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S.B. 12

             1     

ALCOHOLIC BEVERAGE CONTROL ACT -

             2     
MODIFICATIONS

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: John L. Valentine

             6     
House Sponsor: James A. Dunnigan

             7     
             8      LONG TITLE
             9      Committee Note:
             10          The Business and Labor Interim Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Alcoholic Beverage Control Act to correct omissions or errors
             13      made as part of the recodification of that act.
             14      Highlighted Provisions:
             15          This bill:
             16          .    reorders language;
             17          .    corrects or clarifies terminology, including defining the term "container";
             18          .    clarifies a formula related to the Alcoholic Beverage Enforcement and Treatment
             19      Restricted Account;
             20          .    clarifies references to specific licenses or sublicenses;
             21          .    relocates a provision addressing advertising;
             22          .    makes the provision related to a package agency posting a bond more consistent
             23      with other bond requirements in the act; and
             24          .    makes technical and conforming amendments.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          This bill takes effect on July 1, 2011.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          32B-1-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             32          32B-1-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             33          32B-1-306 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             34          32B-1-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             35          32B-1-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             36          32B-2-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             37          32B-2-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276 and
             38      amended by Laws of Utah 2010, Chapter 276, Coordination Clause
             39          32B-2-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             40          32B-2-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             41          32B-2-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             42          32B-2-601 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             43          32B-2-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             44          32B-2-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             45          32B-2-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             46          32B-2-606 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             47          32B-3-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             48          32B-3-307 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             49          32B-4-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             50          32B-4-206 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             51          32B-4-208 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             52          32B-4-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             53          32B-4-420 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             54          32B-4-422 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             55          32B-4-507 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             56          32B-4-704 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             57          32B-4-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             58          32B-5-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             59          32B-5-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             60          32B-5-307 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             61          32B-5-308 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             62          32B-6-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             63          32B-6-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             64          32B-6-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             65          32B-6-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             66          32B-6-706 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             67          32B-7-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             68          32B-8-401 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             69          32B-9-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             70          32B-9-302 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             71          32B-9-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             72          32B-10-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             73          32B-11-608 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             74      RENUMBERS AND AMENDS:
             75          32B-1-206, (Renumbered from 32B-4-510 (Effective 07/01/11), as enacted by Laws of
             76      Utah 2010, Chapter 276)
             77     
             78      Be it enacted by the Legislature of the state of Utah:
             79          Section 1. Section 32B-1-102 (Effective 07/01/11) is amended to read:
             80           32B-1-102 (Effective 07/01/11). Definitions.
             81          As used in this title:
             82          (1) "Airport lounge" means a business location:
             83          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             84          (b) that is located at an international airport with a United States Customs office on the
             85      premises of the international airport.
             86          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             87      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             88          (3) "Alcoholic beverage" means the following:
             89          (a) beer; or


             90          (b) liquor.
             91          (4) (a) "Alcoholic product" means a product that:
             92          (i) contains at least .5% of alcohol by volume; and
             93          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             94      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             95      in an amount equal to or greater than .5% of alcohol by volume.
             96          (b) "Alcoholic product" includes an alcoholic beverage.
             97          (c) "Alcoholic product" does not include any of the following common items that
             98      otherwise come within the definition of an alcoholic product:
             99          (i) except as provided in Subsection (4)(d), an extract;
             100          (ii) vinegar;
             101          (iii) cider;
             102          (iv) essence;
             103          (v) tincture;
             104          (vi) food preparation; or
             105          (vii) an over-the-counter medicine.
             106          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             107      when it is used as a flavoring in the manufacturing of an alcoholic product.
             108          (5) "Alcohol training and education seminar" means a seminar that is:
             109          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             110          (b) described in Section 62A-15-401 .
             111          (6) "Banquet" means an event:
             112          (a) that is held at one or more designated locations approved by the commission in or
             113      on the premises of a:
             114          (i) hotel;
             115          (ii) resort facility;
             116          (iii) sports center; or
             117          (iv) convention center;
             118          (b) for which there is a contract:
             119          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             120      and


             121          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             122      provide an alcoholic product at the event; and
             123          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             124          (7) (a) Subject to Subsection (7)(b), "bar" means a counter or similar structure:
             125          (i) at which an alcoholic product is:
             126          (A) stored; or
             127          (B) dispensed; or
             128          (ii) from which an alcoholic product is served.
             129          (b) For purposes of a full-service restaurant license or a limited-service restaurant
             130      license, "bar structure" means a surface or structure on the premises of a restaurant if on or at
             131      any place of the surface or structure an alcoholic product is:
             132          (i) stored; or
             133          (ii) dispensed.
             134          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             135          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             136      volume or 3.2% by weight; and
             137          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             138          (b) "Beer" may or may not contain hops or other vegetable products.
             139          (c) "Beer" includes a product that:
             140          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             141          (ii) is referred to as:
             142          (A) beer;
             143          (B) ale;
             144          (C) porter;
             145          (D) stout;
             146          (E) lager; or
             147          (F) a malt or malted beverage.
             148          (d) "Beer" does not include a flavored malt beverage.
             149          (9) "Beer retailer" means a business:
             150          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             151      whether for consumption on or off the business premises; and


             152          (b) to whom a license is issued:
             153          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             154      Beer Retailer Local Authority; or
             155          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             156      and Chapter 6, Part 7, On-premise Beer Retailer License.
             157          (10) "Beer wholesaling license" means a license:
             158          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             159          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             160      retail licensees or off-premise beer retailers.
             161          (11) "Billboard" means a public display used to advertise, including:
             162          (a) a light device;
             163          (b) a painting;
             164          (c) a drawing;
             165          (d) a poster;
             166          (e) a sign;
             167          (f) a signboard; or
             168          (g) a scoreboard.
             169          (12) "Brewer" means a person engaged in manufacturing:
             170          (a) beer;
             171          (b) heavy beer; or
             172          (c) a flavored malt beverage.
             173          (13) "Brewery manufacturing license" means a license issued in accordance with
             174      Chapter 11, Part 5, Brewery Manufacturing License.
             175          (14) "Certificate of approval" means a certificate of approval obtained from the
             176      department under Subsection 32B-11-201 (4).
             177          (15) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             178      a bus company to a group of persons pursuant to a common purpose:
             179          (a) under a single contract;
             180          (b) at a fixed charge in accordance with the bus company's tariff; and
             181          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             182      motor vehicle, and a driver to travel together to one or more specified destinations.


             183          (16) "Church" means a building:
             184          (a) set apart for worship;
             185          (b) in which religious services are held;
             186          (c) with which clergy is associated; and
             187          (d) that is tax exempt under the laws of this state.
             188          (17) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
             189      License Act, and Chapter 6, Part 4, Club License.
             190          (b) "Club license" includes:
             191          (i) a dining club license;
             192          (ii) an equity club license;
             193          (iii) a fraternal club license; or
             194          (iv) a social club license.
             195          (18) "Commission" means the Alcoholic Beverage Control Commission created in
             196      Section 32B-2-201 .
             197          (19) "Commissioner" means a member of the commission.
             198          (20) "Community location" means:
             199          (a) a public or private school;
             200          (b) a church;
             201          (c) a public library;
             202          (d) a public playground; or
             203          (e) a public park.
             204          (21) "Community location governing authority" means:
             205          (a) the governing body of the community location; or
             206          (b) if the commission does not know who is the governing body of a community
             207      location, a person who appears to the commission to have been given on behalf of the
             208      community location the authority to prohibit an activity at the community location.
             209          (22) "Container" means a receptacle that contains an alcoholic product, including:
             210          (a) a bottle;
             211          (b) a vessel; or
             212          (c) a similar item.
             213          [(22)] (23) "Convention center" means a facility that is:


             214          (a) in total at least 30,000 square feet; and
             215          (b) otherwise defined as a "convention center" by the commission by rule.
             216          [(23)] (24) For purposes of a full-service restaurant license or limited-service restaurant
             217      license:
             218          (a) subject to Subsection [(23)] (24)(b), "counter" means a surface or structure in a
             219      dining area of a restaurant where seating is provided to a patron for service of food; and
             220          (b) "counter" does not include a surface or structure if on or at any point of the surface
             221      or structure an alcoholic product is:
             222          (i) stored; or
             223          (ii) dispensed.
             224          [(24)] (25) "Department" means the Department of Alcoholic Beverage Control created
             225      in Section 32B-2-203 .
             226          [(25)] (26) "Department compliance officer" means an individual who is:
             227          (a) an auditor or inspector; and
             228          (b) employed by the department.
             229          [(26)] (27) "Department sample" means liquor that is placed in the possession of the
             230      department for testing, analysis, and sampling.
             231          [(27)] (28) "Dining club license" means a license issued in accordance with Chapter 5,
             232      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             233      as a dining club license.
             234          [(28)] (29) "Director," unless the context requires otherwise, means the director of the
             235      department.
             236          [(29)] (30) "Disciplinary proceeding" means an adjudicative proceeding permitted
             237      under this title:
             238          (a) against a person subject to administrative action; and
             239          (b) that is brought on the basis of a violation of this title.
             240          [(30)] (31) For purposes of a full-service restaurant license or a limited-service
             241      restaurant license, "dispense" means:
             242          (a) drawing of an alcoholic product:
             243          (i) from an area where it is stored; or
             244          (ii) as provided in Subsection 32B-6-205 (12)(b)(ii) or 32B-6-305 (12)(b)(ii); and


             245          (b) using the alcoholic product described in Subsection [(29)] (30)(a) on the premises
             246      of the restaurant to mix or prepare an alcoholic product to be furnished to a patron of the
             247      restaurant.
             248          [(31)] (32) "Distillery manufacturing license" means a license issued in accordance
             249      with Chapter 11, Part 4, Distillery Manufacturing License.
             250          [(32)] (33) "Distressed merchandise" means an alcoholic product in the possession of
             251      the department that is saleable, but for some reason is unappealing to the public.
             252          [(33)] (34) "Educational facility" includes:
             253          (a) a nursery school;
             254          (b) an infant day care center; and
             255          (c) a trade and technical school.
             256          [(34)] (35) "Equity club license" means a license issued in accordance with Chapter 5,
             257      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             258      as an equity club license.
             259          [(35)] (36) "Event permit" means:
             260          (a) a single event permit; or
             261          (b) a temporary beer event permit.
             262          [(36)] (37) (a) "Flavored malt beverage" means a beverage:
             263          (i) that contains at least .5% alcohol by volume;
             264          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             265      generally recognized as a traditional process in the production of a beer as described in 27
             266      C.F.R. Sec. 25.55;
             267          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             268      extract; and
             269          (iv) (A) for which the producer is required to file a formula for approval with the
             270      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             271          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             272          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             273          [(37)] (38) "Fraternal club license" means a license issued in accordance with Chapter
             274      5, Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the
             275      commission as a fraternal club license.


             276          [(38)] (39) "Full-service restaurant license" means a license issued in accordance with
             277      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             278          [(39)] (40) (a) "Furnish" means by any means to provide with, supply, or give an
             279      individual an alcoholic product, by sale or otherwise.
             280          (b) "Furnish" includes to:
             281          (i) serve;
             282          (ii) deliver; or
             283          (iii) otherwise make available.
             284          [(40)] (41) "Guest" means an individual who meets the requirements of Subsection
             285      32B-6-407 (9).
             286          [(41)] (42) "Health care practitioner" means:
             287          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             288          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             289          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             290          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical [Therapist]
             291      Therapy Practice Act;
             292          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             293      Nurse Practice Act;
             294          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             295      Practice Act;
             296          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             297      Therapy Practice Act;
             298          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             299          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             300      Professional Practice Act;
             301          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             302          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             303      Practice Act;
             304          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             305      Hygienist Practice Act; and
             306          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.


             307          [(42)] (43) (a) "Heavy beer" means a product that:
             308          (i) contains more than 4% alcohol by volume; and
             309          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             310          (b) "Heavy beer" is considered liquor for the purposes of this title.
             311          [(43)] (44) "Hotel" is as defined by the commission by rule.
             312          [(44)] (45) "Identification card" means an identification card issued under Title 53,
             313      Chapter 3, Part 8, Identification Card Act.
             314          [(45)] (46) "Industry representative" means an individual who is compensated by
             315      salary, commission, or other means for representing and selling an alcoholic product of a
             316      manufacturer, supplier, or importer of liquor.
             317          [(46)] (47) "Industry representative sample" means liquor that is placed in the
             318      possession of the department for testing, analysis, and sampling by a local industry
             319      representative on the premises of the department to educate the local industry representative of
             320      the quality and characteristics of the product.
             321          [(47)] (48) "Interdicted person" means a person to whom the sale, offer for sale, or
             322      furnishing of an alcoholic product is prohibited by:
             323          (a) law; or
             324          (b) court order.
             325          [(48)] (49) "Intoxicated" means that a person:
             326          (a) is significantly impaired as to the person's mental or physical functions as a result of
             327      the use of:
             328          (i) an alcoholic product;
             329          (ii) a controlled substance;
             330          (iii) a substance having the property of releasing toxic vapors; or
             331          (iv) a combination of Subsections [(48)] (49)(a)(i) through (iii); and
             332          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             333      signs produced by the over consumption of an alcoholic product.
             334          [(49)] (50) "Investigator" means an individual who is:
             335          (a) a department compliance officer; or
             336          (b) a nondepartment enforcement officer.
             337          [(50)] (51) "Invitee" is as defined in Section 32B-8-102 .


             338          [(51)] (52) "License" means:
             339          (a) a retail license;
             340          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             341      Licenses Act;
             342          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             343      or
             344          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             345          [(52)] (53) "Licensee" means a person who holds a license.
             346          [(53)] (54) "Limited-service restaurant license" means a license issued in accordance
             347      with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             348          [(54)] (55) "Limousine" means a motor vehicle licensed by the state or a local
             349      authority, other than a bus or taxicab:
             350          (a) in which the driver and a passenger are separated by a partition, glass, or other
             351      barrier;
             352          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             353      accordance with the business entity's tariff; and
             354          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             355      to travel to one or more specified destinations.
             356          [(55)] (56) (a) (i) "Liquor" means a liquid that:
             357          (A) is:
             358          (I) alcohol;
             359          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             360          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             361          (IV) other drink or drinkable liquid; and
             362          (B) (I) contains at least .5% alcohol by volume; and
             363          (II) is suitable to use for beverage purposes.
             364          (ii) "Liquor" includes:
             365          (A) heavy beer;
             366          (B) wine; and
             367          (C) a flavored malt beverage.
             368          (b) "Liquor" does not include beer.


             369          [(56)] (57) "Liquor Control Fund" means the enterprise fund created by Section
             370      32B-2-301 .
             371          [(57)] (58) "Liquor warehousing license" means a license that is issued:
             372          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             373          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             374      storage, sale, or distribution of liquor regardless of amount.
             375          [(58)] (59) "Local authority" means:
             376          (a) for premises that are located in an unincorporated area of a county, the governing
             377      body of a county; or
             378          (b) for premises that are located in an incorporated city or a town, the governing body
             379      of the city or town.
             380          [(59)] (60) "Lounge or bar area" is as defined by rule made by the commission.
             381          [(60)] (61) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             382      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             383      others.
             384          [(61)] (62) "Member" means an individual who, after paying regular dues, has full
             385      privileges in an equity club licensee or fraternal club licensee.
             386          [(62)] (63) (a) "Military installation" means a base, air field, camp, post, station, yard,
             387      center, or homeport facility for a ship:
             388          (i) (A) under the control of the United States Department of Defense; or
             389          (B) of the National Guard;
             390          (ii) that is located within the state; and
             391          (iii) including a leased facility.
             392          (b) "Military installation" does not include a facility used primarily for:
             393          (i) civil works;
             394          (ii) a rivers and harbors project; or
             395          (iii) a flood control project.
             396          [(63)] (64) "Minor" means an individual under the age of 21 years.
             397          [(64)] (65) "Nondepartment enforcement agency" means an agency that:
             398          (a) (i) is a state agency other than the department; or
             399          (ii) is an agency of a county, city, or town; and


             400          (b) has a responsibility to enforce one or more provisions of this title.
             401          [(65)] (66) "Nondepartment enforcement officer" means an individual who is:
             402          (a) a peace officer, examiner, or investigator; and
             403          (b) employed by a nondepartment enforcement agency.
             404          [(66)] (67) (a) "Off-premise beer retailer" means a beer retailer who is:
             405          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             406      Authority; and
             407          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             408      premises.
             409          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             410          [(67)] (68) "On-premise banquet license" means a license issued in accordance with
             411      Chapter 5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             412          [(68)] (69) "On-premise beer retailer" means a beer retailer who is:
             413          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             414      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             415      Retailer License; and
             416          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             417      premises, regardless of whether the beer retailer sells beer for consumption off the licensed
             418      premises.
             419          [(69) "Package" means any of the following containing an alcoholic product:]
             420          [(a) a container;]
             421          [(b) a bottle;]
             422          [(c) a vessel; or]
             423          [(d) other receptacle.]
             424          (70) "Package agency" means a retail liquor location operated:
             425          (a) under an agreement with the department; and
             426          (b) by a person:
             427          (i) other than the state; and
             428          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             429      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             430          (71) "Package agent" means a person who holds a package agency.


