S.B. 187

1

ALCOHOL AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John L. Valentine
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Alcoholic Beverage Control Act.
10 Highlighted Provisions:
11 This bill:
12 . amends definitional provisions;
13 . addresses the nature of an adjudicative proceeding as a civil action including the
14 burden of proof and the general applicability of mens rea requirements;
15 . adjusts quotas;
16 . addresses proximity for a restaurant liquor or limited restaurant license;
17 . addresses dispensing and storage by a restaurant, including providing for a
18 transition;
19 . changes the insurance and liability limits related to dramshop;
20 . modifies the definition of a "convention center";
21 . creates a resort license including:
22 . defining terms;
23 . providing for licensing, including the creation of sublicenses;
24 . establishing a resort amenities sublicense;
25 . imposing operational requirements for a resort license;
26 . addressing the application of operational requirements to a sublicense;
27 . providing for enforcement with relation to a resort license or a sublicense;

28 . addressing the application of the Nuisance Licensee Act to a resort license or
29 sublicense;
30 . providing for the enforcement of criminal penalties; and
31 . expanding protections for employees to encompass employees of a resort
32 licensee;
33 . clarifies the application of criminal procedures, principles, and penalties;
34 . provides for a study of penalties related to minors; and
35 . makes technical and conforming changes.
36 Monies Appropriated in this Bill:
37 None
38 Other Special Clauses:
39 This bill provides an effective date.
40 Utah Code Sections Affected:
41 AMENDS:
42 32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
43 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
44 32A-1-115, as last amended by Laws of Utah 2008, Chapter 382
45 32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
46 32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
47 32A-4-101, as last amended by Laws of Utah 2008, Chapter 391
48 32A-4-102, as last amended by Laws of Utah 2008, Chapter 391
49 32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
50 32A-4-202, as last amended by Laws of Utah 2004, Chapter 268
51 32A-4-302, as last amended by Laws of Utah 2008, Chapter 391
52 32A-4-303, as last amended by Laws of Utah 2008, Chapter 391
53 32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
54 32A-4-401, as last amended by Laws of Utah 2008, Chapter 391
55 32A-4-402, as last amended by Laws of Utah 2008, Chapter 391
56 32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
57 32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
58 32A-9-103, as last amended by Laws of Utah 2008, Chapter 382

59 32A-10-202, as last amended by Laws of Utah 2008, Chapter 391
60 32A-12-101, as renumbered and amended by Laws of Utah 1990, Chapter 23
61 32A-12-102, as last amended by Laws of Utah 2004, Chapter 268
62 32A-12-104, as last amended by Laws of Utah 2007, Chapter 322
63 32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
64 32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
65 32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
66 32A-14a-102, as last amended by Laws of Utah 2008, Chapter 3
67 32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
68 ENACTS:
69 32A-1-124, Utah Code Annotated 1953
70 32A-4a-101, Utah Code Annotated 1953
71 32A-4a-102, Utah Code Annotated 1953
72 32A-4a-201, Utah Code Annotated 1953
73 32A-4a-202, Utah Code Annotated 1953
74 32A-4a-203, Utah Code Annotated 1953
75 32A-4a-204, Utah Code Annotated 1953
76 32A-4a-205, Utah Code Annotated 1953
77 32A-4a-301, Utah Code Annotated 1953
78 32A-4a-302, Utah Code Annotated 1953
79 32A-4a-303, Utah Code Annotated 1953
80 32A-4a-304, Utah Code Annotated 1953
81 32A-4a-305, Utah Code Annotated 1953
82 32A-4a-401, Utah Code Annotated 1953
83 32A-4a-402, Utah Code Annotated 1953
84 32A-4a-501, Utah Code Annotated 1953
85 32A-4a-502, Utah Code Annotated 1953
86 32A-4a-503, Utah Code Annotated 1953
87 Uncodified Material Affected:
88 ENACTS UNCODIFIED MATERIAL
89

90 Be it enacted by the Legislature of the state of Utah:
91 Section 1. Section 32A-1-105 is amended to read:
92 32A-1-105. Definitions.
93 As used in this title:
94 (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
95 at retail, for consumption on its premises located at an international airport with a United States
96 Customs office on the premises of the international airport.
97 (2) "Alcoholic beverage" means the following as the term is defined in this section:
98 (a) beer;
99 (b) flavored malt beverage; and
100 (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
101 (3) (a) "Alcoholic product" means a product that:
102 (i) contains at least .5% of alcohol by volume; and
103 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
104 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
105 in an amount greater than the amount prescribed in Subsection (3)(a)(i).
106 (b) "Alcoholic product" does not include any of the following common items that
107 otherwise come within the definition of an alcoholic product:
108 (i) except as provided in Subsection (3)(c), extract;
109 (ii) vinegar;
110 (iii) cider;
111 (iv) essence;
112 (v) tincture;
113 (vi) food preparation; or
114 (vii) an over-the-counter drug or medicine.
115 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
116 product when it is used as a flavoring in the manufacturing of an alcoholic product.
117 (4) (a) ["Bar"] Except as provided in Subsection (4)(b), "bar" means a counter or
118 similar structure:
119 [(a)] (i) at which an alcoholic beverage or an alcoholic product is:
120 [(i)] (A) stored; or

121 [(ii)] (B) dispensed; or
122 [(b)] (ii) from which an alcoholic beverage is served.
123 (b) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
124 3, Limited Restaurant Licenses:
125 (i) except as provided in Subsection (4)(b)(ii), "bar" means a level surface or structure
126 on the premises of a restaurant:
127 (A) at which an alcoholic beverage or alcoholic product is:
128 (I) stored; or
129 (II) dispensed; or
130 (B) from which an alcoholic beverage is served; and
131 (ii) "bar" does not include a surface or structure on the premises of a restaurant that is
132 located in a kitchen or other segregated preparation area that is:
133 (A) not visible to a patron of a restaurant; and
134 (B) outside of an area used for:
135 (I) dining;
136 (II) staging; or
137 (III) as a lobby or waiting area.
138 (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
139 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
140 volume or 3.2% by weight; and
141 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
142 (b) Beer may or may not contain hops or other vegetable products.
143 (c) Beer includes a product that:
144 (i) contains alcohol in the percentages described in Subsection (5)(a); and
145 (ii) is referred to as:
146 (A) beer;
147 (B) ale;
148 (C) porter;
149 (D) stout;
150 (E) lager; or
151 (F) a malt or malted beverage.

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

183 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
184 beverage.
185 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
186 a bus company to a group of persons pursuant to a common purpose:
187 (a) under a single contract;
188 (b) at a fixed charge in accordance with the bus company's tariff; and
189 (c) for the purpose of giving the group of persons the exclusive use of the passenger
190 bus, coach, or other motor vehicle and a driver to travel together to one or more specified
191 destinations.
192 (11) "Church" means a building:
193 (a) set apart for the purpose of worship;
194 (b) in which religious services are held;
195 (c) with which clergy is associated; and
196 (d) which is tax exempt under the laws of this state.
197 (12) "Club" and "private club" means any of the following organized primarily for the
198 benefit of its members:
199 (a) a social club;
200 (b) a recreational association;
201 (c) a fraternal association;
202 (d) an athletic association; or
203 (e) a kindred association.
204 (13) "Commission" means the Alcoholic Beverage Control Commission.
205 (14) "Community location" means:
206 (a) a public or private school;
207 (b) a church;
208 (c) a public library;
209 (d) a public playground; or
210 (e) a public park.
211 (15) "Community location governing authority" means:
212 (a) the governing body of the community location; or
213 (b) if the commission does not know who is the governing body of a community

214 location, a person who appears to the commission to have been given on behalf of the
215 community location authority to prohibit an activity at the community location.
216 (16) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
217 3, Limited Restaurant Licenses:
218 (a) "counter" means a level surface or structure in a dining area of a restaurant where
219 seating is provided to a patron for service of food; and
220 (b) "counter" does not include a level surface or structure at which an alcoholic
221 beverage or alcoholic product is:
222 (i) stored; or
223 (ii) dispensed.
224 [(16)] (17) "Department" means the Department of Alcoholic Beverage Control.
225 [(17)] (18) "Disciplinary proceeding" means an adjudicative proceeding permitted
226 under this title:
227 (a) against:
228 (i) a permittee;
229 (ii) a licensee;
230 (iii) a manufacturer;
231 (iv) a supplier;
232 (v) an importer;
233 (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
234 or
235 (vii) an officer, employee, or agent of:
236 (A) a person listed in Subsections [(17)] (18)(a)(i) through (vi); or
237 (B) a package agent; and
238 (b) that is brought on the basis of a violation of this title.
239 [(18)] (19) "Director," unless the context requires otherwise, means the director
240 appointed under Section 32A-1-108 .
241 (20) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
242 3, Limited Restaurant Licenses, "dispense" means:
243 (a) drawing of an alcoholic beverage or alcoholic product from an area where it is
244 stored; and

