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First Substitute S.B. 314

This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Fri, Mar 4, 2011 at 6:56 PM by rday. --> This document includes Senate 3rd Reading Floor Amendments (CORRECTED) incorporated into the bill on Mon, Mar 7, 2011 at 12:12 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 9, 2011 at 9:53 AM by jeyring. -->

Senator John L. Valentine proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE AMENDMENTS

             2     
2011 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 and related provisions to address
             10      various issues concerning the regulation of alcoholic products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definition provisions;
             14          .    provides that certain retail licenses are exempt from limitations on the number of
             15      retail licenses that may be issued at any time;
             16          .    addresses the relationship between the number of alcohol-related enforcement
             17      officers and the issuance of licenses;
             18          .    modifies the calculation of the ratio of revenue from food as compared to revenue
             19      from alcoholic products;
             20          .    requires taverns to comply with electronic verification requirements for proof of
             21      age;
             22          .    provides for the governor to appoint the chair of the Alcoholic Beverage Control
             23      Commission;
             24          .    provides for the issuance of certificates of approval for out-of-state importers and
             25      suppliers of beer, heavy beer, and flavored malt beverages;



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             26
         .    provides for the commission with the approval of the governor and with the consent
             27      of the Senate to appoint the director of the Department of Alcoholic Beverage
             28      Control;
             29          .    addresses prohibited interests, relationships, and actions;
             30          .    creates the Alcoholic Beverage Control Act Enforcement Fund and directs how
             31      money in the fund is to be expended;
             32          .    consolidates language regarding warning signs required to be posted in retail
             33      settings, including event permits;
             34          .    addresses the size of containers of heavy beer that can be sold;
             35          .    modifies fees;
             36          .    permits the sale, offer for sale, or furnishing of an alcoholic product by room service
             37      in other than a sealed container;
             38          .    prohibits consumption of an alcoholic product on licensed premises after a specified
             39      time;
             40          .    removes existing restrictions on transferring licenses or locations of licenses and
             41      replaces the provisions with the Transfer of Retail License Act;
             42          .    addresses the discounting of an alcoholic product;
             43          .    changes the numbers used to determine the number of retail licenses that may be
             44      issued at any one time;
             45          .    modifies requirements related to the location in restaurants of dispensing, storage,
             46      and related instruments or equipment;
             47          .    modifies provisions related to dining club licenses;
             48          .    modifies hours of sale;
             49          .    addresses the limit on the number of airport lounge licenses;
             50          .    eliminates outdated language regarding grandfathered facilities for on-premise
             51      banquet licenses;
             52          .    enacts a new reception center license, including:
             53              .    addressing the commission's power to issue;
             54              .    addressing specific licensing requirements; and
             55              .    addressing specific operational requirements;
             56          .    enacts a new beer-only restaurant license, including:



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CORRECTED Senate 3rd Reading Amendments 3-7-2011 rd/po

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Senate 3rd Reading Amendments 3-4-2011 rd/po
             57
             .    addressing the commission's power to issue;
             58              .    addressing specific licensing requirements; and
             59              .    addressing specific operational requirements;
             60          .    imposes additional requirements on on-premise beer retailers;
             61          .    extends certain grandfathering for restaurant sublicenses;
             62          .    prohibits event permittees from selling, offering for sale, or furnishing an indefinite
             63      or unlimited number of alcoholic products during a set period for a fixed price
             64      unless certain conditions are met;
             65          .    clarifies provisions related to the number of drinks a patron may have before them
             66      at an event;
             67          .    requires agreements to create exclusive sales territories for beer wholesaler
             68      licensees;
             68a      S. . clarifies penalties related to obtaining a beer wholesaling license; .S
             69          .    addresses when meetings of the commission may be closed;
             70          . S. [ requires ] addresses .S alcohol training and education seminars S. [ to be taken in
             70a      person ] .S ;
             71          .    requires the governor to comply with certain requirements under the Budgetary
             72      Procedures Act; and
             73          .    makes technical and conforming amendments.
             74      Money Appropriated in this Bill:
             75          This bill appropriates:
             76          .    to the Department of Public Safety - Programs and Operations, as S. [ an ] .S ongoing
             77      S. [ appropriation ] and one time appropriations .S :
             77a               S. . from the General Fund, one time, $83,600; and .S
             78              .    from the General Fund, S. ongoing, .S ( S. [ $2,900,000 ] $2,642,900 .S ).
             79      Other Special Clauses:
             80          This bill provides an effective date.
             81      Utah Code Sections Affected:
             82      AMENDS:
             83          32B-1-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             84          32B-1-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             85          32B-1-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             86          32B-1-407 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             87          32B-1-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276



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             88
         32B-1-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             89          32B-2-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             90          32B-2-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             91          32B-2-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             92          32B-2-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             93          32B-2-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             94          32B-2-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             95          32B-2-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             96          32B-2-606 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             97          32B-4-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             98          32B-4-206 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             99          32B-4-208 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             100          32B-4-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             101          32B-4-420 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             102          32B-4-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             103          32B-5-301 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             104          32B-5-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             105          32B-5-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             106          32B-5-307 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             107          32B-5-309 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             108          32B-6-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             109          32B-6-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             110          32B-6-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             111          32B-6-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             112          32B-6-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             113          32B-6-302 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             114          32B-6-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             115          32B-6-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             116          32B-6-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             117          32B-6-403 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             118          32B-6-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276



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             119
         32B-6-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             120          32B-6-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             121          32B-6-502 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             122          32B-6-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             123          32B-6-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             124          32B-6-603 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             125          32B-6-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             126          32B-6-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             127          32B-6-702 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             128          32B-6-703 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             129          32B-6-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             130          32B-6-706 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             131          32B-8-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             132          32B-8-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             133          32B-8-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             134          32B-8-401 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             135          32B-8-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             136          32B-9-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             137          32B-9-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             138          32B-9-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             139          32B-9-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             140          32B-10-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             141          32B-10-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             142          32B-10-403 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             143          32B-10-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             144          32B-10-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             145          32B-10-603 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             146          32B-11-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             147          32B-11-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             148          32B-11-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             149          32B-11-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276



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             150
         32B-11-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             151          32B-11-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             152          32B-11-608 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             153          32B-12-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             154          32B-12-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             154a      S.     32B-13-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276      .S
             155          32B-13-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             156          32B-13-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             157          32B-13-301 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             158          52-4-205, as last amended by Laws of Utah 2010, Chapters 35, 60, and 239
             159          62A-15-401 (Effective 07/01/11), as last amended by Laws of Utah 2010, Chapter 276
             160          63J-1-201, as last amended by Laws of Utah 2010, Chapter 415
             161      ENACTS:
             162          32B-1-206, Utah Code Annotated 1953
             163          32B-2-209, Utah Code Annotated 1953
             164          32B-2-305, Utah Code Annotated 1953
             165          32B-6-409, Utah Code Annotated 1953
             166          32B-6-801, Utah Code Annotated 1953
             167          32B-6-802, Utah Code Annotated 1953
             168          32B-6-803, Utah Code Annotated 1953
             169          32B-6-804, Utah Code Annotated 1953
             170          32B-6-805, Utah Code Annotated 1953
             171          32B-6-901, Utah Code Annotated 1953
             172          32B-6-902, Utah Code Annotated 1953
             173          32B-6-903, Utah Code Annotated 1953
             174          32B-6-904, Utah Code Annotated 1953
             175          32B-6-905, Utah Code Annotated 1953
             176          32B-8a-101, Utah Code Annotated 1953
             177          32B-8a-102, Utah Code Annotated 1953
             178          32B-8a-201, Utah Code Annotated 1953
             179          32B-8a-202, Utah Code Annotated 1953
             180          32B-8a-203, Utah Code Annotated 1953



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             181
         32B-8a-301, Utah Code Annotated 1953
             182          32B-8a-302, Utah Code Annotated 1953
             183          32B-8a-303, Utah Code Annotated 1953
             184          32B-8a-401, Utah Code Annotated 1953
             185          32B-8a-402, Utah Code Annotated 1953
             186          32B-8a-403, Utah Code Annotated 1953
             187          32B-8a-404, Utah Code Annotated 1953
             188          32B-8a-501, Utah Code Annotated 1953
             189          32B-8a-502, Utah Code Annotated 1953
             190      REPEALS:
             191          26-7-6 (Effective 07/01/11), as enacted by Coordination Clause, Laws of Utah 2010,
             192      Chapter 136
             193          32B-4-506 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             194          32B-4-507 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             195     

             196      Be it enacted by the Legislature of the state of Utah:
             197          Section 1. Section 32B-1-102 (Effective 07/01/11) is amended to read:
             198           32B-1-102 (Effective 07/01/11). Definitions.
             199          As used in this title:
             200          (1) "Airport lounge" means a business location:
             201          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             202          (b) that is located at an international airport with a United States Customs office on the
             203      premises of the international airport.
             204          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             205      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             206          (3) "Alcoholic beverage" means the following:
             207          (a) beer; or
             208          (b) liquor.
             209          (4) (a) "Alcoholic product" means a product that:
             210          (i) contains at least .5% of alcohol by volume; and
             211          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other



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             212
     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             213      in an amount equal to or greater than .5% of alcohol by volume.
             214          (b) "Alcoholic product" includes an alcoholic beverage.
             215          (c) "Alcoholic product" does not include any of the following common items that
             216      otherwise come within the definition of an alcoholic product:
             217          (i) except as provided in Subsection (4)(d), an extract;
             218          (ii) vinegar;
             219          (iii) cider;
             220          (iv) essence;
             221          (v) tincture;
             222          (vi) food preparation; or
             223          (vii) an over-the-counter medicine.
             224          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             225      when it is used as a flavoring in the manufacturing of an alcoholic product.
             226          (5) "Alcohol training and education seminar" means a seminar that is:
             227          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             228          (b) described in Section 62A-15-401 .
             229          (6) "Banquet" means an event:
             230          (a) that is held at one or more designated locations approved by the commission in or
             231      on the premises of a:
             232          (i) hotel;
             233          (ii) resort facility;
             234          (iii) sports center; or
             235          (iv) convention center;
             236          (b) for which there is a contract:
             237          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             238      and
             239          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             240      provide an alcoholic product at the event; and
             241          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             242          (7) (a) [Subject to Subsection (7)(b),] "Bar" means a [counter or similar] surface or



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             243
     structure:
             244          (i) at which an alcoholic product is:
             245          (A) stored; or
             246          (B) dispensed; or
             247          (ii) from which an alcoholic product is served.
             248          (b) [For purposes of a full-service restaurant license or a limited-service restaurant
             249      license,] "Bar structure" means a surface or structure on [the premises of a restaurant] a
             250      licensed premises if on or at any place of the surface or structure an alcoholic product is:
             251          (i) stored; or
             252          (ii) dispensed.
             253          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             254          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             255      volume or 3.2% by weight; and
             256          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             257          (b) "Beer" may or may not contain hops or other vegetable products.
             258          (c) "Beer" includes a product that:
             259          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             260          (ii) is referred to as:
             261          (A) beer;
             262          (B) ale;
             263          (C) porter;
             264          (D) stout;
             265          (E) lager; or
             266          (F) a malt or malted beverage.
             267          (d) "Beer" does not include a flavored malt beverage.
             268          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             269      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             270          [(9)] (10) "Beer retailer" means a business:
             271          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             272      whether for consumption on or off the business premises; and
             273          (b) to whom a license is issued:



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             274
         (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             275      Beer Retailer Local Authority; or
             276          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             277      and Chapter 6, Part 7, On-premise Beer Retailer License.
             278          [(10)] (11) "Beer wholesaling license" means a license:
             279          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             280          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             281      retail licensees or off-premise beer retailers.
             282          [(11)] (12) "Billboard" means a public display used to advertise, including:
             283          (a) a light device;
             284          (b) a painting;
             285          (c) a drawing;
             286          (d) a poster;
             287          (e) a sign;
             288          (f) a signboard; or
             289          (g) a scoreboard.
             290          [(12)] (13) "Brewer" means a person engaged in manufacturing:
             291          (a) beer;
             292          (b) heavy beer; or
             293          (c) a flavored malt beverage.
             294          [(13)] (14) "Brewery manufacturing license" means a license issued in accordance with
             295      Chapter 11, Part 5, Brewery Manufacturing License.
             296          [(14)] (15) "Certificate of approval" means a certificate of approval obtained from the
             297      department under [Subsection] Section 32B-11-201 [(4)].
             298          [(15)] (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle
             299      provided by a bus company to a group of persons pursuant to a common purpose:
             300          (a) under a single contract;
             301          (b) at a fixed charge in accordance with the bus company's tariff; and
             302          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             303      motor vehicle, and a driver to travel together to one or more specified destinations.
             304          [(16)] (17) "Church" means a building:



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             305
         (a) set apart for worship;
             306          (b) in which religious services are held;
             307          (c) with which clergy is associated; and
             308          (d) that is tax exempt under the laws of this state.
             309          [(17)] (18) (a) "Club license" means a license issued in accordance with Chapter 5,
             310      Retail License Act, and Chapter 6, Part 4, Club License.
             311          (b) "Club license" includes:
             312          (i) a dining club license;
             313          (ii) an equity club license;
             314          (iii) a fraternal club license; or
             315          (iv) a social club license.
             316          [(18)] (19) "Commission" means the Alcoholic Beverage Control Commission created
             317      in Section 32B-2-201 .
             318          [(19)] (20) "Commissioner" means a member of the commission.
             319          [(20)] (21) "Community location" means:
             320          (a) a public or private school;
             321          (b) a church;
             322          (c) a public library;
             323          (d) a public playground; or
             324          (e) a public park.
             325          [(21)] (22) "Community location governing authority" means:
             326          (a) the governing body of the community location; or
             327          (b) if the commission does not know who is the governing body of a community
             328      location, a person who appears to the commission to have been given on behalf of the
             329      community location the authority to prohibit an activity at the community location.
             330          (23) "Container" means a receptacle that contains an alcoholic product, including:
             331          (a) a bottle;
             332          (b) a vessel; or
             333          (c) a similar item.
             334          [(22)] (24) "Convention center" means a facility that is:
             335          (a) in total at least 30,000 square feet; and



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             336
         (b) otherwise defined as a "convention center" by the commission by rule.
             337          [(23) For purposes of a full-service restaurant license or limited-service restaurant
             338      license:]
             339          [(a) subject to Subsection (23)(b),]
             340          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             341      dining area of a [restaurant] licensed premises where seating is provided to a patron for service
             342      of food[; and].
             343          (b) "Counter" does not include a surface or structure if on or at any point of the surface
             344      or structure an alcoholic product is:
             345          (i) stored; or
             346          (ii) dispensed.
             347          [(24)] (26) "Department" means the Department of Alcoholic Beverage Control created
             348      in Section 32B-2-203 .
             349          [(25)] (27) "Department compliance officer" means an individual who is:
             350          (a) an auditor or inspector; and
             351          (b) employed by the department.
             352          [(26)] (28) "Department sample" means liquor that is placed in the possession of the
             353      department for testing, analysis, and sampling.
             354          [(27)] (29) "Dining club license" means a license issued in accordance with Chapter 5,
             355      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             356      as a dining club license.
             357          [(28)] (30) "Director," unless the context requires otherwise, means the director of the
             358      department.
             359          [(29)] (31) "Disciplinary proceeding" means an adjudicative proceeding permitted
             360      under this title:
             361          (a) against a person subject to administrative action; and
             362          (b) that is brought on the basis of a violation of this title.
             363          [(30) For purposes of a full-service restaurant license or a limited-service restaurant
             364      license, "dispense" means:]
             365          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             366          [(a)] (i) drawing of an alcoholic product:



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             367
         [(i)] (A) from an area where it is stored; or
             368          [(ii)] (B) as provided in Subsection 32B-6-205 (12)(b)(ii) [or], 32B-6-305 (12)(b)(ii),
             369      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             370          [(b)] (ii) using the alcoholic product described in Subsection [(29)(a)] (32)(a)(i) on the
             371      premises of the [restaurant] licensed premises to mix or prepare an alcoholic product to be
             372      furnished to a patron of the [restaurant] retail licensee.
             373          (b) The definition of "dispense" in this Subsection (32) applies only to:
             374          (i) a full-service restaurant license;
             375          (ii) a limited-service restaurant license;
             376          (iii) a reception center license; and
             377          (iv) a beer-only restaurant license.
             378          [(31)] (33) "Distillery manufacturing license" means a license issued in accordance
             379      with Chapter 11, Part 4, Distillery Manufacturing License.
             380          [(32)] (34) "Distressed merchandise" means an alcoholic product in the possession of
             381      the department that is saleable, but for some reason is unappealing to the public.
             382          [(33)] (35) "Educational facility" includes:
             383          (a) a nursery school;
             384          (b) an infant day care center; and
             385          (c) a trade and technical school.
             386          [(34)] (36) "Equity club license" means a license issued in accordance with Chapter 5,
             387      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             388      as an equity club license.
             389          [(35)] (37) "Event permit" means:
             390          (a) a single event permit; or
             391          (b) a temporary beer event permit.
             392          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             393      considered in determining the total number of a retail license that the commission may issue at
             394      any time.
             395          [(36)] (39) (a) "Flavored malt beverage" means a beverage:
             396          (i) that contains at least .5% alcohol by volume;
             397          (ii) that is treated by processing, filtration, or another method of manufacture that is not



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             398
     generally recognized as a traditional process in the production of a beer as described in 27
             399      C.F.R. Sec. 25.55;
             400          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             401      extract; and
             402          (iv) (A) for which the producer is required to file a formula for approval with the
             403      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             404          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             405          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             406          [(37)] (40) "Fraternal club license" means a license issued in accordance with Chapter
             407      5, Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the
             408      commission as a fraternal club license.
             409          [(38)] (41) "Full-service restaurant license" means a license issued in accordance with
             410      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             411          [(39)] (42) (a) "Furnish" means by any means to provide with, supply, or give an
             412      individual an alcoholic product, by sale or otherwise.
             413          (b) "Furnish" includes to:
             414          (i) serve;
             415          (ii) deliver; or
             416          (iii) otherwise make available.
             417          [(40)] (43) "Guest" means an individual who meets the requirements of Subsection
             418      32B-6-407 (9).
             419          [(41)] (44) "Health care practitioner" means:
             420          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             421          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             422          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             423          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical [Therapist]
             424      Therapy Practice Act;
             425          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             426      Nurse Practice Act;
             427          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             428      Practice Act;



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             429
         (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             430      Therapy Practice Act;
             431          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             432          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             433      Professional Practice Act;
             434          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             435          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             436      Practice Act;
             437          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             438      Hygienist Practice Act; and
             439          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             440          [(42)] (45) (a) "Heavy beer" means a product that:
             441          (i) contains more than 4% alcohol by volume; and
             442          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             443          (b) "Heavy beer" is considered liquor for the purposes of this title.
             444          [(43)] (46) "Hotel" is as defined by the commission by rule.
             445          [(44)] (47) "Identification card" means an identification card issued under Title 53,
             446      Chapter 3, Part 8, Identification Card Act.
             447          [(45)] (48) "Industry representative" means an individual who is compensated by
             448      salary, commission, or other means for representing and selling an alcoholic product of a
             449      manufacturer, supplier, or importer of liquor.
             450          [(46)] (49) "Industry representative sample" means liquor that is placed in the
             451      possession of the department for testing, analysis, and sampling by a local industry
             452      representative on the premises of the department to educate the local industry representative of
             453      the quality and characteristics of the product.
             454          [(47)] (50) "Interdicted person" means a person to whom the sale, offer for sale, or
             455      furnishing of an alcoholic product is prohibited by:
             456          (a) law; or
             457          (b) court order.
             458          [(48)] (51) "Intoxicated" means that a person:
             459          (a) is significantly impaired as to the person's mental or physical functions as a result of



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             460
     the use of:
             461          (i) an alcoholic product;
             462          (ii) a controlled substance;
             463          (iii) a substance having the property of releasing toxic vapors; or
             464          (iv) a combination of Subsections [(48)] (51)(a)(i) through (iii); and
             465          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             466      signs produced by the over consumption of an alcoholic product.
             467          [(49)] (52) "Investigator" means an individual who is:
             468          (a) a department compliance officer; or
             469          (b) a nondepartment enforcement officer.
             470          [(50)] (53) "Invitee" is as defined in Section 32B-8-102 .
             471          [(51)] (54) "License" means:
             472          (a) a retail license;
             473          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             474      Licenses Act;
             475          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             476      or
             477          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             478          [(52)] (55) "Licensee" means a person who holds a license.
             479          [(53)] (56) "Limited-service restaurant license" means a license issued in accordance
             480      with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             481          [(54)] (57) "Limousine" means a motor vehicle licensed by the state or a local
             482      authority, other than a bus or taxicab:
             483          (a) in which the driver and a passenger are separated by a partition, glass, or other
             484      barrier;
             485          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             486      accordance with the business entity's tariff; and
             487          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             488      to travel to one or more specified destinations.
             489          [(55)] (58) (a) (i) "Liquor" means a liquid that:
             490          (A) is:



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             491
         (I) alcohol;
             492          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             493          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             494          (IV) other drink or drinkable liquid; and
             495          (B) (I) contains at least .5% alcohol by volume; and
             496          (II) is suitable to use for beverage purposes.
             497          (ii) "Liquor" includes:
             498          (A) heavy beer;
             499          (B) wine; and
             500          (C) a flavored malt beverage.
             501          (b) "Liquor" does not include beer.
             502          [(56)] (59) "Liquor Control Fund" means the enterprise fund created by Section
             503      32B-2-301 .
             504          [(57)] (60) "Liquor warehousing license" means a license that is issued:
             505          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             506          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             507      storage, sale, or distribution of liquor regardless of amount.
             508          [(58)] (61) "Local authority" means:
             509          (a) for premises that are located in an unincorporated area of a county, the governing
             510      body of a county; or
             511          (b) for premises that are located in an incorporated city or a town, the governing body
             512      of the city or town.
             513          [(59)] (62) "Lounge or bar area" is as defined by rule made by the commission.
             514          (63) "Opaque" means impenetrable to sight.
             515          [(60)] (64) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             516      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             517      others.
             518          [(61)] (65) "Member" means an individual who, after paying regular dues, has full
             519      privileges in an equity club licensee or fraternal club licensee.
             520          [(62)] (66) (a) "Military installation" means a base, air field, camp, post, station, yard,
             521      center, or homeport facility for a ship:



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             522
         (i) (A) under the control of the United States Department of Defense; or
             523          (B) of the National Guard;
             524          (ii) that is located within the state; and
             525          (iii) including a leased facility.
             526          (b) "Military installation" does not include a facility used primarily for:
             527          (i) civil works;
             528          (ii) a rivers and harbors project; or
             529          (iii) a flood control project.
             530          [(63)] (67) "Minor" means an individual under the age of 21 years.
             531          [(64)] (68) "Nondepartment enforcement agency" means an agency that:
             532          (a) (i) is a state agency other than the department; or
             533          (ii) is an agency of a county, city, or town; and
             534          (b) has a responsibility to enforce one or more provisions of this title.
             535          [(65)] (69) "Nondepartment enforcement officer" means an individual who is:
             536          (a) a peace officer, examiner, or investigator; and
             537          (b) employed by a nondepartment enforcement agency.
             538          [(66)] (70) (a) "Off-premise beer retailer" means a beer retailer who is:
             539          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             540      Authority; and
             541          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             542      premises.
             543          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             544          [(67)] (71) "On-premise banquet license" means a license issued in accordance with
             545      Chapter 5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             546          [(68)] (72) "On-premise beer retailer" means a beer retailer who is:
             547          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             548      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             549      Retailer License; and
             550          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             551      premises[,]:
             552          (i) regardless of whether the beer retailer sells beer for consumption off the licensed



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             553
     premises[.]; and
             554          [(69) "Package" means any of the following containing an alcoholic product:]
             555          [(a) a container;]
             556          [(b) a bottle;]
             557          [(c) a vessel; or]
             558          [(d) other receptacle.]
             559          (ii) on and after March 1, 2012, operating:
             560          (A) as a tavern; or
             561          (B) in a manner that meets the recreational amenity requirements of Subsection
             562      32B-6-703 (2)(e).
             563          [(70)] (73) "Package agency" means a retail liquor location operated:
             564          (a) under an agreement with the department; and
             565          (b) by a person:
             566          (i) other than the state; and
             567          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             568      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             569          [(71)] (74) "Package agent" means a person who holds a package agency.
             570          [(72)] (75) "Patron" means an individual to whom food, beverages, or services are sold,
             571      offered for sale, or furnished, or who consumes an alcoholic product including:
             572          (a) a customer;
             573          (b) a member;
             574          (c) a guest;
             575          (d) an attendee of a banquet or event;
             576          (e) an individual who receives room service;
             577          (f) a resident of a resort;
             578          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             579      or
             580          (h) an invitee.
             581          [(73)] (76) "Permittee" means a person issued a permit under:
             582          (a) Chapter 9, Event Permit Act; or
             583          (b) Chapter 10, Special Use Permit Act.



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             584
         [(74)] (77) "Person subject to administrative action" means:
             585          (a) a licensee;
             586          (b) a permittee;
             587          (c) a manufacturer;
             588          (d) a supplier;
             589          (e) an importer;
             590          (f) [an out-of-state brewer] one of the following holding a certificate of approval[; or]:
             591          (i) an out-of-state brewer;
             592          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             593          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             594          (g) staff of:
             595          (i) a person listed in Subsections [(74)] (77)(a) through [(g)] (f); or
             596          (ii) a package agent.
             597          [(75)] (78) "Premises" means a building, enclosure, or room used in connection with
             598      the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
             599      product, unless otherwise defined in this title or rules made by the commission.
             600          [(76)] (79) "Prescription" means an order issued by a health care practitioner when:
             601          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             602      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             603          (b) the order is made in the course of that health care practitioner's professional
             604      practice; and
             605          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             606          [(77)] (80) (a) "Private event" means a specific social, business, or recreational event:
             607          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             608      group; and
             609          (ii) that is limited in attendance to people who are specifically designated and their
             610      guests.
             611          (b) "Private event" does not include an event to which the general public is invited,
             612      whether for an admission fee or not.
             613          [(78)] (81) (a) "Proof of age" means:
             614          (i) an identification card;



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             615
         (ii) an identification that:
             616          (A) is substantially similar to an identification card;
             617          (B) is issued in accordance with the laws of a state other than Utah in which the
             618      identification is issued;
             619          (C) includes date of birth; and
             620          (D) has a picture affixed;
             621          (iii) a valid driver license certificate that:
             622          (A) includes date of birth;
             623          (B) has a picture affixed; and
             624          (C) is issued:
             625          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             626          (II) in accordance with the laws of the state in which it is issued;
             627          (iv) a military identification card that:
             628          (A) includes date of birth; and
             629          (B) has a picture affixed; or
             630          (v) a valid passport.
             631          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             632      Section 53-3-207 .
             633          [(79)] (82) (a) "Public building" means a building or permanent structure that is:
             634          (i) owned or leased by:
             635          (A) the state; or
             636          (B) a local government entity; and
             637          (ii) used for:
             638          (A) public education;
             639          (B) transacting public business; or
             640          (C) regularly conducting government activities.
             641          (b) "Public building" does not include a building owned by the state or a local
             642      government entity when the building is used by a person, in whole or in part, for a proprietary
             643      function.
             644          [(80)] (83) "Public conveyance" means a conveyance to which the public or a portion
             645      of the public has access to and a right to use for transportation, including an airline, railroad,



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             646
     bus, boat, or other public conveyance.
             647          (84) "Reception center" means a business that:
             648          (a) operates facilities that are at least 5,000 square feet; and
             649          (b) has as its primary purpose the leasing of the facilities described in Subsection
             650      (84)(a) to a third party for the third party's event.
             651          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             652      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             653          [(81)] (86) (a) "Record" means information that is:
             654          (i) inscribed on a tangible medium; or
             655          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             656          (b) "Record" includes:
             657          (i) a book;
             658          (ii) a book of account;
             659          (iii) a paper;
             660          (iv) a contract;
             661          (v) an agreement;
             662          (vi) a document; or
             663          (vii) a recording in any medium.
             664          [(82)] (87) "Residence" means a person's principal place of abode within Utah.
             665          [(83)] (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             666          [(84)] (89) "Resort" is as defined in Section 32B-8-102 .
             667          [(85)] (90) "Resort facility" is as defined by the commission by rule.
             668          [(86)] (91) "Resort license" means a license issued in accordance with Chapter 5,
             669      Retail License Act, and Chapter 8, Resort License Act.
             670          [(87)] (92) "Restaurant" means a business location:
             671          (a) at which a variety of foods are prepared;
             672          (b) at which complete meals are served to the general public; and
             673          (c) that is engaged primarily in serving meals to the general public.
             674          [(88)] (93) "Retail license" means one of the following licenses issued under this title:
             675          (a) a full-service restaurant license;
             676          (b) a limited-service restaurant license;



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             677
         (c) a club license;
             678          (d) an airport lounge license;
             679          (e) an on-premise banquet license; [or]
             680          (f) an on-premise beer license[.];
             681          (g) a reception center license; or
             682          (h) a beer-only restaurant license.
             683          [(89)] (94) "Room service" means furnishing an alcoholic product to a person in a
             684      guest room of a:
             685          (a) hotel; or
             686          (b) resort facility.
             687          [(90)] (95) "Serve" means to place an alcoholic product before an individual.
             688          [(91)] (96) (a) "School" means a building used primarily for the general education of
             689      minors.
             690          (b) "School" does not include an educational facility.
             691          [(92)] (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,
             692      for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
             693      ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
             694      done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
             695      the rules made by the commission.
             696          [(93)] (98) "Sexually oriented entertainer" means a person who while in a state of
             697      seminudity appears at or performs:
             698          (a) for the entertainment of one or more patrons;
             699          (b) on the premises of:
             700          (i) a social club licensee; or
             701          (ii) a tavern;
             702          (c) on behalf of or at the request of the licensee described in Subsection [(93)] (98)(b);
             703          (d) on a contractual or voluntary basis; and
             704          (e) whether or not the person is designated as:
             705          (i) an employee;
             706          (ii) an independent contractor;
             707          (iii) an agent of the licensee; or



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             708
         (iv) a different type of classification.
             709          [(94)] (99) "Single event permit" means a permit issued in accordance with Chapter 9,
             710      Part 3, Single Event Permit.
             711          [(95)] (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             712      of beer, heavy beer, and flavored malt beverages per year.
             713          [(96)] (101) "Social club license" means a license issued in accordance with Chapter 5,
             714      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             715      as a social club license.
             716          [(97)] (102) "Special use permit" means a permit issued in accordance with Chapter 10,
             717      Special Use Permit Act.
             718          [(98)] (103) (a) "Spirituous liquor" means liquor that is distilled.
             719          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             720      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             721          [(99)] (104) "Sports center" is as defined by the commission by rule.
             722          [(100)] (105) (a) "Staff" means an individual who engages in activity governed by this
             723      title:
             724          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             725      holder;
             726          (ii) at the request of the business, including a package agent, licensee, permittee, or
             727      certificate holder; or
             728          (iii) under the authority of the business, including a package agent, licensee, permittee,
             729      or certificate holder.
             730          (b) "Staff" includes:
             731          (i) an officer;
             732          (ii) a director;
             733          (iii) an employee;
             734          (iv) personnel management;
             735          (v) an agent of the licensee, including a managing agent;
             736          (vi) an operator; or
             737          (vii) a representative.
             738          [(101)] (106) "State of nudity" means:



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             739
         (a) the appearance of:
             740          (i) the nipple or areola of a female human breast;
             741          (ii) a human genital;
             742          (iii) a human pubic area; or
             743          (iv) a human anus; or
             744          (b) a state of dress that fails to opaquely cover:
             745          (i) the nipple or areola of a female human breast;
             746          (ii) a human genital;
             747          (iii) a human pubic area; or
             748          (iv) a human anus.
             749          [(102)] (107) "State of seminudity" means a state of dress in which opaque clothing
             750      covers no more than:
             751          (a) the nipple and areola of the female human breast in a shape and color other than the
             752      natural shape and color of the nipple and areola; and
             753          (b) the human genitals, pubic area, and anus:
             754          (i) with no less than the following at its widest point:
             755          (A) four inches coverage width in the front of the human body; and
             756          (B) five inches coverage width in the back of the human body; and
             757          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             758          [(103)] (108) (a) "State store" means a facility for the sale of packaged liquor:
             759          (i) located on premises owned or leased by the state; and
             760          (ii) operated by a state employee.
             761          (b) "State store" does not include:
             762          (i) a package agency;
             763          (ii) a licensee; or
             764          (iii) a permittee.
             765          [(104) For purposes of a full-service restaurant license or a limited-service restaurant
             766      license:]
             767          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
             768      an alcoholic product.
             769          (b) "Store" means to place or maintain in a location an alcoholic product from which a



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             770
     person draws to prepare an alcoholic product to be furnished to a patron [of the restaurant],
             771      except as provided in Subsection 32B-6-205 (12)(b)(ii) [or], 32B-6-305 (12)(b)(ii),
             772      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii).
             773          [(105)] (110) "Sublicense" is as defined in Section 32B-8-102 .
             774          [(106)] (111) "Supplier" means a person who sells an alcoholic product to the
             775      department.
             776          [(107)] (112) "Tavern" means an on-premise beer retailer who is:
             777          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             778      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             779          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             780      On-premise Beer Retailer License.
             781          [(108)] (113) "Temporary beer event permit" means a permit issued in accordance with
             782      Chapter 9, Part 4, Temporary Beer Event Permit.
             783          [(109)] (114) "Temporary domicile" means the principal place of abode within Utah of
             784      a person who does not have a present intention to continue residency within Utah permanently
             785      or indefinitely.
             786          (115) "Translucent" means a substance that allows light to pass through, but does not
             787      allow an object or person to be seen through the substance.
             788          [(110)] (116) "Unsaleable liquor merchandise" means a [package] container that:
             789          (a) is unsaleable because the [package] container is:
             790          (i) unlabeled;
             791          (ii) leaky;
             792          (iii) damaged;
             793          (iv) difficult to open; or
             794          (v) partly filled;
             795          (b) (i) has faded labels or defective caps or corks;
             796          (ii) has contents that are:
             797          (A) cloudy;
             798          (B) spoiled; or
             799          (C) chemically determined to be impure; or
             800          (iii) contains:



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             801
         (A) sediment; or
             802          (B) a foreign substance; or
             803          (c) is otherwise considered by the department as unfit for sale.
             804          [(111)] (117) (a) "Wine" means an alcoholic product obtained by the fermentation of
             805      the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
             806      not another ingredient is added.
             807          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             808      in this title.
             809          [(112)] (118) "Winery manufacturing license" means a license issued in accordance
             810      with Chapter 11, Part 3, Winery Manufacturing License.
             811          Section 2. Section 32B-1-201 (Effective 07/01/11) is amended to read:
             812           32B-1-201 (Effective 07/01/11). Restrictions on number of retail licenses that may
             813      be issued -- Determining population -- Exempt licenses.
             814          (1) As used in this section:
             815          (a) "Alcohol-related law enforcement officer" means a law enforcement officer
             816      employed by the Department of Public Safety that has as a primary responsibility for:
             817          (i) the enforcement of this title; or
             818          (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
             819      Reckless Driving.
             820          (b) "Enforcement ratio" is the number calculated as follows:
             821          (i) determine the quotient equal to the total number of quota retail licenses available
             822      divided by the total number of alcohol-related law enforcement officers; and
             823          (ii) round the number determined in accordance with Subsection (1)(b)(ii) up to the
             824      nearest whole number.
             825          (c) "Quota retail license" means:
             826          (i) a full-service restaurant license;
             827          (ii) a limited-service restaurant license;
             828          (iii) a club license;
             829          (iv) an on-premise banquet license;
             830          (v) an on-premise beer retailer operating as a tavern; and
             831          (vi) a reception center license.