             431          (72) "Patron" means an individual to whom food, beverages, or services are sold,
             432      offered for sale, or furnished, or who consumes an alcoholic product including:
             433          (a) a customer;
             434          (b) a member;
             435          (c) a guest;
             436          (d) an attendee of a banquet or event;
             437          (e) an individual who receives room service;
             438          (f) a resident of a resort;
             439          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             440      or
             441          (h) an invitee.
             442          (73) "Permittee" means a person issued a permit under:
             443          (a) Chapter 9, Event Permit Act; or
             444          (b) Chapter 10, Special Use Permit Act.
             445          (74) "Person subject to administrative action" means:
             446          (a) a licensee;
             447          (b) a permittee;
             448          (c) a manufacturer;
             449          (d) a supplier;
             450          (e) an importer;
             451          (f) an out-of-state brewer holding a certificate of approval; or
             452          (g) staff of:
             453          (i) a person listed in Subsections (74)(a) through (g); or
             454          (ii) a package agent.
             455          (75) "Premises" means a building, enclosure, or room used in connection with the
             456      storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
             457      unless otherwise defined in this title or rules made by the commission.
             458          (76) "Prescription" means an order issued by a health care practitioner when:
             459          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             460      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             461          (b) the order is made in the course of that health care practitioner's professional


             462      practice; and
             463          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             464          (77) (a) "Private event" means a specific social, business, or recreational event:
             465          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             466      group; and
             467          (ii) that is limited in attendance to people who are specifically designated and their
             468      guests.
             469          (b) "Private event" does not include an event to which the general public is invited,
             470      whether for an admission fee or not.
             471          (78) (a) "Proof of age" means:
             472          (i) an identification card;
             473          (ii) an identification that:
             474          (A) is substantially similar to an identification card;
             475          (B) is issued in accordance with the laws of a state other than Utah in which the
             476      identification is issued;
             477          (C) includes date of birth; and
             478          (D) has a picture affixed;
             479          (iii) a valid driver license certificate that:
             480          (A) includes date of birth;
             481          (B) has a picture affixed; and
             482          (C) is issued:
             483          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             484          (II) in accordance with the laws of the state in which it is issued;
             485          (iv) a military identification card that:
             486          (A) includes date of birth; and
             487          (B) has a picture affixed; or
             488          (v) a valid passport.
             489          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             490      Section 53-3-207 .
             491          (79) (a) "Public building" means a building or permanent structure that is:
             492          (i) owned or leased by:


             493          (A) the state; or
             494          (B) a local government entity; and
             495          (ii) used for:
             496          (A) public education;
             497          (B) transacting public business; or
             498          (C) regularly conducting government activities.
             499          (b) "Public building" does not include a building owned by the state or a local
             500      government entity when the building is used by a person, in whole or in part, for a proprietary
             501      function.
             502          (80) "Public conveyance" means a conveyance to which the public or a portion of the
             503      public has access to and a right to use for transportation, including an airline, railroad, bus,
             504      boat, or other public conveyance.
             505          (81) (a) "Record" means information that is:
             506          (i) inscribed on a tangible medium; or
             507          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             508          (b) "Record" includes:
             509          (i) a book;
             510          (ii) a book of account;
             511          (iii) a paper;
             512          (iv) a contract;
             513          (v) an agreement;
             514          (vi) a document; or
             515          (vii) a recording in any medium.
             516          (82) "Residence" means a person's principal place of abode within Utah.
             517          (83) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             518          (84) "Resort" is as defined in Section 32B-8-102 .
             519          (85) "Resort facility" is as defined by the commission by rule.
             520          (86) "Resort license" means a license issued in accordance with Chapter 5, Retail
             521      License Act, and Chapter 8, Resort License Act.
             522          (87) "Restaurant" means a business location:
             523          (a) at which a variety of foods are prepared;


             524          (b) at which complete meals are served to the general public; and
             525          (c) that is engaged primarily in serving meals to the general public.
             526          (88) "Retail license" means one of the following licenses issued under this title:
             527          (a) a full-service restaurant license;
             528          (b) a limited-service restaurant license;
             529          (c) a club license;
             530          (d) an airport lounge license;
             531          (e) an on-premise banquet license; or
             532          (f) an on-premise beer license.
             533          (89) "Room service" means furnishing an alcoholic product to a person in a guest room
             534      of a:
             535          (a) hotel; or
             536          (b) resort facility.
             537          (90) "Serve" means to place an alcoholic product before an individual.
             538          (91) (a) "School" means a building used primarily for the general education of minors.
             539          (b) "School" does not include an educational facility.
             540          (92) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
             541      consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
             542      delivered for value, or by a means or under a pretext is promised or obtained, whether done by
             543      a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
             544      made by the commission.
             545          (93) "Sexually oriented entertainer" means a person who while in a state of seminudity
             546      appears at or performs:
             547          (a) for the entertainment of one or more patrons;
             548          (b) on the premises of:
             549          (i) a social club licensee; or
             550          (ii) a tavern;
             551          (c) on behalf of or at the request of the licensee described in Subsection (93)(b);
             552          (d) on a contractual or voluntary basis; and
             553          (e) whether or not the person is designated as:
             554          (i) an employee;


             555          (ii) an independent contractor;
             556          (iii) an agent of the licensee; or
             557          (iv) a different type of classification.
             558          (94) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3,
             559      Single Event Permit.
             560          (95) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
             561      beer, heavy beer, and flavored malt beverages per year.
             562          (96) "Social club license" means a license issued in accordance with Chapter 5, Retail
             563      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             564      social club license.
             565          (97) "Special use permit" means a permit issued in accordance with Chapter 10,
             566      Special Use Permit Act.
             567          (98) (a) "Spirituous liquor" means liquor that is distilled.
             568          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             569      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             570          (99) "Sports center" is as defined by the commission by rule.
             571          (100) (a) "Staff" means an individual who engages in activity governed by this title:
             572          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             573      holder;
             574          (ii) at the request of the business, including a package agent, licensee, permittee, or
             575      certificate holder; or
             576          (iii) under the authority of the business, including a package agent, licensee, permittee,
             577      or certificate holder.
             578          (b) "Staff" includes:
             579          (i) an officer;
             580          (ii) a director;
             581          (iii) an employee;
             582          (iv) personnel management;
             583          (v) an agent of the licensee, including a managing agent;
             584          (vi) an operator; or
             585          (vii) a representative.


             586          (101) "State of nudity" means:
             587          (a) the appearance of:
             588          (i) the nipple or areola of a female human breast;
             589          (ii) a human genital;
             590          (iii) a human pubic area; or
             591          (iv) a human anus; or
             592          (b) a state of dress that fails to opaquely cover:
             593          (i) the nipple or areola of a female human breast;
             594          (ii) a human genital;
             595          (iii) a human pubic area; or
             596          (iv) a human anus.
             597          (102) "State of seminudity" means a state of dress in which opaque clothing covers no
             598      more than:
             599          (a) the nipple and areola of the female human breast in a shape and color other than the
             600      natural shape and color of the nipple and areola; and
             601          (b) the human genitals, pubic area, and anus:
             602          (i) with no less than the following at its widest point:
             603          (A) four inches coverage width in the front of the human body; and
             604          (B) five inches coverage width in the back of the human body; and
             605          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             606          (103) (a) "State store" means a facility for the sale of packaged liquor:
             607          (i) located on premises owned or leased by the state; and
             608          (ii) operated by a state employee.
             609          (b) "State store" does not include:
             610          (i) a package agency;
             611          (ii) a licensee; or
             612          (iii) a permittee.
             613          (104) For purposes of a full-service restaurant license or a limited-service restaurant
             614      license:
             615          (a) "Storage area" means an area on licensed premises where the licensee stores an
             616      alcoholic product.


             617          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             618      person draws to prepare an alcoholic product to be furnished to a patron of the restaurant,
             619      except as provided in Subsection 32B-6-205 (12)(b)(ii) or 32B-6-305 (12)(b)(ii).
             620          (105) "Sublicense" is as defined in Section 32B-8-102 .
             621          (106) "Supplier" means a person who sells an alcoholic product to the department.
             622          (107) "Tavern" means an on-premise beer retailer who is:
             623          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             624      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             625          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             626      On-premise Beer Retailer License.
             627          (108) "Temporary beer event permit" means a permit issued in accordance with
             628      Chapter 9, Part 4, Temporary Beer Event Permit.
             629          (109) "Temporary domicile" means the principal place of abode within Utah of a
             630      person who does not have a present intention to continue residency within Utah permanently or
             631      indefinitely.
             632          (110) "Unsaleable liquor merchandise" means a [package] container that:
             633          (a) is unsaleable because the [package] container is:
             634          (i) unlabeled;
             635          (ii) leaky;
             636          (iii) damaged;
             637          (iv) difficult to open; or
             638          (v) partly filled;
             639          (b) (i) has faded labels or defective caps or corks;
             640          (ii) has contents that are:
             641          (A) cloudy;
             642          (B) spoiled; or
             643          (C) chemically determined to be impure; or
             644          (iii) contains:
             645          (A) sediment; or
             646          (B) a foreign substance; or
             647          (c) is otherwise considered by the department as unfit for sale.


             648          (111) (a) "Wine" means an alcoholic product obtained by the fermentation of the
             649      natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
             650      another ingredient is added.
             651          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             652      in this title.
             653          (112) "Winery manufacturing license" means a license issued in accordance with
             654      Chapter 11, Part 3, Winery Manufacturing License.
             655          Section 2. Section 32B-1-203 (Effective 07/01/11) is amended to read:
             656           32B-1-203 (Effective 07/01/11). Licensee compliance with other laws.
             657          (1) A licensee and a person applying for a license shall comply with the applicable
             658      federal and state laws pertaining to payment of taxes and contributions to unemployment and
             659      insurance funds to which the licensee or person may be subject.
             660          (2) The commission:
             661          (a) may not issue a license to a person who violates this section; and
             662          (b) may [not renew,] suspend, [or] revoke, or not renew the license of a licensee who
             663      violates this section.
             664          Section 3. Section 32B-1-206 , which is renumbered from Section 32B-4-510 (Effective
             665      07/01/11) is renumbered and amended to read:
             666           [32B-4-510 (Effective 07/01/11)].     32B-1-206. Advertising prohibited --
             667      Exceptions.
             668          (1) (a) The department may not advertise liquor, except:
             669          (i) the department may provide for an appropriate sign in the window or on the front of
             670      a state store or package agency denoting that it is a state authorized liquor retail facility;
             671          (ii) the department or a package agency may provide a printed price [lists] list to the
             672      public;
             673          (iii) the department may authorize the use of price posting and floor stacking of liquor
             674      within a state store;
             675          (iv) subject to Subsection (1)(b), the department may provide a listing of the address
             676      and telephone number of a state store in one or more printed or electronic directories available
             677      to the general public; and
             678          (v) subject to Subsection (1)(b), a package agency may provide a listing of its address


             679      and telephone number in one or more printed or electronic directories available to the general
             680      public.
             681          (b) A listing under Subsection (1)(a)(iv) or (v) in the business or yellow pages of a
             682      telephone directory may not be displayed in an advertisement or other promotional format.
             683          (2) (a) The department may not advertise an alcoholic product on a billboard.
             684          (b) A package agency may not advertise an alcoholic product on a billboard, except to
             685      the extent allowed by the commission by rule.
             686          (3) (a) The department may not display liquor or a price [lists] list in a window or
             687      showcase visible to passersby.
             688          (b) A package agency may not display liquor or a price [lists] list in a window or
             689      showcase visible to passersby, except to the extent allowed by the commission by rule.
             690          (4) Except to the extent prohibited by this title, the advertising of an alcoholic product
             691      is allowed under guidelines established by the commission by rule.
             692          (5) The advertising or use of any means or media to offer an alcoholic product to the
             693      general public without charge is prohibited.
             694          Section 4. Section 32B-1-306 (Effective 07/01/11) is amended to read:
             695           32B-1-306 (Effective 07/01/11). Use of information from a criminal background
             696      check.
             697          The commission or department may use information obtained pursuant to Section
             698      32B-1-305 only for one or more of the following purposes:
             699          (1) enforcing this title;
             700          (2) determining whether an individual is convicted of any of the following offenses
             701      that disqualify the individual under this title from acting in a capacity described in Subsection
             702      32B-1-305 (2):
             703          (a) a felony under federal law or state law;
             704          (b) a violation of a federal law, state law, or local ordinance concerning the sale, offer
             705      for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic
             706      product;
             707          (c) a crime involving moral turpitude; or
             708          (d) on two or more occasions within the previous five years, driving under the
             709      influence of alcohol, drugs, or the combined influence of alcohol and drugs;


             710          (3) determining whether an individual fails to accurately disclose the [person's]
             711      individual's criminal history on an application or document filed with the department or
             712      commission;
             713          (4) approving or denying an application for employment with the department;
             714          (5) taking disciplinary action against a department employee, including possible
             715      termination of employment;
             716          (6) issuing or denying an application to operate a package agency;
             717          (7) issuing or denying an application for a license;
             718          (8) issuing or denying the renewal of a package agency agreement;
             719          (9) issuing or denying the renewal of a license;
             720          (10) suspending the operation of a package agency;
             721          (11) terminating a package agency contract; or
             722          (12) suspending or revoking a license.
             723          Section 5. Section 32B-1-602 (Effective 07/01/11) is amended to read:
             724           32B-1-602 (Effective 07/01/11). Definitions.
             725          As used in this part:
             726          (1) "Malted beverage" means:
             727          (a) beer;
             728          (b) a flavored malt beverage; and
             729          (c) heavy beer.
             730          (2) "Packaging" means the outer packaging that is visible to a consumer such as a
             731      carton, case, or other wrapper of a [package] container.
             732          Section 6. Section 32B-1-605 (Effective 07/01/11) is amended to read:
             733           32B-1-605 (Effective 07/01/11). General procedure for approval.
             734          (1) To obtain approval of the label and packaging of a malted beverage, the
             735      manufacturer of the malted beverage shall submit an application to the department for
             736      approval.
             737          (2) The application described in Subsection (1) shall be on a form approved by the
             738      department and include the following:
             739          (a) a copy of a federal certificate of label approval from the Department of Treasury,
             740      Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking


             741      approval;
             742          (b) a complete set of original labels for each size of [package] container of the malted
             743      beverage;
             744          (c) a description of the size of the [package] container on which a label will be placed;
             745          (d) a description of each type of [package] container of the malted beverage; and
             746          (e) a description of any packaging for the malted beverage.
             747          (3) The department may assess a reasonable fee for reviewing a label and packaging for
             748      approval.
             749          (4) (a) The department shall notify a manufacturer within 30 days after the day on
             750      which the manufacturer submits an application whether the label and packaging is approved or
             751      denied.
             752          (b) If the department determines that an unusual circumstance requires additional time,
             753      the department may extend the time period described in Subsection (4)(a).
             754          (5) A manufacturer shall obtain the approval of the department of a revision of a
             755      previously approved label and packaging before a malted beverage using the revised label and
             756      packaging may be distributed or sold in this state.
             757          (6) (a) The department may revoke a label and packaging previously approved upon a
             758      finding that the label and packaging is not in compliance with this title or rules of the
             759      commission.
             760          (b) The department shall notify the person who applies for the approval of a label and
             761      packaging at least five business days before the day on which a label and packaging approval is
             762      considered revoked.
             763          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
             764      argument or evidence to the department on why the revocation should not occur.
             765          (7) A manufacturer that applies for approval of a label and packaging may appeal a
             766      denial or revocation of a label and packaging approval to the commission.
             767          Section 7. Section 32B-2-303 (Effective 07/01/11) is amended to read:
             768           32B-2-303 (Effective 07/01/11). Purchase of liquor.
             769          (1) The department may not purchase or stock spirituous liquor in a [package]
             770      container smaller than 200 milliliters, except as otherwise allowed by the commission.
             771          (2) (a) An order by the department for the purchase of liquor, or a cancellation by the


             772      department of an order of liquor:
             773          (i) shall be executed in writing by the department; and
             774          (ii) is not valid or binding unless executed in writing.
             775          (b) The department shall maintain a copy of an order or cancellation on file for at least
             776      three years.
             777          (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
             778      Chapter 4, Uniform Electronic Transactions Act.
             779          Section 8. Section 32B-2-402 (Effective 07/01/11) is amended to read:
             780           32B-2-402 (Effective 07/01/11). Definitions -- Calculations.
             781          (1) As used in this part:
             782          (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
             783      Account created in Section 32B-2-403 .
             784          (b) "Advisory council" means the Utah Substance Abuse Advisory Council created in
             785      Section 63M-7-301.
             786          (c) "Alcohol-related offense" means:
             787          (i) a violation of:
             788          (A) Section 41-6a-502 ; or
             789          (B) an ordinance that complies with the requirements of:
             790          (I) Subsection 41-6a-510 (1); or
             791          (II) Section 76-5-207 ; or
             792          (ii) an offense involving the illegal:
             793          (A) sale of an alcoholic product;
             794          (B) consumption of an alcoholic product;
             795          (C) distribution of an alcoholic product;
             796          (D) transportation of an alcoholic product; or
             797          (E) possession of an alcoholic product.
             798          (d) "Annual conviction time period" means the time period that:
             799          (i) begins on July 1 and ends on June 30; and
             800          (ii) immediately precedes the fiscal year for which an appropriation under this part is
             801      made.
             802          (e) "Municipality" means:


             803          (i) a city; or
             804          (ii) a town.
             805          (2) For purposes of [this part] Subsection 32B-2-404 (1)(b)(iii), the number of [state
             806      stores, package agencies, and retail licensees] premises located within the limits of a
             807      municipality or county:
             808          (a) is the number determined by the department to be so located;
             809          (b) includes the aggregate number of premises of the following:
             810          (i) a state store;
             811          (ii) a package agency; and
             812          (iii) a retail licensee[, except for an on-premise beer retailer]; and
             813          (c) for a county, consists only of the number located within an unincorporated area of
             814      the county.
             815          (3) The department shall determine:
             816          (a) a population figure according to the most current population estimate prepared by
             817      the Utah Population Estimates Committee;
             818          (b) a county's population for the 25% distribution to municipalities and counties under
             819      Subsection 32B-2-404 (1)(b)(i) only with reference to the population in the unincorporated
             820      areas of the county; and
             821          (c) a county's population for the 25% distribution to counties under Subsection
             822      32B-2-404 (1)(b)(iv) only with reference to the total population in the county, including that of
             823      a municipality.
             824          (4) (a) A conviction occurs in the municipality or county that actually prosecutes the
             825      offense to judgment.
             826          (b) If a conviction is based upon a guilty plea, the conviction is considered to occur in
             827      the municipality or county that, except for the guilty plea, would have prosecuted the offense.
             828          Section 9. Section 32B-2-404 (Effective 07/01/11) is amended to read:
             829           32B-2-404 (Effective 07/01/11). Alcoholic Beverage Enforcement and Treatment
             830      Restricted Account distribution.
             831          (1) (a) The money deposited into the account under Section 32B-2-403 shall be
             832      distributed to municipalities and counties:
             833          (i) to the extent appropriated by the Legislature, except that the Legislature shall


