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H.B. 349

             1     

HEAVY BEER AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis Oda

             5     
Senate Sponsor: Jon J. Greiner

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


             1578      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             1579      the department may require.
             1580          (e) [Any] A limited restaurant licensee or person acting for the restaurant, who
             1581      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of
             1582      account or other document of the limited restaurant that is required to be made, maintained, or
             1583      preserved by this title or the rules of the commission for the purpose of deceiving the
             1584      commission, the department, or an official or employee of the commission or department, is
             1585      subject to:
             1586          (i) the suspension or revocation of the limited restaurant's license; and
             1587          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1588          (22) (a) A limited restaurant licensee may not close or cease operation for a period
             1589      longer than 240 hours, unless:
             1590          (i) the limited restaurant licensee notifies the department in writing at least seven days
             1591      before the day on which the limited restaurant licensee closes or ceases operation; and
             1592          (ii) the closure or cessation of operation is first approved by the department.
             1593          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
             1594      restaurant licensee shall immediately notify the department by telephone.
             1595          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             1596      cessation of operation for a period not to exceed 60 days.
             1597          (ii) The department may extend the initial period an additional 30 days upon:
             1598          (A) written request of the limited restaurant licensee; and
             1599          (B) a showing of good cause.
             1600          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1601      commission approval.
             1602          (d) A notice required by Subsection (22)(a) shall include:
             1603          (i) the dates of closure or cessation of operation;
             1604          (ii) the reason for the closure or cessation of operation; and
             1605          (iii) the date on which the limited restaurant licensee will reopen or resume operation.
             1606          (e) Failure of the limited restaurant licensee to provide notice and to obtain department
             1607      authorization before closure or cessation of operation results in an automatic forfeiture of:
             1608          (i) the limited restaurant license; and


             1609          (ii) the unused portion of the license fee for the remainder of the license year effective
             1610      immediately.
             1611          (f) Failure of the limited restaurant licensee to reopen or resume operation by the
             1612      approved date results in an automatic forfeiture of:
             1613          (i) the limited restaurant license; and
             1614          (ii) the unused portion of the license fee for the remainder of the license year.
             1615          (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
             1616      business from the sale of food, which does not include service charges.
             1617          (24) A limited restaurant license may not be transferred from one location to another,
             1618      without prior written approval of the commission.
             1619          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             1620      give, or attempt in any way to dispose of the limited restaurant license to another person
             1621      whether for monetary gain or not.
             1622          (b) A limited restaurant license has no monetary value for the purpose of any type of
             1623      disposition.
             1624          (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
             1625      establishment shall keep a written beverage tab for each table or group that orders or consumes
             1626      an alcoholic beverage on the premises.
             1627          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
             1628      alcoholic beverage ordered or consumed.
             1629          (27) A limited restaurant licensee may not make a person's willingness to serve an
             1630      alcoholic beverage a condition of employment as a server with the limited restaurant.
             1631          (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
             1632      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             1633      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             1634          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1635      58-37-2 ; or
             1636          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1637      Section 58-37a-3 .
             1638          Section 9. Section 32A-4-406 is amended to read:
             1639           32A-4-406. Operational restrictions.


             1640          A person granted an on-premise banquet license and the employees and management
             1641      personnel of the on-premise banquet licensee shall comply with this title, the rules of the
             1642      commission, and the following conditions and requirements. Failure to comply may result in a
             1643      suspension or revocation of the on-premise banquet license or other disciplinary action taken
             1644      against individual employees or management personnel.
             1645          (1) A person involved in the sale or service of an alcoholic beverage under the
             1646      on-premise banquet license shall:
             1647          (a) be under the supervision and direction of the on-premise banquet licensee; and
             1648          (b) complete the seminar provided for in Section 62A-15-401 .
             1649          (2) (a) [Liquor] Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling
             1650      Act, liquor may not be purchased by an on-premise banquet licensee except from a state store
             1651      or package agency.
             1652          (b) Liquor purchased from a state store or package agency may be transported by the
             1653      on-premise banquet licensee from the place of purchase to the licensed premises.
             1654          (c) Payment for liquor shall be made in accordance with rules established by the
             1655      commission.
             1656          (3) An alcoholic beverage may be sold or provided at a banquet by an on-premise
             1657      banquet licensee subject to the restrictions set forth in this Subsection (3).
             1658          (a) An on-premise banquet licensee may sell or provide a primary spirituous liquor
             1659      only in a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated
             1660      metered dispensing system approved by the department in accordance with commission rules
             1661      adopted under this title, except that:
             1662          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1663      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1664      restrictions:
             1665          (A) the secondary ingredient may be dispensed only in conjunction with the purchase
             1666      of a primary spirituous liquor;
             1667          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1668          (C) the on-premise banquet licensee shall designate a location where flavorings are
             1669      stored on the floor plan provided to the department; and
             1670          (D) a flavoring container shall be plainly and conspicuously labeled "flavorings";


             1671          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1672      system if used:
             1673          (A) as a flavoring on a dessert; and
             1674          (B) in the preparation of a flaming food dish, drink, or dessert;
             1675          (iii) an attendee may have no more than 2.5 ounces of spirituous liquor at a time before
             1676      the attendee; and
             1677          (iv) an attendee may have no more than one spirituous liquor drink at a time before the
             1678      attendee.
             1679          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             1680      exceed five ounces per glass or individual portion.
             1681          (B) An individual portion may be served to an attendee in more than one glass as long
             1682      as the total amount of wine does not exceed five ounces.
             1683          (C) An individual portion of wine is considered to be one alcoholic beverage under
             1684      Subsection (5)(c).
             1685          (ii) Wine may be sold and served in a container not exceeding 1.5 liters at a price fixed
             1686      by the commission.
             1687          (iii) A wine service may be performed and a service charge assessed by the on-premise
             1688      banquet licensee as authorized by commission rule for wine purchased on the banquet
             1689      premises.
             1690          [(c) (i) Heavy beer may be served in an original container not exceeding one liter at a
             1691      price fixed by the commission.]
             1692          (c) (i) An on-premise banquet licensee may serve heavy beer:
             1693          (A) at a price fixed by the commission; and
             1694          (B) (I) in an original container not exceeding one liter; or
             1695          (II) subject to Subsection (3)(c)(iii):
             1696          (Aa) in an open container; and
             1697          (Bb) on draft.
             1698          (ii) A flavored malt beverage may be served in an original container not exceeding one
             1699      liter at a price fixed by the commission.
             1700          (iii) An on-premise banquet licensee shall sell heavy beer sold pursuant to Subsection
             1701      (3)(c)(i)(B)(II) in a size of container that does not exceed two liters, except that heavy beer may


             1702      not be sold to an individual patron in a size of container that exceeds one liter.
             1703          [(iii)] (iv) A service charge may be assessed by the on-premise banquet licensee as
             1704      authorized by commission rule for heavy beer or a flavored malt beverage purchased on the
             1705      banquet premises.
             1706          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             1707      on-premise consumption:
             1708          (A) in an open container; and
             1709          (B) on draft.
             1710          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             1711      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             1712      size that exceeds one liter.
             1713          (4) An alcoholic beverage may not be stored, served, or sold in [any] a place other than
             1714      as designated in the on-premise banquet licensee's application, except that additional locations
             1715      in or on the premises of an on-premise banquet licensee may be approved in accordance with
             1716      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             1717          (5) (a) An attendee may only make an alcoholic beverage purchase from and be served
             1718      by a person employed, designated, and trained by the on-premise banquet licensee to sell and
             1719      serve an alcoholic beverage.
             1720          (b) Notwithstanding Subsection (5)(a), an attendee who purchases bottled wine from
             1721      an employee of the on-premise banquet licensee may thereafter serve wine from the bottle to
             1722      the attendee or others at the attendee's table.
             1723          (c) An attendee may have no more than two alcoholic beverages of any kind at a time
             1724      before the attendee, subject to the limitation of Subsection (3)(a)(iv).
             1725          (6) The alcoholic beverage storage area shall remain locked at all times other than
             1726      those hours and days when alcoholic beverage sales are authorized by law.
             1727          (7) An alcoholic beverage may be offered for sale, sold, served, or otherwise furnished
             1728      by an on-premise banquet licensee from 10 a.m. to 1 a.m. seven days a week:
             1729          (a) at a banquet; or
             1730          (b) in connection with room service.
             1731          (8) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             1732          (a) minor;


             1733          (b) person actually, apparently, or obviously intoxicated;
             1734          (c) known habitual drunkard; or
             1735          (d) known interdicted person.
             1736          (9) (a) (i) Liquor may be sold only at a price fixed by the commission.
             1737          (ii) Liquor may not be sold at a discount price on any date or at any time.
             1738          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             1739      beverage to the on-premise banquet licensee.
             1740          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1741      over consumption or intoxication.
             1742          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1743      hours of the on-premise banquet licensee's business day such as a "happy hour."
             1744          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             1745      alcoholic beverage.
             1746          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             1747      offering free alcoholic beverages to the general public.
             1748          (10) An alcoholic beverage may not be purchased for an attendee by:
             1749          (a) the on-premise banquet licensee; or
             1750          (b) an employee or agent of the on-premise banquet licensee.
             1751          (11) An attendee of a banquet may not bring an alcoholic beverage into or onto, or
             1752      remove an alcoholic beverage from the premises of a banquet.
             1753          (12) (a) Except as otherwise provided in this title, the sale and service of an alcoholic
             1754      beverage by an on-premise banquet licensee at a banquet shall be made only for consumption at
             1755      the location of the banquet.
             1756          (b) The host of a banquet, an attendee, or a person other than the on-premise banquet
             1757      licensee or an employee of the on-premise banquet licensee, may not remove an alcoholic
             1758      beverage from the premises of the banquet.
             1759          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             1760      when an alcoholic beverage is sold, served, or consumed at the banquet.
             1761          (14) (a) An on-premise banquet licensee may not leave an unsold alcoholic beverage at
             1762      the banquet following the conclusion of the banquet.
             1763          (b) At the conclusion of a banquet, the on-premise banquet licensee or an employee of


             1764      the on-premise banquet licensee, shall:
             1765          (i) destroy an opened and unused alcoholic beverage that is not saleable, under
             1766      conditions established by the department; and
             1767          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             1768          (A) opened and unused alcoholic beverage that is saleable; and
             1769          (B) unopened container of an alcoholic beverage.
             1770          (15) Except as provided in Subsection (14), an open or sealed container of an alcoholic
             1771      beverage not sold or consumed at a banquet:
             1772          (a) shall be stored by the on-premise banquet licensee in the on-premise banquet
             1773      licensee's approved locked storage area; and
             1774          (b) may be used at more than one banquet.
             1775          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,
             1776      or otherwise furnish an alcoholic beverage in connection with the on-premise banquet
             1777      licensee's banquet and room service activities.
             1778          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             1779          (a) consume an alcoholic beverage; or
             1780          (b) be intoxicated.
             1781          (18) An on-premise banquet licensee shall prominently display at a banquet at which
             1782      an alcoholic beverage is sold or served:
             1783          (a) a copy of the licensee's on-premise banquet license; and
             1784          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1785      drugs is a serious crime that is prosecuted aggressively in Utah."
             1786          (19) An on-premise banquet licensee may not on the premises of the hotel, resort
             1787      facility, sports center, or convention center:
             1788          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1789      Chapter 10, Part 11, Gambling;
             1790          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1791      Part 11, Gambling; or
             1792          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1793      the risking of something of value for a return or for an outcome when the return or outcome is
             1794      based upon an element of chance, excluding the playing of an amusement device that confers