245 (b) using the alcoholic beverage or alcoholic product described in Subsection (20)(a)
246 on the premises of the restaurant to mix or prepare an alcoholic beverage for service to a patron
247 of the restaurant.
248 [(19)] (21) "Distressed merchandise" means an alcoholic beverage in the possession of
249 the department that is saleable, but for some reason is unappealing to the public.
250 [(20)] (22) "Flavored malt beverage" means a beverage:
251 (a) that contains at least .5% alcohol by volume;
252 (b) that is treated by processing, filtration, or another method of manufacture that is not
253 generally recognized as a traditional process in the production of a beer as described in 27
254 C.F.R. Sec. 25.55;
255 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
256 extract; and
257 (d) (i) for which the producer is required to file a formula for approval with the United
258 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
259 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
260 [(21)] (23) "Guest" means a person accompanied by an active member or visitor of a
261 club who enjoys only those privileges derived from the host for the duration of the visit to the
262 club.
263 [(22)] (24) (a) "Heavy beer" means a product that:
264 (i) contains more than 4% alcohol by volume; and
265 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
266 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
267 [(23)] (25) "Hosted bar" means the service of an alcoholic beverage:
268 (a) without charge; and
269 (b) at a:
270 (i) banquet; or
271 (ii) privately hosted event.
272 [(24)] (26) "Identification card" means an identification card issued under Title 53,
273 Chapter 3, Part 8, Identification Card Act.
274 [(25)] (27) "Interdicted person" means a person to whom the sale, gift, or provision of
275 an alcoholic beverage is prohibited by:

276 (a) law; or
277 (b) court order.
278 [(26)] (28) "Intoxicated" means that [to a degree that is unlawful under Section
279 76-9-701 ] a person [is under the influence of]:
280 (a) is significantly impaired as to the person's mental or physical functions as a result of
281 the use of:
282 [(a)] (i) an alcoholic beverage;
283 [(b)] (ii) a controlled substance;
284 [(c)] (iii) a substance having the property of releasing toxic vapors; or
285 [(d)] (iv) a combination of Subsections [(26)] (28)(a)(i) through [(c).] (iii); or
286 (b) exhibits plain and easily observed outward manifestations of behavior or physical
287 signs produced by the over consumption of an alcoholic beverage.
288 (29) "Invitee" is as defined in Section 32A-4a-102 .
289 [(27)] (30) "Licensee" means a person issued a license by the commission to sell,
290 manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
291 controlled by the person.
292 [(28)] (31) "Limousine" means a motor vehicle licensed by the state or a local
293 authority, other than a bus or taxicab:
294 (a) in which the driver and a passenger are separated by a partition, glass, or other
295 barrier; and
296 (b) that is provided by a company to one or more individuals at a fixed charge in
297 accordance with the company's tariff for the purpose of giving the one or more individuals the
298 exclusive use of the limousine and a driver to travel to one or more specified destinations.
299 [(29)] (32) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
300 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
301 vinous, or fermented, or other drink, or drinkable liquid that:
302 (A) contains at least .5% alcohol by volume; and
303 (B) is suitable to use for beverage purposes.
304 (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
305 (b) "Liquor" does not include a beverage defined as a beer.
306 [(30)] (33) "Local authority" means:

307 (a) the governing body of the county if the premises are located in an unincorporated
308 area of a county; or
309 (b) the governing body of the city or town if the premises are located in an incorporated
310 city or a town.
311 [(31)] (34) "Manufacture" means to distill, brew, rectify, mix, compound, process,
312 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
313 others.
314 [(32)] (35) "Member" means a person who, after paying regular dues, has full
315 privileges of a club under this title.
316 [(33)] (36) (a) "Military installation" means a base, air field, camp, post, station, yard,
317 center, or homeport facility for a ship:
318 (i) (A) under the control of the United States Department of Defense; or
319 (B) of the National Guard;
320 (ii) that is located within the state; and
321 (iii) including a leased facility.
322 (b) "Military installation" does not include a facility used primarily for:
323 (i) civil works;
324 (ii) a rivers and harbors project; or
325 (iii) a flood control project.
326 [(34)] (37) "Minor" means an individual under the age of 21 years.
327 [(35)] (38) "Nude," "nudity," or "state of nudity" means:
328 (a) the appearance of:
329 (i) the nipple or areola of a female human breast;
330 (ii) a human genital;
331 (iii) a human pubic area; or
332 (iv) a human anus; or
333 (b) a state of dress that fails to opaquely cover:
334 (i) the nipple or areola of a female human breast;
335 (ii) a human genital;
336 (iii) a human pubic area; or
337 (iv) a human anus.

338 [(36)] (39) "Outlet" means a location other than a state store or package agency where
339 an alcoholic beverage is sold pursuant to a license issued by the commission.
340 [(37)] (40) "Package" means any of the following containing liquor:
341 (a) a container;
342 (b) a bottle;
343 (c) a vessel; or
344 (d) other receptacle.
345 [(38)] (41) "Package agency" means a retail liquor location operated:
346 (a) under a contractual agreement with the department; and
347 (b) by a person:
348 (i) other than the state; and
349 (ii) who is authorized by the commission to sell package liquor for consumption off the
350 premises of the package agency.
351 [(39)] (42) "Package agent" means a person permitted by the commission to operate a
352 package agency pursuant to a contractual agreement with the department to sell liquor from
353 premises that the package agent shall provide and maintain.
354 [(40)] (43) "Permittee" means a person issued a permit by the commission to perform
355 an act or exercise a privilege as specifically granted in the permit.
356 [(41)] (44) "Person" means an individual, partnership, firm, corporation, limited
357 liability company, association, business trust, or other form of business enterprise, including a
358 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
359 more limited meaning is disclosed by the context.
360 [(42)] (45) "Premises" means a building, enclosure, room, or equipment used in
361 connection with the sale, storage, service, manufacture, distribution, or consumption of an
362 alcoholic product, unless otherwise defined in this title or in the rules adopted by the
363 commission.
364 [(43)] (46) "Prescription" means a writing in legal form, signed by a physician or
365 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
366 [(44)] (47) (a) "Privately hosted event" or "private social function" means a specific
367 social, business, or recreational event:
368 (i) for which an entire room, area, or hall is leased or rented in advance by an identified

369 group; and
370 (ii) that is limited in attendance to people who are specifically designated and their
371 guests.
372 (b) "Privately hosted event" and "private social function" does not include an event to
373 which the general public is invited, whether for an admission fee or not.
374 [(45)] (48) (a) "Proof of age" means:
375 (i) an identification card;
376 (ii) an identification that:
377 (A) is substantially similar to an identification card;
378 (B) is issued in accordance with the laws of a state other than Utah in which the
379 identification is issued;
380 (C) includes date of birth; and
381 (D) has a picture affixed;
382 (iii) a valid driver license certificate that:
383 (A) includes date of birth;
384 (B) has a picture affixed; and
385 (C) is issued:
386 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
387 (II) in accordance with the laws of the state in which it is issued;
388 (iv) a military identification card that:
389 (A) includes date of birth; and
390 (B) has a picture affixed; or
391 (v) a valid passport.
392 (b) "Proof of age" does not include a driving privilege card issued in accordance with
393 Section 53-3-207 .
394 [(46)] (49) (a) "Public building" means a building or permanent structure owned or
395 leased by the state, a county, or local government entity that is used for:
396 (i) public education;
397 (ii) transacting public business; or
398 (iii) regularly conducting government activities.
399 (b) "Public building" does not mean or refer to a building owned by the state or a

400 county or local government entity when the building is used by a person, in whole or in part,
401 for a proprietary function.
402 [(47)] (50) "Representative" means an individual who is compensated by salary,
403 commission, or other means for representing and selling an alcoholic beverage product of a
404 manufacturer, supplier, or importer of liquor including:
405 (a) wine;
406 (b) heavy beer; or
407 (c) [on or after October 1, 2008,] a flavored malt beverage.
408 [(48)] (51) "Residence" means a person's principal place of abode within Utah.
409 (52) "Resident," in relation to a resort, is as defined in Section 32A-4a-102 .
410 (53) "Resort" is as defined in Section 32A-4a-102 .
411 [(49)] (54) "Restaurant" means a business establishment:
412 (a) where a variety of foods is prepared and complete meals are served to the general
413 public;
414 (b) located on a premises having adequate culinary fixtures for food preparation and
415 dining accommodations; and
416 (c) that is engaged primarily in serving meals to the general public.
417 [(50)] (55) "Retailer" means a person engaged in the sale or distribution of an alcoholic
418 beverage to a consumer.
419 [(51)] (56) (a) "Sample" includes:
420 (i) a department sample; and
421 (ii) an industry representative sample.
422 (b) "Department sample" means liquor that is placed in the possession of the
423 department for testing, analysis, and sampling including:
424 (i) wine;
425 (ii) heavy beer; or
426 (iii) [on or after October 1, 2008,] a flavored malt beverage.
427 (c) "Industry representative sample" means liquor that is placed in the possession of the
428 department:
429 (i) for testing, analysis, and sampling by a local industry representative on the premises
430 of the department to educate the local industry representative of the quality and characteristics