             834      appropriate each fiscal year an amount equal to at least the amount deposited in the account in
             835      accordance with Section 59-15-109 ; and
             836          (ii) as provided in this Subsection (1).
             837          (b) The amount appropriated from the account shall be distributed as follows:
             838          (i) 25% to municipalities and counties on the basis of the percentage of the state
             839      population residing in each municipality and county;
             840          (ii) 30% to municipalities and counties on the basis of each municipality's and county's
             841      percentage of the statewide convictions for all alcohol-related offenses;
             842          (iii) 20% to municipalities and counties on the basis of the percentage of the [state
             843      stores, package agencies, liquor licensees, and beer licensees] following in the state that are
             844      located in each municipality and county[; and]:
             845          (A) state stores;
             846          (B) package agencies;
             847          (C) retail licensees; and
             848          (D) off-premise beer retailers; and
             849          (iv) 25% to the counties for confinement and treatment purposes authorized by this part
             850      on the basis of the percentage of the state population located in each county.
             851          (c) (i) Except as provided in Subsection (1)(c)(ii), if a municipality does not have a law
             852      enforcement agency:
             853          (A) the municipality may not receive money under this part; and
             854          (B) the State Tax Commission:
             855          (I) may not distribute the money the municipality would receive but for the
             856      municipality not having a law enforcement agency to that municipality; and
             857          (II) shall distribute the money that the municipality would have received but for it not
             858      having a law enforcement agency to the county in which the municipality is located for use by
             859      the county in accordance with this part.
             860          (ii) If the advisory council finds that a municipality described in Subsection (1)(c)(i)
             861      demonstrates that the municipality can use the money that the municipality is otherwise eligible
             862      to receive in accordance with this part, the advisory council may direct the State Tax
             863      Commission to distribute the money to the municipality.
             864          (2) To determine the distribution required by Subsection (1)(b)(ii), the State Tax


             865      Commission shall annually:
             866          (a) for an annual conviction time period:
             867          (i) multiply by two the total number of convictions in the state obtained during the
             868      annual conviction time period for violation of:
             869          (A) Section 41-6a-502 ; or
             870          (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
             871      Section 76-5-207 ; and
             872          (ii) add to the number calculated under Subsection (2)(a)(i) the number of convictions
             873      obtained during the annual conviction time period for the alcohol-related offenses other than
             874      the alcohol-related offenses described in Subsection (2)(a)(i);
             875          (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
             876      obtained in Subsection (2)(a); and
             877          (c) multiply the amount calculated under Subsection (2)(b), by the number of
             878      convictions obtained in each municipality and county during the annual conviction time period
             879      for alcohol-related offenses.
             880          (3) By not later than September 1 each year:
             881          (a) the state court administrator shall certify to the State Tax Commission the number
             882      of convictions obtained for alcohol-related offenses in each municipality or county in the state
             883      during the annual conviction time period; and
             884          (b) the advisory council shall notify the State Tax Commission of any municipality that
             885      does not have a law enforcement agency.
             886          (4) By not later than December 1 of each year, the advisory council shall notify the
             887      State Tax Commission for the fiscal year of appropriation of:
             888          (a) a municipality that may receive a distribution under Subsection (1)(c)(ii);
             889          (b) a county that may receive a distribution allocated to a municipality described in
             890      Subsection (1)(c)(i);
             891          (c) a municipality or county that may not receive a distribution because the advisory
             892      council has suspended the payment under Subsection 32B-2-405 (2)(a); and
             893          (d) a municipality or county that receives a distribution because the suspension of
             894      payment has been cancelled under Subsection 32B-2-405 (2).
             895          (5) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax


             896      Commission shall annually distribute to each municipality and county the portion of the
             897      appropriation that the municipality or county is eligible to receive under this part, except for
             898      any municipality or county that the advisory council notifies the State Tax Commission in
             899      accordance with Subsection (4) may not receive a distribution in that fiscal year.
             900          (b) (i) The State Tax Commission shall prepare forms for use by a municipality or
             901      county in applying for a distribution under this part.
             902          (ii) A form described in this Subsection (5) may require the submission of information
             903      the State Tax Commission considers necessary to enable the State Tax Commission to comply
             904      with this part.
             905          Section 10. Section 32B-2-503 (Effective 07/01/11) is amended to read:
             906           32B-2-503 (Effective 07/01/11). Operational requirements for a state store.
             907          (1) A state store shall display in a prominent place in the store a sign in large letters
             908      stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
             909      prosecuted aggressively in Utah."
             910          (2) A state store may not sell, offer for sale, or furnish liquor except at a price fixed by
             911      the commission.
             912          (3) A state store may not sell, offer for sale, or furnish liquor to:
             913          (a) a minor;
             914          (b) a person actually, apparently, or obviously intoxicated;
             915          (c) a known interdicted person; or
             916          (d) a known habitual drunkard.
             917          (4) (a) A state store employee may not:
             918          (i) consume an alcoholic product on the premises of a state store; or
             919          (ii) allow any person to consume an alcoholic product on the premises of a state store.
             920          (b) A violation of this Subsection (4) is a class B misdemeanor.
             921          (5) (a) Sale or delivery of liquor may not be made on or from the premises of a state
             922      store, and a state store may not be kept open for the sale of liquor:
             923          (i) on Sunday; or
             924          (ii) on a state or federal legal holiday.
             925          (b) Sale or delivery of liquor may be made on or from the premises of a state store, and
             926      a state store may be open for the sale of liquor, only on a day and during hours that the


             927      commission directs by rule or order.
             928          (6) (a) A minor may not be admitted into, or be on the premises of a state store unless
             929      accompanied by a person who is:
             930          (i) 21 years of age or older; and
             931          (ii) the minor's parent, legal guardian, or spouse.
             932          (b) A state store employee that has reason to believe that a person who is on the
             933      premises of a state store is under the age of 21 and is not accompanied by a person described in
             934      Subsection (6)(a) may:
             935          (i) ask the suspected minor for proof of age;
             936          (ii) ask the person who accompanies the suspected minor for proof of age; and
             937          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             938      proof of parental, guardianship, or spousal relationship.
             939          (c) A state store employee shall refuse to sell liquor to the suspected minor and to the
             940      person who accompanies the suspected minor into the state store if the suspected minor or
             941      person fails to provide information specified in Subsection (6)(b).
             942          (d) A state store employee shall require a suspected minor and the person who
             943      accompanies the suspected minor into the state store to immediately leave the premises of the
             944      state store if the suspected minor or person fails to provide information specified in Subsection
             945      (6)(b).
             946          (7) (a) A state store may not sell, offer for sale, or furnish liquor except in a sealed
             947      [package] container.
             948          (b) A person may not open a sealed [package] container on the premises of a state
             949      store.
             950          Section 11. Section 32B-2-504 (Effective 07/01/11) is amended to read:
             951           32B-2-504 (Effective 07/01/11). Delivery of liquor to state store.
             952          (1) Liquor to be sold from a state store may be transported from a warehouse
             953      authorized by the department to the state store if transported by a person authorized by the
             954      department to transport the liquor to the state store, including a common carrier.
             955          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             956      open, break, or allow to be opened or broken, a [package] container containing liquor.
             957          (3) A person may not drink, use, or allow to be drunk or used, liquor while it is in


             958      transit under this section.
             959          Section 12. Section 32B-2-601 (Effective 07/01/11) is amended to read:
             960           32B-2-601 (Effective 07/01/11). Commission's power to issue package agency.
             961          (1) (a) The commission may, when the commission considers proper, issue authority to
             962      operate as a package agency by directing the department to enter into a package agency
             963      agreement with a person to sell, offer for sale, or furnish liquor in sealed [packages] containers
             964      from premises other than those owned or leased by the state.
             965          (b) The commission shall authorize a person to operate a package agency by issuing a
             966      record that designates the person in charge of the package agency as a "package agent."
             967          (2) (a) Subject to this Subsection (2), the commission may not issue a total number of
             968      package agencies that at any time exceeds the number determined by dividing the population of
             969      the state by 18,000.
             970          (b) (i) The commission may issue a seasonal package agency in an area the commission
             971      considers proper.
             972          (ii) A seasonal package agency shall be for a period of six consecutive months.
             973          (iii) A seasonal package agency issued for operation during a summer time period is
             974      known as a "Seasonal A" package agency. The period of operation for a Seasonal A package
             975      agency shall:
             976          (A) begin on May 1; and
             977          (B) end on October 31.
             978          (iv) A seasonal package agency issued for operation during a winter time period is
             979      known as a "Seasonal B" package agency. The period of operation for a Seasonal B package
             980      agency shall:
             981          (A) begin on November 1; and
             982          (B) end on April 30.
             983          (v) In determining the number of package agencies that the commission may issue
             984      under this section:
             985          (A) a seasonal package agency is counted as one-half of one package agency; and
             986          (B) each Seasonal A package agency shall be paired with a Seasonal B package agency.
             987          (c) (i) If the location, design, and construction of a hotel may require more than one
             988      package agency sales location to serve the public convenience, the commission may authorize a


             989      single package agent to sell liquor at as many as three locations within the hotel under one
             990      package agency if:
             991          (A) the hotel has a minimum of 150 guest rooms; and
             992          (B) all locations under the package agency are:
             993          (I) within the same hotel; and
             994          (II) on premises that are managed or operated, and owned or leased, by the package
             995      agent.
             996          (ii) A facility other than a hotel shall have a separate package agency for each location
             997      where liquor may be sold, offered for sale, or furnished.
             998          (3) (a) A package agent, under the direction of the department, is responsible for
             999      implementing and enforcing this title and the rules adopted under this title to the extent this
             1000      title and the rules relate to the conduct of the package agency and a package agency's sale of
             1001      liquor.
             1002          (b) A package agent may not be a state employee. A package agent may not be
             1003      construed to be a state employee or otherwise entitled to any benefit of employment from the
             1004      state.
             1005          (c) A package agent, when selling liquor from a package agency, is considered an agent
             1006      of the state only to the extent specifically expressed in the package agency agreement.
             1007          (4) The commission may prescribe by rule one or more types of package agencies
             1008      issued under this part that are consistent with this title.
             1009          Section 13. Section 32B-2-602 (Effective 07/01/11) is amended to read:
             1010           32B-2-602 (Effective 07/01/11). Application requirements for a package agency.
             1011          (1) Before a person may store, sell, offer for sale, or furnish liquor in a sealed
             1012      [package] container on its premises under a package agency, the person shall first obtain a
             1013      package agency issued by the commission in accordance with this part.
             1014          (2) To obtain a package agency, a person seeking to be the package agent under this
             1015      part shall submit to the department:
             1016          (a) a written application in a form prescribed by the department;
             1017          (b) a nonrefundable application fee of $100;
             1018          (c) written consent of the local authority;
             1019          (d) evidence of proximity to any community location, with proximity requirements


             1020      being governed by Section 32B-1-202 ;
             1021          (e) a bond as specified by Section 32B-2-604 ;
             1022          (f) a floor plan of the premises, including a description and highlighting of that part of
             1023      the premises in which the person proposes that the package agency be located;
             1024          (g) evidence that the package agency is carrying public liability insurance in an amount
             1025      and form satisfactory to the department;
             1026          (h) a signed consent form stating that the package agent permits any authorized
             1027      representative of the commission, department, or any law enforcement officer to have
             1028      unrestricted right to enter the premises of the package agency;
             1029          (i) if the person applying is an entity, verification that a person who signs the package
             1030      agency application is authorized to sign on behalf of the entity; and
             1031          (j) any other information the commission or department may require.
             1032          (3) The commission may not issue a package agency to a person who is disqualified
             1033      under Section 32B-1-304 .
             1034          (4) The commission may not issue a package agency for premises that do not meet the
             1035      proximity requirements of Section 32B-1-202 .
             1036          Section 14. Section 32B-2-604 (Effective 07/01/11) is amended to read:
             1037           32B-2-604 (Effective 07/01/11). Bond related to package agency.
             1038          (1) (a) A package agent who has a consignment liquor inventory owned by the state
             1039      shall post a consignment surety bond payable to the department in the amount of the
             1040      consignment inventory.
             1041          (b) A consignment surety bond shall be conditioned upon a package agent's return of
             1042      the unsold consignment liquor inventory at the termination of a package agency agreement.
             1043          (2) (a) A package agent that owns the package agency's liquor inventory shall post a
             1044      cash bond or surety bond:
             1045          (i) in the penal amount fixed by the department, except that the penal amount shall be
             1046      at least $1,000; and
             1047          (ii) payable to the department.
             1048          (3) A package agent shall procure and maintain the bond required under this section for
             1049      as long as the package agent continues to operate as a package agent.
             1050          (4) A bond required under this section shall be:


             1051          (a) in a form approved by the attorney general; and
             1052          (b) conditioned upon the package agent's faithful compliance with this title, the rules of
             1053      the commission, and the package agency agreement.
             1054          (5) (a) If a surety bond posted by a package agency under this section is canceled due to
             1055      the package agent's or package agency's negligence, the department may assess a $300
             1056      reinstatement fee.
             1057          (b) No part of a bond posted by a package agent under this section may be withdrawn:
             1058          (i) during the period the package agency is in effect; or
             1059          (ii) while a revocation of the package agency is pending against the package agent.
             1060          (6) (a) A bond posted under this section by a package agent may be forfeited if the
             1061      package agency is revoked.
             1062          (b) Notwithstanding Subsection (6)(a), the department may make a claim against a
             1063      bond posted by a package agent for money owed the department under this title without the
             1064      commission first revoking the package agency.
             1065          Section 15. Section 32B-2-605 (Effective 07/01/11) is amended to read:
             1066           32B-2-605 (Effective 07/01/11). Operational requirements for package agency.
             1067          (1) (a) A person may not operate a package agency until a package agency agreement is
             1068      entered into by the package agent and the department.
             1069          (b) A package agency agreement shall state the conditions of operation by which the
             1070      package agent and the department are bound.
             1071          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             1072      title, or the package agency agreement, the department may take any action against the package
             1073      agent that is allowed by the package agency agreement.
             1074          (ii) An action against a package agent is governed solely by its package agency
             1075      agreement and may include suspension or revocation of the package agency.
             1076          (iii) Notwithstanding that this part refers to "package agency" or "package agent," staff
             1077      of the package agency or package agent is subject to the same requirement or prohibition.
             1078          (2) (a) A package agency shall be operated by an individual who is either:
             1079          (i) the package agent; or
             1080          (ii) an individual designated by the package agent.
             1081          (b) An individual who is a designee under this Subsection (2) shall be:


             1082          (i) an employee of the package agent; and
             1083          (ii) responsible for the operation of the package agency.
             1084          (c) The conduct of the designee is attributable to the package agent.
             1085          (d) A package agent shall submit the name of the person operating the package agency
             1086      to the department for the department's approval.
             1087          (e) A package agent shall state the name and title of a designee on the application for a
             1088      package agency.
             1089          (f) A package agent shall:
             1090          (i) inform the department of a proposed change in the individual designated to operate
             1091      a package agency; and
             1092          (ii) receive prior approval from the department before implementing the change
             1093      described in this Subsection (2)(f).
             1094          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             1095      immediate termination of a package agency agreement.
             1096          (3) A package agent shall display in a prominent place in the package agency:
             1097          (a) the record issued by the commission that designates the package agency; and
             1098          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1099      drugs is a serious crime that is prosecuted aggressively in Utah."
             1100          (4) A package agency may not display liquor or a price list in a window or showcase
             1101      that is visible to passersby.
             1102          (5) (a) A package agency may not purchase liquor from a person except from the
             1103      department.
             1104          (b) At the discretion of the department, liquor may be provided by the department to a
             1105      package agency for sale on consignment.
             1106          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             1107      other than as designated in the package agent's application, unless the package agent first
             1108      applies for and receives approval from the department for a change of location within the
             1109      package agency premises.
             1110          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             1111      fixed by the commission.
             1112          (8) A package agency may not sell, offer for sale, or furnish liquor to:


             1113          (a) a minor;
             1114          (b) a person actually, apparently, or obviously intoxicated;
             1115          (c) a known interdicted person; or
             1116          (d) a known habitual drunkard.
             1117          (9) (a) A package agency may not employ a minor to handle liquor.
             1118          (b) (i) Staff of a package agency may not:
             1119          (A) consume an alcoholic product on the premises of a package agency; or
             1120          (B) allow any person to consume an alcoholic product on the premises of a package
             1121      agency.
             1122          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             1123          (10) (a) A package agency may not close or cease operation for a period longer than 72
             1124      hours, unless:
             1125          (i) the package agency notifies the department in writing at least seven days before the
             1126      closing; and
             1127          (ii) the closure or cessation of operation is first approved by the department.
             1128          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             1129      agency shall immediately notify the department by telephone.
             1130          (c) (i) The department may authorize a closure or cessation of operation for a period
             1131      not to exceed 60 days.
             1132          (ii) The department may extend the initial period an additional 30 days upon written
             1133      request of the package agency and upon a showing of good cause.
             1134          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1135      commission approval.
             1136          (d) The notice required by Subsection (10)(a) shall include:
             1137          (i) the dates of closure or cessation of operation;
             1138          (ii) the reason for the closure or cessation of operation; and
             1139          (iii) the date on which the package agency will reopen or resume operation.
             1140          (e) Failure of a package agency to provide notice and to obtain department
             1141      authorization before closure or cessation of operation results in an automatic termination of the
             1142      package agency agreement effective immediately.
             1143          (f) Failure of a package agency to reopen or resume operation by the approved date


             1144      results in an automatic termination of the package agency agreement effective on that date.
             1145          (11) A package agency may not transfer its operations from one location to another
             1146      location without prior written approval of the commission.
             1147          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             1148      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             1149      person, whether for monetary gain or not.
             1150          (b) A package agency has no monetary value for any type of disposition.
             1151          (13) (a) Subject to the other provisions of this Subsection (13):
             1152          (i) sale or delivery of liquor may not be made on or from the premises of a package
             1153      agency, and a package agency may not be kept open for the sale of liquor:
             1154          (A) on Sunday; or
             1155          (B) on a state or federal legal holiday.
             1156          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             1157      agency, and a package agency may be open for the sale of liquor, only on a day and during
             1158      hours that the commission directs by rule or order.
             1159          (b) Subsection (13)(a) governs unless:
             1160          (i) the package agency is located at a winery licensed in accordance with Chapter 11,
             1161      Manufacturing and Related Licenses Act;
             1162          (ii) the winery licensed in accordance with Chapter 11, Manufacturing and Related
             1163      Licenses Act, holds:
             1164          (A) a full-service restaurant license; or
             1165          (B) a limited-service restaurant license;
             1166          (iii) the restaurant is located at the winery;
             1167          (iv) the restaurant sells wines produced at the winery;
             1168          (v) the winery:
             1169          (A) owns the restaurant; or
             1170          (B) operates the restaurant;
             1171          (vi) the package agency only sells wine produced at the winery; and
             1172          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1173      sale at the restaurant.
             1174          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if