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             832
         (d) "Total number of alcohol-related law enforcement officers" means the total number
             833      of positions designated as alcohol-related law enforcement officers that are funded as of a
             834      specified date as certified by the Department of Public Safety to the department.
             835          (e) "Total number of quota retail licenses available" means the number calculated by:
             836          (i) determining as of a specified date for each quota retail license the number of
             837      licenses that the commission may not exceed calculated by dividing the population of the state
             838      by the number specified in the relevant provision for the quota retail license; and
             839          (ii) adding together the numbers determined under Subsection (1)(d)(i).
             840          (2) (a) Beginning on July 1, 2012, the department shall annually determine the
             841      enforcement ratio as of July 1 of that year.
             842          (b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the
             843      commission may not issue a quota retail license for the 12-month period beginning on the July
             844      1 for which the enforcement ratio is greater than 52.
             845          (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
             846      during the 12-month period described in Subsection (2)(b) beginning on the day on which a
             847      sufficient number of alcohol-related law enforcement officers are employed so that if the
             848      enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.
             849          (d) Once the Department of Public Safety certifies under Subsection (1)(d) the total
             850      number of positions designated as alcohol-related law enforcement officers that are funded as
             851      of July 1, the Department of Public Safety may not use the funding for the designated
             852      alcohol-related law enforcement officers for a purpose other than funding those positions.
             853          (3) For purposes of determining the number of state stores that the commission may
             854      establish or the number of package agencies or retail licenses that the commission may issue,
             855      the commission shall determine population by:
             856          [(1)] (a) the most recent United States decennial or special census; or
             857          [(2)] (b) another population determination made by the United States or state
             858      governments.
             859          (4) The commission may not consider a retail license that meets the following
             860      conditions in determining the total number of licenses available for that type of retail license
             861      that the commission may issue at any time:
             862          (a) the retail license was issued to a club licensee designated as a dining club as of July



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             863
     1, 2011; and
             864          (b) the dining club license is converted to another type of retail license in accordance
             865      with Section 32B-6-709 .
             866          Section 3. Section 32B-1-206 is enacted to read:
             867          32B-1-206. Calculation of ratio of gross receipts of food to alcoholic product.
             868          In calculating the annual gross receipts of a retail license or sublicense for purposes of
             869      determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food
             870      or an alcoholic product, a retail licensee may not include in the calculation the money from the
             871      sale of a bottle of wine by the retail licensee or under a sublicense that is in excess of $250.
             872          Section 4. Section 32B-1-402 (Effective 07/01/11) is amended to read:
             873           32B-1-402 (Effective 07/01/11). Definitions.
             874          As used in this part:
             875          [(1) "Applicable licensee" means the following:]
             876          [(a) a dining club licensee; or]
             877          [(b) a social club licensee.]
             878          [(2)] (1) "Authorized person" means a person authorized by law to sell or otherwise
             879      handle an alcoholic product.
             880          [(3)] (2) "Restricted area" means a place where an alcoholic product is sold or
             881      consumed, but where under this title a minor is not permitted.
             882          [(4)] (3) "Statement of age" means a statement signed under Section 32B-1-405
             883      verifying the age of the person signing the statement.
             884          Section 5. Section 32B-1-407 (Effective 07/01/11) is amended to read:
             885           32B-1-407 (Effective 07/01/11). Verification of proof of age by applicable
             886      licensees.
             887          (1) As used in this section, "applicable licensee" means:
             888          (a) a dining club;
             889          (b) a social club; or
             890          (c) a tavern.
             891          [(1)] (2) Notwithstanding any other provision of this part, an applicable licensee shall
             892      require that an authorized person [under] for the applicable licensee verify proof of age as
             893      provided in this section.



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             894
         [(2)] (3) An authorized person is required to verify proof of age under this section
             895      before an individual who appears to be 35 years of age or younger:
             896          (a) gains admittance to the premises of a social club licensee or tavern; or
             897          (b) procures an alcoholic product on the premises of a dining club licensee.
             898          [(3)] (4) To comply with Subsection [(2)] (3), an authorized person shall:
             899          (a) request the individual present proof of age; and
             900          (b) (i) verify the validity of the proof of age electronically under the verification
             901      program created in Subsection [(4)] (5); or
             902          (ii) if the proof of age cannot be electronically verified as provided in Subsection [(3)]
             903      (4)(b)(i), request that the individual comply with a process established by the commission by
             904      rule.
             905          [(4)] (5) The commission shall establish by rule an electronic verification program that
             906      includes the following:
             907          (a) the specifications for the technology used by the applicable licensee to
             908      electronically verify proof of age, including that the technology display to the person described
             909      in Subsection [(1)] (2) no more than the following for the individual who presents the proof of
             910      age:
             911          (i) the name;
             912          (ii) the age;
             913          (iii) the number assigned to the individual's proof of age by the issuing authority;
             914          (iv) the birth date;
             915          (v) the gender; and
             916          (vi) the status and expiration date of the individual's proof of age; and
             917          (b) the security measures that must be used by an applicable licensee to ensure that
             918      information obtained under this section is:
             919          (i) used by the applicable licensee only for purposes of verifying proof of age in
             920      accordance with this section; and
             921          (ii) retained by the applicable licensee for seven days after the day on which the
             922      applicable licensee obtains the information.
             923          [(5)] (6) (a) An applicable licensee may not disclose information obtained under this
             924      section except as provided under this title.



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             925
         (b) Information obtained under this section is considered a record for any purpose
             926      under Chapter 5, Part 3, Retail Licensee Operational Requirements.
             927          Section 6. Section 32B-1-602 (Effective 07/01/11) is amended to read:
             928           32B-1-602 (Effective 07/01/11). Definitions.
             929          As used in this part:
             930          (1) "Malted beverage" means:
             931          (a) beer;
             932          (b) a flavored malt beverage; and
             933          (c) heavy beer.
             934          (2) "Packaging" means the outer packaging that is visible to a consumer such as a
             935      carton, case, or other wrapper of a [package] container.
             936          Section 7. Section 32B-1-605 (Effective 07/01/11) is amended to read:
             937           32B-1-605 (Effective 07/01/11). General procedure for approval.
             938          (1) To obtain approval of the label and packaging of a malted beverage, the
             939      manufacturer of the malted beverage shall submit an application to the department for
             940      approval.
             941          (2) The application described in Subsection (1) shall be on a form approved by the
             942      department and include the following:
             943          (a) a copy of a federal certificate of label approval from the Department of Treasury,
             944      Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
             945      approval;
             946          (b) a complete set of original labels for each size of [package] container of the malted
             947      beverage;
             948          (c) a description of the size of the [package] container on which a label will be placed;
             949          (d) a description of each type of [package] container of the malted beverage; and
             950          (e) a description of any packaging for the malted beverage.
             951          (3) The department may assess a reasonable fee for reviewing a label and packaging for
             952      approval.
             953          (4) (a) The department shall notify a manufacturer within 30 days after the day on
             954      which the manufacturer submits an application whether the label and packaging is approved or
             955      denied.



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             956
         (b) If the department determines that an unusual circumstance requires additional time,
             957      the department may extend the time period described in Subsection (4)(a).
             958          (5) A manufacturer shall obtain the approval of the department of a revision of a
             959      previously approved label and packaging before a malted beverage using the revised label and
             960      packaging may be distributed or sold in this state.
             961          (6) (a) The department may revoke a label and packaging previously approved upon a
             962      finding that the label and packaging is not in compliance with this title or rules of the
             963      commission.
             964          (b) The department shall notify the person who applies for the approval of a label and
             965      packaging at least five business days before the day on which a label and packaging approval is
             966      considered revoked.
             967          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
             968      argument or evidence to the department on why the revocation should not occur.
             969          (7) A manufacturer that applies for approval of a label and packaging may appeal a
             970      denial or revocation of a label and packaging approval to the commission.
             971          Section 8. Section 32B-2-201 (Effective 07/01/11) is amended to read:
             972           32B-2-201 (Effective 07/01/11). Alcoholic Beverage Control Commission created.
             973          (1) There is created the "Alcoholic Beverage Control Commission." The commission is
             974      the governing board over the department.
             975          (2) (a) The commission is composed of five part-time commissioners appointed by the
             976      governor with the consent of the Senate.
             977          (b) No more than three commissioners may be of the same political party.
             978          (3) (a) Except as required by Subsection (3)(b), as terms of commissioners expire, the
             979      governor shall appoint each new commissioner or reappointed commissioner to a four-year
             980      term.
             981          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             982      time of appointment or reappointment, adjust the length of terms to ensure that the terms of no
             983      more than two commissioners expire in a fiscal year.
             984          (4) (a) When a vacancy occurs on the commission for any reason, the governor shall
             985      appoint a replacement for the unexpired term with the consent of the Senate.
             986          (b) Unless removed in accordance with Subsection (6), a commissioner shall remain on



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             987
     the commission after the expiration of a term until a successor is appointed by the governor,
             988      with the consent of the Senate.
             989          (5) A commissioner shall take the oath of office.
             990          (6) (a) The governor may remove a commissioner from the commission for cause after
             991      a public hearing conducted by:
             992          (i) the governor; or
             993          (ii) an impartial hearing examiner appointed by the governor to conduct the hearing.
             994          (b) At least 10 days before the hearing described in Subsection (6)(a), the governor
             995      shall provide the commissioner notice of:
             996          (i) the date, time, and place of the hearing; and
             997          (ii) the alleged grounds for the removal.
             998          (c) The commissioner shall have an opportunity to:
             999          (i) attend the hearing;
             1000          (ii) present witnesses and other evidence; and
             1001          (iii) confront and cross examine witnesses.
             1002          (d) After a hearing under this Subsection (6):
             1003          (i) the person conducting the hearing shall prepare written findings of fact and
             1004      conclusions of law; and
             1005          (ii) the governor shall serve a copy of the prepared findings and conclusions upon the
             1006      commissioner.
             1007          (e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing
             1008      examiner shall issue a written recommendation to the governor in addition to complying with
             1009      Subsection (6)(d).
             1010          (f) A commissioner has five days from the day on which the commissioner receives the
             1011      findings and conclusions described in Subsection (6)(d) to file written objections to the
             1012      recommendation before the governor issues a final order.
             1013          (g) The governor shall:
             1014          (i) issue the final order under this Subsection (6) in writing; and
             1015          (ii) serve the final order upon the commissioner.
             1016          (7) (a) A commissioner may not receive compensation or benefits for the
             1017      commissioner's service, but may receive per diem and expenses incurred in the performance of



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             1018
     the commissioner's official duties at the rates established by the Division of Finance under
             1019      Sections 63A-3-106 and 63A-3-107 .
             1020          (b) A commissioner may decline to receive per diem and expenses for the
             1021      commissioner's service.
             1022          [(8) (a) (i) The commission shall elect:]
             1023          [(A) one commissioner to serve as chair;]
             1024          (8) (a) The governor shall annually appoint the chair of the commission. A
             1025      commissioner serves as chair to the commission at the pleasure of the governor.
             1026          (b) The commission shall elect:
             1027          [(B)] (i) another commissioner to serve as vice chair; and
             1028          [(C)] (ii) other commission officers as the commission considers advisable.
             1029          [(ii)] (c) A commissioner elected under Subsection (8)(b) shall serve in the office to
             1030      which the commissioner is elected [under Subsection (8)(a)(i)] at the pleasure of the
             1031      commission.
             1032          [(b)] (9) (a) Each commissioner has equal voting rights on a commission matter when
             1033      in attendance at a commission meeting.
             1034          [(c)] (b) Three commissioners is a quorum for conducting commission business.
             1035          [(d)] (c) A majority vote of the quorum present at a meeting is required for the
             1036      commission to act.
             1037          [(9)] (10) (a) The commission shall meet at least monthly, but may hold other meetings
             1038      at times and places as scheduled by:
             1039          (i) the commission;
             1040          (ii) the chair; or
             1041          (iii) three commissioners upon filing a written request for a meeting with the chair.
             1042          (b) Notice of the time and place of a commission meeting shall be given to each
             1043      commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
             1044      Meetings Act. A commission meeting is open to the public, except for a commission meeting
             1045      or portion of a commission meeting that is closed by the commission as authorized by Sections
             1046      52-4-204 and 52-4-205 .
             1047          Section 9. Section 32B-2-202 (Effective 07/01/11) is amended to read:
             1048           32B-2-202 (Effective 07/01/11). Powers and duties of the commission.



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             1049
         (1) The commission shall:
             1050          (a) act as a general policymaking body on the subject of alcoholic product control;
             1051          (b) adopt and issue policies, rules, and procedures;
             1052          (c) set policy by written rules that establish criteria and procedures for:
             1053          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             1054      permit, or certificate of approval; and
             1055          (ii) determining the location of a state store, package agency, or retail licensee;
             1056          (d) decide within the limits, and under the conditions imposed by this title, the number
             1057      and location of state stores, package agencies, and retail licensees in the state;
             1058          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             1059      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             1060      consumption, manufacture, and distribution of an alcoholic product:
             1061          (i) a package agency;
             1062          (ii) a full-service restaurant license;
             1063          (iii) a limited-service restaurant license;
             1064          (iv) a club license;
             1065          (v) an airport lounge license;
             1066          (vi) an on-premise banquet license;
             1067          (vii) a resort license, under which four or more sublicenses may be included;
             1068          (viii) an on-premise beer retailer license;
             1069          (ix) a reception center license;
             1070          (x) a beer-only restaurant license;
             1071          [(ix)] (xi) a single event permit;
             1072          [(x)] (xii) a temporary beer event permit;
             1073          [(xi)] (xiii) a special use permit;
             1074          [(xii)] (xiv) a manufacturing license;
             1075          [(xiii)] (xv) a liquor warehousing license;
             1076          [(xiv)] (xvi) a beer wholesaling license; and
             1077          [(xv) an out-of-state brewer]
             1078          (xvii) one of the following that holds a certificate of approval[;]:
             1079          (A) an out-of-state brewer;



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             1080
         (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
             1081          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
             1082          (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke one of the
             1083      following conditional licenses for the purchase, storage, sale, furnishing, consumption,
             1084      manufacture, and distribution of an alcoholic product:
             1085          (i) a conditional full-service restaurant license; or
             1086          (ii) a conditional limited-service restaurant license;
             1087          (g) prescribe the duties of the department in assisting the commission in issuing a
             1088      package agency, license, permit, or certificate of approval under this title;
             1089          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
             1090      in accordance with Section 63J-1-504 ;
             1091          (i) fix prices at which liquor is sold that are the same at all state stores, package
             1092      agencies, and retail licensees;
             1093          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
             1094      class, variety, or brand of liquor kept for sale by the department;
             1095          (k) (i) require the director to follow sound management principles; and
             1096          (ii) require periodic reporting from the director to ensure that:
             1097          (A) sound management principles are being followed; and
             1098          (B) policies established by the commission are being observed;
             1099          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
             1100      and matters submitted by the director to the commission; and
             1101          (ii) do the things necessary to support the department in properly performing the
             1102      department's duties;
             1103          (m) obtain temporarily and for special purposes the services of an expert or person
             1104      engaged in the practice of a profession, or a person who possesses a needed skill if:
             1105          (i) considered expedient; and
             1106          (ii) approved by the governor;
             1107          (n) prescribe the conduct, management, and equipment of premises upon which an
             1108      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
             1109          (o) make rules governing the credit terms of beer sales within the state to retail
             1110      licensees; and



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             1111
         (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             1112      disciplinary action against a person subject to administrative action.
             1113          (2) The power of the commission to do the following is plenary, except as otherwise
             1114      provided by this title, and not subject to review:
             1115          (a) establish a state store;
             1116          (b) issue authority to act as a package agent or operate a package agency; and
             1117          (c) issue or deny a license, permit, or certificate of approval.
             1118          (3) If the commission is authorized or required to make a rule under this title, the
             1119      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             1120      Rulemaking Act.
             1121          Section 10. Section 32B-2-205 (Effective 07/01/11) is amended to read:
             1122           32B-2-205 (Effective 07/01/11). Director of alcoholic beverage control.
             1123          (1) (a) The commission by a vote of four of the five commissioners, [and] with the
             1124      approval of the governor, and with the consent of the Senate, shall appoint a director of
             1125      alcoholic beverage control who is the administrative head of the department.
             1126          (b) The director serves at the pleasure of the commission, except that the director may
             1127      only be removed from office by a vote of four commissioners.
             1128          (c) The director may not be a commissioner.
             1129          (d) The director shall:
             1130          (i) be qualified in administration;
             1131          (ii) be knowledgeable by experience and training in the field of business management;
             1132      and
             1133          (iii) possess any other qualification prescribed by the commission.
             1134          (2) The governor shall establish the director's compensation within the salary range
             1135      fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             1136          (3) The director shall:
             1137          (a) carry out the policies of the commission;
             1138          (b) carry out the policies of the department;
             1139          (c) fully inform the commission of the operations and administrative activities of the
             1140      department; and
             1141          (d) assist the commission in the proper discharge of the commission's duties.



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             1142
         Section 11. Section 32B-2-209 is enacted to read:
             1143          32B-2-209. Prohibited interests, relationships, and actions.
             1144          (1) As used in this section:
             1145          (a) "Applicable department employee" means a department employee who is:
             1146          (i) designated as a deputy or assistant director;
             1147          (ii) a chief administrative officer of a division within the department;
             1148          (iii) a department compliance officer; or
             1149          (iv) an employee directly performing licensing or compliance functions of the
             1150      department.
             1151          (b) "Immediate family" means an individual's:
             1152          (i) spouse; or
             1153          (ii) child who is younger than 18 years of age.
             1154          (2) In addition to being subject to Title 67, Chapter 16, Utah Public Officers' and
             1155      Employees' Ethics Act, an individual who is a commissioner, the director, or an applicable
             1156      department employee may not:
             1157          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             1158      than a mutual fund, in a person who applies for or holds a package agency, license, permit, or
             1159      certificate under this title;
             1160          (b) otherwise have a conflict of interest with a person who applies for or holds a
             1161      package agency, license, permit, or certificate under this title;
             1162          (c) have an office, position, or relationship, or be engaged in a business or avocation
             1163      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             1164      office or employment;
             1165          (d) have a direct business relationship with a person subject to administrative action
             1166      under this title;
             1167          (e) accept a gift, gratuity, emolument, or employment from:
             1168          (i) a person who applies for or holds a package agency, license, permit, or certificate
             1169      under this title; or
             1170          (ii) an officer, agent, or employee of a person who applies for or holds a package
             1171      agency, license, permit, or certificate under this title, except that a commissioner, the director,
             1172      or an applicable department employee may accept a gift from an officer, agent, or employee if



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             1173
     the gift is equal to or less than $50; or
             1174          (f) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             1175      any person to any office or employment with a person who applies for or holds a package
             1176      agency, license, permit, or certificate under this title.
             1177          (3) An immediate family member of a commissioner, the director, or an applicable
             1178      department employee may not:
             1179          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             1180      than a mutual fund, in a person who applies for or holds a package agency, license, permit, or
             1181      certificate under this title;
             1182          (b) otherwise have a conflict of interest with a person who applies for or holds a
             1183      package agency, license, permit, or certificate under this title;
             1184          (c) have an office, position, or relationship, or be engaged in a business or avocation
             1185      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             1186      office or employment of the commissioner, director, or applicable department employee for
             1187      whom the person is immediate family;
             1188          (d) accept a gift, gratuity, emolument, or employment from:
             1189          (i) a person who applies for or holds a package agency, license, permit, or certificate
             1190      under this title; or
             1191          (ii) an officer, agent, or employee of a person who applies for or holds a package
             1192      agency, license, permit, or certificate under this title, except that an immediate family member
             1193      may accept a gift from an officer, agent, or employee if the gift is equal to or less than $50; or
             1194          (e) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             1195      any person to any office or employment with a person who applies for or holds a package
             1196      agency, license, permit, or certificate under this title.
             1197          (4) An officer, agent, attorney, or employee of a person who applies for or holds a
             1198      package agency, license, permit, or certificate under this title may not directly or indirectly
             1199      solicit, request, or recommend to the governor, any state senator, the commission, or the
             1200      department the appointment of any person:
             1201          (a) as a commissioner;
             1202          (b) as director of the department; or
             1203          (c) to a department staff position.



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             1204
         (5) (a) A commissioner shall disclose during a meeting of the commission a potential
             1205      violation of this section, including the existence and nature of a professional, financial,
             1206      business, or personal interest with a person who holds, or an applicant for, a license, permit, or
             1207      certificate issued under this title that may result in a violation of this section.
             1208          (b) After a commissioner makes a disclosure under Subsection (5)(a):
             1209          (i) the commission may, by motion, determine whether there is a potential violation of
             1210      this section;
             1211          (ii) if the commission determines that there is a potential violation of this section:
             1212          (A) the commission shall notify the governor; and
             1213          (B) the commissioner may not vote on any matter that would result in the potential
             1214      violation of this section; and
             1215          (iii) if the commission determines that there is not a potential violation of this section,
             1216      a commissioner may elect whether to vote on the issue that gives rise to the disclosure under
             1217      Subsection (5)(a).
             1218          (c) The commission shall record any declaration of a potential violation of this section
             1219      in the minutes of the meeting.
             1220          Section 12. Section 32B-2-305 is enacted to read:
             1221          32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
             1222          (1) As used in this section:
             1223          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201 .
             1224          (b) "Enforcement ratio" is as defined in Section 32B-1-201 .
             1225          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
             1226      this section.
             1227          (2) There is created a restricted special revenue fund known as the "Alcoholic
             1228      Beverage Control Act Enforcement Fund."
             1229          (3) (a) The fund consists of:
             1230          (i) deposits made under Subsection (4); and
             1231          (ii) interest earned on the fund.
             1232          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             1233          (4) After the deposit made under Section 32B-2-304 , the department shall deposit 1%
             1234      of the total gross revenue from the sale of liquor with the state treasurer to be credited to the



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             1235
     fund to be used by the Department of Public Safety as provided in Subsection (5).
             1236          (5) The Department of Public Safety shall expend money from the fund to supplement
             1237      appropriations by the Legislature so that the Department of Public Safety maintains a sufficient
             1238      number of alcohol-related law enforcement officers such that beginning on July 1, 2012, each
             1239      year the enforcement ratio as of July 1 is equal to or less than the number specified in Section
             1240      32B-1-201 .
             1241          Section 13. Section 32B-2-503 (Effective 07/01/11) is amended to read:
             1242           32B-2-503 (Effective 07/01/11). Operational requirements for a state store.
             1243          (1) (a) A state store shall display in a prominent place in the store a sign in large letters
             1244      [stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
             1245      prosecuted aggressively in Utah."] that consists of text in the following order:
             1246          (i) a header that reads: "WARNING";
             1247          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1248      can cause birth defects and permanent brain damage for the child.";
             1249          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1250      [insert most current toll-free number] with questions or for more information.";
             1251          (iv) a header that reads: "WARNING"; and
             1252          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1253      serious crime that is prosecuted aggressively in Utah."
             1254          (b) (i) The text described in Subsections (1)(a)(i) through (iii) shall be in a different
             1255      font style than the text described in Subsections (1)(a)(iv) and (v).
             1256          (ii) The warning statements in the sign described in Subsection (1)(a) shall be in the
             1257      same font size.
             1258          (c) The Department of Health shall work with the commission and department to
             1259      facilitate consistency in the format of a sign required under this section.
             1260          (2) A state store may not sell, offer for sale, or furnish liquor except at a price fixed by
             1261      the commission.
             1262          (3) A state store may not sell, offer for sale, or furnish liquor to:
             1263          (a) a minor;
             1264          (b) a person actually, apparently, or obviously intoxicated;
             1265          (c) a known interdicted person; or



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             1266
         (d) a known habitual drunkard.
             1267          (4) (a) A state store employee may not:
             1268          (i) consume an alcoholic product on the premises of a state store; or
             1269          (ii) allow any person to consume an alcoholic product on the premises of a state store.
             1270          (b) A violation of this Subsection (4) is a class B misdemeanor.
             1271          (5) (a) Sale or delivery of liquor may not be made on or from the premises of a state
             1272      store, and a state store may not be kept open for the sale of liquor:
             1273          (i) on Sunday; or
             1274          (ii) on a state or federal legal holiday.
             1275          (b) Sale or delivery of liquor may be made on or from the premises of a state store, and
             1276      a state store may be open for the sale of liquor, only on a day and during hours that the
             1277      commission directs by rule or order.
             1278          (6) (a) A minor may not be admitted into, or be on the premises of a state store unless
             1279      accompanied by a person who is:
             1280          (i) 21 years of age or older; and
             1281          (ii) the minor's parent, legal guardian, or spouse.
             1282          (b) A state store employee that has reason to believe that a person who is on the
             1283      premises of a state store is under the age of 21 and is not accompanied by a person described in
             1284      Subsection (6)(a) may:
             1285          (i) ask the suspected minor for proof of age;
             1286          (ii) ask the person who accompanies the suspected minor for proof of age; and
             1287          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1288      proof of parental, guardianship, or spousal relationship.
             1289          (c) A state store employee shall refuse to sell liquor to the suspected minor and to the
             1290      person who accompanies the suspected minor into the state store if the suspected minor or
             1291      person fails to provide information specified in Subsection (6)(b).
             1292          (d) A state store employee shall require a suspected minor and the person who
             1293      accompanies the suspected minor into the state store to immediately leave the premises of the
             1294      state store if the suspected minor or person fails to provide information specified in Subsection
             1295      (6)(b).
             1296          (7) (a) A state store may not sell, offer for sale, or furnish liquor except in a sealed



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             1297
     [package] container.
             1298          (b) A person may not open a sealed [package] container on the premises of a state
             1299      store.
             1300          (8) On or after October 1, 2011, a state store may not sell, offer for sale, or furnish
             1301      heavy beer in a sealed container that exceeds two liters.
             1302          Section 14. Section 32B-2-504 (Effective 07/01/11) is amended to read:
             1303           32B-2-504 (Effective 07/01/11). Delivery of liquor to state store.
             1304          (1) Liquor to be sold from a state store may be transported from a warehouse
             1305      authorized by the department to the state store if transported by a person authorized by the
             1306      department to transport the liquor to the state store, including a common carrier.
             1307          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1308      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1309          (3) A person may not drink, use, or allow to be drunk or used, liquor while it is in
             1310      transit under this section.
             1311          Section 15. Section 32B-2-602 (Effective 07/01/11) is amended to read:
             1312           32B-2-602 (Effective 07/01/11). Application requirements for a package agency.
             1313          (1) Before a person may store, sell, offer for sale, or furnish liquor in a sealed
             1314      [package] container on its premises under a package agency, the person shall first obtain a
             1315      package agency issued by the commission in accordance with this part.
             1316          (2) To obtain a package agency, a person seeking to be the package agent under this
             1317      part shall submit to the department:
             1318          (a) a written application in a form prescribed by the department;
             1319          (b) a nonrefundable application fee of [$100] $125;
             1320          (c) written consent of the local authority;
             1321          (d) evidence of proximity to any community location, with proximity requirements
             1322      being governed by Section 32B-1-202 ;
             1323          (e) a bond as specified by Section 32B-2-604 ;
             1324          (f) a floor plan of the premises, including a description and highlighting of that part of
             1325      the premises in which the person proposes that the package agency be located;
             1326          (g) evidence that the package agency is carrying public liability insurance in an amount
             1327      and form satisfactory to the department;



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             1328
         (h) a signed consent form stating that the package agent permits any authorized
             1329      representative of the commission, department, or any law enforcement officer to have
             1330      unrestricted right to enter the premises of the package agency;
             1331          (i) if the person applying is an entity, verification that a person who signs the package
             1332      agency application is authorized to sign on behalf of the entity; and
             1333          (j) any other information the commission or department may require.
             1334          (3) The commission may not issue a package agency to a person who is disqualified
             1335      under Section 32B-1-304 .
             1336          (4) The commission may not issue a package agency for premises that do not meet the
             1337      proximity requirements of Section 32B-1-202 .
             1338          Section 16. Section 32B-2-605 (Effective 07/01/11) is amended to read:
             1339           32B-2-605 (Effective 07/01/11). Operational requirements for package agency.
             1340          (1) (a) A person may not operate a package agency until a package agency agreement is
             1341      entered into by the package agent and the department.
             1342          (b) A package agency agreement shall state the conditions of operation by which the
             1343      package agent and the department are bound.
             1344          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             1345      title, or the package agency agreement, the department may take any action against the package
             1346      agent that is allowed by the package agency agreement.
             1347          (ii) An action against a package agent is governed solely by its package agency
             1348      agreement and may include suspension or revocation of the package agency.
             1349          (iii) Notwithstanding that this part refers to "package agency" or "package agent," staff
             1350      of the package agency or package agent is subject to the same requirement or prohibition.
             1351          (2) (a) A package agency shall be operated by an individual who is either:
             1352          (i) the package agent; or
             1353          (ii) an individual designated by the package agent.
             1354          (b) An individual who is a designee under this Subsection (2) shall be:
             1355          (i) an employee of the package agent; and
             1356          (ii) responsible for the operation of the package agency.
             1357          (c) The conduct of the designee is attributable to the package agent.
             1358          (d) A package agent shall submit the name of the person operating the package agency



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             1359
     to the department for the department's approval.
             1360          (e) A package agent shall state the name and title of a designee on the application for a
             1361      package agency.
             1362          (f) A package agent shall:
             1363          (i) inform the department of a proposed change in the individual designated to operate
             1364      a package agency; and
             1365          (ii) receive prior approval from the department before implementing the change
             1366      described in this Subsection (2)(f).
             1367          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             1368      immediate termination of a package agency agreement.
             1369          (3) (a) A package agent shall display in a prominent place in the package agency[: (a)]
             1370      the record issued by the commission that designates the package agency[; and].
             1371          (b) A package agent that displays or stores liquor at a location visible to the public
             1372      shall display in a prominent place in the package agency a sign in large letters [stating:
             1373      "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             1374      aggressively in Utah."] that consists of text in the following order:
             1375          (i) a header that reads: "WARNING";
             1376          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1377      can cause birth defects and permanent brain damage for the child.";
             1378          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1379      [insert most current toll-free number] with questions or for more information.";
             1380          (iv) a header that reads: "WARNING"; and
             1381          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1382      serious crime that is prosecuted aggressively in Utah."
             1383          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1384      font style than the text described in Subsections (3)(b)(iv) and (v).
             1385          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1386      same font size.
             1387          (d) The Department of Health shall work with the commission and department to
             1388      facilitate consistency in the format of a sign required under this section.
             1389          (4) A package agency may not display liquor or a price list in a window or showcase



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             1390
     that is visible to passersby.
             1391          (5) (a) A package agency may not purchase liquor from a person except from the
             1392      department.
             1393          (b) At the discretion of the department, liquor may be provided by the department to a
             1394      package agency for sale on consignment.
             1395          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             1396      other than as designated in the package agent's application, unless the package agent first
             1397      applies for and receives approval from the department for a change of location within the
             1398      package agency premises.
             1399          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             1400      fixed by the commission.
             1401          (8) A package agency may not sell, offer for sale, or furnish liquor to:
             1402          (a) a minor;
             1403          (b) a person actually, apparently, or obviously intoxicated;
             1404          (c) a known interdicted person; or
             1405          (d) a known habitual drunkard.
             1406          (9) (a) A package agency may not employ a minor to handle liquor.
             1407          (b) (i) Staff of a package agency may not:
             1408          (A) consume an alcoholic product on the premises of a package agency; or
             1409          (B) allow any person to consume an alcoholic product on the premises of a package
             1410      agency.
             1411          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             1412          (10) (a) A package agency may not close or cease operation for a period longer than 72
             1413      hours, unless:
             1414          (i) the package agency notifies the department in writing at least seven days before the
             1415      closing; and
             1416          (ii) the closure or cessation of operation is first approved by the department.
             1417          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             1418      agency shall immediately notify the department by telephone.
             1419          (c) (i) The department may authorize a closure or cessation of operation for a period
             1420      not to exceed 60 days.



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             1421
         (ii) The department may extend the initial period an additional 30 days upon written
             1422      request of the package agency and upon a showing of good cause.
             1423          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1424      commission approval.
             1425          (d) The notice required by Subsection (10)(a) shall include:
             1426          (i) the dates of closure or cessation of operation;
             1427          (ii) the reason for the closure or cessation of operation; and
             1428          (iii) the date on which the package agency will reopen or resume operation.
             1429          (e) Failure of a package agency to provide notice and to obtain department
             1430      authorization before closure or cessation of operation results in an automatic termination of the
             1431      package agency agreement effective immediately.
             1432          (f) Failure of a package agency to reopen or resume operation by the approved date
             1433      results in an automatic termination of the package agency agreement effective on that date.
             1434          (11) A package agency may not transfer its operations from one location to another
             1435      location without prior written approval of the commission.
             1436          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             1437      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             1438      person, whether for monetary gain or not.
             1439          (b) A package agency has no monetary value for any type of disposition.
             1440          (13) (a) Subject to the other provisions of this Subsection (13):
             1441          (i) sale or delivery of liquor may not be made on or from the premises of a package
             1442      agency, and a package agency may not be kept open for the sale of liquor:
             1443          (A) on Sunday; or
             1444          (B) on a state or federal legal holiday.
             1445          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             1446      agency, and a package agency may be open for the sale of liquor, only on a day and during
             1447      hours that the commission directs by rule or order.
             1448          [(b) Subsection (13)(a) governs unless:]
             1449          (b) A package agency located at a manufacturing facility is not subject to Subsection
             1450      (13)(a) if:
             1451          (i) the package agency is located at a [winery] manufacturing facility licensed in



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             1452
     accordance with Chapter 11, Manufacturing and Related Licenses Act;
             1453          (ii) the [winery] manufacturing facility licensed in accordance with Chapter 11,
             1454      Manufacturing and Related Licenses Act, holds:
             1455          (A) a full-service restaurant license; [or]
             1456          (B) a limited-service restaurant license; or
             1457          (C) a beer-only restaurant license;
             1458          (iii) the restaurant is located at the [winery] manufacturing facility;
             1459          (iv) the restaurant sells [wines] an alcoholic product produced at the [winery]
             1460      manufacturing facility;
             1461          (v) the [winery] manufacturing facility:
             1462          (A) owns the restaurant; or
             1463          (B) operates the restaurant;
             1464          (vi) the package agency only sells [wine] an alcoholic product produced at the [winery]
             1465      manufacturing facility; and
             1466          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1467      sale at the restaurant.
             1468          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
             1469      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             1470      in a manner similar to a state store.
             1471          (ii) The commission may by rule define what constitutes a package agency that sells
             1472      liquor "in a manner similar to a state store."
             1473          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1474      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1475      is:
             1476          (i) 21 years of age or older; and
             1477          (ii) the minor's parent, legal guardian, or spouse.
             1478          (b) A package agent or staff of a package agency that has reason to believe that a
             1479      person who is on the premises of a package agency is under the age of 21 and is not
             1480      accompanied by a person described in Subsection (14)(a) may:
             1481          (i) ask the suspected minor for proof of age;
             1482          (ii) ask the person who accompanies the suspected minor for proof of age; and



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             1483
         (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1484      proof of parental, guardianship, or spousal relationship.
             1485          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             1486      suspected minor and to the person who accompanies the suspected minor into the package
             1487      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             1488          (d) A package agent or staff of a package agency shall require the suspected minor and
             1489      the person who accompanies the suspected minor into the package agency to immediately leave
             1490      the premises of the package agency if the minor or person fails to provide information specified
             1491      in Subsection (14)(b).
             1492          (15) (a) A package agency [may not] shall sell, offer for sale, or furnish liquor [except]
             1493      in a sealed [package] container.
             1494          (b) A person may not open a sealed [package] container on the premises of a package
             1495      agency.
             1496          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
             1497      furnish liquor in other than a sealed container:
             1498          (i) if the package agency is the type of package agency that authorizes the package
             1499      agency to sell, offer for sale, or furnish the liquor as part of room service;
             1500          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
             1501          (iii) subject to:
             1502          (A) staff of the package agency providing the liquor in person only to an adult guest in
             1503      the guest room;
             1504          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
             1505      by a guest; and
             1506          (C) the same limits on the portions in which an alcoholic product may be sold by a
             1507      retail licensee under Section 32B-5-304 .
             1508          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
             1509      furnish heavy beer in a sealed container that exceeds two liters.
             1510          [(16)] (17) The department may pay or otherwise remunerate a package agent on any
             1511      basis, including sales or volume of business done by the package agency.
             1512          [(17)] (18) The commission may prescribe by policy or rule general operational
             1513      requirements of a package agency that are consistent with this title and relate to:



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             1514
         (a) physical facilities;
             1515          (b) conditions of operation;
             1516          (c) hours of operation;
             1517          (d) inventory levels;
             1518          (e) payment schedules;
             1519          (f) methods of payment;
             1520          (g) premises security; and
             1521          (h) any other matter considered appropriate by the commission.
             1522          Section 17. Section 32B-2-606 (Effective 07/01/11) is amended to read:
             1523           32B-2-606 (Effective 07/01/11). Delivery of liquor to package agency.
             1524          (1) Liquor to be sold from a package agency may be transported from a warehouse or
             1525      state store authorized by the department to the package agency if transported by a person
             1526      authorized by the department to transport the liquor to the package agency, including a
             1527      common carrier.
             1528          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1529      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1530          (3) A person may not drink, use, or allow to be drunk or used, any liquor while the
             1531      liquor is in transit under this section.
             1532          Section 18. Section 32B-4-203 (Effective 07/01/11) is amended to read:
             1533           32B-4-203 (Effective 07/01/11). Authority to inspect.
             1534          (1) (a) This Subsection (1) applies to:
             1535          (i) a commissioner;
             1536          (ii) an authorized representative of the commission or department; or
             1537          (iii) a law enforcement or peace officer.
             1538          (b) An individual described in Subsection (1)(a):
             1539          (i) shall be given access, ingress, and egress to and from premises or a conveyance
             1540      used in the storage, sale, furnishing, manufacture, or transportation of an alcoholic product;
             1541          (ii) may open a [package] container containing, or supposed to contain, an article sold,
             1542      or exposed for sale, held in possession, or manufactured with intent to sell in violation of this
             1543      title or commission rules; and
             1544          (iii) may inspect the contents and take samples of the contents for analysis from a



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             1545
     [package] container described in this Subsection (1).
             1546          (2) The following shall assist, when requested by a person described in Subsection (1),
             1547      in tracing, finding, or discovering the presence of an article prohibited by this title or
             1548      commission rules to the extent assistance would not infringe upon the person's federal and state
             1549      constitutional rights:
             1550          (a) a dealer;
             1551          (b) a clerk;
             1552          (c) a bookkeeper;
             1553          (d) an express agent;
             1554          (e) a railroad or airline official;
             1555          (f) a common or other carrier; and
             1556          (g) an employee of a person listed in this Subsection (2).
             1557          Section 19. Section 32B-4-206 (Effective 07/01/11) is amended to read:
             1558           32B-4-206 (Effective 07/01/11). Searches, seizures, forfeitures, and fines.
             1559          (1) The following are subject to forfeiture pursuant to Title 24, Chapter 1, Utah
             1560      Uniform Forfeiture Procedures Act:
             1561          (a) an alcoholic product possessed, purchased, used, stored, sold, offered for sale,
             1562      furnished, given, received, warehoused, manufactured, distributed, shipped, carried,
             1563      transported, or adulterated in violation of this title or commission rules;
             1564          (b) a [package] container or property used or intended for use as a [package] container
             1565      for an alcoholic product in violation of this title or commission rules;
             1566          (c) raw materials, products, and equipment used, or intended for use, in manufacturing,
             1567      processing, delivering, importing, exporting, or adulterating an alcoholic product in violation
             1568      of this title or commission rules;
             1569          (d) implements, furniture, fixtures, or other personal property used or kept for a
             1570      violation of this title or commission rules;
             1571          (e) conveyances including an aircraft, vehicle, or vessel used or intended for use, to
             1572      transport or in any manner facilitate the transportation, sale, receipt, possession, or
             1573      concealment of property described in Subsection (1)(a), (b), (c), or (d); and
             1574          (f) a record used or intended for use in violation of this title or commission rules.
             1575          (2) (a) Property subject to forfeiture under this title may be seized by a peace officer of



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             1576
     this state or any other person authorized by law upon process issued by a court having
             1577      jurisdiction over the property in accordance with the Utah Rules of Criminal Procedure relating
             1578      to search warrants or administrative warrants.
             1579          (b) Notwithstanding Subsection (2)(a), seizure without process may be made when:
             1580          (i) the seizure is incident to an arrest or search under a search warrant or an inspection
             1581      under an administrative inspection warrant;
             1582          (ii) the property subject to seizure has been the subject of a prior judgment in favor of
             1583      the state in a criminal injunction or forfeiture proceeding under this title;
             1584          (iii) the peace officer or other person authorized by law has probable cause to believe
             1585      that the property is directly or indirectly dangerous to health or safety; or
             1586          (iv) the peace officer or other person authorized by law has probable cause to believe
             1587      that the property is being or has been used, intended to be used, held, or kept in violation of this
             1588      title or commission rules.
             1589          (3) If property is seized pursuant to a search or administrative warrant, a peace officer
             1590      or other person authorized by law shall comply with the requirements of the Utah Rules of
             1591      Criminal Procedure.
             1592          (4) (a) If property is seized without process:
             1593          (i) the peace officer or other person authorized by law shall make a return of the peace
             1594      officer's or person's acts without delay directly to the district court of the county in which the
             1595      property was located; and
             1596          (ii) the district court shall have jurisdiction of the case.
             1597          (b) A return shall describe:
             1598          (i) the property seized;
             1599          (ii) the place where the property is seized; and
             1600          (iii) any person in apparent possession of the property.
             1601          (c) A peace officer or other person described in Subsection (4)(a) shall promptly:
             1602          (i) deliver a written inventory of anything seized to any person in apparent authority at
             1603      the premises where the seizure is made; or
             1604          (ii) post a written inventory of anything seized in a conspicuous place at the premises.
             1605          (d) A written inventory under this Subsection (4) shall state the place where the
             1606      property is being held.



