First Substitute S.B. 187

Senator John L. Valentine proposes the following substitute bill:

1 ALCOHOL AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John L. Valentine
5 House Sponsor: Gregory H. Hughes
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 . removes requirements related to state labels and markings;
14 . prohibits tampering with a package of an alcoholic beverage;
15 . addresses the nature of an adjudicative proceeding as a civil action including the
16 burden of proof and the general applicability of mens rea requirements;
17 . makes procedural clarifications for administrative actions;
18 . provides for electronic verification of proof of age by certain club licensees;
19 . removes restrictions related to election days;
20 . addresses quotas;
21 . addresses proximity for a restaurant liquor or limited restaurant license;
22 . addresses dispensing, storage, and bar structures for a restaurant;
23 . changes the insurance and liability limits related to dramshop;
24 . modifies the definition of a "convention center" and provides for limited
25 grandfathering;

26 . creates a resort license including:
27 . defining terms;
28 . providing for licensing, including the creation of sublicenses;
29 . establishing a resort spa sublicense;
30 . imposing operational requirements for a resort license;
31 . addressing the application of operational requirements to a sublicense;
32 . providing for enforcement with relation to a resort license or a sublicense;
33 . addressing the application of the Nuisance Licensee Act to a resort license or
34 sublicense;
35 . providing for the enforcement of criminal penalties; and
36 . expanding protections for employees to encompass employees of a resort
37 licensee;
38 . establishes requirements for renting or leasing a club license premises;
39 . clarifies the application of criminal procedures, principles, and penalties;
40 . addresses training requirements for law enforcement officers;
41 . expands licenses subject to protections for employees who exercise judgment;
42 . provides for a study of penalties related to minors; and
43 . makes technical and conforming changes.
44 Monies Appropriated in this Bill:
45 None
46 Other Special Clauses:
47 This bill provides an effective date.
48 This bill provides revisor instructions.
49 This bill coordinates with H.B. 349, Heavy Beer Amendments, to merge substantive
50 amendments.
51 Utah Code Sections Affected:
52 AMENDS:
53 11-10-1, as last amended by Laws of Utah 1990, Chapter 23
54 26-38-2, as last amended by Laws of Utah 2006, Chapter 202
55 26-38-3, as last amended by Laws of Utah 2007, Chapter 20
56 32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391

57 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
58 32A-1-109, as last amended by Laws of Utah 2003, Chapter 314
59 32A-1-115, as last amended by Laws of Utah 2008, Chapter 382
60 32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
61 32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
62 32A-1-603, as last amended by Laws of Utah 2008, Chapter 382
63 32A-2-103, as last amended by Laws of Utah 2007, Chapter 329
64 32A-3-106, as last amended by Laws of Utah 2008, Chapter 266
65 32A-4-101, as last amended by Laws of Utah 2008, Chapter 391
66 32A-4-102, as last amended by Laws of Utah 2008, Chapter 391
67 32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
68 32A-4-202, as last amended by Laws of Utah 2004, Chapter 268
69 32A-4-302, as last amended by Laws of Utah 2008, Chapter 391
70 32A-4-303, as last amended by Laws of Utah 2008, Chapter 391
71 32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
72 32A-4-401, as last amended by Laws of Utah 2008, Chapter 391
73 32A-4-402, as last amended by Laws of Utah 2008, Chapter 391
74 32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
75 32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
76 32A-5-103 (Effective 07/01/09), as last amended by Laws of Utah 2008, Chapters 26
77 and 382
78 32A-5-104, as last amended by Laws of Utah 2008, Chapter 391
79 32A-5-106, as renumbered and amended by Laws of Utah 1990, Chapter 23
80 32A-5-107, as last amended by Laws of Utah 2008, Chapters 266 and 391
81 32A-9-103, as last amended by Laws of Utah 2008, Chapter 382
82 32A-10-201, as last amended by Laws of Utah 2008, Chapter 391
83 32A-10-202, as last amended by Laws of Utah 2008, Chapter 391
84 32A-12-101, as renumbered and amended by Laws of Utah 1990, Chapter 23
85 32A-12-102, as last amended by Laws of Utah 2004, Chapter 268
86 32A-12-104, as last amended by Laws of Utah 2007, Chapter 322
87 32A-12-209.5, as last amended by Laws of Utah 2008, Chapter 3

88 32A-12-212, as last amended by Laws of Utah 2008, Chapter 391
89 32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
90 32A-12-219, as renumbered and amended by Laws of Utah 1990, Chapter 23
91 32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
92 32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
93 32A-14a-102, as last amended by Laws of Utah 2008, Chapter 3
94 32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
95 53-10-305, as last amended by Laws of Utah 2000, Chapter 1
96 ENACTS:
97 32A-1-304.5, Utah Code Annotated 1953
98 32A-4a-101, Utah Code Annotated 1953
99 32A-4a-102, Utah Code Annotated 1953
100 32A-4a-201, Utah Code Annotated 1953
101 32A-4a-202, Utah Code Annotated 1953
102 32A-4a-203, Utah Code Annotated 1953
103 32A-4a-204, Utah Code Annotated 1953
104 32A-4a-205, Utah Code Annotated 1953
105 32A-4a-301, Utah Code Annotated 1953
106 32A-4a-302, Utah Code Annotated 1953
107 32A-4a-303, Utah Code Annotated 1953
108 32A-4a-304, Utah Code Annotated 1953
109 32A-4a-305, Utah Code Annotated 1953
110 32A-4a-401, Utah Code Annotated 1953
111 32A-4a-402, Utah Code Annotated 1953
112 32A-4a-501, Utah Code Annotated 1953
113 32A-4a-502, Utah Code Annotated 1953
114 32A-4a-503, Utah Code Annotated 1953
115 32A-5-109, Utah Code Annotated 1953
116 REPEALS:
117 32A-12-218, as last amended by Laws of Utah 2003, Chapter 314
118 Uncodified Material Affected:

119 ENACTS UNCODIFIED MATERIAL
120
121 Be it enacted by the Legislature of the state of Utah:
122 Section 1. Section 11-10-1 is amended to read:
123 11-10-1. Business license required -- Authorization for issuance, denial,
124 suspension, or revocation by local authority.
125 (1) As used in this chapter, ["club," "local authority," "restaurant," and "person"] the
126 following have the meaning set forth in Section 32A-1-105 [.]:
127 (a) "club licensee";
128 (b) "local authority";
129 (c) "person"; and
130 (d) "restaurant."
131 (2) A person may not operate an association, restaurant, club license, or similar
132 business that allows customers, members, guests, [visitors,] or other persons to possess or
133 consume alcoholic beverages on the premises of the club licensee, association, restaurant, or
134 similar business premises without a business license.
135 (3) Any local authority may issue a business license to any person who owns or
136 operates an association, restaurant, club license premise, or similar business that allows the
137 customers, members, guests, [visitors,] or other persons to hold, store, possess, or consume
138 alcoholic beverages on the premises. This license does not permit any person to hold, store,
139 possess, or consume alcoholic beverages on the premises other than as provided in Title 32A,
140 [the] Alcoholic Beverage Control Act.
141 (4) Any local authority may suspend or revoke a business license for a violation of
142 Title 32A, [the] Alcoholic Beverage Control Act.
143 (5) Each local authority shall set policy by written rules that establish criteria and
144 procedures for granting, denying, suspending, or revoking licenses issued under this chapter.
145 (6) A license issued under this section constitutes consent of the local authority within
146 the meaning of Title 32A, [the] Alcoholic Beverage Control Act.
147 Section 2. Section 26-38-2 is amended to read:
148 26-38-2. Definitions.
149 As used in this chapter:

150 (1) "Place of public access" means any enclosed indoor place of business, commerce,
151 banking, financial service, or other service-related activity, whether publicly or privately owned
152 and whether operated for profit or not, to which persons not employed at the place of public
153 access have general and regular access or which the public uses, including:
154 (a) buildings, offices, shops, elevators, or restrooms;
155 (b) means of transportation or common carrier waiting rooms;
156 (c) restaurants, cafes, or cafeterias;
157 (d) taverns as defined in Section 32A-1-105 , or cabarets;
158 (e) shopping malls, retail stores, grocery stores, or arcades;
159 (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
160 sites, auditoriums, or arenas;
161 (g) barber shops, hair salons, or laundromats;
162 (h) sports or fitness facilities;
163 (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
164 breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
165 hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
166 of these;
167 (j) (i) any child care facility or program subject to licensure or certification under this
168 title, including those operated in private homes, when any child cared for under that license is
169 present; and
170 (ii) any child care, other than child care as defined in Section 26-39-102 , that is not
171 subject to licensure or certification under this title, when any child cared for by the provider,
172 other than the child of the provider, is present;
173 (k) public or private elementary or secondary school buildings and educational
174 facilities or the property on which those facilities are located;
175 (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
176 religious organization when used solely by the organization members or their guests or
177 families;
178 (m) any facility rented or leased for private functions from which the general public is
179 excluded and arrangements for the function are under the control of the function sponsor;
180 (n) any workplace that is not a place of public access or a publicly owned building or