             1175      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             1176      in a manner similar to a state store.
             1177          (ii) The commission may by rule define what constitutes a package agency that sells
             1178      liquor "in a manner similar to a state store."
             1179          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1180      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1181      is:
             1182          (i) 21 years of age or older; and
             1183          (ii) the minor's parent, legal guardian, or spouse.
             1184          (b) A package agent or staff of a package agency that has reason to believe that a
             1185      person who is on the premises of a package agency is under the age of 21 and is not
             1186      accompanied by a person described in Subsection (14)(a) may:
             1187          (i) ask the suspected minor for proof of age;
             1188          (ii) ask the person who accompanies the suspected minor for proof of age; and
             1189          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1190      proof of parental, guardianship, or spousal relationship.
             1191          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             1192      suspected minor and to the person who accompanies the suspected minor into the package
             1193      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             1194          (d) A package agent or staff of a package agency shall require the suspected minor and
             1195      the person who accompanies the suspected minor into the package agency to immediately leave
             1196      the premises of the package agency if the minor or person fails to provide information specified
             1197      in Subsection (14)(b).
             1198          (15) (a) A package agency may not sell, offer for sale, or furnish liquor except in a
             1199      sealed [package] container.
             1200          (b) A person may not open a sealed [package] container on the premises of a package
             1201      agency.
             1202          (16) The department may pay or otherwise remunerate a package agent on any basis,
             1203      including sales or volume of business done by the package agency.
             1204          (17) The commission may prescribe by policy or rule general operational requirements
             1205      of a package agency that are consistent with this title and relate to:


             1206          (a) physical facilities;
             1207          (b) conditions of operation;
             1208          (c) hours of operation;
             1209          (d) inventory levels;
             1210          (e) payment schedules;
             1211          (f) methods of payment;
             1212          (g) premises security; and
             1213          (h) any other matter considered appropriate by the commission.
             1214          Section 16. Section 32B-2-606 (Effective 07/01/11) is amended to read:
             1215           32B-2-606 (Effective 07/01/11). Delivery of liquor to package agency.
             1216          (1) Liquor to be sold from a package agency may be transported from a warehouse or
             1217      state store authorized by the department to the package agency if transported by a person
             1218      authorized by the department to transport the liquor to the package agency, including a
             1219      common carrier.
             1220          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1221      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1222          (3) A person may not drink, use, or allow to be drunk or used, any liquor while the
             1223      liquor is in transit under this section.
             1224          Section 17. Section 32B-3-303 (Effective 07/01/11) is amended to read:
             1225           32B-3-303 (Effective 07/01/11). Acts making a person subject to this part.
             1226          (1) One or more of the following acts constitute a nuisance activity:
             1227          (a) a single felony conviction within the last two years of:
             1228          (i) a retail licensee; or
             1229          (ii) supervisory or managerial level staff of the retail licensee;
             1230          (b) a single conviction under Title 58, Chapter 37, Utah Controlled Substances Act:
             1231          (i) (A) of a retail licensee; or
             1232          (B) staff of the retail licensee;
             1233          (ii) within the last two years; and
             1234          (iii) made on the basis of an act that occurs on the licensed premises;
             1235          (c) three or more convictions of patrons of a retail licensee under Title 58, Chapter 37,
             1236      Utah Controlled Substances Act, if:


             1237          (i) the convictions are made on the basis of an act that occurs on the licensed premises;
             1238      and
             1239          (ii) there is evidence that the retail licensee knew or should have known of the illegal
             1240      activity;
             1241          (d) a single conviction within the last two years of a retail licensee or staff of the retail
             1242      licensee that is made on the basis of:
             1243          (i) pornographic and harmful materials:
             1244          (A) that violate Title 76, Chapter 10, Part 12, Pornographic and Harmful Materials and
             1245      Performances; and
             1246          (B) if the violation occurs on the licensed premises;
             1247          (ii) prostitution;
             1248          (iii) engaging in or permitting gambling, as defined and proscribed in Title 76, Chapter
             1249      10, Part 11, Gambling, on the licensed premises;
             1250          (iv) having any video gaming device, as defined and proscribed by Title 76, Chapter
             1251      10, Part 11, Gambling, on the licensed premises;
             1252          (v) on the licensed premises engaging in or permitting a contest, game, gaming
             1253      scheme, or gaming device that requires the risking of something of value for a return or for an
             1254      outcome when the return or outcome is based upon an element of chance, excluding the playing
             1255      of an amusement device that confers only an immediate and unrecorded right of replay not
             1256      exchangeable for value;
             1257          (vi) a disturbance of the peace that occurs on the licensed premises; or
             1258          (vii) disorderly conduct that occurs on the licensed premises; or
             1259          (e) three or more adjudicated violations of this title within the last two years by a retail
             1260      licensee or by staff of the retail licensee that result in a criminal citation or an administrative
             1261      referral to the department relating to:
             1262          (i) the sale, offer for sale, or furnishing of [alcohol] an alcoholic product to a minor;
             1263          (ii) the sale, offer for sale, or furnishing of [alcohol] an alcoholic product to a person
             1264      actually, apparently, or obviously intoxicated;
             1265          (iii) the sale, offer for sale, or furnishing of [alcohol] an alcoholic product after the
             1266      lawful hours for the sale or furnishing; or
             1267          (iv) acts or conduct on the licensed premises contrary to the public welfare and morals


             1268      involving lewd acts or lewd entertainment prohibited by this title.
             1269          (2) For purposes of Subsection (1), in the case of a retail licensee that is a partnership,
             1270      corporation, or limited liability company, a conviction under Subsection (1)(c) includes a
             1271      conviction of any of the following for an offense described in Subsection (1)(c):
             1272          (a) a partner;
             1273          (b) a managing agent;
             1274          (c) a manager;
             1275          (d) an officer;
             1276          (e) a director;
             1277          (f) a stockholder who holds at least 20% of the total issued and outstanding stock of a
             1278      corporate retail licensee; or
             1279          (g) a member who owns at least 20% of a limited liability company retail licensee.
             1280          Section 18. Section 32B-3-307 (Effective 07/01/11) is amended to read:
             1281           32B-3-307 (Effective 07/01/11). Hearing on formal objections to renewal.
             1282          (1) Upon receipt of a formal objection that meets the requirements of Section
             1283      32B-3-306 , the department shall:
             1284          (a) issue a notice of agency action; and
             1285          (b) serve on the retail licensee no later than 30 days before the expiration of the retail
             1286      licensee's license:
             1287          (i) the notice of agency action; and
             1288          (ii) a copy of the formal objection.
             1289          (2) (a) A retail licensee against whom a notice of agency action is served under
             1290      Subsection (1) may request a hearing.
             1291          (b) The request for hearing described in Subsection (2)(a) shall be:
             1292          (i) in writing; and
             1293          (ii) filed with the commission within 10 days of the day on which the notice of agency
             1294      action is served on the retail licensee.
             1295          (c) If a retail licensee fails to file a request for hearing in accordance with this
             1296      Subsection (2), the commission may not renew the license of the retail licensee.
             1297          (3) (a) Upon receipt of a request for hearing meeting the requirements of Subsection
             1298      (2), the department shall immediately schedule a hearing that shall be:


             1299          (i) held no later than 10 days before the expiration date of the retail licensee's license;
             1300      and
             1301          (ii) electronically recorded by the department.
             1302          (b) The retail licensee or an objecting governmental entity, at its own expense, may
             1303      have a reporter approved by the department prepare a transcript from the department's record of
             1304      the hearing.
             1305          (c) (i) The department shall present information at the hearing that supports a finding
             1306      that a nuisance activity occurred.
             1307          (ii) The information described in Subsection (3)(c)(i) shall be made a part of the record
             1308      of the hearing.
             1309          (d) A retail licensee shall:
             1310          (i) have the opportunity to challenge or explain whether any of the nuisance activity
             1311      that forms the basis for the formal objection occurred; and
             1312          (ii) be permitted to:
             1313          (A) testify;
             1314          (B) present evidence; and
             1315          (C) comment on the issues at the hearing.
             1316          (4) (a) A hearing held under this [chapter] part shall be conducted under the authority
             1317      of the commission.
             1318          (b) The commission is responsible for rendering a final order on whether a retail
             1319      licensee's license shall be renewed.
             1320          (c) Notwithstanding Subsections (4)(a) and (b), the commission may appoint a
             1321      necessary hearing examiner to administer the hearing process.
             1322          (d) The commission or the hearing examiner appointed by the commission shall serve
             1323      as the presiding officer at a hearing held under this section.
             1324          (e) The presiding officer at a hearing held under this section:
             1325          (i) shall evaluate:
             1326          (A) the information presented at the hearing in support of the formal objection; and
             1327          (B) any explanation and evidence offered by the retail licensee; and
             1328          (ii) may consider such factors as:
             1329          (A) the length of time the retail licensee has operated the licensed premises;


             1330          (B) the condition of the licensed premises;
             1331          (C) whether the retail licensee knew or should have known of the nuisance activity in
             1332      question;
             1333          (D) whether the retail licensee failed to:
             1334          (I) make a substantial effort to correct the nuisance activity; and
             1335          (II) work with law enforcement to curtail the nuisance activity;
             1336          (E) whether the nuisance activity has been ongoing or temporary;
             1337          (F) whether the retail licensee or the retail licensee's staff:
             1338          (I) initiated contact with the law enforcement agency on the nuisance activity; and
             1339          (II) cooperated with the law enforcement agency's investigation; and
             1340          (G) whether prior efforts to stop the nuisance activity by the community or the retail
             1341      licensee have been unsuccessful.
             1342          (5) An order issued under this section shall:
             1343          (a) be based on the evidence presented at the hearing; and
             1344          (b) state whether:
             1345          (i) the continued operation of the licensed premises will endanger the public health,
             1346      peace, safety, welfare, or morals of the community; and
             1347          (ii) the retail license should or should not be renewed.
             1348          (6) (a) If the presiding officer is a hearing examiner appointed by the commission, the
             1349      hearing officer shall issue a signed order in writing that:
             1350          (i) complies with Subsection (5);
             1351          (ii) recommends to the commission whether the retail license should or should not be
             1352      renewed;
             1353          (iii) states the reasons for the hearing officer's decision; and
             1354          (iv) notifies the retail licensee and the objecting governmental entity that the hearing
             1355      examiner's order will be considered by the commission at the next regularly scheduled meeting
             1356      of the commission.
             1357          (b) The department shall promptly mail a copy of the hearing examiner's order to:
             1358          (i) the retail licensee; and
             1359          (ii) any objecting governmental entity.
             1360          (c) The commission at its next regularly scheduled meeting after receipt of a hearing


             1361      examiner's order, shall decide whether to renew or not renew the retail license on the basis of:
             1362          (i) the record and evidence presented at the hearing; and
             1363          (ii) the hearing examiner's recommendation.
             1364          (7) (a) As an alternative to ordering that a retail license not be renewed under this
             1365      section, the commission may conditionally renew a retail license by requiring that:
             1366          (i) the retail licensee and the licensed premises be closely monitored during the
             1367      licensing year by:
             1368          (A) the department;
             1369          (B) local government officials; and
             1370          (C) law enforcement; and
             1371          (ii) the matter be reviewed before the next renewal period.
             1372          (b) The commission may conditionally renew a retail license contingent on a person
             1373      listed in Subsection (7)(b)(ii) divesting all interest in the retail licensed business if:
             1374          (i) the retail licensee is a partnership, corporation, or limited liability company; and
             1375          (ii) the formal objection filed under this section if filed solely on the basis of a felony
             1376      conviction:
             1377          (A) of:
             1378          (I) a partner;
             1379          (II) a managing agent;
             1380          (III) a manager;
             1381          (IV) an officer;
             1382          (V) a director;
             1383          (VI) a stockholder who holds at least 20% of the total issued and outstanding stock of a
             1384      corporate licensee; or
             1385          (VII) a member who owns at least 20% of a limited liability company licensee; and
             1386          (B) for illegal activity that occurred off of the licensed premises.
             1387          (8) (a) In accordance with this section, the commission shall issue a written order
             1388      setting forth the commission's decision and the reason for the commission's decision.
             1389          (b) The order described in Subsection (8)(a) is considered final on the date the order
             1390      becomes effective.
             1391          (c) The department shall serve a copy of the order on the retail licensee.


             1392          (9) A retail licensee whose retail license is not renewed by order of the commission
             1393      may seek judicial review under the procedures provided in Section 32B-3-207 .
             1394          (10) A retail licensee whose retail license is not renewed may not reapply for a license
             1395      under this title for three years from the date the retail license is not renewed.
             1396          Section 19. Section 32B-4-203 (Effective 07/01/11) is amended to read:
             1397           32B-4-203 (Effective 07/01/11). Authority to inspect.
             1398          (1) (a) This Subsection (1) applies to:
             1399          (i) a commissioner;
             1400          (ii) an authorized representative of the commission or department; or
             1401          (iii) a law enforcement or peace officer.
             1402          (b) An individual described in Subsection (1)(a):
             1403          (i) shall be given access, ingress, and egress to and from premises or a conveyance
             1404      used in the storage, sale, furnishing, manufacture, or transportation of an alcoholic product;
             1405          (ii) may open a [package] container containing, or supposed to contain, an article sold,
             1406      or exposed for sale, held in possession, or manufactured with intent to sell in violation of this
             1407      title or commission rules; and
             1408          (iii) may inspect the contents and take samples of the contents for analysis from a
             1409      [package] container described in this Subsection (1).
             1410          (2) The following shall assist, when requested by a person described in Subsection (1),
             1411      in tracing, finding, or discovering the presence of an article prohibited by this title or
             1412      commission rules to the extent assistance would not infringe upon the person's federal and state
             1413      constitutional rights:
             1414          (a) a dealer;
             1415          (b) a clerk;
             1416          (c) a bookkeeper;
             1417          (d) an express agent;
             1418          (e) a railroad or airline official;
             1419          (f) a common or other carrier; and
             1420          (g) an employee of a person listed in this Subsection (2).
             1421          Section 20. Section 32B-4-206 (Effective 07/01/11) is amended to read:
             1422           32B-4-206 (Effective 07/01/11). Searches, seizures, forfeitures, and fines.


             1423          (1) The following are subject to forfeiture pursuant to Title 24, Chapter 1, Utah
             1424      Uniform Forfeiture Procedures Act:
             1425          (a) an alcoholic product possessed, purchased, used, stored, sold, offered for sale,
             1426      furnished, given, received, warehoused, manufactured, distributed, shipped, carried,
             1427      transported, or adulterated in violation of this title or commission rules;
             1428          (b) a [package] container or property used or intended for use as a [package] container
             1429      for an alcoholic product in violation of this title or commission rules;
             1430          (c) raw materials, products, and equipment used, or intended for use, in manufacturing,
             1431      processing, delivering, importing, exporting, or adulterating an alcoholic product in violation
             1432      of this title or commission rules;
             1433          (d) implements, furniture, fixtures, or other personal property used or kept for a
             1434      violation of this title or commission rules;
             1435          (e) conveyances including an aircraft, vehicle, or vessel used or intended for use, to
             1436      transport or in any manner facilitate the transportation, sale, receipt, possession, or
             1437      concealment of property described in Subsection (1)(a), (b), (c), or (d); and
             1438          (f) a record used or intended for use in violation of this title or commission rules.
             1439          (2) (a) Property subject to forfeiture under this title may be seized by a peace officer of
             1440      this state or any other person authorized by law upon process issued by a court having
             1441      jurisdiction over the property in accordance with the Utah Rules of Criminal Procedure relating
             1442      to search warrants or administrative warrants.
             1443          (b) Notwithstanding Subsection (2)(a), seizure without process may be made when:
             1444          (i) the seizure is incident to an arrest or search under a search warrant or an inspection
             1445      under an administrative inspection warrant;
             1446          (ii) the property subject to seizure has been the subject of a prior judgment in favor of
             1447      the state in a criminal injunction or forfeiture proceeding under this title;
             1448          (iii) the peace officer or other person authorized by law has probable cause to believe
             1449      that the property is directly or indirectly dangerous to health or safety; or
             1450          (iv) the peace officer or other person authorized by law has probable cause to believe
             1451      that the property is being or has been used, intended to be used, held, or kept in violation of this
             1452      title or commission rules.
             1453          (3) If property is seized pursuant to a search or administrative warrant, a peace officer


             1454      or other person authorized by law shall comply with the requirements of the Utah Rules of
             1455      Criminal Procedure.
             1456          (4) (a) If property is seized without process:
             1457          (i) the peace officer or other person authorized by law shall make a return of the peace
             1458      officer's or person's acts without delay directly to the district court of the county in which the
             1459      property was located; and
             1460          (ii) the district court shall have jurisdiction of the case.
             1461          (b) A return shall describe:
             1462          (i) the property seized;
             1463          (ii) the place where the property is seized; and
             1464          (iii) any person in apparent possession of the property.
             1465          (c) A peace officer or other person described in Subsection (4)(a) shall promptly:
             1466          (i) deliver a written inventory of anything seized to any person in apparent authority at
             1467      the premises where the seizure is made; or
             1468          (ii) post a written inventory of anything seized in a conspicuous place at the premises.
             1469          (d) A written inventory under this Subsection (4) shall state the place where the
             1470      property is being held.
             1471          (5) Property taken or detained under this section is not repleviable but is considered in
             1472      custody of the law enforcement agency making the seizure subject only to the orders of the
             1473      court or the official having jurisdiction. When property is seized under this title, the
             1474      appropriate person or agency may:
             1475          (a) place the property under seal;
             1476          (b) remove the property to a place designated by:
             1477          (i) the person or agency; or
             1478          (ii) the warrant under which the property is seized; or
             1479          (c) take custody of the property and remove the property to an appropriate location for
             1480      disposition in accordance with law.
             1481          (6) When property is subject to forfeiture under this section, a proceeding shall be
             1482      instituted in accordance with Title 24, Chapter 1, Utah Uniform Forfeiture Procedures Act.
             1483          (7) When property is ordered forfeited under Title 24, Chapter 1, Utah Uniform
             1484      Forfeiture Procedures Act, by a finding of a court that no person is entitled to recover the


             1485      property, the property, if an alcohol [package] container or product used as a [package]
             1486      container for an alcoholic product, shall be disposed of as follows:
             1487          (a) An alcoholic product shall be sold in accordance with Section 24-1-17 if the
             1488      alcoholic product is:
             1489          (i) unadulterated, pure, and free from crude, unrectified, or impure form of ethylic
             1490      alcohol, or any other deleterious substance or liquid; and
             1491          (ii) otherwise in saleable condition.
             1492          (b) If the alcoholic product is impure, adulterated, or otherwise unfit for sale, the
             1493      department shall destroy the alcoholic product and its [package] container under competent
             1494      supervision.
             1495          (8) Except when otherwise provided, a fine or forfeiture levied under this title shall be
             1496      paid to the county treasurer of the county in which the prosecution occurred.
             1497          Section 21. Section 32B-4-208 (Effective 07/01/11) is amended to read:
             1498           32B-4-208 (Effective 07/01/11). Nuisances.
             1499          (1) As used in this section, "nuisance" means:
             1500          (a) a room, house, building, structure, place, aircraft, vehicle, vessel, or other
             1501      conveyance where an alcoholic product is possessed, purchased, used, kept, stored, sold,
             1502      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1503      carried, transported, or adulterated in violation of this title; or
             1504          (b) an alcoholic product, [package] container, equipment, or other property kept or
             1505      used in maintaining an item or property described in Subsection (1)(a).
             1506          (2) A person who maintains or assists in maintaining a nuisance is guilty of a class B
             1507      misdemeanor.
             1508          (3) If a person has knowledge that, or has reason to believe that the person's room,
             1509      house, building, structure, place, aircraft, vehicle, vessel, or other conveyance is occupied or
             1510      used as a nuisance, or allows it to be occupied or used as a nuisance, the nuisance property is
             1511      subject to a lien for and may be sold to pay the fines and costs assessed against the person
             1512      guilty of the common nuisance. This lien may be enforced by action in a court having
             1513      jurisdiction.
             1514          (4) (a) The department shall bring an action to abate a nuisance in the name of the
             1515      department in a court having jurisdiction.