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             1607
         (5) Property taken or detained under this section is not repleviable but is considered in
             1608      custody of the law enforcement agency making the seizure subject only to the orders of the
             1609      court or the official having jurisdiction. When property is seized under this title, the
             1610      appropriate person or agency may:
             1611          (a) place the property under seal;
             1612          (b) remove the property to a place designated by:
             1613          (i) the person or agency; or
             1614          (ii) the warrant under which the property is seized; or
             1615          (c) take custody of the property and remove the property to an appropriate location for
             1616      disposition in accordance with law.
             1617          (6) When property is subject to forfeiture under this section, a proceeding shall be
             1618      instituted in accordance with Title 24, Chapter 1, Utah Uniform Forfeiture Procedures Act.
             1619          (7) When property is ordered forfeited under Title 24, Chapter 1, Utah Uniform
             1620      Forfeiture Procedures Act, by a finding of a court that no person is entitled to recover the
             1621      property, the property, if an alcohol [package] container or product used as a [package]
             1622      container for an alcoholic product, shall be disposed of as follows:
             1623          (a) An alcoholic product shall be sold in accordance with Section 24-1-17 if the
             1624      alcoholic product is:
             1625          (i) unadulterated, pure, and free from crude, unrectified, or impure form of ethylic
             1626      alcohol, or any other deleterious substance or liquid; and
             1627          (ii) otherwise in saleable condition.
             1628          (b) If the alcoholic product is impure, adulterated, or otherwise unfit for sale, the
             1629      department shall destroy the alcoholic product and its [package] container under competent
             1630      supervision.
             1631          (8) Except when otherwise provided, a fine or forfeiture levied under this title shall be
             1632      paid to the county treasurer of the county in which the prosecution occurred.
             1633          Section 20. Section 32B-4-208 (Effective 07/01/11) is amended to read:
             1634           32B-4-208 (Effective 07/01/11). Nuisances.
             1635          (1) As used in this section, "nuisance" means:
             1636          (a) a room, house, building, structure, place, aircraft, vehicle, vessel, or other
             1637      conveyance where an alcoholic product is possessed, purchased, used, kept, stored, sold,



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             1638
     offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1639      carried, transported, or adulterated in violation of this title; or
             1640          (b) an alcoholic product, [package] container, equipment, or other property kept or
             1641      used in maintaining an item or property described in Subsection (1)(a).
             1642          (2) A person who maintains or assists in maintaining a nuisance is guilty of a class B
             1643      misdemeanor.
             1644          (3) If a person has knowledge that, or has reason to believe that the person's room,
             1645      house, building, structure, place, aircraft, vehicle, vessel, or other conveyance is occupied or
             1646      used as a nuisance, or allows it to be occupied or used as a nuisance, the nuisance property is
             1647      subject to a lien for and may be sold to pay the fines and costs assessed against the person
             1648      guilty of the common nuisance. This lien may be enforced by action in a court having
             1649      jurisdiction.
             1650          (4) (a) The department shall bring an action to abate a nuisance in the name of the
             1651      department in a court having jurisdiction.
             1652          (b) An action brought under this Subsection (4) is an action in equity.
             1653          (c) The department may not be required to post a bond to initiate an action under this
             1654      Subsection (4).
             1655          (d) A court may issue:
             1656          (i) if it appears that a nuisance exists, a temporary writ of injunction restraining the
             1657      defendant from conducting or permitting the continuance of the nuisance until the conclusion
             1658      of the trial; and
             1659          (ii) an order restraining the defendant and any other person from removing or
             1660      interfering with an alcoholic product, [package] container, equipment, or other property kept or
             1661      used in violation of this title or commission rules.
             1662          (e) In an action to abate or enjoin a nuisance, the court need not find that the property
             1663      involved is being unlawfully used at the time of the hearing.
             1664          (f) On finding that a material allegation of a petition or complaint is true, the court
             1665      shall order that an alcoholic product may not be possessed, purchased, used, kept, stored, sold,
             1666      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1667      carried, transported, or adulterated, in any portion of the room, house, building, structure,
             1668      place, aircraft, vehicle, vessel, or other conveyance.



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             1669
         (g) Upon judgment of a court ordering abatement of the nuisance, the court may order
             1670      that the premises or conveyance in question may not be occupied or used for any purpose for
             1671      one year, except under Subsection (4)(h).
             1672          (h) A court may permit premises or conveyance described in Subsection (4)(g) to be
             1673      occupied or used:
             1674          (i) if its owner, lessee, tenant, or occupant gives bond in an appropriate amount with
             1675      sufficient surety, approved by the court, payable to the state;
             1676          (ii) on the condition that an alcoholic product will not be present in or on the premises
             1677      or the conveyance; and
             1678          (iii) on the condition that payment of the fines, costs, and damages assessed for
             1679      violation of this title or commission rules will be made.
             1680          (5) If a tenant of the premises uses the premises or any part of the premises in
             1681      maintaining a nuisance, or knowingly permits use by another, the lease is void and the right to
             1682      possession reverts to the owner or lessor who is entitled to the remedy provided by law for
             1683      forcible detention of the premises.
             1684          (6) A person is guilty of assisting in maintaining a nuisance as provided in Section
             1685      76-10-804 , if that person:
             1686          (a) knowingly permits a building or premises owned or leased by the person, or under
             1687      the person's control, or any part of a building or premises, to be used in maintaining a nuisance;
             1688      or
             1689          (b) after being notified in writing by a prosecutor or other citizen of the unlawful use,
             1690      fails to take all proper measures to:
             1691          (i) abate the nuisance; or
             1692          (ii) remove the one or more persons from the premises.
             1693          Section 21. Section 32B-4-406 (Effective 07/01/11) is amended to read:
             1694           32B-4-406 (Effective 07/01/11). Unlawful sale, offer for sale, or furnishing of an
             1695      alcoholic product.
             1696          (1) Except as provided in Subsection (2):
             1697          (a) a person may not sell, offer for sale, or furnish beer to the general public in a
             1698      [package] container that exceeds two liters; and
             1699          (b) a person may not purchase or possess beer in a [package] container that exceeds



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     two liters.
             1701          (2) (a) A retail licensee may sell, offer for sale, or furnish beer on draft subject to the
             1702      requirements of Section 32B-5-304 .
             1703          (b) A retail licensee may purchase or possess beer in a [package] container that exceeds
             1704      two liters to be dispensed on draft for consumption subject to the requirements of Section
             1705      32B-5-304 .
             1706          (c) A beer wholesaler licensee may sell, offer for sale, or furnish beer in a [package]
             1707      container that exceeds two liters to a retail licensee described in Subsection (2)(a).
             1708          (3) On or after October 1, 2011:
             1709          (a) A person may not sell, offer for sale, or furnish heavy beer in a container that
             1710      exceeds two liters.
             1711          (b) A person may not purchase or possess heavy beer in a container that exceeds two
             1712      liters.
             1713          Section 22. Section 32B-4-420 (Effective 07/01/11) is amended to read:
             1714           32B-4-420 (Effective 07/01/11). Unlawful adulteration.
             1715          (1) For purposes of this section, "tamper" means to do one or more of the following to
             1716      the contents of a [package] container:
             1717          (a) fortify;
             1718          (b) adulterate;
             1719          (c) contaminate;
             1720          (d) dilute;
             1721          (e) change its character or purity; or
             1722          (f) otherwise change.
             1723          (2) A person may not, for any purpose, mix or allow to be mixed with an alcoholic
             1724      product sold or supplied by the person as a beverage any of the following:
             1725          (a) a drug;
             1726          (b) methylic alcohol;
             1727          (c) a crude, unrectified, or impure form of ethylic alcohol; or
             1728          (d) another deleterious substance.
             1729          (3) (a) The following may not engage in an act listed in Subsection (3)(b):
             1730          (i) a package agent;



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             1731
         (ii) a retail licensee;
             1732          (iii) a permittee;
             1733          (iv) a beer wholesaler licensee;
             1734          (v) a liquor warehouser licensee;
             1735          (vi) a supplier; or
             1736          (vii) an importer.
             1737          (b) A person listed in Subsection (3)(a) may not:
             1738          (i) tamper with the contents of a [package] container of alcoholic product as originally
             1739      marketed by a manufacturer;
             1740          (ii) refill or partly refill with any substance the contents of an original [package]
             1741      container of alcoholic product as originally marketed by a manufacturer;
             1742          (iii) misrepresent the brand of an alcoholic product sold or offered for sale; or
             1743          (iv) sell or furnish a brand of alcoholic product that is not the same as that ordered by a
             1744      purchaser without first advising the purchaser of the difference.
             1745          Section 23. Section 32B-4-705 (Effective 07/01/11) is amended to read:
             1746           32B-4-705 (Effective 07/01/11). Exclusions from tied house prohibitions.
             1747          (1) Notwithstanding Subsection 32B-4-704 (3), a thing of value may be furnished by an
             1748      industry member to a retailer under the conditions and within the limitations prescribed in:
             1749          (a) this section; and
             1750          (b) the applicable federal laws cited in this section.
             1751          (2) The following may be furnished by an industry member:
             1752          (a) a product display as provided in 27 C.F.R. Sec. 6.83;
             1753          (b) point of sale advertising material or a consumer advertising specialty as provided in
             1754      27 C.F.R. Sec. 6.84;
             1755          (c) a thing of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
             1756          (d) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
             1757          (e) combination packaging as provided in 27 C.F.R. Sec. 6.93;
             1758          (f) an educational seminar as provided in 27 C.F.R. Sec. 6.94;
             1759          (g) a consumer promotion as provided in 27 C.F.R. Sec. 6.96;
             1760          (h) an advertising service as provided in 27 C.F.R. Sec. 6.98;
             1761          (i) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;



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             1762
         (j) merchandise as provided in 27 C.F.R. Sec. 6.101; and
             1763          (k) an outside sign as provided in 27 C.F.R. Sec. 6.102.
             1764          (3) The following exceptions provided in federal law are not applicable:
             1765          (a) the exception for a sample as provided in 27 C.F.R. Sec. 6.91;
             1766          (b) the exception for a consumer tasting or sampling at a retail establishment as
             1767      provided in 27 C.F.R. Sec. 6.95; and
             1768          (c) the exception for participation in a retailer association activity provided in 27
             1769      C.F.R. Sec. 6.100.
             1770          (4) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall maintain
             1771      a record:
             1772          (a) of an item furnished to a retailer;
             1773          (b) on the premises of the industry member; and
             1774          (c) for a three-year period.
             1775          (5) A sample of liquor may be provided to the department under the following
             1776      conditions:
             1777          (a) With the department's permission, an industry member may submit a department
             1778      sample to the department for product testing, analysis, and sampling.
             1779          (b) No more than two department samples of a particular type, vintage, and production
             1780      lot of a particular branded product may be submitted to the department for department testing,
             1781      analysis, and sampling within a consecutive 120-day period.
             1782          (c) (i) A department sample may not exceed 1 liter.
             1783          (ii) Notwithstanding Subsection (5)(c)(i), a department sample of the following may
             1784      not exceed 1.5 liters unless that exact alcoholic product is only commercially packaged in a
             1785      larger size, not to exceed 5 liters:
             1786          (A) wine;
             1787          (B) heavy beer; or
             1788          (C) a flavored malt beverage.
             1789          (d) A department sample submitted to the department:
             1790          (i) shall be shipped prepaid by the industry member by common carrier; and
             1791          (ii) may not be shipped by United States mail directly to the department's central
             1792      administrative warehouse office.



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             1793
         (e) A department sample may not be shipped to any other location within the state.
             1794          (f) The industry member shall submit with a department sample submitted to the
             1795      department a letter from the industry member that clearly:
             1796          (i) identifies the product as a "department sample"; and
             1797          (ii) states the FOB case price of the product.
             1798          (g) (i) The department may transfer a listed item from current stock:
             1799          (A) for use as a comparison control sample; or
             1800          (B) to verify product spoilage as considered appropriate.
             1801          (ii) The department shall charge back a sample transferred under this Subsection (5)(g)
             1802      to the respective industry member.
             1803          (h) The department shall:
             1804          (i) account for, label, and record a department sample received or transferred;
             1805          (ii) account for the department sample's disposition; and
             1806          (iii) maintain a record of the sample and its disposition for a two-year period.
             1807          (i) The department shall affix to each [package] container of a department sample a
             1808      label clearly identifying the product as a "department sample."
             1809          (j) The department shall dispose of a department sample delivered to the department or
             1810      transferred from the department's current stock in one of the following ways as chosen by the
             1811      department:
             1812          (i) test and analyze the department sample, with the remaining contents destroyed
             1813      under controlled and audited conditions established by the department;
             1814          (ii) destroy the entire contents of the department sample under controlled and audited
             1815      conditions established by the department; or
             1816          (iii) add the department sample to the inventory of the department for sale to the
             1817      public.
             1818          (k) A person other than an authorized department official may not be in possession of a
             1819      department sample except as otherwise provided.
             1820          (l) The department shall handle a liquor item received by the department from a
             1821      supplier that is not designated as a sample by the supplier, but that is an item not specifically
             1822      listed on a department purchase order, in accordance with this Subsection (5).
             1823          (m) The department may not use its money to pay freight or charges on a sample or a



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             1824
     liquor item:
             1825          (i) shipped to the department by a supplier; and
             1826          (ii) not listed on a department purchase order.
             1827          (6) A sample of beer may be provided by a beer industry member to a retailer under the
             1828      conditions listed in this Subsection (6).
             1829          (a) A sample of beer may be provided by an industry member only to a retailer who has
             1830      not purchased the brand of beer from that industry member within the last 12 months.
             1831          (b) For each retailer, the industry member may give not more than three gallons of any
             1832      brand of beer, except that if a particular product is not available in a size within the quantity
             1833      limitation, an industry member may furnish the next largest size.
             1834          (7) An educational seminar may involve an industry member under the conditions
             1835      listed in this Subsection (7).
             1836          (a) An industry member may provide or participate in an educational seminar:
             1837          (i) involving:
             1838          (A) the department;
             1839          (B) a retailer;
             1840          (C) a holder of a scientific or educational special use permit;
             1841          (D) another industry member; or
             1842          (E) an employee of a person listed in Subsections (7)(a)(i)(A) through (D); and
             1843          (ii) regarding a topic such as:
             1844          (A) merchandising and product knowledge;
             1845          (B) use of equipment; and
             1846          (C) a tour of an alcoholic product manufacturing facility.
             1847          (b) An industry member may not pay the expenses of or compensate a person who is a
             1848      department employee, a retailer, or a permittee for attending a seminar or tour described in
             1849      Subsection (7)(a).
             1850          (8) (a) A liquor industry member may conduct a tasting of a liquor product of the
             1851      industry member:
             1852          (i) for the department, at the department's request; and
             1853          (ii) for a licensed industry representative, but only at the department's central
             1854      administrative warehouse office.



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             1855
         (b) A liquor industry member may only use a department sample or industry
             1856      representative sample when conducting a tasting of the industry member's liquor product.
             1857          (c) A beer industry member may conduct a tasting of a beer product for a beer retailer
             1858      either at:
             1859          (i) the industry member's premises; or
             1860          (ii) a retail establishment.
             1861          (d) Except to the extent authorized by commission rule, an alcoholic product industry
             1862      member may not conduct tasting or sampling activities with:
             1863          (i) a retailer; or
             1864          (ii) a member of the general public.
             1865          (9) A beer industry member may participate in a beer retailer association activity to the
             1866      extent authorized by 27 C.F.R. Sec. 6.100.
             1867          (10) (a) An industry member may contribute to a charitable, civic, religious, fraternal,
             1868      educational, or community activity, except the contribution may not be given to influence a
             1869      retailer in the selection of a product that may be sold at the activity.
             1870          (b) An industry member or retailer violates this Subsection (10) if:
             1871          (i) the industry member's contribution influences, directly or indirectly, the retailer in
             1872      the selection of a product; and
             1873          (ii) a competitor's product is excluded in whole or in part from sale at the activity.
             1874          (11) (a) An industry member may lease or furnish equipment listed in Subsection
             1875      (11)(b) to a retailer if:
             1876          (i) the equipment is leased or furnished for a special event;
             1877          (ii) a reasonable rental or service fee is charged for the equipment; and
             1878          (iii) the period for which the equipment is leased or furnished does not exceed 30 days.
             1879          (b) This Subsection (11) applies to the following equipment:
             1880          (i) a picnic pump;
             1881          (ii) a cold plate;
             1882          (iii) a tub;
             1883          (iv) a keg box;
             1884          (v) a refrigerated trailer;
             1885          (vi) a refrigerated van; or



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             1886
         (vii) a refrigerated draft system.
             1887          (12) (a) A liquor industry member may assist the department in:
             1888          (i) ordering, shipping, and delivering merchandise;
             1889          (ii) new product notification;
             1890          (iii) listing and delisting information;
             1891          (iv) price quotations;
             1892          (v) product sales analysis;
             1893          (vi) shelf management; and
             1894          (vii) an educational seminar.
             1895          (b) (i) A liquor industry member may, to acquire a new listing:
             1896          (A) solicit an order from the department; and
             1897          (B) submit to the department a sample of the liquor industry member's products under
             1898      Subsection (5) and price lists.
             1899          (ii) (A) An industry member is confined to the customer areas when the industry
             1900      member visits a state store or package agency unless otherwise approved.
             1901          (B) An industry member is confined to the office area of a state warehouse when the
             1902      industry member visits a state warehouse unless otherwise approved.
             1903          (13) A beer industry member may assist a beer retailer in:
             1904          (a) ordering, shipping, and delivering beer merchandise;
             1905          (b) new product notification;
             1906          (c) listing and delisting information;
             1907          (d) price quotations;
             1908          (e) product sales analysis;
             1909          (f) shelf management; and
             1910          (g) an educational seminar.
             1911          (14) A beer industry member may, to acquire a new listing:
             1912          (a) solicit an order from a beer retailer; and
             1913          (b) submit to a beer retailer a sample of the beer industry member's beer products under
             1914      Subsection (5) and price lists.
             1915          Section 24. Section 32B-5-301 (Effective 07/01/11) is amended to read:
             1916           32B-5-301 (Effective 07/01/11). General operational requirements.



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             1917
         (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
             1918      rules of the commission, including the relevant part under Chapter 6, Specific Retail License
             1919      Act, for the specific type of retail license.
             1920          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1921      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1922          (i) a retail licensee;
             1923          (ii) individual staff of a retail licensee; or
             1924          (iii) both a retail licensee and staff of the retail licensee.
             1925          (2) (a) If there is a conflict between this part and the relevant part under Chapter 6,
             1926      Specific Retail License Act, for the specific type of retail license, the relevant part under
             1927      Chapter 6 governs.
             1928          (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
             1929      licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
             1930      specifically authorized by the relevant part under Chapter 6, Specific Retail License Act.
             1931          (c) Notwithstanding that this part or the relevant part under Chapter 6, Specific Retail
             1932      License Act, refers to "retail licensee," staff of the retail licensee is subject to the same
             1933      requirement or prohibition.
             1934          (3) (a) A retail licensee shall display in a prominent place in the licensed premises[:
             1935      (a)] the retail license that is issued by the department[; and].
             1936          (b) A retail licensee shall display in a prominent place a sign in large letters [stating:
             1937      "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             1938      aggressively in Utah."] that consists of text in the following order:
             1939          (i) a header that reads: "WARNING";
             1940          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1941      can cause birth defects and permanent brain damage for the child.";
             1942          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1943      [insert most current toll-free number] with questions or for more information.";
             1944          (iv) a header that reads: "WARNING"; and
             1945          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1946      serious crime that is prosecuted aggressively in Utah."
             1947          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different



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             1948
     font style than the text described in Subsections (3)(b)(iv) and (v).
             1949          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1950      same font size.
             1951          (d) The Department of Health shall work with the commission and department to
             1952      facilitate consistency in the format of a sign required under this section.
             1953          (4) A retail licensee may not on the licensed premises:
             1954          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1955      Chapter 10, Part 11, Gambling;
             1956          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1957      Part 11, Gambling; or
             1958          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1959      the risking of something of value for a return or for an outcome when the return or outcome is
             1960      based upon an element of chance, excluding the playing of an amusement device that confers
             1961      only an immediate and unrecorded right of replay not exchangeable for value.
             1962          (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
             1963      violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             1964      Paraphernalia Act:
             1965          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1966      58-37-2 ; or
             1967          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1968      Section 58-37a-3 .
             1969          (6) Upon the presentation of credentials, at any time during which a retail licensee is
             1970      open for the transaction of business, the retail licensee shall immediately:
             1971          (a) admit a commissioner, authorized department employee, or law enforcement officer
             1972      to the retail licensee's premises; and
             1973          (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
             1974      inspect completely:
             1975          (i) the entire premises of the retail licensee; and
             1976          (ii) the records of the retail licensee.
             1977          (7) An individual may not consume an alcoholic product on the licensed premises of a
             1978      retail licensee on any day during the period:



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             1979
         (a) beginning one hour after the time of day that the period during which a retail
             1980      licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
             1981      begins; and
             1982          (b) ending at the time specified in the relevant part under Chapter 6, Specific Retail
             1983      License Act, for the type of retail license when the retail licensee may first sell, offer for sale,
             1984      or furnish an alcoholic product on the licensed premises on that day.
             1985          Section 25. Section 32B-5-304 (Effective 07/01/11) is amended to read:
             1986           32B-5-304 (Effective 07/01/11). Portions in which alcoholic product may be sold.
             1987          (1) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor only
             1988      in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated
             1989      metered dispensing system approved by the department in accordance with commission rules
             1990      adopted under this title, except that:
             1991          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1992      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1993      requirements:
             1994          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1995      a primary spirituous liquor;
             1996          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1997          (iii) the retail licensee shall designate a location where flavorings are stored on the
             1998      floor plan submitted to the department; and
             1999          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             2000          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2001      system if used:
             2002          (i) as a flavoring on a dessert; and
             2003          (ii) in the preparation of a flaming food dish, drink, or dessert; and
             2004          (c) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
             2005          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
             2006      individual portion that does not exceed 5 ounces per glass or individual portion.
             2007          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
             2008      a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
             2009          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a [package] container



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             2010
     not exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
             2011          (ii) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             2012      not to exceed 750 milliliters at a price fixed by the commission to a table of less than four
             2013      persons.
             2014          (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
             2015      [package] container at a price fixed by the commission, except that the original [package]
             2016      container may not exceed one liter.
             2017          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
             2018      original [package] container at a price fixed by the commission, except that the original
             2019      [package] container may not exceed one liter.
             2020          (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
             2021      beer for on-premise consumption:
             2022          (i) in an open original [package] container; and
             2023          (ii) in a [package] container on draft.
             2024          (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
             2025          (i) in a size of [package] container that exceeds two liters; or
             2026          (ii) to an individual patron in a size of [package] container that exceeds one liter.
             2027          Section 26. Section 32B-5-305 (Effective 07/01/11) is amended to read:
             2028           32B-5-305 (Effective 07/01/11). Pricing of alcoholic product -- Other charge.
             2029          (1) (a) A retail licensee may sell, offer for sale, or furnish liquor only at a price fixed by
             2030      the commission.
             2031          (b) A retail licensee may not sell [liquor] an alcoholic product at a discount price on
             2032      any date or at any time.
             2033          (2) (a) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at
             2034      less than the cost of the alcoholic product to the retail licensee.
             2035          (b) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at a
             2036      special or reduced price that encourages over consumption or intoxication.
             2037          (c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at a
             2038      special or reduced price for only certain hours of the retail licensee's business day, such as a
             2039      "happy hour."
             2040          (d) A retail licensee may not sell, offer for sale, or furnish more than one alcoholic



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             2041
     product for the price of a single alcoholic product.
             2042          (e) A retail licensee may not sell, offer for sale, or furnish an indefinite or unlimited
             2043      number of alcoholic products during a set period for a fixed price.
             2044          (f) A retail licensee may not engage in a promotion involving or offering a free
             2045      alcoholic product to the general public.
             2046          (3) As authorized by commission rule, a retail licensee may charge a patron for
             2047      providing:
             2048          (a) a service related to liquor purchased at the licensed premises; or
             2049          (b) wine service performed for wine carried in by a patron in accordance with Section
             2050      32B-5-307 .
             2051          Section 27. Section 32B-5-307 (Effective 07/01/11) is amended to read:
             2052           32B-5-307 (Effective 07/01/11). Bringing onto or removing alcoholic product
             2053      from premises.
             2054          (1) Except as provided in Subsection (3):
             2055          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
             2056      product for on-premise consumption.
             2057          (b) A retail licensee may not allow a person to:
             2058          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
             2059          (ii) consume an alcoholic product brought onto the licensed premises by a person other
             2060      than the retail licensee.
             2061          (2) Except as provided in Subsection (3):
             2062          (a) A person may not carry from a licensed premises of a retail licensee an open
             2063      [package] container that:
             2064          (i) is used primarily for drinking purposes; and
             2065          (ii) contains an alcoholic product.
             2066          (b) A retail licensee may not permit a patron to carry from the licensed premises an
             2067      open [package] container described in Subsection (2)(a).
             2068          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
             2069      on-premise consumption if:
             2070          (i) permitted by the retail licensee; and
             2071          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.



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             2072
         (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
             2073      patron shall deliver the bottled wine to a server or other representative of the retail licensee
             2074      upon entering the licensed premises.
             2075          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
             2076      wine service for a bottled wine carried onto the licensed premises in accordance with this
             2077      Subsection (3).
             2078          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
             2079      of wine purchased in the licensed premises, or brought onto the licensed premises in
             2080      accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
             2081          Section 28. Section 32B-5-309 (Effective 07/01/11) is amended to read:
             2082           32B-5-309 (Effective 07/01/11). Ceasing operation.
             2083          (1) [(a)] Except as provided in Subsection [(1)(h)] (8), a retail licensee may not close
             2084      or cease operation for a period longer than 240 hours, unless:
             2085          [(i)] (a) the retail licensee notifies the department in writing at least seven days before
             2086      the day on which the retail licensee closes or ceases operation; and
             2087          [(ii)] (b) the closure or cessation of operation is first approved by the department.
             2088          [(b)] (2) Notwithstanding Subsection (1)[(a)], in the case of emergency closure, a retail
             2089      licensee shall immediately notify the department by telephone.
             2090          [(c) (i)] (3) (a) The department may authorize a closure or cessation of operation of a
             2091      retail licensee for a period not to exceed 60 days.
             2092          [(ii)] (b) The department may extend the initial period an additional 30 days upon:
             2093          [(A)] (i) written request of the retail licensee; and
             2094          [(B)] (ii) a showing of good cause.
             2095          [(d)] (4) A closure or cessation of operation may not exceed a total of 90 days without
             2096      commission approval.
             2097          [(e)] (5) A notice required under this [Subsection (1)] section shall include:
             2098          [(i)] (a) the dates of closure or cessation of operation;
             2099          [(ii)] (b) the reason for the closure or cessation of operation; and
             2100          [(iii)] (c) the date on which the retail licensee will reopen or resume operation.
             2101          [(f)] (6) Failure of a retail licensee to provide notice and to obtain department approval
             2102      before closure or cessation of operation results in an automatic forfeiture of:



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             2103
         [(i)] (a) the retail license; and
             2104          [(ii)] (b) the unused portion of the retail license fee for the remainder of the retail
             2105      license year effective immediately.
             2106          [(g)] (7) Failure of a retail licensee to reopen or resume operation by the approved date
             2107      results in an automatic forfeiture of:
             2108          [(i)] (a) the retail license; and
             2109          [(ii)] (b) the unused portion of the retail license fee for the remainder of the retail
             2110      license year.
             2111          [(h) This Subsection (1)]
             2112          (8) This section does not apply to:
             2113          [(i)] (a) an on-premise beer retailer who is not a tavern; or
             2114          [(ii)] (b) an airport lounge licensee.
             2115          [(2) A retail licensee may not transfer a retail license from one location to another
             2116      location, without prior written approval of the commission.]
             2117          [(3) (a) A person, having been issued a retail license may not sell, transfer, assign,
             2118      exchange, barter, give, or attempt in any way to dispose of the retail license to another person
             2119      whether for monetary gain or not.]
             2120          [(b) A retail license has no monetary value for any type of disposition.]
             2121          Section 29. Section 32B-6-102 (Effective 07/01/11) is amended to read:
             2122           32B-6-102 (Effective 07/01/11). Definitions.
             2123          [As used in this chapter:]
             2124          [(1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2125      full-service restaurant licensee or limited-service restaurant licensee that:]
             2126          [(i) as of May 11, 2009, has:]
             2127          [(A) patron seating at the bar structure;]
             2128          [(B) a partition at one or more locations on the bar structure that is along:]
             2129          [(I) the width of the bar structure; or]
             2130          [(II) the length of the bar structure; and]
             2131          [(C) facilities for the dispensing or storage of an alcoholic product:]
             2132          [(I) on the portion of the bar structure that is separated by the partition described in
             2133      Subsection (1)(a)(i)(B); or]



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             2134
         [(II) if the partition is described in Subsection (1)(a)(i)(B)(II), adjacent to the bar
             2135      structure in a manner visible to a patron sitting at the bar structure;]
             2136          [(ii) is not operational as of May 12, 2009, if:]
             2137          [(A) a person applying for a full-service restaurant license or limited-service restaurant
             2138      license:]
             2139          [(I) has as of May 12, 2009, a building permit to construct the restaurant;]
             2140          [(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2141      defined by rule made by the commission; and]
             2142          [(III) is issued the full-service restaurant license or limited-service restaurant license by
             2143      no later than December 31, 2009; and]
             2144          [(B) once constructed, the licensed premises has a bar structure described in Subsection
             2145      (1)(a)(i);]
             2146          [(iii) as of May 12, 2009, has no patron seating at the bar structure; or]
             2147          [(iv) is not operational as of May 12, 2009, if:]
             2148          [(A) a person applying for a full-service restaurant license or limited-service restaurant
             2149      license:]
             2150          [(I) has as of May 12, 2009, a building permit to construct the restaurant;]
             2151          [(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2152      defined by rule made by the commission; and]
             2153          [(III) is issued a full-service restaurant license or limited-service restaurant license by
             2154      no later than December 31, 2009; and]
             2155          [(B) once constructed, the licensed premises has a bar structure with no patron seating.]
             2156          [(b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2157      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2158      grandfathered bar structure, as defined by rule made by the commission.]
             2159          [(c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2160      bar structure notwithstanding whether a restaurant undergoes a change of ownership.]
             2161          [(2) "Seating grandfathered bar structure" means a grandfathered bar structure
             2162      described in Subsection (1)(a)(i) or (ii).]
             2163          Reserved
             2164          Section 30. Section 32B-6-202 (Effective 07/01/11) is amended to read:



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             2165
          32B-6-202 (Effective 07/01/11). Definitions.
             2166          [Reserved]
             2167          As used in this part:
             2168          (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2169      full-service restaurant licensee that:
             2170          (i) as of May 11, 2009, has:
             2171          (A) patron seating at the bar structure;
             2172          (B) a partition at one or more locations on the bar structure that is along:
             2173          (I) the width of the bar structure; or
             2174          (II) the length of the bar structure; and
             2175          (C) facilities for the dispensing or storage of an alcoholic product:
             2176          (I) on the portion of the bar structure that is separated by the partition described in
             2177      Subsection (1)(a)(i)(B); or
             2178          (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
             2179      structure in a manner visible to a patron sitting at the bar structure;
             2180          (ii) is not operational as of May 12, 2009, if:
             2181          (A) a person applying for a full-service restaurant license:
             2182          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2183          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2184      defined by rule made by the commission; and
             2185          (III) is issued the full-service restaurant license by no later than December 31, 2009;
             2186      and
             2187          (B) once constructed, the licensed premises has a bar structure described in Subsection
             2188      (1)(a)(i);
             2189          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
             2190          (iv) is not operational as of May 12, 2009, if:
             2191          (A) a person applying for a full-service restaurant license:
             2192          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2193          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2194      defined by rule made by the commission; and
             2195          (III) is issued a full-service restaurant license by no later than December 31, 2009; and



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             2196
         (B) once constructed, the licensed premises has a bar structure with no patron seating.
             2197          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2198      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2199      grandfathered bar structure, as defined by rule made by the commission.
             2200          (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2201      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             2202          (2) "Seating grandfathered bar structure" means:
             2203          (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
             2204          (b) a bar structure grandfathered under Section 32B-6-409 .
             2205          Section 31. Section 32B-6-203 (Effective 07/01/11) is amended to read:
             2206           32B-6-203 (Effective 07/01/11). Commission's power to issue full-service
             2207      restaurant license.
             2208          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2209      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             2210      full-service restaurant license from the commission in accordance with this part.
             2211          (2) The commission may issue a full-service restaurant license to establish full-service
             2212      restaurant licensed premises at places and in numbers the commission considers proper for the
             2213      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             2214      operated as a full-service restaurant.
             2215          (3) Subject to Section 32B-1-201 :
             2216          [(3)] (a) The commission may not issue a total number of full-service restaurant
             2217      licenses that at any time exceeds the number determined by dividing the population of the state
             2218      by [5,200] 4,925.
             2219          (b) The commission may issue a seasonal full-service restaurant license in accordance
             2220      with Section 32B-5-206 .
             2221          (c) (i) If the location, design, and construction of a hotel may require more than one
             2222      full-service restaurant sales location within the hotel to serve the public convenience, the
             2223      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             2224      many as three full-service restaurant locations within the hotel under one full-service restaurant
             2225      license if:
             2226          (A) the hotel has a minimum of 150 guest rooms; and



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             2227
         (B) the locations under the full-service restaurant license are:
             2228          (I) within the same hotel; and
             2229          (II) on premises that are managed or operated, and owned or leased, by the full-service
             2230      restaurant licensee.
             2231          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             2232      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             2233          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             2234      full-service restaurant license for premises that do not meet the proximity requirements of
             2235      Section 32B-1-202 .
             2236          (b) With respect to the premises of a full-service restaurant license issued by the
             2237      commission that undergoes a change of ownership, the commission shall waive or vary the
             2238      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             2239      full-service restaurant license to the new owner of the premises if:
             2240          (i) when a full-service restaurant license was issued to a previous owner, the premises
             2241      met the proximity requirements of Subsection 32B-1-202 (2);
             2242          (ii) the premises has had a full-service restaurant license at all times since the
             2243      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             2244      and
             2245          (iii) the community location was located within the proximity requirements of
             2246      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             2247      Subsection (4)(b)(i) was issued.
             2248          Section 32. Section 32B-6-204 (Effective 07/01/11) is amended to read:
             2249           32B-6-204 (Effective 07/01/11). Specific licensing requirements for full-service
             2250      restaurant license.
             2251          (1) To obtain a full-service restaurant license a person shall comply with Chapter 5,
             2252      Part 2, Retail Licensing Process.
             2253          (2) (a) A full-service restaurant license expires on October 31 of each year.
             2254          (b) To renew a person's full-service restaurant license, a person shall comply with the
             2255      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2256      September 30.
             2257          (3) (a) The nonrefundable application fee for a full-service restaurant license is [$250]



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             2258
     $300.
             2259          (b) The initial license fee for a full-service restaurant license is [$1,750] $2,000.
             2260          (c) The renewal fee for a full-service restaurant license is in the following amount:
             2261      Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             2262          under $5,000                            [$750] $850
             2263          equals or exceeds $5,000 but less than $10,000        [$900] $1,050
             2264          equals or exceeds $10,000 but less than $25,000        [$1,250] $1,500
             2265          equals or exceeds $25,000                    [$1,500] $1,750
             2266          (4) The bond amount required for a full-service restaurant license is the penal sum of
             2267      $10,000.
             2268          Section 33. Section 32B-6-205 (Effective 07/01/11) is amended to read:
             2269           32B-6-205 (Effective 07/01/11). Specific operational requirements for a
             2270      full-service restaurant license.
             2271          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2272      Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
             2273      shall comply with this section.
             2274          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2275      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2276          (i) a full-service restaurant licensee;
             2277          (ii) individual staff of a full-service restaurant licensee; or
             2278          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
             2279      licensee.
             2280          (2) In addition to complying with Subsection 32B-5-301 (3), a full-service restaurant
             2281      licensee shall display in a prominent place in the restaurant a list of the types and brand names
             2282      of liquor being furnished through the full-service restaurant licensee's calibrated metered
             2283      dispensing system.
             2284          (3) In addition to complying with Section 32B-5-303 , a full-service restaurant licensee
             2285      shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2286          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
             2287      licensee's premises shall make a written beverage tab for each table or group that orders or
             2288      consumes an alcoholic product on the premises.