431 of the product; and
432 (ii) including:
433 (A) wine;
434 (B) heavy beer; or
435 (C) [on or after October 1, 2008,] a flavored malt beverage.
436 [(52)] (57) (a) "School" means a building used primarily for the general education of
437 minors.
438 (b) "School" does not include:
439 (i) a nursery school;
440 (ii) an infant day care center; or
441 (iii) a trade or technical school.
442 [(53)] (58) "Sell," "sale," and "to sell" means a transaction, exchange, or barter
443 whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
444 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
445 obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
446 employee, unless otherwise defined in this title or the rules made by the commission.
447 [(54)] (59) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
448 which opaque clothing covers no more than:
449 (a) the nipple and areola of the female human breast in a shape and color other than the
450 natural shape and color of the nipple and areola; and
451 (b) the human genitals, pubic area, and anus:
452 (i) with no less than the following at its widest point:
453 (A) four inches coverage width in the front of the human body; and
454 (B) five inches coverage width in the back of the human body; and
455 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
456 [(55)] (60) "Sexually oriented entertainer" means a person who while in a state of
457 seminudity appears at or performs:
458 (a) for the entertainment of one or more patrons;
459 (b) on the premises of:
460 (i) a class D private club license as defined in [Subsection] Section 32A-5-101 [(3)]; or
461 (ii) a tavern;

462 (c) on behalf of or at the request of the licensee described in Subsection [(55)] (60)(b);
463 (d) on a contractual or voluntary basis; and
464 (e) whether or not the person is designated:
465 (i) an employee of the licensee described in Subsection [(55)] (60)(b);
466 (ii) an independent contractor of the licensee described in Subsection [(55)] (60)(b);
467 (iii) an agent of the licensee described in Subsection [(55)] (60)(b); or
468 (iv) otherwise of the licensee described in Subsection [(55)] (60)(b).
469 [(56)] (61) "Small brewer" means a brewer who manufactures less than 60,000 barrels
470 of beer, heavy beer, and flavored malt beverages per year.
471 [(57)] (62) (a) "Spirituous liquor" means liquor that is distilled.
472 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
473 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
474 [(58)] (63) (a) "State label" means the official label designated by the commission
475 affixed to a liquor container sold in the state.
476 (b) "State label" includes the department identification mark and inventory control
477 number.
478 [(59)] (64) (a) "State store" means a facility for the sale of package liquor:
479 (i) located on premises owned or leased by the state; and
480 (ii) operated by a state employee.
481 (b) "State store" does not apply to a:
482 (i) licensee;
483 (ii) permittee; or
484 (iii) package agency.
485 (65) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
486 3, Limited Restaurant Licenses:
487 (a) "Storage area" means an area on the premises of a restaurant where a licensee
488 stores an alcoholic beverage or alcoholic product.
489 (b) "Store" means to place or maintain in a location an alcoholic beverage or alcoholic
490 product from which a person draws to prepare an alcoholic beverage for service to a patron of
491 the restaurant.
492 (66) "Sublicense" is as defined in Section 32A-4a-102 .

493 [(60)] (67) "Supplier" means a person selling an alcoholic beverage to the department.
494 [(61)] (68) (a) "Tavern" means a business establishment that is:
495 (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
496 establishment's premises; and
497 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
498 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
499 revenue of the sale of food, although food need not be sold in the establishment:
500 (i) a beer bar;
501 (ii) a parlor;
502 (iii) a lounge;
503 (iv) a cabaret; or
504 (v) a nightclub.
505 [(62)] (69) "Temporary domicile" means the principal place of abode within Utah of a
506 person who does not have a present intention to continue residency within Utah permanently or
507 indefinitely.
508 [(63)] (70) "Unsaleable liquor merchandise" means merchandise that:
509 (a) is unsaleable because the merchandise is:
510 (i) unlabeled;
511 (ii) leaky;
512 (iii) damaged;
513 (iv) difficult to open; or
514 (v) partly filled;
515 (b) is in a container:
516 (i) having faded labels or defective caps or corks;
517 (ii) in which the contents are:
518 (A) cloudy;
519 (B) spoiled; or
520 (C) chemically determined to be impure; or
521 (iii) that contains:
522 (A) sediment; or
523 (B) a foreign substance; or

524 (c) is otherwise considered by the department as unfit for sale.
525 [(64)] (71) "Visitor" means an individual that in accordance with Section 32A-5-107
526 holds limited privileges in a private club by virtue of a visitor card.
527 [(65)] (72) "Warehouser" means a person, other than a licensed manufacturer, engaged
528 in the importation for sale, storage, or distribution of liquor regardless of amount.
529 [(66)] (73) (a) "Wholesaler" means a person engaged in the importation for sale, or in
530 the sale of beer in wholesale or jobbing quantities to one or more retailers.
531 (b) Notwithstanding Subsection [(66)] (73)(a), "wholesaler" does not include a small
532 brewer selling beer manufactured by that brewer.
533 [(67)] (74) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
534 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
535 another ingredient is added.
536 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
537 provided in this title.
538 Section 2. Section 32A-1-107 is amended to read:
539 32A-1-107. Powers and duties of the commission.
540 (1) The commission shall:
541 (a) act as a general policymaking body on the subject of alcoholic product control;
542 (b) adopt and issue policies, directives, rules, and procedures;
543 (c) set policy by written rules that establish criteria and procedures for:
544 (i) granting, denying, suspending, or revoking [permits, licenses, certificates of
545 approval, and package agencies] a permit, license, certificate of approval, or package agency;
546 (ii) controlling liquor merchandise inventory including:
547 (A) listing and delisting [products] a product;
548 (B) the procedures for testing a new [products] product;
549 (C) purchasing policy;
550 (D) turnover requirements for a regularly coded [products] product to be continued;
551 and
552 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
553 (iii) determining the location of a state [stores, package agencies, and outlets] store,
554 package agency, or outlet;

555 (d) decide within the limits and under the conditions imposed by this title, the number
556 and location of state stores, package agencies, and outlets established in the state;
557 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
558 certificates of approval, and package agencies for the purchase, sale, storage, service,
559 manufacture, distribution, and consumption of an alcoholic [products] product:
560 (i) a package [agencies] agency;
561 (ii) a restaurant [licenses] license;
562 (iii) an airport lounge [licenses] license;
563 (iv) a limited restaurant [licenses] license;
564 (v) an on-premise banquet [licenses] license;
565 (vi) a resort license, under which one or more sublicenses may be included;
566 [(vi)] (vii) a private club [licenses] license;
567 [(vii)] (viii) an on-premise beer retailer [licenses] license;
568 [(viii)] (ix) a temporary special event beer [permits] permit;
569 [(ix)] (x) a special use [permits] permit;
570 [(x)] (xi) a single event [permits] permit;
571 [(xi)] (xii) a manufacturing [licenses] license;
572 [(xii)] (xiii) a liquor warehousing [licenses] license;
573 [(xiii)] (xiv) a beer wholesaling [licenses] license; and
574 [(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
575 (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
576 package agencies, and outlets;
577 (g) issue and distribute price lists showing the price to be paid by [purchasers] a
578 purchaser for each class, variety, or brand of liquor kept for sale by the department;
579 (h) (i) require the director to follow sound management principles; and
580 (ii) require periodic reporting from the director to ensure that:
581 (A) sound management principles are being followed; and
582 (B) policies established by the commission are being observed;
583 (i) (i) receive, consider, and act in a timely manner upon [all] the reports,
584 recommendations, and matters submitted by the director to the commission; and
585 (ii) do [all] the things necessary to support the department in properly performing the

586 department's duties and responsibilities;
587 (j) obtain temporarily and for special purposes the services of [experts and persons] an
588 expert or person engaged in the practice of a profession or who possess any needed skills,
589 talents, or abilities if:
590 (i) considered expedient; and
591 (ii) approved by the governor;
592 (k) prescribe the duties of a departmental [officials] official authorized to assist the
593 commission in issuing [permits, licenses, certificates of approval, and package agencies] a
594 permit, license, certificate of approval, or package agency under this title;
595 (l) prescribe, consistent with this title, the fees payable for:
596 (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
597 certificate of approval, or package agency issued under this title; or
598 (ii) anything done or permitted to be done under this title;
599 (m) prescribe the conduct, management, and equipment of [any] premises upon which
600 an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
601 (n) make rules governing the credit terms of beer sales to retailers within the state;
602 (o) require that each of the following, where required in this title, display in a
603 prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
604 or drugs is a serious crime that is prosecuted aggressively in Utah.":
605 (i) a state store;
606 (ii) a permittee;
607 (iii) a licensee; and
608 (iv) a package agency; and
609 (p) subject to Subsection (4) and as provided in this title, impose fines against:
610 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
611 (1)(e); or
612 (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
613 package agent described in Subsection (1)(p)(i).
614 (2) The power of the commission to do the following is plenary, except as otherwise
615 provided by this title, and not subject to review:
616 (a) establish a state [stores] store;