             1795      only an immediate and unrecorded right of replay not exchangeable for value.
             1796          (20) (a) An on-premise banquet licensee shall maintain accounting and such other
             1797      records and documents as the commission or department may require.
             1798          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             1799      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an
             1800      entry in a book of account or other document of the on-premise banquet licensee required to be
             1801      made, maintained, or preserved by this title or the rules of the commission for the purpose of
             1802      deceiving the commission, the department, or an official or employee of the commission or
             1803      department, is subject to:
             1804          (i) the suspension or revocation of the on-premise banquet license; and
             1805          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1806          (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
             1807      licensee shall provide the department with advance notice of a scheduled banquet in
             1808      accordance with rules made by the commission in accordance with Title 63G, Chapter 3, Utah
             1809      Administrative Rulemaking Act.
             1810          (b) The advance notice required by Subsection (21)(a) is required to provide any of the
             1811      following the opportunity to conduct a random inspection of a banquet:
             1812          (i) an authorized representative of the commission or the department; or
             1813          (ii) a law enforcement officer.
             1814          (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
             1815      banquet gross receipts from the sale of food, not including:
             1816          (a) mix for an alcoholic beverage; and
             1817          (b) a charge in connection with the service of an alcoholic beverage.
             1818          (23) A person may not transfer an on-premise banquet license from one business
             1819      location to another without prior written approval of the commission.
             1820          (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
             1821      barter, give, or attempt in any way to dispose of the license to another person, whether for
             1822      monetary gain or not.
             1823          (b) An on-premise banquet license has no monetary value for the purpose of any type
             1824      of disposition.
             1825          (25) (a) Room service of an alcoholic beverage to a guest room of a hotel or resort


             1826      facility shall be provided in person by an on-premise banquet licensee employee only to an
             1827      adult guest in the guest room.
             1828          (b) An alcoholic beverage may not be left outside a guest room for retrieval by a guest.
             1829          (c) An on-premise banquet licensee may only provide an alcoholic beverage for room
             1830      service in a sealed container.
             1831          (26) An on-premise banquet licensee or an employee of the on-premise banquet
             1832      licensee may not knowingly allow a person on a banquet location of a hotel, resort facility,
             1833      sports center, or convention center to, in violation of Title 58, Chapter 37, Utah Controlled
             1834      Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             1835          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1836      58-37-2 ; or
             1837          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1838      Section 58-37a-3 .
             1839          Section 10. Section 32A-5-107 is amended to read:
             1840           32A-5-107. Operational restrictions.
             1841          A club granted a private club license and the employees, management personnel, and
             1842      members of the club shall comply with the following conditions and requirements. Failure to
             1843      comply may result in a suspension or revocation of the private club license or other disciplinary
             1844      action taken against individual employees or management personnel.
             1845          (1) A private club shall have a governing body that:
             1846          (a) consists of three or more members of the private club; and
             1847          (b) holds regular meetings to:
             1848          (i) review membership applications; and
             1849          (ii) conduct other business as required by the bylaws or house rules of the private club.
             1850          (2) (a) A private club may admit an individual as a member only on written application
             1851      signed by the applicant, subject to:
             1852          (i) the applicant paying an application fee as required by Subsection (4); and
             1853          (ii) investigation, vote, and approval of a quorum of the governing body.
             1854          (b) (i) An admission of a member shall be recorded in the official minutes of a regular
             1855      meeting of the governing body.
             1856          (ii) An application, whether approved or disapproved, shall be filed as a part of the


             1857      official records of the private club licensee.
             1858          (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             1859      applicant and immediately accord the applicant temporary privileges of a member until the
             1860      governing body completes its investigation and votes on the application, subject to the
             1861      following conditions:
             1862          (i) the applicant shall:
             1863          (A) submit a written application; and
             1864          (B) pay the application fee required by Subsection (4);
             1865          (ii) the governing body votes on the application at its next meeting, which shall take
             1866      place no later than 31 days following the day on which the application is submitted; and
             1867          (iii) the applicant's temporary membership privileges terminate if the governing body
             1868      disapproves the application.
             1869          (d) The spouse of a member of any class of private club has the rights and privileges of
             1870      the member:
             1871          (i) to the extent permitted by the bylaws or house rules of the private club; and
             1872          (ii) except to the extent restricted by this title.
             1873          (e) The minor child of a member of a class A private club has the rights and privileges
             1874      of the member:
             1875          (i) to the extent permitted by the bylaws or house rules of the private club; and
             1876          (ii) except to the extent restricted by this title.
             1877          (3) (a) A private club shall maintain a current and complete membership record
             1878      showing:
             1879          (i) the date of application of a proposed member;
             1880          (ii) a member's address;
             1881          (iii) the date the governing body approved a member's admission;
             1882          (iv) the date initiation fees and dues are assessed and paid; and
             1883          (v) the serial number of the membership card issued to a member.
             1884          (b) A current record shall be kept indicating when a member is dropped or resigns.
             1885          (4) (a) A private club shall establish in the private club bylaws or house rules
             1886      application fees and membership dues:
             1887          (i) as established by commission rules; and


             1888          (ii) that are collected from all members.
             1889          (b) An application fee:
             1890          (i) may not be less than $4;
             1891          (ii) shall be paid when the applicant applies for membership; and
             1892          (iii) at the discretion of the private club, may be credited toward membership dues if
             1893      the governing body approves the applicant as a member.
             1894          (5) (a) A private club may, in its discretion, allow an individual to be admitted to or use
             1895      the private club premises as a guest only under the following conditions:
             1896          (i) a guest must be previously authorized by one of the following who agrees to host
             1897      the guest into the private club:
             1898          (A) an active member of the private club; or
             1899          (B) a holder of a current visitor card;
             1900          (ii) a guest must be known by the guest's host based on a preexisting bonafide business
             1901      or personal relationship with the host before the guest's admittance to the private club;
             1902          (iii) a guest must be accompanied by the guest's host for the duration of the guest's visit
             1903      to the private club;
             1904          (iv) a guest's host must remain on the private club premises for the duration of the
             1905      guest's visit to the private club;
             1906          (v) a guest's host is responsible for the cost of services extended to the guest;
             1907          (vi) a guest has only those privileges derived from the guest's host for the duration of
             1908      the guest's visit to the private club;
             1909          (vii) an employee of the private club, while on duty, may not act as a host for a guest;
             1910          (viii) an employee of the private club, while on duty, may not attempt to locate a
             1911      member or current visitor card holder to serve as a host for a guest with whom the member or
             1912      visitor card holder has no acquaintance based on a preexisting bonafide business or personal
             1913      relationship prior to the guest's arrival at the private club; and
             1914          (ix) a private club or an employee of the private club may not enter into an agreement
             1915      or arrangement with a club member or holder of a current visitor card to indiscriminately host a
             1916      member of the general public into the private club as a guest.
             1917          (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
             1918          (i) the private club licensee is a class B private club; and


             1919          (ii) the guest is a member of the same fraternal organization as the private club
             1920      licensee.
             1921          (6) A private club may, in its discretion, issue a visitor card to allow an individual to
             1922      enter and use the private club premises on a temporary basis under the following conditions:
             1923          (a) a visitor card shall be issued for a period not to exceed three weeks;
             1924          (b) a fee of not less than $4 shall be assessed for a visitor card that is issued;
             1925          (c) a visitor card may not be issued to a minor;
             1926          (d) a holder of a visitor card may not host more than seven guests at one time;
             1927          (e) a visitor card issued shall include:
             1928          (i) the visitor's full name and signature;
             1929          (ii) the date the visitor card is issued;
             1930          (iii) the date the visitor card expires;
             1931          (iv) the club's name; and
             1932          (v) the serial number of the visitor card; and
             1933          (f) (i) the private club shall maintain a current record of the issuance of a visitor card
             1934      on the private club premises; and
             1935          (ii) the record described in Subsection (6)(f)(i) shall:
             1936          (A) be available for inspection by the department; and
             1937          (B) include:
             1938          (I) the name of the person to whom the visitor card is issued;
             1939          (II) the date the visitor card is issued;
             1940          (III) the date the visitor card expires; and
             1941          (IV) the serial number of the visitor card.
             1942          (7) A private club may not sell an alcoholic beverage to or allow a patron to be
             1943      admitted to or use the private club premises other than:
             1944          (a) a member;
             1945          (b) a visitor who holds a valid visitor card issued under Subsection (6); or
             1946          (c) a guest of:
             1947          (i) a member; or
             1948          (ii) a holder of a valid visitor card.
             1949          (8) (a) A minor may not be:


             1950          (i) a member, officer, director, or trustee of a private club;
             1951          (ii) issued a visitor card;
             1952          (iii) admitted into, use, or be on the premises of a lounge or bar area, as defined by
             1953      commission rule, of a private club except to the extent authorized under Subsection (8)(c)(ii);
             1954          (iv) admitted into, use, or be on the premises of a class D private club:
             1955          (A) that operates as a sexually oriented business as defined by local ordinance; or
             1956          (B) when a sexually oriented entertainer is performing on the premises; or
             1957          (v) admitted into, use, or be on the premises of a class D private club except to the
             1958      extent authorized under Subsections (8)(b) through (g).
             1959          (b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
             1960      club, a minor may be admitted into, use, or be on the premises of a class D private club under
             1961      the following circumstances:
             1962          (i) during a period when no alcoholic [beverages are] beverage is sold, served,
             1963      otherwise furnished, or consumed on the premises, but in no event later than 1 p.m.;
             1964          (ii) when accompanied at all times by a member or holder of a current visitor card who
             1965      is the minor's parent, legal guardian, or spouse; and
             1966          (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
             1967      service provider.
             1968          (c) A class D private club may employ a minor on the premises of the private club if:
             1969          (i) the parent or legal guardian of the minor owns or operates the class D private club;
             1970      or
             1971          (ii) the minor performs maintenance and cleaning services during the hours when the
             1972      private club is not open for business.
             1973          (d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be
             1974      admitted into, use, or be on the premises of a dance or concert hall if:
             1975          (A) the dance or concert hall is located:
             1976          (I) on the premises of a class D private club; or
             1977          (II) on the property that immediately adjoins the premises of and is operated by a class
             1978      D private club; and
             1979          (B) the commission issues the class D private club a permit to operate a minor dance or
             1980      concert hall based on the criteria described in Subsection (8)(d)(iii).