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             2289
         (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2290      alcoholic product ordered or consumed.
             2291          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2292      of employment as a server with a full-service restaurant licensee.
             2293          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
             2294      the licensed premises on any day during the period that:
             2295          (i) begins at midnight; and
             2296          (ii) ends at [11:59] 11:29 a.m.
             2297          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
             2298      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             2299      except that a full-service restaurant licensee may not sell, offer for sale, or furnish beer before
             2300      11:30 a.m. on any day.
             2301          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
             2302      business from the sale of food, which does not include:
             2303          (a) mix for an alcoholic product; or
             2304          (b) a service charge.
             2305          (8) (a) A full-service restaurant may not sell, offer for sale, or furnish an alcoholic
             2306      product except in connection with an order for food prepared, sold, and furnished at the
             2307      licensed premises.
             2308          (b) A full-service restaurant shall maintain on the licensed premises adequate culinary
             2309      facilities for food preparation and dining accommodations.
             2310          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2311      more than two alcoholic products of any kind at a time before the patron.
             2312          (b) A patron may not have more than one spirituous liquor drink at a time before the
             2313      patron.
             2314          (c) An individual portion of wine is considered to be one alcoholic product under
             2315      Subsection (9)(a).
             2316          (10) A patron may consume an alcoholic product only:
             2317          (a) at:
             2318          (i) the patron's table;
             2319          (ii) a counter; or



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             2320
         (iii) a seating grandfathered bar structure; and
             2321          (b) where food is served.
             2322          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             2323      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2324      structure that is not a seating grandfathered bar structure.
             2325          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2326      may:
             2327          (i) sit;
             2328          (ii) be furnished an alcoholic product; and
             2329          (iii) consume an alcoholic product.
             2330          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2331      full-service restaurant licensee may not permit a minor to, and a minor may not:
             2332          (i) sit; or
             2333          (ii) consume food or beverages.
             2334          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2335      by a full-service restaurant licensee:
             2336          (A) as provided in Subsection 32B-5-308 (2); or
             2337          (B) to perform maintenance and cleaning services during an hour when the full-service
             2338      restaurant licensee is not open for business.
             2339          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2340      remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
             2341      premises in which the minor is permitted to be.
             2342          (12) Except as provided in Subsection 32B-5-307 (3), a full-service restaurant licensee
             2343      may dispense an alcoholic product only if:
             2344          (a) the alcoholic product is dispensed from:
             2345          (i) a grandfathered bar structure;
             2346          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2347      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2348      12, 2009; or
             2349          (iii) an area that is:
             2350          (A) separated from an area for the consumption of food by a patron by a solid,



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             2351
     [opaque] translucent, permanent structural barrier such that the facilities for the storage or
             2352      dispensing of an alcoholic product are:
             2353          (I) not readily visible to a patron; and
             2354          (II) not accessible by a patron; and
             2355          (B) apart from an area used:
             2356          (I) for dining;
             2357          (II) for staging; or
             2358          (III) as a lobby or waiting area;
             2359          (b) the full-service restaurant licensee uses an alcoholic product that is:
             2360          (i) stored in an area described in Subsection (12)(a); or
             2361          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2362          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2363      [package] container;
             2364          (B) the unopened [package] container is taken to an area described in Subsection
             2365      (12)(a) before it is opened; and
             2366          (C) once opened, the [package] container is stored in an area described in Subsection
             2367      (12)(a); and
             2368          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2369      area described in Subsection (12)(a).
             2370          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
             2371      charge or fee made in connection with the sale, service, or consumption of liquor including:
             2372          (a) a set-up charge;
             2373          (b) a service charge; or
             2374          (c) a chilling fee.
             2375          Section 34. Section 32B-6-302 (Effective 07/01/11) is amended to read:
             2376           32B-6-302 (Effective 07/01/11). Definitions.
             2377          [For purposes of this part, wine]
             2378          As used in this part:
             2379          (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2380      limited-service restaurant licensee that:
             2381          (i) as of May 11, 2009, has:



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             2382
         (A) patron seating at the bar structure;
             2383          (B) a partition at one or more locations on the bar structure that is along:
             2384          (I) the width of the bar structure; or
             2385          (II) the length of the bar structure; and
             2386          (C) facilities for the dispensing or storage of an alcoholic product:
             2387          (I) on the portion of the bar structure that is separated by the partition described in
             2388      Subsection (1)(a)(i)(B); or
             2389          (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
             2390      structure in a manner visible to a patron sitting at the bar structure;
             2391          (ii) is not operational as of May 12, 2009, if:
             2392          (A) a person applying for a limited-service restaurant license:
             2393          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2394          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2395      defined by rule made by the commission; and
             2396          (III) is issued the limited-service restaurant license by no later than December 31,
             2397      2009; and
             2398          (B) once constructed, the licensed premises has a bar structure described in Subsection
             2399      (1)(a)(i);
             2400          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
             2401          (iv) is not operational as of May 12, 2009, if:
             2402          (A) a person applying for a limited-service restaurant license:
             2403          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2404          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2405      defined by rule made by the commission; and
             2406          (III) is issued a limited-service restaurant license by no later than December 31, 2009;
             2407      and
             2408          (B) once constructed, the licensed premises has a bar structure with no patron seating.
             2409          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2410      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2411      grandfathered bar structure, as defined by rule made by the commission.
             2412          (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered



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             2413
     bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             2414          (2) "Seating grandfathered bar structure" means:
             2415          (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
             2416          (b) a bar structure grandfathered under Section 32B-6-409 .
             2417          (3) "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211
             2418      and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner of
             2419      wine containing not less than 7% and not more than 24% of alcohol by volume:
             2420          [(1)] (a) sparkling and carbonated wine;
             2421          [(2)] (b) wine made from condensed grape must;
             2422          [(3)] (c) wine made from other agricultural products than the juice of sound, ripe
             2423      grapes;
             2424          [(4)] (d) imitation wine;
             2425          [(5)] (e) compounds sold as wine;
             2426          [(6)] (f) vermouth;
             2427          [(7)] (g) cider;
             2428          [(8)] (h) perry; and
             2429          [(9)] (i) sake.
             2430          Section 35. Section 32B-6-303 (Effective 07/01/11) is amended to read:
             2431           32B-6-303 (Effective 07/01/11). Commission's power to issue limited-service
             2432      restaurant license.
             2433          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2434      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
             2435      obtain a limited-service restaurant license from the commission in accordance with this part.
             2436          (2) (a) The commission may issue a limited-service restaurant license to establish
             2437      limited-service restaurant licensed premises at places and in numbers the commission considers
             2438      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             2439      beer on premises operated as a limited-service restaurant.
             2440          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             2441      following on the licensed premises of a limited-service restaurant licensee:
             2442          (i) spirituous liquor; or
             2443          (ii) a flavored malt beverage.



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             2444
         (3) Subject to Section 32B-1-201 :
             2445          [(3)] (a) The commission may not issue a total number of limited-service restaurant
             2446      licenses that at any time exceeds the number determined by dividing the population of the state
             2447      by [9,300] 8,373.
             2448          (b) The commission may issue a seasonal limited-service restaurant license in
             2449      accordance with Section 32B-5-206 .
             2450          (c) (i) If the location, design, and construction of a hotel may require more than one
             2451      limited-service restaurant sales location within the hotel to serve the public convenience, the
             2452      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             2453      limited-service restaurant locations within the hotel under one limited-service restaurant license
             2454      if:
             2455          (A) the hotel has a minimum of 150 guest rooms; and
             2456          (B) the locations under the limited-service restaurant license are:
             2457          (I) within the same hotel; and
             2458          (II) on premises that are managed or operated, and owned or leased by the
             2459      limited-service restaurant licensee.
             2460          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             2461      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             2462      furnished.
             2463          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             2464      limited-service restaurant license for premises that do not meet the proximity requirements of
             2465      Section 32B-1-202 .
             2466          (b) With respect to the premises of a limited-service restaurant license issued by the
             2467      commission that undergoes a change of ownership, the commission shall waive or vary the
             2468      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             2469      limited-service restaurant license to the new owner of the premises if:
             2470          (i) when a limited-service restaurant license was issued to a previous owner, the
             2471      premises met the proximity requirements of Subsection 32B-1-202 (2);
             2472          (ii) the premises has had a limited-service restaurant license at all times since the
             2473      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             2474      variance; and



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             2475
         (iii) the community location was located within the proximity requirements of
             2476      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             2477      described in Subsection (4)(b)(i) was issued.
             2478          Section 36. Section 32B-6-304 (Effective 07/01/11) is amended to read:
             2479           32B-6-304 (Effective 07/01/11). Specific licensing requirements for limited-service
             2480      restaurant license.
             2481          (1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
             2482      Part 2, Retail Licensing Process.
             2483          (2) (a) A limited-service restaurant license expires on October 31 of each year.
             2484          (b) To renew a person's limited-service restaurant license, a person shall comply with
             2485      the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2486      September 30.
             2487          (3) (a) The nonrefundable application fee for a limited-service restaurant license is
             2488      [$250] $300.
             2489          (b) The initial license fee for a limited-service restaurant license is [$500] $750.
             2490          (c) The renewal fee for a limited-service restaurant license is [$300] $550.
             2491          (4) The bond amount required for a limited-service restaurant license is the penal sum
             2492      of $5,000.
             2493          Section 37. Section 32B-6-305 (Effective 07/01/11) is amended to read:
             2494           32B-6-305 (Effective 07/01/11). Specific operational requirements for a
             2495      limited-service restaurant license.
             2496          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2497      Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
             2498      licensee shall comply with this section.
             2499          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2500      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2501          (i) a limited-service restaurant licensee;
             2502          (ii) individual staff of a limited-service restaurant licensee; or
             2503          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
             2504      licensee.
             2505          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer



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             2506
     for sale, furnish, or allow consumption of:
             2507          (i) spirituous liquor; or
             2508          (ii) a flavored malt beverage.
             2509          (b) A product listed in Subsection (2)(a) may not be on the premises of a
             2510      limited-service restaurant licensee except for use:
             2511          (i) as a flavoring on a dessert; and
             2512          (ii) in the preparation of a flaming food dish, drink, or dessert.
             2513          (3) In addition to complying with Section 32B-5-303 , a limited-service restaurant
             2514      licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2515          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
             2516      licensee's premises shall make a written beverage tab for each table or group that orders or
             2517      consumes an alcoholic product on the premises.
             2518          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2519      alcoholic product ordered or consumed.
             2520          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2521      of employment as a server with a limited-service restaurant licensee.
             2522          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
             2523      or heavy beer at the licensed premises on any day during the period that:
             2524          (i) begins at midnight; and
             2525          (ii) ends at [11:59] 11:29 a.m.
             2526          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
             2527      the hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             2528      except that a limited-service restaurant licensee may not sell, offer for sale, or furnish beer
             2529      before 11:30 a.m. on any day.
             2530          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
             2531      restaurant business from the sale of food, which does not include a service charge.
             2532          (8) (a) A limited-service restaurant may not sell, offer for sale, or furnish an alcoholic
             2533      product except in connection with an order for food prepared, sold, and furnished at the
             2534      licensed premises.
             2535          (b) A limited-service restaurant shall maintain on the licensed premises adequate
             2536      culinary facilities for food preparation and dining accommodations.



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             2537
         (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2538      more than two alcoholic products of any kind at a time before the patron.
             2539          (b) An individual portion of wine is considered to be one alcoholic product under
             2540      Subsection (9)(a).
             2541          (10) A patron may consume an alcoholic product only:
             2542          (a) at:
             2543          (i) the patron's table;
             2544          (ii) a counter; or
             2545          (iii) a seating grandfathered bar structure; and
             2546          (b) where food is served.
             2547          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             2548      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2549      structure that is not a seating grandfathered bar structure.
             2550          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2551      may:
             2552          (i) sit;
             2553          (ii) be furnished an alcoholic product; and
             2554          (iii) consume an alcoholic product.
             2555          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2556      limited-service restaurant licensee may not permit a minor to, and a minor may not:
             2557          (i) sit; or
             2558          (ii) consume food or beverages.
             2559          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2560      by a limited-service restaurant licensee:
             2561          (A) as provided in Subsection 32B-5-308 (2); or
             2562          (B) to perform maintenance and cleaning services during an hour when the
             2563      limited-service restaurant licensee is not open for business.
             2564          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2565      remaining or sitting at the bar structure en route to an area of a limited-service restaurant
             2566      licensee's premises in which the minor is permitted to be.
             2567          (12) Except as provided in Subsection 32B-5-307 (3), a limited-service restaurant



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             2568
     licensee may dispense an alcoholic product only if:
             2569          (a) the alcoholic product is dispensed from:
             2570          (i) a grandfathered bar structure;
             2571          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2572      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2573      12, 2009; or
             2574          (iii) an area that is:
             2575          (A) separated from an area for the consumption of food by a patron by a solid,
             2576      [opaque] translucent, permanent structural barrier such that the facilities for the storage or
             2577      dispensing of an alcoholic product are:
             2578          (I) not readily visible to a patron; and
             2579          (II) not accessible by a patron; and
             2580          (B) apart from an area used:
             2581          (I) for dining;
             2582          (II) for staging; or
             2583          (III) as a lobby or waiting area;
             2584          (b) the limited-service restaurant licensee uses an alcoholic product that is:
             2585          (i) stored in an area described in Subsection (12)(a); or
             2586          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2587          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2588      [package] container;
             2589          (B) the unopened [package] container is taken to an area described in Subsection
             2590      (12)(a) before it is opened; and
             2591          (C) once opened, the [package] container is stored in an area described in Subsection
             2592      (12)(a); and
             2593          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2594      area described in Subsection (12)(a).
             2595          (13) A limited-service restaurant licensee may state in a food or alcoholic product
             2596      menu a charge or fee made in connection with the sale, service, or consumption of wine or
             2597      heavy beer including:
             2598          (a) a set-up charge;



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             2599
         (b) a service charge; or
             2600          (c) a chilling fee.
             2601          Section 38. Section 32B-6-403 (Effective 07/01/11) is amended to read:
             2602           32B-6-403 (Effective 07/01/11). Commission's power to issue club license.
             2603          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2604      an alcoholic product on its premises as a club licensee, the person shall first obtain a club
             2605      license from the commission in accordance with this part.
             2606          (2) The commission may issue a club license to establish club licensed premises at
             2607      places and in numbers the commission considers proper for the storage, sale, offer for sale,
             2608      furnishing, and consumption of an alcoholic product on premises operated by a club licensee.
             2609          (3) Subject to Section 32B-1-201 :
             2610          [(3)] (a) The commission may not issue a total number of club licenses that at any time
             2611      exceeds the number determined by dividing the population of the state by 7,850.
             2612          (b) The commission may issue a seasonal club license in accordance with Section
             2613      32B-5-206 to:
             2614          (i) a dining club licensee; or
             2615          (ii) a social club licensee.
             2616          (c) (i) If the location, design, and construction of a hotel may require more than one
             2617      dining club license or social club license location within the hotel to serve the public
             2618      convenience, the commission may authorize as many as three club license locations within the
             2619      hotel under one club license if:
             2620          (A) the hotel has a minimum of 150 guest rooms; and
             2621          (B) all locations under the club license are:
             2622          (I) within the same hotel; and
             2623          (II) on premises that are managed or operated, and owned or leased, by the club
             2624      licensee.
             2625          (ii) A facility other than a hotel shall have a separate club license for each club license
             2626      location where an alcoholic product is sold, offered for sale, or furnished.
             2627          Section 39. Section 32B-6-404 (Effective 07/01/11) is amended to read:
             2628           32B-6-404 (Effective 07/01/11). Types of club license.
             2629          (1) To obtain an equity club license, in addition to meeting the other requirements of



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             2630
     this part, a person shall:
             2631          (a) whether incorporated or unincorporated:
             2632          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
             2633      purpose;
             2634          (ii) have members;
             2635          (iii) limit access to its licensed premises to a member or a guest of the member; and
             2636          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
             2637      to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
             2638          (b) own, maintain, or operate a substantial recreational facility in conjunction with a
             2639      club house such as:
             2640          (i) a golf course; or
             2641          (ii) a tennis facility;
             2642          (c) have at least 50% of the total membership having:
             2643          (i) full voting rights; and
             2644          (ii) an equal share of the equity of the club; and
             2645          (d) if there is more than one class of membership, have at least one class of
             2646      membership that entitles each member in that class to:
             2647          (i) full voting rights; and
             2648          (ii) an equal share of the equity of the club.
             2649          (2) To obtain a fraternal club license, in addition to meeting the other requirements of
             2650      this part, a person shall:
             2651          (a) whether incorporated or unincorporated:
             2652          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
             2653      purpose;
             2654          (ii) have members;
             2655          (iii) limit access to its licensed premises to a member or a guest of the member; and
             2656          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
             2657      to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
             2658          (b) have no capital stock;
             2659          (c) exist solely for:
             2660          (i) the benefit of its members and their beneficiaries; and



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             2661
         (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
             2662      patriotic, or religious purpose for the benefit of its members or the public, carried on through
             2663      voluntary activity of its members in their local lodges;
             2664          (d) have a representative form of government;
             2665          (e) have a lodge system in which:
             2666          (i) there is a supreme governing body;
             2667          (ii) subordinate to the supreme governing body are local lodges, however designated,
             2668      into which individuals are admitted as members in accordance with the laws of the fraternal;
             2669          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
             2670      least monthly; and
             2671          (iv) the local lodges regularly engage in one or more programs involving member
             2672      participation to implement the purposes of Subsection (2)(c); and
             2673          (f) own or lease a building or space in a building used for lodge activities.
             2674          (3) To obtain a dining club license, in addition to meeting the other requirements of
             2675      this part, a person shall:
             2676          (a) maintain at least [50%] the following percentages of its total club business from the
             2677      sale of food, not including[: (i)] mix for alcoholic products[;], or [(ii)] service charges[; and]:
             2678          (i) for a dining club license that is issued an original license on or after July 1, 2011,
             2679      60%;
             2680          (ii) for a dining club license that is issued on or before June 30, 2011:
             2681          (A) 50% on or before June 30, 2012; and
             2682          (B) 60% on and after July 1, 2012; and
             2683          (b) obtain a determination by the commission that the person will operate as a dining
             2684      club licensee, as part of which the commission may consider:
             2685          (i) the square footage and seating capacity of the premises;
             2686          (ii) what portion of the square footage and seating capacity will be used for a dining
             2687      area in comparison to the portion that will be used as a lounge or bar area;
             2688          (iii) whether full meals including appetizers, main courses, and desserts are served;
             2689          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
             2690      full meals, except a person who is located on the premise of a hotel or resort facility may use
             2691      the culinary facilities of the hotel or resort facility;



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             2692
         (v) whether the entertainment provided at the club is suitable for minors; and
             2693          (vi) the club management's ability to manage and operate a dining club license
             2694      including:
             2695          (A) management experience;
             2696          (B) past dining club licensee or restaurant management experience; and
             2697          (C) the type of management scheme used by the dining club license.
             2698          (4) To obtain a social club license, a person is required to meet the requirements of this
             2699      part except those listed in Subsection (1), (2), or (3).
             2700          (5) (a) At the time that the commission issues a club license, the commission shall
             2701      designate the type of club license for which the person qualifies.
             2702          (b) If requested by a club licensee, the commission may approve a change in the type of
             2703      club license in accordance with rules made by the commission.
             2704          (6) To the extent not prohibited by law, this part does not prevent a dining club
             2705      licensee or social club licensee from restricting access to the club's licensed premises on the
             2706      basis of an individual:
             2707          (a) paying a fee; or
             2708          (b) agreeing to being on a list of individuals who have access to the club's licensed
             2709      premises.
             2710          Section 40. Section 32B-6-405 (Effective 07/01/11) is amended to read:
             2711           32B-6-405 (Effective 07/01/11). Specific licensing requirements for club license.
             2712          (1) To obtain a club license, in addition to complying with Chapter 5, Part 2, Retail
             2713      Licensing Process, a person shall submit with the written application:
             2714          (a) (i) a statement as to whether the person is seeking to qualify as:
             2715          (A) an equity club licensee;
             2716          (B) a fraternal club licensee;
             2717          (C) a dining club licensee; or
             2718          (D) a social club licensee; and
             2719          (ii) evidence that the person meets the requirements for the type of club license for
             2720      which the person is applying;
             2721          (b) evidence that the person operates club premises where a variety of food is prepared
             2722      and served in connection with dining accommodations; and



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Senate 3rd Reading Amendments 3-4-2011 rd/po
             2723
         (c) if the person is applying for an equity club license or fraternal club license, a copy
             2724      of the club's bylaws or house rules, and an amendment to those records.
             2725          (2) The commission may refuse to issue a club license to a person for an equity club
             2726      license or fraternal club license if the commission determines that a provision of the person's
             2727      bylaws or house rules, or amendments to those records is not:
             2728          (a) reasonable; and
             2729          (b) consistent with:
             2730          (i) the declared nature and purpose of the club licensee; and
             2731          (ii) the purposes of this part.
             2732          (3) (a) A club license expires on June 30 of each year.
             2733          (b) To renew a club license, a person shall comply with the requirements of Chapter 5,
             2734      Part 2, Retail Licensing Process, by no later than May 31.
             2735          (4) (a) The nonrefundable application fee for a club license is [$250] $300.
             2736          (b) The initial license fee for a club license is [$2,500] $2,750.
             2737          (c) The renewal fee for a club license is [$1,600] $2,000.
             2738          (5) The bond amount required for a S. [ full-service restaurant ] club .S license is the
             2738a      penal sum of
             2739      $10,000.
             2740          Section 41. Section 32B-6-406 (Effective 07/01/11) is amended to read:
             2741           32B-6-406 (Effective 07/01/11). Specific operational requirements for a club
             2742      license.
             2743          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2744      Requirements, a club licensee and staff of the club licensee shall comply with this section.
             2745          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2746      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2747          (i) a club licensee;
             2748          (ii) individual staff of a club licensee; or
             2749          (iii) both a club licensee and staff of the club licensee.
             2750          (2) In addition to complying with Subsection 32B-5-301 (3), a club licensee shall
             2751      display in a prominent place in the club licensed premises a list of the types and brand names of
             2752      liquor being furnished through the club licensee's calibrated metered dispensing system.
             2753          (3) (a) In addition to complying with Section 32B-5-302 , a club licensee shall maintain



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             2754
     for a minimum of three years:
             2755          (i) a record required by Section 32B-5-302 ; and
             2756          (ii) a record maintained or used by the club licensee, as the department requires.
             2757          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
             2758      accordance with this Subsection (3).
             2759          (c) The department shall audit the records of a club licensee at least once annually.
             2760          (4) (a) A club licensee may not sell, offer for sale, or furnish liquor on the licensed
             2761      premises on any day during a period that:
             2762          (i) begins at 1 a.m.; and
             2763          (ii) ends at 9:59 a.m.
             2764          (b) A club licensee may sell, offer for sale, or furnish beer during the hours specified in
             2765      Part 7, On-premise Beer Retailer License, for an on-premise beer retailer license.
             2766          (c) (i) Notwithstanding Subsections (4)(a) and (b), a club licensee shall keep its
             2767      licensed premises open for one hour after the club licensee ceases the sale and furnishing of an
             2768      alcoholic product during which time a patron of the club licensee may finish consuming:
             2769          (A) a single drink containing spirituous liquor;
             2770          (B) a single serving of wine not exceeding five ounces;
             2771          (C) a single serving of heavy beer;
             2772          (D) a single serving of beer not exceeding 26 ounces; or
             2773          (E) a single serving of a flavored malt beverage.
             2774          (ii) A club licensee is not required to remain open:
             2775          (A) after all patrons have vacated the premises; or
             2776          (B) during an emergency.
             2777          [(d) A club licensee may not allow a patron to remain on the licensed premises of the
             2778      club licensee to consume an alcoholic product on the licensed premises during a period that:]
             2779          [(i) begins at 2 a.m.; and]
             2780          [(ii) ends at 9:59 a.m.]
             2781          (5) (a) A minor may not be admitted into, use, or be in:
             2782          (i) a lounge or bar area of the premises of:
             2783          (A) an equity club licensee;
             2784          (B) a fraternal club licensee; or



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             2785
         (C) a dining club licensee; or
             2786          (ii) the premises of:
             2787          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
             2788      or older; or
             2789          (B) a social club licensee, except to the extent provided for under Section 32B-6-406.1 .
             2790          (b) Notwithstanding Section 32B-5-308 , a club licensee may not employ a minor to:
             2791          (i) work in a lounge or bar area of an equity club licensee, fraternal club licensee, or
             2792      dining club licensee; or
             2793          (ii) handle an alcoholic product.
             2794          (c) Notwithstanding Section 32B-5-308 , a minor may not be employed on the licensed
             2795      premises of a social club licensee.
             2796          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
             2797      more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a
             2798      club licensee.
             2799          (6) A club licensee shall have food available at all times when an alcoholic product is
             2800      sold, offered for sale, furnished, or consumed on the licensed premises.
             2801          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
             2802      more than two alcoholic products of any kind at a time before the patron.
             2803          (b) A patron may not have two spirituous liquor drinks before the club licensee patron
             2804      if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
             2805      spirituous liquor drink.
             2806          (c) An individual portion of wine is considered to be one alcoholic product under
             2807      Subsection (7)(a).
             2808          (8) A club licensee shall have available on the premises for a patron to review at the
             2809      time that the patron requests it, a written alcoholic product price list or a menu containing the
             2810      price of an alcoholic product sold, offered for sale, or furnished by the club licensee including:
             2811          (a) a set-up charge;
             2812          (b) a service charge; or
             2813          (c) a chilling fee.
             2814          (9) Subject to Section 32B-5-309 , a club licensee may not temporarily rent or
             2815      otherwise temporarily lease its premises to a person unless:



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             2816
         (a) the person to whom the club licensee rents or leases the premises agrees in writing
             2817      to comply with this title as if the person is the club licensee, except for a requirement related to
             2818      making or maintaining a record; and
             2819          (b) the club licensee takes reasonable steps to ensure that the person complies with this
             2820      section as provided in Subsection (9)(a).
             2821          (10) If a club licensee is an equity club licensee or fraternal club licensee, the club
             2822      licensee shall comply with Section 32B-6-407 .
             2823          (11) If a club licensee is a dining club licensee or social club licensee, the club licensee
             2824      shall comply with Section 32B-1-407 .
             2825          (12) (a) A club licensee shall own or lease premises suitable for the club licensee's
             2826      activities.
             2827          (b) A club licensee may not maintain licensed premises in a manner that barricades or
             2828      conceals the club licensee's operation.
             2829          Section 42. Section 32B-6-409 is enacted to read:
             2830          32B-6-409. Conversion from dining club license to different type of retail license.
             2831          (1) In accordance with this section, a dining club licensee may convert its dining club
             2832      license to a different type of retail license, including a different type of club license during the
             2833      time period:
             2834          (a) beginning on July 1, 2011; and
             2835          (b) ending on June 30, 2013.
             2836          (2) A dining club licensee may convert its dining license only to a retail license for
             2837      which the dining club licensee qualifies.
             2838          (3) The commission shall provide a procedure for a dining club to convert to a different
             2839      type of retail license as provided in this section by rule made in accordance with Title 63G,
             2840      Chapter 3, Utah Administrative Rulemaking Act.
             2841          (4) After a dining club license is converted to another type of retail license, the retail
             2842      licensee shall operate under the provisions relevant to the type of retail license held by the retail
             2843      licensee, except that, in accordance with Section 32B-1-201 , the retail license is not considered
             2844      in determining the total number of licenses available for that type of retail license.
             2845          (5) If a dining club license is converted to full-service restaurant license,
             2846      limited-service restaurant license, or beer-only restaurant license, the bar structure of the dining



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             2847
     club is considered:
             2848          (a) a seating grandfathered bar structure for purposes of a full-service restaurant license
             2849      or a limited-service restaurant license; or
             2850          (b) a grandfathered bar structure for purposes of a beer-only restaurant license.
             2851          Section 43. Section 32B-6-502 (Effective 07/01/11) is amended to read:
             2852           32B-6-502 (Effective 07/01/11). Definitions.
             2853          [Reserved]
             2854          As used in this chapter, "total passengers" means the number of total passengers in a
             2855      calendar year that is reported in the most current comprehensive annual financial report for the
             2856      airport in which an airport lounge is located.
             2857          Section 44. Section 32B-6-503 (Effective 07/01/11) is amended to read:
             2858           32B-6-503 (Effective 07/01/11). Commission's power to issue airport lounge
             2859      license.
             2860          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2861      an alcoholic product on its premises as an airport lounge licensee, the person shall first obtain
             2862      an airport lounge license from the commission in accordance with this part.
             2863          (2) The commission may issue an airport lounge license to establish airport lounge
             2864      licensed premises beyond the security point at an international airport and in the numbers the
             2865      commission considers proper for the storage, sale, offer for sale, furnishing, and consumption
             2866      of an alcoholic product on licensed premises operated as an airport lounge.
             2867          (3) (a) The commission may not issue a total number of airport lounge licenses for an
             2868      international airport that at any time exceed one [lounge per terminal plus one lounge per
             2869      concourse located beyond the security point at that international airport] airport lounge license
             2870      for each 2,500,000 of total passengers at the international airport.
             2871          (b) Notwithstanding Subsection (3)(a), the commission may not reduce the total
             2872      number of airport lounge licenses unless:
             2873          (i) the commission determines that the number of total passengers is reduced by more
             2874      than 25% from the last day on which the commission determined the total number of airport
             2875      lounge licenses allowed for that international airport under this Subsection (3); and
             2876          (ii) the reduction can be accomplished without the international airport terminating a
             2877      lease for an airport lounge before:



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             2878
         (A) the expiration of the lease;
             2879          (B) the airport lounge undergoes a change of ownership; or
             2880          (C) the airport lounge ceases operations.
             2881          Section 45. Section 32B-6-504 (Effective 07/01/11) is amended to read:
             2882           32B-6-504 (Effective 07/01/11). Specific licensing requirements for airport lounge
             2883      license.
             2884          (1) To obtain an airport lounge license, in addition to complying with Chapter 5, Part
             2885      2, Retail Licensing Process, a person shall submit with the written application:
             2886          (a) both the written consent of the local authority and the written consent of the airport
             2887      authority; and
             2888          (b) a copy of the sign proposed to be used by the airport lounge licensee on its licensed
             2889      premises to inform the public that alcoholic products are sold and consumed on the licensed
             2890      premises.
             2891          (2) (a) An airport lounge license expires on October 31 of each year.
             2892          (b) To renew a person's airport lounge license, a person shall comply with the renewal
             2893      requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             2894          (3) (a) The nonrefundable application fee for an airport lounge license is [$250] $300.
             2895          (b) The initial license fee for an airport lounge license is [$7,000] $8,000.
             2896          (c) The renewal fee for an airport lounge license is [$5,000] $6,000.
             2897          (4) The bond amount required for an airport lounge license is the penal sum of
             2898      $10,000.
             2899          (5) An airport lounge license is not subject to the proximity requirements of Section
             2900      32B-1-202 .
             2901          Section 46. Section 32B-6-603 (Effective 07/01/11) is amended to read:
             2902           32B-6-603 (Effective 07/01/11). Commission's power to issue on-premise banquet
             2903      license -- Contracts as host.
             2904          (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
             2905      of an alcoholic product in connection with the person's banquet and room service activities at
             2906      one of the following, the person shall first obtain an on-premise banquet license in accordance
             2907      with this part:
             2908          (i) a hotel;



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             2909
         (ii) a resort facility;
             2910          (iii) a sports center; or
             2911          (iv) a convention center.
             2912          (b) This part does not prohibit an alcoholic product on the premises of a person listed
             2913      in Subsection (1)(a) to the extent otherwise permitted by this title.
             2914          (c) This section does not prohibit a person who applies for an on-premise banquet
             2915      license to also apply for a package agency if otherwise qualified.
             2916          (2) The commission may issue an on-premise banquet license to establish on-premise
             2917      banquet licensees in the numbers the commission considers proper for the storage, sale, offer
             2918      for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
             2919      service activities operated by an on-premise banquet licensee.
             2920          (3) [The] Subject to Section 32B-1-201 , the commission may not issue a total number
             2921      of on-premise banquet licenses that at any time exceed the number determined by dividing the
             2922      population of the state by 30,000.
             2923          [(4) (a) As used in this Subsection (4), "grandfathered facility" means a facility:]
             2924          [(i) for which the commission issued an on-premise banquet license that is in effect on
             2925      May 11, 2009, on the basis that the facility is a convention center; and]
             2926          [(ii) that no longer qualifies as a convention center as defined in Section 32B-1-102
             2927      solely because it is in total less than 30,000 square feet.]
             2928          [(b) Notwithstanding the definition of "convention center" in Section 32B-1-102 , an
             2929      on-premise banquet license applicable to a grandfathered facility may be renewed until October
             2930      31, 2011, if the on-premise banquet licensee is qualified for an on-premise banquet license
             2931      except for the requirement that the facility be in total at least 30,000 square feet.]
             2932          [(5)] (4) Pursuant to a contract between the host of a banquet and an on-premise
             2933      banquet licensee:
             2934          (a) the host of the banquet may request an on-premise banquet licensee to provide an
             2935      alcoholic product served at the banquet; and
             2936          (b) an on-premise banquet licensee may provide an alcoholic product served at the
             2937      banquet.
             2938          [(6)] (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic
             2939      product:



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             2940
         (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
             2941      for an alcoholic product furnished at the banquet; or
             2942          (b) with a charge to a patron at the banquet.
             2943          Section 47. Section 32B-6-604 (Effective 07/01/11) is amended to read:
             2944           32B-6-604 (Effective 07/01/11). Specific licensing requirements for an on-premise
             2945      banquet license.
             2946          (1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part
             2947      2, Retail Licensing Process.
             2948          (2) (a) An on-premise banquet license expires on October 31 of each year.
             2949          (b) To renew a person's on-premise banquet license, a person shall comply with the
             2950      requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             2951          (3) (a) The nonrefundable application fee for an on-premise banquet license is [$250]
             2952      $300.
             2953          (b) The initial license fee for an on-premise banquet license is [$500] $750.
             2954          (c) The renewal fee for an on-premise banquet license is [$500] $750.
             2955          (4) The bond amount required for an on-premise banquet license is the penal sum of
             2956      $10,000.
             2957          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
             2958      political subdivision of the state it is not required to:
             2959          (a) pay an application fee, initial license fee, or renewal fee;
             2960          (b) obtain the written consent of the local authority;
             2961          (c) submit a copy of the applicant's current business license; or
             2962          (d) post a bond as specified by Section 32B-5-204 .
             2963          (6) Notwithstanding Subsection 32B-5-303 (3), the department may approve an
             2964      additional location in or on the licensed premises of an on-premise banquet licensee from
             2965      which the on-premise banquet licensee may store, sell, offer for sale, furnish, or allow the
             2966      consumption of an alcoholic product that is not included in its original application only:
             2967          (a) upon proper application by an on-premise banquet licensee; and
             2968          (b) in accordance with guidelines approved by the commission.
             2969          Section 48. Section 32B-6-605 (Effective 07/01/11) is amended to read:
             2970           32B-6-605 (Effective 07/01/11). Specific operational requirements for on-premise



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             2971
     banquet license.
             2972          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2973      Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
             2974      shall comply with this section.
             2975          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2976      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2977          (i) an on-premise banquet licensee;
             2978          (ii) individual staff of an on-premise banquet licensee; or
             2979          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
             2980          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301 (4) and
             2981      (5) for the entire premises of the hotel, resort facility, sports center, or convention center that is
             2982      the basis for the on-premise banquet license.
             2983          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
             2984      shall provide the department with advance notice of a scheduled banquet in accordance with
             2985      rules made by the commission.
             2986          (b) Any of the following may conduct a random inspection of a banquet:
             2987          (i) an authorized representative of the commission or the department; or
             2988          (ii) a law enforcement officer.
             2989          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302 , but shall
             2990      make and maintain the records the commission or department requires.
             2991          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2992      accordance with this Subsection (4).
             2993          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
             2994      sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
             2995      location of the banquet.
             2996          (b) A host of a banquet, a patron, or a person other than the on-premise banquet
             2997      licensee or staff of the on-premise banquet licensee, may not remove an alcoholic product from
             2998      the premises of the banquet.
             2999          (c) Notwithstanding Section 32B-5-307 , a patron at a banquet may not bring an
             3000      alcoholic product into or onto, or remove an alcoholic product from the premises of a banquet.
             3001          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at



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             3002
     the banquet following the conclusion of the banquet.
             3003          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
             3004          (i) destroy an opened and unused alcoholic product that is not saleable, under
             3005      conditions established by the department; and
             3006          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             3007          (A) opened and unused alcoholic product that is saleable; and
             3008          (B) unopened [package] container of an alcoholic product.
             3009          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed [package]
             3010      container of an alcoholic product not sold or consumed at a banquet, an on-premise banquet
             3011      licensee:
             3012          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
             3013      locked storage area; and
             3014          (ii) may use the alcoholic product at more than one banquet.
             3015          (7) Notwithstanding Section 32B-5-308 , an on-premise banquet licensee may not
             3016      employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
             3017      on-premise banquet licensee's banquet and room service activities.
             3018          (8) An on-premise banquet licensee may not sell, offer for sale, or furnish an alcoholic
             3019      product at a banquet or in connection with room service any day during a period that:
             3020          (a) begins at 1 a.m.; and
             3021          (b) ends at 9:59 a.m.
             3022          (9) An on-premise banquet licensee shall maintain at least 50% of its total annual
             3023      banquet gross receipts from the sale of food, not including:
             3024          (a) mix for an alcoholic product; and
             3025          (b) a charge in connection with the furnishing of an alcoholic product.
             3026          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
             3027      more than two alcoholic products of any kind at a time before the patron.
             3028          (b) A patron may not have more than one spirituous liquor drink at a time before the
             3029      patron.
             3030          (c) An individual portion of wine is considered to be one alcoholic product under
             3031      Subsection (10)(a).
             3032          (11) (a) An on-premise banquet licensee shall supervise and direct a person involved in



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             3033
     the sale, offer for sale, or furnishing of an alcoholic product.
             3034          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             3035      shall complete an alcohol training and education seminar.
             3036          (12) A staff person of an on-premise banquet licensee shall remain at the banquet at all
             3037      times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
             3038      banquet.
             3039          (13) (a) Room service of an alcoholic product to a guest room of a hotel or resort
             3040      facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
             3041      guest in the guest room.
             3042          (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
             3043          [(c) An on-premise banquet licensee may only provide an alcoholic product for room
             3044      service in a sealed package.]
             3045          Section 49. Section 32B-6-702 (Effective 07/01/11) is amended to read:
             3046           32B-6-702 (Effective 07/01/11). Definitions.
             3047          [Reserved]
             3048          As used in this part, "recreational amenity" is defined by the commission by rule made
             3049      in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. A rule made
             3050      under this section shall define "recreational amenity" to be one or more of the following or an
             3051      activity substantially similar to one of the following:
             3052          (1) a billiard parlor;
             3053          (2) a pool parlor;
             3054          (3) a bowling facility;
             3055          (4) a golf course;
             3056          (5) miniature golf;
             3057          (6) a golf driving range;
             3058          (7) a tennis club;
             3059          (8) a sports facility that hosts professional sporting events and has a seating capacity
             3060      equal to or greater than 6,500;
             3061          (9) a concert venue that has a seating capacity equal to or greater than 6,500;
             3062          (10) one of the following if owned by a government agency:
             3063          (a) a convention center;



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             3064
         (b) a fair facility;
             3065          (c) an equestrian park;
             3066          (d) a theater; or
             3067          (e) a concert venue;
             3068          (11) an amusement park:
             3069          (a) with one or more permanent amusement rides; and
             3070          (b) located on at least 50 acres;
             3071          (12) a ski resort; or
             3072          (13) a venue for live entertainment if the venue:
             3073          (a) is not regularly open for more than five hours on any day;
             3074          (b) is operated so that food is available whenever beer is sold, offered for sale, or
             3075      furnished at the venue; and
             3076          (c) is operated so that no more than 15% of its total annual receipts are from the sale of
             3077      beer.
             3078          Section 50. Section 32B-6-703 (Effective 07/01/11) is amended to read:
             3079           32B-6-703 (Effective 07/01/11). Commission's power to issue on-premise beer
             3080      retailer license.
             3081          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             3082      beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise
             3083      beer retailer license from the commission in accordance with this part.
             3084          (2) (a) The commission may issue an on-premise beer retailer license to establish
             3085      on-premise beer retailer licensed premises at places and in numbers as the commission
             3086      considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on
             3087      premises operated as an on-premise beer retailer.
             3088          (b) At the time that the commission issues an on-premise beer retailer license, the
             3089      commission shall designate whether the on-premise beer retailer is a tavern.
             3090          (c) The commission may change its designation of whether an on-premise beer retailer
             3091      is a tavern in accordance with rules made by the commission.
             3092          (d) (i) In determining whether an on-premise beer retailer is a tavern, the commission
             3093      shall determine whether the on-premise beer retailer will engage primarily in the retail sale of
             3094      beer for consumption on the establishment's premises.



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             3095
         (ii) In making a determination under this Subsection (2)(d), the commission shall
             3096      consider:
             3097          (A) whether the on-premise beer retailer will operate as one of the following:
             3098          (I) a beer bar;
             3099          (II) a parlor;
             3100          (III) a lounge;
             3101          (IV) a cabaret; or
             3102          (V) a nightclub;
             3103          (B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
             3104          (I) whether the on-premise beer retailer will sell food in the establishment; and
             3105          (II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer
             3106      will exceed the revenue of the sale of food;
             3107          (C) whether full meals including appetizers, main courses, and desserts will be served;
             3108          (D) the square footage and seating capacity of the premises;
             3109          (E) what portion of the square footage and seating capacity will be used for a dining
             3110      area in comparison to the portion that will be used as a lounge or bar area;
             3111          (F) whether the person will maintain adequate on-premise culinary facilities to prepare
             3112      full meals, except a person that is located on the premises of a hotel or resort facility may use
             3113      the culinary facilities of the hotel or resort facility;
             3114          (G) whether the entertainment provided on the premises of the beer retailer will be
             3115      suitable for minors; and
             3116          (H) the beer retailer management's ability to manage and operate an on-premise beer
             3117      retailer license including:
             3118          (I) management experience;
             3119          (II) past beer retailer management experience; and
             3120          (III) the type of management scheme that will be used by the beer retailer.
             3121          (e) On or after March 1, 2012:
             3122          (i) To be licensed as an on-premise beer retailer that is not a tavern, a person shall
             3123      maintain at least 70% of its total gross revenues from business directly related to a recreational
             3124      amenity on or directly adjoining the licensed premises of the beer retailer.
             3125          (ii) The commission may not license a person as an on-premise beer retailer if the



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             3126
     person does not:
             3127          (A) meet the requirements of Subsection (2)(e); or
             3128          (B) operate as a tavern.
             3129          (iii) (A) A person licensed as an on-premise beer retailer that is not a tavern as of July
             3130      1, 2011 shall notify the department by no later than August 1, 2011, whether effective March 1,
             3131      2012, the person will seek to be licensed as a beer-only restaurant licensee, a tavern, or an
             3132      on-premise beer retailer that meets the requirements of Subsection (2)(e)(i).
             3133          (B) If an on-premise beer retailer fails to notify the department as required by
             3134      Subsection (2)(e)(i)(A), the on-premise beer retailer's license expires as of February 29, 2012,
             3135      and to operate as an on-premise beer retailer after February 29, 2012, the on-premise beer
             3136      retailer is required to apply as a new licensee.
             3137          (3) Subject to Section 32B-1-201 :
             3138          [(3)] (a) The commission may not issue a total number of on-premise beer retailer
             3139      licenses that are taverns that at any time exceeds the number determined by dividing the
             3140      population of the state by [30,500] 54,147.
             3141          (b) The commission may issue a seasonal on-premise beer retailer license for a tavern
             3142      in accordance with Section 32B-5-206 .
             3143          (4) (a) Unless otherwise provided in Subsection (4)(b):
             3144          (i) only one on-premise beer retailer license is required for each building or resort
             3145      facility owned or leased by the same person; and
             3146          (ii) a separate license is not required for each retail beer dispensing location in the
             3147      same building or on the same resort premises owned or operated by the same person.
             3148          (b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in the
             3149      building or resort facility operates in the same manner.
             3150          (ii) If each retail beer dispensing location does not operate in the same manner:
             3151          (A) one on-premise beer retailer license designated as a tavern is required for the
             3152      locations in the same building or on the same resort premises that operate as a tavern; and
             3153          (B) one on-premise beer retailer license is required for the locations in the same
             3154      building or on the same resort premises that do not operate as a tavern.
             3155          Section 51. Section 32B-6-705 (Effective 07/01/11) is amended to read:
             3156           32B-6-705 (Effective 07/01/11). Specific licensing requirements for on-premise



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             3157
     beer retailer license.
             3158          (1) To obtain an on-premise beer retailer license a person shall comply with Chapter 5,
             3159      Part 2, Retail Licensing Process, except that an on-premise beer retailer is required to carry
             3160      dramshop insurance coverage in accordance with Section 32B-5-201 only if the on-premise
             3161      beer retailer sells more than $5,000 of beer annually.
             3162          (2) (a) An on-premise beer retailer license expires on the last day of February each
             3163      year.
             3164          (b) To renew a person's on-premise beer retailer license, a person shall comply with the
             3165      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
             3166      31.
             3167          (3) (a) The nonrefundable application fee for an on-premise beer retailer license is
             3168      [$250] $300.
             3169          (b) (i) The initial license fee for an on-premise beer retailer license that is not a tavern
             3170      is [$150] $300.
             3171          (ii) The initial license fee for an on-premise beer retailer license that is a tavern is
             3172      [$1,250] $1,500.
             3173          (c) (i) The renewal fee for an on-premise beer retailer license that is not a tavern is
             3174      [$200] $350.
             3175          (ii) The renewal fee for an on-premise beer retailer license that is a tavern is [$1,000]
             3176      $1,250.
             3177          (4) The bond amount required for an on-premise beer retailer license is the penal sum
             3178      of $2,000.
             3179          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
             3180      political subdivision of the state it is not required to:
             3181          (a) pay an application fee, initial license fee, or renewal fee;
             3182          (b) obtain the written consent of the local authority;
             3183          (c) submit a copy of the applicant's current business license; or
             3184          (d) post a bond as specified by Section 32B-5-204 .
             3185          Section 52. Section 32B-6-706 (Effective 07/01/11) is amended to read:
             3186           32B-6-706 (Effective 07/01/11). Specific operational requirements for on-premise
             3187      beer retailer license.



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             3188
         (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3189      Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply
             3190      with this section.
             3191          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             3192      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             3193          (i) an on-premise beer retailer;
             3194          (ii) individual staff of an on-premise beer retailer; or
             3195          (iii) both an on-premise beer retailer and staff of the on-premise beer retailer.
             3196          (2) (a) An on-premise beer retailer is not subject to Section 32B-5-302 , but shall make
             3197      and maintain the records the department requires.
             3198          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             3199      accordance with this Subsection (2).
             3200          (3) Notwithstanding Section 32B-5-303 , an on-premise beer retailer may not store or
             3201      sell liquor on its licensed premises.
             3202          (4) Beer sold in a sealed [package] container by an on-premise beer retailer may be
             3203      removed from the on-premise beer retailer premises in the sealed [package] container.
             3204          (5) [(a)] Only an on-premise beer retailer that operates as a tavern is subject to
             3205      [Subsection] Section 32B-5-309 [(1)].
             3206          [(b) An on-premise beer retailer is subject to Subsections 32B-5-309 (2) and (3)
             3207      regardless of whether it operates as a tavern.]
             3208          (6) (a) An on-premise beer retailer may not sell, offer for sale, or furnish beer at its
             3209      licensed premises during a period that:
             3210          (i) begins at 1 a.m.; and
             3211          (ii) ends at 9:59 a.m.
             3212          (b) (i) Notwithstanding Subsection [(5)] (6)(a), a tavern shall remain open for one hour
             3213      after the tavern ceases the sale and furnishing of beer during which time a patron of the tavern
             3214      may finish consuming a single serving of beer not exceeding 26 ounces.
             3215          (ii) A tavern is not required to remain open:
             3216          (A) after all patrons have vacated the premises; or
             3217          (B) during an emergency.
             3218          [(c) A tavern may not allow a patron to remain on the licensed premises to consume



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             3219
     beer on the licensed premises during a period that:]
             3220          [(i) begins at 2 a.m.; and]
             3221          [(ii) ends at 9:59 a.m.]
             3222          (7) Notwithstanding Section 32B-5-308 , a minor may not be on the premises of a
             3223      tavern.
             3224          (8) (a) (i) An on-premise beer retailer may not purchase, acquire, possess for the
             3225      purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases
             3226      from:
             3227          (A) a beer wholesaler licensee; or
             3228          (B) a small brewer that manufactures the beer.
             3229          (ii) Violation of Subsection (8)(a) is a class A misdemeanor.
             3230          (b) (i) If an on-premise beer retailer purchases beer under this Subsection (8) from a
             3231      beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer
             3232      wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
             3233      in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
             3234      the department to sell to the off-premise beer retailer as provided in Section 32B-13-301 .
             3235          (ii) Violation of Subsection (8)(b)(i) is a class B misdemeanor.
             3236          (9) A tavern shall comply with Section 32B-1-407 .
             3237          Section 53. Section 32B-6-801 is enacted to read:
             3238     
Part 8. Reception Center License

             3239          32B-6-801. Title.
             3240          This part is known as "Reception Center License."
             3241          Section 54. Section 32B-6-802 is enacted to read:
             3242          32B-6-802. Definitions.
             3243          Reserved
             3244          Section 55. Section 32B-6-803 is enacted to read:
             3245          32B-6-803. Commission's power to issue reception center license.
             3246          (1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on its
             3247      premises as a reception center, the person shall first obtain a reception center license from the
             3248      commission in accordance with this part.
             3249          (2) The commission may issue a reception center license to establish reception center



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             3250
     licensed premises at places and in numbers the commission considers proper for the storage,
             3251      sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
             3252      as a reception center.
             3253          (3) Subject to Section 32B-1-201 , the commission may not issue a total number of
             3254      reception center licenses that at any time exceeds the number determined by dividing the
             3255      population of the state by 56,313.
             3256          (4) The commission may not issue a reception center license for premises that do not
             3257      meet the proximity requirements of Section 32B-1-202 .
             3258          Section 56. Section 32B-6-804 is enacted to read:
             3259          32B-6-804. Specific licensing requirements for reception center license.
             3260          (1) To obtain a reception center license a person shall comply with Chapter 5, Part 2,
             3261      Retail Licensing Process.
             3262          (2) (a) A reception center license expires on October 31 of each year.
             3263          (b) To renew a person's reception center license, a person shall comply with the
             3264      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             3265      September 30.
             3266          (3) (a) The nonrefundable application fee for a reception center license is $300.
             3267          (b) The initial license fee for a reception center license is $750.
             3268          (c) The renewal fee for a reception center license is $750.
             3269          (4) The bond amount required for a reception center license is the penal sum of
             3270      $10,000.
             3271          Section 57. Section 32B-6-805 is enacted to read:
             3272          32B-6-805. Specific operational requirements for a reception center license.
             3273          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3274      Requirements, a reception center licensee and staff of the reception center licensee shall
             3275      comply with this section.
             3276          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             3277      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             3278          (i) a reception center licensee;
             3279          (ii) individual staff of a reception center licensee; or
             3280          (iii) both a reception center licensee and staff of the reception center licensee.



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             3281
         (2) In addition to complying with Section 32B-5-303 , a reception center licensee shall
             3282      store an alcoholic product in a storage area described in Subsection (15)(a).
             3283          (3) (a) For the purpose described in Subsection (3)(b), a reception center licensee shall
             3284      provide the following with advance notice of a scheduled event in accordance with rules made
             3285      by the commission:
             3286          (i) the department; and
             3287          (ii) the local law enforcement agency responsible for the enforcement of this title in the
             3288      jurisdiction where the reception center is located.
             3289          (b) Any of the following may conduct a random inspection of an event:
             3290          (i) an authorized representative of the commission or the department; or
             3291          (ii) a law enforcement officer.
             3292          (4) (a) Except as otherwise provided in this title, a reception center licensee may sell,
             3293      offer for sale, or furnish an alcoholic product at an event only for consumption at the reception
             3294      center's licensed premises.
             3295          (b) A host of an event, a patron, or a person other than the reception center licensee or
             3296      staff of the reception center licensee, may not remove an alcoholic product from the reception
             3297      center's licensed premises.
             3298          (c) Notwithstanding Section 32B-5-307 , a patron at an event may not bring an
             3299      alcoholic product into or onto, or remove an alcoholic product from, the reception center.
             3300          (5) (a) A reception center licensee may not leave an unsold alcoholic product at an
             3301      event following the conclusion of the event.
             3302          (b) At the conclusion of an event, a reception center licensee shall:
             3303          (i) destroy an opened and unused alcoholic product that is not saleable, under
             3304      conditions established by the department; and
             3305          (ii) return to the reception center licensee's approved locked storage area any:
             3306          (A) opened and unused alcoholic product that is saleable; and
             3307          (B) unopened container of an alcoholic product.
             3308          (c) Except as provided in Subsection (5)(b) with regard to an open or sealed container
             3309      of an alcoholic product not sold or consumed at an event, a reception center licensee:
             3310          (i) shall store the alcoholic product in accordance with Subsection (2); and
             3311          (ii) may use the alcoholic product at more than one event.



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             3312
         (6) Notwithstanding Section 32B-5-308 , a reception center licensee may not employ a
             3313      minor in connection with an event at the reception center at which food is not made available.
             3314          (7) A person's willingness to serve an alcoholic product may not be made a condition
             3315      of employment as a server with a reception center licensee.
             3316          (8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             3317      product at the licensed premises on any day during the period that:
             3318          (a) begins at 1 a.m.; and
             3319          (b) ends at 9:59 a.m.
             3320          (9) A reception center licensee may not maintain in excess of 30% of its total annual
             3321      receipts from the sale of an alcoholic product, which includes:
             3322          (a) mix for an alcoholic product; or
             3323          (b) a charge in connection with the furnishing of an alcoholic product.
             3324          (10) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             3325      product at an event at which a minor is present unless the reception center licensee makes food
             3326      available at all times when an alcoholic product is sold, offered for sale, furnished, or
             3327      consumed during the event.
             3328          (11) (a) Subject to the other provisions of this Subsection (11), a patron may not have
             3329      more than two alcoholic products of any kind at a time before the patron.
             3330          (b) An individual portion of wine is considered to be one alcoholic product under
             3331      Subsection (11)(a).
             3332          (12) (a) A reception center licensee shall supervise and direct a person involved in the
             3333      sale, offer for sale, or furnishing of an alcoholic product.
             3334          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             3335      shall complete an alcohol training and education seminar.
             3336          (13 A staff person of a reception center licensee shall remain at an event at all times
             3337      when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.
             3338          (14) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             3339      product to a patron, and a patron may not consume an alcoholic product at a bar structure.
             3340          (15) Except as provided in Subsection (16), a reception center licensee may dispense
             3341      an alcoholic product only if:
             3342          (a) the alcoholic product is dispensed from an area that is:



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             3343
         (i) separated from an area for the consumption of food by a patron by a solid,
             3344      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             3345      an alcoholic product are:
             3346          (A) not readily visible to a patron; and
             3347          (B) not accessible by a patron; and
             3348          (ii) apart from an area used:
             3349          (A) for staging; or
             3350          (B) as a lobby or waiting area;
             3351          (b) the reception center licensee uses an alcoholic product that is:
             3352          (i) stored in an area described in Subsection (15)(a); or
             3353          (ii) in an area not described in Subsection (15)(a) on the licensed premises and:
             3354          (A) immediately before the alcoholic product is dispensed it is in an unopened
             3355      container;
             3356          (B) the unopened container is taken to an area described in Subsection (15)(a) before it
             3357      is opened; and
             3358          (C) once opened, the container is stored in an area described in Subsection (15)(a); and
             3359          (c) any instrument or equipment used to dispense an alcoholic product is located in an
             3360      area described in Subsection (15)(a).
             3361          (16) A reception center licensee may dispense an alcoholic product from a mobile
             3362      serving area that:
             3363          (a) is moved only by staff of the reception center licensee;
             3364          (b) is capable of being moved by only one individual; and
             3365          (c) is no larger than 6 feet long and 30 inches wide.
             3366          (17) (a) A reception center licensee may not have an event on the licensed premises
             3367      except pursuant to a contract between a third party host of the event and the reception center
             3368      licensee under which the reception center licensee provides an alcoholic product sold, offered
             3369      for sale, or furnished at an event.
             3370          (b) At an event, a reception center licensee may furnish an alcoholic product:
             3371          (i) without charge to a patron, except that the third party host of the event shall pay for
             3372      an alcoholic product furnished at the event; or
             3373          (ii) with a charge to a patron at the event.



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             3374
         (18) A reception center licensee shall have culinary facilities that are:
             3375          (a) adequate to prepare a full meal; and
             3376          (b) (i) located on the licensed premises; or
             3377          (ii) under the same control as the reception center licensee.
             3378          Section 58. Section 32B-6-901 is enacted to read:
             3379     
Part 9. Beer-only Restaurant License

             3380          32B-6-901. Title.
             3381          This part is known as "Beer-only Restaurant License."
             3382          Section 59. Section 32B-6-902 is enacted to read:
             3383          32B-6-902. Definitions.
             3384          (1) (a) As used in this part, "grandfathered bar structure" means a bar structure in a
             3385      licensed premises of a beer-only restaurant licensee that:
             3386          (i) as of January 1, 2011:
             3387          (A) is operational; and
             3388          (B) has facilities for the dispensing or storage of an alcoholic product that do not meet
             3389      the requirements of Subsection 32B-6-905 (12)(a)(ii);
             3390          (ii) is not operational as of January 1, 2011, if a person applying for the beer-only
             3391      restaurant license:
             3392          (A) has as of January 1, 2011, a building permit to construct the restaurant;
             3393          (B) is as of January 1, 2011, actively engaged in the construction of the restaurant, as
             3394      defined by rule made by the commission;
             3395          (C) is issued the beer-only license by no later than December 31, 2011; and
             3396          (D) once constructed, will have a bar structure that does not meet the requirements of
             3397      Subsection 32B-6-905 (12)(a)(ii); or
             3398          (iii) is a bar structure grandfathered under Section 32B-6-409 .
             3399          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             3400      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             3401      grandfathered bar structure, as defined by rule made by the commission.
             3402          (2) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             3403      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             3404          Section 60. Section 32B-6-903 is enacted to read:



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             3405
         32B-6-903. Commission's power to issue beer-only restaurant license.
             3406          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             3407      beer on its premises as a beer-only restaurant, the person shall first obtain a beer-only
             3408      restaurant license from the commission in accordance with this part.
             3409          (2) (a) The commission may issue a beer-only restaurant license to establish beer-only
             3410      restaurant licensed premises at places and in numbers the commission considers proper for the
             3411      storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as a
             3412      beer-only restaurant.
             3413          (b) A person may not sell, offer for sale, furnish, or allow the consumption of liquor on
             3414      the licensed premises of a beer-only restaurant licensee.
             3415          (3) (a) Only one beer-only restaurant license is required for each building or resort
             3416      facility owned or leased by the same person.
             3417          (b) A separate license is not required for each beer-only restaurant license dispensing
             3418      location in the same building or on the same resort premises owned or operated by the same
             3419      person.
             3420          (4) (a) Except as provided in Subsection (4)(b) or (c), the commission may not issue a
             3421      beer-only restaurant license for premises that do not meet the proximity requirements of
             3422      Section 32B-1-202 .
             3423          (b) With respect to the premises of a beer-only restaurant license issued by the
             3424      commission that undergoes a change of ownership, the commission shall waive or vary the
             3425      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             3426      beer-only restaurant license to the new owner of the premises if:
             3427          (i) when a beer-only restaurant license was issued to a previous owner, the premises
             3428      met the proximity requirements of Subsection 32B-1-202 (2);
             3429          (ii) the premises has had a beer-only restaurant license at all times since the beer-only
             3430      restaurant license described in Subsection (4)(b)(i) was issued without a variance; and
             3431          (iii) the community location was located within the proximity requirements of
             3432      Subsection 32B-1-202 (2) after the day on which the beer-only restaurant license described in
             3433      Subsection (4)(b)(i) was issued.
             3434          (c) The location of the licensed premises of an on-premise beer retailer who is licensed
             3435      as of July 1, 2011, is grandfathered and not required to meet the proximity requirements of



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             3436
     Section 32B-1-202 if the on-premise beer retailer obtains a beer-only restaurant license by not
             3437      later than March 1, 2012. A location grandfathered under this Subsection (4)(c) is considered
             3438      grandfathered notwithstanding that the beer-only restaurant license undergoes a change of
             3439      ownership.
             3440          Section 61. Section 32B-6-904 is enacted to read:
             3441          32B-6-904. Specific licensing requirements for beer-only restaurant license.
             3442          (1) To obtain a beer-only restaurant license a person shall comply with Chapter 5, Part
             3443      2, Retail Licensing Process.
             3444          (2) (a) A beer-only restaurant license expires the last day of February of each year.
             3445          (b) To renew a person's beer-only restaurant license, a person shall comply with the
             3446      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
             3447      31.
             3448          (3) (a) The nonrefundable application fee for a beer-only restaurant license is $300.
             3449          (b) The initial license fee for a beer-only restaurant license is $750.
             3450          (c) The renewal fee for a beer-only restaurant license is $550.
             3451          (4) The bond amount required for a beer-only restaurant license is the penal sum of
             3452      $5,000.
             3453          Section 62. Section 32B-6-905 is enacted to read:
             3454          32B-6-905. Specific operational requirements for a beer-only restaurant license.
             3455          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3456      Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
             3457      shall comply with this section.
             3458          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             3459      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             3460          (i) a beer-only restaurant licensee;
             3461          (ii) individual staff of a beer-only restaurant licensee; or
             3462          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
             3463          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
             3464      sale, furnish, or allow consumption of liquor.
             3465          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
             3466          (i) as a flavoring on a dessert; and



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             3467
         (ii) in the preparation of a flaming food dish, drink, or dessert.
             3468          (3) In addition to complying with Section 32B-5-303 , a beer-only restaurant licensee
             3469      shall store beer in a storage area described in Subsection (12)(a).
             3470          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
             3471      make a written beverage tab for each table or group that orders or consumes an alcoholic
             3472      product on the premises.
             3473          (b) A beverage tab required by this Subsection (4) shall list the type and amount of
             3474      beer ordered or consumed.
             3475          (5) A person's willingness to serve beer may not be made a condition of employment as
             3476      a server with a beer-only restaurant licensee.
             3477          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer during the
             3478      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             3479      except that a beer-only restaurant licensee may not sell, offer for sale, or furnish beer before
             3480      11:30 a.m. on any day.
             3481          (7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
             3482      business from the sale of food, which does not include a service charge.
             3483          (8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except in
             3484      connection with an order for food prepared, sold, and furnished at the licensed premises.
             3485          (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
             3486      facilities for food preparation and dining accommodations.
             3487          (9) A patron may not have more than two beers at a time before the patron.
             3488          (10) A patron may consume a beer only:
             3489          (a) at:
             3490          (i) the patron's table;
             3491          (ii) a grandfathered bar structure; or
             3492          (iii) a counter; and
             3493          (b) where food is served.
             3494          (11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
             3495      a patron, and a patron may not consume an alcoholic product at a bar structure.
             3496          (b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who
             3497      is 21 years of age or older may:



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             3498
         (i) sit;
             3499          (ii) be furnished a beer; and
             3500          (iii) consume a beer.
             3501          (c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
             3502      beer-only restaurant licensee may not permit a minor to, and a minor may not:
             3503          (i) sit; or
             3504          (ii) consume food or beverages.
             3505          (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
             3506      beer-only restaurant licensee:
             3507          (A) as provided in Subsection 32B-5-308 (2); or
             3508          (B) to perform maintenance and cleaning services during an hour when the beer-only
             3509      restaurant licensee is not open for business.
             3510          (ii) A minor may momentarily pass by a grandfathered bar structure without remaining
             3511      or sitting at the bar structure en route to an area of a beer-only restaurant licensee's premises in
             3512      which the minor is permitted to be.
             3513          (12) A beer-only restaurant licensee may dispense a beer only if:
             3514          (a) the beer is dispensed from an area that is:
             3515          (i) a grandfathered bar structure; or
             3516          (ii) separated from an area for the consumption of food by a patron by a solid,
             3517      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             3518      an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
             3519      from an area used for dining, for staging, or as a lobby or waiting area;
             3520          (b) the beer-only restaurant licensee uses a beer that is:
             3521          (i) stored in an area described in Subsection (12)(a); or
             3522          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             3523          (A) immediately before the beer is dispensed it is in an unopened container;
             3524          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             3525      is opened; and
             3526          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             3527          (c) any instrument or equipment used to dispense the beer is located in an area
             3528      described in Subsection (12)(a).



