv) a cabaret; or
             549          (v) a nightclub.
             550          [(62)] (63) "Temporary domicile" means the principal place of abode within Utah of a
             551      person who does not have a present intention to continue residency within Utah permanently or
             552      indefinitely.
             553          [(63)] (64) "Unsaleable liquor merchandise" means merchandise that:
             554          (a) is unsaleable because the merchandise is:


             555          (i) unlabeled;
             556          (ii) leaky;
             557          (iii) damaged;
             558          (iv) difficult to open; or
             559          (v) partly filled;
             560          (b) is in a container:
             561          (i) having faded labels or defective caps or corks;
             562          (ii) in which the contents are:
             563          (A) cloudy;
             564          (B) spoiled; or
             565          (C) chemically determined to be impure; or
             566          (iii) that contains:
             567          (A) sediment; or
             568          (B) a foreign substance; or
             569          (c) is otherwise considered by the department as unfit for sale.
             570          [(64) "Visitor" means an individual that in accordance with Section 32A-5-107 holds
             571      limited privileges in a private club by virtue of a visitor card.]
             572          (65) "Warehouser" means a person, other than a licensed manufacturer, engaged in the
             573      importation for sale, storage, or distribution of liquor regardless of amount.
             574          (66) (a) "Wholesaler" means a person engaged in the importation for sale, or in the sale
             575      of beer in wholesale or jobbing quantities to one or more retailers.
             576          (b) Notwithstanding Subsection (66)(a), "wholesaler" does not include a small brewer
             577      selling beer manufactured by that brewer.
             578          (67) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
             579      natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
             580      another ingredient is added.
             581          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
             582      provided in this title.
             583          Section 5. Section 32A-1-107 is amended to read:
             584           32A-1-107. Powers and duties of the commission.
             585          (1) The commission shall:


             586          (a) act as a general policymaking body on the subject of alcoholic product control;
             587          (b) adopt and issue policies, directives, rules, and procedures;
             588          (c) set policy by written rules that establish criteria and procedures for:
             589          (i) granting, denying, suspending, or revoking [permits, licenses, certificates of
             590      approval, and package agencies] a permit, license, certificate of approval, or package agency;
             591          (ii) controlling liquor merchandise inventory including:
             592          (A) listing and delisting [products] a product;
             593          (B) the procedures for testing a new [products] product;
             594          (C) purchasing policy;
             595          (D) turnover requirements for regularly coded products to be continued; and
             596          (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
             597          (iii) determining the location of [state stores, package agencies, and outlets] a state
             598      store, package agency, or outlet;
             599          (d) decide within the limits and under the conditions imposed by this title, the number
             600      and location of state stores, package agencies, and outlets established in the state;
             601          (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
             602      certificates of approval, and package agencies for the purchase, sale, storage, service,
             603      manufacture, distribution, and consumption of an alcoholic [products] product:
             604          (i) a package [agencies] agency;
             605          (ii) a restaurant [licenses] liquor license;
             606          (iii) an airport lounge [licenses] license;
             607          (iv) a limited restaurant [licenses] license;
             608          (v) an on-premise banquet [licenses] license;
             609          (vi) a social on-premise liquor license;
             610          [(vi)] (vii) a private club [licenses] license;
             611          [(vii)] (viii) an on-premise beer retailer [licenses] license;
             612          [(viii)] (ix) a temporary special event beer [permits] permit;
             613          [(ix)] (x) a special use [permits] permit;
             614          [(x)] (xi) a single event [permits] permit;
             615          [(xi)] (xii) a manufacturing [licenses] license;
             616          [(xii)] (xiii) a liquor warehousing [licenses] license;


             617          [(xiii)] (xiv) a beer wholesaling [licenses] license; and
             618          [(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
             619          (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
             620      package agencies, and outlets;
             621          (g) issue and distribute price lists showing the price to be paid by [purchasers] a
             622      purchaser for each class, variety, or brand of liquor kept for sale by the department;
             623          (h) (i) require the director to follow sound management principles; and
             624          (ii) require periodic reporting from the director to ensure that:
             625          (A) sound management principles are being followed; and
             626          (B) policies established by the commission are being observed;
             627          (i) (i) receive, consider, and act in a timely manner upon [all] reports,
             628      recommendations, and matters submitted by the director to the commission; and
             629          (ii) do [all] the things necessary to support the department in properly performing the
             630      department's duties and responsibilities;
             631          (j) obtain temporarily and for special purposes the services of [experts and persons] an
             632      expert or a person engaged in the practice of a profession or who possess any needed skills,
             633      talents, or abilities if:
             634          (i) considered expedient; and
             635          (ii) approved by the governor;
             636          (k) prescribe the duties of a departmental [officials] official authorized to assist the
             637      commission in issuing [permits, licenses, certificates of approval, and package agencies] a
             638      permit, license, certificate of approval, or package agency under this title;
             639          (l) prescribe, consistent with this title, the fees payable for:
             640          (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
             641      certificate of approval, or package agency issued under this title; or
             642          (ii) anything done or permitted to be done under this title;
             643          (m) prescribe the conduct, management, and equipment of any premises upon which an
             644      alcoholic [beverages] beverage may be sold, consumed, served, or stored;
             645          (n) make rules governing the credit terms of beer sales to retailers within the state;
             646          (o) require that each of the following, where required in this title, display in a
             647      prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol


             648      or drugs is a serious crime that is prosecuted aggressively in Utah.":
             649          (i) a state store;
             650          (ii) a permittee;
             651          (iii) a licensee; and
             652          (iv) a package agency; and
             653          (p) subject to Subsection (4) and as provided in this title, impose fines against:
             654          (i) a permittee, licensee, certificate holder, or package agent described in Subsection
             655      (1)(e); or
             656          (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
             657      package agent described in Subsection (1)(p)(i).
             658          (2) The power of the commission to do the following is plenary, except as otherwise
             659      provided by this title, and not subject to review:
             660          (a) establish a state [stores] store;
             661          (b) create a package [agencies] agency;
             662          (c) grant authority to operate a package [agencies] agency; and
             663          (d) grant or deny [permits, licenses, and certificates of approval] a permit, license, or
             664      certificate of approval.
             665          (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
             666      [any] a suspension or revocation [hearings] hearing required by law.
             667          (4) (a) In [any] a case [where] when the commission is given the power to suspend
             668      [any] a permit, license, certificate of approval, or package agency, the commission may impose
             669      a fine in addition to or in lieu of suspension.
             670          (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
             671          (i) [any] a single Notice of Agency Action; or
             672          (ii) a single action against a package agency.
             673          (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
             674      for each violation.
             675          Section 6. Section 32A-1-119 is amended to read:
             676           32A-1-119. Disciplinary proceedings -- Procedure.
             677          (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
             678      final unappealable judgment or order is issued.


             679          (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
             680      proceeding to inquire into a matter necessary and proper for the administration of this title and
             681      rules adopted under this title:
             682          (i) the commission;
             683          (ii) a hearing examiner appointed by the commission for the purposes provided in
             684      Subsection 32A-1-107 (3);
             685          (iii) the director; and
             686          (iv) the department.
             687          (b) Except as provided in this section or Section 32A-3-106 , the following shall
             688      comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
             689      Procedures Act, in an adjudicative proceeding:
             690          (i) the commission;
             691          (ii) a hearing examiner appointed by the commission;
             692          (iii) the director; and
             693          (iv) the department.
             694          (c) Except where otherwise provided by law, an adjudicative proceeding before the
             695      commission or a hearing examiner appointed by the commission shall be:
             696          (i) video or audio recorded; and
             697          (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
             698      Open and Public Meetings Act.
             699          (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
             700      concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
             701      Personnel Management Act.
             702          (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
             703      conducted in accordance with rules, policies, and procedures made by the commission,
             704      director, or department.
             705          (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
             706      under the authority of the commission, which is responsible for rendering a final decision and
             707      order on a disciplinary matter.
             708          (b) (i) Nothing in this section precludes the commission from appointing a necessary
             709      officer, including a hearing examiner, from within or without the department, to administer the


             710      disciplinary proceeding process.
             711          (ii) A hearing examiner appointed by the commission:
             712          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             713          (B) shall submit to the commission a report including:
             714          (I) findings of fact determined on the basis of a preponderance of the evidence
             715      presented at the hearing;
             716          (II) conclusions of law; and
             717          (III) recommendations.
             718          (c) Nothing in this section precludes the commission, after the commission renders its
             719      final decision and order, from having the director prepare, issue, and cause to be served on the
             720      parties the final written order on behalf of the commission.
             721          (4) Subject to Section 32A-1-119.5 :
             722          (a) The department may initiate a disciplinary proceeding described in Subsection
             723      (4)(b) if the department receives:
             724          (i) a report from a government agency, peace officer, examiner, or investigator alleging
             725      that a person listed in Subsections 32A-1-105 [(17)](16)(a)(i) through (vii) violated this title or
             726      the rules of the commission;
             727          (ii) a final adjudication of criminal liability against a person listed in Subsections
             728      32A-1-105 [(17)](16)(a)(i) through (vii) based on an alleged violation of this title; or
             729          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             730      Liability, against a person listed in Subsections 32A-1-105 [(17)](16)(a)(i) through (vii) based
             731      on an alleged violation of this title.
             732          (b) The department may initiate a disciplinary proceeding if the department receives an
             733      item listed in Subsection (4)(a) to determine:
             734          (i) whether a person listed in Subsections 32A-1-105 [(17)](16)(a)(i) through (vii)
             735      violated this title or rules of the commission; and
             736          (ii) if a violation is found, the appropriate sanction to be imposed.
             737          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             738          (i) if required by law;
             739          (ii) before revoking or suspending a permit, license, or certificate of approval issued
             740      under this title; or


             741          (iii) before imposing a fine against a person listed in Subsections
             742      32A-1-105 [(17)](16)(a)(i) through (vii).
             743          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
             744      hearing after receiving proper notice is an admission of the charged violation.
             745          (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
             746      attend or remain in attendance.
             747          (d) The commission or an appointed hearing examiner shall preside over a disciplinary
             748      proceeding hearing.
             749          (e) A disciplinary proceeding hearing may be closed only after the commission or
             750      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             751      outweighed by factors enumerated in the closure order.
             752          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             753      hearing may:
             754          (A) administer oaths or affirmations;
             755          (B) take evidence;
             756          (C) take a deposition within or without this state; and
             757          (D) require by subpoena from a place within this state:
             758          (I) the testimony of a person at a hearing; and
             759          (II) the production of a book, record, paper, contract, agreement, document, or other
             760      evidence considered relevant to the inquiry.
             761          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             762      produce a book, paper, document, or tangible thing as required in the subpoena.
             763          (iii) A witness subpoenaed or called to testify or produce evidence who claims a
             764      privilege against self-incrimination may not be compelled to testify, but the commission or the
             765      hearing examiner shall file a written report with the county attorney or district attorney in the
             766      jurisdiction where the privilege is claimed or where the witness resides setting forth the
             767      circumstance of the claimed privilege.
             768          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             769          (B) A district court within the judicial district in which a person alleged to be guilty of
             770      willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
             771      the party issuing the subpoena, may issue an order requiring the person to:


             772          (I) appear before the issuing party; and
             773          (II) (Aa) produce documentary evidence if so ordered; or
             774          (Bb) give evidence regarding the matter in question.
             775          (C) Failure to obey an order of the court may be punished by the court as contempt.
             776          (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
             777      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             778          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             779      recommend a penalty more severe than that initially sought by the department in the notice of
             780      agency action.
             781          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             782      shall be served upon the respective parties.
             783          (iv) The respondent and the department shall be given reasonable opportunity to file a
             784      written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             785      before final commission action.
             786          (h) In a case heard by the commission, it shall issue its final decision and order in
             787      accordance with Subsection (3).
             788          (6) (a) The commission shall:
             789          (i) render a final decision and order on a disciplinary action; and
             790          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
             791          (b) An order of the commission is considered final on the date the order becomes
             792      effective.
             793          (c) If the commission is satisfied that a person listed in Subsections
             794      32A-1-105 [(17)](16)(a)(i) through (vii) violated this title or the commission's rules, in
             795      accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
             796          (i) suspend or revoke the permit, license, or certificate of approval;
             797          (ii) impose a fine against a person listed in Subsections 32A-1-105 [(17)](16)(a)(i)
             798      through (vii);
             799          (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
             800      licensee, or certificate holder; or
             801          (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
             802          (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections


             803      32A-1-107 (1)(p) and (4).
             804          (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
             805      licensee shall prominently post a sign provided by the department:
             806          (A) during the suspension; and
             807          (B) at the entrance of the premises of the permittee or licensee.
             808          (ii) The sign required by this Subsection (6)(e) shall:
             809          (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
             810      alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
             811      sold, served, furnished, or consumed on these premises during the period of suspension."; and
             812          (B) include the dates of the suspension period.
             813          (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
             814      to be posted under this Subsection (6)(e) during the suspension period.
             815          (f) If a permit or license is revoked, the commission may order the revocation of a
             816      compliance bond posted by the permittee or licensee.
             817          (g) A permittee or licensee whose permit or license is revoked may not reapply for a
             818      permit or license under this title for three years from the date on which the permit or license is
             819      revoked.
             820          (h) The commission shall transfer all costs assessed into the General Fund in
             821      accordance with Section 32A-1-113 .
             822          (7) Subject to Section 32A-1-119.5 :
             823          (a) In addition to an action taken against a permittee, licensee, or certificate holder
             824      under this section, the department may initiate disciplinary action against an officer, employee,
             825      or agent of a permittee, licensee, or certificate holder.
             826          (b) If an officer, employee, or agent is found to have violated this title, the commission
             827      may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
             828      wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
             829      officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
             830      period determined by the commission.
             831          (8) Subject to Section 32A-1-119.5 :
             832          (a) The department may initiate a disciplinary proceeding for an alleged violation of
             833      this title or the rules of the commission against:


             834          (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
             835          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             836      (8)(a)(i).
             837          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             838      commission may, in addition to other penalties prescribed by this title, order:
             839          (A) the removal of the manufacturer's, supplier's, or importer's one or more products
             840      from the department's sales list; and
             841          (B) a suspension of the department's purchase of the one or more products described in
             842      Subsection (8)(b)(i)(A) for a period determined by the commission.
             843          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             844          (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
             845      beverage, or its officer, employee, agent, or representative violates this title; and
             846          (B) the manufacturer, supplier, or importer:
             847          (I) directly commits the violation; or
             848          (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
             849      the violation.
             850          (9) Subject to Section 32A-1-119.5 :
             851          (a) The department may initiate a disciplinary proceeding against a brewer holding a
             852      certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
             853      of the commission.
             854          (b) If the commission makes a finding that the brewer holding a certificate of approval
             855      violates this title or rules of the commission, the commission may take an action against the
             856      brewer holding a certificate of approval that the commission could take against a licensee
             857      including:
             858          (i) suspension or revocation of the certificate of approval; and
             859          (ii) imposition of a fine.
             860          (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
             861      the commission or a hearing examiner appointed by the commission shall proceed formally in
             862      accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
             863          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             864      and welfare;


             865          (ii) the alleged violation involves:
             866          (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
             867          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
             868      Entertainment Act;
             869          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             870      of the respondent;
             871          (D) interfering or refusing to cooperate with:
             872          (I) an authorized official of the department or the state in the discharge of the official's
             873      duties in relation to the enforcement of this title; or
             874          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             875      enforcement of this title;
             876          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             877          (F) unlawful importation of an alcoholic product; or
             878          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             879      32A-12-601 (2), to a person other than the department or a military installation, except to the
             880      extent permitted by this title; or
             881          (iii) the department determines to seek in a disciplinary proceeding hearing:
             882          (A) an administrative fine exceeding $3,000;
             883          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             884      or
             885          (C) a revocation of a license, permit, or certificate of approval.
             886          (b) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
             887      Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
             888          Section 7. Section 32A-1-119.5 is amended to read:
             889           32A-1-119.5. Timing of reporting violations.
             890          (1) As used in this section:
             891          (a) "Department compliance officer" means an individual who is:
             892          (i) an auditor or inspector; and
             893          (ii) employed by the department.
             894          (b) "Nondepartment enforcement agency" means an agency that:
             895          (i) (A) is a state agency other than the department; or


             896          (B) is an agency of a county, city, or town; and
             897          (ii) has a responsibility, as provided in another provision of this title, to enforce one or
             898      more provisions of this title.
             899          (c) "Nondepartment enforcement officer" means an individual who is:
             900          (i) a peace officer, examiner, or investigator; and
             901          (ii) employed by an agency described in Subsection (1)(b).
             902          (2) A disciplinary proceeding may not be initiated or maintained by the commission or
             903      department on the basis, in whole or in part, of a violation of this title unless a person listed in
             904      Subsections 32A-1-105 [(15)](16)(a)(i) through (vi) against whom the violation is alleged is
             905      notified by the department of the violation in accordance with this section.
             906          (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer
             907      may not report a violation of this title to the department more than eight business days after the
             908      day on which a nondepartment enforcement officer or agency completes an investigation that
             909      finds a violation of this title.
             910          (b) If the commission or department wants the right to initiate or maintain a
             911      disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
             912      report described in Subsection (3)(a), the department shall notify a person listed in Subsections
             913      32A-1-105 [(15)](16)(a)(i) through (vi) alleged by the report to have violated this title:
             914          (i) by no later than eight business days of the day on which the department receives the
             915      report described in Subsection (3)(a); and
             916          (ii) that the commission or department may initiate or maintain a disciplinary
             917      proceeding on the basis, in whole or in part, of the violation.
             918          (4) If the commission or department wants the right to initiate or maintain a
             919      disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
             920      report of a department compliance officer, the department shall notify a person listed in
             921      Subsections 32A-1-105 [(17)](16)(a)(i) through (vi) alleged by the report to have violated this
             922      title:
             923          (a) by no later than eight business days of the day on which the department compliance
             924      officer completes an investigation that finds a violation of this title; and
             925          (b) that the commission or department may initiate or maintain a disciplinary
             926      proceeding on the basis, in whole or in part, of the violation.