             1981          (ii) If the dance or concert hall is located on the premises of a class D private club, a
             1982      minor must be properly hosted in accordance with Subsection (5) by:
             1983          (A) a member; or
             1984          (B) a holder of a current visitor card.
             1985          (iii) The commission may issue a minor dance or concert hall permit if:
             1986          (A) the private club's lounge, bar, and alcoholic beverage consumption area is:
             1987          (I) not accessible to a minor;
             1988          (II) clearly defined; and
             1989          (III) separated from the dance or concert hall area by one or more walls, multiple floor
             1990      levels, or other substantial physical barriers;
             1991          (B) a bar or dispensing area is not visible to a minor;
             1992          (C) consumption of an alcoholic beverage may not occur in:
             1993          (I) the dance or concert hall area; or
             1994          (II) an area of the private club accessible to a minor;
             1995          (D) the private club maintains sufficient security personnel to prevent the passing of
             1996      [beverages] a beverage from the private club's lounge, bar, or an alcoholic beverage
             1997      consumption area to:
             1998          (I) the dance or concert hall area; or
             1999          (II) an area of the private club accessible to a minor;
             2000          (E) there are one or more separate entrances, exits, and restroom facilities from the
             2001      private club's lounge, bar, and alcoholic beverage consumption areas than for:
             2002          (I) the dance or concert hall area; or
             2003          (II) an area accessible to a minor; and
             2004          (F) the private club complies with any other restrictions imposed by the commission by
             2005      rule.
             2006          (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             2007      guardian who is a member or holder of a current visitor card may be admitted into, use, or be
             2008      on the premises of a concert hall described in Subsection (8)(d)(i) if:
             2009          (i) the requirements of Subsection (8)(d) are met; and
             2010          (ii) signage, product, and dispensing equipment containing recognition of an alcoholic
             2011      beverage is not visible to the minor.


             2012          (f) A minor under 18 years of age but who is 14 years of age or older who is not
             2013      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
             2014      a concert hall described in Subsection (8)(d)(i) if:
             2015          (i) the requirements of Subsections (8)(d) and (8)(e)(ii) are met; and
             2016          (ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
             2017      class D private club.
             2018          (g) The commission may suspend or revoke a minor dance or concert permit issued to
             2019      a class D private club and suspend or revoke the license of the class D private club if:
             2020          (i) the private club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
             2021          (ii) the private club sells, serves, or otherwise furnishes an alcoholic beverage to a
             2022      minor;
             2023          (iii) the private club licensee or a supervisory or managerial level employee of the
             2024      private club licensee is convicted under Title 58, Chapter 37, Utah Controlled Substances Act,
             2025      on the basis of an activity that occurs on:
             2026          (A) the licensed premises; or
             2027          (B) the dance or concert hall that is located on property that immediately adjoins the
             2028      premises of and is operated by the class D private club;
             2029          (iv) there are three or more convictions of patrons of the private club under Title 58,
             2030      Chapter 37, Utah Controlled Substances Act, based on activities that occur on:
             2031          (A) the licensed premises; or
             2032          (B) the dance or concert hall that is located on property that immediately adjoins the
             2033      premises of and is operated by the class D private club;
             2034          (v) there is more than one conviction:
             2035          (A) of:
             2036          (I) the private club licensee;
             2037          (II) an employee of the private club licensee;
             2038          (III) an entertainer contracted by the private club licensee; or
             2039          (IV) a patron of the private club licensee; and
             2040          (B) made on the basis of a lewd act or lewd entertainment prohibited by this title that
             2041      occurs on:
             2042          (I) the licensed premises; or


             2043          (II) the dance or concert hall that is located on property that immediately adjoins the
             2044      premises of and is operated by the class D private club; or
             2045          (vi) the commission finds acts or conduct contrary to the public welfare and morals
             2046      involving lewd acts or lewd entertainment prohibited by this title that occurs on:
             2047          (A) the licensed premises; or
             2048          (B) the dance or concert hall that is located on property that immediately adjoins the
             2049      premises of and is operated by the class D private club.
             2050          (h) Nothing in this Subsection (8) prohibits a class D private club from selling, serving,
             2051      or otherwise furnishing an alcoholic beverage in a dance or concert area located on the private
             2052      club premises on days and times when the private club does not allow a minor into those areas.
             2053          (i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being
             2054      more restrictive of a minor's admittance to, use of, or presence on the premises of a private
             2055      club.
             2056          (9) (a) A private club shall maintain an expense ledger or record showing in detail all
             2057      expenditures separated by payments for:
             2058          (i) malt or brewed beverages;
             2059          (ii) liquor;
             2060          (iii) food;
             2061          (iv) detailed payroll;
             2062          (v) entertainment;
             2063          (vi) rent;
             2064          (vii) utilities;
             2065          (viii) supplies; and
             2066          (ix) other expenditures.
             2067          (b) A private club shall keep a record required by this Subsection (9):
             2068          (i) in a form approved by the department; and
             2069          (ii) balanced each month.
             2070          (c) An expenditure shall be supported by:
             2071          (i) a delivery ticket;
             2072          (ii) an invoice;
             2073          (iii) a receipted bill;


             2074          (iv) a canceled check;
             2075          (v) a petty cash voucher; or
             2076          (vi) other sustaining datum or memorandum.
             2077          (d) An invoice or receipted bill for the current calendar or fiscal year documenting a
             2078      purchase made by the private club shall be maintained.
             2079          (10) (a) A private club shall maintain a minute book that is posted currently by the
             2080      private club.
             2081          (b) The minute book required by this Subsection (10) shall contain the minutes of a
             2082      regular or special meeting of the governing body.
             2083          (c) A private club shall maintain a membership list.
             2084          (11) (a) A private club shall maintain a current copy of the private club's current
             2085      bylaws and current house rules.
             2086          (b) A change in the bylaws or house rules:
             2087          (i) is not effective unless submitted to the department within ten days after adoption;
             2088      and
             2089          (ii) becomes effective 15 days after received by the department unless rejected by the
             2090      department before the expiration of the 15-day period.
             2091          (12) A private club shall maintain accounting and other records and documents as the
             2092      department may require.
             2093          (13) A private club or person acting for the private club, who knowingly forges,
             2094      falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or other
             2095      document of the private club licensee required to be made, maintained, or preserved by this
             2096      title or the rules of the commission for the purpose of deceiving the commission, the
             2097      department, or an official or employee of the commission or department, is subject to:
             2098          (a) the suspension or revocation of the private club's license; and
             2099          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2100          (14) (a) A private club licensee shall maintain and keep a record required by this
             2101      section and a book, record, receipt, or disbursement maintained or used by the licensee, as the
             2102      department requires, for a minimum period of three years.
             2103          (b) A record, book, receipt, or disbursement is subject to inspection by an authorized
             2104      representative of the commission and the department.


             2105          (c) A private club licensee shall allow the department, through an auditor or examiner
             2106      of the department, to audit the records of the private club licensee at times the department
             2107      considers advisable.
             2108          (d) The department shall audit the records of the private club licensee at least once
             2109      annually.
             2110          (15) A private club licensee shall own or lease premises suitable for the private club's
             2111      activities.
             2112          (16) (a) A private club licensee may not maintain facilities in a manner that barricades
             2113      or conceals the private club licensee's operation.
             2114          (b) A member of the commission, authorized department personnel, or a peace officer
             2115      shall, upon presentation of credentials, be admitted immediately to the private club and
             2116      permitted without hindrance or delay to inspect completely the entire private club premises and
             2117      the books and records of the private club licensee, at any time during which the private club
             2118      licensee is open for the transaction of business to its members.
             2119          (17) Public advertising related to a private club licensee by the following shall clearly
             2120      identify a private club as being "a private club for members":
             2121          (a) the private club licensee;
             2122          (b) an employee or agent of the private club licensee; or
             2123          (c) a person under a contract or agreement with the private club licensee.
             2124          (18) A private club licensee must have food available at all times when an alcoholic
             2125      beverage is sold, served, or consumed on the premises.
             2126          (19) (a) [Liquor] Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling
             2127      Act, liquor may not be purchased by a private club licensee except from a state store or
             2128      package agency.
             2129          (b) Liquor purchased from a state store or package agency may be transported by the
             2130      private club licensee from the place of purchase to the licensed premises.
             2131          (c) Payment for liquor shall be made in accordance with rules established by the
             2132      commission.
             2133          (20) A private club licensee may sell or provide a primary spirituous liquor only in a
             2134      quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
             2135      dispensing system approved by the department in accordance with commission rules adopted


             2136      under this title, except that:
             2137          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2138      system if used as a secondary flavoring ingredient in a beverage subject to the following
             2139      restrictions:
             2140          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             2141      a primary spirituous liquor;
             2142          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             2143          (iii) the private club licensee shall designate a location where flavorings are stored on
             2144      the floor plan provided to the department; and
             2145          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             2146          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2147      system if used:
             2148          (i) as a flavoring on a dessert; and
             2149          (ii) in the preparation of a flaming food dish, drink, or dessert;
             2150          (c) a private club patron may have no more than 2.5 ounces of spirituous liquor at a
             2151      time before the private club patron[.]; and
             2152          (d) a private club patron may have no more than two spirituous liquor drinks at a time
             2153      before the private club patron, except that a private club patron may not have two spirituous
             2154      liquor drinks before the private club patron if one of the spirituous liquor drinks consists only
             2155      of the primary spirituous liquor for the other spirituous liquor drink.
             2156          (21) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             2157      exceed five ounces per glass or individual portion.
             2158          (ii) An individual portion may be served to a patron in more than one glass as long as
             2159      the total amount of wine does not exceed five ounces.
             2160          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2161      Subsection (25)(c).
             2162          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             2163      fixed by the commission to a table of four or more persons.
             2164          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             2165      fixed by the commission to a table of less than four persons.
             2166          (c) A wine service may be performed and a service charge assessed by the private club


             2167      licensee as authorized by commission rule for wine purchased at the private club.
             2168          [(22) (a) Heavy beer may be served in an original container not exceeding one liter at a
             2169      price fixed by the commission.]
             2170          (22) (a) A private club licensee may serve heavy beer:
             2171          (i) at a price fixed by the commission; and
             2172          (ii) (A) in an original container not exceeding one liter; or
             2173          (B) subject to Subsection (22)(c):
             2174          (I) in an open container; and
             2175          (II) on draft.
             2176          (b) A flavored malt beverage may be served in an original container not exceeding one
             2177      liter at a price fixed by the commission.
             2178          (c) A private club licensee shall sell heavy beer sold pursuant to Subsection
             2179      (22)(a)(ii)(B) in a size of container that does not exceed two liters, except that heavy beer may
             2180      not be sold to an individual patron in a size of container that exceeds one liter.
             2181          [(c)] (d) A service charge may be assessed by the private club licensee for heavy beer
             2182      or a flavored malt beverage purchased at the private club.
             2183          (23) (a) (i) Subject to Subsection (23)(a)(ii), a private club licensee may sell beer for
             2184      on-premise consumption:
             2185          (A) in an open container; and
             2186          (B) on draft.
             2187          (ii) Beer sold pursuant to Subsection (23)(a)(i) shall be in a size of container that does
             2188      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             2189      container that exceeds one liter.
             2190          (b) (i) A private club licensee that sells beer pursuant to Subsection (23)(a):
             2191          (A) may do so without obtaining a separate on-premise beer retailer license from the
             2192      commission; and
             2193          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2194      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             2195      inconsistent with or less restrictive than the operational restrictions under this chapter.
             2196          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2197      Licenses, required by Subsection (23)(b)(i) may result in a suspension or revocation of the