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             3529
         Section 63. Section 32B-8-202 (Effective 07/01/11) is amended to read:
             3530           32B-8-202 (Effective 07/01/11). Specific licensing requirements for resort license.
             3531          (1) To obtain a resort license, in addition to complying with Chapter 5, Part 2, Retail
             3532      Licensing Process, a person shall submit with the written application:
             3533          (a) the current business license for each sublicense, if the business license is separate
             3534      from the person's business license;
             3535          (b) evidence:
             3536          (i) of proximity of the resort building to any community location, with proximity
             3537      requirements being governed by Section 32B-1-202 ;
             3538          (ii) that each of the four or more sublicense premises is entirely within the boundaries
             3539      of the resort building; and
             3540          (iii) that the building designated in the application as the resort building qualifies as a
             3541      resort building;
             3542          (c) a description and boundary map of the resort building;
             3543          (d) a description, floor plan, and boundary map of each sublicense premises
             3544      designating:
             3545          (i) any location at which the person proposes that an alcoholic product be stored; and
             3546          (ii) a designated location on the sublicense premises from which the person proposes
             3547      that an alcoholic product be sold, furnished, or consumed;
             3548          (e) evidence that the resort license person carries dramshop insurance coverage equal
             3549      to the sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both
             3550      the general resort license and each sublicense; and
             3551          (f) a signed consent form stating that the person will permit any authorized
             3552      representative of the commission, department, or any law enforcement officer to have
             3553      unrestricted right to enter the boundary of the resort building and each sublicense premises.
             3554          (2) (a) A resort license expires on October 31 of each year.
             3555          (b) To renew a person's resort license, the person shall comply with the requirements of
             3556      Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             3557          (3) (a) The nonrefundable application fee for a resort license is [$250] $300.
             3558          (b) The initial license fee for a resort license is calculated as follows:
             3559          (i) $10,000 if four sublicenses are being applied for under the resort license; or



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             3560
         (ii) if more than four sublicenses are being applied for under the resort license, the sum
             3561      of:
             3562          (A) $10,000; and
             3563          (B) $2,000 for each sublicense in excess of four sublicenses for which the person is
             3564      applying.
             3565          (c) The renewal fee for a resort license is $1,000 for each sublicense under the resort
             3566      license.
             3567          (4) (a) The bond amount required for a resort license is the penal sum of $25,000.
             3568          (b) A resort licensee is not required to have a separate bond for each sublicense, except
             3569      that the aggregate of the bonds posted by the resort licensee shall cover each sublicense under
             3570      the resort license.
             3571          (5) The commission may not issue a resort license for a resort building that does not
             3572      meet the proximity requirements of Section 32B-1-202 .
             3573          Section 64. Section 32B-8-204 (Effective 07/01/11) is amended to read:
             3574           32B-8-204 (Effective 07/01/11). Commission and department duties before issuing
             3575      resort license.
             3576          (1) Before the issuance of a resort license, the department shall comply with the
             3577      requirements of Subsection [ 32B-8-202 ] 32B-5-203 (1) in relation to the resort license and each
             3578      sublicense.
             3579          (2) Before issuing a resort license, in addition to considering the factors described in
             3580      Section 32B-8-202 , the commission shall:
             3581          (a) consider the resort license person's ability to manage and operate a resort license
             3582      and the ability of any individual who will act in a supervisory or managerial capacity for a
             3583      sublicense, including:
             3584          (i) past management experience;
             3585          (ii) past alcoholic product license experience; and
             3586          (iii) the type of management scheme to be used by the resort license person;
             3587          (b) consider the nature or type of:
             3588          (i) the person's business operation of the resort license; and
             3589          (ii) the business operation of each sublicense; and
             3590          (c) subject to Subsection (3), determine that each sublicense meets the requirements



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             3591
     imposed under the provisions applicable to each sublicense.
             3592          (3) (a) Subject to Subsection (3)(b), notwithstanding the requirements to obtain a retail
             3593      license under the provisions applicable to a sublicense, a sublicense of a resort license is not
             3594      subject to:
             3595          (i) a requirement to submit an application or renewal application that is separate from
             3596      the resort license application;
             3597          (ii) a requirement to carry public liability insurance or dramshop insurance coverage
             3598      that is separate from that carried by the resort licensee; or
             3599          (iii) a requirement to post a bond that is separate from the bond posted by the resort
             3600      licensee.
             3601          (b) If a resort licensee seeks to add a sublicense after its resort license is issued, the
             3602      resort licensee shall file with the department:
             3603          (i) a nonrefundable [$250] $300 application fee;
             3604          (ii) an initial license fee of [$2,000] $2,250, which is refundable if the sublicense is not
             3605      issued;
             3606          (iii) written consent of the local authority;
             3607          (iv) a copy of:
             3608          (A) the resort licensee's current business license; and
             3609          (B) the current business license for the sublicense, if the business licensee is separate
             3610      from the resort licensee's business license;
             3611          (v) evidence that the sublicense premises is entirely within the boundary of the resort
             3612      building;
             3613          (vi) a description, floor plan, and boundary map of the sublicense premises
             3614      designating:
             3615          (A) any location at which the person proposes that an alcoholic product be stored; and
             3616          (B) any designated location on the sublicense premises from which the person proposes
             3617      that an alcoholic product be sold, furnished, or consumed;
             3618          (vii) evidence that the person carries public liability insurance in an amount and form
             3619      satisfactory to the department;
             3620          (viii) evidence that the person carries dramshop insurance coverage in the amount
             3621      required by Section 32B-8-202 that covers the sublicense to be added;



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             3622
         (ix) a signed consent form stating that the resort licensee will permit any authorized
             3623      representative of the commission, department, or any law enforcement officer to have
             3624      unrestricted right to enter the sublicense premises;
             3625          (x) if the resort licensee is an entity, proper verification evidencing that a person who
             3626      signs the application is authorized to sign on behalf of the entity; and
             3627          (xi) any other information the commission or department may require.
             3628          Section 65. Section 32B-8-304 (Effective 07/01/11) is amended to read:
             3629           32B-8-304 (Effective 07/01/11). Specific operational requirements for resort spa
             3630      sublicense.
             3631          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3632      Requirements, a resort licensee, staff of the resort licensee, or a person otherwise related to a
             3633      resort spa sublicense shall comply with this section.
             3634          (b) Subject to Section 32B-8-502 , failure to comply as provided in Subsection (1)(a)
             3635      may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             3636      Enforcement Act, against:
             3637          (i) a retail licensee;
             3638          (ii) staff of the retail licensee;
             3639          (iii) a person otherwise related to a resort spa sublicense; or
             3640          (iv) any combination of the persons listed in this Subsection (1)(b).
             3641          [(2) A person operating under a resort spa sublicense shall display in a prominent place
             3642      in the resort spa a list of the types and brand names of liquor being furnished through its
             3643      calibrated metered dispensing system.]
             3644          [(3)] (2) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure
             3645      that a record required by this title is maintained, and a record is maintained or used for the
             3646      resort spa sublicense:
             3647          (i) as the department requires; and
             3648          (ii) for a minimum period of three years.
             3649          (b) A record is subject to inspection by an authorized representative of the commission
             3650      and the department.
             3651          (c) A resort licensee shall allow the department, through an auditor or examiner of the
             3652      department, to audit the records for a resort spa sublicense at the times the department



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             3653
     considers advisable.
             3654          (d) The department shall audit the records for a resort spa sublicense at least once
             3655      annually.
             3656          (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
             3657      accordance with this Subsection [(3)] (2).
             3658          [(4)] (3) (a) A person operating under a resort spa sublicense may not sell, offer for
             3659      sale, or furnish liquor at a resort spa during a period that:
             3660          (i) begins at 1 a.m.; and
             3661          (ii) ends at 9:59 a.m.
             3662          (b) A person operating under a resort spa sublicense may sell, offer for sale, or furnish
             3663      beer during the hours specified in Chapter 6, Part 7, On-premise Beer Retailer License, for an
             3664      on-premise beer retailer.
             3665          (c) (i) Notwithstanding Subsections [(4)] (3)(a) and (b), a resort spa shall remain open
             3666      for one hour after the resort spa ceases the sale and furnishing of an alcoholic product during
             3667      which time a person at the resort spa may finish consuming:
             3668          (A) a single drink containing spirituous liquor;
             3669          (B) a single serving of wine not exceeding five ounces;
             3670          (C) a single serving of heavy beer;
             3671          (D) a single serving of beer not exceeding 26 ounces; or
             3672          (E) a single serving of a flavored malt beverage.
             3673          (ii) A resort spa is not required to remain open:
             3674          (A) after all persons have vacated the resort spa sublicense premises; or
             3675          (B) during an emergency.
             3676          [(d) A person operating under a resort spa sublicense may not allow a person to remain
             3677      on the resort spa sublicense premises to consume an alcoholic product on the resort spa
             3678      sublicense premises during a period that:]
             3679          [(i) begins at 2 a.m.; and]
             3680          [(ii) ends at 9:59 a.m.]
             3681          [(5)] (4) A minor may not be admitted into, use, or be on:
             3682          (a) the sublicense premises of a resort spa unless accompanied by a person 21 years of
             3683      age or older; or



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             3684
         (b) a lounge or bar area of the resort spa sublicense premises.
             3685          [(6)] (5) A resort spa shall have food available at all times when an alcoholic product is
             3686      sold, offered for sale, furnished, or consumed on the resort spa sublicense premises.
             3687          [(7)] (6) (a) Subject to the other provisions of this Subsection [(7)] (6), a patron may
             3688      not have more than two alcoholic products of any kind at a time before the patron.
             3689          (b) A resort spa patron may not have two spirituous liquor drinks before the resort spa
             3690      patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
             3691      the other spirituous liquor drink.
             3692          (c) An individual portion of wine is considered to be one alcoholic product under this
             3693      Subsection [(7)] (6).
             3694          [(8)] (7) (a) An alcoholic product may only be consumed at a table or counter.
             3695          (b) An alcoholic product may not be served to or consumed by a patron at a bar.
             3696          [(9)] (8) (a) A person operating under a resort spa sublicense shall have available on
             3697      the resort spa sublicense premises for a patron to review at the time that the patron requests it, a
             3698      written alcoholic product price list or a menu containing the price of an alcoholic product sold
             3699      or furnished by the resort spa including:
             3700          (i) a set-up charge;
             3701          (ii) a service charge; or
             3702          (iii) a chilling fee.
             3703          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             3704      may be stated in food or alcoholic product menus including:
             3705          (i) a set-up charge;
             3706          (ii) a service charge; or
             3707          (iii) a chilling fee.
             3708          [(10)] (9) (a) A resort licensee shall own or lease premises suitable for the resort spa's
             3709      activities.
             3710          (b) A resort licensee may not maintain premises in a manner that barricades or conceals
             3711      the resort spa sublicense's operation.
             3712          [(11)] (10) Subject to the other provisions of this section, a person operating under a
             3713      resort spa sublicense may not sell an alcoholic product to or allow a person to be admitted to or
             3714      use the resort spa sublicense premises other than:



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             3715
         (a) a resident;
             3716          (b) a public customer who holds a valid customer card issued under Subsection [(13)]
             3717      (12); or
             3718          (c) an invitee.
             3719          [(12)] (11) A person operating under a resort spa sublicense may allow an individual to
             3720      be admitted to or use the resort spa sublicense premises as an invitee subject to the following
             3721      conditions:
             3722          (a) the individual must be previously authorized by one of the following who agrees to
             3723      host the individual as an invitee into the resort spa:
             3724          (i) a resident; or
             3725          (ii) a public customer as described in Subsection [(11)] (10);
             3726          (b) the individual has only those privileges derived from the individual's host for the
             3727      duration of the invitee's visit to the resort spa; and
             3728          (c) a resort licensee, resort spa, or staff of the resort licensee or resort spa may not enter
             3729      into an agreement or arrangement with a resident or public customer to indiscriminately host a
             3730      member of the general public into the resort spa as an invitee.
             3731          [(13)] (12) A person operating under a resort spa sublicense may issue a customer card
             3732      to allow an individual to enter and use the resort spa sublicense premises on a temporary basis
             3733      under the following conditions:
             3734          (a) the resort spa may not issue a customer card for a time period that exceeds three
             3735      weeks;
             3736          (b) the resort spa shall assess a fee to a public customer for a customer card;
             3737          (c) the resort spa may not issue a customer card to a minor; and
             3738          (d) a public customer may not host more than seven invitees at one time.
             3739          Section 66. Section 32B-8-401 (Effective 07/01/11) is amended to read:
             3740           32B-8-401 (Effective 07/01/11). Specific operational requirements for resort
             3741      license.
             3742          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             3743      Requirements, a resort licensee, staff of the resort licensee, and a person otherwise operating
             3744      under a sublicense shall comply with this section.
             3745          (b) Subject to Section 32B-8-502 , failure to comply as provided in Subsection (1)(a)



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             3746
     may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             3747      Enforcement Act, against:
             3748          (i) a resort licensee;
             3749          (ii) individual staff of a resort licensee;
             3750          (iii) a person otherwise operating under a sublicense;
             3751          (iv) individual staff of a person otherwise operating under a sublicense; or
             3752          (v) any combination of the persons listed in this Subsection (1)(b).
             3753          (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product
             3754      except:
             3755          (i) on a sublicense premises;
             3756          (ii) pursuant to a permit issued under this title; or
             3757          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
             3758      6, Package Agency.
             3759          (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
             3760      provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
             3761          (i) if on a sublicense premises, in accordance with the operational requirements under
             3762      the provisions applicable to the sublicense, except as provided in Section 32B-8-402 ;
             3763          (ii) if under a permit issued under this title, in accordance with the operational
             3764      requirements under the provisions applicable to the permit; and
             3765          (iii) if as a package agency, in accordance with the contract with the department and
             3766      Chapter 2, Part 6, Package Agency.
             3767          (3) A resort licensee shall comply with Subsections 32B-5-301 (4) and (5) within the
             3768      boundary of the resort building.
             3769          (4) [(a) Subject to Subsection (4)(b), a] A resort licensee shall operate in a manner so
             3770      that at least 70% of the annual aggregate of the gross receipts related to the sale of food or
             3771      beverages for the resort license and each of its sublicenses is from the sale of food, not
             3772      including:
             3773          [(i)] (a) mix for an alcoholic product; and
             3774          [(ii)] (b) a charge in connection with the service of an alcoholic product.
             3775          [(b) In calculating the annual aggregate of the gross receipts described in Subsection
             3776      (4)(a), a resort licensee is not required to include in the calculation money from the sale of a



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             3777
     bottle of wine by the resort licensee or under a sublicense in excess of $250.]
             3778          (5) (a) A resort licensee shall supervise and direct a person involved in the sale, offer
             3779      for sale, or furnishing of an alcoholic product under a resort license.
             3780          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             3781      under a resort license shall complete the alcohol training and education seminar.
             3782          (6) (a) Room service of an alcoholic product to a lodging accommodation of a resort
             3783      licensee shall be provided in person by staff of a resort licensee only to an adult occupant in the
             3784      lodging accommodation.
             3785          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
             3786      by an occupant.
             3787          [(c) A resort licensee may only provide an alcoholic product for room service in a
             3788      sealed package.]
             3789          Section 67. Section 32B-8-402 (Effective 07/01/11) is amended to read:
             3790           32B-8-402 (Effective 07/01/11). Specific operational requirements for a
             3791      sublicense.
             3792          (1) A person operating under a sublicense is subject to the operational requirements
             3793      under the provisions applicable to the sublicense except that[,]:
             3794          (a) notwithstanding a requirement in the provisions applicable to the sublicense, a
             3795      person operating under the sublicense is not subject to a requirement that a certain percentage
             3796      of the gross receipts for the sublicense be from the sale of food, except to the extent that the
             3797      gross receipts for the sublicense are included in calculating the percentages under Subsection
             3798      32B-8-401 (4)[.]; and
             3799          (b) notwithstanding Section 32B-6-202 or 32B-6-302 , a bar structure in a licensed
             3800      premises operated under a full-service restaurant sublicense or limited-service restaurant
             3801      sublicense is considered a grandfathered bar structure if the resort license that includes the
             3802      full-service restaurant sublicense or limited-service restaurant sublicense is issued by no later
             3803      than December 31, 2010.
             3804          (2) Subject to Section 32B-8-502 , for purposes of interpreting an operational
             3805      requirement imposed by the provisions applicable to a sublicense:
             3806          (a) a requirement imposed on a person operating under a sublicense applies to the
             3807      resort licensee; and



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             3808
         (b) a requirement imposed on staff of a person operating under a sublicense applies to
             3809      staff of the resort licensee.
             3810          Section 68. Section 32B-8a-101 is enacted to read:
             3811     
CHAPTER 8a. TRANSFER OF RETAIL LICENSE ACT

             3812     
Part 1. General Provisions

             3813          32B-8a-101. Title.
             3814          This chapter is known as the "Transfer of Retail License Act."
             3815          Section 69. Section 32B-8a-102 is enacted to read:
             3816          32B-8a-102. Definitions.
             3817          As used in this chapter:
             3818          (1) "Business entity" means a corporation, partnership, limited liability company, sole
             3819      proprietorship, or similar entity.
             3820          (2) "Transfer fee" means a fee described in Section 32B-8a-303 .
             3821          (3) "Transferee" means a person who intends to hold a retail license after the transfer of
             3822      the retail license if the transfer is approved by the commission under this chapter.
             3823          (4) "Transferor" means a retail licensee who intends to transfer a retail license held by
             3824      the retail licensee if the transfer is approved by the commission under this chapter.
             3825          Section 70. Section 32B-8a-201 is enacted to read:
             3826     
Part 2. Transferability of Retail License

             3827          32B-8a-201. Transferability of retail license.
             3828          (1) (a) A retail license is separate from other property of a retail licensee.
             3829          (b) Notwithstanding Subsection (1)(a), the Legislature may terminate or modify the
             3830      existence of any type of retail license.
             3831          (c) Except as provided in this chapter, a person may not:
             3832          (i) transfer a retail license from one location to another location; or
             3833          (ii) sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
             3834      retail license to another person whether for monetary gain or not.
             3835          (d) If approved by the commission and subject to the requirements of this chapter, a
             3836      retail licensee may transfer a retail license:
             3837          (i) from the retail licensee to another person, regardless of whether it is for the same
             3838      premises; and



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             3839
         (ii) from one premises of the retail licensee to another premises of the retail licensee.
             3840          (2) (a) The commission may not approve the transfer of a retail license that results in a
             3841      transferee holding a different type of retail license than is held by the transferor.
             3842          (b) The commission may not approve the transfer of a retail license from one location
             3843      to another location, if the location of the premises to which the retail license would be
             3844      transferred is in a different county than the location of the licensed premises of the retail license
             3845      being transferred.
             3846          (3) The commission may not approve the transfer of a retail license if the transferee:
             3847          (a) is not eligible to hold the same type of retail license as the retail license to be
             3848      transferred at the premises to which the retail license would be transferred; or
             3849          (b) is delinquent in the payment of any of the following that arises in full or in part out
             3850      of the operation of a retail license:
             3851          (i) a tax, fee, or charge due under this title or Title 59, Revenue and Taxation; or
             3852          (ii) an amount due under Title 35A, Chapter 4, Employment Security Act.
             3853          Section 71. Section 32B-8a-202 is enacted to read:
             3854          32B-8a-202. Effect of transfer of ownership of business entity.
             3855          (1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
             3856      acquired by or transferred to one or more persons who did not hold the ownership of 51% of
             3857      those shares of stock on the date a retail license is issued to the corporation, the corporation
             3858      shall comply with this chapter to transfer the retail license to the corporation as if the
             3859      corporation is newly constituted.
             3860          (b) When there is a new general partner or when the ownership of 51% or more of the
             3861      capital or profits of a limited partnership is acquired by or transferred to one or more persons as
             3862      general or limited partners and who did not hold ownership of 51% or more of the capital or
             3863      profits of the limited partnership on the date a retail license is issued to the limited partnership,
             3864      the limited partnership shall comply with this chapter to transfer the retail license to the limited
             3865      partnership as if the limited partnership is newly constituted.
             3866          (c) When the ownership of 51% or more of the interests in a limited liability company
             3867      is acquired by or transferred to one or more persons as members who did not hold ownership of
             3868      51% or more of the interests in the limited liability company on the date a retail license is
             3869      issued to the limited liability company, the limited liability company shall comply with this



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             3870
     chapter to transfer the retail license to the limited liability company as if the limited liability
             3871      company is newly constituted.
             3872          (2) A business entity may not transfer a retail license under this section unless, before
             3873      the filing of the transfer application with the department, the business entity initiating the
             3874      transfer complies with Section 32B-8a-301 .
             3875          (3) If a business entity fails to comply with this section within 30 days of the day on
             3876      which the event described in Subsection (1) occurs, the business entity's retail license is
             3877      automatically forfeited.
             3878          Section 72. Section 32B-8a-203 is enacted to read:
             3879          32B-8a-203. Operational requirements for transferee.
             3880          (1) A transferee shall begin operations of the retail license within 30 days from the day
             3881      on which a transfer is approved by the commission, except that the department may grant an
             3882      extension of this time period not to exceed 30 days.
             3883          (2) If a transferee fails to begin operations of the retail license within the time period
             3884      required by Subsection (1), the retail license is forfeited and the commission may issue the
             3885      retail license to another person.
             3886          (3) A transferee shall begin operations of the retail license at the location to which the
             3887      transfer applies before the transferee may seek a transfer of the retail license to a different
             3888      location.
             3889          Section 73. Section 32B-8a-301 is enacted to read:
             3890     
Part 3. Process for Transferring a Retail License

             3891          32B-8a-301. Notice of intended transfer.
             3892          (1) To transfer a retail license, at least 10 days before the filing of a transfer application
             3893      with the department, the transferee shall file a notice of intended transfer with the department
             3894      that states the following:
             3895          (a) the name and address of the transferor;
             3896          (b) the name and address of the transferee;
             3897          (c) the type of retail license intended to be transferred;
             3898          (d) the address of the premises to which the retail license is issued;
             3899          (e) the address of the premises to which the retail license will be transferred;
             3900          (f) an agreement between the transferor and the transferee that the consideration for the



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             3901
     transfer of the retail license, if any, is to be paid only after the transfer is approved by the
             3902      commission; and
             3903          (g) any other information the commission or department may require.
             3904          (2) Notwithstanding Subsection (1), a notice of intended transfer filed by a business
             3905      entity for a transfer under Section 32B-8a-202 , shall state the following:
             3906          (a) the name and address of the business entity;
             3907          (b) the name and address of the one or more persons acquiring ownership of 51% or
             3908      more of the:
             3909          (i) stock of the corporation;
             3910          (ii) capital or profits of the limited partnership; or
             3911          (iii) interest in a limited liability company;
             3912          (c) the kind of retail license intended to be transferred;
             3913          (d) the address of the one or more premises to which a retail license:
             3914          (i) has been issued; and
             3915          (ii) will be transferred; and
             3916          (e) any other information the commission or department may require.
             3917          Section 74. Section 32B-8a-302 is enacted to read:
             3918          32B-8a-302. Application -- Approval process.
             3919          (1) To obtain the transfer of a retail license from a retail licensee, the transferee shall
             3920      file a transfer application with the department that includes:
             3921          (a) an application in the form provided by the department;
             3922          (b) a statement as to whether the consideration, if any, to be paid to the transferor
             3923      includes payment for any or all of the following:
             3924          (i) inventory;
             3925          (ii) fixtures; and
             3926          (iii) transfer of the retail license;
             3927          (c) a copy of the notice of intended transfer; and
             3928          (d) (i) an application fee of $300; and
             3929          (ii) a transfer fee determined in accordance with Section 32B-8a-303 .
             3930          (2) (a) (i) Before the commission may approve the transfer of a retail license, the
             3931      department shall conduct an investigation and may hold public hearings to gather information



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             3932
     and make recommendations to the commission as to whether the transfer of the retail license
             3933      should be approved.
             3934          (ii) The department shall forward the information and recommendations described in
             3935      this Subsection (2)(a) to the commission to aid in the commission's determination.
             3936          (b) Before approving a transfer, the commission shall:
             3937          (i) determine that the transferee filed a complete application;
             3938          (ii) determine that the transferee is eligible to hold the type of retail license that is to be
             3939      transferred at the premises to which the retail license would be transferred;
             3940          (iii) determine that the transferee is not delinquent in the payment of an amount
             3941      described in Subsection 32B-8a-201 (3);
             3942          (iv) determine that the transferee is not disqualified under Section 32B-1-304 ;
             3943          (v) consider the locality within which the proposed licensed premises is located,
             3944      including the factors listed in Section 32B-5-206 for the issuance of a retail license;
             3945          (vi) consider the transferee's ability to manage and operate the retail license to be
             3946      transferred, including the factors listed in Section 32B-5-202 for the issuance of a retail license;
             3947          (vii) consider the nature or type of retail licensee operation of the transferee, including
             3948      the factors listed in Section 32B-5-202 for the issuance of a retail license;
             3949          (viii) if the transfer involves consideration, determine that the transferee and transferor
             3950      have complied with Part 4, Protection of Creditors; and
             3951          (ix) consider any other factor the commission considers necessary.
             3952          (3) (a) Except as provided in Subsection (3)(b), the commission may not approve the
             3953      transfer of a retail license to premises that do not meet the proximity requirements of Section
             3954      32B-1-202 .
             3955          (b) If after a transfer of a retail license the transferee operates the same type of retail
             3956      license at the same location as did the transferor, the commission may waive or vary the
             3957      proximity requirements of Subsection 32B-1-202 (2) in considering whether to approve the
             3958      transfer under the same circumstances that the commission may waive or vary the proximity
             3959      requirements in accordance with Subsection 32B-1-202 (4) when considering whether to issue a
             3960      retail license.
             3961          Section 75. Section 32B-8a-303 is enacted to read:
             3962          32B-8a-303. Transfer fees.



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             3963
         (1) Except as otherwise provided in this section, the department shall charge the
             3964      following transfer fees:
             3965          (a) for a transfer of a retail license from a retail licensee to another person, the transfer
             3966      fee equals the initial license fee amount specified in the relevant part under Chapter 6, Specific
             3967      Retail License Act, for the type of retail license that is being transferred;
             3968          (b) for the transfer of a retail license from one premises to another premises of the
             3969      same retail licensee, the transfer fee equals the renewal fee amount specified in the relevant
             3970      part under Chapter 6, Specific Retail License Act, for the type of retail license that is being
             3971      transferred;
             3972          (c) subject to Subsections (1)(d) and (2), for a transfer described in Section
             3973      32B-8a-202 , the transfer fee equals the renewal fee amount specified in the relevant part under
             3974      Chapter 6, Specific Retail License Act, for the type of retail license that is being transferred;
             3975          (d) for a transfer of a retail license to include the parent or child of a retail licensee,
             3976      when no consideration is given for the transfer, the transfer fee is one-half of the amount
             3977      described in Subsection (1)(a); and
             3978          (e) for one of the following transfers, the transfer fee is one-half of the amount
             3979      described in Subsection (1)(a):
             3980          (i) a retail license of one spouse to the other spouse when the transfer application is
             3981      made before the entry of a final decree of divorce;
             3982          (ii) a retail license of a deceased retail licensee to:
             3983          (A) the one or more surviving partners of the deceased retail licensee;
             3984          (B) the executor, administrator, or conservator of the estate of the deceased retail
             3985      licensee; or
             3986          (C) the surviving spouse of the deceased retail licensee, if the deceased retail licensee
             3987      leaves no estate to be administered;
             3988          (iii) a retail license of a minor ward, incompetent person, or conservatee by or to the
             3989      conservator or guardian for the minor ward, incompetent person, or conservatee who is the
             3990      retail licensee;
             3991          (iv) a retail license of a debtor in a bankruptcy case by or to the trustee of a bankrupt
             3992      estate of the retail licensee;
             3993          (v) a retail license of a person for whose estate a receiver is appointed may be



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             3994
     transferred by or to a receiver of the estate of the retail licensee;
             3995          (vi) a retail license of an assignor for the benefit of creditors by or to an assignee for
             3996      the benefit of creditors of a licensee with the consent of the assignor;
             3997          (vii) a retail license transferred to a revocable living trust if the retail licensee is the
             3998      trustee of the revocable living trust;
             3999          (viii) a retail license transferred between partners when no new partner is being
             4000      licensed;
             4001          (ix) a retail license transferred between corporations whose outstanding shares of stock
             4002      are owned by the same individuals;
             4003          (x) upon compliance with Section 32B-8a-202 , a retail license to a corporation whose
             4004      entire stock is owned by:
             4005          (A) the transferor; or
             4006          (B) the spouse of the transferor;
             4007          (xi) upon compliance with Section 32B-8a-202 , a retail license to a limited liability
             4008      company whose entire membership consists of:
             4009          (A) the transferor; or
             4010          (B) the spouse of the transferor; or
             4011          (xii) a retail license transferred from a corporation to a person who owns, or whose
             4012      spouse owns, the entire stock of the corporation.
             4013          (2) If there are multiple and simultaneous transfers of retail licenses under Section
             4014      32B-8a-202 , a transfer fee described in Subsection (1)(c) is required for only one of the retail
             4015      licenses being transferred.
             4016          (3) (a) Except as provided in Subsection (3)(b), a transfer fee required under
             4017      Subsection (1) is due for a transfer subsequent to a transfer under Subsection (1)(e)(xiii) if the
             4018      subsequent transfer is of 51% of the stock in a corporation to which a retail license is
             4019      transferred by a retail licensee or the spouse of a retail licensee.
             4020          (b) If the transfer of stock described in Subsection (3)(a) is from a parent to the parent's
             4021      child or grandchild, the transfer fee is one-half of the amount described in Subsection (1)(a).
             4022          (4) Money collected from a transfer fee shall be deposited in the Liquor Control Fund.
             4023          Section 76. Section 32B-8a-401 is enacted to read:
             4024     
Part 4. Protection of Creditors



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             4025
         32B-8a-401. Notification of creditors -- Escrow -- Priority of payments.
             4026          (1) Before the filing of a transfer application with the department, if the intended
             4027      transfer of a retail license involves consideration:
             4028          (a) the transferor shall provide the transferee a list of creditors who have a claim
             4029      against the transferor;
             4030          (b) the transferee shall provide a copy of the notice of intended transfer to each creditor
             4031      on the list provided under Subsection (1)(a);
             4032          (c) the transferor and the transferee shall establish an escrow with a person who is not a
             4033      party to the transfer to act as escrow holder;
             4034          (d) the transferee shall deposit with the escrow holder the full amount of the
             4035      consideration; and
             4036          (e) the transferor and transferee shall enter into an agreement that:
             4037          (i) the consideration is deposited with the escrow holder;
             4038          (ii) requires the escrow holder to distribute the consideration within a reasonable time
             4039      after the completion of the transfer of the retail license; and
             4040          (iii) directs the escrow holder to distribute the consideration in accordance with
             4041      Subsection (2).
             4042          (2) Subject to the other requirements of this section, if a creditor with a claim against
             4043      the transferor files the claim with the escrow holder before the escrow holder is notified by the
             4044      department that the transfer is approved, the escrow holder shall distribute the consideration in
             4045      the following order:
             4046          (a) to the payment of:
             4047          (i) the United States for a claim based on income or withholding taxes; and
             4048          (ii) a claim based on a tax other than specified in Subsection 32B-8a-201 (3);
             4049          (b) to the payment of a claim for wages, salaries, or fringe benefits earned or accrued
             4050      by an employee of the transferor before the transfer or opening of the escrow for the transfer of
             4051      the retail license;
             4052          (c) to the payment of a claim of a secured creditor to the extent of the proceeds that
             4053      arise from the sale of the security;
             4054          (d) to the payment of a claim on a mechanics liens;
             4055          (e) to the payment of:



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             4056
         (i) escrow fees;
             4057          (ii) a claim for prevailing brokerage fees for services rendered; and
             4058          (iii) a claim for reasonable attorney fees for services rendered;
             4059          (f) to the payment of claims:
             4060          (i) of a landlord, to the extent of proceeds on past due rent or lease requirements;
             4061          (ii) for goods sold and delivered to the retail licensee for resale at the transferor's
             4062      licensed premises; and
             4063          (iii) for services rendered, performed, or supplied in connection with the operation of
             4064      the transferor's licensed business; and
             4065          (g) to the payment of other types of claims that are reduced to court-ordered judgments,
             4066      including a claim for court-ordered support of a minor child; and
             4067          (h) to the payment of all other claims.
             4068          Section 77. Section 32B-8a-402 is enacted to read:
             4069          32B-8a-402. Duties of escrow holder.
             4070          (1) To act as an escrow holder under Section 32B-8a-401 , a person shall comply with
             4071      Title 7, Chapter 22, Regulation of Independent Escrow Agents.
             4072          (2) Not more than 10 days after receiving a claim from a creditor, an escrow holder
             4073      shall acknowledge receipt of the claim.
             4074          (3) (a) Not more than 10 days after a retail license is transferred and before the
             4075      distribution of the consideration held by an escrow holder, the escrow holder shall advise each
             4076      creditor who files a claim against the escrow whether there is sufficient consideration in the
             4077      escrow to pay all creditors in full.
             4078          (b) If the consideration in an escrow is sufficient to pay all creditors in full, the escrow
             4079      holder shall advise each creditor of the date on or before which payment will be made.
             4080          (c) If there are not sufficient assets to pay all creditors in full, the escrow holder shall
             4081      advise each creditor who filed a claim of the following:
             4082          (i) the total assets placed in escrow with the escrow holder;
             4083          (ii) the nature of each asset;
             4084          (iii) the name of each creditor who filed a claim against the escrow and the amount of
             4085      the claim;
             4086          (iv) the amount the escrow holder proposes to pay each creditor; and



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             4087
         (v) the date on or before which the escrow holder will pay each creditor.
             4088          (4) An escrow holder may not release money in the escrow in exchange for:
             4089          (a) a promissory note; or
             4090          (b) any other consideration of less value to the creditors than the money exchanged.
             4091          (5) If sufficient assets are not available in the escrow for the payment of the claims in
             4092      full, the escrow holder shall pay the claims pro rata.
             4093          (6) If the retail licensee who transfers the retail license disputes a claim, the escrow
             4094      holder shall:
             4095          (a) notify the creditor making the claim;
             4096          (b) retain the amount to be paid to the creditor under this section for a period of 25
             4097      days; and
             4098          (c) to the extent that creditors do not successfully recover the amount described in
             4099      Subsection (6)(b) in accordance with this part, pay the amount to the retail licensee.
             4100          (7) An escrow holder shall distribute the money in the escrow account after the
             4101      payments made under Subsections 32B-8a-401 (2) and this section within a reasonable time
             4102      after the completion of the transfer of the retail license.
             4103          Section 78. Section 32B-8a-403 is enacted to read:
             4104          32B-8a-403. Statement by transferee.
             4105          (1) Within 30 days after the filing of a transfer application under Section 32B-8a-302
             4106      for transfer of a retail license, the transferee shall file with the department a statement executed
             4107      under penalty of perjury that the consideration as set forth in the escrow agreement required by
             4108      Section 32B-8a-401 is deposited with the escrow holder.
             4109          (2) At the time the statement described in Subsection (1) is filed with the department,
             4110      the transferee shall submit a copy of the statement to:
             4111          (a) the transferee; and
             4112          (b) the escrow holder.
             4113          (3) The department may extend the 30-day period specified by this section for a period
             4114      not to exceed an additional 30 days, except that a retail license may not be transferred until the
             4115      statement required by this section is received by the department.
             4116          (4) This section does not apply to a transfer for which a guaranty of payment is filed
             4117      pursuant to Section 32B-8a-404 .



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             4118
         Section 79. Section 32B-8a-404 is enacted to read:
             4119          32B-8a-404. When escrow not required.
             4120          (1) Notwithstanding the other provisions of this part, an escrow is not required to be
             4121      established in connection with the transfer of a retail license if:
             4122          (a) a business entity files with the department a guaranty of full, prompt, and faithful
             4123      payment of all claims of a creditor of the retail licensee; and
             4124          (b) the guaranty described in Subsection (1)(a) is accepted in writing by the creditors
             4125      listed in Subsection 32B-8a-401 (2).
             4126          (2) A transfer of a retail license described in Subsection (1) is not considered complete
             4127      until:
             4128          (a) the guarantor pays all creditors' claims in full; and
             4129          (b) the guarantor files with the department a statement executed under penalty of
             4130      perjury that all conditions of the transfer have been satisfied.
             4131          (3) Payment of a claim by a guarantor shall be made in United States currency or by
             4132      certified check in a manner acceptable to the creditors.
             4133          (4) This section applies only in the case of a transfer in which the guarantor business
             4134      entity has a net worth on a consolidated basis, according to its most recent audited financial
             4135      statement, of not less than $5,000,000.
             4136          Section 80. Section 32B-8a-501 is enacted to read:
             4137     
Part 5. Prohibited Activities

             4138          32B-8a-501. License not to be pledged as security -- Prohibited transfers.
             4139          (1) A retail licensee may not enter into any agreement under which the retail licensee
             4140      pledges the retail license as security for a loan or as security for the fulfillment of any
             4141      agreement.
             4142          (2) A retail licensee may not transfer a retail license if the transfer is to:
             4143          (a) satisfy a loan or to fulfill an agreement entered into more than 90 days preceding
             4144      the date on which the transfer application is filed;
             4145          (b) gain or establish a preference to or for any creditor of the transferor, except as
             4146      provided by Section 32B-8a-202 ; or
             4147          (c) defraud or injure a creditor of the transferor.
             4148          (3) A retail licensee may not transfer a retail license except in accordance with this



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             4149
     chapter.
             4150          Section 81. Section 32B-8a-502 is enacted to read:
             4151          32B-8a-502. Effect of transfer in violation of this chapter.
             4152          (1) If a retail license is transferred in violation of this chapter, the commission may:
             4153          (a) void the transfer; and
             4154          (b) require the retail license to be forfeited.
             4155          (2) Subsection (1) is in addition to any other penalty under this title that is applicable to
             4156      the person who violates this chapter.
             4157          Section 82. Section 32B-9-204 (Effective 07/01/11) is amended to read:
             4158           32B-9-204 (Effective 07/01/11). General operational requirements for an event
             4159      permit.
             4160          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or
             4161      furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
             4162      with this title and rules of the commission.
             4163          (b) Failure to comply as provided in Subsection (1)(a):
             4164          (i) may result in:
             4165          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             4166      Enforcement Act, against:
             4167          (I) an event permittee;
             4168          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             4169      product at the event; or
             4170          (III) any combination of the persons listed in this Subsection (1)(b);
             4171          (B) immediate revocation of the event permit;
             4172          (C) forfeiture of a bond; or
             4173          (D) immediate seizure of an alcoholic product present at the event; and
             4174          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
             4175      event permit for a period of three years from the date of revocation of the event permit.
             4176          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
             4177      permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206 .
             4178          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             4179      the specific type of special use permit held by the special use permittee, the relevant part



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             4180
     governs.
             4181          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
             4182      event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
             4183      relevant part under this chapter for the type of event permit that is held by the event permittee.
             4184          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             4185      event permit held by an event permittee refers to "event permittee," a person involved in the
             4186      storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
             4187      event permit is issued is subject to the same requirement or prohibition.
             4188          (3) An event permittee shall display a copy of the event permit in a prominent place in
             4189      the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
             4190          (4) An event permittee may not on the premises of the event:
             4191          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             4192      Chapter 10, Part 11, Gambling;
             4193          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             4194      Part 11, Gambling; or
             4195          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             4196      the risking of something of value for a return or for an outcome when the return or outcome is
             4197      based upon an element of chance, excluding the playing of an amusement device that confers
             4198      only an immediate and unrecorded right of replay not exchangeable for value.
             4199          (5) An event permittee may not knowingly allow a person at an event to, in violation of
             4200      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             4201      Paraphernalia Act:
             4202          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             4203      58-37-2 ; or
             4204          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             4205      Section 58-37a-3 .
             4206          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
             4207      purchases from:
             4208          (a) a beer wholesaler licensee;
             4209          (b) a beer retailer; or
             4210          (c) a small brewer.



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House Floor Amendments 3-9-2011 je/po
             4211
         (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
             4212      consumption of an alcoholic product purchased for an event in a location other than that
             4213      described in the application and designated on the event permit unless the event permittee first
             4214      applies for and receives approval from the commission for a change of location.
             4215          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
             4216      furnish beer for on-premise consumption:
             4217          (i) in an open original [package] container; and
             4218          (ii) in a [package] container on draft.
             4219          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
             4220      Subsection (8)(a):
             4221          (i) in a size of [package] container that exceeds two liters; or
             4222          (ii) to an individual patron in a size of [package] container that exceeds one liter.
             4223          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
             4224      than the cost of the alcoholic product to the event permittee.
             4225          (b) An event permittee may not sell an alcoholic product at a discount price on any date
             4226      or at any time.
             4227          [(b)] (c) An event permittee may not sell or offer for sale an alcoholic product at a price
             4228      that encourages over consumption or intoxication.
             4229          [(c)] (d) An event permittee may not sell or offer for sale an alcoholic product at a
             4230      special or reduced price for only certain hours of the day of an event.
             4231          [(d)] (e) An event permittee may not sell, offer for sale, or furnish more than one
             4232      alcoholic product at the price of a single alcoholic product.
             4233          (f) An event permittee, or a person operating, selling, offering, or furnishing an
             4234      alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or
             4235      unlimited number of alcoholic products during a set period for a fixed price, unless:
             4236          (i) the alcoholic product is served to a patron H. [ who is seated ] at a seated event .H ;
             4237          (ii) food is available whenever the alcoholic product is sold, offered for sale, or
             4238      furnished; and
             4239          (iii) no person advertises that at the event a person may be sold or furnished an
             4240      indefinite or unlimited number of alcoholic products during a set period for a fixed price.
             4241          [(e)] (g) An event permittee may not engage in a public promotion involving or



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             4242
     offering a free alcoholic product to the general public.
             4243          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
             4244          (a) a minor;
             4245          (b) a person actually, apparently, or obviously intoxicated;
             4246          (c) a known interdicted person; or
             4247          (d) a known habitual drunkard.
             4248          (11) (a) An alcoholic product is considered under the control of the event permittee
             4249      during an event.
             4250          (b) A patron at an event may not bring an alcoholic product onto the premises of the
             4251      event.
             4252          (12) An event permittee may not permit a patron to carry from the premises an open
             4253      [package] container that:
             4254          (a) is used primarily for drinking purposes; and
             4255          (b) contains an alcoholic product.
             4256          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
             4257      an event is considered under the supervision and direction of the event permittee.
             4258          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
             4259      an event may not, while on duty:
             4260          (i) consume an alcoholic product; or
             4261          (ii) be intoxicated.
             4262          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
             4263      event.
             4264          (15) The location specified in an event permit may not be changed without prior
             4265      written approval of the commission.
             4266          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
             4267      attempt in any way to dispose of the event permit to another person whether for monetary gain
             4268      or not.
             4269          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
             4270      consumption of an alcoholic product during a period that:
             4271          (i) begins at 1 a.m.; and
             4272          (ii) ends at 9:59 a.m.