             927          (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
             928      a person listed in Subsection 32A-1-105 [(17)](16)(a)(vii).
             929          (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
             930      the oral notification the department provides written notification.
             931          (b) The written notification described in Subsection (6)(a) may be sent outside the time
             932      periods required by this section.
             933          (7) The department shall maintain a record of a notification required by Subsection (2),
             934      (3)(b), or (4) that includes:
             935          (a) the name of the person notified; and
             936          (b) the date of the notification.
             937          Section 8. Section 32A-1-304.5 is enacted to read:
             938          32A-1-304.5. Verification of proof of age by a social on-premise liquor licensee.
             939          (1) Notwithstanding any other provision of this part, a social on-premise liquor
             940      licensee shall require that a person authorized to sell or otherwise handle an alcoholic beverage
             941      or alcoholic product under the social on-premise liquor license verify proof of age as provided
             942      in this section.
             943          (2) A person described in Subsection (1) is required to verify proof of age under this
             944      section before an individual who appears to be 30 years of age or younger:
             945          (a) gains admittance to the class 2 social on-premise liquor licensee's premises if the
             946      social on-premise liquor licensee is a class 2 social on-premise liquor licensee; or
             947          (b) procures an alcoholic beverage or alcoholic product if the social on-premise liquor
             948      licensee is a class 1 social on-premise liquor licensee.
             949          (3) To comply with Subsection (2), a person shall:
             950          (a) request the individual present proof of age; and
             951          (b) (i) verify the validity of the proof of age electronically under the verification
             952      program created in Subsection (4); or
             953          (ii) if the proof of age cannot be electronically verified as provided in Subsection
             954      (3)(b)(i), request that the individual comply with a process established by the commission by
             955      rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             956          (4) The commission shall establish by rule made in accordance with Title 63G, Chapter
             957      3, Utah Administrative Rulemaking Act, an electronic verification program that includes the


             958      following:
             959          (a) the specifications for the technology used by the social on-premise liquor licensee
             960      to electronically verify proof of age, including that the technology display to the person
             961      described in Subsection (1) no more than the following for the individual who presents the
             962      proof of age:
             963          (i) the name;
             964          (ii) the age;
             965          (iii) the number assigned to the individual's proof of age by the issuing authority;
             966          (iv) the birth date;
             967          (v) the gender; and
             968          (vi) the status and expiration date of the individual's proof of age; and
             969          (b) the security measures that must be used by a social on-premise liquor licensee to
             970      ensure that information obtained under this section is:
             971          (i) used by the social on-premise liquor licensee only for purposes of verifying proof
             972      of age in accordance with this section; and
             973          (ii) retained by the social on-premise liquor licensee for no more than 48 hours from
             974      close of business of the day on which the social on-premise liquor licensee obtains the
             975      information.
             976          (5) A social on-premise liquor licensee may not disclose information obtained under
             977      this section except as provided under this title.
             978          Section 9. Section 32A-1-603 is amended to read:
             979           32A-1-603. Sexually oriented entertainer.
             980          (1) Subject to the restrictions of this section, live entertainment is permitted on a
             981      premises or at an event regulated by the commission.
             982          (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
             983          (a) appear or perform in a state of nudity;
             984          (b) perform or simulate an act of:
             985          (i) sexual intercourse;
             986          (ii) masturbation;
             987          (iii) sodomy;
             988          (iv) bestiality;


             989          (v) oral copulation;
             990          (vi) flagellation; or
             991          (vii) a sexual act that is prohibited by Utah law; or
             992          (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
             993          (3) A sexually oriented entertainer may perform in a state of seminudity:
             994          (a) only in:
             995          (i) a tavern; or [class D private club; and]
             996          (ii) a class 2 social on-premise liquor licensee's premises; and
             997          (b) only if:
             998          (i) all windows, doors, and other apertures to the premises are darkened or otherwise
             999      constructed to prevent anyone outside the premises from seeing the performance; and
             1000          (ii) the outside entrance doors of the premises remain unlocked.
             1001          (4) A sexually oriented entertainer may perform only upon a stage or in a designated
             1002      performance area that is:
             1003          (a) approved by the commission in accordance with rules made by the commission in
             1004      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1005          (b) configured so as to preclude a patron from:
             1006          (i) touching the sexually oriented entertainer; or
             1007          (ii) placing any money or object on or within the costume or the person of the sexually
             1008      oriented entertainer; and
             1009          (c) configured so as to preclude the sexually oriented entertainer from touching a
             1010      patron.
             1011          (5) A sexually oriented entertainer may not touch a patron:
             1012          (a) during the sexually oriented entertainer's performance; or
             1013          (b) while the sexually oriented entertainer is dressed in performance attire or costume.
             1014          (6) A sexually oriented entertainer, while in the portion of the premises used by
             1015      patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
             1016      entertainer's performance attire or costume from the top of the breast to the knee.
             1017          (7) A patron may not be on the stage or in the performance area while a sexually
             1018      oriented entertainer is appearing or performing on the stage or in the performance area.
             1019          (8) A patron may not:


             1020          (a) touch a sexually oriented entertainer:
             1021          (i) during the sexually oriented entertainer's performance; or
             1022          (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
             1023      or
             1024          (b) place money or any other object on or within the costume or the person of the
             1025      sexually oriented entertainer.
             1026          (9) A minor may not be on a premises described in Subsection (3) [when a sexually
             1027      oriented entertainer is performing on the premises].
             1028          (10) A person who appears or performs for the entertainment of patrons on a premises
             1029      or at an event regulated by the commission that is not a tavern or class [D private club] 2 social
             1030      on-premise liquor license:
             1031          (a) may not appear or perform in a state of nudity or a state of seminudity; and
             1032          (b) may appear or perform in opaque clothing that completely covers the person's
             1033      genitals, pubic area, and anus if the covering:
             1034          (i) is not less than the following at its widest point:
             1035          (A) four inches coverage width in the front of the human body; and
             1036          (B) five inches coverage width in the back of the human body;
             1037          (ii) does not taper to less than one inch wide at the narrowest point; and
             1038          (iii) if covering a female, completely covers the breast below the top of the areola.
             1039          Section 10. Section 32A-4-106 is amended to read:
             1040           32A-4-106. Operational restrictions.
             1041          A person granted a restaurant liquor license and the employees and management
             1042      personnel of the restaurant shall comply with the following conditions and requirements.
             1043      Failure to comply may result in a suspension or revocation of the restaurant liquor license or
             1044      other disciplinary action taken against individual employees or management personnel.
             1045          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
             1046      store or package agency.
             1047          (b) Liquor purchased from a state store or package agency may be transported by the
             1048      restaurant liquor licensee from the place of purchase to the licensed premises.
             1049          (c) Payment for liquor shall be made in accordance with rules established by the
             1050      commission.


             1051          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             1052      a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
             1053      dispensing system approved by the department in accordance with commission rules adopted
             1054      under this title, except that:
             1055          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1056      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1057      restrictions:
             1058          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1059      a primary spirituous liquor;
             1060          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1061          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             1062      on the floor plan provided to the department; and
             1063          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1064          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1065      system if used:
             1066          (i) as a flavoring on a dessert; and
             1067          (ii) in the preparation of a flaming food dish, drink, or dessert;
             1068          (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
             1069      and
             1070          (d) a restaurant patron may have no more than one spirituous liquor drink at a time
             1071      before the patron.
             1072          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             1073      exceed five ounces per glass or individual portion.
             1074          (ii) An individual portion of wine may be served to a patron in more than one glass as
             1075      long as the total amount of wine does not exceed five ounces.
             1076          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1077      Subsection (7)[(e)](d).
             1078          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             1079      fixed by the commission to a table of four or more persons.
             1080          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             1081      fixed by the commission to a table of less than four persons.


             1082          (c) A wine service may be performed and a service charge assessed by a restaurant
             1083      liquor licensee as authorized by commission rule for wine purchased at the restaurant.
             1084          (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
             1085      price fixed by the commission.
             1086          (b) A flavored malt beverage may be served in an original container not exceeding one
             1087      liter at a price fixed by the commission.
             1088          (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
             1089      commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
             1090          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
             1091      on-premise consumption:
             1092          (A) in an open container; and
             1093          (B) on draft.
             1094          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1095      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1096      container that exceeds one liter.
             1097          (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
             1098          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1099      commission; and
             1100          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1101      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             1102      inconsistent with or less restrictive than the operational restrictions under this part.
             1103          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1104      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1105      restaurant's:
             1106          (i) state liquor license; and
             1107          (ii) alcoholic beverage license issued by the local authority.
             1108          (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
             1109      designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
             1110      first applies for and receives approval from the department for a change of location within the
             1111      restaurant.
             1112          (7) (a) (i) A patron may only make an alcoholic beverage purchase in the restaurant


             1113      from and be served by a person employed, designated, and trained by the restaurant liquor
             1114      licensee to sell and serve an alcoholic beverage.
             1115          (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
             1116      employee of the restaurant or carries bottled wine onto the premises of the restaurant pursuant
             1117      to Subsection (14) may thereafter serve wine from the bottle to the patron or others at the
             1118      patron's table.
             1119          [(b) An alcoholic beverage shall be delivered by a server to the patron.]
             1120          [(c) An] (b) A patron may consume an alcoholic beverage [may] only [be consumed] at
             1121      the patron's table or at a counter, bar, or similar structure.
             1122          [(d) An alcoholic beverage may not be served to or consumed by a patron at a bar.]
             1123          (c) (i) For purposes of this Subsection (7)(c), "bar structure" means the entire counter
             1124      or structure at which occurs an activity that makes the counter or structure a bar under Section
             1125      32A-1-105 .
             1126          (ii) A patron who is 21 years of age or older may:
             1127          (A) sit at a bar structure;
             1128          (B) be served an alcoholic beverage at a bar structure; and
             1129          (C) consume an alcoholic beverage at a bar structure.
             1130          (iii) Except as provided in Subsection (7)(c)(iv), a restaurant liquor licensee may not
             1131      permit a minor to, and a minor may not:
             1132          (A) sit at a bar structure; or
             1133          (B) consume food or beverages at a bar structure.
             1134          (iv) (A) A minor may be at a bar structure if the minor is employed by a restaurant
             1135      liquor licensee to perform maintenance and cleaning services during an hour when the
             1136      restaurant liquor licensee is not open for business.
             1137          (B) A minor may momentarily pass by a bar structure without remaining or sitting at
             1138      the bar structure en route to an area of a restaurant liquor licensee's premises in which the
             1139      minor is permitted to be.
             1140          [(e)] (d) A restaurant patron may have no more than two alcoholic beverages of any
             1141      kind at a time before the patron, subject to the limitation in Subsection (2)(d).
             1142          (8) The liquor storage area shall remain locked at all times other than those hours and
             1143      days when liquor sales are authorized by law.


             1144          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1145      restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
             1146          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1147      Licenses, for on-premise beer licensees.
             1148          (10) An alcoholic beverage may not be sold except in connection with an order for food
             1149      prepared, sold, and served at the restaurant.
             1150          (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             1151          (a) minor;
             1152          (b) person actually, apparently, or obviously intoxicated;
             1153          (c) known habitual drunkard; or
             1154          (d) known interdicted person.
             1155          (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
             1156          (ii) Liquor may not be sold at a discount price on any date or at any time.
             1157          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             1158      beverage to the restaurant liquor licensee.
             1159          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1160      over consumption or intoxication.
             1161          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1162      hours of a restaurant liquor licensee's business day such as a "happy hour."
             1163          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             1164      alcoholic beverage.
             1165          (f) An indefinite or unlimited number of alcoholic beverages during a set period may
             1166      not be sold or served for a fixed price.
             1167          (g) A restaurant liquor licensee may not engage in a public promotion involving or
             1168      offering free an alcoholic beverage to the general public.
             1169          (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
             1170          (a) the restaurant liquor licensee; or
             1171          (b) an employee or agent of the restaurant liquor licensee.
             1172          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
             1173      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1174      discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor


             1175      licensee for on-premise consumption.
             1176          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
             1177      officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
             1178          (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
             1179      consumption; or
             1180          (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
             1181      restaurant liquor licensee's premises.
             1182          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1183      or other representative of the restaurant liquor licensee upon entering the restaurant.
             1184          (d) A wine service may be performed and a service charge assessed by a restaurant
             1185      liquor licensee as authorized by commission rule for wine carried in by a patron.
             1186          (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
             1187      employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
             1188      restaurant premises an open container that:
             1189          (i) is used primarily for drinking purposes; and
             1190          (ii) contains an alcoholic beverage.
             1191          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             1192      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             1193      onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
             1194      recorked or recapped before removal.
             1195          (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
             1196      alcoholic beverage.
             1197          (b) Notwithstanding Subsection (16)(a) and subject to Subsection (7)(c), a minor who
             1198      is at least 16 years of age may be employed to enter the sale at a cash register or other sales
             1199      recording device.
             1200          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             1201          (a) consume an alcoholic beverage; or
             1202          (b) be intoxicated.
             1203          (18) A charge or fee made in connection with the sale, service, or consumption of liquor
             1204      may be stated in food or alcoholic beverage menus including:
             1205          (a) a set-up charge;


             1206          (b) a service charge; or
             1207          (c) a chilling fee.
             1208          (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
             1209          (a) the liquor license that is issued by the department;
             1210          (b) a list of the types and brand names of liquor being served through its calibrated
             1211      metered dispensing system; and
             1212          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1213      drugs is a serious crime that is prosecuted aggressively in Utah."
             1214          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             1215      licensee:
             1216          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1217      Chapter 10, Part 11, Gambling;
             1218          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1219      Part 11, Gambling; or
             1220          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1221      the risking of something of value for a return or for an outcome when the return or outcome is
             1222      based upon an element of chance, excluding the playing of an amusement device that confers
             1223      only an immediate and unrecorded right of replay not exchangeable for value.
             1224          (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record showing
             1225      in detail:
             1226          (i) quarterly expenditures made separately for:
             1227          (A) malt or brewed beverages;
             1228          (B) set-ups;
             1229          (C) liquor;
             1230          (D) food; and
             1231          (E) all other items required by the department; and
             1232          (ii) sales made separately for:
             1233          (A) malt or brewed beverages;
             1234          (B) set-ups;
             1235          (C) food; and
             1236          (D) all other items required by the department.