181 office but has one or more employees who are not owner-operators of the business; [and]
182 (o) any area where the proprietor or manager of the area has posted a conspicuous sign
183 stating "no smoking", "thank you for not smoking", or similar statement[.]; and
184 (p) [any private] a club [licensed] licensee under Title 32A, Chapter 5, [Private] Club
185 [Liquor] Licenses.
186 (2) "Publicly owned building or office" means any enclosed indoor place or portion of
187 a place owned, leased, or rented by any state, county, or municipal government, or by any
188 agency supported by appropriation of, or by contracts or grants from, funds derived from the
189 collection of federal, state, county, or municipal taxes.
190 (3) "Smoking" means the possession of any lighted tobacco product in any form.
191 Section 3. Section 26-38-3 is amended to read:
192 26-38-3. Restriction on smoking in public places and in specified places --
193 Exceptions.
194 (1) Except as provided in Subsection (2), smoking is prohibited in all enclosed indoor
195 places of public access and publicly owned buildings and offices.
196 (2) Subsection (1) does not apply to:
197 (a) areas not commonly open to the public of owner-operated businesses having no
198 employees other than the owner-operator;
199 (b) guest rooms in hotels, motels, "bed and breakfast" lodging facilities, and other
200 similar lodging facilities, but smoking is prohibited under Subsection (1) in the common areas
201 of these facilities, including dining areas and lobby areas; and
202 [(c) before January 1, 2009, taverns, as defined in Section 32A-1-105 , that are:]
203 [(i) licensed on or before May 15, 2006; or]
204 [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
205 ownership;]
206 [(d) before January 1, 2009, class D private clubs, as defined in Section 32A-5-101 ,
207 that are:]
208 [(i) licensed on or before May 15, 2006; or]
209 [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
210 ownership;]
211 [(e) before January 1, 2009, class B private clubs, as defined in Section 32A-5-101

212 that:]
213 [(i) are licensed:]
214 [(A) on or before May 15, 2006; or]
215 [(B) on or before May 15, 2006 and after May 15, 2006 undergo a change in
216 ownership; and]
217 [(ii) do not permit an individual under the age of 21 in the class B private club, unless
218 the individual is active military; and]
219 [(f)] (c) separate enclosed smoking areas:
220 (i) located in the passenger terminals of an international airport located in the city of
221 the first class;
222 (ii) vented directly to the outdoors; and
223 (iii) certified, by a heating, ventilation, and air conditioning engineer licensed by the
224 state, to prevent the drift of any smoke to any nonsmoking area of the terminal.
225 Section 4. Section 32A-1-105 is amended to read:
226 32A-1-105. Definitions.
227 As used in this title:
228 (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
229 at retail, for consumption on its premises located at an international airport with a United States
230 Customs office on the premises of the international airport.
231 (2) "Alcoholic beverage" means the following as the term is defined in this section:
232 (a) beer;
233 (b) flavored malt beverage; and
234 (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
235 (3) (a) "Alcoholic product" means a product that:
236 (i) contains at least .5% of alcohol by volume; and
237 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
238 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
239 in an amount greater than the amount prescribed in Subsection (3)(a)(i).
240 (b) "Alcoholic product" does not include any of the following common items that
241 otherwise come within the definition of an alcoholic product:
242 (i) except as provided in Subsection (3)(c), extract;

243 (ii) vinegar;
244 (iii) cider;
245 (iv) essence;
246 (v) tincture;
247 (vi) food preparation; or
248 (vii) an over-the-counter drug or medicine.
249 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
250 product when it is used as a flavoring in the manufacturing of an alcoholic product.
251 (4) (a) ["Bar"] Except as provided in Subsection (4)(b), "bar" means a counter or
252 similar structure:
253 [(a)] (i) at which an alcoholic beverage or an alcoholic product is:
254 [(i)] (A) stored; or
255 [(ii)] (B) dispensed; or
256 [(b)] (ii) from which an alcoholic beverage is served.
257 (b) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
258 3, Limited Restaurant Licenses, "bar structure" means a surface or structure on the premises of
259 a restaurant if on or at any place of the surface or structure an alcoholic beverage or alcoholic
260 product is:
261 (i) stored; or
262 (ii) dispensed.
263 (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
264 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
265 volume or 3.2% by weight; and
266 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
267 (b) Beer may or may not contain hops or other vegetable products.
268 (c) Beer includes a product that:
269 (i) contains alcohol in the percentages described in Subsection (5)(a); and
270 (ii) is referred to as:
271 (A) beer;
272 (B) ale;
273 (C) porter;

274 (D) stout;
275 (E) lager; or
276 (F) a malt or malted beverage.
277 (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
278 beverage.
279 (6) (a) "Beer retailer" means a business that is:
280 (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
281 consumption on or off the business premises; and
282 (ii) licensed to sell beer by:
283 (A) the commission;
284 (B) a local authority; or
285 (C) both the commission and a local authority.
286 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
287 beer to a patron for consumption off the beer retailer's premises.
288 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
289 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
290 patron for consumption on the beer retailer's premises, regardless of whether the business sells
291 beer for consumption off the beer retailer's premises.
292 (7) "Billboard" means a public display used to advertise including:
293 (a) a light device;
294 (b) a painting;
295 (c) a drawing;
296 (d) a poster;
297 (e) a sign;
298 (f) a signboard; or
299 (g) a scoreboard.
300 (8) "Brewer" means a person engaged in manufacturing:
301 (a) beer;
302 (b) heavy beer; or
303 (c) a flavored malt beverage.
304 (9) "Cash bar" means the service of an alcoholic beverage:

305 (a) at:
306 (i) a banquet; or
307 (ii) a temporary event for which a permit is issued under this title; and
308 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
309 beverage.
310 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
311 a bus company to a group of persons pursuant to a common purpose:
312 (a) under a single contract;
313 (b) at a fixed charge in accordance with the bus company's tariff; and
314 (c) for the purpose of giving the group of persons the exclusive use of the passenger
315 bus, coach, or other motor vehicle and a driver to travel together to one or more specified
316 destinations.
317 (11) "Church" means a building:
318 (a) set apart for the purpose of worship;
319 (b) in which religious services are held;
320 (c) with which clergy is associated; and
321 (d) which is tax exempt under the laws of this state.
322 (12) ["Club" and "private club"] "Club licensee" means [any of the following organized
323 primarily for the benefit of its members:] a person licensed under Chapter 5, Club Licenses.
324 [(a) a social club;]
325 [(b) a recreational association;]
326 [(c) a fraternal association;]
327 [(d) an athletic association; or]
328 [(e) a kindred association.]
329 (13) "Commission" means the Alcoholic Beverage Control Commission.
330 (14) "Community location" means:
331 (a) a public or private school;
332 (b) a church;
333 (c) a public library;
334 (d) a public playground; or
335 (e) a public park.

336 (15) "Community location governing authority" means:
337 (a) the governing body of the community location; or
338 (b) if the commission does not know who is the governing body of a community
339 location, a person who appears to the commission to have been given on behalf of the
340 community location authority to prohibit an activity at the community location.
341 (16) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
342 3, Limited Restaurant Licenses:
343 (a) Subject to Subsection (16)(b), "counter" means a surface or structure in a dining
344 area of a restaurant where seating is provided to a patron for service of food.
345 (b) "Counter" does not include a surface or structure if on or at any point of the surface
346 or structure an alcoholic beverage or alcoholic product is:
347 (i) stored; or
348 (ii) dispensed.
349 [(16)] (17) "Department" means the Department of Alcoholic Beverage Control.
350 [(17)] (18) "Disciplinary proceeding" means an adjudicative proceeding permitted
351 under this title:
352 (a) against:
353 (i) a permittee;
354 (ii) a licensee;
355 (iii) a manufacturer;
356 (iv) a supplier;
357 (v) an importer;
358 (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
359 or
360 (vii) an officer, employee, or agent of:
361 (A) a person listed in Subsections [(17)] (18)(a)(i) through (vi); or
362 (B) a package agent; and
363 (b) that is brought on the basis of a violation of this title.
364 [(18)] (19) "Director," unless the context requires otherwise, means the director
365 appointed under Section 32A-1-108 .
366 (20) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part

367 3, Limited Restaurant Licenses, "dispense" means:
368 (a) drawing of an alcoholic beverage or alcoholic product:
369 (i) from an area where it is stored; or
370 (ii) as provided in Subsection 32A-4-106 (7)(e)(ii)(B) or 32A-4-307 (7)(e)(ii)(B); and
371 (b) using the alcoholic beverage or alcoholic product described in Subsection (20)(a)
372 on the premises of the restaurant to mix or prepare an alcoholic beverage for service to a patron
373 of the restaurant.
374 [(19)] (21) "Distressed merchandise" means an alcoholic beverage in the possession of
375 the department that is saleable, but for some reason is unappealing to the public.
376 [(20)] (22) "Flavored malt beverage" means a beverage:
377 (a) that contains at least .5% alcohol by volume;
378 (b) that is treated by processing, filtration, or another method of manufacture that is not
379 generally recognized as a traditional process in the production of a beer as described in 27
380 C.F.R. Sec. 25.55;
381 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
382 extract; and
383 (d) (i) for which the producer is required to file a formula for approval with the United
384 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
385 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
386 [(21)] (23) "Guest" means [a person accompanied by an active member or visitor of a
387 club who enjoys only those privileges derived from the host for the duration of the visit to the
388 club] an individual who meets the requirements of Subsection 32A-5-107 (1)(i) or (j).
389 [(22)] (24) (a) "Heavy beer" means a product that:
390 (i) contains more than 4% alcohol by volume; and
391 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
392 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
393 [(23)] (25) "Hosted bar" means the service of an alcoholic beverage:
394 (a) without charge; and
395 (b) at a:
396 (i) banquet; or
397 (ii) privately hosted event.