             1516          (b) An action brought under this Subsection (4) is an action in equity.
             1517          (c) The department may not be required to post a bond to initiate an action under this
             1518      Subsection (4).
             1519          (d) A court may issue:
             1520          (i) if it appears that a nuisance exists, a temporary writ of injunction restraining the
             1521      defendant from conducting or permitting the continuance of the nuisance until the conclusion
             1522      of the trial; and
             1523          (ii) an order restraining the defendant and any other person from removing or
             1524      interfering with an alcoholic product, [package] container, equipment, or other property kept or
             1525      used in violation of this title or commission rules.
             1526          (e) In an action to abate or enjoin a nuisance, the court need not find that the property
             1527      involved is being unlawfully used at the time of the hearing.
             1528          (f) On finding that a material allegation of a petition or complaint is true, the court
             1529      shall order that an alcoholic product may not be possessed, purchased, used, kept, stored, sold,
             1530      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1531      carried, transported, or adulterated, in any portion of the room, house, building, structure,
             1532      place, aircraft, vehicle, vessel, or other conveyance.
             1533          (g) Upon judgment of a court ordering abatement of the nuisance, the court may order
             1534      that the premises or conveyance in question may not be occupied or used for any purpose for
             1535      one year, except under Subsection (4)(h).
             1536          (h) A court may permit premises or conveyance described in Subsection (4)(g) to be
             1537      occupied or used:
             1538          (i) if its owner, lessee, tenant, or occupant gives bond in an appropriate amount with
             1539      sufficient surety, approved by the court, payable to the state;
             1540          (ii) on the condition that an alcoholic product will not be present in or on the premises
             1541      or the conveyance; and
             1542          (iii) on the condition that payment of the fines, costs, and damages assessed for
             1543      violation of this title or commission rules will be made.
             1544          (5) If a tenant of the premises uses the premises or any part of the premises in
             1545      maintaining a nuisance, or knowingly permits use by another, the lease is void and the right to
             1546      possession reverts to the owner or lessor who is entitled to the remedy provided by law for


             1547      forcible detention of the premises.
             1548          (6) A person is guilty of assisting in maintaining a nuisance as provided in Section
             1549      76-10-804 , if that person:
             1550          (a) knowingly permits a building or premises owned or leased by the person, or under
             1551      the person's control, or any part of a building or premises, to be used in maintaining a nuisance;
             1552      or
             1553          (b) after being notified in writing by a prosecutor or other citizen of the unlawful use,
             1554      fails to take all proper measures to:
             1555          (i) abate the nuisance; or
             1556          (ii) remove the one or more persons from the premises.
             1557          Section 22. Section 32B-4-406 (Effective 07/01/11) is amended to read:
             1558           32B-4-406 (Effective 07/01/11). Unlawful sale, offer for sale, or furnishing of
             1559      beer.
             1560          (1) Except as provided in Subsection (2):
             1561          (a) a person may not sell, offer for sale, or furnish beer to the general public in a
             1562      [package] container that exceeds two liters; and
             1563          (b) a person may not purchase or possess beer in a [package] container that exceeds
             1564      two liters.
             1565          (2) (a) A retail licensee may sell, offer for sale, or furnish beer on draft subject to the
             1566      requirements of Section 32B-5-304 .
             1567          (b) A retail licensee may purchase or possess beer in a [package] container that exceeds
             1568      two liters to be dispensed on draft for consumption subject to the requirements of Section
             1569      32B-5-304 .
             1570          (c) A beer wholesaler licensee may sell, offer for sale, or furnish beer in a [package]
             1571      container that exceeds two liters to a retail licensee described in Subsection (2)(a).
             1572          Section 23. Section 32B-4-420 (Effective 07/01/11) is amended to read:
             1573           32B-4-420 (Effective 07/01/11). Unlawful adulteration.
             1574          (1) For purposes of this section, "tamper" means to do one or more of the following to
             1575      the contents of a [package] container:
             1576          (a) fortify;
             1577          (b) adulterate;


             1578          (c) contaminate;
             1579          (d) dilute;
             1580          (e) change its character or purity; or
             1581          (f) otherwise change.
             1582          (2) A person may not, for any purpose, mix or allow to be mixed with an alcoholic
             1583      product sold or supplied by the person as a beverage any of the following:
             1584          (a) a drug;
             1585          (b) methylic alcohol;
             1586          (c) a crude, unrectified, or impure form of ethylic alcohol; or
             1587          (d) another deleterious substance.
             1588          (3) (a) The following may not engage in an act listed in Subsection (3)(b):
             1589          (i) a package agent;
             1590          (ii) a retail licensee;
             1591          (iii) a permittee;
             1592          (iv) a beer wholesaler licensee;
             1593          (v) a liquor warehouser licensee;
             1594          (vi) a supplier; or
             1595          (vii) an importer.
             1596          (b) A person listed in Subsection (3)(a) may not:
             1597          (i) tamper with the contents of a [package] container of alcoholic product as originally
             1598      marketed by a manufacturer;
             1599          (ii) refill or partly refill with any substance the contents of an original [package]
             1600      container of alcoholic product as originally marketed by a manufacturer;
             1601          (iii) misrepresent the brand of an alcoholic product sold or offered for sale; or
             1602          (iv) sell or furnish a brand of alcoholic product that is not the same as that ordered by a
             1603      purchaser without first advising the purchaser of the difference.
             1604          Section 24. Section 32B-4-422 (Effective 07/01/11) is amended to read:
             1605           32B-4-422 (Effective 07/01/11). Unlawful dispensing.
             1606          (1) For purposes of this section:
             1607          (a) "Primary spirituous liquor" means the main distilled spirit in a beverage.
             1608          (b) "Primary spirituous liquor" does not include a secondary alcoholic product used as


             1609      a flavoring in conjunction with the primary distilled spirit in a beverage.
             1610          (2) A retail licensee licensed under this title to sell, offer for sale, or furnish spirituous
             1611      liquor for consumption on the licensed premises, or staff of the retail licensee may not:
             1612          (a) sell, offer for sale, or furnish a primary spirituous liquor to a person on the licensed
             1613      premises except in a quantity that does not exceed 1.5 ounces per beverage dispensed through a
             1614      calibrated metered dispensing system approved by the department;
             1615          (b) sell, offer for sale, or furnish more than a total of 2.5 ounces of spirituous liquor per
             1616      beverage;
             1617          (c) allow a person on the licensed premises to have more than a total of 2.5 ounces of
             1618      spirituous liquor at a time; or
             1619          (d) (i) except as provided in Subsection (2)(d)(ii), allow a person to have more than
             1620      two spirituous liquor beverages at a time; or
             1621          (ii) allow a person on the premises of the following to have more than one spirituous
             1622      liquor beverage at a time:
             1623          (A) a full-service restaurant licensee;
             1624          (B) a person operating under a full-service restaurant sublicense;
             1625          (C) an on-premise banquet licensee;
             1626          (D) a person operating under an on-premise banquet [license] sublicense; or
             1627          (E) a single event permittee.
             1628          (3) A violation of this section is a class C misdemeanor.
             1629          Section 25. Section 32B-4-507 (Effective 07/01/11) is amended to read:
             1630           32B-4-507 (Effective 07/01/11). Interfering with manufacturer, supplier, or
             1631      importer.
             1632          (1) Except as provided in Subsection (2), a commissioner, the director, or a department
             1633      employee may not directly or indirectly participate in any manner, by recommendation or
             1634      otherwise, in the appointment, employment, or termination of appointment or employment of
             1635      staff by:
             1636          (a) a manufacturer of liquor;
             1637          (b) a supplier of liquor to the department; or
             1638          (c) an importer of liquor to the department.
             1639          (2) A person described in Subsection (1) may participate in the appointment,


             1640      employment, or termination of appointment or employment to:
             1641          (a) determine qualifications for licensing in accordance with Chapter 11,
             1642      Manufacturing and Related Licenses Act; or
             1643          (b) enforce compliance with this title.
             1644          Section 26. Section 32B-4-704 (Effective 07/01/11) is amended to read:
             1645           32B-4-704 (Effective 07/01/11). Tied house -- Prohibitions.
             1646          (1) (a) It is unlawful for an industry member, directly or indirectly, or through an
             1647      affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from
             1648      the department to the exclusion in whole or in part of a product sold or offered for sale by
             1649      another person by acquiring or holding an interest in a license with respect to the premises of a
             1650      retailer, except when the license is held by a retailer that is completely owned by the industry
             1651      member.
             1652          (b) Interest in a retail license includes an interest acquired by a corporate official,
             1653      partner, employee, or other representative of the industry member.
             1654          (c) An interest in a retail license acquired by a separate corporation in which the
             1655      industry member or the industry member's officials hold ownership or are otherwise affiliated
             1656      is an interest in a retail license.
             1657          (d) Less than complete ownership of a retail business by an industry member
             1658      constitutes an interest in a retail license within the meaning of Subsection (1)(a).
             1659          (2) (a) It is unlawful for an industry member, directly or indirectly, or through an
             1660      affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from
             1661      the department to the exclusion in whole or in part of a product sold or offered for sale by
             1662      another person by acquiring an interest in real or personal property owned, occupied, or used
             1663      by the retailer in the conduct of the retailer's business.
             1664          (b) For purposes of Subsection (2)(a):
             1665          (i) "interest" does not include complete ownership of a retail business by an industry
             1666      member;
             1667          (ii) interest in retail property includes an interest acquired by a corporate official,
             1668      partner, employee, or other representative of the industry member;
             1669          (iii) any interest in a retail license acquired by a separate corporation in which the
             1670      industry member or its officials hold ownership or are otherwise affiliated is an interest in the


             1671      retailer's property;
             1672          (iv) less than complete ownership of a retail business by an industry member
             1673      constitutes an interest in retail property;
             1674          (v) the acquisition of a mortgage on a retailer's real or personal property by an industry
             1675      member constitutes an interest in the retailer's property; and
             1676          (vi) the renting of display space by an industry member at a retail establishment
             1677      constitutes an interest in the retailer's property.
             1678          (3) (a) Subject to Section 32B-4-705 , it is unlawful for an industry member, directly or
             1679      indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the
             1680      industry member or from the department to the exclusion in whole or in part of a product sold
             1681      or offered for sale by another person by furnishing, giving, renting, lending, or selling to the
             1682      retailer equipment, a fixture, a sign, supplies, money, a service, or other thing of value.
             1683          (b) (i) For purposes of this Subsection (3), indirect inducement includes:
             1684          (A) furnishing a thing of value to a third party when the benefit resulting from the thing
             1685      of value flows to an individual retailer; and
             1686          (B) making a payment for advertising to a retailer association or a display company
             1687      when the resulting benefits flow to an individual retailer.
             1688          (ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:
             1689          (A) the thing of value is furnished to a retailer by the third party without the knowledge
             1690      or intent of the industry member; or
             1691          (B) the industry member does not reasonably foresee that the thing of value would be
             1692      furnished to a retailer.
             1693          (c) Anything that may lawfully be furnished, given, rented, lent, or sold by industry
             1694      members to retailers under Section 32B-4-705 may be furnished directly by a third party to a
             1695      retailer.
             1696          (d) (i) A transaction in which equipment is sold to a retailer by an industry member,
             1697      except as provided in Section 32B-4-705 , is the selling of equipment within the meaning of
             1698      Subsection (3)(a) regardless of how the equipment is sold.
             1699          (ii) The negotiation by an industry member of a special price to a retailer for equipment
             1700      from an equipment company is the furnishing of a thing of value within the meaning of
             1701      Subsection (3)(a).


             1702          (e) The furnishing of free warehousing by delaying delivery of an alcoholic product
             1703      beyond the time that payment for the product is received, or if a retailer is purchasing on credit,
             1704      delaying final delivery of products beyond the close of the period of time for which credit is
             1705      lawfully extended, is the furnishing of a service or thing of value within the meaning of
             1706      Subsection (3)(a).
             1707          (f) A financial, legal, administrative, or influential assistance given a retailer by an
             1708      industry member in the retailer's acquisition of the retailer's license is the furnishing of a
             1709      service or thing of value within the meaning of Subsection (3)(a).
             1710          (4) It is unlawful for an industry member, directly or indirectly, or through an affiliate,
             1711      to induce a retailer to purchase an alcoholic product from the industry member or from the
             1712      department to the exclusion in whole or in part of a product sold or offered for sale by another
             1713      person by paying or crediting the retailer for an advertising, display, or distribution service:
             1714          (a) as defined in and to the extent restricted by 27 C.F.R. Sec. 6.51 through 6.56; and
             1715          (b) subject to the exceptions:
             1716          (i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and
             1717          (ii) for advertising services listed in 27 C.F.R. Sec. 6.98.
             1718          (5) It is unlawful for an industry member, directly or indirectly, or through an affiliate,
             1719      to induce a retailer to purchase an alcoholic product from the industry member or from the
             1720      department to the exclusion in whole or in part of a product sold or offered for sale by another
             1721      person by guaranteeing a loan or the repayment of a financial obligation of the retailer.
             1722          (6) (a) It is unlawful for an industry member, directly or indirectly, or through an
             1723      affiliate, to induce a retailer to purchase beer from the industry member to the exclusion in
             1724      whole or in part of a beer product sold or offered for sale by another person by extending to a
             1725      retailer credit for a period in excess of 15 days from the date of delivery to the date of full legal
             1726      discharge from all indebtedness arising from the transaction by the retailer paying cash or its
             1727      equivalent, unless:
             1728          (i) beer purchased or delivered during the first 15 days of any month is paid for in cash
             1729      or its equivalent on or before the 25th day of the same month; and
             1730          (ii) beer purchased or delivered after the 15th day of any month is paid for in cash or its
             1731      equivalent on or before the 10th day of the next succeeding month.
             1732          (b) A first party in-state check is considered cash payment if the check is:


             1733          (i) honored on presentment; and
             1734          (ii) received under the terms prescribed in Subsection (6)(a).
             1735          (c) An extension of credit for product purchased by an industry member to a retailer
             1736      whose account is in arrears does not constitute a violation of Subsection (6)(a) if the retailer
             1737      pays in advance or on delivery an amount equal to or greater than the value of each order,
             1738      regardless of the manner in which the industry member applies the payment in its records.
             1739          (7) (a) It is unlawful for an industry member, directly or indirectly, or through an
             1740      affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from
             1741      the department to the exclusion in whole or in part of a product sold or offered for sale by
             1742      another person by requiring:
             1743          (i) the department to take and dispose of a certain quota of a product; or
             1744          (ii) a beer retailer to take and dispose of a certain quota of a beer product.
             1745          (b) (i) It is an unlawful means to induce to require:
             1746          (A) the department to purchase one product in order to purchase another product; or
             1747          (B) a beer retailer to purchase one beer product in order to purchase another beer
             1748      product.
             1749          (ii) This Subsection (7)(b) includes:
             1750          (A) the requirement to take a minimum quantity of a product in standard packaging in
             1751      order to obtain the same product in some type of premium [package] container such as:
             1752          (I) a distinctive decanter; or
             1753          (II) a wooden or tin box; or
             1754          (B) combination sales if one or more products may be purchased only in combination
             1755      with another product and not individually.
             1756          (c) This Subsection (7) does not preclude the selling, at a special combination price, of
             1757      two or more kinds or brands of products so long as the department or beer retailer:
             1758          (i) has the option of purchasing either product at the usual price; and
             1759          (ii) is not required to purchase a product the department or beer retailer does not want.
             1760          (d) An industry member may package and distribute an alcoholic product in
             1761      combination with other nonalcoholic items.
             1762          (e) A combination package shall be designed to be delivered intact to the consumer and
             1763      the additional cost incurred by the industry member shall be included in the cost to the


             1764      department or beer retailer.
             1765          Section 27. Section 32B-4-705 (Effective 07/01/11) is amended to read:
             1766           32B-4-705 (Effective 07/01/11). Exclusions from tied house prohibitions.
             1767          (1) Notwithstanding Subsection 32B-4-704 (3), a thing of value may be furnished by an
             1768      industry member to a retailer under the conditions and within the limitations prescribed in:
             1769          (a) this section; and
             1770          (b) the applicable federal laws cited in this section.
             1771          (2) The following may be furnished by an industry member:
             1772          (a) a product display as provided in 27 C.F.R. Sec. 6.83;
             1773          (b) point of sale advertising material or a consumer advertising specialty as provided in
             1774      27 C.F.R. Sec. 6.84;
             1775          (c) a thing of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
             1776          (d) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
             1777          (e) combination packaging as provided in 27 C.F.R. Sec. 6.93;
             1778          (f) an educational seminar as provided in 27 C.F.R. Sec. 6.94;
             1779          (g) a consumer promotion as provided in 27 C.F.R. Sec. 6.96;
             1780          (h) an advertising service as provided in 27 C.F.R. Sec. 6.98;
             1781          (i) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
             1782          (j) merchandise as provided in 27 C.F.R. Sec. 6.101; and
             1783          (k) an outside sign as provided in 27 C.F.R. Sec. 6.102.
             1784          (3) The following exceptions provided in federal law are not applicable:
             1785          (a) the exception for a sample as provided in 27 C.F.R. Sec. 6.91;
             1786          (b) the exception for a consumer tasting or sampling at a retail establishment as
             1787      provided in 27 C.F.R. Sec. 6.95; and
             1788          (c) the exception for participation in a retailer association activity provided in 27
             1789      C.F.R. Sec. 6.100.
             1790          (4) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall maintain
             1791      a record:
             1792          (a) of an item furnished to a retailer;
             1793          (b) on the premises of the industry member; and
             1794          (c) for a three-year period.