             2198      private club's:
             2199          (A) state liquor license; and
             2200          (B) alcoholic beverage license issued by the local authority.
             2201          (24) An alcoholic beverage may not be stored, served, or sold in a place other than as
             2202      designated in the private club licensee's application, unless the private club licensee first
             2203      applies for and receives approval from the department for a change of location within the
             2204      private club.
             2205          (25) (a) A patron may only make an alcoholic beverage purchase in the private club
             2206      from and be served by a person employed, designated, and trained by the private club licensee
             2207      to sell, dispense, and serve an alcoholic beverage.
             2208          (b) Notwithstanding Subsection (25)(a), a patron who purchases bottled wine from an
             2209      employee of the private club licensee or carries bottled wine onto the premises of the private
             2210      club pursuant to Subsection (31) may thereafter serve wine from the bottle to the patron or
             2211      others at the patron's table.
             2212          (c) A private club patron may have no more than two alcoholic beverages of any kind
             2213      at a time before the private club patron, subject to the limitation of Subsection (20)(d).
             2214          (26) The liquor storage area shall remain locked at all times other than those hours and
             2215      days when liquor sales and service are authorized by law.
             2216          (27) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             2217      private club on any day after 1 a.m. or before 10 a.m.
             2218          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2219      Licenses, for on-premise beer licenses.
             2220          (c) (i) Notwithstanding Subsections (27)(a) and (b), a private club shall remain open
             2221      for one hour after the private club ceases the sale and service of an alcoholic beverage during
             2222      which time a patron of the private club may finish consuming:
             2223          (A) a single drink containing spirituous liquor;
             2224          (B) a single serving of wine not exceeding five ounces;
             2225          (C) a single serving of heavy beer;
             2226          (D) a single serving of beer not exceeding 26 ounces; or
             2227          (E) a single serving of a flavored malt beverage.
             2228          (ii) A private club is not required to remain open:


             2229          (A) after all patrons have vacated the premises; or
             2230          (B) during an emergency.
             2231          (d) Between the hours of 2 a.m. and 10 a.m. on any day a private club licensee may not
             2232      allow a patron to remain on the premises of the private club to consume an alcoholic beverage
             2233      on the premises.
             2234          (28) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             2235          (a) minor;
             2236          (b) person actually, apparently, or obviously intoxicated;
             2237          (c) known habitual drunkard; or
             2238          (d) known interdicted person.
             2239          (29) (a) (i) Liquor may be sold only at a price fixed by the commission.
             2240          (ii) Liquor may not be sold at a discount price on any date or at any time.
             2241          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             2242      beverage to the private club licensee.
             2243          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2244      over consumption or intoxication.
             2245          (d) The price of a single serving of a primary spirituous liquor shall be the same
             2246      whether served as a single drink or in conjunction with another alcoholic beverage.
             2247          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2248      hours of the private club's business day such as a "happy hour."
             2249          (f) More than one alcoholic beverage may not be sold or served for the price of a single
             2250      alcoholic beverage.
             2251          (g) An indefinite or unlimited number of alcoholic beverages may not be sold or served
             2252      during a set period for a fixed price.
             2253          (h) A private club licensee may not engage in a promotion involving or offering free
             2254      alcoholic beverages to patrons of the private club.
             2255          (30) An alcoholic beverage may not be purchased for a patron of the private club
             2256      licensee by:
             2257          (a) the private club licensee; or
             2258          (b) an employee or agent of the private club licensee.
             2259          (31) (a) A person may not bring onto the premises of a private club licensee an


             2260      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2261      discretion of the licensee, bottled wine onto the premises of a private club licensee for
             2262      on-premise consumption.
             2263          (b) Except bottled wine under Subsection (31)(a), a private club licensee or an officer,
             2264      manager, employee, or agent of a private club licensee may not allow:
             2265          (i) a person to bring onto the private club premises an alcoholic beverage for
             2266      consumption on the private club premises; or
             2267          (ii) consumption of an alcoholic beverage described in Subsection (31)(b)(i) on the
             2268      premises of the private club.
             2269          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2270      or other representative of the private club licensee upon entering the private club.
             2271          (d) A wine service may be performed and a service charge assessed by the private club
             2272      licensee as authorized by commission rule for wine carried in by a patron.
             2273          (32) (a) Except as provided in Subsection (32)(b), a private club licensee or an
             2274      employee of the private club licensee may not permit a patron of the private club to carry from
             2275      the private club premises an open container that:
             2276          (i) is used primarily for drinking purposes; and
             2277          (ii) contains an alcoholic beverage.
             2278          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             2279      removal, the bottle is recorked or recapped.
             2280          (33) (a) A minor may not be employed by a class A, B, or C private club licensee to
             2281      sell, dispense, or handle an alcoholic beverage.
             2282          (b) Notwithstanding Subsection (33)(a), a minor who is at least 16 years of age may be
             2283      employed by a class A or C private club licensee to enter the sale at a cash register or other
             2284      sales recording device.
             2285          (c) Except to the extent authorized in Subsection (8)(c), a minor may not be employed
             2286      by or be on the premises of a class D private club.
             2287          (d) A minor may not be employed to work in a lounge or bar area of a class A, B, or C
             2288      private club licensee.
             2289          (34) An employee of a private club licensee, while on duty, may not:
             2290          (a) consume an alcoholic beverage; or


             2291          (b) be intoxicated.
             2292          (35) A private club licensee shall have available on the premises for a patron to review
             2293      at the time that the customer requests it, a written alcoholic beverage price list or a menu
             2294      containing the price of an alcoholic beverage sold or served by the private club licensee
             2295      including:
             2296          (a) a set-up charge;
             2297          (b) a service charge; or
             2298          (c) a chilling fee.
             2299          (36) A private club licensee shall display in a prominent place in the private club:
             2300          (a) the private club license that is issued by the department;
             2301          (b) a list of the types and brand names of liquor being served through its calibrated
             2302      metered dispensing system; and
             2303          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2304      drugs is a serious crime that is prosecuted aggressively in Utah."
             2305          (37) A private club licensee may not on the premises of the private club:
             2306          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2307      Chapter 10, Part 11, Gambling;
             2308          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             2309      Part 11, Gambling; or
             2310          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2311      the risking of something of value for a return or for an outcome when the return or outcome is
             2312      based upon an element of chance, excluding the playing of an amusement device that confers
             2313      only an immediate and unrecorded right of replay not exchangeable for value.
             2314          (38) (a) A private club licensee may not close or cease operation for a period longer
             2315      than 240 hours, unless:
             2316          (i) the private club licensee notifies the department in writing at least seven days before
             2317      the day on which the private club licensee closes or ceases operation; and
             2318          (ii) the closure or cessation of operation is first approved by the department.
             2319          (b) Notwithstanding Subsection (38)(a), in the case of emergency closure, the private
             2320      club licensee shall immediately notify the department by telephone.
             2321          (c) (i) The department may authorize a closure or cessation of operation for a period


             2322      not to exceed 60 days.
             2323          (ii) The department may extend the initial period an additional 30 days upon:
             2324          (A) written request of the private club; and
             2325          (B) a showing of good cause.
             2326          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2327      commission approval.
             2328          (d) The notice required by Subsection (38)(a) shall include:
             2329          (i) the dates of closure or cessation of operation;
             2330          (ii) the reason for the closure or cessation of operation; and
             2331          (iii) the date on which the private club licensee will reopen or resume operation.
             2332          (e) Failure of the private club licensee to provide notice and to obtain department
             2333      authorization before closure or cessation of operation results in an automatic forfeiture of:
             2334          (i) the private club license; and
             2335          (ii) the unused portion of the private club license fee for the remainder of the license
             2336      year effective immediately.
             2337          (f) Failure of the private club licensee to reopen or resume operation by the approved
             2338      date results in an automatic forfeiture of:
             2339          (i) the private club license; and
             2340          (ii) the unused portion of the private club license fee for the remainder of the license
             2341      year.
             2342          (39) A private club license may not be transferred from one location to another person,
             2343      without prior written approval of the commission.
             2344          (40) (a) A private club licensee, may not sell, transfer, assign, exchange, barter, give, or
             2345      attempt in any way to dispose of the private club license to another person, whether for
             2346      monetary gain or not.
             2347          (b) A private club license has no monetary value for the purpose of any type of
             2348      disposition.
             2349          (41) A private club licensee or an employee of the private club licensee may not
             2350      knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             2351      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2352          (a) sell, distribute, possess, or use a controlled substance, as defined in Section


             2353      58-37-2 ; or
             2354          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2355      Section 58-37a-3 .
             2356          Section 11. Section 32A-6-105 is amended to read:
             2357           32A-6-105. Operational restrictions.
             2358          [Each] A person granted a special use permit and the employees and management
             2359      personnel of the permittee shall abide by the following conditions and requirements. Failure to
             2360      comply may result in a revocation of the permit, or other disciplinary action taken against
             2361      individual employees or management personnel. Suspension or revocation of a permit may be
             2362      done by the commission with or without cause.
             2363          (1) [Where] If authorized by the permit, a permittee may purchase and receive a
             2364      non-consumable alcoholic [products] product directly from a manufacturer for industrial,
             2365      educational, scientific, manufacturing, or health care facility use purposes.
             2366          (2) (a) Except as otherwise provided[,] in this title, including Section 32A-6-202 , a
             2367      permittee may not purchase liquor [may not be purchased by any permittee] except from a state
             2368      [stores] store or package [agencies] agency.
             2369          (b) Liquor [so] purchased in accordance with this Subsection (2) may be transported by
             2370      the permittee from the place of purchase to the permittee's premises. [All liquor shall be
             2371      purchased]
             2372          (c) A permittee shall purchase liquor at prices set by the commission.
             2373          (3) [Alcoholic products] An alcoholic product may not be stored, used, manufactured,
             2374      blended, sold, or consumed in [any] a place other than as designated in the permittee's
             2375      application.
             2376          (4) A permittee may not purchase, store, sell, use, consume, or manufacture [any] an
             2377      alcoholic [products] product for [any] a purpose other than that authorized by the special use
             2378      permit.
             2379          (5) Except as otherwise provided, an alcoholic [products] product may not be sold,
             2380      served, or otherwise furnished to any:
             2381          (a) minor;
             2382          (b) person actually, apparently, or obviously intoxicated;
             2383          (c) known habitual drunkard; or