398 [(24)] (26) "Identification card" means an identification card issued under Title 53,
399 Chapter 3, Part 8, Identification Card Act.
400 [(25)] (27) "Interdicted person" means a person to whom the sale, gift, or provision of
401 an alcoholic beverage is prohibited by:
402 (a) law; or
403 (b) court order.
404 [(26)] (28) "Intoxicated" means that [to a degree that is unlawful under Section
405 76-9-701 ] a person [is under the influence of]:
406 (a) is significantly impaired as to the person's mental or physical functions as a result of
407 the use of:
408 [(a)] (i) an alcoholic beverage;
409 [(b)] (ii) a controlled substance;
410 [(c)] (iii) a substance having the property of releasing toxic vapors; or
411 [(d)] (iv) a combination of Subsections [(26)] (28)(a)(i) through [(c).] (iii); and
412 (b) exhibits plain and easily observed outward manifestations of behavior or physical
413 signs produced by the over consumption of an alcoholic beverage.
414 (29) "Invitee" is as defined in Section 32A-4a-102 .
415 [(27)] (30) "Licensee" means a person [issued] granted a license by the commission to
416 sell, manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
417 controlled by the person.
418 [(28)] (31) "Limousine" means a motor vehicle licensed by the state or a local
419 authority, other than a bus or taxicab:
420 (a) in which the driver and a passenger are separated by a partition, glass, or other
421 barrier; and
422 (b) that is provided by a company to one or more individuals at a fixed charge in
423 accordance with the company's tariff for the purpose of giving the one or more individuals the
424 exclusive use of the limousine and a driver to travel to one or more specified destinations.
425 [(29)] (32) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
426 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
427 vinous, or fermented, or other drink, or drinkable liquid that:
428 (A) contains at least .5% alcohol by volume; and

429 (B) is suitable to use for beverage purposes.
430 (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
431 (b) "Liquor" does not include a beverage defined as a beer.
432 [(30)] (33) "Local authority" means:
433 (a) the governing body of the county if the premises are located in an unincorporated
434 area of a county; or
435 (b) the governing body of the city or town if the premises are located in an incorporated
436 city or a town.
437 [(31)] (34) "Manufacture" means to distill, brew, rectify, mix, compound, process,
438 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
439 others.
440 [(32)] (35) "Member" means [a person] an individual who, after paying regular dues,
441 has full privileges of [a] an equity club licensee or fraternal club [under this title] licensee, as
442 defined in Section 32A-5-101 .
443 [(33)] (36) (a) "Military installation" means a base, air field, camp, post, station, yard,
444 center, or homeport facility for a ship:
445 (i) (A) under the control of the United States Department of Defense; or
446 (B) of the National Guard;
447 (ii) that is located within the state; and
448 (iii) including a leased facility.
449 (b) "Military installation" does not include a facility used primarily for:
450 (i) civil works;
451 (ii) a rivers and harbors project; or
452 (iii) a flood control project.
453 [(34)] (37) "Minor" means an individual under the age of 21 years.
454 [(35)] (38) "Nude," "nudity," or "state of nudity" means:
455 (a) the appearance of:
456 (i) the nipple or areola of a female human breast;
457 (ii) a human genital;
458 (iii) a human pubic area; or
459 (iv) a human anus; or

460 (b) a state of dress that fails to opaquely cover:
461 (i) the nipple or areola of a female human breast;
462 (ii) a human genital;
463 (iii) a human pubic area; or
464 (iv) a human anus.
465 [(36)] (39) "Outlet" means a location other than a state store or package agency where
466 an alcoholic beverage is sold pursuant to a license [issued] granted by the commission.
467 [(37)] (40) "Package" means any of the following containing liquor:
468 (a) a container;
469 (b) a bottle;
470 (c) a vessel; or
471 (d) other receptacle.
472 [(38)] (41) "Package agency" means a retail liquor location operated:
473 (a) under a contractual agreement with the department; and
474 (b) by a person:
475 (i) other than the state; and
476 (ii) who is authorized by the commission to sell package liquor for consumption off the
477 premises of the package agency.
478 [(39)] (42) "Package agent" means a person permitted by the commission to operate a
479 package agency pursuant to a contractual agreement with the department to sell liquor from
480 premises that the package agent shall provide and maintain.
481 [(40)] (43) "Permittee" means a person issued a permit by the commission to perform
482 an act or exercise a privilege as specifically granted in the permit.
483 [(41)] (44) "Person" means an individual, partnership, firm, corporation, limited
484 liability company, association, business trust, or other form of business enterprise, including a
485 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
486 more limited meaning is disclosed by the context.
487 [(42)] (45) "Premises" means a building, enclosure, room, or equipment used in
488 connection with the sale, storage, service, manufacture, distribution, or consumption of an
489 alcoholic product, unless otherwise defined in this title or in the rules adopted by the
490 commission.

491 [(43)] (46) "Prescription" means a writing in legal form, signed by a physician or
492 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
493 [(44)] (47) (a) "Privately hosted event" or "private social function" means a specific
494 social, business, or recreational event:
495 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
496 group; and
497 (ii) that is limited in attendance to people who are specifically designated and their
498 guests.
499 (b) "Privately hosted event" and "private social function" does not include an event to
500 which the general public is invited, whether for an admission fee or not.
501 [(45)] (48) (a) "Proof of age" means:
502 (i) an identification card;
503 (ii) an identification that:
504 (A) is substantially similar to an identification card;
505 (B) is issued in accordance with the laws of a state other than Utah in which the
506 identification is issued;
507 (C) includes date of birth; and
508 (D) has a picture affixed;
509 (iii) a valid driver license certificate that:
510 (A) includes date of birth;
511 (B) has a picture affixed; and
512 (C) is issued:
513 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
514 (II) in accordance with the laws of the state in which it is issued;
515 (iv) a military identification card that:
516 (A) includes date of birth; and
517 (B) has a picture affixed; or
518 (v) a valid passport.
519 (b) "Proof of age" does not include a driving privilege card issued in accordance with
520 Section 53-3-207 .
521 [(46)] (49) (a) "Public building" means a building or permanent structure owned or

522 leased by the state, a county, or local government entity that is used for:
523 (i) public education;
524 (ii) transacting public business; or
525 (iii) regularly conducting government activities.
526 (b) "Public building" does not mean or refer to a building owned by the state or a
527 county or local government entity when the building is used by a person, in whole or in part,
528 for a proprietary function.
529 [(47)] (50) "Representative" means an individual who is compensated by salary,
530 commission, or other means for representing and selling an alcoholic beverage product of a
531 manufacturer, supplier, or importer of liquor including:
532 (a) wine;
533 (b) heavy beer; or
534 (c) [on or after October 1, 2008,] a flavored malt beverage.
535 [(48)] (51) "Residence" means a person's principal place of abode within Utah.
536 (52) "Resident," in relation to a resort, is as defined in Section 32A-4a-102 .
537 (53) "Resort" is as defined in Section 32A-4a-102 .
538 [(49)] (54) "Restaurant" means a business establishment:
539 (a) where a variety of foods [is] are prepared and complete meals are served to the
540 general public;
541 (b) located on a premises having adequate culinary fixtures for food preparation and
542 dining accommodations; and
543 (c) that is engaged primarily in serving meals to the general public.
544 [(50)] (55) "Retailer" means a person engaged in the sale or distribution of an alcoholic
545 beverage to a consumer.
546 [(51)] (56) (a) "Sample" includes:
547 (i) a department sample; and
548 (ii) an industry representative sample.
549 (b) "Department sample" means liquor that is placed in the possession of the
550 department for testing, analysis, and sampling including:
551 (i) wine;
552 (ii) heavy beer; or

553 (iii) [on or after October 1, 2008,] a flavored malt beverage.
554 (c) "Industry representative sample" means liquor that is placed in the possession of the
555 department:
556 (i) for testing, analysis, and sampling by a local industry representative on the premises
557 of the department to educate the local industry representative of the quality and characteristics
558 of the product; and
559 (ii) including:
560 (A) wine;
561 (B) heavy beer; or
562 (C) [on or after October 1, 2008,] a flavored malt beverage.
563 [(52)] (57) (a) "School" means a building used primarily for the general education of
564 minors.
565 (b) "School" does not include:
566 (i) a nursery school;
567 (ii) an infant day care center; or
568 (iii) a trade or technical school.
569 [(53)] (58) "Sell," "sale," and "to sell" means a transaction, exchange, or barter
570 whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
571 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
572 obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
573 employee, unless otherwise defined in this title or the rules made by the commission.
574 [(54)] (59) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
575 which opaque clothing covers no more than:
576 (a) the nipple and areola of the female human breast in a shape and color other than the
577 natural shape and color of the nipple and areola; and
578 (b) the human genitals, pubic area, and anus:
579 (i) with no less than the following at its widest point:
580 (A) four inches coverage width in the front of the human body; and
581 (B) five inches coverage width in the back of the human body; and
582 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
583 [(55)] (60) "Sexually oriented entertainer" means a person who while in a state of

584 seminudity appears at or performs:
585 (a) for the entertainment of one or more patrons;
586 (b) on the premises of:
587 (i) a [class D private] social club licensee as defined in [Subsection] Section
588 32A-5-101 [(3)]; or
589 (ii) a tavern;
590 (c) on behalf of or at the request of the licensee described in Subsection [(55)] (60)(b);
591 (d) on a contractual or voluntary basis; and
592 (e) whether or not the person is designated:
593 (i) an employee of the licensee described in Subsection [(55)] (60)(b);
594 (ii) an independent contractor of the licensee described in Subsection [(55)] (60)(b);
595 (iii) an agent of the licensee described in Subsection [(55)] (60)(b); or
596 (iv) otherwise of the licensee described in Subsection [(55)] (60)(b).
597 [(56)] (61) "Small brewer" means a brewer who manufactures less than 60,000 barrels
598 of beer, heavy beer, and flavored malt beverages per year.
599 [(57)] (62) (a) "Spirituous liquor" means liquor that is distilled.
600 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
601 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
602 [(58) (a) "State label" means the official label designated by the commission affixed to
603 a liquor container sold in the state.]
604 [(b) "State label" includes the department identification mark and inventory control
605 number.]
606 [(59)] (63) (a) "State store" means a facility for the sale of package liquor:
607 (i) located on premises owned or leased by the state; and
608 (ii) operated by a state employee.
609 (b) "State store" does not apply to a:
610 (i) licensee;
611 (ii) permittee; or
612 (iii) package agency.
613 (64) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
614 3, Limited Restaurant Licenses:

615 (a) "Storage area" means an area on the premises of a restaurant where a licensee
616 stores an alcoholic beverage or alcoholic product.
617 (b) "Store" means to place or maintain in a location an alcoholic beverage or alcoholic
618 product from which a person draws to prepare an alcoholic beverage for service to a patron of
619 the restaurant, except as provided in Subsection 32A-4-106 (7)(e)(ii)(B) or
620 32A-4-307 (7)(e)(ii)(B).
621 (65) "Sublicense" is as defined in Section 32A-4a-102 .
622 [(60)] (66) "Supplier" means a person selling an alcoholic beverage to the department.
623 [(61)] (67) (a) "Tavern" means a business establishment that is:
624 (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
625 establishment's premises; and
626 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
627 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
628 revenue of the sale of food, although food need not be sold in the establishment:
629 (i) a beer bar;
630 (ii) a parlor;
631 (iii) a lounge;
632 (iv) a cabaret; or
633 (v) a nightclub.
634 [(62)] (68) "Temporary domicile" means the principal place of abode within Utah of a
635 person who does not have a present intention to continue residency within Utah permanently or
636 indefinitely.
637 [(63)] (69) "Unsaleable liquor merchandise" means merchandise that:
638 (a) is unsaleable because the merchandise is:
639 (i) unlabeled;
640 (ii) leaky;
641 (iii) damaged;
642 (iv) difficult to open; or
643 (v) partly filled;
644 (b) is in a container:
645 (i) having faded labels or defective caps or corks;

646 (ii) in which the contents are:
647 (A) cloudy;
648 (B) spoiled; or
649 (C) chemically determined to be impure; or
650 (iii) that contains:
651 (A) sediment; or
652 (B) a foreign substance; or
653 (c) is otherwise considered by the department as unfit for sale.
654 [(64) "Visitor" means an individual that in accordance with Section 32A-5-107 holds
655 limited privileges in a private club by virtue of a visitor card.]
656 [(65)] (70) "Warehouser" means a person, other than a licensed manufacturer, engaged
657 in the importation for sale, storage, or distribution of liquor regardless of amount.
658 [(66)] (71) (a) "Wholesaler" means a person engaged in the importation for sale, or in
659 the sale of beer in wholesale or jobbing quantities to one or more retailers.
660 (b) Notwithstanding Subsection [(66)] (71)(a), "wholesaler" does not include a small
661 brewer selling beer manufactured by that brewer.
662 [(67)] (72) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
663 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
664 another ingredient is added.
665 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
666 provided in this title.
667 Section 5. Section 32A-1-107 is amended to read:
668 32A-1-107. Powers and duties of the commission.
669 (1) The commission shall:
670 (a) act as a general policymaking body on the subject of alcoholic product control;
671 (b) adopt and issue policies, directives, rules, and procedures;
672 (c) set policy by written rules that establish criteria and procedures for:
673 (i) granting, denying, suspending, or revoking [permits, licenses, certificates of
674 approval, and package agencies] a permit, license, certificate of approval, or package agency;
675 (ii) controlling liquor merchandise inventory including:
676 (A) listing and delisting [products] a product;

677 (B) the procedures for testing a new [products] product;
678 (C) purchasing policy;
679 (D) turnover requirements for a regularly coded [products] product to be continued;
680 and
681 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
682 (iii) determining the location of a state [stores, package agencies, and outlets] store,
683 package agency, or outlet;
684 (d) decide within the limits and under the conditions imposed by this title, the number
685 and location of state stores, package agencies, and outlets established in the state;
686 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
687 certificates of approval, and package agencies for the purchase, sale, storage, service,
688 manufacture, distribution, and consumption of an alcoholic [products] product:
689 (i) a package [agencies] agency;
690 (ii) a restaurant [licenses] license;
691 (iii) an airport lounge [licenses] license;
692 (iv) a limited restaurant [licenses] license;
693 (v) an on-premise banquet [licenses] license;
694 (vi) a resort license, under which four or more sublicenses may be included;
695 [(vi) private] (vii) a club [licenses] license;
696 [(vii)] (viii) an on-premise beer retailer [licenses] license;
697 [(viii)] (ix) a temporary special event beer [permits] permit;
698 [(ix)] (x) a special use [permits] permit;
699 [(x)] (xi) a single event [permits] permit;
700 [(xi)] (xii) a manufacturing [licenses] license;
701 [(xii)] (xiii) a liquor warehousing [licenses] license;
702 [(xiii)] (xiv) a beer wholesaling [licenses] license; and
703 [(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
704 (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
705 package agencies, and outlets;
706 (g) issue and distribute price lists showing the price to be paid by [purchasers] a
707 purchaser for each class, variety, or brand of liquor kept for sale by the department;

708 (h) (i) require the director to follow sound management principles; and
709 (ii) require periodic reporting from the director to ensure that:
710 (A) sound management principles are being followed; and
711 (B) policies established by the commission are being observed;
712 (i) (i) receive, consider, and act in a timely manner upon [all] the reports,
713 recommendations, and matters submitted by the director to the commission; and
714 (ii) do [all] the things necessary to support the department in properly performing the
715 department's duties and responsibilities;
716 (j) obtain temporarily and for special purposes the services of [experts and persons] an
717 expert or person engaged in the practice of a profession or who possess any needed skills,
718 talents, or abilities if:
719 (i) considered expedient; and
720 (ii) approved by the governor;
721 (k) prescribe the duties of a departmental [officials] official authorized to assist the
722 commission in issuing [permits, licenses, certificates of approval, and package agencies] a
723 permit, license, certificate of approval, or package agency under this title;
724 (l) prescribe, consistent with this title, the fees payable for:
725 (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
726 certificate of approval, or package agency issued under this title; or
727 (ii) anything done or permitted to be done under this title;
728 (m) prescribe the conduct, management, and equipment of [any] premises upon which
729 an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
730 (n) make rules governing the credit terms of beer sales to retailers within the state;
731 (o) require that each of the following, where required in this title, display in a
732 prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
733 or drugs is a serious crime that is prosecuted aggressively in Utah.":
734 (i) a state store;
735 (ii) a permittee;
736 (iii) a licensee; and
737 (iv) a package agency; and
738 (p) subject to Subsection (4) and as provided in this title, impose fines against:

739 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
740 (1)(e); or
741 (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
742 package agent described in Subsection (1)(p)(i).
743 (2) The power of the commission to do the following is plenary, except as otherwise
744 provided by this title, and not subject to review:
745 (a) establish a state [stores] store;
746 (b) create a package [agencies] agency;
747 (c) grant authority to operate a package [agencies] agency; and
748 (d) grant or deny [permits, licenses, and certificates] a permit, license, or certificate of
749 approval.
750 (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
751 [any] a suspension or revocation [hearings] hearing required by law.
752 (4) (a) In [any] a case [where] when the commission is given the power to suspend
753 [any ] a permit, license, certificate of approval, or package agency the commission may impose
754 a fine in addition to or in lieu of suspension.
755 (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
756 (i) [any] a single Notice of Agency Action; or
757 (ii) a single action against a package agency.
758 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
759 for each violation.
760 Section 6. Section 32A-1-109 is amended to read:
761 32A-1-109. Powers and duties of the director.
762 Subject to the powers and responsibilities vested in the commission by this title the
763 director shall:
764 (1) prepare and propose to the commission general policies, directives, rules, and
765 procedures governing the administrative activities of the department, and may submit other
766 recommendations to the commission as the director considers in the interest of [its] the
767 commission's or the department's business;
768 (2) within the general policies, directives, rules, and procedures of the commission[,]:
769 (a) provide day-to-day direction, coordination, and delegation of responsibilities in the

770 administrative activities of the department's business; and [promulgate]
771 (b) make internal department policies, directives, rules, and procedures relating to
772 department personnel matters, and the day-to-day operation of the department consistent with
773 those of the commission;
774 (3) (a) appoint or employ personnel as considered necessary in the administration of
775 this title [and];
776 (b) prescribe the conditions of [their] employment[, define their] for the personnel
777 described in Subsection (3)(a);
778 (c) define the respective duties and powers[, fix their] for the personnel described in
779 Subsection (3)(a);
780 (d) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
781 Management Act, for the personnel described in Subsection (3)(a); and
782 (e) designate those employees required to give [bonds] a bond and specify the bond
783 amounts;
784 (4) establish and secure adherence to a system of reports, controls, and performance in
785 [all] matters relating to personnel, security, department property management, and operation of
786 [department offices, warehouses, state stores, package agencies, and licensees;]:
787 (a) a department office;
788 (b) a warehouse;
789 (c) a state store;
790 (d) a package agency; and
791 (e) a licensee;
792 (5) within the policies, directives, rules, and procedures approved by the commission
793 and provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
794 transportation, and delivery of an alcoholic [products] product;
795 (6) prepare for commission approval:
796 (a) recommendations regarding the location, establishment, relocation, and closure of
797 [state stores and package agencies] a state store or package agency;
798 (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation
799 of [licenses and permits] a license or permit;
800 (c) an annual [budgets] budget, proposed legislation, and reports as required by law and