             1237          (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
             1238          (i) in a form approved by the department; and
             1239          (ii) current for each three-month period.
             1240          (c) An expenditure shall be supported by:
             1241          (i) a delivery ticket;
             1242          (ii) an invoice;
             1243          (iii) a receipted bill;
             1244          (iv) a canceled check;
             1245          (v) a petty cash voucher; or
             1246          (vi) other sustaining datum or memorandum.
             1247          (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
             1248      liquor licensee shall maintain accounting and other records and documents as the department
             1249      may require.
             1250          (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
             1251      forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
             1252      other document of the restaurant that is required to be made, maintained, or preserved by this
             1253      title or the rules of the commission for the purpose of deceiving the commission or the
             1254      department, or an official or employee of the commission or department, is subject to:
             1255          (i) the suspension or revocation of the restaurant's liquor license; and
             1256          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1257          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             1258      longer than 240 hours, unless:
             1259          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             1260      before the day on which the restaurant liquor licensee closes or ceases operation; and
             1261          (ii) the closure or cessation of operation is first approved by the department.
             1262          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
             1263      restaurant liquor licensee shall immediately notify the department by telephone.
             1264          (c) (i) The department may authorize a closure or cessation of operation for a period
             1265      not to exceed 60 days.
             1266          (ii) The department may extend the initial period an additional 30 days upon:
             1267          (A) written request of the restaurant liquor licensee; and


             1268          (B) a showing of good cause.
             1269          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1270      commission approval.
             1271          (d) A notice shall include:
             1272          (i) the dates of closure or cessation of operation;
             1273          (ii) the reason for the closure or cessation of operation; and
             1274          (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
             1275          (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
             1276      authorization before closure or cessation of operation results in an automatic forfeiture of:
             1277          (i) the license; and
             1278          (ii) the unused portion of the license fee for the remainder of the license year effective
             1279      immediately.
             1280          (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
             1281      approved date results in an automatic forfeiture of:
             1282          (i) the license; and
             1283          (ii) the unused portion of the license fee for the remainder of the license year.
             1284          (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
             1285      business from the sale of food, which does not include mix for an alcoholic beverage or service
             1286      charges.
             1287          (24) A restaurant liquor license may not be transferred from one location to another,
             1288      without prior written approval of the commission.
             1289          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             1290      assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
             1291      to another person whether for monetary gain or not.
             1292          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             1293      disposition.
             1294          (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
             1295      shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
             1296      beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
             1297      beverage ordered or consumed.
             1298          (27) A person's willingness to serve an alcoholic beverage may not be made a


             1299      condition of employment as a server with a restaurant that has a restaurant liquor license.
             1300          (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
             1301      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             1302      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             1303          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1304      58-37-2 ; or
             1305          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1306      Section 58-37a-3 .
             1307          Section 11. Section 32A-4-307 is amended to read:
             1308           32A-4-307. Operational restrictions.
             1309          A person granted a limited restaurant license and the employees and management
             1310      personnel of the limited restaurant shall comply with the following conditions and
             1311      requirements. Failure to comply may result in a suspension or revocation of the license or
             1312      other disciplinary action taken against individual employees or management personnel.
             1313          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             1314      except from a state store or package agency.
             1315          (b) Wine and heavy beer purchased from a state store or package agency may be
             1316      transported by the limited restaurant licensee from the place of purchase to the licensed
             1317      premises.
             1318          (c) Payment for wine and heavy beer shall be made in accordance with rules
             1319      established by the commission.
             1320          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
             1321      products listed in Subsection (2)(c) on the premises of the limited restaurant.
             1322          (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
             1323      restaurant except for use:
             1324          (i) as a flavoring on a dessert; and
             1325          (ii) in the preparation of a flaming food dish, drink, or dessert.
             1326          (c) This Subsection (2) applies to:
             1327          (i) spirituous liquor; and
             1328          (ii) [on or after October 1, 2008,] a flavored malt beverage.
             1329          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to


             1330      exceed five ounces per glass or individual portion.
             1331          (ii) An individual portion may be served to a patron in more than one glass as long as
             1332      the total amount of wine does not exceed five ounces.
             1333          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1334      Subsection (7)[(e)](d).
             1335          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             1336      fixed by the commission to a table of four or more persons.
             1337          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             1338      fixed by the commission to a table of less than four persons.
             1339          (c) A wine service may be performed and a service charge assessed by the limited
             1340      restaurant licensee as authorized by commission rule for wine purchased at the limited
             1341      restaurant.
             1342          (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
             1343      price fixed by the commission.
             1344          (b) A service charge may be assessed by the limited restaurant licensee as authorized
             1345      by commission rule for heavy beer purchased at the limited restaurant.
             1346          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             1347      on-premise consumption:
             1348          (A) in an open container; and
             1349          (B) on draft.
             1350          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1351      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1352      container that exceeds one liter.
             1353          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             1354          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1355      commission; and
             1356          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1357      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             1358      inconsistent with or less restrictive than the operational restrictions under this part.
             1359          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1360      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited


             1361      restaurant's:
             1362          (i) limited restaurant license; and
             1363          (ii) alcoholic beverage license issued by the local authority.
             1364          (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
             1365      as designated in the limited restaurant licensee's application, unless the limited restaurant
             1366      licensee first applies for and receives approval from the department for a change of location
             1367      within the limited restaurant.
             1368          (7) (a) (i) A patron may only make an alcoholic beverage purchase in a limited
             1369      restaurant from and be served by a person employed, designated, and trained by the limited
             1370      restaurant licensee to sell and serve an alcoholic beverage.
             1371          (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
             1372      employee of the limited restaurant licensee or carries bottled wine onto the premises of the
             1373      limited restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
             1374      patron or others at the patron's table.
             1375          [(b) An alcoholic beverage shall be delivered by a server to the patron.]
             1376          [(c) An] (b) A patron may consume an alcoholic beverage [may] only [be consumed] at
             1377      the patron's table or at a counter, bar, or similar structure.
             1378          [(d) An alcoholic beverage may not be served to or consumed by a patron at a bar.]
             1379          (c) (i) For purposes of this Subsection (7)(c), "bar structure" means the entire counter
             1380      or structure at which occurs an activity that makes the counter or structure a bar under Section
             1381      32A-1-105 .
             1382          (ii) A patron who is 21 years of age or older may:
             1383          (A) sit at a bar structure;
             1384          (B) be served an alcoholic beverage at a bar structure; or
             1385          (C) consume an alcoholic beverage at a bar structure.
             1386          (iii) Except as provided in Subsection (7)(c)(iv), a limited restaurant licensee may not
             1387      permit a minor to, and a minor may not:
             1388          (A) sit at a bar structure; or
             1389          (B) consume food or beverages at a bar structure.
             1390          (iv) (A) A minor may be at a bar structure if the minor is employed by a limited
             1391      restaurant licensee to perform maintenance and cleaning services during an hour when the


             1392      limited restaurant licensee is not open for business.
             1393          (B) A minor may momentarily pass by a bar structure without remaining or sitting at
             1394      the bar structure en route to an area of a limited restaurant licensee's premises in which the
             1395      minor is permitted to be.
             1396          [(e)] (d) A limited restaurant patron may have no more than two alcoholic beverages of
             1397      any kind at a time before the patron.
             1398          (8) The alcoholic beverage storage area shall remain locked at all times other than
             1399      those hours and days when alcoholic beverage sales are authorized by law.
             1400          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             1401      furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
             1402          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1403      Licenses, for on-premise beer licensees.
             1404          (10) An alcoholic beverage may not be sold except in connection with an order of food
             1405      prepared, sold, and served at the limited restaurant.
             1406          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
             1407          (a) minor;
             1408          (b) person actually, apparently, or obviously intoxicated;
             1409          (c) known habitual drunkard; or
             1410          (d) known interdicted person.
             1411          (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
             1412          (ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
             1413          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             1414      beverage to the limited restaurant licensee.
             1415          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1416      over consumption or intoxication.
             1417          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1418      hours of the limited restaurant licensee's business day such as a "happy hour."
             1419          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             1420      alcoholic beverage.
             1421          (f) An indefinite or unlimited number of alcoholic beverages during a set period may
             1422      not be sold or served for a fixed price.


             1423          (g) A limited restaurant licensee may not engage in a public promotion involving or
             1424      offering free alcoholic beverages to the general public.
             1425          (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
             1426      by:
             1427          (a) the limited restaurant licensee; or
             1428          (b) an employee or agent of the limited restaurant licensee.
             1429          (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
             1430      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1431      discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
             1432      restaurant licensee for on-premise consumption.
             1433          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
             1434      officer, manager, employee, or agent of a limited restaurant licensee may not allow:
             1435          (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
             1436      on-premise consumption; or
             1437          (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
             1438      limited restaurant licensee's premises.
             1439          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1440      or other representative of the limited restaurant licensee upon entering the limited restaurant.
             1441          (d) A wine service may be performed and a service charge assessed by the limited
             1442      restaurant licensee as authorized by commission rule for wine carried in by a patron.
             1443          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
             1444      employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
             1445      limited restaurant premises an open container that:
             1446          (i) is used primarily for drinking purposes; and
             1447          (ii) contains an alcoholic beverage.
             1448          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             1449      contents of a bottle of wine if before removal, the bottle is recorked or recapped.
             1450          (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
             1451      alcoholic beverage.
             1452          (b) Notwithstanding Subsection (16)(a) and subject to Subsection (7)(c), a minor who
             1453      is at least 16 years of age may be employed to enter the sale at a cash register or other sales


             1454      recording device.
             1455          (17) An employee of a limited restaurant licensee, while on duty, may not:
             1456          (a) consume an alcoholic beverage; or
             1457          (b) be intoxicated.
             1458          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             1459      or heavy beer may be stated in food or alcoholic beverage menus including:
             1460          (a) a service charge; or
             1461          (b) a chilling fee.
             1462          (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
             1463          (a) the limited restaurant license that is issued by the department; and
             1464          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1465      drugs is a serious crime that is prosecuted aggressively in Utah."
             1466          (20) A limited restaurant licensee may not on the premises of the restaurant:
             1467          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1468      Chapter 10, Part 11, Gambling;
             1469          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1470      Part 11, Gambling; or
             1471          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1472      the risking of something of value for a return or for an outcome when the return or outcome is
             1473      based upon an element of chance, excluding the playing of an amusement device that confers
             1474      only an immediate and unrecorded right of replay not exchangeable for value.
             1475          (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
             1476      showing in detail:
             1477          (i) quarterly expenditures made separately for:
             1478          (A) wine;
             1479          (B) heavy beer;
             1480          (C) beer;
             1481          (D) food; and
             1482          (E) all other items required by the department; and
             1483          (ii) sales made separately for:
             1484          (A) wine;


             1485          (B) heavy beer;
             1486          (C) beer;
             1487          (D) food; and
             1488          (E) all other items required by the department.
             1489          (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
             1490          (i) in a form approved by the department; and
             1491          (ii) current for each three-month period.
             1492          (c) An expenditure shall be supported by:
             1493          (i) a delivery ticket;
             1494          (ii) an invoice;
             1495          (iii) a receipted bill;
             1496          (iv) a canceled check;
             1497          (v) a petty cash voucher; or
             1498          (vi) other sustaining datum or memorandum.
             1499          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             1500      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             1501      the department may require.
             1502          (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
             1503      forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
             1504      other document of the limited restaurant that is required to be made, maintained, or preserved
             1505      by this title or the rules of the commission for the purpose of deceiving the commission, the
             1506      department, or an official or employee of the commission or department, is subject to:
             1507          (i) the suspension or revocation of the limited restaurant's license; and
             1508          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1509          (22) (a) A limited restaurant licensee may not close or cease operation for a period
             1510      longer than 240 hours, unless:
             1511          (i) the limited restaurant licensee notifies the department in writing at least seven days
             1512      before the day on which the limited restaurant licensee closes or ceases operation; and
             1513          (ii) the closure or cessation of operation is first approved by the department.
             1514          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
             1515      restaurant licensee shall immediately notify the department by telephone.


             1516          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             1517      cessation of operation for a period not to exceed 60 days.
             1518          (ii) The department may extend the initial period an additional 30 days upon:
             1519          (A) written request of the limited restaurant licensee; and
             1520          (B) a showing of good cause.
             1521          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1522      commission approval.
             1523          (d) A notice required by Subsection (22)(a) shall include:
             1524          (i) the dates of closure or cessation of operation;
             1525          (ii) the reason for the closure or cessation of operation; and
             1526          (iii) the date on which the limited restaurant licensee will reopen or resume operation.
             1527          (e) Failure of the limited restaurant licensee to provide notice and to obtain department
             1528      authorization before closure or cessation of operation results in an automatic forfeiture of:
             1529          (i) the limited restaurant license; and
             1530          (ii) the unused portion of the license fee for the remainder of the license year effective
             1531      immediately.
             1532          (f) Failure of the limited restaurant licensee to reopen or resume operation by the
             1533      approved date results in an automatic forfeiture of:
             1534          (i) the limited restaurant license; and
             1535          (ii) the unused portion of the license fee for the remainder of the license year.
             1536          (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
             1537      business from the sale of food, which does not include service charges.
             1538          (24) A limited restaurant license may not be transferred from one location to another,
             1539      without prior written approval of the commission.
             1540          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             1541      give, or attempt in any way to dispose of the limited restaurant license to another person
             1542      whether for monetary gain or not.
             1543          (b) A limited restaurant license has no monetary value for the purpose of any type of
             1544      disposition.
             1545          (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
             1546      establishment shall keep a written beverage tab for each table or group that orders or consumes


             1547      an alcoholic beverage on the premises.
             1548          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
             1549      alcoholic beverage ordered or consumed.
             1550          (27) A limited restaurant licensee may not make a person's willingness to serve an
             1551      alcoholic beverage a condition of employment as a server with the limited restaurant.
             1552          (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
             1553      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             1554      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             1555          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1556      58-37-2 ; or
             1557          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1558      Section 58-37a-3 .
             1559          Section 12. Section 32A-4-501 is enacted to read:
             1560     
Part 5. Social On-premise Liquor Licenses

             1561          32A-4-501. Definitions -- Commission's power to license social on-premise liquor
             1562      establishments -- Limitations.
             1563          (1) As used in this chapter:
             1564          (a) "Class 1 social on-premise liquor licensee" means a person that qualifies as a class
             1565      1 social on-premise liquor licensee under Subsection (3)(a)(ii)(A).
             1566          (b) "Class 2 social on-premise liquor licensee" means a person that qualifies as a class
             1567      2 social on-premise liquor licensee under Subsection (3)(a)(ii)(B).
             1568          (c) "Social on-premise liquor licensee" means a person who is licensed under this
             1569      chapter.
             1570          (2) Before a person may sell or allow the consumption of an alcoholic beverage on its
             1571      premises as a social on-premise liquor licensee, the person shall first obtain a license from the
             1572      commission as provided in this chapter.
             1573          (3) (a) The commission may grant a social on-premise liquor license to a person who:
             1574          (i) meets the requirements of this chapter; and
             1575          (ii) (A) meets the following requirements for a class 1 social on-premise liquor license:
             1576          (I) operates in the manner of a dining establishment, as determined by the commission,
             1577      which may consider:


             1578          (Aa) the square footage and seating capacity of the applicant;
             1579          (Bb) what portion of the square footage and seating capacity will be used for a dining
             1580      area in comparison to the portion that will be used as a bar area;
             1581          (Cc) whether full meals including appetizers, main courses, and desserts are served;
             1582          (Dd) whether the applicant will maintain adequate on-premise culinary facilities to
             1583      prepare full meals, or if an applicant is located on the premise of a hotel or resort facility, will
             1584      use the culinary facilities of the hotel or resort facility;
             1585          (Ee) whether the entertainment provided at the social on-premise liquor licensee is
             1586      suitable for minors; and
             1587          (Ff) the applicant management's ability to manage and operate a dining establishment,
             1588      including management experience, past dining establishment or restaurant management
             1589      experience, and the type of management scheme employed by the applicant; and
             1590          (II) maintains at least 50% of its total business from the sale of food, not including:
             1591          (Aa) a mix for an alcoholic beverage; or
             1592          (Bb) a service charge; or
             1593          (B) for a class 2 social on-premise liquor license:
             1594          (I) does not meet the requirements of a class 1 social on-premise liquor license; or
             1595          (II) seeks to qualify as a class 2 social on-premise liquor licensee.
             1596          (b) At the time the commission grants a social on-premise liquor license the
             1597      commission shall designate whether the social on-premise liquor license qualifies as a class 1
             1598      social on-premise liquor license or a class 2 social on-premise liquor license.
             1599          (4) (a) Subject to the other provisions of this Subsection (4), the commission may grant
             1600      social on-premise liquor licenses at places and in numbers as the commission considers
             1601      necessary.
             1602          (b) The total number of social on-premise liquor licenses may not at any time aggregate
             1603      more than that allowed under Section 32A-4-507 , until such time that the number is determined
             1604      by dividing the population of the state by the number specified by the Legislature.
             1605          (c) For purposes of this Subsection (4), population shall be determined by:
             1606          (i) the most recent United States decennial or special census; or
             1607          (ii) another population determination made by the United States or state governments.
             1608          (d) (i) The commission may grant seasonal social on-premise liquor licenses to be