             2384          (d) known interdicted person.
             2385          (6) [Each] A permittee shall keep records and accounts, as required by commission
             2386      rule, of all alcoholic products purchased, manufactured, used, and sold.
             2387          (7) A special use permit may not be transferred from one location to another, without
             2388      prior written approval of the commission.
             2389          (8) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
             2390      attempt in any way to dispose of the permit to any other person whether for monetary gain or
             2391      not.
             2392          Section 12. Section 32A-6-202 is amended to read:
             2393           32A-6-202. Operational restrictions.
             2394          In addition to the restrictions, conditions, and requirements of Section 32A-6-105 ,
             2395      [each] a public service permit is subject to the following operating restrictions:
             2396          (1) (a) A public service permittee whose public conveyances operate on an interstate
             2397      basis may purchase an alcoholic [beverages] beverage outside of the state and bring it into the
             2398      state and sell and serve it to passengers traveling on the permittee's public conveyance for
             2399      consumption while en route on the conveyance.
             2400          (b) A public service permittee whose public conveyances operate solely within the
             2401      state shall purchase to sell and serve to passengers traveling on the permittee's public
             2402      conveyance for consumption while en route on the conveyance:
             2403          (i) liquor from [state stores or package agencies; and]:
             2404          (A) a state store; or
             2405          (B) a package agency; and
             2406          (ii) beer from a local beer wholesaler licensee.
             2407          (2) A public service permittee may establish a hospitality room in which an alcoholic
             2408      [beverages] beverage may be stored, sold, served, and consumed, if:
             2409          (a) the room is located within a depot, terminal, or similar facility adjacent to and
             2410      servicing the permittee's airline, railroad, bus, boat, or other public conveyance;
             2411          (b) the room is completely enclosed and the interior is not visible to the public;
             2412          (c) the sale or service of the alcoholic [beverages] beverage is made only to [persons] a
             2413      person then in transit using the host company's airline, railroad, bus line, or other public
             2414      conveyance, and holding a valid boarding pass or similar travel document issued by the host


             2415      company; and
             2416          (d) (i) [all] liquor is purchased from:
             2417          (A) a state store; [or]
             2418          (B) a package agency; [and] or
             2419          (C) in the case of heavy beer, a beer wholesaler licensee that complies with Chapter 11,
             2420      Part 2, Heavy Beer Wholesaling Act; and
             2421          (ii) beer is purchased from a local [licensed] beer wholesaler licensee.
             2422          (3) [Each] A public service permittee operating a hospitality room shall display in a
             2423      prominent place in the hospitality room, a sign in large letters stating: "Warning: Driving under
             2424      the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
             2425          (4) The operation of [all] a hospitality [rooms] room shall be done in accordance with
             2426      this chapter and rules adopted by the commission.
             2427          Section 13. Section 32A-7-106 is amended to read:
             2428           32A-7-106. Operational restrictions.
             2429          (1) (a) An organization granted a single event permit and a person involved in the
             2430      storage, sale, or service of an alcoholic beverage at the event for which the permit is issued,
             2431      shall abide by:
             2432          (i) this title;
             2433          (ii) the rules of the commission; and
             2434          (iii) the special conditions and requirements provided in this section.
             2435          (b) Failure to comply with Subsection (1)(a) by an organization or person described in
             2436      Subsection (1)(a):
             2437          (i) may result in:
             2438          (A) an immediate revocation of the single event permit;
             2439          (B) forfeiture of the surety bond; and
             2440          (C) immediate seizure of an alcoholic beverage present at the event; and
             2441          (ii) disqualifies the organization from applying for a period of three years from the date
             2442      of revocation of the permit for:
             2443          (A) a single event permit under this chapter; or
             2444          (B) a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
             2445      Event Beer Permits.


             2446          (c) An alcoholic beverage seized under this Subsection (1) shall be returned to the
             2447      organization after the event if forfeiture proceedings are not instituted under Section
             2448      32A-13-103 .
             2449          (2) Special conditions and requirements for a single event permittee include the
             2450      following:
             2451          (a) (i) A person involved in the storage, sale, or service of an alcoholic beverage at the
             2452      event must do so under the supervision and direction of the permittee.
             2453          (ii) A person involved in the sale or service of an alcoholic beverage at the event may
             2454      not, while on duty:
             2455          (A) consume an alcoholic beverage; or
             2456          (B) be intoxicated.
             2457          (b) (i) A permittee shall purchase liquor stored, sold, served, and consumed at the event
             2458      from:
             2459          (A) a state store [or];
             2460          (B) a package agency[.]; or
             2461          (C) in the case of heavy beer, a beer wholesaler licensee that complies with Chapter 11,
             2462      Part 2, Heavy Beer Wholesaling Act.
             2463          (ii) The permittee shall purchase beer from:
             2464          (A) a [licensed] beer wholesaler licensee; or
             2465          (B) a licensed beer retailer.
             2466          (iii) An alcoholic beverage is considered under the control of the permittee during the
             2467      event.
             2468          (iv) An attendee of the event may not bring an alcoholic beverage onto the premises of
             2469      the event.
             2470          (c) A permittee may not charge more than the maximum amount set forth in the permit
             2471      for an alcoholic beverage.
             2472          (d) A permittee shall post in a prominent place in the area in which an alcoholic
             2473      beverage is sold, served, and consumed, a copy of the permit, together with a list of the
             2474      operational restrictions and requirements of a single event permittee set forth in this section.
             2475          (e) An alcoholic beverage purchased for the event may not be stored, sold, served, or
             2476      consumed in a location other than that described in the application and designated on the


             2477      permit unless the permittee first applies for and receives approval from the commission for a
             2478      change of location.
             2479          (f) (i) A single event permittee may sell or provide a primary spirituous liquor only in a
             2480      quantity not to exceed 1.5 ounces per beverage except that additional spirituous liquor may be
             2481      used in a beverage if:
             2482          (A) used as a secondary flavoring ingredient;
             2483          (B) used in conjunction with the primary spirituous liquor;
             2484          (C) the secondary ingredient is not the only spirituous liquor in the beverage;
             2485          (D) an attendee has no more than 2.5 ounces of spirituous liquor at a time before the
             2486      attendee; and
             2487          (E) an attendee has no more than one spirituous liquor drink at a time before the
             2488      attendee.
             2489          (ii) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             2490      system.
             2491          (g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
             2492      not exceed five ounces per glass or individual portion.
             2493          (B) An individual portion may be served to an attendee in more than one glass as long
             2494      as the total amount of wine does not exceed five ounces.
             2495          (C) An individual portion of wine is considered to be one alcoholic beverage under
             2496      Subsection (2)[(p)](o).
             2497          (ii) Wine may be sold and served in a container not exceeding 1.5 liters at a price fixed
             2498      by the commission.
             2499          (iii) A wine service may be performed and a service charge assessed by the single event
             2500      permittee as authorized by commission rule for wine purchased at the event.
             2501          [(h) (i) Heavy beer may be served in an original container not exceeding one liter at a
             2502      price fixed by the commission.]
             2503          (h) (i) A single event permittee may serve heavy beer:
             2504          (A) at a price fixed by the commission; and
             2505          (B) (I) in an original container not exceeding one liter; or
             2506          (II) subject to Subsection (2)(h)(iii):
             2507          (Aa) in an open container; and


             2508          (Bb) on draft.
             2509          (ii) A flavored malt beverage may be served in an original container not exceeding one
             2510      liter at a price fixed by the commission.
             2511          (iii) A single event permittee shall sell heavy beer sold pursuant to Subsection
             2512      (2)(h)(i)(B)(II) in a size of container that does not exceed two liters, except that heavy beer may
             2513      not be sold to an individual patron in a size of container that exceeds one liter.
             2514          [(iii)] (iv) A service charge may be assessed by a single event permittee as authorized
             2515      by commission rule for heavy beer or a flavored malt beverage purchased at the event.
             2516          (i) (i) Subject to Subsection (2)(i)(ii), beer may be sold for on-premise consumption:
             2517          (A) in an open container; and
             2518          (B) on draft.
             2519          (ii) Beer sold pursuant to Subsection (2)(i)(i) shall be in a size of container that does
             2520      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             2521      container that exceeds one liter.
             2522          (j) (i) An alcoholic beverage may not be sold, served, or consumed between the hours
             2523      of 1 a.m. and 10 a.m.
             2524          (ii) This Subsection (2)(j) does not preclude a local authority from being more
             2525      restrictive with respect to the hours of sale, service, or consumption of an alcoholic beverage at
             2526      a temporary single event.
             2527          (k) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             2528          (i) minor;
             2529          (ii) person actually, apparently, or obviously intoxicated;
             2530          (iii) known habitual drunkard; or
             2531          (iv) known interdicted person.
             2532          (l) (i) (A) Liquor may be sold only at a price fixed by the commission.
             2533          (B) Liquor may not be sold at a discount price on any date or at any time.
             2534          (ii) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             2535      beverage to the permittee.
             2536          (iii) An alcoholic beverage may not be sold at a price that encourages over
             2537      consumption or intoxication.
             2538          (iv) An alcoholic beverage may not be sold at a special or reduced price for only


             2539      certain hours of the day of the permitted event.
             2540          (v) More than one alcoholic beverage may not be sold or served for the price of a
             2541      single alcoholic beverage.
             2542          (vi) The permittee may not engage in a public promotion involving or offering free
             2543      alcoholic beverages to the general public.
             2544          (m) A single event permittee and its employees may not permit an attendee to carry
             2545      from the premises an open container that:
             2546          (i) is used primarily for drinking purposes; and
             2547          (ii) contains an alcoholic beverage.
             2548          (n) A minor may not sell, serve, dispense, or handle an alcoholic beverage at the event.
             2549          (o) An attendee may have no more than one alcoholic beverage of any kind at a time
             2550      before the patron, subject to the limitation in Subsection (2)(f)(i)(E).
             2551          (3) The permittee shall maintain an expense and revenue ledger or record showing:
             2552          (a) expenditures made for liquor and beer, set-ups, and other ingredients and
             2553      components of an alcoholic beverage; and
             2554          (b) the revenue from the sale of an alcoholic beverage.
             2555          (4) A single event permit may not be transferred.
             2556          (5) A single event permittee may not on the premises serviced by the single event
             2557      permittee:
             2558          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             2559      Chapter 10, Part 11, Gambling;
             2560          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2561      Part 11, Gambling; or
             2562          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2563      the risking of something of value for a return or for an outcome when the return or outcome is
             2564      based upon an element of chance, excluding the playing of an amusement device that confers
             2565      only an immediate and unrecorded right of replay not exchangeable for value.
             2566          (6) A single event permittee or an employee of the single event permittee may not
             2567      knowingly allow a person at an event to, in violation of Title 58, Chapter 37, Utah Controlled
             2568      Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2569          (a) sell, distribute, possess, or use a controlled substance, as defined in Section