801 sound business principles;
802 (d) plans for reorganizing divisions of the department and [their] the functions of the
803 divisions;
804 (e) manuals containing [all] commission and department policies, directives, rules, and
805 procedures;
806 (f) an inventory control system;
807 (g) any other [reports and recommendations] report or recommendation as may be
808 requested by the commission;
809 (h) rules governing the credit terms of the sale of beer [sales] to a beer retailer
810 [licensees] licensee;
811 (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
812 dispensing [systems] system;
813 (j) rules governing the posting of a list of types and brand names of liquor [being]
814 served through a calibrated metered dispensing [systems] system;
815 (k) price lists issued and distributed showing the price to be paid for each class, variety,
816 or brand of liquor kept for sale at a state [stores, package agencies, and outlets] store, package
817 agency, or outlet;
818 (l) directives prescribing the books of account kept by the department and by a state
819 [stores, package agencies, and outlets;] store, package agency, or outlet; and
820 [(m) an official state label and the manner in which the label shall be affixed to every
821 package of liquor sold under this title; and]
822 [(n)] (m) a policy prescribing the manner of giving and serving [notices] a notice
823 required by this title or rules made under this title;
824 (7) make available through the department to any person, upon request, a copy of [any]
825 a policy or directive [promulgated] made by the director;
826 [(8) adopt internal departmental policies, directives, rules, and procedures relating to
827 department personnel matters and the day-to-day operation of the department that are
828 consistent with those of the commission;]
829 [(9)] (8) keep a current copy of [the manuals containing] a manual that contains the
830 rules and policies of the department and commission available for public inspection;
831 [(10)] (9) (a) after consultation with the governor, determine whether an alcoholic

832 [products] product should not be sold, offered for sale, or otherwise furnished in an area of the
833 state during a period of emergency that is proclaimed by the governor to exist in that area; and
834 (b) issue [any] a necessary public [announcements and directives] announcement or
835 directive with respect to the determination described in Subsection [(10)] (9)(a); and
836 [(11)] (10) perform other duties required by the commission and by law.
837 Section 7. Section 32A-1-115 is amended to read:
838 32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
839 -- Distribution.
840 (1) As used in this section:
841 (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
842 Account created in this section.
843 (b) "Alcohol-related offense" means:
844 (i) a violation of:
845 (A) Section 41-6a-502 ; or
846 (B) an ordinance that complies with the requirements of:
847 (I) Subsection 41-6a-510 (1); or
848 (II) Section 76-5-207 ; or
849 (ii) an offense involving the:
850 (A) illegal sale of alcohol;
851 (B) illegal distribution of alcohol;
852 (C) illegal transportation of alcohol;
853 (D) illegal possession of alcohol; or
854 (E) illegal consumption of alcohol.
855 (c) "Annual conviction time period" means the time period that:
856 (i) begins on July 1 and ends on June 30; and
857 (ii) immediately precedes the fiscal year for which an appropriation under this section
858 is made.
859 (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
860 Coordinating Council created in Section 63M-7-301 .
861 (e) "Municipality" means:
862 (i) a city; or

863 (ii) a town.
864 (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
865 Beverage Enforcement and Treatment Restricted Account."
866 (b) The account shall be funded from:
867 (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
868 (ii) any appropriations made to the account by the Legislature; and
869 (iii) interest described in Subsection (2)(c).
870 (c) Interest earned on the account shall be deposited into the account.
871 (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
872 revenues in the account shall be used for statewide public purposes including promoting the
873 reduction of the harmful effects of over consumption of alcoholic beverages by adults and
874 alcohol consumption by minors by funding exclusively programs or projects related to
875 prevention, treatment, detection, prosecution, and control of violations of this title and other
876 offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
877 (ii) The portion distributed under this section to counties may also be used for the
878 confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
879 contributing factor.
880 (iii) [Any] A municipality or county entitled to receive [funds] monies shall use the
881 [funds] monies exclusively as required by this Subsection (2)(d).
882 (iv) The appropriations provided for under Subsection (3) are:
883 (A) intended to supplement the budget of the appropriate agencies of each municipality
884 and county within the state to enable the municipalities and counties to more effectively fund
885 the programs and projects described in this Subsection (2)(d); and
886 (B) not intended to replace [funds] monies that would otherwise be allocated for the
887 programs and projects in this Subsection (2)(d).
888 (3) (a) The revenues deposited into the account shall be distributed to municipalities
889 and counties:
890 (i) to the extent appropriated by the Legislature except that the Legislature shall
891 appropriate each fiscal year an amount equal to at least the amount deposited in the account in
892 accordance with Section 59-15-109 ; and
893 (ii) as provided in this Subsection (3).

894 (b) The amount appropriated from the account shall be distributed as follows:
895 (i) 25% to municipalities and counties based upon the percentage of the state
896 population residing in each municipality and county;
897 (ii) 30% to municipalities and counties based upon each municipality's and county's
898 percentage of the statewide convictions for all alcohol-related offenses;
899 (iii) 20% to municipalities and counties based upon the percentage of all state stores,
900 package agencies, liquor licensees, and beer licensees in the state that are located in each
901 municipality and county; and
902 (iv) 25% to the counties for confinement and treatment purposes authorized by this
903 section based upon the percentage of the state population located in each county.
904 (c) (i) Except as provided in Subsection (3)(c)(iii), a municipality that does not have a
905 law enforcement agency may not receive monies under this section.
906 (ii) The State Tax Commission:
907 (A) may not distribute the monies the municipality would receive but for the
908 municipality not having a law enforcement agency to that municipality; and
909 (B) shall distribute the monies that the municipality would have received but for it not
910 having a law enforcement agency to the county in which the municipality is located for use by
911 the county in accordance with this section.
912 (iii) Notwithstanding Subsections (3)(c)(i) and (ii), if the coordinating council finds
913 that a municipality described in Subsection (3)(c)(i) demonstrates that the municipality can use
914 the monies that the municipality is otherwise eligible to receive in accordance with this section,
915 the coordinating council may direct the State Tax Commission to distribute the money to the
916 municipality.
917 (4) To determine the distributions required by Subsection (3)(b)(ii), the State Tax
918 Commission shall annually:
919 (a) for an annual conviction time period:
920 (i) multiply by two the total number of convictions in the state obtained during the
921 annual conviction time period for violation of:
922 (A) Section 41-6a-502 ; or
923 (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
924 Section 76-5-207 ; and

925 (ii) add to the number calculated under Subsection (4)(a)(i) the number of convictions
926 obtained during the annual conviction time period for all alcohol-related offenses other than the
927 alcohol-related offenses described in Subsection (4)(a)(i);
928 (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
929 obtained in Subsection (4)(a); and
930 (c) multiply the amount calculated under Subsection (4)(b), by the number of
931 convictions obtained in each municipality and county during the annual conviction time period
932 for alcohol-related offenses.
933 (5) For purposes of this section:
934 (a) the number of state stores, package agencies, and licensees located within the limits
935 of each municipality and county:
936 (i) is the number determined by the department to be so located;
937 (ii) includes all:
938 (A) [private clubs] club licenses;
939 (B) restaurants;
940 (C) limited restaurants;
941 (D) on-premise banquet licenses;
942 (E) airport lounges;
943 (F) resort licenses;
944 [(F)] (G) package agencies; and
945 [(G)] (H) state stores; and
946 (iii) does not include on-premise beer retailer licensees;
947 (b) the number of state stores, package agencies, and licensees in a county consists only
948 of that number located within unincorporated areas of the county;
949 (c) population figures shall be determined according to the most current population
950 estimates prepared by the Utah Population Estimates Committee;
951 (d) a county's population figure for the 25% distribution to municipalities and counties
952 under Subsection (3)(b)(i) shall be determined only with reference to the population in the
953 unincorporated areas of the county;
954 (e) a county's population figure under Subsection (3)(b)(iv) for the 25% distribution to
955 counties only shall be determined with reference to the total population in the county, including

956 that of municipalities;
957 (f) a conviction occurs in the municipality or county that actually prosecutes the
958 offense to judgment; and
959 (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
960 occur in the municipality or county that, except for the guilty plea, would have prosecuted the
961 offense.
962 (6) By not later than September 1 each year:
963 (a) the state court administrator shall certify to the State Tax Commission the number
964 of convictions obtained for alcohol-related offenses in each municipality or county in the state
965 during the annual conviction time period; and
966 (b) the coordinating council shall notify the State Tax Commission of any municipality
967 that does not have a law enforcement agency.
968 (7) By not later than December 1 of each year, the coordinating council shall notify the
969 State Tax Commission for the fiscal year of appropriation of:
970 (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
971 (b) any county that may receive a distribution allocated to a municipality described in
972 Subsection (3)(c)(ii);
973 (c) any municipality or county that may not receive a distribution because the
974 coordinating council has suspended the payment under Subsection (10)(a)(i); and
975 (d) any municipality or county that receives a distribution because the suspension of
976 payment has been cancelled under Subsection (10)(a)(ii).
977 (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
978 Commission shall annually distribute to each municipality and county the portion of the
979 appropriation that the municipality or county is eligible to receive under this section, except for
980 any municipality or county that the coordinating council notifies the State Tax Commission in
981 accordance with Subsection (7) may not receive a distribution in that fiscal year.
982 (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
983 counties in applying for distributions under this section.
984 (ii) The forms described in this Subsection (8) may require the submission of
985 information the State Tax Commission considers necessary to enable the State Tax
986 Commission to comply with this section.