             1609      established in areas the commission considers necessary.
             1610          (ii) A seasonal social on-premise liquor license shall be for a period of six consecutive
             1611      months.
             1612          (iii) A social on-premise liquor license granted for operation during a summer time
             1613      period is known as a "Seasonal A" social on-premise liquor license. The period of operation
             1614      for a "Seasonal A" social on-premise liquor license shall:
             1615          (A) begin on May 1; and
             1616          (B) end on October 31.
             1617          (iv) A social on-premise liquor license granted for operation during a winter time
             1618      period is known as a "Seasonal B" social on-premise liquor license. The period of operation
             1619      for a "Seasonal B" social on-premise liquor license shall:
             1620          (A) begin on November 1; and
             1621          (B) end on April 30.
             1622          (v) In determining the number of social on-premise liquor licenses that the commission
             1623      may grant under this section:
             1624          (A) a seasonal social on-premise liquor license is counted as one half of one social
             1625      on-premise liquor license; and
             1626          (B) each "Seasonal A" social on-premise liquor license shall be paired with a "Seasonal
             1627      B" social on-premise liquor license.
             1628          (e) (i) If the location, design, and construction of a hotel may require more than one
             1629      social on-premise liquor license location within the hotel to serve the public convenience, the
             1630      commission may authorize as many as three social on-premise liquor license locations within
             1631      the hotel under one license if:
             1632          (A) the hotel has a minimum of 150 guest rooms; and
             1633          (B) all locations under the social on-premise liquor license are:
             1634          (I) within the same hotel facility; and
             1635          (II) on premises which are managed or operated and owned or leased by the social
             1636      on-premise liquor licensee.
             1637          (ii) A facility other than a hotel may not have more than one social on-premise liquor
             1638      license location under a single social on-premise liquor license.
             1639          (5) (a) Except as provided in Subsection (5)(b), (c), or (d), the premises of a social


             1640      on-premise liquor license may not be established:
             1641          (i) within 600 feet of a community location, as measured by the method in Subsection
             1642      (5)(e); or
             1643          (ii) within 200 feet of a community location, measured in a straight line from the
             1644      nearest entrance of the proposed outlet to the nearest property boundary of the community
             1645      location.
             1646          (b) With respect to the establishment of a social on-premise liquor license, the
             1647      commission may authorize a variance to reduce the proximity requirement of Subsection
             1648      (5)(a)(i) if:
             1649          (i) the local authority grants its written consent to the variance;
             1650          (ii) the commission finds that alternative locations for establishing a social on-premise
             1651      liquor license in the community are limited;
             1652          (iii) a public hearing is held in the city, town, or county, and where practical in the
             1653      neighborhood concerned;
             1654          (iv) after giving full consideration to all of the attending circumstances and the policies
             1655      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1656      social on-premise liquor license would not be detrimental to the public health, peace, safety,
             1657      and welfare of the community; and
             1658          (v) (A) the community location governing authority gives its written consent to the
             1659      variance; or
             1660          (B) when written consent is not given by the community location governing authority,
             1661      the commission finds that the applicant has established that:
             1662          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1663      within the geographic boundary of the local authority in which the social on-premise liquor
             1664      licensee is to be located;
             1665          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1666      described in Subsection (5)(b)(v)(B)(I) other than through the establishment of a social
             1667      on-premise liquor licensee; and
             1668          (III) there is no reasonably viable alternative location within the geographic boundary
             1669      of the local authority in which the social on-premise liquor licensee is to be located for
             1670      establishing a social on-premise liquor license to satisfy the unmet demand described in


             1671      Subsection (5)(b)(v)(B)(I).
             1672          (c) With respect to the establishment of a social on-premise liquor license, the
             1673      commission may authorize a variance that reduces the proximity requirement of Subsection
             1674      (5)(a)(ii) if:
             1675          (i) the community location at issue is:
             1676          (A) a public library; or
             1677          (B) a public park;
             1678          (ii) the local authority grants its written consent to the variance;
             1679          (iii) the commission finds that alternative locations for establishing a social on-premise
             1680      liquor license in the community are limited;
             1681          (iv) a public hearing is held in the city, town, or county, and where practical in the
             1682      neighborhood concerned;
             1683          (v) after giving full consideration to all of the attending circumstances and the policies
             1684      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1685      social on-premise liquor license would not be detrimental to the public health, peace, safety,
             1686      and welfare of the community; and
             1687          (vi) (A) the community location governing authority gives its written consent to the
             1688      variance; or
             1689          (B) when written consent is not given by the community location governing authority,
             1690      the commission finds that the applicant has established that:
             1691          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1692      within the geographic boundary of the local authority in which the social on-premise liquor
             1693      licensee is to be located;
             1694          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1695      described in Subsection (5)(c)(vi)(B)(I) other than through the establishment of a social
             1696      on-premise liquor license; and
             1697          (III) there is no reasonably viable alternative location within the geographic boundary
             1698      of the local authority in which the social on-premise liquor licensee is to be located for
             1699      establishing a social on-premise liquor license to satisfy the unmet demand described in
             1700      Subsection (5)(c)(vi)(B)(I).
             1701          (d) With respect to the premises of a social on-premise liquor license granted by the


             1702      commission that undergoes a change of ownership, the commission may waive or vary the
             1703      proximity requirements of Subsection (5)(a) in considering whether to grant a social
             1704      on-premise liquor license to the new owner of the premises if:
             1705          (i) (A) the premises previously received a variance reducing the proximity requirement
             1706      of Subsection (5)(a)(i); or
             1707          (B) the premises received a variance reducing the proximity requirement of Subsection
             1708      (5)(a)(ii) on or before May 4, 2008; or
             1709          (ii) a variance from proximity requirements was otherwise allowed under this title.
             1710          (e) The 600-foot limitation described in Subsection (5)(a)(i) is measured from the
             1711      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             1712      property boundary of the community location.
             1713          (6) (a) Nothing in this section prevents the commission from considering the proximity
             1714      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             1715      decision on whether to grant a social on-premise liquor license.
             1716          (b) For purposes of this Subsection (6), "educational facility" includes:
             1717          (i) a nursery school;
             1718          (ii) an infant day care center; and
             1719          (iii) a trade and technical school.
             1720          (7) If requested by a social on-premise liquor licensee, the commission may approve a
             1721      change in the class of social on-premise liquor license in accordance with rules made by the
             1722      commission.
             1723          Section 13. Section 32A-4-502 is enacted to read:
             1724          32A-4-502. Application and renewal requirements.
             1725          (1) A person seeking a social on-premise liquor license under this chapter shall file a
             1726      written application with the department in a form prescribed by the department. The
             1727      application shall be accompanied by:
             1728          (a) a nonrefundable $250 application fee;
             1729          (b) an initial license fee of $2,500, which is refundable if a social on-premise liquor
             1730      license is not granted;
             1731          (c) written consent of the local authority;
             1732          (d) a copy of the applicant's current business license;


             1733          (e) evidence of proximity to any community location, with proximity requirements
             1734      being governed by Section 32A-4-501 ;
             1735          (f) evidence that the applicant operates a location where a variety of food is prepared
             1736      and served in connection with dining accommodations;
             1737          (g) a bond as specified by Section 32A-4-505 ;
             1738          (h) a floor plan of the social on-premise liquor license premises, including
             1739      consumption areas and the area where the applicant proposes to keep and store liquor;
             1740          (i) evidence that the applicant is carrying public liability insurance in an amount and
             1741      form satisfactory to the department;
             1742          (j) evidence that the applicant is carrying dramshop insurance coverage of at least
             1743      $500,000 per occurrence and $1,000,000 in the aggregate;
             1744          (k) a signed consent form stating that the applicant and its management will permit any
             1745      authorized representative of the commission, department, or any law enforcement officer
             1746      unrestricted right to enter the social on-premise liquor license premises;
             1747          (l) (i) a statement as to whether the applicant is seeking to qualify as a class 1 social
             1748      on-premise liquor licensee or a class 2 social on-premise liquor licensee; and
             1749          (ii) evidence that the applicant meets the requirements for the classification for which
             1750      the applicant is applying;
             1751          (m) in the case of a partnership, corporation, or limited liability company applicant,
             1752      proper verification evidencing that the person or persons signing the social on-premise liquor
             1753      license application are authorized to so act on behalf of the partnership, corporation, or limited
             1754      liability company; and
             1755          (n) any other information the commission or department may require.
             1756          (2) (a) A social on-premise liquor license expires on June 30 of each year.
             1757          (b) A person desiring to renew that person's social on-premise liquor license shall
             1758      submit by no later than May 31:
             1759          (i) a completed renewal application to the department; and
             1760          (ii) a renewal fee of $1,600.
             1761          (c) Failure to meet the renewal requirements results in an automatic forfeiture of the
             1762      license effective on the date the existing license expires.
             1763          (d) A renewal application shall be in a form as prescribed by the department.


             1764          (3) To ensure compliance with Subsection 32A-4-506 (23), the commission may
             1765      suspend or revoke a social on-premise liquor license if the social on-premise liquor licensee
             1766      does not immediately notify the department of any change in:
             1767          (a) ownership of the social on-premise liquor licensee;
             1768          (b) for a corporate owner, the:
             1769          (i) corporate officers or directors; or
             1770          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1771      corporation; or
             1772          (c) for a limited liability company:
             1773          (i) managers; or
             1774          (ii) members owning at least 20% of the limited liability company.
             1775          Section 14. Section 32A-4-503 is enacted to read:
             1776          32A-4-503. Qualifications.
             1777          (1) (a) The commission may not grant a social on-premise liquor license to a person
             1778      who has been convicted of:
             1779          (i) a felony under a federal or state law;
             1780          (ii) a violation of a federal or state law or local ordinance concerning the sale,
             1781      manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
             1782      beverage;
             1783          (iii) a crime involving moral turpitude; or
             1784          (iv) on two or more occasions within the five years before the day on which the license
             1785      is granted, driving under the influence of alcohol, a drug, or the combined influence of alcohol
             1786      and a drug.
             1787          (b) In the case of a partnership, corporation, or limited liability company, the
             1788      proscription under Subsection (1)(a) applies if any of the following has been convicted of an
             1789      offense described in Subsection (1)(a):
             1790          (i) a partner;
             1791          (ii) a managing agent;
             1792          (iii) a manager;
             1793          (iv) an officer;
             1794          (v) a director;


             1795          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             1796      the applicant corporation; or
             1797          (vii) a member who owns at least 20% of the applicant limited liability company.
             1798          (c) The proscription under Subsection (1)(a) applies if a person employed to act in a
             1799      supervisory or managerial capacity for a social on-premise liquor licensee has been convicted
             1800      of an offense described in Subsection (1)(a).
             1801          (2) The commission may immediately suspend or revoke a social on-premise liquor
             1802      license if after the day on which the social on-premise liquor license is granted, a person
             1803      described in Subsection (1)(a), (b), or (c):
             1804          (a) is found to have been convicted of an offense described in Subsection (1)(a) before
             1805      the social on-premise liquor license is granted; or
             1806          (b) on or after the day on which the social on-premise liquor license is granted:
             1807          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             1808          (ii) (A) is convicted of driving under the influence of alcohol, a drug, or the combined
             1809      influence of alcohol and a drug; and
             1810          (B) was convicted of driving under the influence of alcohol, a drug, or the combined
             1811      influence of alcohol and a drug within five years before the day on which the person is
             1812      convicted of the offense described in Subsection (2)(b)(ii)(A).
             1813          (3) The director may take emergency action by immediately suspending the operation
             1814      of a social on-premise liquor license in accordance with Title 63G, Chapter 4, Administrative
             1815      Procedures Act, for the period during which the criminal matter is being adjudicated if a person
             1816      described in Subsection (1)(a), (b), or (c):
             1817          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             1818      or
             1819          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, a
             1820      drug, or the combined influence of alcohol and a drug; and
             1821          (ii) was convicted of driving under the influence of alcohol, a drug, or the combined
             1822      influence of alcohol and a drug within five years before the day on which the person is arrested
             1823      on a charge described in Subsection (3)(b)(i).
             1824          (4) (a) (i) The commission may not grant a social on-premise liquor license to a person
             1825      who has had any type of license, agency, or permit issued under this title revoked within the


             1826      last three years.
             1827          (ii) The commission may not grant a social on-premise liquor license to an applicant
             1828      that is a partnership, corporation, or limited liability company if a partner, managing agent,
             1829      manager, officer, director, stockholder who holds at least 20% of the total issued and
             1830      outstanding stock of an applicant corporation, or member who owns at least 20% of an
             1831      applicant limited liability company is or was:
             1832          (A) a partner or managing agent of a partnership that had any type of license, agency,
             1833      or permit issued under this title revoked within the last three years;
             1834          (B) a managing agent, officer, director, or a stockholder who holds or held at least 20%
             1835      of the total issued and outstanding stock of a corporation that had any type of license, agency,
             1836      or permit issued under this title revoked within the last three years; or
             1837          (C) a manager or member who owns or owned at least 20% of a limited liability
             1838      company that had any type of license, agency, or permit issued under this title revoked within
             1839      the last three years.
             1840          (b) An applicant that is a partnership, corporation, or limited liability company may not
             1841      be granted a social on-premise liquor license if any of the following had any type of license,
             1842      agency, or permit issued under this title revoked while acting in that person's individual
             1843      capacity within the last three years:
             1844          (i) a partner or managing agent of the applicant partnership;
             1845          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             1846      total issued and outstanding stock of the applicant corporation; or
             1847          (iii) a manager or member who owned at least 20% of the applicant limited liability
             1848      company.
             1849          (c) A person acting in an individual capacity may not be granted a social on-premise
             1850      liquor license if that person was:
             1851          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             1852      permit issued under this title revoked within the last three years;
             1853          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             1854      total issued and outstanding stock of a corporation that had any type of license, agency, or
             1855      permit issued under this title revoked within the last three years; or
             1856          (iii) a manager or member of a limited liability company who owned at least 20% of


             1857      the limited liability company that had any type of license, agency, or permit issued under this
             1858      title revoked within the last three years.
             1859          (5) (a) A minor may not be granted a social on-premise liquor license.
             1860          (b) The commission may not grant a social on-premise liquor license to an applicant
             1861      that is a partnership, corporation, or limited liability company if any of the following is a
             1862      minor:
             1863          (i) a partner or managing agent of the applicant partnership;
             1864          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             1865      total issued and outstanding stock of the applicant corporation; or
             1866          (iii) a manager or member who owns at least 20% of the applicant limited liability
             1867      company.
             1868          (6) If a person to whom a social on-premise liquor license is granted under this chapter
             1869      no longer possesses the qualifications required by this title for obtaining that social on-premise
             1870      liquor license, the commission may suspend or revoke that social on-premise liquor license.
             1871          Section 15. Section 32A-4-504 is enacted to read:
             1872          32A-4-504. Commission and department duties before granting licenses.
             1873          (1) (a) Before the commission may grant a social on-premise liquor license, the
             1874      department shall conduct an investigation and may hold public hearings for the purpose of
             1875      gathering information and making recommendations to the commission as to whether or not a
             1876      social on-premise liquor license should be granted.
             1877          (b) The department shall forward the information and recommendations described in
             1878      Subsection (1)(a) to the commission to aid in the commission's determination.
             1879          (2) Before granting a social on-premise liquor license, the commission shall:
             1880          (a) determine that:
             1881          (i) the applicant has complied with all basic qualifications and requirements for making
             1882      application for a social on-premise liquor license as provided by Sections 32A-4-502 and
             1883      32A-4-503 ; and
             1884          (ii) the application is complete;
             1885          (b) determine whether the applicant qualifies as a class 1 social on-premise liquor
             1886      licensee or a class 2 social on-premise liquor licensee;
             1887          (c) consider the locality within which the proposed social on-premise liquor license


             1888      outlet is located including:
             1889          (i) physical characteristics such as:
             1890          (A) condition of the premises;
             1891          (B) square footage; and
             1892          (C) parking availability; and
             1893          (ii) operational factors such as:
             1894          (A) tourist traffic;
             1895          (B) proximity to and density of other state stores, package agencies, and licensed
             1896      outlets;
             1897          (C) demographics;
             1898          (D) population to be served; and
             1899          (E) the extent of and proximity to any community location;
             1900          (d) consider the social on-premise liquor licensee management's ability to manage and
             1901      operate a social on-premise liquor license, including:
             1902          (i) management experience;
             1903          (ii) past social on-premise liquor license experience; and
             1904          (iii) the type of management scheme employed by the social on-premise liquor
             1905      licensee;
             1906          (e) consider the nature or type of the proposed social on-premise liquor license
             1907      operation, including:
             1908          (i) the type of menu items offered and emphasized;
             1909          (ii) the hours of operation;
             1910          (iii) the seating capacity of the social on-premise liquor license premises; and
             1911          (iv) the gross sales of food items; and
             1912          (f) consider any other factor or circumstance the commission considers necessary.
             1913          Section 16. Section 32A-4-505 is enacted to read:
             1914          32A-4-505. Bond.
             1915          (1) A social on-premise liquor licensee shall post a cash or corporate surety bond in the
             1916      penal sum of $10,000 payable to the department, which the social on-premise liquor licensee
             1917      procures and must maintain for so long as the social on-premise liquor licensee continues to
             1918      operate as a social on-premise liquor licensee.