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             4273
         (b) This Subsection (17) does not preclude a local authority from being more restrictive
             4274      with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
             4275      product at an event.
             4276          (18) A patron may have no more than one alcoholic product of any kind at a time
             4277      before the patron.
             4278          (19) (a) An event permittee shall display, in a prominent place, a sign in large letters
             4279      that consists of text in the following order:
             4280          (i) a header that reads: "WARNING";
             4281          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             4282      can cause birth defects and permanent brain damage for the child.";
             4283          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             4284      [insert most current toll-free number] with questions or for more information.";
             4285          (iv) a header that reads: "WARNING"; and
             4286          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             4287      serious crime that is prosecuted aggressively in Utah."
             4288          (b) (i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different
             4289      font style than the text described in Subsections (19)(a)(iv) and (v).
             4290          (ii) The warning statements in the sign described in Subsection (19)(a) shall be in the
             4291      same font size.
             4292          (c) The Department of Health shall work with the commission and department to
             4293      facilitate consistency in the format of a sign required under this section.
             4294          Section 83. Section 32B-9-304 (Effective 07/01/11) is amended to read:
             4295           32B-9-304 (Effective 07/01/11). Specific permitting requirements for single event
             4296      permit.
             4297          (1) To obtain a single event permit, in addition to complying with Part 2, Event
             4298      Permitting General Provisions, an entity described in Subsection 32B-9-303 (2)(a) shall state in
             4299      its written application:
             4300          (a) the purpose of the entity described in Subsection 32B-9-303 (2)(a);
             4301          (b) the time period under Subsection 32B-9-303 (3)(a)(i)(A) or (B) for which the entity
             4302      is applying; and
             4303          (c) if submitting the first request for a single event permit in a calendar year, whether it



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             4304
     is requesting to be under Subsection 32B-9-303 (4)(a) or (b).
             4305          (2) The application fee for a single event permit is [$100] $125.
             4306          (3) The bond amount required for a single event permit is the penal sum of $1,000.
             4307          Section 84. Section 32B-9-305 (Effective 07/01/11) is amended to read:
             4308           32B-9-305 (Effective 07/01/11). Specific operational requirements for single event
             4309      permit.
             4310          (1) (a) In addition to complying with Section 32B-9-204 , a single event permittee or a
             4311      person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the
             4312      event shall comply with this section.
             4313          (b) Failure to comply as provided in Subsection (1)(a):
             4314          (i) may result in:
             4315          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             4316      Enforcement Act, against:
             4317          (I) a single event permittee;
             4318          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             4319      product at the event; or
             4320          (III) any combination of persons listed in this Subsection (1)(b);
             4321          (B) immediate revocation of the single event permit;
             4322          (C) forfeiture of a bond; or
             4323          (D) immediate seizure of an alcoholic product present at the event; and
             4324          (ii) if the single event permit is revoked, disqualifies the single event permittee from
             4325      applying for a single event permit or temporary beer event permit for a period of three years
             4326      from the date of revocation of the single event permit.
             4327          (c) An alcoholic product seized under this Subsection (1) shall be returned to the single
             4328      event permittee after an event if forfeiture proceedings are not instituted under Section
             4329      32B-4-206 .
             4330          (2) (a) A single event permittee shall make and maintain an expense and revenue
             4331      ledger or record showing:
             4332          (i) expenditures made for:
             4333          (A) liquor;
             4334          (B) beer;



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             4335
         (C) set-ups; and
             4336          (D) an ingredient or component of an alcoholic product other than a set-up; and
             4337          (ii) the revenue from the sale of an alcoholic product.
             4338          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             4339      accordance with this Subsection (2).
             4340          (3) A single event permittee shall purchase liquor stored, sold, offered for sale,
             4341      furnished, or consumed at an event from a state store or package agency.
             4342          (4) (a) A single event permittee may not sell, offer for sale, or furnish a primary
             4343      spirituous liquor in a quantity that exceeds 1.5 ounces per beverage, except that additional
             4344      spirituous liquor may be used in a beverage if:
             4345          (i) used as a secondary flavoring ingredient;
             4346          (ii) used in conjunction with the primary spirituous liquor;
             4347          (iii) the secondary ingredient is not the only spirituous liquor in the beverage; and
             4348          (iv) subject to Subsection 32B-9-204 (18):
             4349          [(iv)] (A) a patron has no more than 2.5 ounces of spirituous liquor at a time before the
             4350      patron; and
             4351          [(v)] (B) a patron has no more than one spirituous liquor drink at a time before the
             4352      patron.
             4353          (b) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             4354      system.
             4355          (5) (a) A single event permittee may sell, offer for sale, or furnish wine by the glass or
             4356      an individual portion, except that a glass or individual portion may not exceed five ounces.
             4357          (b) A single event permittee may furnish an individual portion served to a patron in
             4358      more than one glass if the total amount of wine does not exceed five ounces.
             4359          (c) An individual portion of wine is considered to be one alcoholic product under
             4360      Subsection 32B-9-204 [(12)](18).
             4361          (d) A single event permittee may sell, offer for sale, or furnish wine in a [package]
             4362      container not exceeding 1.5 liters at a price fixed by the commission.
             4363          (6) A single event permittee may sell, offer for sale, or furnish heavy beer in an original
             4364      [package] container at a price fixed by the commission, except that the original [package]
             4365      container may not exceed one liter.



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             4366
         (7) A single event permittee may sell, offer for sale, or furnish a flavored malt beverage
             4367      in an original [package] container at a price fixed by the commission, except that the original
             4368      [package] container may not exceed one liter.
             4369          (8) [(a)] A single event permittee may sell liquor only at a price fixed by the
             4370      commission.
             4371          [(b) A single event permittee may not sell liquor at a discount price on any date or at
             4372      any time.]
             4373          (9) A single event permittee may perform a service and assess a service charge as
             4374      authorized by commission rule for liquor purchased at an event.
             4375          Section 85. Section 32B-9-405 (Effective 07/01/11) is amended to read:
             4376           32B-9-405 (Effective 07/01/11). Specific permitting requirements for temporary
             4377      beer event permit issued by commission.
             4378          (1) To obtain a temporary beer event permit, in addition to complying with Part 2,
             4379      Event Permitting General Provisions, a person shall state in the person's written application the
             4380      purpose of the event for which the person seeks a temporary beer event permit.
             4381          (2) The application fee for a beer permit is [$75] $100.
             4382          (3) The bond amount required for a beer permit is the penal sum of $500.
             4383          Section 86. Section 32B-10-303 (Effective 07/01/11) is amended to read:
             4384           32B-10-303 (Effective 07/01/11). Specific application and renewal requirements
             4385      for public service permit.
             4386          (1) To obtain a public service permit, in addition to complying with Section
             4387      32B-10-202 , a person shall submit to the department:
             4388          (a) a statement of the total of regularly numbered flights, trains, buses, boats, or other
             4389      types of public conveyance for which the person plans to use the special use permit;
             4390          (b) a floor plan of any room or facility in which the person plans to establish a
             4391      hospitality room where the sale, offer for sale, or furnishing of an alcoholic product is made to
             4392      a patron then in transit, using the host company's airline, railroad, bus, boat, or other public
             4393      conveyance; and
             4394          (c) evidence of proximity of a proposed hospitality room to the arrival and departure
             4395      area used by a person traveling on the host company's airline, railroad, bus, boat, or other
             4396      public conveyance.



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             4397
         (2) (a) The nonrefundable application fee for a public service permit is [$50] $75.
             4398          (b) The initial permit fee for a public service permit is [$200] $250.
             4399          (c) The bond amount required for a public service permittee is the penal sum of $1,000.
             4400          (3) (a) To renew a public service permit, a person shall comply with Section
             4401      32B-10-203 .
             4402          (b) The renewal fee for a public service permit is $30 for each regularly numbered
             4403      passenger airplane flight, passenger train, bus, boat, or any other regularly scheduled public
             4404      conveyance upon which an alcoholic product is sold, offered for sale, or furnished.
             4405          Section 87. Section 32B-10-304 (Effective 07/01/11) is amended to read:
             4406           32B-10-304 (Effective 07/01/11). Specific operational requirements for a public
             4407      service permit.
             4408          (1) (a) In addition to complying with Section 32B-10-206 , a public service permittee
             4409      and staff of the public service permittee shall comply with this section.
             4410          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             4411      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             4412          (i) a public service permittee;
             4413          (ii) individual staff of a public service permittee; or
             4414          (iii) both a public service permittee and staff of the public service permittee.
             4415          (2) (a) A public service permittee whose public conveyances operate on an interstate
             4416      basis may do the following:
             4417          (i) purchase an alcoholic product outside of the state;
             4418          (ii) bring an alcoholic product purchased outside of the state into the state; and
             4419          (iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state
             4420      to a passenger traveling on the public service permittee's public conveyance for consumption
             4421      while en route on the public conveyance.
             4422          (b) A public service permittee whose public conveyance operates solely within the
             4423      state, to sell, offer for sale, or furnish to a passenger traveling on the public service permittee's
             4424      public conveyance for consumption while en route on the public conveyance, shall purchase:
             4425          (i) liquor from a state store or package agency; and
             4426          (ii) beer from a beer wholesaler licensee.
             4427          (3) (a) A public service permittee may establish a hospitality room in which an



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             4428
     alcoholic product may be stored, sold, offered for sale, furnished, and consumed, if:
             4429          (i) the room is located within a depot, terminal, or similar facility adjacent to and
             4430      servicing the public service permittee's airline, railroad, bus, boat, or other public conveyance;
             4431          (ii) the room is completely enclosed and the interior is not visible to the public;
             4432          (iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a
             4433      person:
             4434          (A) then in transit using the host company's airline, railroad, bus line, or other public
             4435      conveyance; and
             4436          (B) holding a valid boarding pass or similar travel document issued by the host
             4437      company; and
             4438          (iv) (A) liquor is purchased from:
             4439          (I) a state store; or
             4440          (II) a package agency; and
             4441          (B) beer is purchased from a beer wholesaler licensee.
             4442          (b) (i) A public service permittee operating a hospitality room shall display in a
             4443      prominent place in the hospitality room, a sign in large letters [stating: "Warning: Driving
             4444      under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in
             4445      Utah."] that consists of text in the following order:
             4446          (A) a header that reads: "WARNING";
             4447          (B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             4448      can cause birth defects and permanent brain damage for the child.";
             4449          (C) a statement in smaller font that reads: "Call the Utah Department of Health at
             4450      [insert most current toll-free number] with questions or for more information.";
             4451          (D) a header that reads: "WARNING"; and
             4452          (E) a warning statement that reads: "Driving under the influence of alcohol or drugs is
             4453      a serious crime that is prosecuted aggressively in Utah."
             4454          (ii) (A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a
             4455      different font style than the text described in Subsections (3)(b)(i)(D) and (E).
             4456          (B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the
             4457      same font size.
             4458          (iii) The Department of Health shall work with the commission and department to



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             4459
     facilitate consistency in the format of a sign required under this section.
             4460          (c) A hospitality room shall be operated in accordance with this chapter and rules
             4461      adopted by the commission.
             4462          Section 88. Section 32B-10-403 (Effective 07/01/11) is amended to read:
             4463           32B-10-403 (Effective 07/01/11). Specific application requirements for industrial
             4464      or manufacturing use permit.
             4465          (1) To obtain an industrial or manufacturing use permit, in addition to complying with
             4466      Section 32B-10-202 , a person shall submit to the department:
             4467          (a) a floor plan of the immediate area within the premises in which the person proposes
             4468      that an alcoholic product be used, mixed, stored, sold, offered for sale, furnished, or consumed;
             4469      and
             4470          (b) if the person is applying for an industrial or manufacturing use permit to produce
             4471      gasohol or any alcoholic product, evidence that the person has:
             4472          (i) an approved Notice of Registration of Distilled Spirits Plant; and
             4473          (ii) the appropriate permit from the federal Alcohol and Tobacco Tax and Trade
             4474      Bureau.
             4475          (2) (a) The nonrefundable application fee for an industrial or manufacturing use permit
             4476      is [$50] $75.
             4477          (b) The one-time special use permit fee for an industrial or manufacturing use permit is
             4478      [$200] $250.
             4479          (c) The bond amount required for an industrial or manufacturing use permit is the
             4480      penal sum of $1,000.
             4481          Section 89. Section 32B-10-404 (Effective 07/01/11) is amended to read:
             4482           32B-10-404 (Effective 07/01/11). Specific operational requirements for industrial
             4483      or manufacturing use permit.
             4484          (1) (a) In addition to complying with Section 32B-10-206 , an industrial or
             4485      manufacturing use permittee and staff of the industrial or manufacturing use permittee shall
             4486      comply with this section.
             4487          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             4488      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             4489          (i) an industrial or manufacturing use permittee;



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             4490
         (ii) individual staff of an industrial or manufacturing use permittee; or
             4491          (iii) an industrial or manufacturing use permittee and staff of the industrial or
             4492      manufacturing use permittee.
             4493          (2) An industrial or manufacturing use permittee may produce for lawful use and sale
             4494      the following:
             4495          (a) vinegar;
             4496          (b) preserved nonintoxicating cider;
             4497          (c) a food preparation;
             4498          (d) a United States Pharmacopoeia or national formulary preparation in conformity
             4499      with Title 58, Chapters 17b, 37, 37a, 37b, and 37c, if the preparation:
             4500          (i) conforms to standards established by:
             4501          (A) the Department of Agriculture and Food; and
             4502          (B) the Department of Health; and
             4503          (ii) contains no more alcohol than is necessary to preserve or extract the medicinal,
             4504      flavoring, or perfumed properties of the treated substances; and
             4505          (e) wood and denatured alcohol if manufactured in compliance with the formulas and
             4506      regulations under Title 27, C.F.R. Parts 19, 20, and 21.
             4507          (3) (a) An industrial or manufacturing use permittee that produces patent or proprietary
             4508      medicines containing alcohol may sell or offer for sale the medicines in the original and
             4509      unbroken [package] container if the medicine contains sufficient medication to prevent its use
             4510      as an alcoholic product.
             4511          (b) An industrial or manufacturing use permittee described in this Subsection (3) shall,
             4512      upon request by the department, provide a sufficient sample of the medicine to enable the
             4513      department to have the medicine analyzed for purposes of this section.
             4514          Section 90. Section 32B-10-503 (Effective 07/01/11) is amended to read:
             4515           32B-10-503 (Effective 07/01/11). Specific application requirements for scientific
             4516      or educational use permit.
             4517          (1) To obtain a scientific or educational use permit, a person shall comply with Section
             4518      32B-10-202 .
             4519          (2) The one-time special use permit fee for a scientific or educational use permit is
             4520      [$100] $125.



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             4521
         Section 91. Section 32B-10-603 (Effective 07/01/11) is amended to read:
             4522           32B-10-603 (Effective 07/01/11). Specific application requirements for religious
             4523      wine use permit.
             4524          (1) To purchase an alcoholic product from the department at the department's cost plus
             4525      freight charges, a religious organization shall obtain a religious wine use permit.
             4526          (2) To obtain a religious wine permit, a person shall comply with Section 32B-10-202 .
             4527          (3) The one-time special use permit fee for a religious wine use permit is [$100] $125.
             4528          Section 92. Section 32B-11-201 (Effective 07/01/11) is amended to read:
             4529           32B-11-201 (Effective 07/01/11). Commission's power to issue a manufacturing
             4530      license -- Certificates of approval.
             4531          (1) (a) Except as provided in Section 32B-11-202 , before a person may manufacture an
             4532      alcoholic product in this state, the person shall obtain an alcoholic product manufacturing
             4533      license issued by the commission in accordance with this part.
             4534          (b) A separate license is required for each place of storage, sale, and manufacture of an
             4535      alcoholic product.
             4536          (c) A violation of this Subsection (1) is a class B misdemeanor.
             4537          (2) The commission may issue an alcoholic product manufacturing license to a
             4538      manufacturer whose business is located in this state for the storage, sale, and manufacture of an
             4539      alcoholic product for each type of manufacturing license provided by this chapter.
             4540          (3) The types of manufacturing licenses issued under this chapter are known as:
             4541          (a) a winery manufacturing license;
             4542          (b) a distillery manufacturing license; and
             4543          (c) a brewery manufacturing license.
             4544          (4) (a) A brewer located outside the state is not required to be licensed under this
             4545      chapter.
             4546          (b) A brewer described in Subsection (4)(a) shall obtain a certificate of approval from
             4547      the department before selling or delivering:
             4548          (i) beer to a beer wholesaler licensee in this state;
             4549          (ii) a flavored malt beverage to:
             4550          (A) the department; or
             4551          (B) a military installation; or



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             4552
         (iii) if a small brewer, beer to one of the following in the state:
             4553          (A) a beer wholesaler licensee;
             4554          (B) a beer retailer; or
             4555          (C) an event permittee.
             4556          (c) To obtain a certificate of approval, a brewer shall submit to the department:
             4557          (i) a written application in a form prescribed by the department;
             4558          (ii) a nonrefundable [$50] $75 application fee;
             4559          (iii) an initial certificate of approval fee of [$250] $300 that is refundable if a
             4560      certificate of approval is not issued;
             4561          (iv) evidence of authority from the federal Alcohol and Tobacco Tax and Trade Bureau
             4562      of the United States Department of the Treasury to brew beer, heavy beer, or a flavored malt
             4563      beverage; and
             4564          (v) any other information the commission or department may require.
             4565          (d) (i) [A] One of the following shall sign and verify a written application under this
             4566      Subsection (4) [shall be signed and verified] by oath or affirmation [by]:
             4567          (A) a partner if the brewer is a partnership; or
             4568          (B) an executive officer, manager, or person specifically authorized by a corporation or
             4569      limited liability company to sign the application.
             4570          (ii) A brewer filing an application shall attach to the application written evidence of the
             4571      authority of the person described in Subsection (4)(d)(i) to sign the application.
             4572          (e) (i) A certificate of approval under this Subsection (4) expires on December 31 of
             4573      each year.
             4574          (ii) A brewer desiring to renew its certificate of approval shall submit to the
             4575      department by no later than November 30 of the year the certificate of approval expires:
             4576          (A) a completed renewal application in the form prescribed by the department; and
             4577          (B) a renewal [feel] fee of [$200] $250.
             4578          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4579      certificate of approval effective on the date the existing certificate of approval expires.
             4580          (5) (a) An importer or supplier of beer, heavy beer, or flavored malt beverages who is
             4581      not required to be licensed under this title shall obtain a certificate of approval from the
             4582      department before selling or delivering:



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             4583
         (i) beer to a beer wholesaler licensee in this state; or
             4584          (ii) heavy beer or a flavored malt beverage to:
             4585          (A) the department; or
             4586          (B) a military installation.
             4587          (b) To obtain a certificate of approval, an importer or supplier described in Subsection
             4588      (5)(a) shall submit to the department:
             4589          (i) a written application in a form prescribed by the department;
             4590          (ii) a nonrefundable $75 application fee;
             4591          (iii) an initial certificate of approval fee of $300 that is refundable if a certificate of
             4592      approval is not issued;
             4593          (iv) evidence of authority from the federal Alcohol and Tobacco Tax and Trade Bureau
             4594      of the United States Department of the Treasury to brew beer, heavy beer, or a flavored malt
             4595      beverage; and
             4596          (v) any other information the commission or department may require.
             4597          (c) (i) One of the following shall sign and verify a written application under this
             4598      Subsection (5) by oath or affirmation:
             4599          (A) a partner if the importer or supplier is a partnership; or
             4600          (B) an executive officer, manager, or person specifically authorized by a corporation or
             4601      limited liability company to sign the application.
             4602          (ii) An importer or supplier filing an application under this Subsection (5) shall attach
             4603      to the application written evidence of the authority of the person described in Subsection
             4604      (5)(c)(i) to sign the application.
             4605          (d) (i) A certificate of approval under this Subsection (5) expires on December 31 of
             4606      each year.
             4607          (ii) An importer or supplier desiring to renew its certificate of approval shall submit to
             4608      the department by no later than November 30 of the year the certificate of approval expires:
             4609          (A) a completed renewal application in the form prescribed by the department; and
             4610          (B) a renewal fee of $250.
             4611          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4612      certificate of approval effective on the date the existing certificate of approval expires.
             4613          (6) (a) Subject to Subsection (7), a brewer, importer, or supplier required to hold a



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             4614
     certificate of approval under this section may not distribute beer in this state except under a
             4615      written agreement with a beer wholesaler licensee in this state.
             4616          (b) An agreement described in Subsection (6)(a) shall:
             4617          (i) create a restricted exclusive sales territory that is mutually agreed upon by the
             4618      persons entering into the agreement;
             4619          (ii) designate the one or more brands that may be distributed in the sales territory; and
             4620          (iii) set forth the exact geographical area of the sales territory.
             4621          (c) A brewer, importer of beer, or supplier of beer may have more than one agreement
             4622      described in this Subsection (6) if each brand of the brewer, importer, or supplier distributed in
             4623      the state is covered by one exclusive sales territory.
             4624          (d) A brewer, importer of beer, or supplier of beer may not enter into an agreement
             4625      with more than one beer wholesaler licensee to distribute the same brand of beer in the same
             4626      sales territory or any portion of the sales territory.
             4627          (7) A small brewer is not subject to the requirements of Subsection (6).
             4628          Section 93. Section 32B-11-203 (Effective 07/01/11) is amended to read:
             4629           32B-11-203 (Effective 07/01/11). Application requirements for a manufacturing
             4630      license.
             4631          To obtain an alcoholic product manufacturing license, a person shall submit to the
             4632      department:
             4633          (1) a written application in a form prescribed by the department;
             4634          (2) a nonrefundable application fee of [$250] $300;
             4635          (3) an initial license fee of [$3,250] $3,800:
             4636          (a) unless otherwise provided in this chapter; and
             4637          (b) that is refundable if a license is not issued;
             4638          (4) written consent of the local authority;
             4639          (5) a statement of the purpose for which the person has applied for the manufacturing
             4640      license;
             4641          (6) evidence that the person is authorized by the United States to manufacture an
             4642      alcoholic product;
             4643          (7) a bond as specified by Section 32B-11-207 ;
             4644          (8) evidence that the person is carrying public liability insurance in an amount and



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             4645
     form satisfactory to the department;
             4646          (9) a signed consent form stating that the manufacturing licensee will permit any
             4647      authorized representative of the commission, department, or any law enforcement officer to
             4648      have unrestricted right to enter the licensed premises;
             4649          (10) if the person is an entity, proper verification evidencing that a person who signs
             4650      the application is authorized to sign on behalf of the entity; and
             4651          (11) any other information the commission or department may require.
             4652          Section 94. Section 32B-11-204 (Effective 07/01/11) is amended to read:
             4653           32B-11-204 (Effective 07/01/11). Renewal requirements for a manufacturing
             4654      license.
             4655          (1) A manufacturing license expires on December 31 of each year.
             4656          (2) To renew a manufacturing license, a person shall submit by no later than November
             4657      30 of the year the license expires:
             4658          (a) a completed renewal application to the department, in a form prescribed by the
             4659      department; and
             4660          (b) a renewal fee in the following amount of:
             4661          (i) [$2,500] $2,900, except for a wine manufacturing license described in Subsection
             4662      (2)(b)(ii); or
             4663          (ii) [$1,200] $1,400 for a winery manufacturing license if the winery manufacturing
             4664      licensee produces less than 20,000 gallons of wine in the calendar year preceding the year in
             4665      which the manufacturing licensee seeks renewal.
             4666          (3) Failure to meet the renewal requirements results in an automatic forfeiture of a
             4667      manufacturing license effective on the date the existing manufacturing license expires.
             4668          Section 95. Section 32B-11-503 (Effective 07/01/11) is amended to read:
             4669           32B-11-503 (Effective 07/01/11). Specific authority and operational requirements
             4670      for brewery manufacturing license.
             4671          (1) A brewery manufacturing license allows a brewery manufacturing licensee to:
             4672          (a) store, manufacture, brew, transport, or export beer, heavy beer, and flavored malt
             4673      beverages;
             4674          (b) sell heavy beer and a flavored malt beverage to:
             4675          (i) the department;



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             4676
         (ii) a military installation; or
             4677          (iii) an out-of-state customer;
             4678          (c) sell beer to a beer wholesaler licensee;
             4679          (d) in the case of a small brewer, in accordance with Subsection (5), sell beer
             4680      manufactured by the small brewer to:
             4681          (i) a retail licensee;
             4682          (ii) an off-premise beer retailer; or
             4683          (iii) an event permittee; and
             4684          (e) warehouse on its premises an alcoholic product that the brewery manufacturing
             4685      licensee manufactures or purchases for manufacturing purposes.
             4686          (2) A brewery manufacturing licensee may not sell the following to a person within the
             4687      state except the department or a military installation:
             4688          (a) heavy beer; or
             4689          (b) a flavored malt beverage.
             4690          (3) If considered necessary, the commission or department may require:
             4691          (a) the alteration of the plant, equipment, or licensed premises;
             4692          (b) the alteration or removal of any unsuitable alcoholic product-making equipment or
             4693      material;
             4694          (c) a brewery manufacturing licensee to clean, disinfect, ventilate, or otherwise
             4695      improve the sanitary and working conditions of the plant, licensed premises, and equipment; or
             4696          (d) that a record pertaining to the materials and ingredients used in the manufacture of
             4697      an alcoholic product be available to the commission or department upon request.
             4698          (4) A brewery manufacturing licensee may not permit any beer, heavy beer, or flavored
             4699      malt beverage to be consumed on the licensed premises, except under the circumstances
             4700      described in this Subsection (4).
             4701          (a) A brewery manufacturing licensee may allow its off-duty staff to consume beer,
             4702      heavy beer, or a flavored malt beverage on its premises without charge.
             4703          (b) A brewery manufacturing licensee may allow a person who can lawfully purchase
             4704      the following for wholesale or retail distribution to consume a bona fide sample of the brewery
             4705      manufacturing licensee's product on the licensed premises:
             4706          (i) beer;



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             4707
         (ii) heavy beer; or
             4708          (iii) a flavored malt beverage.
             4709          (c) (i) A brewery manufacturing licensee may operate on its licensed premises a retail
             4710      facility allowing consumption on premises of beer in a bottle or on draft if food is also
             4711      available.
             4712          (ii) A retail facility located on the licensed premises of a brewery manufacturing
             4713      licensee shall be operated or supervised by the brewery manufacturing licensee.
             4714          (iii) In operating a retail facility under this Subsection (4)(c), a brewery manufacturing
             4715      licensee shall comply with the requirements of Chapter 7, Part 2, Off-premise Beer Retailer
             4716      Local Authority.
             4717          (5) (a) A small brewer shall own, lease, or maintain and control a warehouse facility
             4718      located in this state for the storage of beer to be sold to a person described in Subsection (1)(d)
             4719      if the small brewer:
             4720          (i) (A) (I) is located in this state; and
             4721          (II) holds a brewery manufacturing license; or
             4722          (B) (I) is located outside this state; and
             4723          (II) holds a certificate of approval to sell beer in this state; and
             4724          (ii) sells beer manufactured by the small brewer directly to a person described in
             4725      Subsection (1)(d).
             4726          (b) A small brewer may not sell beer to a person described in Subsection (1)(d) unless
             4727      the beer:
             4728          (i) is manufactured by the small brewer; and
             4729          (ii) is first placed in the small brewer's warehouse facility in this state.
             4730          (c) (i) A small brewer warehouse shall make and maintain complete beer importation,
             4731      inventory, tax, distribution, sales records, and other records as the department and State Tax
             4732      Commission may require.
             4733          (ii) The records described in Subsection (5)(c)(i) are subject to inspection by:
             4734          (A) the department; and
             4735          (B) the State Tax Commission.
             4736          (iii) Section 32B-1-205 applies to a record required to be made or maintained in
             4737      accordance with this Subsection (5), except that the provision is considered to include an action



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             4738
     described in Section 32B-1-205 made for the purpose of deceiving the State Tax Commission,
             4739      or an official or employee of the State Tax Commission.
             4740          (6) Subject to Subsection (7):
             4741          (a) A brewery manufacturing licensee may not sell beer in this state except under a
             4742      written agreement with a beer wholesaler licensee in this state.
             4743          (b) An agreement described in Subsection (6)(a) shall:
             4744          (i) create a restricted exclusive sales territory that is mutually agreed upon by the
             4745      persons entering into the agreement;
             4746          (ii) designate the one or more brands that may be distributed in the sales territory; and
             4747          (iii) set forth the exact geographical area of the sales territory.
             4748          (c) A brewery manufacturing licensee may have more than one agreement described in
             4749      this Subsection (6) if each brand of the brewery manufacturing licensee is covered by one
             4750      exclusive sales territory.
             4751          (d) A brewery manufacturing licensee may not enter into an agreement with more than
             4752      one beer wholesaler licensee to distribute the same brand of beer in the same sales territory or
             4753      any portion of the sales territory.
             4754          (7) A small brewer is not subject to the requirements of Subsection (6).
             4755          Section 96. Section 32B-11-604 (Effective 07/01/11) is amended to read:
             4756           32B-11-604 (Effective 07/01/11). Application for local industry representative
             4757      license.
             4758          (1) To obtain a local industry representative license, a person shall submit to the
             4759      department:
             4760          (a) a written application in a form prescribed by the department;
             4761          (b) a nonrefundable [$50] $75 application fee;
             4762          (c) an initial license fee of [$100] $125, which is refundable if a local industry
             4763      representative license is not issued;
             4764          (d) verification that the person is:
             4765          (i) a resident of Utah;
             4766          (ii) a Utah partnership;
             4767          (iii) a Utah corporation; or
             4768          (iv) a Utah limited liability company;



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             4769
         (e) an affidavit stating the name and address of any manufacturer, supplier, or importer
             4770      the person will represent;
             4771          (f) a signed consent form stating that the local industry representative will permit any
             4772      authorized representative of the commission, department, or any law enforcement officer to
             4773      have an unrestricted right to enter, during normal business hours, the specific premises where
             4774      the local industry representative conducts business;
             4775          (g) if the person is an entity, proper verification evidencing that a person who signs the
             4776      application is authorized to sign on behalf of the entity; and
             4777          (h) any other information the commission or department may require.
             4778          (2) A local industry representative licensee is not required to pay an additional license
             4779      fee to represent more than one manufacturer, supplier, or importer.
             4780          Section 97. Section 32B-11-605 (Effective 07/01/11) is amended to read:
             4781           32B-11-605 (Effective 07/01/11). Renewal requirements for local industry
             4782      representative license.
             4783          (1) A local industry representative license expires on December 31 of each year.
             4784          (2) To renew a local industry representative license, a person shall submit to the
             4785      department by no later than November 30 of the year the license expires:
             4786          (a) a completed renewal application in a form prescribed by the department;
             4787          (b) a renewal fee of [$100] $125; and
             4788          (c) an affidavit stating the name and address of any manufacturer, supplier, or importer
             4789      the local industry representative licensee represents at the time of submitting the renewal
             4790      application.
             4791          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4792      local industry representative license effective on the date the existing local industry
             4793      representative license expires.
             4794          Section 98. Section 32B-11-608 (Effective 07/01/11) is amended to read:
             4795           32B-11-608 (Effective 07/01/11). Operational requirements for local industry
             4796      representative license.
             4797          (1) (a) A local industry representative licensee, staff of the local industry representative
             4798      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             4799      state, shall comply with this title and rules of the commission.



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             4800
         (b) If a person knowingly violates Subsection (1)(a):
             4801          (i) the violation may result in disciplinary action in accordance with Chapter 3,
             4802      Disciplinary Actions and Enforcement Act, against:
             4803          (A) a local industry representative licensee;
             4804          (B) individual staff of a local industry representative licensee; or
             4805          (C) both a local industry representative licensee and staff of the local industry
             4806      representative licensee; and
             4807          (ii) if the conditions of Subsection (1)(c) are met, the commission may order:
             4808          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             4809      department's sales list; and
             4810          (B) a suspension of the department's purchase of those products for a period
             4811      determined by the commission.
             4812          (c) Subsection (1)(b)(ii) applies if the manufacturer, supplier, or importer:
             4813          (i) directly commits the violation; or
             4814          (ii) solicits, requests, commands, encourages, or intentionally aides another to engage
             4815      in the violation.
             4816          (2) A local industry representative licensee shall display its license in the local industry
             4817      representative licensee's principal place of business.
             4818          (3) (a) A local industry representative licensee shall maintain on file with the
             4819      department a current accounts list of the names and addresses of the manufacturers, suppliers,
             4820      and importers the local industry representative licensee represents.
             4821          (b) A local industry representative licensee shall notify the department in writing of a
             4822      change to its accounts list within 14 days from the date the local industry representative
             4823      licensee:
             4824          (i) acquires the account of a manufacturer, supplier, or importer; or
             4825          (ii) loses the account of a manufacturer, supplier, or importer.
             4826          (4) (a) A local industry representative licensee shall make and maintain the records the
             4827      department requires for at least three years.
             4828          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             4829      accordance with this Subsection (4).
             4830          (5) Staff of a local industry representative licensee may not be:



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             4831
         (a) a retail licensee that sells, offers for sale, or furnishes liquor;
             4832          (b) staff of a retail licensee that sells, offers for sale, or furnishes liquor; or
             4833          (c) a minor.
             4834          (6) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,
             4835      give, or attempt in any way to dispose of the license to another person, whether for monetary
             4836      gain or not.
             4837          (b) A local industry representative license has no monetary value for any type of
             4838      disposition.
             4839          (7) A local industry representative licensee, staff of the local industry representative
             4840      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             4841      state:
             4842          (a) only to the extent authorized by Chapter 4, Criminal Offenses and Procedure Act,
             4843      may:
             4844          (i) assist the department in:
             4845          (A) ordering, shipping, and delivering merchandise;
             4846          (B) providing new product notification;
             4847          (C) obtaining listing and delisting information;
             4848          (D) receiving price quotations;
             4849          (E) providing product sales analysis;
             4850          (F) conducting shelf management; and
             4851          (G) conducting educational seminars; and
             4852          (ii) to acquire new listings:
             4853          (A) solicit orders from the department; and
             4854          (B) submit to the department price lists and samples of the products of the
             4855      manufacturer, supplier, or importer;
             4856          (b) may not sell liquor within the state except to:
             4857          (i) the department; and
             4858          (ii) a military installation;
             4859          (c) may not ship or transport, or cause to be shipped or transported, liquor into this
             4860      state or from one place to another within this state;
             4861          (d) may not sell or furnish any liquor to any person within this state other than to:



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             4862
         (i) the department; or
             4863          (ii) a military installation;
             4864          (e) except as otherwise provided, may not advertise a product the local industry
             4865      representative licensee represents in violation of this title or any other federal or state law;
             4866          (f) shall comply with the trade practices provided in Chapter 4, Part 7, Trade Practices
             4867      Act; and
             4868          (g) may only provide a sample of a product of the manufacturer, supplier, or importer
             4869      for tasting and sampling purposes as provided in Section 32B-4-705 by the department.
             4870          (8) A local industry representative licensee may, to become educated as to the quality
             4871      and characteristics of a liquor that the licensee represents, taste and analyze an industry
             4872      representative sample under the conditions listed in this Subsection (8).
             4873          (a) A local industry representative licensee may not receive more than two industry
             4874      representative samples of a particular type, vintage, and production lot of a particular branded
             4875      product within a consecutive 120-day period.
             4876          (b) (i) An industry representative sample of liquor may not exceed one liter.
             4877          (ii) Notwithstanding Subsection (8)(b)(i), an industry representative sample of the
             4878      following may not exceed 1.5 liters unless that exact product is only commercially packaged in
             4879      a larger size, not to exceed 5 liters:
             4880          (A) wine;
             4881          (B) heavy beer; or
             4882          (C) a flavored malt beverage.
             4883          (c) An industry representative sample may only be of a product not presently listed on
             4884      the department's sales list.
             4885          (d) (i) An industry representative sample shall be shipped:
             4886          (A) prepaid by the manufacturer, supplier, or importer;
             4887          (B) by common carrier and not via United States mail; and
             4888          (C) directly to the department's central administrative warehouse office.
             4889          (ii) An industry representative sample may not be shipped to any other location within
             4890      the state.
             4891          (e) An industry representative sample shall be accompanied by a letter from the
             4892      manufacturer, supplier, or importer:



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             4893
         (i) clearly identifying the product as an "industry representative sample"; and
             4894          (ii) clearly stating:
             4895          (A) the FOB case price of the product; and
             4896          (B) the name of the local industry representative for whom it is intended.
             4897          (f) The department shall assess a reasonable handling, labeling, and storage fee for
             4898      each industry representative sample received.
             4899          (g) The department shall affix to a [package] container a label clearly identifying the
             4900      product as an "industry representative sample."
             4901          (h) The department shall:
             4902          (i) account for and record each industry representative sample received;
             4903          (ii) account for the industry representative sample's disposition; and
             4904          (iii) maintain a record of the industry representative sample and its disposition for a
             4905      two-year period.
             4906          (i) An industry representative sample may not leave the premises of the department's
             4907      central administrative warehouse office.
             4908          (j) A local industry representative licensee's and a local industry representative
             4909      licensee's staff may, at regularly scheduled days and times established by the department, taste
             4910      and analyze one or more industry representative samples on the premises of the department's
             4911      central administrative warehouse office.
             4912          (k) The department shall destroy the unused contents of an opened product remaining
             4913      after a product is sampled under controlled and audited conditions established by the
             4914      department.
             4915          (l) An industry representative sample that is not tasted within 30 days of receipt by the
             4916      department shall be disposed of at the discretion of the department in one of the following
             4917      ways:
             4918          (i) the contents destroyed under controlled and audited conditions established by the
             4919      department; or
             4920          (ii) added to the inventory of the department for sale to the public.
             4921          Section 99. Section 32B-12-202 (Effective 07/01/11) is amended to read:
             4922           32B-12-202 (Effective 07/01/11). Application requirements for liquor
             4923      warehousing license.