617 (b) create a package [agencies] agency;
618 (c) grant authority to operate a package [agencies] agency; and
619 (d) grant or deny [permits, licenses, and certificates] a permit, license, or certificate of
620 approval.
621 (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
622 [any] a suspension or revocation [hearings] hearing required by law.
623 (4) (a) In [any] a case [where] when the commission is given the power to suspend
624 [any ] a permit, license, certificate of approval, or package agency the commission may impose
625 a fine in addition to or in lieu of suspension.
626 (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
627 (i) [any] a single Notice of Agency Action; or
628 (ii) a single action against a package agency.
629 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
630 for each violation.
631 Section 3. Section 32A-1-115 is amended to read:
632 32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
633 -- Distribution.
634 (1) As used in this section:
635 (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
636 Account created in this section.
637 (b) "Alcohol-related offense" means:
638 (i) a violation of:
639 (A) Section 41-6a-502 ; or
640 (B) an ordinance that complies with the requirements of:
641 (I) Subsection 41-6a-510 (1); or
642 (II) Section 76-5-207 ; or
643 (ii) an offense involving the:
644 (A) illegal sale of alcohol;
645 (B) illegal distribution of alcohol;
646 (C) illegal transportation of alcohol;
647 (D) illegal possession of alcohol; or

648 (E) illegal consumption of alcohol.
649 (c) "Annual conviction time period" means the time period that:
650 (i) begins on July 1 and ends on June 30; and
651 (ii) immediately precedes the fiscal year for which an appropriation under this section
652 is made.
653 (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
654 Coordinating Council created in Section 63M-7-301 .
655 (e) "Municipality" means:
656 (i) a city; or
657 (ii) a town.
658 (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
659 Beverage Enforcement and Treatment Restricted Account."
660 (b) The account shall be funded from:
661 (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
662 (ii) any appropriations made to the account by the Legislature; and
663 (iii) interest described in Subsection (2)(c).
664 (c) Interest earned on the account shall be deposited into the account.
665 (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
666 revenues in the account shall be used for statewide public purposes including promoting the
667 reduction of the harmful effects of over consumption of alcoholic beverages by adults and
668 alcohol consumption by minors by funding exclusively programs or projects related to
669 prevention, treatment, detection, prosecution, and control of violations of this title and other
670 offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
671 (ii) The portion distributed under this section to counties may also be used for the
672 confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
673 contributing factor.
674 (iii) [Any] A municipality or county entitled to receive [funds] monies shall use the
675 [funds] monies exclusively as required by this Subsection (2)(d).
676 (iv) The appropriations provided for under Subsection (3) are:
677 (A) intended to supplement the budget of the appropriate agencies of each municipality
678 and county within the state to enable the municipalities and counties to more effectively fund

679 the programs and projects described in this Subsection (2)(d); and
680 (B) not intended to replace [funds] monies that would otherwise be allocated for the
681 programs and projects in this Subsection (2)(d).
682 (3) (a) The revenues deposited into the account shall be distributed to municipalities
683 and counties:
684 (i) to the extent appropriated by the Legislature except that the Legislature shall
685 appropriate each fiscal year an amount equal to at least the amount deposited in the account in
686 accordance with Section 59-15-109 ; and
687 (ii) as provided in this Subsection (3).
688 (b) The amount appropriated from the account shall be distributed as follows:
689 (i) 25% to municipalities and counties based upon the percentage of the state
690 population residing in each municipality and county;
691 (ii) 30% to municipalities and counties based upon each municipality's and county's
692 percentage of the statewide convictions for all alcohol-related offenses;
693 (iii) 20% to municipalities and counties based upon the percentage of all state stores,
694 package agencies, liquor licensees, and beer licensees in the state that are located in each
695 municipality and county; and
696 (iv) 25% to the counties for confinement and treatment purposes authorized by this
697 section based upon the percentage of the state population located in each county.
698 (c) (i) Except as provided in Subsection (3)(c)(iii), a municipality that does not have a
699 law enforcement agency may not receive monies under this section.
700 (ii) The State Tax Commission:
701 (A) may not distribute the monies the municipality would receive but for the
702 municipality not having a law enforcement agency to that municipality; and
703 (B) shall distribute the monies that the municipality would have received but for it not
704 having a law enforcement agency to the county in which the municipality is located for use by
705 the county in accordance with this section.
706 (iii) Notwithstanding Subsections (3)(c)(i) and (ii), if the coordinating council finds
707 that a municipality described in Subsection (3)(c)(i) demonstrates that the municipality can use
708 the monies that the municipality is otherwise eligible to receive in accordance with this section,
709 the coordinating council may direct the State Tax Commission to distribute the money to the

710 municipality.
711 (4) To determine the distributions required by Subsection (3)(b)(ii), the State Tax
712 Commission shall annually:
713 (a) for an annual conviction time period:
714 (i) multiply by two the total number of convictions in the state obtained during the
715 annual conviction time period for violation of:
716 (A) Section 41-6a-502 ; or
717 (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
718 Section 76-5-207 ; and
719 (ii) add to the number calculated under Subsection (4)(a)(i) the number of convictions
720 obtained during the annual conviction time period for all alcohol-related offenses other than the
721 alcohol-related offenses described in Subsection (4)(a)(i);
722 (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
723 obtained in Subsection (4)(a); and
724 (c) multiply the amount calculated under Subsection (4)(b), by the number of
725 convictions obtained in each municipality and county during the annual conviction time period
726 for alcohol-related offenses.
727 (5) For purposes of this section:
728 (a) the number of state stores, package agencies, and licensees located within the limits
729 of each municipality and county:
730 (i) is the number determined by the department to be so located;
731 (ii) includes all:
732 (A) private clubs;
733 (B) restaurants;
734 (C) limited restaurants;
735 (D) on-premise banquet licenses;
736 (E) airport lounges;
737 (F) resort licenses;
738 [(F)] (G) package agencies; and
739 [(G)] (H) state stores; and
740 (iii) does not include on-premise beer retailer licensees;

741 (b) the number of state stores, package agencies, and licensees in a county consists only
742 of that number located within unincorporated areas of the county;
743 (c) population figures shall be determined according to the most current population
744 estimates prepared by the Utah Population Estimates Committee;
745 (d) a county's population figure for the 25% distribution to municipalities and counties
746 under Subsection (3)(b)(i) shall be determined only with reference to the population in the
747 unincorporated areas of the county;
748 (e) a county's population figure under Subsection (3)(b)(iv) for the 25% distribution to
749 counties only shall be determined with reference to the total population in the county, including
750 that of municipalities;
751 (f) a conviction occurs in the municipality or county that actually prosecutes the
752 offense to judgment; and
753 (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
754 occur in the municipality or county that, except for the guilty plea, would have prosecuted the
755 offense.
756 (6) By not later than September 1 each year:
757 (a) the state court administrator shall certify to the State Tax Commission the number
758 of convictions obtained for alcohol-related offenses in each municipality or county in the state
759 during the annual conviction time period; and
760 (b) the coordinating council shall notify the State Tax Commission of any municipality
761 that does not have a law enforcement agency.
762 (7) By not later than December 1 of each year, the coordinating council shall notify the
763 State Tax Commission for the fiscal year of appropriation of:
764 (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
765 (b) any county that may receive a distribution allocated to a municipality described in
766 Subsection (3)(c)(ii);
767 (c) any municipality or county that may not receive a distribution because the
768 coordinating council has suspended the payment under Subsection (10)(a)(i); and
769 (d) any municipality or county that receives a distribution because the suspension of
770 payment has been cancelled under Subsection (10)(a)(ii).
771 (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax

772 Commission shall annually distribute to each municipality and county the portion of the
773 appropriation that the municipality or county is eligible to receive under this section, except for
774 any municipality or county that the coordinating council notifies the State Tax Commission in
775 accordance with Subsection (7) may not receive a distribution in that fiscal year.
776 (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
777 counties in applying for distributions under this section.
778 (ii) The forms described in this Subsection (8) may require the submission of
779 information the State Tax Commission considers necessary to enable the State Tax
780 Commission to comply with this section.
781 (9) A municipality or county that receives any monies under this section during a fiscal
782 year shall by no later than October 1 following the fiscal year:
783 (a) report to the coordinating council:
784 (i) the programs or projects of the municipality or county that receive monies under
785 this section;
786 (ii) if the monies for programs or projects were exclusively used as required by
787 Subsection (2)(d);
788 (iii) indicators of whether the programs or projects that receive monies under this
789 section are effective; and
790 (iv) if [any] monies received under this section were not expended by the municipality
791 or county; and
792 (b) provide the coordinating council a statement signed by the chief executive officer
793 of the county or municipality attesting that the monies received under this section were used in
794 addition to [any] monies appropriated or otherwise available for the county's or municipality's
795 law enforcement and were not used to supplant those monies.
796 (10) (a) The coordinating council may, by a majority vote:
797 (i) suspend future payments under Subsection (8) to a municipality or county that:
798 (A) does not file a report that meets the requirements of Subsection (9); or
799 (B) the coordinating council finds does not use the monies as required by Subsection
800 (2)(d) on the basis of the report filed by the municipality or county under Subsection (9); and
801 (ii) cancel a suspension under Subsection (10)(a)(i).
802 (b) The State Tax Commission shall:

803 (i) retain monies that a municipality or county does not receive under Subsection
804 (10)(a); and
805 (ii) notify the coordinating council of the balance of retained monies under this
806 Subsection (10)(b) after the annual distribution under Subsection (8).
807 (11) (a) Subject to the requirements of this Subsection (11), the coordinating council
808 shall award the balance of retained monies under Subsection (10)(b):
809 (i) as prioritized by majority vote of the coordinating council; and
810 (ii) as grants to:
811 (A) a county;
812 (B) a municipality;
813 (C) the Department of Alcoholic Beverage Control;
814 (D) the Department of Human Services;
815 (E) the Department of Public Safety; or
816 (F) the Utah State Office of Education.
817 (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
818 council shall notify the State Tax Commission of [any] grants awarded under this Subsection
819 (11).
820 (c) The State Tax Commission shall make payments of [grants] a grant:
821 (i) upon receiving notice as provided under Subsection (11)(b); and
822 (ii) by not later than June 30 of the fiscal year of the appropriation.
823 (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
824 exclusively for programs or projects described in Subsection (2)(d).
825 Section 4. Section 32A-1-119 is amended to read:
826 32A-1-119. Disciplinary proceedings -- Procedure.
827 (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
828 final unappealable judgment or order is issued.
829 (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
830 proceeding to inquire into a matter necessary and proper for the administration of this title and
831 rules adopted under this title:
832 (i) the commission;
833 (ii) a hearing examiner appointed by the commission for the purposes provided in

834 Subsection 32A-1-107 (3);
835 (iii) the director; and
836 (iv) the department.
837 (b) Except as provided in this section or Section 32A-3-106 , the following shall
838 comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
839 Procedures Act, in an adjudicative proceeding:
840 (i) the commission;
841 (ii) a hearing examiner appointed by the commission;
842 (iii) the director; and
843 (iv) the department.
844 (c) Except where otherwise provided by law, an adjudicative proceeding before the
845 commission or a hearing examiner appointed by the commission shall be:
846 (i) video or audio recorded; and
847 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
848 Open and Public Meetings Act.
849 (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
850 concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
851 Personnel Management Act.
852 (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
853 conducted in accordance with rules, policies, and procedures made by the commission,
854 director, or department.
855 (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
856 under the authority of the commission, which is responsible for rendering a final decision and
857 order on a disciplinary matter.
858 (b) (i) Nothing in this section precludes the commission from appointing a necessary
859 officer, including a hearing examiner, from within or without the department, to administer the
860 disciplinary proceeding process.
861 (ii) A hearing examiner appointed by the commission:
862 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
863 (B) shall submit to the commission a report including:
864 (I) findings of fact determined on the basis of a preponderance of the evidence

865 presented at the hearing;
866 (II) conclusions of law; and
867 (III) recommendations.
868 (c) Nothing in this section precludes the commission, after the commission renders its
869 final decision and order, from having the director prepare, issue, and cause to be served on the
870 parties the final written order on behalf of the commission.
871 (4) Subject to Section 32A-1-119.5 :
872 (a) The department may initiate a disciplinary proceeding described in Subsection
873 (4)(b) if the department receives:
874 (i) a report from a government agency, peace officer, examiner, or investigator alleging
875 that a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or
876 the rules of the commission;
877 (ii) a final adjudication of criminal liability against a person listed in Subsections
878 32A-1-105 [(17)](18)(a)(i) through (vii) based on an alleged violation of this title; or
879 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
880 Liability, against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) based
881 on an alleged violation of this title.
882 (b) The department may initiate a disciplinary proceeding if the department receives an
883 item listed in Subsection (4)(a) to determine:
884 (i) whether a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii)
885 violated this title or rules of the commission; and
886 (ii) if a violation is found, the appropriate sanction to be imposed.
887 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
888 (i) if required by law;
889 (ii) before revoking or suspending a permit, license, or certificate of approval issued
890 under this title; or
891 (iii) before imposing a fine against a person listed in Subsections
892 32A-1-105 [(17)](18)(a)(i) through (vii).
893 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
894 hearing after receiving proper notice is an admission of the charged violation.
895 (c) The validity of a disciplinary proceeding is not affected by the failure of a person to

896 attend or remain in attendance.
897 (d) The commission or an appointed hearing examiner shall preside over a disciplinary
898 proceeding hearing.
899 (e) A disciplinary proceeding hearing may be closed only after the commission or
900 hearing examiner makes a written finding that the public interest in an open hearing is clearly
901 outweighed by factors enumerated in the closure order.
902 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
903 hearing may:
904 (A) administer oaths or affirmations;
905 (B) take evidence;
906 (C) take a deposition within or without this state; and
907 (D) require by subpoena from a place within this state:
908 (I) the testimony of a person at a hearing; and
909 (II) the production of a book, record, paper, contract, agreement, document, or other
910 evidence considered relevant to the inquiry.
911 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
912 produce a book, paper, document, or tangible thing as required in the subpoena.
913 (iii) A witness subpoenaed or called to testify or produce evidence who claims a
914 privilege against self-incrimination may not be compelled to testify, but the commission or the
915 hearing examiner shall file a written report with the county attorney or district attorney in the
916 jurisdiction where the privilege is claimed or where the witness resides setting forth the
917 circumstance of the claimed privilege.
918 (iv) (A) A person is not excused from obeying a subpoena without just cause.
919 (B) A district court within the judicial district in which a person alleged to be guilty of
920 willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
921 the party issuing the subpoena, may issue an order requiring the person to:
922 (I) appear before the issuing party; and
923 (II) (Aa) produce documentary evidence if so ordered; or
924 (Bb) give evidence regarding the matter in question.
925 (C) Failure to obey an order of the court may be punished by the court as contempt.
926 (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing

927 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
928 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
929 recommend a penalty more severe than that initially sought by the department in the notice of
930 agency action.
931 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
932 shall be served upon the respective parties.
933 (iv) The respondent and the department shall be given reasonable opportunity to file a
934 written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
935 before final commission action.
936 (h) In a case heard by the commission, it shall issue its final decision and order in
937 accordance with Subsection (3).
938 (6) (a) The commission shall:
939 (i) render a final decision and order on a disciplinary action; and
940 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
941 (b) An order of the commission is considered final on the date the order becomes
942 effective.
943 (c) If the commission is satisfied that a person listed in Subsections
944 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or the commission's rules, in
945 accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
946 (i) suspend or revoke the permit, license, or certificate of approval;
947 (ii) impose a fine against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i)
948 through (vii);
949 (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
950 licensee, or certificate holder; or
951 (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
952 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
953 32A-1-107 (1)(p) and (4).
954 (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
955 licensee shall prominently post a sign provided by the department:
956 (A) during the suspension; and
957 (B) at the entrance of the premises of the permittee or licensee.

958 (ii) The sign required by this Subsection (6)(e) shall:
959 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
960 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
961 sold, served, furnished, or consumed on these premises during the period of suspension."; and
962 (B) include the dates of the suspension period.
963 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
964 to be posted under this Subsection (6)(e) during the suspension period.
965 (f) If a permit or license is revoked, the commission may order the revocation of a
966 compliance bond posted by the permittee or licensee.
967 (g) A permittee or licensee whose permit or license is revoked may not reapply for a
968 permit or license under this title for three years from the date on which the permit or license is
969 revoked.
970 (h) The commission shall transfer all costs assessed into the General Fund in
971 accordance with Section 32A-1-113 .
972 (7) Subject to Section 32A-1-119.5 :
973 (a) In addition to an action taken against a permittee, licensee, or certificate holder
974 under this section, the department may initiate disciplinary action against an officer, employee,
975 or agent of a permittee, licensee, or certificate holder.
976 (b) If an officer, employee, or agent is found to have violated this title, the commission
977 may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
978 wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
979 officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
980 period determined by the commission.
981 (8) Subject to Section 32A-1-119.5 :
982 (a) The department may initiate a disciplinary proceeding for an alleged violation of
983 this title or the rules of the commission against:
984 (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
985 (ii) an officer, employee, agent, or representative of a person listed in Subsection
986 (8)(a)(i).
987 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
988 commission may, in addition to other penalties prescribed by this title, order:

989 (A) the removal of the manufacturer's, supplier's, or importer's one or more products
990 from the department's sales list; and
991 (B) a suspension of the department's purchase of the one or more products described in
992 Subsection (8)(b)(i)(A) for a period determined by the commission.
993 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
994 (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
995 beverage, or its officer, employee, agent, or representative violates this title; and
996 (B) the manufacturer, supplier, or importer:
997 (I) directly commits the violation; or
998 (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
999 the violation.
1000 (9) Subject to Section 32A-1-119.5 :
1001 (a) The department may initiate a disciplinary proceeding against a brewer holding a
1002 certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
1003 of the commission.
1004 (b) If the commission makes a finding that the brewer holding a certificate of approval
1005 violates this title or rules of the commission, the commission may take an action against the
1006 brewer holding a certificate of approval that the commission could take against a licensee
1007 including:
1008 (i) suspension or revocation of the certificate of approval; and
1009 (ii) imposition of a fine.
1010 (10) (a) An adjudicative proceeding under this title, including a disciplinary
1011 proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is
1012 a violation of statute that can be prosecuted criminally.
1013 (b) Unless specifically adopted in this title, a procedure or principal that is applicable
1014 to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title
1015 including:
1016 (i) Title 76, Chapter 1, General Provisions;
1017 (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
1018 (iii) Title 76, Chapter 3, Punishments; and
1019 (iv) Title 76, Chapter 4, Inchoate Offenses.