             1919          (2) The bond shall be in a form approved by the attorney general, conditioned upon the
             1920      social on-premise liquor licensee's faithful compliance with this title and the rules of the
             1921      commission.
             1922          (3) (a) If a $10,000 corporate surety bond is canceled due to the social on-premise
             1923      liquor licensee's negligence, a $300 reinstatement fee may be assessed.
             1924          (b) No part of any cash or corporate bond posted under this section may be withdrawn:
             1925          (i) during the period the social on-premise liquor license is in effect; or
             1926          (ii) while a revocation proceeding is pending against the social on-premise liquor
             1927      licensee.
             1928          (c) A bond filed by a social on-premise liquor licensee may be forfeited if the social
             1929      on-premise liquor license is finally revoked.
             1930          Section 17. Section 32A-4-506 is enacted to read:
             1931          32A-4-506. Operational restrictions.
             1932          (1) A social on-premise liquor licensee and the employees and management personnel
             1933      of the social on-premise liquor licensee shall comply with the conditions and requirements in
             1934      this section. Failure to comply may result in a suspension or revocation of the social
             1935      on-premise liquor license or other disciplinary action taken against individual employees or
             1936      management personnel.
             1937          (2) (a) A social on-premise liquor licensee may not purchase liquor except from a state
             1938      store or package agency.
             1939          (b) Liquor purchased from a state store or package agency may be transported by a
             1940      social on-premise liquor licensee from the place of purchase to the social on-premise liquor
             1941      licensee premises.
             1942          (c) Payment for liquor shall be made in accordance with rules established by the
             1943      commission.
             1944          (3) A social on-premise liquor licensee may sell or provide a primary spirituous liquor
             1945      only in a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated
             1946      metered dispensing system approved by the department in accordance with commission rules
             1947      adopted under this title, except that:
             1948          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1949      system if used as a secondary flavoring ingredient in a beverage subject to the following


             1950      restrictions:
             1951          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1952      a primary spirituous liquor;
             1953          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1954          (iii) the social on-premise liquor licensee shall designate a location where flavorings
             1955      are stored on the floor plan provided to the department; and
             1956          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1957          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1958      system if used:
             1959          (i) as a flavoring on a dessert; and
             1960          (ii) in the preparation of a flaming food dish, drink, or dessert;
             1961          (c) a social on-premise liquor licensee patron may have no more than 2.5 ounces of
             1962      spirituous liquor at a time before the social on-premise liquor licensee patron; and
             1963          (d) a social on-premise liquor licensee patron may have no more than two spirituous
             1964      liquor drinks at a time before the social on-premise liquor licensee patron, except that a social
             1965      on-premise liquor licensee patron may not have two spirituous liquor drinks before the social
             1966      on-premise liquor licensee patron if one of the spirituous liquor drinks consists only of the
             1967      primary spirituous liquor for the other spirituous liquor drink.
             1968          (4) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1969      exceed five ounces per glass or individual portion.
             1970          (ii) An individual portion may be served to a social on-premise liquor licensee patron
             1971      in more than one glass as long as the total amount of wine does not exceed five ounces.
             1972          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1973      Subsection (8)(c).
             1974          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             1975      fixed by the commission to a table of four or more persons.
             1976          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             1977      fixed by the commission to a table of less than four persons.
             1978          (c) A social on-premise liquor licensee may perform a wine service and assess a
             1979      service charge as authorized by commission rule for wine purchased at the social on-premise
             1980      liquor licensee premises.


             1981          (5) (a) Heavy beer may be served in an original container not exceeding one liter at a
             1982      price fixed by the commission.
             1983          (b) A flavored malt beverage may be served in an original container not exceeding one
             1984      liter at a price fixed by the commission.
             1985          (c) A social on-premise liquor licensee may assess a service charge for heavy beer or a
             1986      flavored malt beverage purchased at the social on-premise liquor licensee premises.
             1987          (6) (a) (i) Subject to Subsection (6)(a)(ii), a social on-premise liquor licensee may sell
             1988      beer for on-premise consumption:
             1989          (A) in an open container; and
             1990          (B) on draft.
             1991          (ii) Beer sold pursuant to Subsection (6)(a)(i) shall be in a size of container that does
             1992      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1993      container that exceeds one liter.
             1994          (b) (i) A social on-premise liquor licensee that sells beer pursuant to Subsection (6)(a):
             1995          (A) may do so without obtaining a separate on-premise beer retailer license from the
             1996      commission; and
             1997          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1998      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             1999      inconsistent with or less restrictive than the operational restrictions under this chapter.
             2000          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2001      Licenses, required by Subsection (6)(b)(i) may result in a suspension or revocation of the social
             2002      on-premise liquor licensee's:
             2003          (A) state liquor license; and
             2004          (B) alcoholic beverage license issued by the local authority.
             2005          (7) An alcoholic beverage may not be stored, served, or sold in a place other than as
             2006      designated in the social on-premise liquor licensee's application, unless the social on-premise
             2007      liquor licensee first applies for and receives approval from the department for a change of
             2008      location within the social on-premise liquor licensee's premises.
             2009          (8) (a) A patron may only make an alcoholic beverage purchase in the social
             2010      on-premise liquor licensee's premises from and be served by a person employed, designated,
             2011      and trained by the social on-premise liquor licensee to sell, dispense, and serve an alcoholic


             2012      beverage.
             2013          (b) Notwithstanding Subsection (8)(a), a patron who purchases bottled wine from an
             2014      employee of the social on-premise liquor licensee or carries bottled wine onto the premises of
             2015      the social on-premise liquor licensee pursuant to Subsection (14) may thereafter serve wine
             2016      from the bottle to the patron or others at the patron's table.
             2017          (c) A social on-premise liquor licensee patron may have no more than two alcoholic
             2018      beverages of any kind at a time before the social on-premise liquor licensee patron, subject to
             2019      the limitation of Subsection (3)(d).
             2020          (9) The liquor storage area of a social on-premise liquor licensee shall remain locked at
             2021      all times other than those hours and days when liquor sales and service are authorized by law.
             2022          (10) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             2023      social on-premise liquor licensee's premises on any day after 1 a.m. or before 10 a.m.
             2024          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2025      Licenses, for on-premise beer licenses.
             2026          (c) (i) Notwithstanding Subsections (10)(a) and (b), a social on-premise liquor licensee
             2027      shall remain open for one hour after the social on-premise liquor licensee ceases the sale and
             2028      service of an alcoholic beverage during which time a patron of the social on-premise liquor
             2029      licensee may finish consuming:
             2030          (A) a single drink containing spirituous liquor;
             2031          (B) a single serving of wine not exceeding five ounces;
             2032          (C) a single serving of heavy beer;
             2033          (D) a single serving of beer not exceeding 26 ounces; or
             2034          (E) a single serving of a flavored malt beverage.
             2035          (ii) A social on-premise liquor licensee is not required to remain open:
             2036          (A) after all patrons have vacated the premises; or
             2037          (B) during an emergency.
             2038          (d) Between the hours of 2 a.m. and 10 a.m. on any day a social on-premise liquor
             2039      licensee may not allow a patron to remain on the premises of the social on-premise liquor
             2040      licensee to consume an alcoholic beverage on the premises.
             2041          (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             2042          (a) minor;


             2043          (b) person actually, apparently, or obviously intoxicated;
             2044          (c) known habitual drunkard; or
             2045          (d) known interdicted person.
             2046          (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
             2047          (ii) Liquor may not be sold at a discount price on any date or at any time.
             2048          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             2049      beverage to the social on-premise liquor licensee.
             2050          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2051      over consumption or intoxication.
             2052          (d) The price of a single serving of a primary spirituous liquor shall be the same
             2053      whether served as a single drink or in conjunction with another alcoholic beverage.
             2054          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2055      hours of the social on-premise liquor licensee's business day such as a "happy hour."
             2056          (f) More than one alcoholic beverage may not be sold or served for the price of a single
             2057      alcoholic beverage.
             2058          (g) An indefinite or unlimited number of alcoholic beverages may not be sold or served
             2059      during a set period for a fixed price.
             2060          (h) A social on-premise liquor licensee may not engage in a promotion involving or
             2061      offering free alcoholic beverages to the general public.
             2062          (13) An alcoholic beverage may not be purchased for a patron of the social on-premise
             2063      liquor licensee by:
             2064          (a) the social on-premise liquor licensee; or
             2065          (b) an employee or agent of the social on-premise liquor licensee.
             2066          (14) (a) A person may not bring onto the premises of a social on-premise liquor
             2067      licensee an alcoholic beverage for on-premise consumption, except a person may bring, subject
             2068      to the discretion of the social on-premise liquor licensee, bottled wine onto the premises of a
             2069      social on-premise liquor licensee for on-premise consumption.
             2070          (b) Except bottled wine under Subsection (14)(a), a social on-premise liquor licensee
             2071      or an officer, manager, employee, or agent of a social on-premise liquor licensee may not
             2072      allow:
             2073          (i) a person to bring onto the social on-premise liquor licensee's premises an alcoholic


             2074      beverage for consumption on the social on-premise liquor licensee's premises; or
             2075          (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
             2076      premises of the social on-premise liquor licensee.
             2077          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2078      or other representative of the social on-premise liquor licensee upon entering the social
             2079      on-premise liquor licensee's premises.
             2080          (d) A social on-premise liquor licensee may perform a wine service and assess a
             2081      service charge as authorized by commission rule for wine carried in by a patron.
             2082          (15) (a) Except as provided in Subsection (15)(b), a social on-premise liquor licensee
             2083      or an employee of the social on-premise liquor licensee may not permit a patron of the social
             2084      on-premise liquor licensee to carry from the social on-premise liquor licensee's premises an
             2085      open container that:
             2086          (i) is used primarily for drinking purposes; and
             2087          (ii) contains an alcoholic beverage.
             2088          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             2089      removal, the bottle is recorked or recapped.
             2090          (16) An employee of a social on-premise liquor licensee, while on duty, may not:
             2091          (a) consume an alcoholic beverage; or
             2092          (b) be intoxicated.
             2093          (17) A social on-premise liquor licensee shall have available on the premises for a
             2094      patron to review at the time that the customer requests it, a written alcoholic beverage price list
             2095      or a menu containing the price of an alcoholic beverage sold or served by the social on-premise
             2096      liquor licensee including:
             2097          (a) a set-up charge;
             2098          (b) a service charge; or
             2099          (c) a chilling fee.
             2100          (18) A social on-premise liquor licensee shall display in a prominent place in the social
             2101      on-premise liquor licensee's premises:
             2102          (a) the social on-premise liquor license that is issued by the department;
             2103          (b) a list of the types and brand names of liquor being served through the social
             2104      on-premise liquor licensee's calibrated metered dispensing system; and


             2105          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2106      drugs is a serious crime that is prosecuted aggressively in Utah."
             2107          (19) A social on-premise liquor licensee may not on the premises of the social
             2108      on-premise liquor licensee:
             2109          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2110      Chapter 10, Part 11, Gambling;
             2111          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             2112      Part 11, Gambling; or
             2113          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2114      the risking of something of value for a return or for an outcome when the return or outcome is
             2115      based upon an element of chance, excluding the playing of an amusement device that confers
             2116      only an immediate and unrecorded right of replay not exchangeable for value.
             2117          (20) A social on-premise liquor licensee or an employee of the social on-premise liquor
             2118      licensee may not knowingly allow a person on the premises of the social on-premise liquor
             2119      licensee to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter
             2120      37a, Utah Drug Paraphernalia Act:
             2121          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2122      58-37-2 ; or
             2123          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2124      Section 58-37a-3 .
             2125          (21) (a) A social on-premise liquor licensee shall maintain an expense ledger or record
             2126      showing in detail:
             2127          (i) quarterly expenditures made separately for:
             2128          (A) malt or brewed beverages;
             2129          (B) set-ups;
             2130          (C) liquor;
             2131          (D) food; and
             2132          (E) all other items required by the department; and
             2133          (ii) sales made separately for:
             2134          (A) malt or brewed beverages;
             2135          (B) set-ups;


             2136          (C) liquor;
             2137          (D) food; and
             2138          (E) all other items required by the department.
             2139          (b) A social on-premise liquor licensee shall keep a record required by this Subsection
             2140      (21):
             2141          (i) in a form approved by the department; and
             2142          (ii) current for each three-month period.
             2143          (c) An expenditure shall be supported by:
             2144          (i) a delivery ticket;
             2145          (ii) an invoice;
             2146          (iii) a receipted bill;
             2147          (iv) a canceled check;
             2148          (v) a petty cash voucher; or
             2149          (vi) other sustaining datum or memorandum.
             2150          (d) In addition to a ledger or record required by Subsection (21)(a), a social on-premise
             2151      liquor licensee shall maintain accounting and other records and documents as the department
             2152      may require.
             2153          (e) A social on-premise liquor licensee or person acting for the social on-premise
             2154      liquor licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes
             2155      an entry in a book of account or other document of the social on-premise liquor licensee
             2156      required to be made, maintained, or preserved by this title or the rules of the commission for
             2157      the purpose of deceiving the commission, the department, or an official or employee of the
             2158      commission or department, is subject to:
             2159          (i) the suspension or revocation of the social on-premise liquor license; and
             2160          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2161          (f) A social on-premise liquor licensee shall maintain and keep a record required by
             2162      this section and a book, record, receipt, or disbursement maintained or used by the social
             2163      on-premise liquor licensee, as the department requires, for a minimum period of three years.
             2164          (g) A record, book, receipt, or disbursement is subject to inspection by an authorized
             2165      representative of the commission and the department.
             2166          (h) A social on-premise liquor licensee shall allow the department, through an auditor


             2167      or examiner of the department, to audit the records of the social on-premise liquor licensee at
             2168      times the department considers advisable.
             2169          (22) (a) A social on-premise liquor licensee may not close or cease operation for a
             2170      period longer than 240 hours, unless:
             2171          (i) the social on-premise liquor licensee notifies the department in writing at least
             2172      seven days before the day on which the social on-premise liquor licensee closes or ceases
             2173      operation; and
             2174          (ii) the closure or cessation of operation is first approved by the department.
             2175          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, a social
             2176      on-premise liquor licensee shall immediately notify the department by telephone.
             2177          (c) (i) The department may authorize a closure or cessation of operation for a period
             2178      not to exceed 60 days.
             2179          (ii) The department may extend the initial period an additional 30 days upon:
             2180          (A) written request of the social on-premise liquor licensee; and
             2181          (B) a showing of good cause.
             2182          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2183      commission approval.
             2184          (d) The notice required by Subsection (22)(a) shall include:
             2185          (i) the dates of closure or cessation of operation;
             2186          (ii) the reason for the closure or cessation of operation; and
             2187          (iii) the date on which the social on-premise liquor licensee will reopen or resume
             2188      operation.
             2189          (e) Failure of a social on-premise liquor licensee to provide notice and to obtain
             2190      department authorization before closure or cessation of operation results in an automatic
             2191      forfeiture of:
             2192          (i) the social on-premise liquor license; and
             2193          (ii) the unused portion of the social on-premise liquor license fee for the remainder of
             2194      the license year effective immediately.
             2195          (f) Failure of a social on-premise liquor licensee to reopen or resume operation by the
             2196      approved date results in an automatic forfeiture of:
             2197          (i) the social on-premise liquor license; and


             2198          (ii) the unused portion of the social on-premise liquor license fee for the remainder of
             2199      the license year.
             2200          (23) (a) A social on-premise liquor license may not be transferred from one location to
             2201      another person, without prior written approval of the commission.
             2202          (b) A social on-premise liquor licensee may not sell, transfer, assign, exchange, barter,
             2203      give, or attempt in any way to dispose of the social on-premise liquor license to another person,
             2204      whether for monetary gain or not.
             2205          (c) A social on-premise liquor license has no monetary value for the purpose of any
             2206      type of disposition.
             2207          (24) Subject to Subsections (22) and (23), a social on-premise liquor licensee may not
             2208      rent or otherwise lease its premises to a person unless:
             2209          (a) the person to whom the social on-premise liquor licensee rents or leases the
             2210      premises agrees in writing to comply with this section as if the person is the social on-premise
             2211      liquor licensee, except for a requirement related to maintaining a book, document, or similar
             2212      record; and
             2213          (b) the social on-premise liquor licensee takes reasonable steps to ensure that the
             2214      person complies with this section as provided in Subsection (24)(a).
             2215          (25) (a) A social on-premise liquor licensee may not maintain premises in a manner
             2216      that barricades or conceals the social on-premise liquor licensee's operation.
             2217          (b) A member of the commission, authorized department personnel, or a peace officer
             2218      shall, upon presentation of credentials, be admitted immediately to the premises of a social
             2219      on-premise liquor licensee and permitted without hindrance or delay to inspect completely the
             2220      entire social on-premise liquor licensee's premises and the books and records of the social
             2221      on-premise liquor licensee, at any time during which the social on-premise liquor licensee is
             2222      open for the transaction of business.
             2223          (26) (a) A minor may not be admitted into, use, or be on:
             2224          (i) a lounge or bar area, as defined by commission rule, of the premises of a class 1
             2225      social on-premise liquor licensee; or
             2226          (ii) the premises of a class 2 social on-premise liquor licensee, except to the extent
             2227      provided for under Subsection (26)(d).
             2228          (b) (i) Except as provided in Subsection (26)(b)(ii), a class 1 social on-premise liquor