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             4924
         To obtain a liquor warehousing license, a person shall submit to the department:
             4925          (1) a written application in a form prescribed by the department;
             4926          (2) a nonrefundable [$250] $300 application fee;
             4927          (3) an initial license fee of [$750] $850, which is refundable if a liquor warehousing
             4928      license is not issued;
             4929          (4) written consent of the local authority;
             4930          (5) a copy of the person's current business license;
             4931          (6) a bond as specified by Section 32B-12-206 ;
             4932          (7) a floor plan of the person's warehouse, including the area in which the person
             4933      proposes that liquor be stored;
             4934          (8) evidence that the person is carrying public liability insurance in an amount and
             4935      form satisfactory to the department;
             4936          (9) a signed consent form stating that the liquor warehousing licensee will permit any
             4937      authorized representative of the commission, department, or any law enforcement officer to
             4938      have unrestricted right to enter the licensed premises;
             4939          (10) if the person is an entity, proper verification evidencing that a person who signs
             4940      the application is authorized to sign on behalf of the entity; and
             4941          (11) any other information the commission or department may require.
             4942          Section 100. Section 32B-12-203 (Effective 07/01/11) is amended to read:
             4943           32B-12-203 (Effective 07/01/11). Renewal requirements for liquor warehousing
             4944      license.
             4945          (1) A liquor warehousing license expires on December 31 of each year.
             4946          (2) To renew a liquor warehousing license, a person shall submit to the department by
             4947      no later than November 30 of the year the license expires:
             4948          (a) a completed renewal application in a form prescribed by the department; and
             4949          (b) a renewal fee of [$1,000] $1,200.
             4950          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4951      liquor warehousing license effective on the date the existing liquor warehousing license
             4952      expires.
             4952a      S. Section 101. Section 32B-13-201 is amended to read:
             4952b          32B-13-201 (Effective 07/01/11). Commission's power to issue beer wholesaling license.
             4952c          (1) (a) Before a person may purchase, store, sell, offer for sale, distribute, or import .S


            
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4952d
     S. beer to a person who sells at retail or acts in any way as a beer wholesaler, the person shall
             4952e      first obtain a beer wholesaling license issued by the commission in accordance with this
             4952f      chapter.
             4952g           (b) A violation of Subsection (1)(a) is a class A misdemeanor. 

             4952h          (2) (a) The commission may issue a beer wholesaling license for the purchase, storage,
             4952i      sale, distribution, transportation, and import of beer.
             4952j          (b) A beer wholesaling license entitles the beer wholesaler licensee to:
             4952k          (i) purchase and import beer into the state;
             4952l          (ii) store beer in an approved warehouse; and
             4952m          (iii) sell and distribute beer directly to:
             4952n          (A) a beer retailer; or
             4952o          (B) an event permittee.
             4952p      [     (c) A violation of Subsection (2)(a) is a class A misdemeanor. ]
             4952q          (3) Nothing in this section precludes a small brewer from selling beer the small brewer
             4952r      manufactures directly to:
             4952s          (a) a retail licensee;    (b) an off-premise beer retailer; or
             4952t          (c) an event permittee. .S
             4953          Section S. [ 101 ] 102 .S . Section 32B-13-202 (Effective 07/01/11) is amended to read:
             4954           32B-13-202 (Effective 07/01/11). Application requirements for beer wholesaling



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             4955
     license.
             4956          To obtain a beer wholesaling license, a person shall submit to the department:
             4957          (1) a written application in a form prescribed by the department;
             4958          (2) a nonrefundable [$250] $300 application fee;
             4959          (3) an initial license fee of [$2,000] $2,300 that is refundable if a beer wholesaling
             4960      license is not issued;
             4961          (4) written consent of the local authority;
             4962          (5) a copy of the person's current business license;
             4963          (6) a bond as specified in Section 32B-13-206 ;
             4964          (7) a statement of the brands of beer the person is authorized to sell and distribute;
             4965          (8) a statement of the [geographical areas] one or more sales territories in which the
             4966      person is authorized [by the beer manufacturer] to sell and distribute beer under an agreement
             4967      required by Section 32B-11-201 or 32B-11-503 ;
             4968          (9) evidence that the person is carrying public liability insurance in an amount and
             4969      form satisfactory to the department;
             4970          (10) a signed consent form stating that the beer wholesaling licensee will permit any
             4971      authorized representative of the commission, department, or any law enforcement officer to
             4972      have unrestricted right to enter the licensed premises;
             4973          (11) if the person is an entity, proper verification evidencing that a person who signs
             4974      the application is authorized to sign on behalf of the entity; and
             4975          (12) any other information that the commission or department may require.
             4976          Section 102. Section 32B-13-203 (Effective 07/01/11) is amended to read:
             4977           32B-13-203 (Effective 07/01/11). Renewal requirements for beer wholesaling
             4978      license.
             4979          (1) A beer wholesaling license expires on December 31 of each year.
             4980          (2) To renew a beer wholesaling license, a person shall submit to the department by no
             4981      later than November 30 of the year the license expires:
             4982          (a) a completed renewal application in a form prescribed by the department; and
             4983          (b) a renewal fee in the following amount:
             4984      Case Sales in Previous License Year for the Licensee            Renewal Fee
             4985          under 500,000 cases                            [$1,000] $1,200



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             4986
         equals or exceeds 500,000 cases but less than 1,000,000 cases    [$2,000] $2,350
             4987          equals or exceeds 1,000,000 cases                    [$3,000] $3,500.
             4988          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
             4989      beer wholesaling license effective on the date the existing beer wholesaling license expires.
             4990          Section 103. Section 32B-13-301 (Effective 07/01/11) is amended to read:
             4991           32B-13-301 (Effective 07/01/11). General operational requirements for beer
             4992      wholesaling license.
             4993          (1) (a) A beer wholesaler licensee and staff of the beer wholesaler licensee shall
             4994      comply with this title and the rules of the commission.
             4995          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             4996      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             4997          (i) a beer wholesaler licensee;
             4998          (ii) individual staff of a beer wholesaler licensee; or
             4999          (iii) both a beer wholesaler licensee and staff of the beer wholesaler licensee.
             5000          (2) (a) A beer wholesaler licensee shall make and maintain the records required by the
             5001      department.
             5002          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             5003      accordance with this Subsection (2).
             5004          (3) A beer wholesaler licensee may not employ a minor to handle an alcoholic product.
             5005          (4) A beer wholesaler licensee may not sell, transfer, assign, exchange, barter, give, or
             5006      attempt in any way to dispose of the beer wholesaling license to a person, whether for monetary
             5007      gain or not, unless it is done:
             5008          (a) in accordance with the commission rules; and
             5009          (b) after written consent is given by the commission.
             5010          (5) A beer wholesaler licensee may not wholesale a beer manufactured within the state
             5011      by a brewer who is not licensed by the commission as a brewery manufacturing licensee.
             5012          (6) A beer wholesaler licensee may not wholesale a beer manufactured out of state by a
             5013      brewer who has not obtained a certificate of approval from the department.
             5014          (7) (a) A beer wholesaler licensee may not sell or distribute beer to a person within the
             5015      state except to:
             5016          (i) a retail licensee;



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             5017
         (ii) an off-premise beer retailer; or
             5018          (iii) an event permittee.
             5019          (b) A violation of this Subsection (7) is a class A misdemeanor.
             5020          (8) (a) A beer wholesaler licensee may not sell or distribute a beer to a person who sells
             5021      the beer at retail outside of [the geographic area] a sales territory designated on its application
             5022      and authorized by an agreement described in Subsection 32B-13-202 (8), except that if a beer
             5023      wholesaler licensee is temporarily unable to supply a person within the beer wholesaler
             5024      licensee's authorized [geographical area] sales territory, the department may grant temporary
             5025      authority to another beer wholesaler licensee who distributes the same brand in another [area]
             5026      sales territory to supply:
             5027          (i) a retail licensee; or
             5028          (ii) an off-premise beer retailer.
             5029          (b) A violation of this Subsection (8) is a class B misdemeanor.
             5030          (9) (a) A beer wholesaler licensee shall own, lease, or otherwise control and maintain a
             5031      warehouse facility located in this state for the receipt, storage, and further distribution of beer
             5032      sold by the beer wholesaler licensee to a person within the state.
             5033          (b) A beer wholesaler licensee may not sell beer to a person in this state, other than the
             5034      department, unless the beer is first:
             5035          (i) physically removed from the vehicle used to transport the beer from the supplier to
             5036      the beer wholesaler licensee; and
             5037          (ii) delivered into the actual possession and control of the beer wholesaler licensee in
             5038      its warehouse or other facility.
             5039          (10) A beer wholesaler licensee may not sell or distribute an alcoholic product that has
             5040      not had its label and packaging approved by the department in accordance with Chapter 1, Part
             5041      6, Malted Beverage Act.
             5042          (11) The commission may prescribe by policy or rule, consistent with this title, the
             5043      general operational requirements of a beer wholesaling licensee relating to:
             5044          (a) physical facilities; and
             5045          (b) the conditions of importation, purchase, storage, sale, offering for sale, distribution,
             5046      or transportation of beer within the state.
             5047          Section 104. Section 52-4-205 is amended to read:



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             5048
          52-4-205. Purposes of closed meetings.
             5049          (1) A closed meeting described under Section 52-4-204 may only be held for:
             5050          (a) discussion of the character, professional competence, or physical or mental health
             5051      of an individual;
             5052          (b) strategy sessions to discuss collective bargaining;
             5053          (c) strategy sessions to discuss pending or reasonably imminent litigation;
             5054          (d) strategy sessions to discuss the purchase, exchange, or lease of real property,
             5055      including any form of a water right or water shares, if public discussion of the transaction
             5056      would:
             5057          (i) disclose the appraisal or estimated value of the property under consideration; or
             5058          (ii) prevent the public body from completing the transaction on the best possible terms;
             5059          (e) strategy sessions to discuss the sale of real property, including any form of a water
             5060      right or water shares, if:
             5061          (i) public discussion of the transaction would:
             5062          (A) disclose the appraisal or estimated value of the property under consideration; or
             5063          (B) prevent the public body from completing the transaction on the best possible terms;
             5064          (ii) the public body previously gave public notice that the property would be offered for
             5065      sale; and
             5066          (iii) the terms of the sale are publicly disclosed before the public body approves the
             5067      sale;
             5068          (f) discussion regarding deployment of security personnel, devices, or systems;
             5069          (g) investigative proceedings regarding allegations of criminal misconduct;
             5070          (h) as relates to the Independent Legislative Ethics Commission, conducting business
             5071      relating to the receipt or review of ethics complaints;
             5072          (i) as relates to an ethics committee of the Legislature, a purpose permitted under
             5073      Subsection 52-4-204 (1)(a)(iii)(B);
             5074          (j) as relates to a county legislative body, discussing commercial information as
             5075      defined in Section 59-1-404 ; [or]
             5076          (k) as relates to the Alcoholic Beverage Control Commission issuing a retail license
             5077      under Title 32B, Alcoholic Beverage Control Act, after receiving public input in a public
             5078      meeting in support or opposition to the commission issuing the retail license, discussing one or



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             5079
     more of the following factors in a closed meeting:
             5080          (i) a factor the commission is required to consider under Section 32B-5-203 or that is
             5081      specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail
             5082      license at issue;
             5083          (ii) the availability of a retail license under a quota;
             5084          (iii) the length of time the applicant has waited for a retail license;
             5085          (iv) an opening date for the applicant;
             5086          (v) whether the applicant is a seasonal business;
             5087          (vi) whether the location of the applicant has been previously licensed or is a new
             5088      location;
             5089          (vii) whether the application involves a change of ownership of an existing location;
             5090          (viii) whether the applicant holds other alcohol licenses at any location;
             5091          (ix) whether the applicant has a violation history or a pending violation;
             5092          (x) projected alcohol sales for the applicant as it relates to the extent to which the retail
             5093      license will be used;
             5094          (xi) whether the applicant is a small or entrepreneurial business that would benefit the
             5095      community in which it would be located;
             5096          (xii) the nature of entertainment the applicant proposes; or
             5097          (xiii) public input in support or opposition to granting the retail license; or
             5098          [(k)] (l) a purpose for which a meeting is required to be closed under Subsection (2).
             5099          (2) The following meetings shall be closed:
             5100          (a) a meeting of the Health and Human Services Interim Committee to review a fatality
             5101      review report described in Subsection 62A-16-301 (1)(a), and the responses to the report
             5102      described in Subsections 62A-16-301 (2) and (4); and
             5103          (b) a meeting of the Child Welfare Legislative Oversight Panel to:
             5104          (i) review a fatality review report described in Subsection 62A-16-301 (1)(a), and the
             5105      responses to the report described in Subsections 62A-16-301 (2) and (4); or
             5106          (ii) review and discuss an individual case, as described in Subsection 62A-4a-207 (5).
             5107          (3) A public body may not interview a person applying to fill an elected position in a
             5108      closed meeting.
             5109          Section 105. Section 62A-15-401 (Effective 07/01/11) is amended to read:



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             5110
          62A-15-401 (Effective 07/01/11). Alcohol training and education seminar.
             5111          (1) As used in this part:
             5112          (a) "Instructor" means a person that directly provides the instruction during an alcohol
             5113      training and education seminar for a seminar provider.
             5114          (b) "Licensee" means a person who is:
             5115          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
             5116      and
             5117          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
             5118      of the licensee; or
             5119          (ii) a business that is:
             5120          (A) a new or renewing licensee licensed by a city, town, or county; and
             5121          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
             5122          (c) "Off-premise beer retailer" is as defined in Section 32B-1-102 .
             5123          (d) "Seminar provider" means a person other than the division who provides an alcohol
             5124      training and education seminar meeting the requirements of this section.
             5125          (2) (a) This section applies to an individual who, as defined by the S. [ board ] division .S              5125a      by rule:
             5126          (i) manages operations at the premises of a licensee engaged in the retail sale of an
             5127      alcoholic product for consumption on the premises of the licensee;
             5128          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
             5129      premises of a licensee;
             5130          (iii) serves an alcoholic product to a customer for consumption on the premises of a
             5131      licensee;
             5132          (iv) directly supervises the sale of beer to a customer for consumption off the premises
             5133      of an off-premise beer retailer; or
             5134          (v) sells beer to a customer for consumption off the premises of an off-premise beer
             5135      retailer.
             5136          (b) If the individual does not have a valid record that the individual has completed an
             5137      alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
             5138          (i) (A) complete an alcohol training and education seminar within 30 days of the
             5139      following if the individual is described in Subsections (2)(a)(i) through (iii):
             5140          (I) if the individual is an employee, the day the individual begins employment;



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             5141
         (II) if the individual is an independent contractor, the day the individual is first hired;
             5142      or
             5143          (III) if the individual holds an ownership interest in the licensee, the day that the
             5144      individual first engages in an activity that would result in that individual being required to
             5145      complete an alcohol training and education seminar; or
             5146          (B) complete an alcohol training and education seminar within the time periods
             5147      specified in Subsection 32B-5-404 (1) if the individual is described in Subsections (2)(a)(iv)
             5148      and (v); and
             5149          (ii) pay a fee:
             5150          (A) to the seminar provider; and
             5151          (B) that is equal to or greater than the amount established under Subsection (4)(h).
             5152          (c) An individual shall have a valid record that the individual completed an alcohol
             5153      training and education seminar within the time period provided in this Subsection (2) to engage
             5154      in an activity described in Subsection (2)(a).
             5155          (d) A record that an individual has completed an alcohol training and education
             5156      seminar is valid for:
             5157          (i) three years from the day on which the record is issued for an individual described in
             5158      Subsection (2)(a)(i), (ii), or (iii); and
             5159          (ii) five years from the day on which the record is issued for an individual described in
             5160      Subsection (2)(a)(iv) or (v).
             5161          (e) On and after July 1, 2011, to be considered as having completed an alcohol training
             5162      and education seminar, an individual shall:
             5163          (i) attend the alcohol training and education seminar and take any test required to
             5164      demonstrate completion of the alcohol training and education seminar in the physical presence
             5165      of an instructor of the seminar provider; or
             5166          (ii) complete the alcohol training and education seminar and take any test required to
             5167      demonstrate completion of the alcohol training and education seminar through an online course
             5168      or testing program that meets the requirements described in Subsection (2)(f).
             5169          (f) The S. [ board ] division .S shall by rule made in accordance with Title 63G, Chapter
             5169a      3, Utah
             5170      Administrative Rulemaking Act, establish one or more requirements for an online course or
             5171      testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of



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             5172
     the online course or testing program. In developing the requirements by rule the S. [ board ]
             5172a      division .S shall
             5173      consider whether to require:
             5174          (i) authentication that the an individual accurately identifies the individual as taking the
             5175      online course or test;
             5176          (ii) measures to ensure that an individual taking the online course or test is focused on
             5177      training material throughout the entire training period;
             5178          (iii) measures to track the actual time an individual taking the online course or test is
             5179      actively engaged online;
             5180          (iv) a seminar provider to provide technical support, such as requiring a telephone
             5181      number, email, or other method of communication that allows an individual taking the online
             5182      course or test to receive assistance if the individual is unable to participate online because of
             5183      technical difficulties;
             5184          (v) a test to meet quality standards, including randomization of test questions and
             5185      maximum time limits to take a test;
             5186          (vi) a seminar provider to have a system to reduce fraud as to who completes an online
             5187      course or test, such as requiring a distinct online certificate with information printed on the
             5188      certificate that identifies the person taking the online course or test, or requiring measures to
             5189      inhibit duplication of a certificate;
             5190          (vii) measures for the S. [ board ] division .S to audit online courses or tests;
             5191          (viii) measures to allow an individual taking an online course or test to provide an
             5192      evaluation of the online course or test;
             5193          (ix) a seminar provider to track the Internet protocol address or similar electronic
             5194      location of an individual who takes an online course or test;
             5195          (x) an individual who takes an online course or test to use of an e-signature; or
             5196          (xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
             5197      certificate does not accurately reflect the individual who took the online course or test.
             5198          (3) (a) A licensee may not permit an individual who is not in compliance with
             5199      Subsection (2) to:
             5200          (i) serve or supervise the serving of an alcoholic product to a customer for
             5201      consumption on the premises of the licensee;
             5202          (ii) engage in any activity that would constitute managing operations at the premises of



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             5203
     a licensee that engages in the retail sale of an alcoholic product for consumption on the
             5204      premises of the licensee;
             5205          (iii) directly supervise the sale of beer to a customer for consumption off the premises
             5206      of an off-premise beer retailer; or
             5207          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
             5208      retailer.
             5209          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-5-403 .
             5210          (4) The division shall:
             5211          (a) (i) provide alcohol training and education seminars; or
             5212          (ii) certify one or more seminar providers;
             5213          (b) establish the curriculum for an alcohol training and education seminar that includes
             5214      the following subjects:
             5215          (i) (A) alcohol as a drug; and
             5216          (B) alcohol's effect on the body and behavior;
             5217          (ii) recognizing the problem drinker or signs of intoxication;
             5218          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
             5219      as determined in consultation with the Department of Alcoholic Beverage Control;
             5220          (iv) dealing with the problem customer, including ways to terminate sale or service;
             5221      and
             5222          (v) for those supervising or engaging in the retail sale of an alcoholic product for
             5223      consumption on the premises of a licensee, alternative means of transportation to get the
             5224      customer safely home;
             5225          (c) recertify each seminar provider every three years;
             5226          (d) monitor compliance with the curriculum described in Subsection (4)(b);
             5227          (e) maintain for at least five years a record of every person who has completed an
             5228      alcohol training and education seminar;
             5229          (f) provide the information described in Subsection (4)(e) on request to:
             5230          (i) the Department of Alcoholic Beverage Control;
             5231          (ii) law enforcement; or
             5232          (iii) a person licensed by the state or a local government to sell an alcoholic product;
             5233          (g) provide the Department of Alcoholic Beverage Control on request a list of any



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             5234
     seminar provider certified by the division; and
             5235          (h) establish a fee amount for each person attending an alcohol training and education
             5236      seminar that is sufficient to offset the division's cost of administering this section.
             5237          (5) The S. [ board ] division .S shall by rule made in accordance with Title 63G, Chapter
             5237a      3, Utah
             5238      Administrative Rulemaking Act:
             5239          (a) define what constitutes under this section an individual who:
             5240          (i) manages operations at the premises of a licensee engaged in the retail sale of an
             5241      alcoholic product for consumption on the premises of the licensee;
             5242          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
             5243      premises of a licensee;
             5244          (iii) serves an alcoholic product to a customer for consumption on the premises of a
             5245      licensee;
             5246          (iv) directly supervises the sale of beer to a customer for consumption off the premises
             5247      of an off-premise beer retailer; or
             5248          (v) sells beer to a customer for consumption off the premises of an off-premise beer
             5249      retailer;
             5250          (b) establish criteria for certifying and recertifying a seminar provider; and
             5251          (c) establish guidelines for the manner in which an instructor provides an alcohol
             5252      education and training seminar.
             5253          (6) A seminar provider shall:
             5254          (a) obtain recertification by the division every three years;
             5255          (b) ensure that an instructor used by the seminar provider:
             5256          (i) follows the curriculum established under this section; and
             5257          (ii) conducts an alcohol training and education seminar in accordance with the
             5258      guidelines established by rule;
             5259          (c) ensure that any information provided by the seminar provider or instructor of a
             5260      seminar provider is consistent with:
             5261          (i) the curriculum established under this section; and
             5262          (ii) this section;
             5263          (d) provide the division with the names of all persons who complete an alcohol training
             5264      and education seminar provided by the seminar provider;



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             5265
         (e) (i) collect a fee for each person attending an alcohol training and education seminar
             5266      in accordance with Subsection (2); and
             5267          (ii) forward to the division the portion of the fee that is equal to the amount described
             5268      in Subsection (4)(h); and
             5269          (f) issue a record to an individual that completes an alcohol training and education
             5270      seminar provided by the seminar provider.
             5271          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
             5272      Administrative Procedures Act, the division finds that a seminar provider violates this section
             5273      or that an instructor of the seminar provider violates this section, the division may:
             5274          (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
             5275          (ii) revoke the certification of the seminar provider;
             5276          (iii) require the seminar provider to take corrective action regarding an instructor; or
             5277          (iv) prohibit the seminar provider from using an instructor until such time that the
             5278      seminar provider establishes to the satisfaction of the division that the instructor is in
             5279      compliance with Subsection (6)(b).
             5280          (b) The division may certify a seminar provider whose certification is revoked:
             5281          (i) no sooner than 90 days from the date the certification is revoked; and
             5282          (ii) if the seminar provider establishes to the satisfaction of the division that the
             5283      seminar provider will comply with this section.
             5284          Section 106. Section 63J-1-201 is amended to read:
             5285           63J-1-201. Governor to submit budget to Legislature -- Contents -- Preparation --
             5286      Appropriations based on current tax laws and not to exceed estimated revenues.
             5287          (1) The governor shall deliver, not later than 30 days before the date the Legislature
             5288      convenes in the annual general session, a confidential draft copy of the governor's proposed
             5289      budget recommendations to the Office of the Legislative Fiscal Analyst.
             5290          (2) (a) The governor shall, within the first three days of the annual general session of
             5291      the Legislature, submit to the presiding officer of each house of the Legislature:
             5292          (i) a proposed budget for the ensuing fiscal year;
             5293          (ii) a schedule for all of the proposed appropriations of the budget, with each
             5294      appropriation clearly itemized and classified;
             5295          (iii) the statement described in Subsection (2)(c); and



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             5296
         (iv) as applicable, a document showing proposed expenditures and estimated revenues
             5297      that are based on changes in state tax laws or rates.
             5298          (b) The proposed budget shall include:
             5299          (i) a projection of estimated revenues and expenditures for the next fiscal year;
             5300          (ii) the source of all direct, indirect, and in-kind matching funds for all federal grants or
             5301      assistance programs included in the budget;
             5302          (iii) a complete plan of proposed expenditures and estimated revenues for the next
             5303      fiscal year that is based upon the current fiscal year state tax laws and rates;
             5304          (iv) an itemized estimate of the proposed appropriations for:
             5305          (A) the Legislative Department as certified to the governor by the president of the
             5306      Senate and the speaker of the House;
             5307          (B) the Executive Department;
             5308          (C) the Judicial Department as certified to the governor by the state court
             5309      administrator;
             5310          (D) payment and discharge of the principal and interest of the indebtedness of the state;
             5311          (E) the salaries payable by the state under the Utah Constitution or under law for the
             5312      lease agreements planned for the next fiscal year;
             5313          (F) other purposes that are set forth in the Utah Constitution or under law; and
             5314          (G) all other appropriations;
             5315          (v) for each line item, the average annual dollar amount of staff funding associated
             5316      with all positions that were vacant during the last fiscal year; and
             5317          (vi) deficits or anticipated deficits.
             5318          (c) The budget shall be accompanied by a statement showing:
             5319          (i) the revenues and expenditures for the last fiscal year;
             5320          (ii) the current assets, liabilities, and reserves, surplus or deficit, and the debts and
             5321      funds of the state;
             5322          (iii) an estimate of the state's financial condition as of the beginning and the end of the
             5323      period covered by the budget;
             5324          (iv) a complete analysis of lease with an option to purchase arrangements entered into
             5325      by state agencies;
             5326          (v) the recommendations for each state agency for new full-time employees for the



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             5327
     next fiscal year, which shall also be provided to the State Building Board as required by
             5328      Subsection 63A-5-103 (2);
             5329          (vi) any explanation that the governor may desire to make as to the important features
             5330      of the budget and any suggestion as to methods for the reduction of expenditures or increase of
             5331      the state's revenue; and
             5332          (vii) information detailing certain fee increases as required by Section 63J-1-504 .
             5333          (3) (a) (i) For the purpose of preparing and reporting the proposed budget, the governor
             5334      shall require the proper state officials, including all public and higher education officials, all
             5335      heads of executive and administrative departments and state institutions, bureaus, boards,
             5336      commissions, and agencies expending or supervising the expenditure of the state money, and
             5337      all institutions applying for state money and appropriations, to provide itemized estimates of
             5338      revenues and expenditures.
             5339          (ii) The governor may also require other information under these guidelines and at
             5340      times as the governor may direct, which may include a requirement for program productivity
             5341      and performance measures, where appropriate, with emphasis on outcome indicators.
             5342          (b) The governor may require representatives of public and higher education, state
             5343      departments and institutions, and other institutions or individuals applying for state
             5344      appropriations to attend budget meetings.
             5345          (c) (i) (A) In submitting the budgets for the Departments of Health and Human
             5346      Services and the Office of the Attorney General, the governor shall consider a separate
             5347      recommendation in the governor's budget for funds to be contracted to:
             5348          (I) local mental health authorities under Section 62A-15-110 ;
             5349          (II) local substance abuse authorities under Section 62A-15-110 ;
             5350          (III) area agencies under Section 62A-3-104.2 ;
             5351          (IV) programs administered directly by and for operation of the Divisions of Substance
             5352      Abuse and Mental Health and Aging and Adult Services;
             5353          (V) local health departments under Title 26A, Chapter 1, Local Health Departments;
             5354      and
             5355          (VI) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
             5356          (B) In the governor's budget recommendations under Subsections (3)(c)(i)(A)(I), (II),
             5357      and (III), the governor shall consider an amount sufficient to grant local health departments,



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             5358
     local mental health authorities, local substance abuse authorities, and area agencies the same
             5359      percentage increase for wages and benefits that the governor includes in the governor's budget
             5360      for persons employed by the state.
             5361          (C) If the governor does not include in the governor's budget an amount sufficient to
             5362      grant the increase described in Subsection (3)(c)(i)(B), the governor shall include a message to
             5363      the Legislature regarding the governor's reason for not including that amount.
             5364          (ii) (A) In submitting the budget for the Department of Agriculture, the governor shall
             5365      consider an amount sufficient to grant local conservation districts and Utah Association of
             5366      Conservation District employees the same percentage increase for wages and benefits that the
             5367      governor includes in the governor's budget for persons employed by the state.
             5368          (B) If the governor does not include in the governor's budget an amount sufficient to
             5369      grant the increase described in Subsection (3)(c)(ii)(A), the governor shall include a message to
             5370      the Legislature regarding the governor's reason for not including that amount.
             5371          (iii) (A) In submitting the budget for the Utah State Office of Rehabilitation and the
             5372      Division of Services for People with Disabilities, the Division of Child and Family Services,
             5373      and the Division of Juvenile Justice Services within the Department of Human Services, the
             5374      governor shall consider an amount sufficient to grant employees of corporations that provide
             5375      direct services under contract with those divisions, the same percentage increase for
             5376      cost-of-living that the governor includes in the governor's budget for persons employed by the
             5377      state.
             5378          (B) If the governor does not include in the governor's budget an amount sufficient to
             5379      grant the increase described in Subsection (3)(c)(iii)(A), the governor shall include a message
             5380      to the Legislature regarding the governor's reason for not including that amount.
             5381          (iv) (A) The Families, Agencies, and Communities Together Council may propose a
             5382      budget recommendation to the governor for collaborative service delivery systems operated
             5383      under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
             5384          (B) The Legislature may, through a specific program schedule, designate funds
             5385      appropriated for collaborative service delivery systems operated under Section 63M-9-402 .
             5386          (v) The governor shall include in the governor's budget the state's portion of the budget
             5387      for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah
             5388      Communications Agency Network Act.



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             5389
         (vi) (A) The governor shall include a separate recommendation in the governor's
             5390      budget for funds to maintain the operation and administration of the Utah Comprehensive
             5391      Health Insurance Pool.
             5392          (B) In making the recommendation, the governor may consider:
             5393          (I) actuarial analysis of growth or decline in enrollment projected over a period of at
             5394      least three years;
             5395          (II) actuarial analysis of the medical and pharmacy claims costs projected over a period
             5396      of at least three years;
             5397          (III) the annual Medical Care Consumer Price Index;
             5398          (IV) the annual base budget for the pool established by the Commerce and Revenue
             5399      Appropriations Subcommittee for each fiscal year;
             5400          (V) the growth or decline in insurance premium taxes and fees collected by the State
             5401      Tax Commission and the Insurance Department; and
             5402          (VI) the availability of surplus General Fund revenue under Section 63J-1-312 and
             5403      Subsection 59-14-204 (5)(b).
             5404          (vii) (A) In submitting the budget for the Department of Public Safety, the governor
             5405      shall include a separate recommendation in the governor's budget for maintaining a sufficient
             5406      number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
             5407      or below the number specified in Subsection 32B-1-201 (2).
             5408          (B) If the governor does not include in the governor's budget an amount sufficient to
             5409      maintain the number of alcohol-related law enforcement officers described in Subsection
             5410      (3)(c)(vii)(A), the governor shall include a message to the Legislature regarding the governor's
             5411      reason for not including that amount.
             5412          (d) (i) The governor may revise all estimates, except those relating to the Legislative
             5413      Department, the Judicial Department, and those providing for the payment of principal and
             5414      interest to the state debt and for the salaries and expenditures specified by the Utah
             5415      Constitution or under the laws of the state.
             5416          (ii) The estimate for the Legislative Department, as certified by the presiding officers
             5417      of both houses, shall be included in the budget without revision by the governor.
             5418          (iii) The estimate for the Judicial Department, as certified by the state court
             5419      administrator, shall also be included in the budget without revision, but the governor may make



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             5420
     separate recommendations on the estimate.
             5421          (e) The total appropriations requested for expenditures authorized by the budget may
             5422      not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
             5423      fiscal year.
             5424          (4) In considering the factors in Subsections (3)(c)(vi)(B)(I), (II), and (III) and
             5425      Subsections (5)(b)(ii)(A), (B), and (C), the governor and the Legislature may consider the
             5426      actuarial data and projections prepared for the board of the Utah Comprehensive Health
             5427      Insurance Pool as it develops its financial statements and projections for each fiscal year.
             5428          (5) (a) In adopting a budget for each fiscal year, the Legislature shall consider an
             5429      amount sufficient to grant local health departments, local mental health authorities, local
             5430      substance abuse authorities, area agencies on aging, conservation districts, and Utah
             5431      Association of Conservation District employees the same percentage increase for wages and
             5432      benefits that is included in the budget for persons employed by the state.
             5433          (b) (i) In adopting a budget each year for the Utah Comprehensive Health Insurance
             5434      Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each
             5435      fiscal year.
             5436          (ii) When making a determination under Subsection (5)(b)(i), the Legislature shall
             5437      consider factors it determines are appropriate, which may include:
             5438          (A) actuarial analysis of growth or decline in enrollment projected over a period of at
             5439      least three years;
             5440          (B) actuarial analysis of the medical and pharmacy claims costs projected over a period
             5441      of at least three years;
             5442          (C) the annual Medical Care Consumer Price Index;
             5443          (D) the annual base budget for the pool established by the Commerce and Revenue
             5444      Appropriations Subcommittee for each fiscal year;
             5445          (E) the growth or decline in insurance premium taxes and fees collected by the tax
             5446      commission and the insurance department from the previous fiscal year; and
             5447          (F) the availability of surplus General Fund revenue under Section 63J-1-312 and
             5448      Subsection 59-14-204 (5)(b).
             5449          (iii) The funds appropriated by the Legislature to fund the Utah Comprehensive Health
             5450      Insurance Pool as determined under Subsection (5)(b)(i):



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Senate 3rd Reading Amendments 3-4-2011 rd/po
             5451
         (A) shall be deposited into the fund established by Section 31A-29-120 ; and
             5452          (B) are restricted and are to be used to maintain the operation, administration, and
             5453      management of the Utah Comprehensive Health Insurance Pool created by Section
             5454      31A-29-104 .
             5455          (6) If any item of the budget as enacted is held invalid upon any ground, the invalidity
             5456      does not affect the budget itself or any other item in it.
             5457          Section 107. Repealer.
             5458          This bill repeals:
             5459          Section 26-7-6 (Effective 07/01/11), Alcohol retailers to post warnings related to
             5460      consumption of alcohol and pregnancy.
             5461          Section 32B-4-506 (Effective 07/01/11), Conflicting interests.
             5462          Section 32B-4-507 (Effective 07/01/11), Interfering with manufacturer, supplier, or
             5463      importer.
             5464          Section 108. Appropriation.
             5465          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
             5466      following sums of money are appropriated from resources not otherwise appropriated out of the
             5467      funds or accounts indicated for the fiscal year beginning July 1, 2011, and ending June 30,
             5468      2012. These are additions to amounts previously appropriated for fiscal year 2012.
             5469          To Department of Public Safety - Programs and Operations
             5469a      S.         From General Fund, one-time                    $83,600 .S
             5470              From General Fund                ( S. [ $2,900,000 ] $2,642,900 .S )
             5471              Schedule of Programs:
             5472                  Highway Patrol -- Special Services    ( S. [ $2,900,000 ] $2,559,300 .S )
             5473          Section 109. Effective date.
             5474          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2011.
             5475          (2) (a) The repeal of Subsection 32B-6-603 (4) (Effective 07/01/11) in this bill takes
             5476      effect on November 1, 2011.
             5477          (b) Title 32B, Chapter 6, Part 8, Reception Center License, enacted by this bill takes
             5478      effect on November 1, 2011.
             5479          (c) Title 32B, Chapter 6, Part 9, Beer-only Restaurant License, enacted by this bill
             5480      takes effect on March 1, 2012.
             5481          (d) The following take effect on July 1, 2012:



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             5482
         (i) Section 32B-5-309 (Effective 07/01/11) as amended by this bill; and
             5483          (ii) Title 32B, Chapter 8a, Transfer of Retail License Act, enacted by this bill.


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