1020 (c) (i) The burden of proof in an adjudicative proceeding under this title is by a
1021 preponderance of the evidence.
1022 (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative
1023 defense, the subject has the burden of proof to establish the affirmative defense by the
1024 preponderance of the evidence.
1025 (d) In an adjudicative proceeding under this title, to find a violation of this title the
1026 commission:
1027 (i) is required to determine whether the conduct that constitutes the violation occurred;
1028 and
1029 (ii) is not required to make a finding of knowledge or intent unless knowledge or intent
1030 is expressly made an element of the violation by statute.
1031 [(10)] (11) (a) If a respondent requests a disciplinary proceeding hearing, the hearing
1032 held by the commission or a hearing examiner appointed by the commission shall proceed
1033 formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
1034 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
1035 and welfare;
1036 (ii) the alleged violation involves:
1037 (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
1038 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
1039 Entertainment Act;
1040 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
1041 of the respondent;
1042 (D) interfering or refusing to cooperate with:
1043 (I) an authorized official of the department or the state in the discharge of the official's
1044 duties in relation to the enforcement of this title; or
1045 (II) a peace officer in the discharge of the peace officer's duties in relation to the
1046 enforcement of this title;
1047 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
1048 (F) unlawful importation of an alcoholic product; or
1049 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
1050 32A-12-601 (2), to a person other than the department or a military installation, except to the

1051 extent permitted by this title; or
1052 (iii) the department determines to seek in a disciplinary proceeding hearing:
1053 (A) an administrative fine exceeding $3,000;
1054 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
1055 or
1056 (C) a revocation of a license, permit, or certificate of approval.
1057 (b) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
1058 Administrative Rulemaking Act, to provide a procedure to implement this Subsection [(10)]
1059 (11).
1060 Section 5. Section 32A-1-119.5 is amended to read:
1061 32A-1-119.5. Timing of reporting violations.
1062 (1) As used in this section:
1063 (a) "Department compliance officer" means an individual who is:
1064 (i) an auditor or inspector; and
1065 (ii) employed by the department.
1066 (b) "Nondepartment enforcement agency" means an agency that:
1067 (i) (A) is a state agency other than the department; or
1068 (B) is an agency of a county, city, or town; and
1069 (ii) has a responsibility, as provided in another provision of this title, to enforce one or
1070 more provisions of this title.
1071 (c) "Nondepartment enforcement officer" means an individual who is:
1072 (i) a peace officer, examiner, or investigator; and
1073 (ii) employed by an agency described in Subsection (1)(b).
1074 (2) A disciplinary proceeding may not be initiated or maintained by the commission or
1075 department on the basis, in whole or in part, of a violation of this title unless a person listed in
1076 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) against whom the violation is alleged is
1077 notified by the department of the violation in accordance with this section.
1078 (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer
1079 may not report a violation of this title to the department more than eight business days after the
1080 day on which a nondepartment enforcement officer or agency completes an investigation that
1081 finds a violation of this title.

1082 (b) If the commission or department wants the right to initiate or maintain a
1083 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
1084 report described in Subsection (3)(a), the department shall notify a person listed in Subsections
1085 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this title:
1086 (i) by no later than eight business days of the day on which the department receives the
1087 report described in Subsection (3)(a); and
1088 (ii) that the commission or department may initiate or maintain a disciplinary
1089 proceeding on the basis, in whole or in part, of the violation.
1090 (4) If the commission or department wants the right to initiate or maintain a
1091 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
1092 report of a department compliance officer, the department shall notify a person listed in
1093 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
1094 title:
1095 (a) by no later than eight business days of the day on which the department compliance
1096 officer completes an investigation that finds a violation of this title; and
1097 (b) that the commission or department may initiate or maintain a disciplinary
1098 proceeding on the basis, in whole or in part, of the violation.
1099 (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
1100 a person listed in Subsection 32A-1-105 [(15)](18)(a)(vii).
1101 (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
1102 the oral notification the department provides written notification.
1103 (b) The written notification described in Subsection (6)(a) may be sent outside the time
1104 periods required by this section.
1105 (7) The department shall maintain a record of a notification required by Subsection (2),
1106 (3)(b), or (4) that includes:
1107 (a) the name of the person notified; and
1108 (b) the date of the notification.
1109 Section 6. Section 32A-1-124 is enacted to read:
1110 32A-1-124. Transition for dispensing requirements for restaurants.
1111 (1) As used in this section:
1112 (a) "Affected restaurant" means a restaurant that as of May 12, 2009, dispensing an

1113 alcoholic beverage in a manner that as of November 1, 2011, would be in violation of:
1114 (i) for a restaurant liquor licensee, Subsections 32A-4-106 (7)(e) and (8)(b); or
1115 (ii) for a limited restaurant liquor licensee, Subsections 32A-4-307 (7)(e) and (8)(b).
1116 (b) "Category one" means an affected restaurant that as of May 12, 2009, has a counter
1117 or similar structure that:
1118 (i) is a bar as defined on May 11, 2009;
1119 (ii) has patron seating at the counter or structure;
1120 (iii) has a partition at one or more locations on the counter or structure that is along the
1121 width of the counter or structure; and
1122 (iv) has facilities for the dispensing or storage of an alcoholic beverage on the portion
1123 of the counter or structure that is separated by a partition described in Subsection (1)(b)(iii).
1124 (c) "Category two" means an affected restaurant that as of May 12, 2009, has a counter
1125 or similar structure that:
1126 (i) is a bar as defined on May 11, 2009;
1127 (ii) has patron seating at the counter or structure;
1128 (iii) has a partition at one or more locations on the counter or structure that is along the
1129 length of the counter or structure; and
1130 (iv) has facilities for the dispensing or storage of an alcoholic beverage:
1131 (A) on the portion of the counter or structure that is separated by a partition described
1132 in Subsection (1)(c)(iii); or
1133 (B) adjacent to the counter or structure in a manner visible to a patron sitting at the
1134 counter or structure.
1135 (d) "Category three" means an affected restaurant that as of May 12, 2009, has a
1136 counter or similar structure that:
1137 (i) is a bar as defined on May 11, 2009;
1138 (ii) has patron seating at the counter or structure; and
1139 (iii) has a partition or other structural mechanism that obscures facilities for the
1140 dispensing or storage of an alcoholic beverage that is not readily visible to a patron sitting at
1141 the counter or structure.
1142 (e) "Category four" means an affected restaurant that as of May 12, 2009, has a counter
1143 or similar structure that:

1144 (i) is a bar as defined on May 11, 2009; and
1145 (ii) has no patron seating at the counter or structure.
1146 (2) (a) If an affected restaurant chooses to renew its license effective November 1,
1147 2011, the affected restaurant has a credit for purchases from a state store or package agency in
1148 the following amounts:
1149 (i) for a category one affected restaurant, the credit is $5,000;
1150 (ii) for a category two affected restaurant, the credit is $10,000;
1151 (iii) for a category three affected restaurant, the credit is $0; and
1152 (iv) for a category four affected restaurant, the credit is $20,000.
1153 (b) A credit under this Subsection (2) begins November 1, 2011, and ends the day on
1154 which the affected restaurant has used all of the credit.
1155 (c) The department shall by contract provide for how a package agency accounts for a
1156 credit purchase made at the package agency by an affected restaurant.
1157 Section 7. Section 32A-4-101 is amended to read:
1158 32A-4-101. Commission's power to grant licenses -- Limitations.
1159 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1160 shall first obtain a license from the commission as provided in this part.
1161 (2) The commission may issue restaurant liquor licenses for the purpose of establishing
1162 restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
1163 consumption of liquor on premises operated as public restaurants.
1164 (3) (a) Subject to the other provisions of this Subsection (3), the total number of
1165 restaurant liquor licenses may not at any time aggregate more than that number determined by
1166 dividing the population of the state by [5,200] 5,361.
1167 (b) For purposes of this Subsection (3), population shall be determined by:
1168 (i) the most recent United States decennial or special census; or
1169 (ii) another population determination made by the United States or state governments.
1170 (c) (i) The commission may issue seasonal restaurant liquor licenses established in
1171 areas the commission considers necessary.
1172 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
1173 (iii) A restaurant liquor license issued for operation during a summer time period is
1174 known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"