             1795          (5) A sample of liquor may be provided to the department under the following
             1796      conditions:
             1797          (a) With the department's permission, an industry member may submit a department
             1798      sample to the department for product testing, analysis, and sampling.
             1799          (b) No more than two department samples of a particular type, vintage, and production
             1800      lot of a particular branded product may be submitted to the department for department testing,
             1801      analysis, and sampling within a consecutive 120-day period.
             1802          (c) (i) A department sample may not exceed 1 liter.
             1803          (ii) Notwithstanding Subsection (5)(c)(i), a department sample of the following may
             1804      not exceed 1.5 liters unless that exact alcoholic product is only commercially packaged in a
             1805      larger size, not to exceed 5 liters:
             1806          (A) wine;
             1807          (B) heavy beer; or
             1808          (C) a flavored malt beverage.
             1809          (d) A department sample submitted to the department:
             1810          (i) shall be shipped prepaid by the industry member by common carrier; and
             1811          (ii) may not be shipped by United States mail directly to the department's central
             1812      administrative warehouse office.
             1813          (e) A department sample may not be shipped to any other location within the state.
             1814          (f) The industry member shall submit with a department sample submitted to the
             1815      department a letter from the industry member that clearly:
             1816          (i) identifies the product as a "department sample"; and
             1817          (ii) states the FOB case price of the product.
             1818          (g) (i) The department may transfer a listed item from current stock:
             1819          (A) for use as a comparison control sample; or
             1820          (B) to verify product spoilage as considered appropriate.
             1821          (ii) The department shall charge back a sample transferred under this Subsection (5)(g)
             1822      to the respective industry member.
             1823          (h) The department shall:
             1824          (i) account for, label, and record a department sample received or transferred;
             1825          (ii) account for the department sample's disposition; and


             1826          (iii) maintain a record of the sample and its disposition for a two-year period.
             1827          (i) The department shall affix to each [package] container of a department sample a
             1828      label clearly identifying the product as a "department sample."
             1829          (j) The department shall dispose of a department sample delivered to the department or
             1830      transferred from the department's current stock in one of the following ways as chosen by the
             1831      department:
             1832          (i) test and analyze the department sample, with the remaining contents destroyed
             1833      under controlled and audited conditions established by the department;
             1834          (ii) destroy the entire contents of the department sample under controlled and audited
             1835      conditions established by the department; or
             1836          (iii) add the department sample to the inventory of the department for sale to the
             1837      public.
             1838          (k) A person other than an authorized department official may not be in possession of a
             1839      department sample except as otherwise provided.
             1840          (l) The department shall handle a liquor item received by the department from a
             1841      supplier that is not designated as a sample by the supplier, but that is an item not specifically
             1842      listed on a department purchase order, in accordance with this Subsection (5).
             1843          (m) The department may not use its money to pay freight or charges on a sample or a
             1844      liquor item:
             1845          (i) shipped to the department by a supplier; and
             1846          (ii) not listed on a department purchase order.
             1847          (6) A sample of beer may be provided by a beer industry member to a retailer under the
             1848      conditions listed in this Subsection (6).
             1849          (a) A sample of beer may be provided by an industry member only to a retailer who has
             1850      not purchased the brand of beer from that industry member within the last 12 months.
             1851          (b) For each retailer, the industry member may give not more than three gallons of any
             1852      brand of beer, except that if a particular product is not available in a size within the quantity
             1853      limitation, an industry member may furnish the next largest size.
             1854          (7) An educational seminar may involve an industry member under the conditions
             1855      listed in this Subsection (7).
             1856          (a) An industry member may provide or participate in an educational seminar:


             1857          (i) involving:
             1858          (A) the department;
             1859          (B) a retailer;
             1860          (C) a holder of a scientific or educational special use permit;
             1861          (D) another industry member; or
             1862          (E) an employee of a person listed in Subsections (7)(a)(i)(A) through (D); and
             1863          (ii) regarding a topic such as:
             1864          (A) merchandising and product knowledge;
             1865          (B) use of equipment; and
             1866          (C) a tour of an alcoholic product manufacturing facility.
             1867          (b) An industry member may not pay the expenses of or compensate a person who is a
             1868      department employee, a retailer, or a permittee for attending a seminar or tour described in
             1869      Subsection (7)(a).
             1870          (8) (a) A liquor industry member may conduct a tasting of a liquor product of the
             1871      industry member:
             1872          (i) for the department, at the department's request; and
             1873          (ii) for a licensed industry representative, but only at the department's central
             1874      administrative warehouse office.
             1875          (b) A liquor industry member may only use a department sample or industry
             1876      representative sample when conducting a tasting of the industry member's liquor product.
             1877          (c) A beer industry member may conduct a tasting of a beer product for a beer retailer
             1878      either at:
             1879          (i) the industry member's premises; or
             1880          (ii) a retail establishment.
             1881          (d) Except to the extent authorized by commission rule, an alcoholic product industry
             1882      member may not conduct tasting or sampling activities with:
             1883          (i) a retailer; or
             1884          (ii) a member of the general public.
             1885          (9) A beer industry member may participate in a beer retailer association activity to the
             1886      extent authorized by 27 C.F.R. Sec. 6.100.
             1887          (10) (a) An industry member may contribute to a charitable, civic, religious, fraternal,


             1888      educational, or community activity, except the contribution may not be given to influence a
             1889      retailer in the selection of a product that may be sold at the activity.
             1890          (b) An industry member or retailer violates this Subsection (10) if:
             1891          (i) the industry member's contribution influences, directly or indirectly, the retailer in
             1892      the selection of a product; and
             1893          (ii) a competitor's product is excluded in whole or in part from sale at the activity.
             1894          (11) (a) An industry member may lease or furnish equipment listed in Subsection
             1895      (11)(b) to a retailer if:
             1896          (i) the equipment is leased or furnished for a special event;
             1897          (ii) a reasonable rental or service fee is charged for the equipment; and
             1898          (iii) the period for which the equipment is leased or furnished does not exceed 30 days.
             1899          (b) This Subsection (11) applies to the following equipment:
             1900          (i) a picnic pump;
             1901          (ii) a cold plate;
             1902          (iii) a tub;
             1903          (iv) a keg box;
             1904          (v) a refrigerated trailer;
             1905          (vi) a refrigerated van; or
             1906          (vii) a refrigerated draft system.
             1907          (12) (a) A liquor industry member may assist the department in:
             1908          (i) ordering, shipping, and delivering merchandise;
             1909          (ii) new product notification;
             1910          (iii) listing and delisting information;
             1911          (iv) price quotations;
             1912          (v) product sales analysis;
             1913          (vi) shelf management; and
             1914          (vii) an educational seminar.
             1915          (b) (i) A liquor industry member may, to acquire a new listing:
             1916          (A) solicit an order from the department; and
             1917          (B) submit to the department a sample of the liquor industry member's products under
             1918      Subsection (5) and price lists.


             1919          (ii) (A) An industry member is confined to the customer areas when the industry
             1920      member visits a state store or package agency unless otherwise approved.
             1921          (B) An industry member is confined to the office area of a state warehouse when the
             1922      industry member visits a state warehouse unless otherwise approved.
             1923          (13) A beer industry member may assist a beer retailer in:
             1924          (a) ordering, shipping, and delivering beer merchandise;
             1925          (b) new product notification;
             1926          (c) listing and delisting information;
             1927          (d) price quotations;
             1928          (e) product sales analysis;
             1929          (f) shelf management; and
             1930          (g) an educational seminar.
             1931          (14) A beer industry member may, to acquire a new listing:
             1932          (a) solicit an order from a beer retailer; and
             1933          (b) submit to a beer retailer a sample of the beer industry member's beer products under
             1934      Subsection (5) and price lists.
             1935          Section 28. Section 32B-5-303 (Effective 07/01/11) is amended to read:
             1936           32B-5-303 (Effective 07/01/11). Purchase and storage of an alcoholic product by a
             1937      retail licensee.
             1938          (1) (a) A retail licensee may not purchase liquor except from a state store or package
             1939      agency.
             1940          (b) A retail licensee may transport liquor purchased from a state store or package
             1941      agency from the place of purchase to the licensed premises.
             1942          (c) A retail licensee shall pay for liquor in accordance with rules established by the
             1943      commission.
             1944          (2) (a) (i) A [beer retailer] retail licensee may not purchase, acquire, possess for the
             1945      purpose of resale, or sell beer except beer that the [beer retailer] retail licensee purchases from:
             1946          (A) a beer wholesaler licensee; or
             1947          (B) a small brewer that manufactures the beer.
             1948          (ii) Violation of this Subsection (2)(a) is a class A misdemeanor.
             1949          (b) (i) If a [beer retailer] retail licensee purchases beer under Subsection (2)(a) from a


             1950      beer wholesaler licensee, the [beer retailer] retail licensee shall purchase beer only from a beer
             1951      wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
             1952      in which the [beer retailer] retail licensee is located, unless an alternate wholesaler is
             1953      authorized by the department to sell to the [beer retailer] retail licensee as provided in Section
             1954      32B-13-301 .
             1955          (ii) Violation of Subsection (2)(b) is a class B misdemeanor.
             1956          (3) A retail licensee may not store, sell, offer for sale, or furnish an alcoholic product in
             1957      a place other than as designated in the retail licensee's application, unless the retail licensee
             1958      first applies for and receives approval from the department for a change of location within the
             1959      licensed premises.
             1960          (4) A liquor storage area shall remain locked at all times other than those hours and
             1961      days when liquor sales are authorized by law.
             1962          Section 29. Section 32B-5-304 (Effective 07/01/11) is amended to read:
             1963           32B-5-304 (Effective 07/01/11). Portions in which alcoholic product may be sold.
             1964          (1) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor only
             1965      in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated
             1966      metered dispensing system approved by the department in accordance with commission rules
             1967      adopted under this title, except that:
             1968          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1969      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1970      requirements:
             1971          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1972      a primary spirituous liquor;
             1973          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1974          (iii) the retail licensee shall designate a location where flavorings are stored on the
             1975      floor plan submitted to the department; and
             1976          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1977          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1978      system if used:
             1979          (i) as a flavoring on a dessert; and
             1980          (ii) in the preparation of a flaming food dish, drink, or dessert; and


             1981          (c) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
             1982          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
             1983      individual portion that does not exceed 5 ounces per glass or individual portion.
             1984          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
             1985      a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
             1986          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             1987      not exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
             1988          (ii) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             1989      not to exceed 750 milliliters at a price fixed by the commission to a table of less than four
             1990      persons.
             1991          (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
             1992      [package] container at a price fixed by the commission, except that the original [package]
             1993      container may not exceed one liter.
             1994          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
             1995      original [package] container at a price fixed by the commission, except that the original
             1996      [package] container may not exceed one liter.
             1997          (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
             1998      beer for on-premise consumption:
             1999          (i) in an open original [package] container; and
             2000          (ii) in a [package] container on draft.
             2001          (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
             2002          (i) in a size of [package] container that exceeds two liters; or
             2003          (ii) to an individual patron in a size of [package] container that exceeds one liter.
             2004          Section 30. Section 32B-5-307 (Effective 07/01/11) is amended to read:
             2005           32B-5-307 (Effective 07/01/11). Bringing onto or removing alcoholic product
             2006      from premises.
             2007          (1) Except as provided in Subsection (3):
             2008          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
             2009      product for on-premise consumption.
             2010          (b) A retail licensee may not allow a person to:
             2011          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or


             2012          (ii) consume an alcoholic product brought onto the licensed premises by a person other
             2013      than the retail licensee.
             2014          (2) Except as provided in Subsection (3):
             2015          (a) A person may not carry from a licensed premises of a retail licensee an open
             2016      [package] container that:
             2017          (i) is used primarily for drinking purposes; and
             2018          (ii) contains an alcoholic product.
             2019          (b) A retail licensee may not permit a patron to carry from the licensed premises an
             2020      open [package] container described in Subsection (2)(a).
             2021          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
             2022      on-premise consumption if:
             2023          (i) permitted by the retail licensee; and
             2024          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
             2025          (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
             2026      patron shall deliver the bottled wine to a server or other representative of the retail licensee
             2027      upon entering the licensed premises.
             2028          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
             2029      wine service for a bottled wine carried onto the licensed premises in accordance with this
             2030      Subsection (3).
             2031          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
             2032      of wine purchased in the licensed premises, or brought onto the licensed premises in
             2033      accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
             2034          Section 31. Section 32B-5-308 (Effective 07/01/11) is amended to read:
             2035           32B-5-308 (Effective 07/01/11). Requirements on staff or others on premises --
             2036      Employing a minor.
             2037          (1) Staff of a retail licensee, while on duty, may not:
             2038          (a) consume an alcoholic product; or
             2039          (b) be intoxicated.
             2040          (2) (a) A retail licensee may not employ a minor to sell, offer for sale, furnish, or
             2041      dispense an alcoholic product.
             2042          (b) Notwithstanding Subsection (2)(a), unless otherwise prohibited in the provisions


             2043      related to the specific type of retail license, a retail licensee may employ a minor who is at least
             2044      16 years of age to enter the sale at a cash register or other sales recording device.
             2045          Section 32. Section 32B-6-205 (Effective 07/01/11) is amended to read:
             2046           32B-6-205 (Effective 07/01/11). Specific operational requirements for a
             2047      full-service restaurant license.
             2048          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2049      Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
             2050      shall comply with this section.
             2051          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2052      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2053          (i) a full-service restaurant licensee;
             2054          (ii) individual staff of a full-service restaurant licensee; or
             2055          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
             2056      licensee.
             2057          (2) In addition to complying with Subsection 32B-5-301 (3), a full-service restaurant
             2058      licensee shall display in a prominent place in the restaurant a list of the types and brand names
             2059      of liquor being furnished through the full-service restaurant licensee's calibrated metered
             2060      dispensing system.
             2061          (3) In addition to complying with Section 32B-5-303 , a full-service restaurant licensee
             2062      shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2063          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
             2064      licensee's premises shall make a written beverage tab for each table or group that orders or
             2065      consumes an alcoholic product on the premises.
             2066          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2067      alcoholic product ordered or consumed.
             2068          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2069      of employment as a server with a full-service restaurant licensee.
             2070          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
             2071      the licensed premises on any day during the period that:
             2072          (i) begins at midnight; and
             2073          (ii) ends at 11:59 a.m.


             2074          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
             2075      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer.
             2076          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
             2077      business from the sale of food, which does not include:
             2078          (a) mix for an alcoholic product; or
             2079          (b) a service charge.
             2080          (8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             2081      alcoholic product except in connection with an order for food prepared, sold, and furnished at
             2082      the licensed premises.
             2083          (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
             2084      culinary facilities for food preparation and dining accommodations.
             2085          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2086      more than two alcoholic products of any kind at a time before the patron.
             2087          (b) A patron may not have more than one spirituous liquor drink at a time before the
             2088      patron.
             2089          (c) An individual portion of wine is considered to be one alcoholic product under
             2090      Subsection (9)(a).
             2091          (10) A patron may consume an alcoholic product only:
             2092          (a) at:
             2093          (i) the patron's table;
             2094          (ii) a counter; or
             2095          (iii) a seating grandfathered bar structure; and
             2096          (b) where food is served.
             2097          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             2098      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2099      structure that is not a seating grandfathered bar structure.
             2100          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2101      may:
             2102          (i) sit;
             2103          (ii) be furnished an alcoholic product; and
             2104          (iii) consume an alcoholic product.