             2229      licensee may not employ a minor to sell, dispense, or handle an alcoholic beverage.
             2230          (ii) A class 1 social on-premise liquor licensee may employ a minor who is at least 16
             2231      years of age to enter the sale at a cash register or other sales recording device.
             2232          (iii) A class 1 social on-premise liquor licensee may not employ a minor to work in a
             2233      lounge or bar area of the class 1 social on-premise liquor licensee.
             2234          (c) A class 2 social on-premise liquor licensee may not employ a minor on the premises
             2235      of the class 2 social on-premise liquor licensee.
             2236          (d) (i) A minor who is at least 18 years of age may be admitted into, use, or be on the
             2237      premises of a dance or concert hall if:
             2238          (A) the dance or concert hall is located:
             2239          (I) on the premises of a class 2 social on-premise liquor license; or
             2240          (II) on the property that immediately adjoins the premises of and is operated by a class
             2241      2 social on-premise liquor licensee; and
             2242          (B) the class 2 social on-premise liquor licensee holds a permit to operate a minor
             2243      dance or concert hall:
             2244          (I) that was granted on or before May 11, 2009, on the basis of the operational
             2245      requirements described in Subsection (26)(d)(ii); and
             2246          (II) when the class 2 social on-premise liquor licensee was licensed as a class D private
             2247      club.
             2248          (ii) A class 2 social on-premise liquor licensee shall continue to operate in such a way
             2249      that:
             2250          (A) the social on-premise liquor licensee's lounge, bar, or other area for consumption
             2251      of an alcoholic beverage is:
             2252          (I) not accessible to a minor;
             2253          (II) clearly defined; and
             2254          (III) separated from the dance or concert hall area by one or more walls, multiple floor
             2255      levels, or other substantial physical barriers;
             2256          (B) a bar or dispensing area is not visible to a minor;
             2257          (C) consumption of an alcoholic beverage may not occur in:
             2258          (I) the dance or concert hall area; or
             2259          (II) an area of the social on-premise liquor licensee's premises that is accessible to a


             2260      minor;
             2261          (D) the social on-premise liquor licensee maintains sufficient security personnel to
             2262      prevent the passing of beverages from the social on-premise liquor licensee's lounge, bar, or
             2263      other area for consumption of an alcoholic beverage to:
             2264          (I) the dance or concert hall area; or
             2265          (II) an area of the social on-premise liquor licensee's premises that is accessible to a
             2266      minor;
             2267          (E) there are one or more separate entrances, exits, and restroom facilities from the
             2268      social on-premise liquor licensee's lounge, bar, or other area for consumption of an alcoholic
             2269      beverage than for:
             2270          (I) the dance or concert hall area; or
             2271          (II) an area of the social on-premise liquor licensee's premises that is accessible to a
             2272      minor; and
             2273          (F) the social on-premise liquor licensee complies with any other restrictions imposed
             2274      by the commission by rule.
             2275          (iii) A minor who is under 18 years of age who is accompanied at all times by a parent
             2276      or legal guardian may be admitted into, use, or be on the premises of a concert hall described in
             2277      Subsection (26)(d)(ii) if:
             2278          (A) the requirements of Subsection (26)(d)(ii) are met; and
             2279          (B) signage, product, and dispensing equipment containing recognition of an alcoholic
             2280      beverage is not visible to the minor.
             2281          (iv) A minor who is under 18 years of age, but who is 14 years of age or older, who is
             2282      not accompanied by a parent or legal guardian may be admitted into, use, or be on the premises
             2283      of a concert hall described in Subsection (26)(d)(ii) if:
             2284          (A) the requirements of Subsections (26)(d)(ii) and (iii) are met; and
             2285          (B) there is no alcoholic beverage sales, service, or consumption on the premises of the
             2286      class 2 social on-premise liquor licensee.
             2287          (v) The commission may suspend or revoke a minor dance or concert hall permit held
             2288      by a class 2 social on-premise liquor licensee and suspend or revoke the license of the class 2
             2289      social on-premise liquor licensee if:
             2290          (A) the social on-premise liquor licensee fails to comply with this Subsection (26)(d);


             2291          (B) the social on-premise liquor licensee sells, serves, or otherwise furnishes an
             2292      alcoholic beverage to a minor;
             2293          (C) the social on-premise liquor licensee or a supervisory or managerial level employee
             2294      of the social on-premise liquor licensee is convicted under Title 58, Chapter 37, Utah
             2295      Controlled Substances Act, on the basis of an activity that occurs on:
             2296          (I) the social on-premise liquor licensee's premises; or
             2297          (II) the dance or concert hall that is located on property that immediately adjoins the
             2298      premises of and is operated by the class 2 social on-premise liquor licensee;
             2299          (D) there are three or more convictions of patrons of the social on-premise liquor
             2300      licensee under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of an activity
             2301      that occurs on:
             2302          (I) the premises of the social on-premise liquor licensee; or
             2303          (II) the dance or concert hall that is located on property that immediately adjoins the
             2304      premises of and is operated by the class 2 social on-premise liquor licensee;
             2305          (E) there is more than one conviction:
             2306          (I) of:
             2307          (Aa) the social on-premise liquor licensee;
             2308          (Bb) an employee of the social on-premise liquor licensee;
             2309          (Cc) an entertainer contracted by the social on-premise liquor licensee; or
             2310          (Dd) a patron of the social on-premise liquor licensee; and
             2311          (II) made on the basis of a lewd act or lewd entertainment prohibited by this title that
             2312      occurs on:
             2313          (Aa) the premises of the social on-premise liquor licensee; or
             2314          (Bb) the dance or concert hall that is located on property that immediately adjoins the
             2315      premises of and is operated by the class 2 social on-premise liquor licensee; or
             2316          (F) the commission finds acts or conduct contrary to the public welfare and morals
             2317      involving lewd acts or lewd entertainment prohibited by this title that occurs on:
             2318          (I) the premises of the social on-premise liquor licensee; or
             2319          (II) the dance or concert hall that is located on property that immediately adjoins the
             2320      premises of and is operated by the class 2 social on-premise liquor licensee.
             2321          (vi) Nothing in this Subsection (26) prohibits a class 2 social on-premise liquor


             2322      licensee from selling, serving, or otherwise furnishing an alcoholic beverage in a dance or
             2323      concert area located on the social on-premise liquor licensee's premises on days and times
             2324      when the social on-premise liquor licensee does not allow a minor into those areas.
             2325          (e) Nothing in this Subsection (26) precludes a local authority from being more
             2326      restrictive of a minor's admittance to, use of, or presence on the premises of a social on-premise
             2327      liquor licensee.
             2328          (27) Notwithstanding that a patron may order an alcoholic beverage without ordering
             2329      food, a social on-premise liquor licensee shall:
             2330          (a) have a variety of food prepared and served in connection with dining
             2331      accommodations; and
             2332          (b) have food available at all times when an alcoholic beverage is sold, served, or
             2333      consumed on the premises of the social on-premise liquor licensee.
             2334          (28) A social on-premise liquor licensee shall comply with Section 32A-1-304.5 .
             2335          Section 18. Section 32A-4-507 is enacted to read:
             2336          32A-4-507. Transition.
             2337          (1) (a) If a private club licensee is a class C private club licensee as of June 30, 2009, it
             2338      renews its license in accordance with Section 32A-5-102 , and it continues to meet the
             2339      qualifications of a class C private club licensee:
             2340          (i) notwithstanding the renewal fee required under Section 32A-5-102 , the class C
             2341      private club licensee shall pay a renewal fee of $1,600; and
             2342          (ii) effective July 1, 2009, the class C private club license is automatically converted to
             2343      a class 1 social on-premise liquor license.
             2344          (b) If a private club licensee is a class D private club licensee as of June 30, 2009, it
             2345      renews it license in accordance with Section 32A-5-102 , and it continues to meet the
             2346      qualifications of a class D private club licensee:
             2347          (i) notwithstanding the renewal fee required under Section 32A-5-102 , the class D
             2348      private club licensee shall pay a renewal fee of $1,600; and
             2349          (ii) effective July 1, 2009, the class D private club license is automatically converted to
             2350      a class 2 social on-premise liquor license.
             2351          (c) Notwithstanding Subsection (1)(a) or (b), if at the time of renewal a class C private
             2352      club licensee or class D private club licensee requests to convert to a different class of social


             2353      on-premise liquor license than that provided in Subsection (1)(a) or (b), the commission may
             2354      approve a change in the class of social on-premise liquor license in accordance with rules made
             2355      by the commission.
             2356          (2) (a) (i) On and after July 1, 2009, the total number of social on-premise liquor
             2357      licenses and private club licenses may not at any time aggregate more than that number
             2358      determined by dividing the population of the state by 7,850.
             2359          (ii) For purposes of this Subsection (2), population shall be determined by:
             2360          (A) the most recent United States decennial or special census; or
             2361          (B) another population determination made by the United States or state governments.
             2362          (b) Subject to Subsection (2)(d), the department shall determine the allocation of the
             2363      number of private club licenses and social on-premise liquor licenses allowed under Subsection
             2364      (2)(a), except that the department may not allocate the licenses in a manner that would result in
             2365      a person who holds a license on June 30, 2009, losing the license solely because of the
             2366      allocation.
             2367          (c) If after the conversions under Subsection (1) and the allocation under Subsection
             2368      (2)(a), there are social on-premise liquor licenses that may be issued by the commission, if a
             2369      restaurant liquor licensee renews its license under this section as of September 30, 2009:
             2370          (i) the restaurant liquor licensee may request converting its license to a class 1 social
             2371      on-premise liquor license;
             2372          (ii) notwithstanding the renewal fee required under Section 32A-4-102 , the restaurant
             2373      liquor licensee shall pay a renewal fee of $1,600; and
             2374          (iii) effective October 1, 2009, if the restaurant liquor licensee qualifies as a class 1
             2375      social on-premise liquor licensee, the department shall automatically convert the restaurant
             2376      liquor license to a class 1 social on-premise liquor license.
             2377          (d) By no later than the November 2009 interim meeting of the Business and Labor
             2378      Interim Committee, the department shall:
             2379          (i) report to the Business and Labor Interim Committee the adjustments required in
             2380      Sections 32A-4-501 and 32A-5-101 , to the number of licenses that may be issued under
             2381      Chapter 4, Part 5, Social On-premise Liquor Licenses, and Chapter 5, Private Club Licenses;
             2382      and
             2383          (ii) recommend legislation to adjust the numbers in Sections 32A-4-501 and


             2384      32A-5-101 .
             2385          (3) A conversion under this section does not require a redetermination of applicable
             2386      proximity requirements.
             2387          Section 19. Section 32A-5-101 is amended to read:
             2388     
CHAPTER 5. PRIVATE CLUB LICENSES

             2389           32A-5-101. Definitions -- Commission's power to license private clubs --
             2390      Limitations.
             2391          (1) As used in this chapter:
             2392          (a) "Class A private club licensee" means a private club that qualifies as a private club
             2393      licensee under Subsection (3)(a)(ii)(A).
             2394          (b) "Class B private club licensee" means a private club that qualifies as a private club
             2395      licensee under Subsection (3)(a)(ii)(B).
             2396          (c) "Private club" means an entity, whether incorporated or unincorporated, that:
             2397          (i) is organized and operated solely for a social, recreational, patriotic, or fraternal
             2398      purpose;
             2399          (ii) has members;
             2400          (iii) limits access to its premises to a member or a guest of the member; and
             2401          (iv) desires to maintain premises upon which an alcoholic beverage may be stored, sold
             2402      to, served to, and consumed by:
             2403          (A) a member; or
             2404          (B) a guest of a member.
             2405          (d) "Private club licensee" means a private club that is licensed under this chapter.
             2406          [(1)] (2) Before a private club may sell or allow the consumption of an alcoholic
             2407      [beverages] beverage on its premises, the private club shall first obtain a license from the
             2408      commission as provided in this chapter.
             2409          [(2)] (3) (a) The commission may grant a private club [licenses to social clubs,
             2410      recreational, athletic, or kindred associations that desire to maintain premises upon which
             2411      alcoholic beverages may be stored, sold, served, and consumed.] license to a private club that:
             2412          [(3) At the time the commission grants a private club license the commission shall
             2413      designate whether the private club license qualifies as a class A, B, C, or D license as defined
             2414      in Subsections (3)(a) through (d).]


             2415          [(a) A "class A licensee" is a private club licensee that:]
             2416          (i) meets the requirements of this chapter; and
             2417          (ii) (A) meets the following requirements for a class A private club license:
             2418          (I) owns, maintains, or operates a [substantial] social or recreational facility in
             2419      conjunction with:
             2420          (Aa) a club house [such as:]; or
             2421          (Bb) another building or space in a building owned or leased by the private club;
             2422          [(A) a golf course; or]
             2423          [(B) a tennis facility;]
             2424          [(iii)] (II) has at least 50% of the total membership having:
             2425          [(A)] (Aa) full voting rights; and
             2426          [(B)] (Bb) an equal share of the equity of the club; and
             2427          [(iv)] (III) if there is more than one class of membership, has at least one class of
             2428      membership that entitles each member in that class to:
             2429          [(A)] (Aa) full voting rights; and
             2430          [(B)] (Bb) an equal share of the equity of the club[.]; or
             2431          [(b) A "class B licensee" is a private club licensee that:]
             2432          [(i) meets the requirements of this chapter;]
             2433          (B) meets the following requirements for a class B private club license:
             2434          [(ii)] (I) has no capital stock;
             2435          [(iii)] (II) exists solely for:
             2436          [(A)] (Aa) the benefit of its members and their beneficiaries; and
             2437          [(B)] (Bb) a lawful social, intellectual, educational, charitable, benevolent, moral,
             2438      fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on
             2439      through voluntary activity of its members in their local lodges;
             2440          [(iv)] (III) has a representative form of government; [and]
             2441          [(v)] (IV) has a lodge system in which:
             2442          [(A)] (Aa) there is a supreme governing body;
             2443          [(B)] (Bb) subordinate to the supreme governing body are local lodges, however
             2444      designated, into which individuals are admitted as members in accordance with the laws of the
             2445      fraternal;


             2446          [(C)] (Cc) the local lodges are required by the laws of the fraternal to hold regular
             2447      meetings at least monthly; and
             2448          [(D)] (Dd) the local lodges regularly engage in one or more programs involving
             2449      member participation to implement the purposes of Subsection [(3)(b)(iii).] (3)(a)(ii)(B)(II);
             2450      and
             2451          [(c) A "class C licensee" is a private club licensee that:]
             2452          [(i) meets the requirements of this chapter;]
             2453          [(ii) is a dining club, as determined by the commission in accordance with Subsection
             2454      (4); and]
             2455          [(iii) maintains at least 50% of its total private club business from the sale of food, not
             2456      including:]
             2457          [(A) mix for alcoholic beverages; or]
             2458          [(B) service charges.]
             2459          [(d) A "class D licensee" is a private club licensee that:]
             2460          [(i) meets the requirements of this chapter; and]
             2461          [(ii) (A) does not meet the requirements of a class A, B, or C license; or]
             2462          [(B) seeks to qualify as a class D licensee.]
             2463          [(4) In determining whether an applicant is a dining club under Subsection (3)(c), the
             2464      commission:]
             2465          [(a) shall determine whether the applicant maintains at least 50% of its total private
             2466      club business from the sale of food, not including:]
             2467          [(i) mix for alcoholic beverages;]
             2468          [(ii) service charges; or]
             2469          [(iii) membership and visitor card fees; and]
             2470          [(b) may consider:]
             2471          [(i) the square footage and seating capacity of the applicant;]
             2472          [(ii) what portion of the square footage and seating capacity will be used for a dining
             2473      area in comparison to the portion that will be used as a bar area;]
             2474          [(iii) whether full meals including appetizers, main courses, and desserts are served;]
             2475          [(iv) whether the applicant will maintain adequate on-premise culinary facilities to
             2476      prepare full meals, except an applicant that is located on the premise of a hotel or resort facility