             2570      58-37-2 ; or
             2571          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2572      Section 58-37a-3 .
             2573          Section 14. Section 32A-8-101 is amended to read:
             2574           32A-8-101. Commission's power to grant licenses -- Limitations.
             2575          (1) The commission may issue an alcoholic beverage manufacturing license to a
             2576      manufacturer whose business in this state is located in this state for the manufacture, storage,
             2577      and sale of an alcoholic [beverages] beverage for each type of license provided by this chapter.
             2578          (2) The type of manufacturing licenses issued under this chapter are known as a:
             2579          (a) winery license;
             2580          (b) distillery license; and
             2581          (c) brewery license.
             2582          (3) (a) A person may not manufacture an alcoholic beverage unless an alcoholic
             2583      beverage manufacturing license is issued by the commission.
             2584          (b) A separate license is required for each place of manufacture, storage, and sale of an
             2585      alcoholic beverage.
             2586          (c) Violation of this Subsection (3) is a class B misdemeanor.
             2587          (4) (a) A brewer located outside the state is not required to be licensed under this
             2588      chapter.
             2589          (b) A brewer described in Subsection (4)(a) must obtain a certificate of approval from
             2590      the department before selling or delivering:
             2591          (i) beer to a [licensed] beer wholesaler licensee in this state;
             2592          (ii) [on or after October 1, 2008,] a flavored malt beverage to:
             2593          (A) the department; or
             2594          (B) a military installation; [or]
             2595          (iii) heavy beer to a beer wholesaler licensee in this state that complies with Chapter
             2596      11, Part 2, Heavy Beer Wholesaling Act; or
             2597          [(iii)] (iv) if a small brewer, beer to:
             2598          (A) a [licensed] beer wholesaler licensee; or
             2599          (B) a retailer in this state.
             2600          (c) A brewer seeking a certificate of approval shall file a written application with the


             2601      department, in a form prescribed by the department. The application shall be accompanied by:
             2602          (i) a nonrefundable $50 application fee;
             2603          (ii) an initial certificate of approval fee of $250 that is refundable if a certificate is not
             2604      granted;
             2605          (iii) evidence of authority from the United States Bureau of Alcohol, Tobacco, and
             2606      Firearms to brew beer, heavy beer, or a flavored malt beverage; and
             2607          (iv) [any] other information or documents the department may require.
             2608          (d) (i) An application shall be signed and verified by oath or affirmation by:
             2609          (A) a partner if the brewer is a partnership; or
             2610          (B) an executive officer, manager, or person specifically authorized by a corporation or
             2611      limited liability company to sign the application.
             2612          (ii) The brewer filing an application shall attach to the application written evidence of
             2613      the authority of the person described in Subsection (4)(d)(i) to sign the application.
             2614          (e) (i) [All certificates] A certificate of approval [expire] expires on December 31 of
             2615      each year.
             2616          (ii) A brewer desiring to renew its certificate shall submit a renewal fee of $200, and a
             2617      completed renewal application to the department no later than November 30 of the year the
             2618      certificate expires.
             2619          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             2620      certificate effective on the date the existing certificate expires.
             2621          (iv) A renewal application shall be in a form prescribed by the department.
             2622          (5) The commission may prescribe by policy, directive, or rule, consistent with this
             2623      title, the general operational requirements of licensees relating to:
             2624          (a) physical facilities;
             2625          (b) conditions of sale, storage, or manufacture of an alcoholic [beverages] beverage;
             2626          (c) storage and sales quantity limitations; and
             2627          (d) other matters considered appropriate by the commission.
             2628          Section 15. Section 32A-8-401 is amended to read:
             2629           32A-8-401. Authority and operational restrictions.
             2630          (1) A brewery license allows the licensee to:
             2631          (a) manufacture, brew, store, transport, or export beer, heavy beer, and a flavored malt


             2632      [beverages] beverage;
             2633          (b) sell heavy beer [and, on or after October 1, 2008,] or a flavored malt beverage to:
             2634          (i) the department;
             2635          (ii) a military installation; and
             2636          (iii) an out-of-state customer;
             2637          (c) sell heavy beer to a beer wholesaler licensee that complies with Chapter 11, Part 2,
             2638      Heavy Beer Wholesaling Act;
             2639          [(c)] (d) sell beer to a [licensed] beer wholesaler licensee;
             2640          [(d)] (e) in the case of a small brewer, sell in accordance with Subsection (5), beer
             2641      manufactured by the brewer to:
             2642          (i) a licensed retailer;
             2643          (ii) a holder of a single event permit issued by the commission pursuant to Chapter 7,
             2644      Single Event Permits; and
             2645          (iii) a holder of a temporary retail beer permit issued by the commission for a
             2646      temporary special event pursuant to Chapter 10, Part 3, Temporary Special Event Beer Permits;
             2647      and
             2648          [(e)] (f) warehouse on its premises an alcoholic beverage that it manufactures or
             2649      purchases for manufacturing purposes.
             2650          (2) If considered necessary, the commission or department may:
             2651          (a) require certain alterations to the plant, equipment, or premises;
             2652          (b) require the alteration or removal of [any] unsuitable alcoholic beverage-making
             2653      equipment or material;
             2654          (c) require the licensee to clean, disinfect, ventilate, or otherwise improve the sanitary
             2655      and working conditions of any plant, premises, and equipment; or
             2656          (d) demand that [all books, records, or data] a book, record, or data pertaining to the
             2657      materials and ingredients used in the manufacture of an alcoholic [products are] product is
             2658      available to the commission or department upon request.
             2659          (3) A brewery licensee may not sell the following to [any] a person within the state
             2660      except as follows:
             2661          (a) heavy beer to:
             2662          (i) the department [or];


             2663          (ii) a military installation[:]; or
             2664          [(a) heavy beer; or]
             2665          (iii) a beer wholesaler licensee that complies with Chapter 11, Part 2, Heavy Beer
             2666      Wholesaling Act; or
             2667          (b) [on or after October 1, 2008,] a flavored malt beverage[.] to:
             2668          (i) the department; or
             2669          (ii) a military installation.
             2670          (4) A brewery licensee may not permit [any] beer, heavy beer, or a flavored malt
             2671      beverage to be consumed on its premises, except under the circumstances described in this
             2672      Subsection (4).
             2673          (a) A brewer may allow [its] an off-duty [employees] employee of the brewer to
             2674      consume beer, heavy beer, or a flavored malt beverage on its premises without charge.
             2675          (b) A brewery licensee may allow [any] a person who can lawfully buy the following
             2676      for wholesale or retail distribution to consume bona fide samples of its product on the brewery
             2677      premises:
             2678          (i) beer;
             2679          (ii) heavy beer; or
             2680          (iii) [on or after October 1, 2008,] a flavored malt beverage.
             2681          (c) (i) A brewery licensee may operate on its manufacturing premises a retail facility
             2682      allowing consumption on premises of beer in bottles or draft as long as food is also available.
             2683          (ii) A retail facility located on the premises of a brewery licensee shall be operated or
             2684      supervised by the brewer.
             2685          (iii) In operating an on-site retail facility, a brewery licensee shall comply with the
             2686      requirements of Sections 32A-10-101 and 32A-10-102 .
             2687          (5) (a) A small brewer licensee located in this state, and a small brewer located outside
             2688      this state that obtains a certificate of approval from the department to sell beer in this state
             2689      under Subsection 32A-8-101 (4), that sells beer manufactured by the small brewer directly to a
             2690      retailer licensee or permittee shall own, lease, or maintain and control a warehouse facility
             2691      located in this state for the storage of [all] beer to be sold to any retailer licensee or permittee.
             2692          (b) A small brewer may not sell beer to a retailer licensee or permittee unless the beer:
             2693          (i) is manufactured by the small brewer; and


             2694          (ii) is first placed in the small brewer's warehouse facility in this state.
             2695          (c) (i) A small brewer warehouse shall maintain complete beer importation, inventory,
             2696      tax, distribution, sales records, and other documents as the department and State Tax
             2697      Commission may require.
             2698          (ii) The records and documents described in Subsection (5)(c)(i) are subject to
             2699      inspection by:
             2700          (A) the department; and
             2701          (B) the State Tax Commission.
             2702          (iii) A small brewer or person acting for the small brewer, who knowingly forges,
             2703      falsifies, alters, cancels, destroys, conceals, or removes a record or document required to be
             2704      made, maintained, or preserved by this title or the rules of the commission, or State Tax
             2705      Commission for the purpose of deceiving the commission, department, State Tax Commission,
             2706      or any of their officials or employees, is subject to:
             2707          (A) the immediate suspension or revocation of:
             2708          (I) the brewery license; or
             2709          (II) the certificate of approval; and
             2710          (B) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2711          Section 16. Section 32A-8-505 is amended to read:
             2712           32A-8-505. Operational restrictions.
             2713          (1) (a) A local industry representative licensee, employee or agent of the licensee, or
             2714      employee or agent of a manufacturer, supplier, or importer who is conducting business in the
             2715      state, shall abide by the conditions and requirements set forth in this section.
             2716          (b) If a person listed in Subsection (1)(a) knowingly violates or fails to comply with the
             2717      conditions and requirements set forth in this section:
             2718          (i) the violation or failure to comply may result in:
             2719          (A) a suspension or revocation of the license; or
             2720          (B) other disciplinary action taken against individual employees or agents of the
             2721      licensee; and
             2722          (ii) the commission may order the removal of the manufacturer's, supplier's, or
             2723      importer's [products] product from the department's sales list and a suspension of the
             2724      department's purchase of [those products] the product for a period determined by the


             2725      commission if the manufacturer, supplier, or importer:
             2726          (A) directly committed the violation; or
             2727          (B) solicited, requested, commanded, encouraged, or intentionally aided another to
             2728      engage in the violation.
             2729          (2) A local industry representative licensee, employee or agent of the licensee, or
             2730      employee or agent of a manufacturer, supplier, or importer who is conducting business in the
             2731      state:
             2732          (a) only to the extent authorized by Chapter 12, Criminal Offenses, may:
             2733          (i) assist the department in:
             2734          (A) ordering, shipping, and delivering merchandise;
             2735          (B) providing new product notification;
             2736          (C) obtaining listing and delisting information;
             2737          (D) receiving price quotations;
             2738          (E) providing product sales analysis;
             2739          (F) conducting shelf management; and
             2740          (G) conducting educational seminars; and
             2741          (ii) for the purpose of acquiring new listings:
             2742          (A) solicit orders from the department; and
             2743          (B) submit to the department price lists and samples of the products of the
             2744      manufacturer, supplier, or importer;
             2745          (b) may not sell [any] liquor within the state except [to] as follows:
             2746          (i) heavy beer to:
             2747          (A) the department [and];
             2748          (B) a military [installations including:] installation; or
             2749          [(i) wine;]
             2750          [(ii) heavy beer; or]
             2751          [(iii) on or after October 1, 2008,]
             2752          (C) a beer wholesaler licensee that complies with Chapter 11, Part 2, Heavy Beer
             2753      Wholesaling Act; and
             2754          (ii) wine or a flavored malt beverage[;] to:
             2755          (A) the department; or