             2105          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2106      full-service restaurant licensee may not permit a minor to, and a minor may not:
             2107          (i) sit; or
             2108          (ii) consume food or beverages.
             2109          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2110      by a full-service restaurant licensee:
             2111          (A) as provided in Subsection 32B-5-308 (2); or
             2112          (B) to perform maintenance and cleaning services during an hour when the full-service
             2113      restaurant licensee is not open for business.
             2114          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2115      remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
             2116      premises in which the minor is permitted to be.
             2117          (12) Except as provided in Subsection 32B-5-307 (3), a full-service restaurant licensee
             2118      may dispense an alcoholic product only if:
             2119          (a) the alcoholic product is dispensed from:
             2120          (i) a grandfathered bar structure;
             2121          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2122      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2123      12, 2009; or
             2124          (iii) an area that is:
             2125          (A) separated from an area for the consumption of food by a patron by a solid, opaque,
             2126      permanent structural barrier such that the facilities for the storage or dispensing of an alcoholic
             2127      product are:
             2128          (I) not readily visible to a patron; and
             2129          (II) not accessible by a patron; and
             2130          (B) apart from an area used:
             2131          (I) for dining;
             2132          (II) for staging; or
             2133          (III) as a lobby or waiting area;
             2134          (b) the full-service restaurant licensee uses an alcoholic product that is:
             2135          (i) stored in an area described in Subsection (12)(a); or


             2136          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2137          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2138      [package] container;
             2139          (B) the unopened [package] container is taken to an area described in Subsection
             2140      (12)(a) before it is opened; and
             2141          (C) once opened, the [package] container is stored in an area described in Subsection
             2142      (12)(a); and
             2143          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2144      area described in Subsection (12)(a).
             2145          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
             2146      charge or fee made in connection with the sale, service, or consumption of liquor including:
             2147          (a) a set-up charge;
             2148          (b) a service charge; or
             2149          (c) a chilling fee.
             2150          Section 33. Section 32B-6-305 (Effective 07/01/11) is amended to read:
             2151           32B-6-305 (Effective 07/01/11). Specific operational requirements for a
             2152      limited-service restaurant license.
             2153          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2154      Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
             2155      licensee shall comply with this section.
             2156          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2157      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2158          (i) a limited-service restaurant licensee;
             2159          (ii) individual staff of a limited-service restaurant licensee; or
             2160          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
             2161      licensee.
             2162          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
             2163      for sale, furnish, or allow consumption of:
             2164          (i) spirituous liquor; or
             2165          (ii) a flavored malt beverage.
             2166          (b) A product listed in Subsection (2)(a) may not be on the premises of a


             2167      limited-service restaurant licensee except for use:
             2168          (i) as a flavoring on a dessert; and
             2169          (ii) in the preparation of a flaming food dish, drink, or dessert.
             2170          (3) In addition to complying with Section 32B-5-303 , a limited-service restaurant
             2171      licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2172          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
             2173      licensee's premises shall make a written beverage tab for each table or group that orders or
             2174      consumes an alcoholic product on the premises.
             2175          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2176      alcoholic product ordered or consumed.
             2177          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2178      of employment as a server with a limited-service restaurant licensee.
             2179          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
             2180      or heavy beer at the licensed premises on any day during the period that:
             2181          (i) begins at midnight; and
             2182          (ii) ends at 11:59 a.m.
             2183          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
             2184      the hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer.
             2185          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
             2186      restaurant business from the sale of food, which does not include a service charge.
             2187          (8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             2188      alcoholic product except in connection with an order for food prepared, sold, and furnished at
             2189      the licensed premises.
             2190          (b) A limited-service restaurant licensee shall maintain on the licensed premises
             2191      adequate culinary facilities for food preparation and dining accommodations.
             2192          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2193      more than two alcoholic products of any kind at a time before the patron.
             2194          (b) An individual portion of wine is considered to be one alcoholic product under
             2195      Subsection (9)(a).
             2196          (10) A patron may consume an alcoholic product only:
             2197          (a) at:


             2198          (i) the patron's table;
             2199          (ii) a counter; or
             2200          (iii) a seating grandfathered bar structure; and
             2201          (b) where food is served.
             2202          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             2203      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2204      structure that is not a seating grandfathered bar structure.
             2205          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2206      may:
             2207          (i) sit;
             2208          (ii) be furnished an alcoholic product; and
             2209          (iii) consume an alcoholic product.
             2210          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2211      limited-service restaurant licensee may not permit a minor to, and a minor may not:
             2212          (i) sit; or
             2213          (ii) consume food or beverages.
             2214          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2215      by a limited-service restaurant licensee:
             2216          (A) as provided in Subsection 32B-5-308 (2); or
             2217          (B) to perform maintenance and cleaning services during an hour when the
             2218      limited-service restaurant licensee is not open for business.
             2219          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2220      remaining or sitting at the bar structure en route to an area of a limited-service restaurant
             2221      licensee's premises in which the minor is permitted to be.
             2222          (12) Except as provided in Subsection 32B-5-307 (3), a limited-service restaurant
             2223      licensee may dispense an alcoholic product only if:
             2224          (a) the alcoholic product is dispensed from:
             2225          (i) a grandfathered bar structure;
             2226          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2227      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2228      12, 2009; or


             2229          (iii) an area that is:
             2230          (A) separated from an area for the consumption of food by a patron by a solid, opaque,
             2231      permanent structural barrier such that the facilities for the storage or dispensing of an alcoholic
             2232      product are:
             2233          (I) not readily visible to a patron; and
             2234          (II) not accessible by a patron; and
             2235          (B) apart from an area used:
             2236          (I) for dining;
             2237          (II) for staging; or
             2238          (III) as a lobby or waiting area;
             2239          (b) the limited-service restaurant licensee uses an alcoholic product that is:
             2240          (i) stored in an area described in Subsection (12)(a); or
             2241          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2242          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2243      [package] container;
             2244          (B) the unopened [package] container is taken to an area described in Subsection
             2245      (12)(a) before it is opened; and
             2246          (C) once opened, the [package] container is stored in an area described in Subsection
             2247      (12)(a); and
             2248          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2249      area described in Subsection (12)(a).
             2250          (13) A limited-service restaurant licensee may state in a food or alcoholic product
             2251      menu a charge or fee made in connection with the sale, service, or consumption of wine or
             2252      heavy beer including:
             2253          (a) a set-up charge;
             2254          (b) a service charge; or
             2255          (c) a chilling fee.
             2256          Section 34. Section 32B-6-405 (Effective 07/01/11) is amended to read:
             2257           32B-6-405 (Effective 07/01/11). Specific licensing requirements for club license.
             2258          (1) To obtain a club license, in addition to complying with Chapter 5, Part 2, Retail
             2259      Licensing Process, a person shall submit with the written application:


             2260          (a) (i) a statement as to whether the person is seeking to qualify as:
             2261          (A) an equity club licensee;
             2262          (B) a fraternal club licensee;
             2263          (C) a dining club licensee; or
             2264          (D) a social club licensee; and
             2265          (ii) evidence that the person meets the requirements for the type of club license for
             2266      which the person is applying;
             2267          (b) evidence that the person operates club premises where a variety of food is prepared
             2268      and served in connection with dining accommodations; and
             2269          (c) if the person is applying for an equity club license or fraternal club license, a copy
             2270      of the club's bylaws or house rules, and an amendment to those records.
             2271          (2) The commission may refuse to issue a club license to a person for an equity club
             2272      license or fraternal club license if the commission determines that a provision of the person's
             2273      bylaws or house rules, or amendments to those records is not:
             2274          (a) reasonable; and
             2275          (b) consistent with:
             2276          (i) the declared nature and purpose of the club licensee; and
             2277          (ii) the purposes of this part.
             2278          (3) (a) A club license expires on June 30 of each year.
             2279          (b) To renew a club license, a person shall comply with the requirements of Chapter 5,
             2280      Part 2, Retail Licensing Process, by no later than May 31.
             2281          (4) (a) The nonrefundable application fee for a club license is $250.
             2282          (b) The initial license fee for a club license is $2,500.
             2283          (c) The renewal fee for a club license is $1,600.
             2284          (5) The bond amount required for a [full-service restaurant] club license is the penal
             2285      sum of $10,000.
             2286          Section 35. Section 32B-6-605 (Effective 07/01/11) is amended to read:
             2287           32B-6-605 (Effective 07/01/11). Specific operational requirements for on-premise
             2288      banquet license.
             2289          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2290      Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee


             2291      shall comply with this section.
             2292          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2293      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2294          (i) an on-premise banquet licensee;
             2295          (ii) individual staff of an on-premise banquet licensee; or
             2296          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
             2297          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301 (4) and
             2298      (5) for the entire premises of the hotel, resort facility, sports center, or convention center that is
             2299      the basis for the on-premise banquet license.
             2300          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
             2301      shall provide the department with advance notice of a scheduled banquet in accordance with
             2302      rules made by the commission.
             2303          (b) Any of the following may conduct a random inspection of a banquet:
             2304          (i) an authorized representative of the commission or the department; or
             2305          (ii) a law enforcement officer.
             2306          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302 , but shall
             2307      make and maintain the records the commission or department requires.
             2308          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2309      accordance with this Subsection (4).
             2310          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
             2311      sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
             2312      location of the banquet.
             2313          (b) A host of a banquet, a patron, or a person other than the on-premise banquet
             2314      licensee or staff of the on-premise banquet licensee, may not remove an alcoholic product from
             2315      the premises of the banquet.
             2316          (c) Notwithstanding Section 32B-5-307 , a patron at a banquet may not bring an
             2317      alcoholic product into or onto, or remove an alcoholic product from the premises of a banquet.
             2318          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
             2319      the banquet following the conclusion of the banquet.
             2320          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
             2321          (i) destroy an opened and unused alcoholic product that is not saleable, under


             2322      conditions established by the department; and
             2323          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             2324          (A) opened and unused alcoholic product that is saleable; and
             2325          (B) unopened [package] container of an alcoholic product.
             2326          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed [package]
             2327      container of an alcoholic product not sold or consumed at a banquet, an on-premise banquet
             2328      licensee:
             2329          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
             2330      locked storage area; and
             2331          (ii) may use the alcoholic product at more than one banquet.
             2332          (7) Notwithstanding Section 32B-5-308 , an on-premise banquet licensee may not
             2333      employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
             2334      on-premise banquet licensee's banquet and room service activities.
             2335          (8) An on-premise banquet licensee may not sell, offer for sale, or furnish an alcoholic
             2336      product at a banquet or in connection with room service any day during a period that:
             2337          (a) begins at 1 a.m.; and
             2338          (b) ends at 9:59 a.m.
             2339          (9) An on-premise banquet licensee shall maintain at least 50% of its total annual
             2340      banquet gross receipts from the sale of food, not including:
             2341          (a) mix for an alcoholic product; and
             2342          (b) a charge in connection with the furnishing of an alcoholic product.
             2343          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
             2344      more than two alcoholic products of any kind at a time before the patron.
             2345          (b) A patron may not have more than one spirituous liquor drink at a time before the
             2346      patron.
             2347          (c) An individual portion of wine is considered to be one alcoholic product under
             2348      Subsection (10)(a).
             2349          (11) (a) An on-premise banquet licensee shall supervise and direct a person involved in
             2350      the sale, offer for sale, or furnishing of an alcoholic product.
             2351          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             2352      shall complete an alcohol training and education seminar.


             2353          (12) A staff person of an on-premise banquet licensee shall remain at the banquet at all
             2354      times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
             2355      banquet.
             2356          (13) (a) Room service of an alcoholic product to a guest room of a hotel or resort
             2357      facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
             2358      guest in the guest room.
             2359          (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
             2360          (c) An on-premise banquet licensee may only provide an alcoholic product for room
             2361      service in a sealed [package] container.
             2362          Section 36. Section 32B-6-706 (Effective 07/01/11) is amended to read:
             2363           32B-6-706 (Effective 07/01/11). Specific operational requirements for on-premise
             2364      beer retailer license.
             2365          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2366      Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply
             2367      with this section.
             2368          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2369      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2370          (i) an on-premise beer retailer;
             2371          (ii) individual staff of an on-premise beer retailer; or
             2372          (iii) both an on-premise beer retailer and staff of the on-premise beer retailer.
             2373          (2) (a) An on-premise beer retailer is not subject to Section 32B-5-302 , but shall make
             2374      and maintain the records the department requires.
             2375          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2376      accordance with this Subsection (2).
             2377          (3) Notwithstanding Section 32B-5-303 , an on-premise beer retailer may not store or
             2378      sell liquor on its licensed premises.
             2379          (4) Beer sold in a sealed [package] container by an on-premise beer retailer may be
             2380      removed from the on-premise beer retailer premises in the sealed [package] container.
             2381          (5) (a) Only an on-premise beer retailer that operates as a tavern is subject to
             2382      Subsection 32B-5-309 (1).
             2383          (b) An on-premise beer retailer is subject to Subsections 32B-5-309 (2) and (3)


             2384      regardless of whether it operates as a tavern.
             2385          (6) (a) An on-premise beer retailer may not sell, offer for sale, or furnish beer at its
             2386      licensed premises during a period that:
             2387          (i) begins at 1 a.m.; and
             2388          (ii) ends at 9:59 a.m.
             2389          (b) (i) Notwithstanding Subsection (5)(a), a tavern shall remain open for one hour after
             2390      the tavern ceases the sale and furnishing of beer during which time a patron of the tavern may
             2391      finish consuming a single serving of beer not exceeding 26 ounces.
             2392          (ii) A tavern is not required to remain open:
             2393          (A) after all patrons have vacated the premises; or
             2394          (B) during an emergency.
             2395          (c) A tavern may not allow a patron to remain on the licensed premises to consume
             2396      beer on the licensed premises during a period that:
             2397          (i) begins at 2 a.m.; and
             2398          (ii) ends at 9:59 a.m.
             2399          (7) Notwithstanding Section 32B-5-308 , a minor may not be on the premises of a
             2400      tavern.
             2401          (8) (a) (i) An on-premise beer retailer may not purchase, acquire, possess for the
             2402      purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases
             2403      from:
             2404          (A) a beer wholesaler licensee; or
             2405          (B) a small brewer that manufactures the beer.
             2406          (ii) Violation of Subsection (8)(a) is a class A misdemeanor.
             2407          (b) (i) If an on-premise beer retailer purchases beer under this Subsection (8) from a
             2408      beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer
             2409      wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
             2410      in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
             2411      the department to sell to the off-premise beer retailer as provided in Section 32B-13-301 .
             2412          (ii) Violation of Subsection (8)(b)(i) is a class B misdemeanor.
             2413          Section 37. Section 32B-7-202 (Effective 07/01/11) is amended to read:
             2414           32B-7-202 (Effective 07/01/11). General operational requirements for off-premise


             2415      beer retailer.
             2416          (1) (a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply
             2417      with this section.
             2418          (b) Failure to comply with this section may result in a suspension or revocation of a
             2419      local license.
             2420          (2) (a) (i) An off-premise beer retailer may not purchase, acquire, possess for the
             2421      purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases
             2422      from:
             2423          (A) a beer wholesaler licensee; or
             2424          (B) a small brewer that manufactures the beer.
             2425          (ii) A violation of Subsection (2)(a) is a class A misdemeanor.
             2426          (b) (i) If an off-premise beer retailer purchases beer under this Subsection (2) from a
             2427      beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer
             2428      wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
             2429      in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
             2430      the department to sell to the off-premise beer retailer as provided in Section 32B-13-301 .
             2431          (ii) A violation of Subsection (2)(b) is a class B misdemeanor.
             2432          (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a
             2433      [package] container larger than two liters.
             2434          (4) A minor may not sell beer on the licensed premises of an off-premise beer retailer
             2435      unless:
             2436          (a) the sale is done under the supervision of a person 21 years of age or older who is on
             2437      the licensed premises; and
             2438          (b) the minor is at least 16 years of age.
             2439          (5) (a) Subject to the other provisions of this Subsection (5), an off-premise beer
             2440      retailer shall:
             2441          (i) display beer sold by the off-premise beer retailer in an area that is visibly separate
             2442      and distinct from the area where nonalcoholic beverages are displayed; and
             2443          (ii) display a sign in the area described in Subsection (5)(a)(i) that:
             2444          (A) is prominent;
             2445          (B) is easily readable by a consumer;


             2446          (C) meets the requirements for format established by the commission by rule; and
             2447          (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
             2448      alcohol. Please read the label carefully."
             2449          (b) Notwithstanding Subsection (5)(a), a nonalcoholic beer may be displayed with beer
             2450      if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
             2451          (c) The requirements of this Subsection (5) apply to beer notwithstanding that it is
             2452      labeled, packaged, or advertised as:
             2453          (i) a malt cooler; or
             2454          (ii) a beverage that may provide energy.
             2455          (d) The commission shall define by rule what constitutes an "area that is visibly
             2456      separate and distinct from the area where a nonalcoholic beverage is displayed."
             2457          (e) A violation of this Subsection (5) is an infraction.
             2458          (6) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer or
             2459      who sells beer to a patron for consumption off the premises of the off-premise beer retailer
             2460      shall wear a unique identification badge:
             2461          (i) on the front of the staff's clothing;
             2462          (ii) visible above the waist;
             2463          (iii) bearing the staff's:
             2464          (A) first or last name;
             2465          (B) initials; or
             2466          (C) unique identification in letters or numbers; and
             2467          (iv) with the number or letters on the unique identification badge being sufficiently
             2468      large to be clearly visible and identifiable while engaging in or directly supervising the retail
             2469      sale of beer.
             2470          (b) An off-premise beer retailer shall make and maintain a record of each current staff's
             2471      unique identification badge assigned by the off-premise beer retailer that includes the staff's:
             2472          (i) full name;
             2473          (ii) address; and
             2474          (iii) (A) driver license number; or
             2475          (B) similar identification number.
             2476          (c) An off-premise beer retailer shall make available a record required to be made or


             2477      maintained under this Subsection (6) for immediate inspection by:
             2478          (i) a peace officer; or
             2479          (ii) a representative of the local authority that issues the off-premise beer retailer
             2480      license.
             2481          (d) A local authority may impose a fine of up to $250 against an off-premise beer
             2482      retailer that does not comply or require its staff to comply with this Subsection (6).
             2483          Section 38. Section 32B-8-401 (Effective 07/01/11) is amended to read:
             2484           32B-8-401 (Effective 07/01/11). Specific operational requirements for resort
             2485      license.
             2486          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2487      Requirements, a resort licensee, staff of the resort licensee, and a person otherwise operating
             2488      under a sublicense shall comply with this section.
             2489          (b) Subject to Section 32B-8-502 , failure to comply as provided in Subsection (1)(a)
             2490      may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             2491      Enforcement Act, against:
             2492          (i) a resort licensee;
             2493          (ii) individual staff of a resort licensee;
             2494          (iii) a person otherwise operating under a sublicense;
             2495          (iv) individual staff of a person otherwise operating under a sublicense; or
             2496          (v) any combination of the persons listed in this Subsection (1)(b).
             2497          (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product
             2498      except:
             2499          (i) on a sublicense premises;
             2500          (ii) pursuant to a permit issued under this title; or
             2501          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
             2502      6, Package Agency.
             2503          (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
             2504      provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
             2505          (i) if on a sublicense premises, in accordance with the operational requirements under
             2506      the provisions applicable to the sublicense, except as provided in Section 32B-8-402 ;
             2507          (ii) if under a permit issued under this title, in accordance with the operational


             2508      requirements under the provisions applicable to the permit; and
             2509          (iii) if as a package agency, in accordance with the contract with the department and
             2510      Chapter 2, Part 6, Package Agency.
             2511          (3) A resort licensee shall comply with Subsections 32B-5-301 (4) and (5) within the
             2512      boundary of the resort building.
             2513          (4) (a) Subject to Subsection (4)(b), a resort licensee shall operate in a manner so that
             2514      at least 70% of the annual aggregate of the gross receipts related to the sale of food or
             2515      beverages for the resort license and each of its sublicenses is from the sale of food, not
             2516      including:
             2517          (i) mix for an alcoholic product; and
             2518          (ii) a charge in connection with the service of an alcoholic product.
             2519          (b) In calculating the annual aggregate of the gross receipts described in Subsection
             2520      (4)(a), a resort licensee is not required to include in the calculation money from the sale of a
             2521      bottle of wine by the resort licensee or under a sublicense in excess of $250.
             2522          (5) (a) A resort licensee shall supervise and direct a person involved in the sale, offer
             2523      for sale, or furnishing of an alcoholic product under a resort license.
             2524          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             2525      under a resort license shall complete the alcohol training and education seminar.
             2526          (6) (a) Room service of an alcoholic product to a lodging accommodation of a resort
             2527      licensee shall be provided in person by staff of a resort licensee only to an adult occupant in the
             2528      lodging accommodation.
             2529          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
             2530      by an occupant.
             2531          (c) A resort licensee may only provide an alcoholic product for room service in a
             2532      sealed [package] container.
             2533          Section 39. Section 32B-9-204 (Effective 07/01/11) is amended to read:
             2534           32B-9-204 (Effective 07/01/11). General operational requirements for an event
             2535      permit.
             2536          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or
             2537      furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
             2538      with this title and rules of the commission.