             2477      may use the culinary facilities of the hotel or resort facility;]
             2478          [(v) whether the entertainment provided at the club is suitable for minors; and]
             2479          [(vi) the club management's ability to manage and operate a dining club including:]
             2480          [(A) management experience;]
             2481          [(B) past dining club or restaurant management experience; and]
             2482          [(C) the type of management scheme employed by the private club.]
             2483          (V) owns or leases a building or space in a building used for lodge activities.
             2484          (b) At the time that the commission grants a private club license the commission shall
             2485      designate whether the private club license qualifies as a class A private club license or a class B
             2486      private club license.
             2487          [(5)] (4) (a) A private club or [any] an officer, director, managing agent, or employee
             2488      of a private club may not store, sell, serve, or permit consumption of an alcoholic [beverages]
             2489      beverage upon the premises of the private club, under a permit issued by local authority or
             2490      otherwise, unless a private club license is first [issued] granted by the commission.
             2491          (b) Violation of this Subsection [(5)] (4) is a class B misdemeanor.
             2492          [(6)] (5) (a) Subject to the other provisions of this Subsection [(6)] (5), the commission
             2493      may [issue] grant private club licenses at places and in numbers as the commission considers
             2494      necessary.
             2495          (b) The total number of private club licenses may not at any time aggregate more than
             2496      that allowed under Section 32A-4-507 , until such time that the number is determined by
             2497      dividing the population of the state by [7,850] the number specified by the Legislature.
             2498          (c) For purposes of this Subsection [(6)] (5), population shall be determined by:
             2499          (i) the most recent United States decennial or special census; or
             2500          (ii) another population determination made by the United States or state governments.
             2501          [(d) (i) The commission may issue seasonal private club licenses to be established in
             2502      areas the commission considers necessary.]
             2503          [(ii) A seasonal private club license shall be for a period of six consecutive months.]
             2504          [(iii) A private club license issued for operation during a summer time period is known
             2505      as a "Seasonal A" private club license. The period of operation for a "Seasonal A" club license
             2506      shall:]
             2507          [(A) begin on May 1; and]


             2508          [(B) end on October 31.]
             2509          [(iv) A private club license issued for operation during a winter time period is known
             2510      as a "Seasonal B" private club license. The period of operation for a "Seasonal B" club license
             2511      shall:]
             2512          [(A) begin on November 1; and]
             2513          [(B) end on April 30.]
             2514          [(v) In determining the number of private club licenses that the commission may issue
             2515      under this section:]
             2516          [(A) a seasonal private club license is counted as 1/2 of one private club license; and]
             2517          [(B) each "Seasonal A" license shall be paired with a "Seasonal B" license.]
             2518          [(e) (i) If the location, design, and construction of a hotel may require more than one
             2519      private club location within the hotel to serve the public convenience, the commission may
             2520      authorize as many as three private club locations within the hotel under one license if:]
             2521          [(A) the hotel has a minimum of 150 guest rooms; and]
             2522          [(B) all locations under the license are:]
             2523          [(I) within the same hotel facility; and]
             2524          [(II) on premises which are managed or operated and owned or leased by the licensee.]
             2525          [(ii)] (d) A facility [other than a hotel] may not have more than one private club
             2526      location under a single private club license.
             2527          [(7)] (6) (a) Except as provided in Subsection [(7)] (6)(b), (c), or (d), the premises of a
             2528      private club license may not be established:
             2529          (i) within 600 feet of a community location, as measured by the method in Subsection
             2530      [(7)] (6)(e); or
             2531          (ii) within 200 feet of a community location, measured in a straight line from the
             2532      nearest entrance of the proposed outlet to the nearest property boundary of the community
             2533      location.
             2534          (b) With respect to the establishment of a private club license, the commission may
             2535      authorize a variance to reduce the proximity requirement of Subsection [(7)] (6)(a)(i) if:
             2536          (i) the local authority grants its written consent to the variance;
             2537          (ii) the commission finds that alternative locations for establishing a private club
             2538      license in the community are limited;


             2539          (iii) a public hearing is held in the city, town, or county, and where practical in the
             2540      neighborhood concerned;
             2541          (iv) after giving full consideration to all of the attending circumstances and the policies
             2542      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2543      license would not be detrimental to the public health, peace, safety, and welfare of the
             2544      community; and
             2545          (v) (A) the community location governing authority gives its written consent to the
             2546      variance; or
             2547          (B) when written consent is not given by the community location governing authority,
             2548      the commission finds that the applicant has established that:
             2549          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2550      within the geographic boundary of the local authority in which the private club licensee is to be
             2551      located;
             2552          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2553      described in Subsection [(7)] (6)(b)(v)(B)(I) other than through the establishment of a private
             2554      club licensee; and
             2555          (III) there is no reasonably viable alternative location within the geographic boundary
             2556      of the local authority in which the private club licensee is to be located for establishing a
             2557      private club license to satisfy the unmet demand described in Subsection [(7)] (6)(b)(v)(B)(I).
             2558          (c) With respect to the establishment of a private club license, the commission may
             2559      authorize a variance that reduces the proximity requirement of Subsection [(7)] (6)(a)(ii) if:
             2560          (i) the community location at issue is:
             2561          (A) a public library; or
             2562          (B) a public park;
             2563          (ii) the local authority grants its written consent to the variance;
             2564          (iii) the commission finds that alternative locations for establishing a private club
             2565      license in the community are limited;
             2566          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2567      neighborhood concerned;
             2568          (v) after giving full consideration to all of the attending circumstances and the policies
             2569      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the


             2570      private club license would not be detrimental to the public health, peace, safety, and welfare of
             2571      the community; and
             2572          (vi) (A) the community location governing authority gives its written consent to the
             2573      variance; or
             2574          (B) when written consent is not given by the community location governing authority,
             2575      the commission finds that the applicant has established that:
             2576          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2577      within the geographic boundary of the local authority in which the private club licensee is to be
             2578      located;
             2579          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2580      described in Subsection [(7)] (6)(c)(vi)(B)(I) other than through the establishment of a private
             2581      club license; and
             2582          (III) there is no reasonably viable alternative location within the geographic boundary
             2583      of the local authority in which the private club licensee is to be located for establishing a
             2584      private club license to satisfy the unmet demand described in Subsection [(7)] (6)(c)(vi)(B)(I).
             2585          (d) With respect to the premises of a private club license [issued] granted by the
             2586      commission that undergoes a change of ownership, the commission may waive or vary the
             2587      proximity requirements of Subsection [(7)] (6)(a) in considering whether to grant a private club
             2588      license to the new owner of the premises if:
             2589          (i) (A) the premises previously received a variance reducing the proximity requirement
             2590      of Subsection [(7)] (6)(a)(i); or
             2591          (B) the premises received a variance reducing the proximity requirement of Subsection
             2592      [(7)] (6)(a)(ii) on or before May 4, 2008; or
             2593          (ii) a variance from proximity requirements was otherwise allowed under this title.
             2594          (e) The 600 foot limitation described in Subsection [(7)] (6)(a)(i) is measured from the
             2595      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             2596      property boundary of the community location.
             2597          [(8)] (7) (a) Nothing in this section prevents the commission from considering the
             2598      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             2599      reaching a decision on whether to [issue] grant a private club license.
             2600          (b) For purposes of this Subsection [(8)] (7), "educational facility" includes:


             2601          (i) a nursery school;
             2602          (ii) infant day care center; and
             2603          (iii) a trade and technical school.
             2604          [(9) If requested by a private club licensee, the commission may approve a change in
             2605      the class of private club license in accordance with rules made by the commission.]
             2606          Section 20. Section 32A-5-102 is amended to read:
             2607           32A-5-102. Application and renewal requirements.
             2608          (1) A private club seeking a [class A, B, C, or D] private club license under this
             2609      chapter shall file a written application with the department in a form prescribed by the
             2610      department. The application shall be accompanied by:
             2611          (a) a nonrefundable $250 application fee;
             2612          (b) an initial license fee of $2,500, which is refundable if a license is not granted;
             2613          (c) written consent of the local authority;
             2614          (d) a copy of the applicant's current business license;
             2615          (e) evidence of proximity to any community location, with proximity requirements
             2616      being governed by Section 32A-5-101 ;
             2617          (f) evidence that the applicant operates a private club where a variety of food is
             2618      prepared and served in connection with dining accommodations;
             2619          (g) a bond as specified by Section 32A-5-106 ;
             2620          (h) a floor plan of the private club premises, including:
             2621          (i) consumption areas; and
             2622          (ii) the area where the applicant proposes to keep and store liquor;
             2623          (i) evidence that the private club is carrying public liability insurance in an amount and
             2624      form satisfactory to the department;
             2625          (j) evidence that the private club is carrying dramshop insurance coverage of at least
             2626      $500,000 per occurrence and $1,000,000 in the aggregate;
             2627          (k) a copy of the private club's bylaws or house rules, and any amendments to those
             2628      documents[, which shall be kept on file with the department at all times];
             2629          (l) a signed consent form stating that the private club and its management will permit
             2630      any authorized representative of the commission, department, or any law enforcement officer
             2631      unrestricted right to enter the private club premises;


             2632          (m) (i) a statement as to whether the private club is seeking to qualify as a class [A, B,
             2633      C, or D] A private club licensee or a class B private club licensee; and
             2634          (ii) evidence that the private club meets the requirements for the classification for
             2635      which the private club is applying;
             2636          (n) in the case of a partnership, corporation, or limited liability company applicant,
             2637      proper verification evidencing that the person or persons signing the private club application
             2638      are authorized to so act on behalf of the partnership, corporation, or limited liability company;
             2639      and
             2640          (o) any other information the commission or department may require.
             2641          (2) (a) The commission may refuse to [issue a] grant a private club license if the
             2642      commission determines that any provisions of the private club's bylaws or house rules, or
             2643      amendments to those documents are not:
             2644          (i) reasonable; and
             2645          (ii) consistent with:
             2646          (A) the declared nature and purpose of the applicant; and
             2647          (B) the purposes of this chapter.
             2648          (b) [Club] A private club's bylaws or house rules shall include provisions respecting
             2649      the following:
             2650          (i) standards of eligibility for members;
             2651          (ii) limitation of members, consistent with the nature and purpose of the private club;
             2652          (iii) the period for which dues are paid, and the date upon which the period expires;
             2653          (iv) provisions for [dropping members] removing a member from the private club
             2654      membership for the nonpayment of dues or other cause; and
             2655          (v) provisions for guests [or visitors, if any, and for the issuance and use of visitor
             2656      cards].
             2657          (c) A private club shall keep its bylaws or house rules, and any amendments to those
             2658      documents, on file with the department at all times.
             2659          (3) (a) [All] A private club [licenses expire] license expires on June 30 of each year.
             2660          (b) A person desiring to renew that person's private club license shall submit by no later
             2661      than May 31:
             2662          (i) a completed renewal application to the department; and


             2663          (ii) a renewal fee [in the following amount:] of $1,600.
             2664          [Gross Cost of Liquor in Previous License Year for the Licensee    Renewal Fee]
             2665          [under $10,000                                $1,000]
             2666          [equals or exceeds $10,000 but less than $25,000                $1,250]
             2667          [equals or exceeds $25,000 but less than $75,000                $1,750]
             2668          [equals or exceeds $75,000                            $2,250]
             2669          (c) Failure to meet the renewal requirements [shall result] results in an automatic
             2670      forfeiture of [the] a private club license effective on the date the existing private club license
             2671      expires.
             2672          (d) A renewal application shall be in a form as prescribed by the department.
             2673          (4) To ensure compliance with Subsection 32A-5-107 [(40)](33), the commission may
             2674      suspend or revoke [any] a private club license if the private club licensee does not immediately
             2675      notify the department of [any] a change in:
             2676          (a) ownership of the private club;
             2677          (b) for a corporate owner, the:
             2678          (i) corporate officers or directors; or
             2679          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2680      corporation; or
             2681          (c) for a limited liability company:
             2682          (i) managers; or
             2683          (ii) members owning at least 20% of the limited liability company.
             2684          Section 21. Section 32A-5-104 is amended to read:
             2685           32A-5-104. Commission and department duties before granting licenses.
             2686          (1) (a) Before a private club license may be granted by the commission, the department
             2687      shall conduct an investigation and may hold public hearings for the purpose of gathering
             2688      information and making recommendations to the commission as to whether or not a private
             2689      club license should be granted.
             2690          (b) The department shall forward the information and recommendations described in
             2691      Subsection (1)(a) to the commission to aid in the commission's determination.
             2692          (2) Before [issuing] granting a private club license, the commission shall:
             2693          (a) determine that:


             2694          (i) the applicant has complied with all basic qualifications and requirements for making
             2695      application for a private club license as provided by Sections 32A-5-102 and 32A-5-103 ; and
             2696          (ii) the application is complete;
             2697          (b) determine whether the applicant qualifies as a class A[, B, C, or D] private club
             2698      licensee or a class B private club licensee;
             2699          (c) consider the locality within which the proposed private club outlet is located
             2700      including:
             2701          (i) physical characteristics such as:
             2702          (A) condition of the premises;
             2703          (B) square footage; and
             2704          (C) parking availability; and
             2705          (ii) operational factors such as:
             2706          [(A) tourist traffic;]
             2707          [(B)] (A) proximity to and density of other state stores, package agencies, and licensed
             2708      outlets;
             2709          [(C)] (B) demographics;
             2710          [(D)] (C) population to be served; and
             2711          [(E)] (D) the extent of and proximity to any community location;
             2712          (d) consider the private club management's ability to manage and operate a private club
             2713      license, including:
             2714          (i) management experience;
             2715          (ii) past retail liquor experience; and
             2716          (iii) the type of management scheme employed by the private club;
             2717          (e) consider the nature or type of private club operation of the proposed [liquor] private
             2718      club licensee, including:
             2719          (i) the type of menu items offered and emphasized;
             2720          (ii) the hours of operation;
             2721          (iii) the seating capacity of the [facility] premises; and
             2722          (iv) the gross sales of food items; and
             2723          (f) consider any other factor or circumstance the commission considers necessary.
             2724          Section 22. Section 32A-5-106 is amended to read:


             2725           32A-5-106. Bond.
             2726          (1) [Each] A private club [liquor] licensee shall post a cash or corporate surety bond in
             2727      the penal sum of $10,000 payable to the department, which the private club licensee has
             2728      procured and must maintain for so long as the private club licensee continues to operate as a
             2729      private club [liquor] licensee.
             2730          (2) The bond shall be in a form approved by the attorney general, conditioned upon
             2731      [the] a private club licensee's faithful compliance with this title and the rules of the
             2732      commission.
             2733          (3) (a) If [the] a $10,000 corporate surety bond is canceled due to the private club
             2734      licensee's negligence, a $300 reinstatement fee may be assessed.
             2735          (b) No part of any cash or corporate bond [so] posted under this section may be
             2736      withdrawn:
             2737          (i) during the period the private club license is in effect[,]; or
             2738          (ii) while revocation proceedings are pending against the private club licensee.
             2739          (c) A bond filed by a private club licensee may be forfeited if the private club license is
             2740      finally revoked.
             2741          Section 23. Section 32A-5-107 is amended to read:
             2742           32A-5-107. Operational restrictions.
             2743          A private club granted a private club license and the employees, management
             2744      personnel, and members of the private club shall comply with the following conditions and
             2745      requirements. Failure to comply may result in a suspension or revocation of the private club
             2746      license or other disciplinary action taken against individual employees or management
             2747      personnel.
             2748          (1) A private club licensee shall have a governing body that:
             2749          (a) consists of three or more members of the private club; and
             2750          (b) holds regular meetings to:
             2751          (i) review membership applications; and
             2752          (ii) conduct other business as required by the bylaws or house rules of the private club.
             2753          (2) (a) A private club licensee may admit an individual as a member only on written
             2754      application signed by the applicant, subject to:
             2755          (i) the applicant paying an application fee [as required by Subsection (4)]; and


             2756          (ii) investigation, vote, and approval of a quorum of the governing body.
             2757          (b) (i) [An] A private club licensee shall record an admission of a member [shall be
             2758      recorded] in the official minutes of a regular meeting of the governing body.
             2759          (ii) [An] A private club licensee shall file an application, whether approved or
             2760      disapproved, [shall be filed] as a part of the official records of the private club licensee.
             2761          [(c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             2762      applicant and immediately accord the applicant temporary privileges of a member until the
             2763      governing body completes its investigation and votes on the application, subject to the
             2764      following conditions:]
             2765          [(i) the applicant shall:]
             2766          [(A) submit a written application; and]
             2767          [(B) pay the application fee required by Subsection (4);]
             2768          [(ii) the governing body votes on the application at its next meeting, which shall take
             2769      place no later than 31 days following the day on which the application is submitted; and]
             2770          [(iii) the applicant's temporary membership privileges terminate if the governing body
             2771      disapproves the application.]
             2772          [(d)] (c) The spouse of a member of [any class of] a private club has the rights and
             2773      privileges of the member:
             2774          (i) to the extent permitted by the bylaws or house rules of the private club; and
             2775          (ii) except to the extent restricted by this title.
             2776          [(e)] (d) [The] A minor child of a member of a [class A] private club has the rights and
             2777      privileges of the member:
             2778          (i) to the extent permitted by the bylaws or house rules of the private club; and
             2779          (ii) except to the extent restricted by this title.
             2780          (3) (a) A private club licensee shall maintain a current and complete membership
             2781      record showing:
             2782          (i) the date of application of a proposed member;
             2783          (ii) a member's address;
             2784          (iii) the date the governing body approved a member's admission;
             2785          (iv) the date initiation fees and dues are assessed and paid; and
             2786          (v) the serial number of the membership card issued to a member.