1175 restaurant liquor license shall:
1176 (A) begin on May 1; and
1177 (B) end on October 31.
1178 (iv) A restaurant liquor license issued for operation during a winter time period is
1179 known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
1180 restaurant liquor license shall:
1181 (A) begin on November 1; and
1182 (B) end on April 30.
1183 (v) In determining the number of restaurant liquor licenses that the commission may
1184 issue under this section:
1185 (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
1186 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1187 (d) (i) If the location, design, and construction of a hotel may require more than one
1188 restaurant liquor sales location within the hotel to serve the public convenience, the
1189 commission may authorize the sale of liquor at as many as three restaurant locations within the
1190 hotel under one license if:
1191 (A) the hotel has a minimum of 150 guest rooms; and
1192 (B) all locations under the license are:
1193 (I) within the same hotel facility; and
1194 (II) on premises that are managed or operated and owned or leased by the licensee.
1195 (ii) A facility other than a hotel shall have a separate restaurant liquor license for each
1196 restaurant where liquor is sold.
1197 (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
1198 premises of a restaurant liquor license may not be established:
1199 (i) within 600 feet of a community location, as measured by the method in Subsection
1200 (4)[(e)](f);
1201 (ii) within 200 feet of a community location, measured in a straight line from the
1202 nearest entrance of the proposed outlet to the nearest property boundary of the community
1203 location.
1204 (b) With respect to the establishment of a restaurant liquor license, the commission
1205 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:

1206 (i) the local authority grants its written consent to the variance;
1207 (ii) the commission finds that alternative locations for establishing a restaurant liquor
1208 license in the community are limited;
1209 (iii) a public hearing is held in the city, town, or county, and where practical in the
1210 neighborhood concerned;
1211 (iv) after giving full consideration to all of the attending circumstances and the policies
1212 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1213 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1214 welfare of the community; and
1215 (v) (A) the community location governing authority gives its written consent to the
1216 variance; or
1217 (B) when written consent is not given by the community location governing authority,
1218 the commission finds that the applicant has established that:
1219 (I) there is substantial unmet public demand to consume alcohol in a public setting
1220 within the geographic boundary of the local authority in which the restaurant is to be located;
1221 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1222 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1223 liquor license; and
1224 (III) there is no reasonably viable alternative location within the geographic boundary
1225 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1226 license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1227 (c) With respect to the establishment of a restaurant liquor license, the commission
1228 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
1229 (i) the community location at issue is:
1230 (A) a public library; or
1231 (B) a public park;
1232 (ii) the local authority grants its written consent to the variance;
1233 (iii) the commission finds that alternative locations for establishing a restaurant liquor
1234 license in the community are limited;
1235 (iv) a public hearing is held in the city, town, or county, and where practical in the
1236 neighborhood concerned;

1237 (v) after giving full consideration to all of the attending circumstances and the policies
1238 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1239 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1240 welfare of the community; and
1241 (vi) (A) the community location governing authority gives its written consent to the
1242 variance; or
1243 (B) when written consent is not given by the community location governing authority,
1244 the commission finds that the applicant has established that:
1245 (I) there is substantial unmet public demand to consume alcohol in a public setting
1246 within the geographic boundary of the local authority in which the restaurant is to be located;
1247 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1248 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
1249 liquor license; and
1250 (III) there is no reasonably viable alternative location within the geographic boundary
1251 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1252 license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
1253 (d) With respect to the premises of a restaurant liquor license issued by the commission
1254 that undergoes a change of ownership, the commission may waive or vary the proximity
1255 requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor license to
1256 the new owner of the premises if:
1257 (i) (A) the premises previously received a variance reducing the proximity requirement
1258 of Subsection (4)(a)(i); or
1259 (B) the premises received a variance reducing the proximity requirement of Subsection
1260 (4)(a)(ii) on or before May 4, 2008; or
1261 (ii) a variance from proximity requirements was otherwise allowed under this title.
1262 (e) With respect to the premises of a restaurant liquor license issued by the commission
1263 that undergoes a change of ownership, the commission may waive or vary the proximity
1264 requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor license to
1265 the new owner of the premises if:
1266 (i) when a restaurant liquor license was issued to a previous owner, the premises met
1267 the proximity requirements of Subsection (4)(a);

1268 (ii) the premises has had a restaurant liquor license at all times since the restaurant
1269 liquor license described in Subsection (4)(e)(i) was issued without a variance; and
1270 (iii) the community location located within the proximity requirements of Subsection
1271 (4)(a) after the day on which the restaurant liquor license described in Subsection (4)(e)(i) was
1272 issued.
1273 [(e)] (f) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
1274 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1275 community location.
1276 (5) (a) Nothing in this section prevents the commission from considering the proximity
1277 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
1278 decision on a proposed location.
1279 (b) For purposes of this Subsection (5), "educational facility" includes:
1280 (i) a nursery school;
1281 (ii) an infant day care center; and
1282 (iii) a trade and technical school.
1283 Section 8. Section 32A-4-102 is amended to read:
1284 32A-4-102. Application and renewal requirements.
1285 (1) A person seeking a restaurant liquor license under this part shall file a written
1286 application with the department, in a form prescribed by the department. It shall be
1287 accompanied by:
1288 (a) a nonrefundable $250 application fee;
1289 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1290 (c) written consent of the local authority;
1291 (d) a copy of the applicant's current business license;
1292 (e) evidence of proximity to any community location, with proximity requirements
1293 being governed by Section 32A-4-101 ;
1294 (f) a bond as specified by Section 32A-4-105 ;
1295 (g) a floor plan of the restaurant, including consumption areas and the area where the
1296 applicant proposes to keep, store, and sell liquor;
1297 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1298 form satisfactory to the department;

1299 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1300 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
1301 (j) a signed consent form stating that the restaurant will permit any authorized
1302 representative of the commission, department, or any law enforcement officer unrestricted right
1303 to enter the restaurant;
1304 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1305 company, proper verification evidencing that the person or persons signing the restaurant
1306 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1307 company; and
1308 (l) any other information the commission or department may require.
1309 (2) (a) All restaurant liquor licenses expire on October 31 of each year.
1310 (b) A person desiring to renew the person's restaurant liquor license shall by no later
1311 than September 30 submit:
1312 (i) a completed renewal application to the department; and
1313 (ii) a renewal fee in the following amount:
1314 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1315 under $5,000 $750
1316 equals or exceeds $5,000 but less than $10,000 $900
1317 equals or exceeds $10,000 but less than $25,000 $1,250
1318 equals or exceeds $25,000 $1,500
1319 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1320 the license effective on the date the existing license expires.
1321 (d) A renewal application shall be in a form as prescribed by the department.
1322 (e) To renew a restaurant liquor license effective November 1, 2011, a restaurant liquor
1323 licensee shall provide evidence of compliance with Subsections 32A-1-106 (7)(e) and (8)(b).
1324 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1325 suspend or revoke a restaurant liquor license if the restaurant liquor licensee does not
1326 immediately notify the department of any change in:
1327 (a) ownership of the restaurant;
1328 (b) for a corporate owner, the:
1329 (i) corporate officers or directors; or

1330 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
1331 corporation; or
1332 (c) for a limited liability company:
1333 (i) managers; or
1334 (ii) members owning at least 20% of the limited liability company.
1335 Section 9. Section 32A-4-106 is amended to read:
1336 32A-4-106. Operational restrictions.
1337 A person granted a restaurant liquor license and the employees and management
1338 personnel of the restaurant shall comply with the following conditions and requirements.
1339 Failure to comply may result in a suspension or revocation of the restaurant liquor license or
1340 other disciplinary action taken against individual employees or management personnel.
1341 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
1342 store or package agency.
1343 (b) Liquor purchased from a state store or package agency may be transported by the
1344 restaurant liquor licensee from the place of purchase to the licensed premises.
1345 (c) Payment for liquor shall be made in accordance with rules established by the
1346 commission.
1347 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
1348 a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
1349 dispensing system approved by the department in accordance with commission rules adopted
1350 under this title, except that:
1351 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1352 system if used as a secondary flavoring ingredient in a beverage subject to the following
1353 restrictions:
1354 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1355 a primary spirituous liquor;
1356 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1357 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
1358 on the floor plan provided to the department; and
1359 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1360 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing

1361 system if used:
1362 (i) as a flavoring on a dessert; and
1363 (ii) in the preparation of a flaming food dish, drink, or dessert;
1364 (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
1365 and
1366 (d) a restaurant patron may have no more than one spirituous liquor drink at a time
1367 before the patron.
1368 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
1369 exceed five ounces per glass or individual portion.
1370 (ii) An individual portion of wine may be served to a patron in more than one glass as
1371 long as the total amount of wine does not exceed five ounces.
1372 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1373 Subsection (7)[(e)](f).
1374 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1375 fixed by the commission to a table of four or more persons.
1376 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1377 fixed by the commission to a table of less than four persons.
1378 (c) A wine service may be performed and a service charge assessed by a restaurant
1379 liquor licensee as authorized by commission rule for wine purchased at the restaurant.
1380 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1381 price fixed by the commission.
1382 (b) A flavored malt beverage may be served in an original container not exceeding one
1383 liter at a price fixed by the commission.
1384 (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
1385 commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
1386 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
1387 on-premise consumption:
1388 (A) in an open container; and
1389 (B) on draft.
1390 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1391 not exceed two liters, except that beer may not be sold to an individual patron in a size of

1392 container that exceeds one liter.
1393 (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
1394 (i) may do so without obtaining a separate on-premise beer retailer license from the
1395 commission; and
1396 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1397 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1398 inconsistent with or less restrictive than the operational restrictions under this part.
1399 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1400 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1401 restaurant's:
1402 (i) state liquor license; and
1403 (ii) alcoholic beverage license issued by the local authority.
1404 (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1405 designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
1406 first applies for and receives approval from the department for a change of location within the
1407 restaurant.
1408 (7) (a) (i) A patron may only make an alcoholic beverage purchase in the restaurant
1409 from and be served by a person employed, designated, and trained by the restaurant liquor
1410 licensee to sell and serve an alcoholic beverage.
1411 (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
1412 employee of the restaurant or carries bottled wine onto the premises of the restaurant pursuant
1413 to Subsection (14) may thereafter serve wine from the bottle to the patron or others at the
1414 patron's table.
1415 (b) An alcoholic beverage shall be delivered by a server to the patron.
1416 (c) An alcoholic beverage may only be consumed at the patron's table or counter where
1417 food is served.
1418 (d) [An] (i) On or before October 31, 2010, an alcoholic beverage may not be served
1419 to or consumed by a patron at a bar.
1420 (ii) On and after November 1, 2011, a restaurant may not have a bar on its premises.
1421 (e) On and after November 1, 2011, a restaurant liquor licensee may dispense an
1422 alcoholic beverage only:

1423 (i) from an area that is:
1424 (A) separated from an area for the consumption of food by a restaurant patron by:
1425 (I) a wall that:
1426 (Aa) is floor-to-ceiling; or
1427 (Bb) starts at the floor and is at least 10 feet high;
1428 (II) a different floor level; or
1429 (III) a similar substantial physical barrier; and
1430 (B) not visible to or accessible by a restaurant patron;
1431 (ii) if the restaurant uses an alcoholic beverage or alcoholic product that is stored in an
1432 area described in Subsection (7)(e)(i); and
1433 (iii) if any instrument or equipment used to dispense an alcoholic beverage is located in
1434 an area described in Subsection (7)(e)(i).
1435 [(e)] (f) A restaurant patron may have no more than two alcoholic beverages of any
1436 kind at a time before the patron, subject to the limitation in Subsection (2)(d).
1437 (8) (a) [The] A liquor storage area shall remain locked at all times other than those
1438 hours and days when liquor sales are authorized by law.
1439 (b) On and after November 1, 2011, a restaurant liquor licensee shall store an alcoholic
1440 beverage or alcoholic product in a storage area described in Subsection (7)(e)(i).
1441 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
1442 restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
1443 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
1444 Licenses, for on-premise beer licensees.
1445 (10) An alcoholic beverage may not be sold except in connection with an order for
1446 food prepared, sold, and served at the restaurant.
1447 (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
1448 (a) minor;
1449 (b) person actually, apparently, or obviously intoxicated;
1450 (c) known habitual drunkard; or
1451 (d) known interdicted person.
1452 (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
1453 (ii) Liquor may not be sold at a discount price on any date or at any time.

1454 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
1455 beverage to the restaurant liquor licensee.
1456 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
1457 over consumption or intoxication.
1458 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
1459 hours of a restaurant liquor licensee's business day such as a "happy hour."
1460 (e) More than one alcoholic beverage may not be sold or served for the price of a single
1461 alcoholic beverage.
1462 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
1463 not be sold or served for a fixed price.
1464 (g) A restaurant liquor licensee may not engage in a public promotion involving or
1465 offering free an alcoholic beverage to the general public.
1466 (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
1467 (a) the restaurant liquor licensee; or
1468 (b) an employee or agent of the restaurant liquor licensee.
1469 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
1470 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
1471 discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
1472 licensee for on-premise consumption.
1473 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
1474 officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
1475 (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
1476 consumption; or
1477 (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
1478 restaurant liquor licensee's premises.
1479 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
1480 or other representative of the restaurant liquor licensee upon entering the restaurant.
1481 (d) A wine service may be performed and a service charge assessed by a restaurant
1482 liquor licensee as authorized by commission rule for wine carried in by a patron.
1483 (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
1484 employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the

1485 restaurant premises an open container that:
1486 (i) is used primarily for drinking purposes; and
1487 (ii) contains an alcoholic beverage.
1488 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
1489 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
1490 onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
1491 recorked or recapped before removal.
1492 (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
1493 alcoholic beverage.
1494 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
1495 employed to enter the sale at a cash register or other sales recording device.
1496 (17) An employee of a restaurant liquor licensee, while on duty, may not:
1497 (a) consume an alcoholic beverage; or
1498 (b) be intoxicated.
1499 (18) A charge or fee made in connection with the sale, service, or consumption of liquor
1500 may be stated in food or alcoholic beverage menus including:
1501 (a) a set-up charge;
1502 (b) a service charge; or
1503 (c) a chilling fee.
1504 (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
1505 (a) the liquor license that is issued by the department;
1506 (b) a list of the types and brand names of liquor being served through its calibrated
1507 metered dispensing system; and
1508 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1509 drugs is a serious crime that is prosecuted aggressively in Utah."
1510 (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
1511 licensee:
1512 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1513 Chapter 10, Part 11, Gambling;
1514 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1515 Part 11, Gambling; or

1516 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1517 the risking of something of value for a return or for an outcome when the return or outcome is
1518 based upon an element of chance, excluding the playing of an amusement device that confers
1519 only an immediate and unrecorded right of replay not exchangeable for value.
1520 (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record showing
1521 in detail:
1522 (i) quarterly expenditures made separately for:
1523 (A) malt or brewed beverages;
1524 (B) set-ups;
1525 (C) liquor;
1526 (D) food; and
1527 (E) all other items required by the department; and
1528 (ii) sales made separately for:
1529 (A) malt or brewed beverages;
1530 (B) set-ups;
1531 (C) food; and
1532 (D) all other items required by the department.
1533 (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
1534 (i) in a form approved by the department; and
1535 (ii) current for each three-month period.
1536 (c) An expenditure shall be supported by:
1537 (i) a delivery ticket;
1538 (ii) an invoice;
1539 (iii) a receipted bill;
1540 (iv) a canceled check;
1541 (v) a petty cash voucher; or
1542 (vi) other sustaining datum or memorandum.
1543 (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
1544 liquor licensee shall maintain accounting and other records and documents as the department
1545 may require.
1546 (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly

1547 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
1548 other document of the restaurant that is required to be made, maintained, or preserved by this
1549 title or the rules of the commission for the purpose of deceiving the commission or the
1550 department, or an official or employee of the commission or department, is subject to:
1551 (i) the suspension or revocation of the restaurant's liquor license; and
1552 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
1553 (22) (a) A restaurant liquor licensee may not close or cease operation for a period
1554 longer than 240 hours, unless:
1555 (i) the restaurant liquor licensee notifies the department in writing at least seven days
1556 before the day on which the restaurant liquor licensee closes or ceases operation; and
1557 (ii) the closure or cessation of operation is first approved by the department.
1558 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
1559 restaurant liquor licensee shall immediately notify the department by telephone.
1560 (c) (i) The department may authorize a closure or cessation of operation for a period
1561 not to exceed 60 days.
1562 (ii) The department may extend the initial period an additional 30 days upon:
1563 (A) written request of the restaurant liquor licensee; and
1564 (B) a showing of good cause.
1565 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1566 commission approval.
1567 (d) A notice shall include:
1568 (i) the dates of closure or cessation of operation;
1569 (ii) the reason for the closure or cessation of operation; and
1570 (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
1571 (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
1572 authorization before closure or cessation of operation results in an automatic forfeiture of:
1573 (i) the license; and
1574 (ii) the unused portion of the license fee for the remainder of the licens