987 (9) A municipality or county that receives any monies under this section during a fiscal
988 year shall by no later than October 1 following the fiscal year:
989 (a) report to the coordinating council:
990 (i) the programs or projects of the municipality or county that receive monies under
991 this section;
992 (ii) if the monies for programs or projects were exclusively used as required by
993 Subsection (2)(d);
994 (iii) indicators of whether the programs or projects that receive monies under this
995 section are effective; and
996 (iv) if [any] monies received under this section were not expended by the municipality
997 or county; and
998 (b) provide the coordinating council a statement signed by the chief executive officer
999 of the county or municipality attesting that the monies received under this section were used in
1000 addition to [any] monies appropriated or otherwise available for the county's or municipality's
1001 law enforcement and were not used to supplant those monies.
1002 (10) (a) The coordinating council may, by a majority vote:
1003 (i) suspend future payments under Subsection (8) to a municipality or county that:
1004 (A) does not file a report that meets the requirements of Subsection (9); or
1005 (B) the coordinating council finds does not use the monies as required by Subsection
1006 (2)(d) on the basis of the report filed by the municipality or county under Subsection (9); and
1007 (ii) cancel a suspension under Subsection (10)(a)(i).
1008 (b) The State Tax Commission shall:
1009 (i) retain monies that a municipality or county does not receive under Subsection
1010 (10)(a); and
1011 (ii) notify the coordinating council of the balance of retained monies under this
1012 Subsection (10)(b) after the annual distribution under Subsection (8).
1013 (11) (a) Subject to the requirements of this Subsection (11), the coordinating council
1014 shall award the balance of retained monies under Subsection (10)(b):
1015 (i) as prioritized by majority vote of the coordinating council; and
1016 (ii) as grants to:
1017 (A) a county;

1018 (B) a municipality;
1019 (C) the Department of Alcoholic Beverage Control;
1020 (D) the Department of Human Services;
1021 (E) the Department of Public Safety; or
1022 (F) the Utah State Office of Education.
1023 (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
1024 council shall notify the State Tax Commission of [any] grants awarded under this Subsection
1025 (11).
1026 (c) The State Tax Commission shall make payments of [grants] a grant:
1027 (i) upon receiving notice as provided under Subsection (11)(b); and
1028 (ii) by not later than June 30 of the fiscal year of the appropriation.
1029 (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
1030 exclusively for programs or projects described in Subsection (2)(d).
1031 Section 8. Section 32A-1-119 is amended to read:
1032 32A-1-119. Disciplinary proceedings -- Procedure.
1033 (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
1034 final [unappealable] judgment or order is issued[.] that:
1035 (a) is not appealed, and the time to appeal the judgment has expired; or
1036 (b) is appealed, and is affirmed, in whole or in part, on appeal.
1037 (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
1038 proceeding to inquire into a matter necessary and proper for the administration of this title and
1039 rules adopted under this title:
1040 (i) the commission;
1041 (ii) a hearing examiner appointed by the commission for the purposes provided in
1042 Subsection 32A-1-107 (3);
1043 (iii) the director; and
1044 (iv) the department.
1045 (b) Except as provided in this section or Section 32A-3-106 , the following shall
1046 comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
1047 Procedures Act, in an adjudicative proceeding:
1048 (i) the commission;

1049 (ii) a hearing examiner appointed by the commission;
1050 (iii) the director; and
1051 (iv) the department.
1052 (c) Except where otherwise provided by law, an adjudicative proceeding before the
1053 commission or a hearing examiner appointed by the commission shall be:
1054 (i) video or audio recorded; and
1055 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
1056 Open and Public Meetings Act.
1057 (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
1058 concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
1059 Personnel Management Act.
1060 (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
1061 conducted in accordance with rules, policies, and procedures made by the commission,
1062 director, or department.
1063 (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
1064 under the authority of the commission, which is responsible for rendering a final decision and
1065 order on a disciplinary matter.
1066 (b) (i) Nothing in this section precludes the commission from appointing a necessary
1067 officer, including a hearing examiner, from within or without the department, to administer the
1068 disciplinary proceeding process.
1069 (ii) A hearing examiner appointed by the commission:
1070 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
1071 (B) shall submit to the commission a report including:
1072 (I) findings of fact determined on the basis of a preponderance of the evidence
1073 presented at the hearing;
1074 (II) conclusions of law; and
1075 (III) recommendations.
1076 (c) Nothing in this section precludes the commission, after the commission renders its
1077 final decision and order, from having the director prepare, issue, and cause to be served on the
1078 parties the final written order on behalf of the commission.
1079 (4) Subject to Section 32A-1-119.5 :

1080 (a) The department may initiate a disciplinary proceeding described in Subsection
1081 (4)(b) if the department receives:
1082 (i) a report from a government agency, peace officer, examiner, or investigator alleging
1083 that a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or
1084 the rules of the commission;
1085 (ii) a final adjudication of criminal liability against a person listed in Subsections
1086 32A-1-105 [(17)](18)(a)(i) through (vii) based on an alleged violation of this title; or
1087 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
1088 Liability, against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) based
1089 on an alleged violation of this title.
1090 (b) The department may initiate a disciplinary proceeding if the department receives an
1091 item listed in Subsection (4)(a) to determine:
1092 (i) whether a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii)
1093 violated this title or rules of the commission; and
1094 (ii) if a violation is found, the appropriate sanction to be imposed.
1095 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
1096 (i) if required by law;
1097 (ii) before revoking or suspending a permit, license, or certificate of approval issued
1098 under this title; or
1099 (iii) before imposing a fine against a person listed in Subsections
1100 32A-1-105 [(17)](18)(a)(i) through (vii).
1101 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
1102 hearing after receiving proper notice is an admission of the charged violation.
1103 (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
1104 attend or remain in attendance.
1105 (d) The commission or an appointed hearing examiner shall preside over a disciplinary
1106 proceeding hearing.
1107 (e) A disciplinary proceeding hearing may be closed only after the commission or
1108 hearing examiner makes a written finding that the public interest in an open hearing is clearly
1109 outweighed by factors enumerated in the closure order.
1110 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding

1111 hearing may:
1112 (A) administer oaths or affirmations;
1113 (B) take evidence;
1114 (C) take a deposition within or without this state; and
1115 (D) require by subpoena from a place within this state:
1116 (I) the testimony of a person at a hearing; and
1117 (II) the production of a book, record, paper, contract, agreement, document, or other
1118 evidence considered relevant to the inquiry.
1119 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
1120 produce a book, paper, document, or tangible thing as required in the subpoena.
1121 (iii) A witness subpoenaed or called to testify or produce evidence who claims a
1122 privilege against self-incrimination may not be compelled to testify, but the commission or the
1123 hearing examiner shall file a written report with the county attorney or district attorney in the
1124 jurisdiction where the privilege is claimed or where the witness resides setting forth the
1125 circumstance of the claimed privilege.
1126 (iv) (A) A person is not excused from obeying a subpoena without just cause.
1127 (B) A district court within the judicial district in which a person alleged to be guilty of
1128 willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
1129 the party issuing the subpoena, may issue an order requiring the person to:
1130 (I) appear before the issuing party; and
1131 (II) (Aa) produce documentary evidence if so ordered; or
1132 (Bb) give evidence regarding the matter in question.
1133 (C) Failure to obey an order of the court may be punished by the court as contempt.
1134 (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
1135 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
1136 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
1137 recommend a penalty more severe than that initially sought by the department in the notice of
1138 agency action.
1139 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
1140 shall be served upon the respective parties.
1141 (iv) The respondent and the department shall be given reasonable opportunity to file a

1142 written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
1143 before final commission action.
1144 (h) In a case heard by the commission, it shall issue its final decision and order in
1145 accordance with Subsection (3).
1146 (6) (a) The commission shall:
1147 (i) render a final decision and order on a disciplinary action; and
1148 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
1149 (b) An order of the commission is [considered] final on the date the order [becomes
1150 effective] is issued.
1151 (c) If the commission is satisfied that a person listed in Subsections
1152 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or the commission's rules, in
1153 accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
1154 (i) suspend or revoke the permit, license, or certificate of approval;
1155 (ii) impose a fine against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i)
1156 through (vii);
1157 (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
1158 licensee, or certificate holder; or
1159 (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
1160 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
1161 32A-1-107 (1)(p) and (4).
1162 (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
1163 licensee shall prominently post a sign provided by the department:
1164 (A) during the suspension; and
1165 (B) at the entrance of the premises of the permittee or licensee.
1166 (ii) The sign required by this Subsection (6)(e) shall:
1167 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
1168 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
1169 sold, served, furnished, or consumed on these premises during the period of suspension."; and
1170 (B) include the dates of the suspension period.
1171 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
1172 to be posted under this Subsection (6)(e) during the suspension period.