             2787          (b) A current record shall be kept indicating when a member is [dropped] removed as a
             2788      member or resigns.
             2789          (4) [(a)] A private club licensee shall establish in the private club bylaws or house rules
             2790      application fees and membership dues[:].
             2791          [(i) as established by commission rules; and]
             2792          [(ii) that are collected from all members.]
             2793          [(b) An application fee:]
             2794          [(i) may not be less than $4;]
             2795          [(ii) shall be paid when the applicant applies for membership; and]
             2796          [(iii) at the discretion of the private club, may be credited toward membership dues if
             2797      the governing body approves the applicant as a member.]
             2798          (5) (a) A private club licensee may, in its discretion, allow an individual to be admitted
             2799      to or use the private club premises as a guest [only under] subject to the following conditions:
             2800          (i) the individual is allowed to use the private club premises only to the extent
             2801      permitted by the private club bylaws or house rules;
             2802          [(i) a guest] (ii) the individual must be previously authorized by [one of the following]
             2803      a member of the private club who agrees to host the individual as a guest into the private
             2804      club[:];
             2805          [(A) an active member of the private club; or]
             2806          [(B) a holder of a current visitor card;]
             2807          [(ii) a guest must be known by the guest's host based on a preexisting bonafide business
             2808      or personal relationship with the host before the guest's admittance to the private club;]
             2809          [(iii) a guest must be accompanied by the guest's host for the duration of the guest's visit
             2810      to the private club;]
             2811          [(iv) a guest's host must remain on the private club premises for the duration of the
             2812      guest's visit to the private club;]
             2813          [(v) a guest's host is responsible for the cost of services extended to the guest;]
             2814          [(vi) a guest] (iii) the individual has only those privileges derived from the [guest's]
             2815      individual's host for the duration of the [guest's] individual's visit to the private club; and
             2816          [(vii) an employee of the private club, while on duty, may not act as a host for a guest;]
             2817          [(viii) an employee of the private club, while on duty, may not attempt to locate a


             2818      member or current visitor card holder to serve as a host for a guest with whom the member or
             2819      visitor card holder has no acquaintance based on a preexisting bonafide business or personal
             2820      relationship prior to the guest's arrival at the private club; and]
             2821          [(ix)] (iv) a private club or an employee of the private club may not enter into an
             2822      agreement or arrangement with a private club member [or holder of a current visitor card] to
             2823      indiscriminately host a member of the general public into the private club as a guest.
             2824          (b) Notwithstanding Subsection (5)(a), [previous authorization is not required] an
             2825      individual may be allowed as a guest in a private club without a host if:
             2826          [(i) the private club licensee is a class B private club; and]
             2827          (i) (A) the private club is a class A private club licensee; and
             2828          (B) the individual is a member of a class A private club licensee that has reciprocal
             2829      guest privileges with the class A private club licensee for which the individual is a guest; or
             2830          (ii) (A) the private club is a class B private club licensee; and
             2831          [(ii)] (B) the [guest] individual is a member of the same fraternal organization as the
             2832      class B private club licensee for which the individual is a guest.
             2833          [(6) A private club may, in its discretion, issue a visitor card to allow an individual to
             2834      enter and use the private club premises on a temporary basis under the following conditions:]
             2835          [(a) a visitor card shall be issued for a period not to exceed three weeks;]
             2836          [(b) a fee of not less than $4 shall be assessed for a visitor card that is issued;]
             2837          [(c) a visitor card may not be issued to a minor;]
             2838          [(d) a holder of a visitor card may not host more than seven guests at one time;]
             2839          [(e) a visitor card issued shall include:]
             2840          [(i) the visitor's full name and signature;]
             2841          [(ii) the date the visitor card is issued;]
             2842          [(iii) the date the visitor card expires;]
             2843          [(iv) the club's name; and]
             2844          [(v) the serial number of the visitor card; and]
             2845          [(f) (i) the private club shall maintain a current record of the issuance of a visitor card
             2846      on the private club premises; and]
             2847          [(ii) the record described in Subsection (6)(f)(i) shall:]
             2848          [(A) be available for inspection by the department; and]


             2849          [(B) include:]
             2850          [(I) the name of the person to whom the visitor card is issued;]
             2851          [(II) the date the visitor card is issued;]
             2852          [(III) the date the visitor card expires; and]
             2853          [(IV) the serial number of the visitor card.]
             2854          [(7)] (6) A private club licensee may not sell an alcoholic beverage to or allow a patron
             2855      to be admitted to or use the private club premises other than:
             2856          (a) a member; or
             2857          [(b) a visitor who holds a valid visitor card issued under Subsection (6); or]
             2858          [(c)] (b) a guest of[: (i)] a member[; or].
             2859          [(ii) a holder of a valid visitor card.]
             2860          [(8)] (7) (a) A minor may not be:
             2861          [(i)] (i) a member, officer, director, or trustee of a private club; or
             2862          [(ii) issued a visitor card;]
             2863          [(iii)] (ii) admitted into, use, or be on the premises of a lounge or bar area, as defined
             2864      by commission rule, of a private club [except to the extent authorized under Subsection
             2865      (8)(c)(ii);] licensee.
             2866          [(iv) admitted into, use, or be on the premises of a class D private club:]
             2867          [(A) that operates as a sexually oriented business as defined by local ordinance; or]
             2868          [(B) when a sexually oriented entertainer is performing on the premises; or]
             2869          [(v) admitted into, use, or be on the premises of a class D private club except to the
             2870      extent authorized under Subsections (8)(b) through (g).]
             2871          [(b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
             2872      club, a minor may be admitted into, use, or be on the premises of a class D private club under
             2873      the following circumstances:]
             2874          [(i) during a period when no alcoholic beverages are sold, served, otherwise furnished,
             2875      or consumed on the premises, but in no event later than 1 p.m.;]
             2876          [(ii) when accompanied at all times by a member or holder of a current visitor card
             2877      who is the minor's parent, legal guardian, or spouse; and]
             2878          [(iii) the private club has a full kitchen and is licensed by the local jurisdiction as a
             2879      food service provider.]


             2880          [(c) A class D private club may employ a minor on the premises of the private club if:]
             2881          [(i) the parent or legal guardian of the minor owns or operates the class D private club;
             2882      or]
             2883          [(ii) the minor performs maintenance and cleaning services during the hours when the
             2884      private club is not open for business.]
             2885          [(d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be
             2886      admitted into, use, or be on the premises of a dance or concert hall if:]
             2887          [(A) the dance or concert hall is located:]
             2888          [(I) on the premises of a class D private club; or]
             2889          [(II) on the property that immediately adjoins the premises of and is operated by a class
             2890      D private club; and]
             2891          [(B) the commission issues the class D private club a permit to operate a minor dance
             2892      or concert hall based on the criteria described in Subsection (8)(d)(iii).]
             2893          [(ii) If the dance or concert hall is located on the premises of a class D private club, a
             2894      minor must be properly hosted in accordance with Subsection (5) by:]
             2895          [(A) a member; or]
             2896          [(B) a holder of a current visitor card.]
             2897          [(iii) The commission may issue a minor dance or concert hall permit if:]
             2898          [(A) the private club's lounge, bar, and alcoholic beverage consumption area is:]
             2899          [(I) not accessible to a minor;]
             2900          [(II) clearly defined; and]
             2901          [(III) separated from the dance or concert hall area by one or more walls, multiple floor
             2902      levels, or other substantial physical barriers;]
             2903          [(B) a bar or dispensing area is not visible to a minor;]
             2904          [(C) consumption of an alcoholic beverage may not occur in:]
             2905          [(I) the dance or concert hall area; or]
             2906          [(II) an area of the private club accessible to a minor;]
             2907          [(D) the private club maintains sufficient security personnel to prevent the passing of
             2908      beverages from the private club's lounge, bar, or an alcoholic beverage consumption area to:]
             2909          [(I) the dance or concert hall area; or]
             2910          [(II) an area of the private club accessible to a minor;]


             2911          [(E) there are one or more separate entrances, exits, and restroom facilities from the
             2912      private club's lounge, bar, and alcoholic beverage consumption areas than for:]
             2913          [(I) the dance or concert hall area; or]
             2914          [(II) an area accessible to a minor; and]
             2915          [(F) the private club complies with any other restrictions imposed by the commission
             2916      by rule.]
             2917          [(e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             2918      guardian who is a member or holder of a current visitor card may be admitted into, use, or be
             2919      on the premises of a concert hall described in Subsection (8)(d)(i) if:]
             2920          [(i) the requirements of Subsection (8)(d) are met; and]
             2921          [(ii) signage, product, and dispensing equipment containing recognition of an alcoholic
             2922      beverage is not visible to the minor.]
             2923          [(f) A minor under 18 years of age but who is 14 years of age or older who is not
             2924      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
             2925      a concert hall described in Subsection (8)(d)(i) if:]
             2926          [(i) the requirements of Subsections (8)(d) and (8)(e)(ii) are met; and]
             2927          [(ii) there is no alcoholic beverage, sales, service, or consumption on the premises of
             2928      the class D private club.]
             2929          [(g) The commission may suspend or revoke a minor dance or concert permit issued to
             2930      a class D private club and suspend or revoke the license of the class D private club if:]
             2931          [(i) the private club fails to comply with the restrictions in Subsection (8)(d), (e), or
             2932      (f);]
             2933          [(ii) the private club sells, serves, or otherwise furnishes an alcoholic beverage to a
             2934      minor;]
             2935          [(iii) the private club licensee or a supervisory or managerial level employee of the
             2936      private club licensee is convicted under Title 58, Chapter 37, Utah Controlled Substances Act,
             2937      on the basis of an activity that occurs on:]
             2938          [(A) the licensed premises; or]
             2939          [(B) the dance or concert hall that is located on property that immediately adjoins the
             2940      premises of and is operated by the class D private club;]
             2941          [(iv) there are three or more convictions of patrons of the private club under Title 58,


             2942      Chapter 37, Utah Controlled Substances Act, based on activities that occur on:]
             2943          [(A) the licensed premises; or]
             2944          [(B) the dance or concert hall that is located on property that immediately adjoins the
             2945      premises of and is operated by the class D private club;]
             2946          [(v) there is more than one conviction:]
             2947          [(A) of:]
             2948          [(I) the private club licensee;]
             2949          [(II) an employee of the private club licensee;]
             2950          [(III) an entertainer contracted by the private club licensee; or]
             2951          [(IV) a patron of the private club licensee; and]
             2952          [(B) made on the basis of a lewd act or lewd entertainment prohibited by this title that
             2953      occurs on:]
             2954          [(I) the licensed premises; or]
             2955          [(II) the dance or concert hall that is located on property that immediately adjoins the
             2956      premises of and is operated by the class D private club; or]
             2957          [(vi) the commission finds acts or conduct contrary to the public welfare and morals
             2958      involving lewd acts or lewd entertainment prohibited by this title that occurs on:]
             2959          [(A) the licensed premises; or]
             2960          [(B) the dance or concert hall that is located on property that immediately adjoins the
             2961      premises of and is operated by the class D private club.]
             2962          [(h) Nothing in this Subsection (8) prohibits a class D private club from selling,
             2963      serving, or otherwise furnishing an alcoholic beverage in a dance or concert area located on the
             2964      private club premises on days and times when the private club does not allow a minor into
             2965      those areas.]
             2966          [(i)] (b) Nothing in [Subsections (8)(a) through (g)] this Subsection (7) precludes a
             2967      local authority from being more restrictive of a minor's admittance to, use of, or presence on
             2968      the premises of a private club.
             2969          [(9)] (8) (a) A private club licensee shall maintain an expense ledger or record showing
             2970      in detail all expenditures separated by payments for:
             2971          (i) malt or brewed beverages;
             2972          (ii) liquor;


             2973          (iii) food;
             2974          (iv) detailed payroll;
             2975          (v) entertainment;
             2976          (vi) rent;
             2977          (vii) utilities;
             2978          (viii) supplies; and
             2979          (ix) other expenditures.
             2980          (b) A private club licensee shall keep a record required by this Subsection [(9)] (8):
             2981          (i) in a form approved by the department; and
             2982          (ii) balanced each month.
             2983          (c) An expenditure shall be supported by:
             2984          (i) a delivery ticket;
             2985          (ii) an invoice;
             2986          (iii) a receipted bill;
             2987          (iv) a canceled check;
             2988          (v) a petty cash voucher; or
             2989          (vi) other sustaining datum or memorandum.
             2990          (d) [An] A private club licensee shall maintain an invoice or receipted bill for the
             2991      current calendar or fiscal year documenting a purchase made by the private club [shall be
             2992      maintained].
             2993          [(10) (a)] (e) (i) A private club licensee shall maintain a minute book that is posted
             2994      currently by the private club.
             2995          [(b)] (ii) The minute book required by this Subsection [(10)] (8)(e) shall contain the
             2996      minutes of a regular or special meeting of the governing body.
             2997          [(c)] (f) A private club licensee shall maintain a membership list.
             2998          [(11) (a)] (g) A private club licensee shall maintain a current copy of the private club's
             2999      current bylaws and current house rules.
             3000          [(b) A change in the bylaws or house rules:]
             3001          [(i) is not effective unless submitted to the department within ten days after adoption;
             3002      and]
             3003          [(ii) becomes effective 15 days after received by the department unless rejected by the


             3004      department before the expiration of the 15-day period.]
             3005          [(12)] (h) A private club licensee shall maintain accounting and other records and
             3006      documents as the department may require.
             3007          [(13)] (i) A private club licensee or person acting for the private club licensee, who
             3008      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of
             3009      account or other document of the private club licensee required to be made, maintained, or
             3010      preserved by this title or the rules of the commission for the purpose of deceiving the
             3011      commission, the department, or an official or employee of the commission or department, is
             3012      subject to:
             3013          [(a)] (i) the suspension or revocation of the private club's license; and
             3014          [(b)] (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             3015          [(14) (a)] (j) A private club licensee shall maintain and keep a record required by this
             3016      section and a book, record, receipt, or disbursement maintained or used by the private club
             3017      licensee, as the department requires, for a minimum period of three years.
             3018          [(b)] (k) A record, book, receipt, or disbursement of a private club licensee is subject to
             3019      inspection by an authorized representative of the commission and the department.
             3020          [(c)] (l) A private club licensee shall allow the department, through an auditor or
             3021      examiner of the department, to audit the records of the private club licensee at times the
             3022      department considers advisable.
             3023          [(d)] (m) The department shall audit the records of the private club licensee at least
             3024      once annually.
             3025          [(15)] (9) (a) A private club licensee shall own or lease premises suitable for the
             3026      private club's activities.
             3027          [(16) (a)] (b) A private club licensee may not maintain [facilities] its premises in a
             3028      manner that barricades or conceals the private club licensee's operation.
             3029          [(b)] (c) A member of the commission, authorized department personnel, or a peace
             3030      officer shall, upon presentation of credentials, be admitted immediately to the private club and
             3031      permitted without hindrance or delay to inspect completely the entire private club premises and
             3032      the books and records of the private club licensee, at any time during which the private club
             3033      licensee is open for the transaction of business to its members.
             3034          [(17)] (10) Public advertising related to a private club licensee by the following shall


             3035      clearly identify a private club as being "a private club for members":
             3036          (a) the private club licensee;
             3037          (b) an employee or agent of the private club licensee; or
             3038          (c) a person under a contract or agreement with the private club licensee.
             3039          [(18)] (11) A private club licensee must have food available at all times when an
             3040      alcoholic beverage is sold, served, or consumed on the premises.
             3041          [(19)] (12) (a) [Liquor] A private club licensee may not [be purchased by a private club
             3042      licensee] purchase liquor except from a state store or package agency.
             3043          (b) Liquor purchased from a state store or package agency may be transported by [the]
             3044      a private club licensee from the place of purchase to the licensed premises of the private club
             3045      licensee.
             3046          (c) Payment for liquor shall be made in accordance with rules established by the
             3047      commission.
             3048          [(20)] (13) A private club licensee may sell or provide a primary spirituous liquor only
             3049      in a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
             3050      dispensing system approved by the department in accordance with commission rules adopted
             3051      under this title, except that:
             3052          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             3053      system if used as a secondary flavoring ingredient in a beverage subject to the following
             3054      restrictions:
             3055          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             3056      a primary spirituous liquor;
             3057          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             3058          (iii) the private club licensee shall designate a location where flavorings are stored on
             3059