             2756          (B) a military installation;
             2757          (c) may not ship or transport, or cause to be shipped or transported, into this state or
             2758      from one place to another within this state [any] liquor including:
             2759          (i) wine;
             2760          (ii) heavy beer; or
             2761          (iii) [on or after October 1, 2008,] a flavored malt beverage;
             2762          (d) may not sell or furnish [any] liquor to [any] a person within this state [other than to]
             2763      except as follows:
             2764          (i) heavy beer to:
             2765          (A) the department [and];
             2766          (B) a military [installations including:] installation; or
             2767          [(i) wine;]
             2768          [(ii) heavy beer; or]
             2769          [(iii) on or after October 1, 2008,]
             2770          (C) a beer wholesaler licensee that complies with Chapter 11, Part 2, Heavy Beer
             2771      Wholesaling Act; and
             2772          (ii) wine or a flavored malt beverage[;]to:
             2773          (A) the department; or
             2774          (B) a military installation;
             2775          (e) except as otherwise provided, may not advertise [products] a product it represents
             2776      in violation of this title or any other federal or state law;
             2777          (f) shall comply with [all] trade practices provided in Chapter 12, Criminal Offenses;
             2778      and
             2779          (g) may only provide samples of [products] a product of the manufacturer, supplier, or
             2780      importer for tasting and sampling purposes as provided in Section 32A-12-603 by the
             2781      department.
             2782          (3) (a) A local industry representative licensee shall maintain on file with the
             2783      department a current accounts list of the names and addresses of all manufacturers, suppliers,
             2784      and importers the licensee represents.
             2785          (b) The licensee shall notify the department in writing of any changes to the accounts
             2786      listed within 14 days from the date the licensee either acquired or lost the account of a


             2787      particular manufacturer, supplier, or importer.
             2788          (4) A local industry representative licensee shall maintain accounting and other records
             2789      and documents as the department may require for at least three years.
             2790          (5) A local industry representative licensee or person acting for the licensee, who
             2791      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of
             2792      the books of account or other documents of the licensee required to be made, maintained, or
             2793      preserved by this title or the rules of the commission for the purpose of deceiving the
             2794      commission or the department, or any of their officials or employees, is subject to:
             2795          (a) the immediate suspension or revocation of the industry representative's license; and
             2796          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2797          (6) A local industry representative licensee may, for the purpose of becoming educated
             2798      as to the quality and characteristics of a liquor, wine, or heavy beer product which the licensee
             2799      represents, taste and analyze industry representative samples under the conditions listed in this
             2800      Subsection (6).
             2801          (a) The licensee may not receive more than two industry representative samples of a
             2802      particular type, vintage, and production lot of a particular branded product within a consecutive
             2803      120-day period.
             2804          (b) (i) A sample of liquor may not exceed 1 liter.
             2805          (ii) Notwithstanding Subsection (6)(b)(i), a sample of the following may not exceed 1.5
             2806      liters unless that exact product is only commercially packaged in a larger size, not to exceed 5
             2807      liters:
             2808          (A) wine;
             2809          (B) heavy beer; or
             2810          (C) [on or after October 1, 2008,] a flavored malt beverage.
             2811          (c) An industry representative sample may only be of a product not presently listed on
             2812      the department's sales list.
             2813          (d) (i) An industry representative sample shall be shipped:
             2814          (A) prepaid by the manufacturer, supplier, or importer;
             2815          (B) by common carrier and not via United States mail; and
             2816          (C) directly to the department's central administrative warehouse office.
             2817          (ii) An industry representative sample may not be shipped to any other location within


             2818      the state.
             2819          (e) An industry representative sample shall be accompanied by a letter from the
             2820      manufacturer, supplier, or importer:
             2821          (i) clearly identifying the product as an "industry representative sample"; and
             2822          (ii) clearly stating:
             2823          (A) the FOB case price of the product; and
             2824          (B) the name of the local industry representative for who it is intended.
             2825          (f) The department shall assess a reasonable handling, labeling, and storage fee for
             2826      each industry representative sample received.
             2827          (g) The department shall affix to a bottle or container a label clearly identifying the
             2828      product as an "industry representative sample."
             2829          (h) The department shall:
             2830          (i) account for and record [each] an industry representative sample received;
             2831          (ii) account for the sample's disposition; and
             2832          (iii) maintain a record of the sample and its disposition for a two-year period.
             2833          (i) An industry representative sample may not leave the premises of the department's
             2834      central administrative warehouse office.
             2835          (j) A licensed industry representative and the industry representative's employees and
             2836      agents may, at regularly scheduled days and times established by the department, taste and
             2837      analyze one or more industry representative samples on the premises of the department's
             2838      central administrative warehouse office.
             2839          (k) Any unused contents of an opened product remaining after the product is sampled
             2840      shall be destroyed by the department under controlled and audited conditions established by the
             2841      department.
             2842          (l) An industry representative sample that is not tasted within 30 days of receipt by the
             2843      department shall be disposed of at the discretion of the department in one of the following
             2844      ways:
             2845          (i) contents destroyed under controlled and audited conditions established by the
             2846      department; or
             2847          (ii) added to the inventory of the department for sale to the public.
             2848          (7) An employee or agent of a local industry representative licensee may not be:


             2849          (a) the holder of any retail license issued under this title that sells:
             2850          (i) spirituous liquor;
             2851          (ii) wine;
             2852          (iii) heavy beer; or
             2853          (iv) [on or after October 1, 2008,] a flavored malt beverage;
             2854          (b) an employee or agent of any retail licensee issued under this title that sells:
             2855          (i) spirituous liquor;
             2856          (ii) wine;
             2857          (iii) heavy beer; or
             2858          (iv) [on or after October 1, 2008,] a flavored malt beverage; or
             2859          (c) a minor.
             2860          (8) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,
             2861      give, or attempt in any way to dispose of the license to any other person, whether for monetary
             2862      gain or not.
             2863          (b) A local industry representative license has no monetary value for the purpose of any
             2864      type of disposition.
             2865          Section 17. Section 32A-9-101 is amended to read:
             2866           32A-9-101. Commission's power to issue licenses.
             2867          (1) The commission may issue a liquor warehousing [licenses] license for the
             2868      warehousing, distribution, and transportation of liquor.
             2869          (2) [A] (a) Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling Act, a
             2870      person may not warehouse, distribute, or transport liquor for resale to a wholesale or retail
             2871      [customers] customer unless the person is issued a liquor warehousing license by the
             2872      commission.
             2873          (b) A separate license is required for each warehousing facility.
             2874          (c) Violation of this Subsection (2) is a class B misdemeanor.
             2875          (3) The commission may prescribe by policy, directive, or rule, consistent with this
             2876      title, the general operational requirements of [licensees] a liquor warehousing licensee relating
             2877      to:
             2878          (a) physical facilities;
             2879          (b) conditions of storage, distribution, or transport of liquor; and


             2880          (c) other matters considered appropriate by the commission.
             2881          Section 18. Section 32A-10-102 is amended to read:
             2882           32A-10-102. General restrictions.
             2883          (1) (a) (i) A beer retailer licensed under this part or Part 2, On-Premise Beer Retailer
             2884      Licenses, may not purchase, acquire, possess for the purpose of resale, or sell beer except that
             2885      which is lawfully purchased from:
             2886          (A) a beer wholesaler [licensed under this title] licensee; or
             2887          (B) a small brewer that manufactures the beer.
             2888          (ii) Violation of Subsection (1)(a)(i) is a class A misdemeanor.
             2889          (b) (i) A beer retailer shall purchase beer only from a [licensed] beer wholesaler
             2890      licensee who is authorized by the commission to sell beer in the geographical area in which the
             2891      beer retailer is located, unless an alternate wholesaler is authorized by the department to sell to
             2892      the beer retailer as provided in Section 32A-11-106 .
             2893          (ii) Violation of Subsection (1)(b)(i) is a class B misdemeanor.
             2894          (2) (a) Beer may not be sold, provided, or possessed for off-premise consumption in a
             2895      container larger than two liters.
             2896          (b) For a special event that does not last longer than 30 days:
             2897          (i) an on-premise beer retailer license issued by the commission as provided in this part
             2898      is not required for the sale of beer at the special event; and
             2899          (ii) a temporary beer permit must be obtained from the commission as provided in Part
             2900      3, Temporary Special Event Beer Permits.
             2901          (3) (a) A minor may not be granted a beer retailer license.
             2902          (b) The commission may not grant a beer retailer license to an applicant that is a
             2903      partnership, corporation, or limited liability company if any of the following is a minor:
             2904          (i) a partner or managing agent of the applicant partnership;
             2905          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             2906      total issued and outstanding stock of the applicant corporation; or
             2907          (iii) a manager or member who owns at least 20% of the applicant limited liability
             2908      company.
             2909          (4) A minor may not sell beer on the premises of a beer retailer for off-premise
             2910      consumption unless:


             2911          (a) the sale is done under the supervision of a person 21 years of age or older who is on
             2912      the premises; and
             2913          (b) the minor is at least 16 years of age.
             2914          (5) (a) Subject to the other provisions of this Subsection (5), a beer retailer shall:
             2915          (i) display a beer sold by the retailer in an area that is visibly separate and distinct from
             2916      the area where a nonalcoholic beverage is displayed; and
             2917          (ii) post a sign in the area described in Subsection (5)(a)(i) that:
             2918          (A) is prominent;
             2919          (B) is easily readable by a consumer;
             2920          (C) meets the requirements for format made by the commission by rule made in
             2921      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             2922          (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
             2923      alcohol. Please read the label carefully."
             2924          (b) Notwithstanding Subsection (5)(a), a nonalcoholic beverage may be displayed with
             2925      beer if the nonalcoholic beverage is labeled, packaged, or advertised as a nonalcoholic beer.
             2926          (c) The requirements of this Subsection (5) apply to a beer notwithstanding that it is
             2927      labeled, packaged, or advertised as:
             2928          (i) a malt cooler; or
             2929          (ii) a beverage that may provide energy.
             2930          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2931      commission shall define by rule what constitutes an "area that is visibly separate and distinct
             2932      from the area where a nonalcoholic beverage is displayed."
             2933          (e) A violation of this Subsection (5) is an infraction.
             2934          Section 19. Section 32A-10-306 is amended to read:
             2935           32A-10-306. Operational restrictions.
             2936          (1) (a) A person granted a temporary special event beer permit and [any] a person
             2937      involved in the storage, sale, or service of beer at the event for which a temporary special event
             2938      the permit is issued, shall abide by this title, the rules of the commission, and the special
             2939      conditions and requirements provided in this section.
             2940          (b) Failure to comply as provided in Subsection (1)(a):
             2941          (i) may result in:


             2942          (A) an immediate revocation of the permit;
             2943          (B) forfeiture of the surety bond; and
             2944          (C) immediate seizure of [all] beer present at the event; and
             2945          (ii) disqualifies the organization from applying for a temporary special event beer
             2946      permit under this part or a single event permit under Chapter 7, Single Event Permits, for a
             2947      period of three years from the date of revocation of the temporary special event permit.
             2948          (c) Beer seized under this Subsection (1) shall be returned to the organization after the
             2949      event if forfeiture proceedings are not instituted under Section 32A-13-103 .
             2950          (2) Special conditions and requirements for temporary special event beer permittees
             2951      include the following:
             2952          (a) (i) A person involved in the storage, sale, or service of beer at the temporary special
             2953      event is considered to be under the supervision and direction of the permittee.
             2954          (ii) A person involved in the sale or service of beer at the temporary special event may
             2955      not, while on duty:
             2956          (A) consume an alcoholic beverage; or
             2957          (B) be intoxicated.
             2958          (b) (i) A permittee shall purchase beer stored, sold, served, and consumed at the
             2959      temporary special event from a [licensed] beer wholesaler licensee or retailer.
             2960          (ii) Beer is considered under the control of the permittee during the temporary special
             2961      event.
             2962          (iii) An attendee of the temporary special event may not bring an alcoholic beverage
             2963      onto the premises of the temporary special event.
             2964          (c) A permittee shall post in a prominent place in the area in which beer is being sold,
             2965      served, and consumed:
             2966          (i) a copy of the permit; and
             2967          (ii) a list of the operational restrictions and requirements of temporary special event
             2968      beer permittees set forth in this section.
             2969          (d) Beer purchased for a temporary special event may not be stored, sold, served, or
             2970      consumed in a location other than that described in the application and designated on the
             2971      temporary special event permit unless the permittee first applies for and receives approval from
             2972      the commission for a change of location.


             2973          (e) (i) Subject to Subsection (2)(e)(ii), beer may be sold for on-premise consumption:
             2974          (A) in an open container; and
             2975          (B) on draft.
             2976          (ii) Beer sold pursuant to Subsection (2)(e)(i) shall be in a size of container that does
             2977      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             2978      container that exceeds one liter.
             2979          (f) (i) Beer may not be sold, offered for sale, served, otherwise furnished, or consumed
             2980      between the hours of 1 a.m. and 10 a.m.
             2981          (ii) This Subsection (2)(f) does not preclude a local authority from being more
             2982      restrictive with respect to the hours of sale, service, or consumption of beer at a temporary
             2983      special event.
             2984          (g) Beer may not be sold, served, or otherwise furnished to a:
             2985          (i) minor;
             2986          (ii) person actually, apparently, or obviously intoxicated;
             2987          (iii) known habitual drunkard; or
             2988          (iv) known interdicted person.
             2989          (h) (i) Beer may not be sold at less than the cost of the beer to the permittee.
             2990          (ii) Beer may not be sold at a price that encourages over consumption or intoxication.
             2991          (iii) Beer may not be sold at a special or reduced price for only certain hours of the day
             2992      of the permitted event.
             2993          (iv) More than one beer beverage may not be sold or served for the price of a single
             2994      beer beverage.
             2995          (v) [The] A permittee may not engage in a public promotion involving or offering free
             2996      beer to the general public.
             2997          (i) [The] A permittee and its employees may not permit an attendee to carry from the
             2998      premises an open container that:
             2999          (i) is used for drinking purposes; and
             3000          (ii) contains an alcoholic beverage.
             3001          (j) A minor may not sell, serve, dispense, or handle any beer at a temporary special
             3002      event.
             3003          (3) [The] A permittee shall maintain an expense and revenue ledger or record showing:


             3004          (a) expenditures made for beer; and
             3005          (b) the revenue from sale of beer.
             3006          (4) A temporary special event beer permit may not be transferred.
             3007          (5) A temporary special event beer permittee may not on the premises serviced by the
             3008      permittee:
             3009          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             3010      Chapter 10, Part 11, Gambling;
             3011          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             3012      Part 11, Gambling; or
             3013          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             3014      the risking of something of value for a return or for an outcome when the return or outcome is
             3015      based upon an element of chance, excluding the playing of an amusement device that confers
             3016      only an immediate and unrecorded right of replay not exchangeable for value.
             3017          (6) A temporary special event beer permittee or an employee of the temporary special
             3018      event beer permittee may not knowingly allow a person at an event to, in violation of Title 58,
             3019      Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             3020          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             3021      58-37-2 ; or
             3022          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             3023      Section 58-37a-3 .
             3024          Section 20. Section 32A-11-101 is amended to read:
             3025           32A-11-101. Commission's power to issue licenses.
             3026          (1) (a) The commission may issue a beer wholesaling [licenses] license for the import,
             3027      purchase, storage, sale, and distribution of beer.
             3028          (b) The license entitles the beer wholesaler licensee to:
             3029          (i) purchase and import beer into the state;
             3030          (ii) store beer in approved warehouses; and
             3031          (iii) sell and distribute beer directly to:
             3032          (A) a licensed beer retailer;
             3033          (B) a holder of a single event permit issued by the commission pursuant to Chapter 7,
             3034      Single Event Permits; and


             3035          (C) a holder of a temporary retail beer permit issued by the commission for a
             3036      temporary special event pursuant to Chapter 10, Part 3, Temporary Special Event Beer
             3037      Permits[.]; and
             3038          (iv) if the beer wholesaler licensee complies with Part 2, Heavy Beer Wholesaling Act:
             3039          (A) purchase and import heavy beer into the state;
             3040          (B) store heavy beer in an approved warehouse; and
             3041          (C) sell and distribute heavy beer directly to a liquor retailer, as defined in Section
             3042      32A-11-202 .
             3043          (2) (a) A person may not import, purchase, store, sell, or distribute beer or heavy beer
             3044      to [retailers] a retailer or act in any way as a [beer] wholesaler unless the person has been
             3045      issued a beer wholesaler's license by the commission in accordance with this section.
             3046          (b) Nothing in this section precludes a small brewer from selling [beer it has
             3047      manufactured directly] to a licensed beer retailer[.] the following that the brewer manufactures:
             3048          (i) beer; or
             3049          (ii) qualifying heavy beer.
             3050          (c) Violation of this Subsection (2) is a class A misdemeanor.
             3051          (3) The commission may prescribe by policy, directive, or rule, consistent with this
             3052      title, the general operational requirements of [wholesaling licensees] a beer wholesaler licensee
             3053      relating to physical facilities, conditions of purchase, storage, sale, importation, distribution, or
             3054      transportation of beer or heavy beer within the state.
             3055          Section 21. Section 32A-11-102 is amended to read:
             3056           32A-11-102. Application and renewal requirements.
             3057          (1) A person seeking a beer wholesaling license under this chapter shall file a written
             3058      application with the department, in a form prescribed by the department. The application shall
             3059      be accompanied by:
             3060          (a) a nonrefundable $250 application fee;
             3061          (b) an initial license fee of $2,000, which is refundable if a license is not granted;
             3062          (c) written consent of the local authority;
             3063          (d) a copy of the applicant's current business license;
             3064          (e) a bond as specified in Section 32A-11-105 ;
             3065          (f) evidence that the applicant is carrying public liability insurance in an amount and


             3066      form satisfactory to the department;
             3067          (g) a signed consent form stating that the beer wholesaler licensee will permit any
             3068      authorized representative of the commission, department, or any peace officer unrestricted right
             3069      to enter the licensed premises;
             3070          (h) a statement of:
             3071          (i) the brands of beer the applicant is authorized to sell and distribute;
             3072          [(i) a statement of all] (ii) the geographical areas in which the applicant is authorized
             3073      to sell and distribute beer; and
             3074          (iii) if the beer wholesaler licensee is in compliance with Part 2, Heavy Beer
             3075      Wholesaling Act:
             3076          (A) the brands of heavy beer that the beer wholesaler licensee is authorized to sell and
             3077      distribute; and
             3078          (B) the one or more geographical areas in which the beer wholesaler licensee is
             3079      authorized to sell and distribute heavy beer;
             3080          [(j)] (i) in the case of an applicant that is a partnership, corporation, or limited liability
             3081      company, proper verification evidencing that the person or persons signing the beer
             3082      wholesaling license application are authorized to so act on behalf of the partnership,
             3083      corporation, or limited liability company; and
             3084          [(k)] (j) any other documents and evidence as the department may direct.
             3085          (2) (a) (i) [All] A beer wholesaling [licenses expire] license expires on December 31 of
             3086      each year.
             3087          (ii) A person desiring to renew that person's beer wholesaling license shall submit by
             3088      no later than November 30 of the year the license expires:
             3089          (A) a completed renewal application to the department; and
             3090          (B) a renewal fee in the following amount:
             3091          Case Sales in Previous License Year for the Licensee            Renewal Fee
             3092          under 500,000 cases                                $1,000
             3093          equals or exceeds 500,000 cases but less than 1,000,000 cases        $2,000
             3094          equals or exceeds 1,000,000 cases                        $3,000.
             3095          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             3096      license effective on the date the existing license expires.


             3097          (iv) Renewal applications shall be in a form prescribed by the department.
             3098          (b) The annual renewal fee prescribed in this Subsection (2) is independent of any like
             3099      license fee which may be assessed by the local authority of the city or county in which the
             3100      wholesaler's warehouse is located. Any local fees may not exceed $300. Payment of local fees
             3101      shall be made directly to the local authority assessing the local fees.
             3102          (3) To ensure compliance with Subsection 32A-11-106 (7), the commission may
             3103      suspend or revoke a beer wholesaling license if a beer [wholesaling] wholesale licensee does
             3104      not immediately notify the department of any change in:
             3105          (a) ownership of the beer wholesaler licensee;
             3106          (b) for a corporate owner, the:
             3107          (i) corporate officers or directors; or
             3108          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             3109      corporation; or
             3110          (c) for a limited liability company:
             3111          (i) managers; or
             3112          (ii) members owning at least 20% of the limited liability company.
             3113          Section 22. Section 32A-11-103 is amended to read:
             3114           32A-11-103. Qualifications.
             3115          (1) (a) The commission may not issue a beer wholesaling license to any person who
             3116      has been convicted of:
             3117          (i) a felony under any federal or state law;
             3118          (ii) [any] a violation of any federal or state law or local ordinance concerning the sale,
             3119      manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
             3120      [products] product;
             3121          (iii) [any] a crime involving moral turpitude; or
             3122          (iv) on two or more occasions within the five years before the day on which the license
             3123      is granted, driving under the influence of alcohol, any drug, or the combined influence of
             3124      alcohol and any drug.
             3125          (b) In the case of a partnership, corporation, or limited liability company, the
             3126      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             3127      offense described in Subsection (1)(a):


             3128          (i) a partner;
             3129    &nbs