1173 (f) If a permit or license is revoked, the commission may order the revocation of a
1174 compliance bond posted by the permittee or licensee.
1175 (g) A permittee or licensee whose permit or license is revoked may not reapply for a
1176 permit or license under this title for three years from the date on which the permit or license is
1177 revoked.
1178 (h) The commission shall transfer all costs assessed into the General Fund in
1179 accordance with Section 32A-1-113 .
1180 (7) Subject to Section 32A-1-119.5 :
1181 (a) In addition to an action taken against a permittee, licensee, or certificate holder
1182 under this section, the department may initiate disciplinary action against an officer, employee,
1183 or agent of a permittee, licensee, or certificate holder.
1184 (b) If an officer, employee, or agent is found to have violated this title, the commission
1185 may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
1186 wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
1187 officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
1188 period determined by the commission.
1189 (8) Subject to Section 32A-1-119.5 :
1190 (a) The department may initiate a disciplinary proceeding for an alleged violation of
1191 this title or the rules of the commission against:
1192 (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
1193 (ii) an officer, employee, agent, or representative of a person listed in Subsection
1194 (8)(a)(i).
1195 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
1196 commission may, in addition to other penalties prescribed by this title, order:
1197 (A) the removal of the manufacturer's, supplier's, or importer's one or more products
1198 from the department's sales list; and
1199 (B) a suspension of the department's purchase of the one or more products described in
1200 Subsection (8)(b)(i)(A) for a period determined by the commission.
1201 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
1202 (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
1203 beverage, or its officer, employee, agent, or representative violates this title; and

1204 (B) the manufacturer, supplier, or importer:
1205 (I) directly commits the violation; or
1206 (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
1207 the violation.
1208 (9) Subject to Section 32A-1-119.5 :
1209 (a) The department may initiate a disciplinary proceeding against a brewer holding a
1210 certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
1211 of the commission.
1212 (b) If the commission makes a finding that the brewer holding a certificate of approval
1213 violates this title or rules of the commission, the commission may take an action against the
1214 brewer holding a certificate of approval that the commission could take against a licensee
1215 including:
1216 (i) suspension or revocation of the certificate of approval; and
1217 (ii) imposition of a fine.
1218 (10) (a) An adjudicative proceeding under this title, including a disciplinary
1219 proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is
1220 a violation of statute that can be prosecuted criminally.
1221 (b) Unless specifically adopted in this title, a procedure or principal that is applicable
1222 to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title
1223 including:
1224 (i) Title 76, Chapter 1, General Provisions;
1225 (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
1226 (iii) Title 76, Chapter 3, Punishments; and
1227 (iv) Title 76, Chapter 4, Inchoate Offenses.
1228 (c) (i) The burden of proof in an adjudicative proceeding under this title is by a
1229 preponderance of the evidence.
1230 (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative
1231 defense, the subject has the burden of proof to establish the affirmative defense by the
1232 preponderance of the evidence.
1233 (d) In an adjudicative proceeding under this title, to find a violation of this title the
1234 commission:

1235 (i) is required to determine whether the conduct that constitutes the violation occurred;
1236 and
1237 (ii) is not required to make a finding of knowledge or intent unless knowledge or intent
1238 is expressly made an element of the violation by statute.
1239 [(10)] (11) (a) If a respondent requests a disciplinary proceeding hearing, the hearing
1240 held by the commission or a hearing examiner appointed by the commission shall proceed
1241 formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
1242 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
1243 and welfare;
1244 (ii) the alleged violation involves:
1245 (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
1246 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
1247 Entertainment Act;
1248 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
1249 of the respondent;
1250 (D) interfering or refusing to cooperate with:
1251 (I) an authorized official of the department or the state in the discharge of the official's
1252 duties in relation to the enforcement of this title; or
1253 (II) a peace officer in the discharge of the peace officer's duties in relation to the
1254 enforcement of this title;
1255 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
1256 (F) unlawful importation of an alcoholic product; or
1257 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
1258 32A-12-601 (2), to a person other than the department or a military installation, except to the
1259 extent permitted by this title; or
1260 (iii) the department determines to seek in a disciplinary proceeding hearing:
1261 (A) an administrative fine exceeding $3,000;
1262 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
1263 or
1264 (C) a revocation of a license, permit, or certificate of approval.
1265 (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall

1266 proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by
1267 the commission in accordance with Subsection (11)(c).
1268 [(b)] (c) The commission shall make rules in accordance with Title 63G, Chapter 3,
1269 Utah Administrative Rulemaking Act, to provide a procedure to implement this Subsection
1270 [(10)] (11).
1271 (12) Notwithstanding the other provisions of this title, the commission may not order a
1272 disciplinary action or fine in accordance with this section if the disciplinary action or fine is
1273 ordered on the basis of a violation:
1274 (a) of a provision in this title related to intoxication or becoming intoxicated; and
1275 (b) if the violation is first investigated by a law enforcement officer, as defined in
1276 Section 53-13-103 , who has not received training regarding the requirements of this title
1277 related to responsible alcoholic beverage sale or service.
1278 Section 9. Section 32A-1-119.5 is amended to read:
1279 32A-1-119.5. Timing of reporting violations.
1280 (1) As used in this section:
1281 (a) "Department compliance officer" means an individual who is:
1282 (i) an auditor or inspector; and
1283 (ii) employed by the department.
1284 (b) "Nondepartment enforcement agency" means an agency that:
1285 (i) (A) is a state agency other than the department; or
1286 (B) is an agency of a county, city, or town; and
1287 (ii) has a responsibility, as provided in another provision of this title, to enforce one or
1288 more provisions of this title.
1289 (c) "Nondepartment enforcement officer" means an individual who is:
1290 (i) a peace officer, examiner, or investigator; and
1291 (ii) employed by an agency described in Subsection (1)(b).
1292 (2) A disciplinary proceeding may not be initiated or maintained by the commission or
1293 department on the basis, in whole or in part, of a violation of this title unless a person listed in
1294 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) against whom the violation is alleged is
1295 notified by the department of the violation in accordance with this section.
1296 (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer

1297 may not report a violation of this title to the department more than eight business days after the
1298 day on which a nondepartment enforcement officer or agency completes an investigation that
1299 finds a violation of this title.
1300 (b) If the commission or department wants the right to initiate or maintain a
1301 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
1302 report described in Subsection (3)(a), the department shall notify a person listed in Subsections
1303 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this title:
1304 (i) by no later than eight business days of the day on which the department receives the
1305 report described in Subsection (3)(a); and
1306 (ii) that the commission or department may initiate or maintain a disciplinary
1307 proceeding on the basis, in whole or in part, of the violation.
1308 (4) If the commission or department wants the right to initiate or maintain a
1309 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
1310 report of a department compliance officer, the department shall notify a person listed in
1311 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
1312 title:
1313 (a) by no later than eight business days of the day on which the department compliance
1314 officer completes an investigation that finds a violation of this title; and
1315 (b) that the commission or department may initiate or maintain a disciplinary
1316 proceeding on the basis, in whole or in part, of the violation.
1317 (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
1318 a person listed in Subsection 32A-1-105 [(15)](18)(a)(vii).
1319 (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
1320 the oral notification the department provides written notification.
1321 (b) The written notification described in Subsection (6)(a) may be sent outside the time
1322 periods required by this section.
1323 (7) The department shall maintain a record of a notification required by Subsection (2),
1324 (3)(b), or (4) that includes:
1325 (a) the name of the person notified; and
1326 (b) the date of the notification.
1327 Section 10. Section 32A-1-304.5 is enacted to read:

1328 32A-1-304.5. Verification of proof of age by certain club licensees.
1329 (1) For purposes of this section, "applicable club licensee" means the following as
1330 defined in Section 32A-5-101 :
1331 (a) a dining club licensee; or
1332 (b) a social club licensee.
1333 (2) Notwithstanding any other provision of this part, an applicable club licensee shall
1334 require that a person authorized to sell or otherwise handle an alcoholic beverage or alcoholic
1335 product under the applicable club license verify proof of age as provided in this section.
1336 (3) A person described in Subsection (2) is required to verify proof of age under this
1337 section before an individual who appears to be 35 years of age or younger:
1338 (a) gains admittance to the premises of a social club licensee; or
1339 (b) procures an alcoholic beverage or alcoholic product on the premises of a dining
1340 club licensee.
1341 (4) To comply with Subsection (3), a person shall:
1342 (a) request the individual present proof of age; and
1343 (b) (i) verify the validity of the proof of age electronically under the verification
1344 program created in Subsection (5); or
1345 (ii) if the proof of age cannot be electronically verified as provided in Subsection
1346 (4)(b)(i), request that the individual comply with a process established by the commission by
1347 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1348 (5) The commission shall establish by rule made in accordance with Title 63G, Chapter
1349 3, Utah Administrative Rulemaking Act, an electronic verification program that includes the
1350 following:
1351 (a) the specifications for the technology used by the applicable club licensee to
1352 electronically verify proof of age, including that the technology display to the person described
1353 in Subsection (2) no more than the following for the individual who presents the proof of age:
1354 (i) the name;
1355 (ii) the age;
1356 (iii) the number assigned to the individual's proof of age by the issuing authority;
1357 (iv) the birth date;
1358 (v) the gender; and

1359 (vi) the status and expiration date of the individual's proof of age; and
1360 (b) the security measures that must be used by an applicable club licensee to ensure
1361 that information obtained under this section is:
1362 (i) used by the applicable club licensee only for purposes of verifying proof of age in
1363 accordance with this section; and
1364 (ii) retained by the applicable club licensee for seven days after the day on which the
1365 applicable club licensee obtains the information.
1366 (6) (a) An applicable club licensee may not disclose information obtained under this
1367 section except as provided under this title.
1368 (b) Information obtained under this section is considered a record for any purpose
1369 under Section 32A-5-107 .
1370 Section 11. Section 32A-1-603 is amended to read:
1371 32A-1-603. Sexually oriented entertainer.
1372 (1) Subject to the restrictions of this section, live entertainment is permitted on a
1373 premises or at an event regulated by the commission.
1374 (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
1375 (a) appear or perform in a state of nudity;
1376 (b) perform or simulate an act of:
1377 (i) sexual intercourse;
1378 (ii) masturbation;
1379 (iii) sodomy;
1380 (iv) bestiality;
1381 (v) oral copulation;
1382 (vi) flagellation; or
1383 (vii) a sexual act that is prohibited by Utah law; or
1384 (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
1385 (3) A sexually oriented entertainer may perform in a state of seminudity:
1386 (a) only in:
1387 (i) a tavern; or [class D private club; and]
1388 (ii) a social club license premises; and
1389 (b) only if:

1390 (i) all windows, doors, and other apertures to the premises are darkened or otherwise
1391 constructed to prevent anyone outside the premises from seeing the performance; and
1392 (ii) the outside entrance doors of the premises remain unlocked.
1393 (4) A sexually oriented entertainer may perform only upon a stage or in a designated
1394 performance area that is:
1395 (a) approved by the commission in accordance with rules made by the commission in
1396 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1397 (b) configured so as to preclude a patron from:
1398 (i) touching the sexually oriented entertainer; or
1399 (ii) placing any money or object on or within the costume or the person of the sexually
1400 oriented entertainer; and
1401 (c) configured so as to preclude the sexually oriented entertainer from touching a
1402 patron.
1403 (5) A sexually oriented entertainer may not touch a patron:
1404 (a) during the sexually oriented entertainer's performance; or
1405 (b) while the sexually oriented entertainer is dressed in performance attire or costume.
1406 (6) A sexually oriented entertainer, while in the portion of the premises used by
1407 patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
1408 entertainer's performance attire or costume from the top of the breast to the knee.
1409 (7) A patron may not be on the stage or in the performance area while a sexually
1410 oriented entertainer is appearing or performing on the stage or in the performance area.
1411 (8) A patron may not:
1412 (a) touch a sexually oriented entertainer:
1413 (i) during the sexually oriented entertainer's performance; or
1414 (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
1415 or
1416 (b) place money or any other object on or within the costume or the person of the
1417 sexually oriented entertainer.
1418 (9) A minor may not be on a premises described in Subsection (3) [when a sexually
1419 oriented entertainer is performing on the premises].
1420 (10) A person who appears or performs for the entertainment of patrons on a premises

1421 or at an event regulated by the commission that is not a tavern or [class D private club] social
1422 club licensee:
1423 (a) may not appear or perform in a state of nudity or a state of seminudity; and
1424 (b) may appear or perform in opaque clothing that completely covers the person's
1425 genitals, pubic area, and anus if the covering:
1426 (i) is not less than the following at its widest point:
1427 (A) four inches coverage width in the front of the human body; and
1428 (B) five inches coverage width in the back of the human body;
1429 (ii) does not taper to less than one inch wide at the narrowest point; and
1430 (iii) if covering a female, completely covers the breast below the top of the areola.
1431 Section 12. Section 32A-2-103 is amended to read:
1432 32A-2-103. Operational restrictions.
1433 (1) (a) Liquor may not be sold from a state store except in a sealed package. [The]
1434 (b) A sealed package may not be opened on the premises of [any] a state store.
1435 (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow
1436 to be consumed by any person [any] an alcoholic beverage on the premises of a state store.
1437 (b) Violation of this Subsection (2) is a class B misdemeanor.
1438 [(3) All liquor sold shall be in packages that are properly marked and labeled in
1439 accordance with the rules adopted under this title.]
1440 [(4)] (3) Liquor may not be sold except at prices fixed by the commission.
1441 [(5)] (4) Liquor may not be sold, delivered, or furnished to [any] a:
1442 (a) minor;
1443 (b) person actually, apparently, or obviously intoxicated;
1444 (c) known habitual drunkard; or
1445 (d) known interdicted person.
1446 [(6)] (5) Sale or delivery of liquor may not be made on or from the premises of [any] a
1447 state store, nor may [any] a state store be kept open for the sale of liquor:
1448 (a) on Sunday;
1449 (b) on [any] a state or federal legal holiday; or
1450 [(c) on any day on which any regular general election, regular primary election, or
1451 statewide special election is held;]

1452 [(d) on any day on which any municipal, local district, special service district, or school
1453 election is held, but only within the boundaries of the municipality, local district, special
1454 service district, or school district holding the election and only if the municipality, local
1455 district, special service district or school district in which the election is being held notifies the
1456 department at least 30 days prior to the date of the election; or]
1457 [(e)] (c) except on days and during hours as the commission may direct by rule or
1458 order.
1459 [(7) Each] (6) A state store shall display in a prominent place in the store a sign in
1460 large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
1461 crime that is prosecuted aggressively in Utah."
1462 [(8)] (7) (a) A minor may not be admitted into, or be on the premises of a state store
1463 unless accompanied by a person who is:
1464 (i) 21 years of age or older; and
1465 (ii) the minor's parent, legal guardian, or spouse.
1466 (b) [Any] A state store employee that has reason to believe that a person who is on the
1467 premises of a state store is under the age of 21 and is not accompanied by a person described in
1468 Subsection [(8)] (7)(a) may:
1469 (i) ask the suspected minor for proof of age;
1470 (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
1471 age; and
1472 (iii) ask the suspected minor or the person who [accompanied] accompanies the
1473 suspected minor for proof of parental, guardianship, or spousal relationship.
1474 (c) [Any] A state store employee shall refuse to sell liquor to the suspected minor and
1475 to the person who [accompanied] accompanies the suspected minor into the state store if [they
1476 fail] the suspected minor or person fails to provide [any of the] information specified in
1477 Subsection [(8)] (7)(b).
1478 (d) [Any] A state store employee shall require [the] a suspected minor and the person
1479 who [accompanied] accompanies the suspected minor into the state store to immediately leave
1480 the premises of the state store if [they fail] the suspected minor or person fails to provide [any
1481 of the] information specified in Subsection [(8)] (7)(b).
1482 Section 13. Section 32A-3-106 is amended to read:

1483 32A-3-106. Operational restrictions.
1484 (1) (a) A package agency may not be operated until a package agency agreement has
1485 been entered into by the package agent and the department.
1486 (b) The agreement shall state the conditions of operation by which the package agent
1487 and the department are bound.
1488 (c) If the package agent violates the conditions, terms, or covenants contained in the
1489 agreement or violates any provisions of this title, the department may take whatever action
1490 against the agent that is allowed by the package agency agreement.
1491 (d) Actions against the package agent are governed solely by the agreement and may
1492 include suspension or revocation of the agency.
1493 (2) (a) A package agency may not purchase liquor from any person except from the
1494 department.
1495 (b) At the discretion of the department, liquor may be provided by the department to a
1496 package agency for sale on consignment.
1497 (3) The department may pay or otherwise remunerate a package agent on any basis
1498 including sales or volume of business done by the agency.
1499 (4) Liquor may not be sold from any package agency except in a sealed package. The
1500 package may not be opened on the premises of a package agency.
1501 [(5) All liquor sold shall be in packages that are properly marked and labeled in
1502 accordance with the rules adopted under this title.]
1503 [(6)] (5) A package agency may not display liquor or price lists in windows or
1504 showcases visible to passersby.
1505 [(7)] (6) (a) An officer, agent, clerk, or employee of a package agency may not
1506 consume or allow to be consumed by any person any alcoholic beverage on the premises of a
1507 package agency.
1508 (b) Violation of this Subsection [(7)] (6) is a class B misdemeanor.
1509 [(8)] (7) Liquor may not be sold except at prices fixed by the commission.
1510 [(9)] (8) Liquor may not be sold, delivered, or furnished to any:
1511 (a) minor;
1512 (b) person actually, apparently, or obviously intoxicated;
1513 (c) known habitual drunkard; or

1514 (d) known interdicted person.
1515 [(10)] (9) (a) Subject to [Subsection (10)(b)] the other provisions of this Subsection
1516 (9), sale or delivery of liquor may not be made on or from the premises of [any] a package
1517 agency nor may [any] a package agency be kept open for the sale of liquor:
1518 (i) (A) on Sunday; or
1519 (B) on a state or federal legal holiday; and
1520 (ii) except on days and during hours as the commission may direct by rule or order.
1521 (b) The restrictions in Subsection [(10)] (9)(a)(i) govern unless:
1522 (i) the package agency is located at a winery licensed under Chapter 8, Manufacturing
1523 Licenses;
1524 (ii) the winery licensed under Chapter 8, Manufacturing Licenses, holds:
1525 (A) a restaurant liquor license under Chapter 4, Part 1, Restaurant Liquor Licenses; or
1526 (B) a limited restaurant license under Chapter 4, Part 3, Limited Restaurant Licenses;
1527 (iii) the restaurant described in Subsection [(10)] (9)(b)(ii) is located at the winery;
1528 (iv) the restaurant described in Subsection [(10)] (9)(b)(ii) sells wines produced at the
1529 winery;
1530 (v) the winery described in Subsection [(10)] (9)(b)(i):
1531 (A) owns the restaurant; or
1532 (B) operates the restaurant;
1533 (vi) the package agency only sells wine produced at the winery; and
1534 (vii) the package agency's days and hours of sale are the same as the days and hours of
1535 sale at the restaurant described in Subsection [(10)] (9)(b)(ii).
1536 [(c) (i) In addition to the requirements of Subsection (10)(a), the sale or delivery of
1537 liquor may not be made on or from the premises of a package agency described in Subsection
1538 (10)(c)(ii) and a package agency described in Subsection (10)(c)(ii) may not be open for the
1539 sale of liquor until after the polls are closed:]
1540 [(A) on a day on which is held:]
1541 [(I) a regular general election;]
1542 [(II) a regular primary election; or]
1543 [(III) a statewide special election; or]
1544 [(B) on a day on which is held a municipal, local district, special service district, or

1545 school election if:]
1546 [(I) the package agency is within the boundaries of the municipality, local district,
1547 special service district, or school district holding the election; and]
1548 [(II) the municipality, local district, special service district, or school district in which
1549 the election is held notifies the department at least 30 days before the day on which the election
1550 is held.]
1551 [(ii) This Subsection (10)(c) applies to a package agency that contracts with the
1552 department to sell liquor in a manner similar to a state store, whether or not the operator of the
1553 package agency has a source of income that is not from the sale of liquor.]
1554 [(iii) The commission may by rule made in accordance with Title 63G, Chapter 3, Utah
1555 Administrative Rulemaking Act, define what constitutes a package a