             2539          (b) Failure to comply as provided in Subsection (1)(a):
             2540          (i) may result in:
             2541          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             2542      Enforcement Act, against:
             2543          (I) an event permittee;
             2544          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             2545      product at the event; or
             2546          (III) any combination of the persons listed in this Subsection (1)(b);
             2547          (B) immediate revocation of the event permit;
             2548          (C) forfeiture of a bond; or
             2549          (D) immediate seizure of an alcoholic product present at the event; and
             2550          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
             2551      event permit for a period of three years from the date of revocation of the event permit.
             2552          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
             2553      permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206 .
             2554          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             2555      the specific type of special use permit held by the special use permittee, the relevant part
             2556      governs.
             2557          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
             2558      event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
             2559      relevant part under this chapter for the type of event permit that is held by the event permittee.
             2560          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             2561      event permit held by an event permittee refers to "event permittee," a person involved in the
             2562      storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
             2563      event permit is issued is subject to the same requirement or prohibition.
             2564          (3) An event permittee shall display a copy of the event permit in a prominent place in
             2565      the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
             2566          (4) An event permittee may not on the premises of the event:
             2567          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             2568      Chapter 10, Part 11, Gambling;
             2569          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,


             2570      Part 11, Gambling; or
             2571          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2572      the risking of something of value for a return or for an outcome when the return or outcome is
             2573      based upon an element of chance, excluding the playing of an amusement device that confers
             2574      only an immediate and unrecorded right of replay not exchangeable for value.
             2575          (5) An event permittee may not knowingly allow a person at an event to, in violation of
             2576      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             2577      Paraphernalia Act:
             2578          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2579      58-37-2 ; or
             2580          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2581      Section 58-37a-3 .
             2582          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
             2583      purchases from:
             2584          (a) a beer wholesaler licensee;
             2585          (b) a beer retailer; or
             2586          (c) a small brewer.
             2587          (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
             2588      consumption of an alcoholic product purchased for an event in a location other than that
             2589      described in the application and designated on the event permit unless the event permittee first
             2590      applies for and receives approval from the commission for a change of location.
             2591          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
             2592      furnish beer for on-premise consumption:
             2593          (i) in an open original [package] container; and
             2594          (ii) in a [package] container on draft.
             2595          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
             2596      Subsection (8)(a):
             2597          (i) in a size of [package] container that exceeds two liters; or
             2598          (ii) to an individual patron in a size of [package] container that exceeds one liter.
             2599          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
             2600      than the cost of the alcoholic product to the event permittee.


             2601          (b) An event permittee may not sell or offer for sale an alcoholic product at a price that
             2602      encourages over consumption or intoxication.
             2603          (c) An event permittee may not sell or offer for sale an alcoholic product at a special or
             2604      reduced price for only certain hours of the day of an event.
             2605          (d) An event permittee may not sell, offer for sale, or furnish more than one alcoholic
             2606      product at the price of a single alcoholic product.
             2607          (e) An event permittee may not engage in a public promotion involving or offering a
             2608      free alcoholic product to the general public.
             2609          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
             2610          (a) a minor;
             2611          (b) a person actually, apparently, or obviously intoxicated;
             2612          (c) a known interdicted person; or
             2613          (d) a known habitual drunkard.
             2614          (11) (a) An alcoholic product is considered under the control of the event permittee
             2615      during an event.
             2616          (b) A patron at an event may not bring an alcoholic product onto the premises of the
             2617      event.
             2618          (12) An event permittee may not permit a patron to carry from the premises an open
             2619      [package] container that:
             2620          (a) is used primarily for drinking purposes; and
             2621          (b) contains an alcoholic product.
             2622          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
             2623      an event is considered under the supervision and direction of the event permittee.
             2624          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
             2625      an event may not, while on duty:
             2626          (i) consume an alcoholic product; or
             2627          (ii) be intoxicated.
             2628          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
             2629      event.
             2630          (15) The location specified in an event permit may not be changed without prior
             2631      written approval of the commission.


             2632          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
             2633      attempt in any way to dispose of the event permit to another person whether for monetary gain
             2634      or not.
             2635          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
             2636      consumption of an alcoholic product during a period that:
             2637          (i) begins at 1 a.m.; and
             2638          (ii) ends at 9:59 a.m.
             2639          (b) This Subsection (17) does not preclude a local authority from being more restrictive
             2640      with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
             2641      product at an event.
             2642          (18) A patron may have no more than one alcoholic product of any kind at a time
             2643      before the patron.
             2644          Section 40. Section 32B-9-302 (Effective 07/01/11) is amended to read:
             2645           32B-9-302 (Effective 07/01/11). Definitions.
             2646          As used in this [chapter] part:
             2647          (1) "120 hour single event permit" means a single event permit that authorizes under
             2648      this part the storage, sale, offering for sale, furnishing, and consumption of liquor for a period
             2649      not to exceed 120 consecutive hours.
             2650          (2) "72 hour single event permit" means a single event permit that authorizes under this
             2651      part the storage, sale, offering for sale, furnishing, and consumption of liquor for a period not
             2652      to exceed 72 consecutive hours.
             2653          (3) "Single event permit" means:
             2654          (a) a 120 hour single event permit; and
             2655          (b) a 72 hour single event permit.
             2656          Section 41. Section 32B-9-305 (Effective 07/01/11) is amended to read:
             2657           32B-9-305 (Effective 07/01/11). Specific operational requirements for single event
             2658      permit.
             2659          (1) (a) In addition to complying with Section 32B-9-204 , a single event permittee or a
             2660      person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the
             2661      event shall comply with this section.
             2662          (b) Failure to comply as provided in Subsection (1)(a):


             2663          (i) may result in:
             2664          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             2665      Enforcement Act, against:
             2666          (I) a single event permittee;
             2667          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             2668      product at the event; or
             2669          (III) any combination of persons listed in this Subsection (1)(b);
             2670          (B) immediate revocation of the single event permit;
             2671          (C) forfeiture of a bond; or
             2672          (D) immediate seizure of an alcoholic product present at the event; and
             2673          (ii) if the single event permit is revoked, disqualifies the single event permittee from
             2674      applying for a single event permit or temporary beer event permit for a period of three years
             2675      from the date of revocation of the single event permit.
             2676          (c) An alcoholic product seized under this Subsection (1) shall be returned to the single
             2677      event permittee after an event if forfeiture proceedings are not instituted under Section
             2678      32B-4-206 .
             2679          (2) (a) A single event permittee shall make and maintain an expense and revenue
             2680      ledger or record showing:
             2681          (i) expenditures made for:
             2682          (A) liquor;
             2683          (B) beer;
             2684          (C) set-ups; and
             2685          (D) an ingredient or component of an alcoholic product other than a set-up; and
             2686          (ii) the revenue from the sale of an alcoholic product.
             2687          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2688      accordance with this Subsection (2).
             2689          (3) A single event permittee shall purchase liquor stored, sold, offered for sale,
             2690      furnished, or consumed at an event from a state store or package agency.
             2691          (4) (a) A single event permittee may not sell, offer for sale, or furnish a primary
             2692      spirituous liquor in a quantity that exceeds 1.5 ounces per beverage, except that additional
             2693      spirituous liquor may be used in a beverage if:


             2694          (i) used as a secondary flavoring ingredient;
             2695          (ii) used in conjunction with the primary spirituous liquor;
             2696          (iii) the secondary ingredient is not the only spirituous liquor in the beverage;
             2697          (iv) a patron has no more than 2.5 ounces of spirituous liquor at a time before the
             2698      patron; and
             2699          (v) a patron has no more than one spirituous liquor drink at a time before the patron.
             2700          (b) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             2701      system.
             2702          (5) (a) A single event permittee may sell, offer for sale, or furnish wine by the glass or
             2703      an individual portion, except that a glass or individual portion may not exceed five ounces.
             2704          (b) A single event permittee may furnish an individual portion served to a patron in
             2705      more than one glass if the total amount of wine does not exceed five ounces.
             2706          (c) An individual portion of wine is considered to be one alcoholic product under
             2707      Subsection 32B-9-204 (12).
             2708          (d) A single event permittee may sell, offer for sale, or furnish wine in a [package]
             2709      container not exceeding 1.5 liters at a price fixed by the commission.
             2710          (6) A single event permittee may sell, offer for sale, or furnish heavy beer in an original
             2711      [package] container at a price fixed by the commission, except that the original [package]
             2712      container may not exceed one liter.
             2713          (7) A single event permittee may sell, offer for sale, or furnish a flavored malt beverage
             2714      in an original [package] container at a price fixed by the commission, except that the original
             2715      [package] container may not exceed one liter.
             2716          (8) (a) A single event permittee may sell liquor only at a price fixed by the
             2717      commission.
             2718          (b) A single event permittee may not sell liquor at a discount price on any date or at
             2719      any time.
             2720          (9) A single event permittee may perform a service and assess a service charge as
             2721      authorized by commission rule for liquor purchased at an event.
             2722          Section 42. Section 32B-10-404 (Effective 07/01/11) is amended to read:
             2723           32B-10-404 (Effective 07/01/11). Specific operational requirements for industrial
             2724      or manufacturing use permit.


             2725          (1) (a) In addition to complying with Section 32B-10-206 , an industrial or
             2726      manufacturing use permittee and staff of the industrial or manufacturing use permittee shall
             2727      comply with this section.
             2728          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2729      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2730          (i) an industrial or manufacturing use permittee;
             2731          (ii) individual staff of an industrial or manufacturing use permittee; or
             2732          (iii) an industrial or manufacturing use permittee and staff of the industrial or
             2733      manufacturing use permittee.
             2734          (2) An industrial or manufacturing use permittee may produce for lawful use and sale
             2735      the following:
             2736          (a) vinegar;
             2737          (b) preserved nonintoxicating cider;
             2738          (c) a food preparation;
             2739          (d) a United States Pharmacopoeia or national formulary preparation in conformity
             2740      with Title 58, Chapters 17b, 37, 37a, 37b, and 37c, if the preparation:
             2741          (i) conforms to standards established by:
             2742          (A) the Department of Agriculture and Food; and
             2743          (B) the Department of Health; and
             2744          (ii) contains no more alcohol than is necessary to preserve or extract the medicinal,
             2745      flavoring, or perfumed properties of the treated substances; and
             2746          (e) wood and denatured alcohol if manufactured in compliance with the formulas and
             2747      regulations under Title 27, C.F.R. Parts 19, 20, and 21.
             2748          (3) (a) An industrial or manufacturing use permittee that produces patent or proprietary
             2749      medicines containing alcohol may sell or offer for sale the medicines in the original and
             2750      unbroken [package] container if the medicine contains sufficient medication to prevent its use
             2751      as an alcoholic product.
             2752          (b) An industrial or manufacturing use permittee described in this Subsection (3) shall,
             2753      upon request by the department, provide a sufficient sample of the medicine to enable the
             2754      department to have the medicine analyzed for purposes of this section.
             2755          Section 43. Section 32B-11-608 (Effective 07/01/11) is amended to read:


             2756           32B-11-608 (Effective 07/01/11). Operational requirements for local industry
             2757      representative license.
             2758          (1) (a) A local industry representative licensee, staff of the local industry representative
             2759      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             2760      state, shall comply with this title and rules of the commission.
             2761          (b) If a person knowingly violates Subsection (1)(a):
             2762          (i) the violation may result in disciplinary action in accordance with Chapter 3,
             2763      Disciplinary Actions and Enforcement Act, against:
             2764          (A) a local industry representative licensee;
             2765          (B) individual staff of a local industry representative licensee; or
             2766          (C) both a local industry representative licensee and staff of the local industry
             2767      representative licensee; and
             2768          (ii) if the conditions of Subsection (1)(c) are met, the commission may order:
             2769          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             2770      department's sales list; and
             2771          (B) a suspension of the department's purchase of those products for a period
             2772      determined by the commission.
             2773          (c) Subsection (1)(b)(ii) applies if the manufacturer, supplier, or importer:
             2774          (i) directly commits the violation; or
             2775          (ii) solicits, requests, commands, encourages, or intentionally aides another to engage
             2776      in the violation.
             2777          (2) A local industry representative licensee shall display its license in the local industry
             2778      representative licensee's principal place of business.
             2779          (3) (a) A local industry representative licensee shall maintain on file with the
             2780      department a current accounts list of the names and addresses of the manufacturers, suppliers,
             2781      and importers the local industry representative licensee represents.
             2782          (b) A local industry representative licensee shall notify the department in writing of a
             2783      change to its accounts list within 14 days from the date the local industry representative
             2784      licensee:
             2785          (i) acquires the account of a manufacturer, supplier, or importer; or
             2786          (ii) loses the account of a manufacturer, supplier, or importer.


             2787          (4) (a) A local industry representative licensee shall make and maintain the records the
             2788      department requires for at least three years.
             2789          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2790      accordance with this Subsection (4).
             2791          (5) Staff of a local industry representative licensee may not be:
             2792          (a) a retail licensee that sells, offers for sale, or furnishes liquor;
             2793          (b) staff of a retail licensee that sells, offers for sale, or furnishes liquor; or
             2794          (c) a minor.
             2795          (6) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,
             2796      give, or attempt in any way to dispose of the license to another person, whether for monetary
             2797      gain or not.
             2798          (b) A local industry representative license has no monetary value for any type of
             2799      disposition.
             2800          (7) A local industry representative licensee, staff of the local industry representative
             2801      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             2802      state:
             2803          (a) only to the extent authorized by Chapter 4, Criminal Offenses and Procedure Act,
             2804      may:
             2805          (i) assist the department in:
             2806          (A) ordering, shipping, and delivering merchandise;
             2807          (B) providing new product notification;
             2808          (C) obtaining listing and delisting information;
             2809          (D) receiving price quotations;
             2810          (E) providing product sales analysis;
             2811          (F) conducting shelf management; and
             2812          (G) conducting educational seminars; and
             2813          (ii) to acquire new listings:
             2814          (A) solicit orders from the department; and
             2815          (B) submit to the department price lists and samples of the products of the
             2816      manufacturer, supplier, or importer;
             2817          (b) may not sell liquor within the state except to:


             2818          (i) the department; and
             2819          (ii) a military installation;
             2820          (c) may not ship or transport, or cause to be shipped or transported, liquor into this
             2821      state or from one place to another within this state;
             2822          (d) may not sell or furnish any liquor to any person within this state other than to:
             2823          (i) the department; or
             2824          (ii) a military installation;
             2825          (e) except as otherwise provided, may not advertise a product the local industry
             2826      representative licensee represents in violation of this title or any other federal or state law;
             2827          (f) shall comply with the trade practices provided in Chapter 4, Part 7, Trade Practices
             2828      Act; and
             2829          (g) may only provide a sample of a product of the manufacturer, supplier, or importer
             2830      for tasting and sampling purposes as provided in Section 32B-4-705 by the department.
             2831          (8) A local industry representative licensee may, to become educated as to the quality
             2832      and characteristics of a liquor that the licensee represents, taste and analyze an industry
             2833      representative sample under the conditions listed in this Subsection (8).
             2834          (a) A local industry representative licensee may not receive more than two industry
             2835      representative samples of a particular type, vintage, and production lot of a particular branded
             2836      product within a consecutive 120-day period.
             2837          (b) (i) An industry representative sample of liquor may not exceed one liter.
             2838          (ii) Notwithstanding Subsection (8)(b)(i), an industry representative sample of the
             2839      following may not exceed 1.5 liters unless that exact product is only commercially packaged in
             2840      a larger size, not to exceed 5 liters:
             2841          (A) wine;
             2842          (B) heavy beer; or
             2843          (C) a flavored malt beverage.
             2844          (c) An industry representative sample may only be of a product not presently listed on
             2845      the department's sales list.
             2846          (d) (i) An industry representative sample shall be shipped:
             2847          (A) prepaid by the manufacturer, supplier, or importer;
             2848          (B) by common carrier and not via United States mail; and


             2849          (C) directly to the department's central administrative warehouse office.
             2850          (ii) An industry representative sample may not be shipped to any other location within
             2851      the state.
             2852          (e) An industry representative sample shall be accompanied by a letter from the
             2853      manufacturer, supplier, or importer:
             2854          (i) clearly identifying the product as an "industry representative sample"; and
             2855          (ii) clearly stating:
             2856          (A) the FOB case price of the product; and
             2857          (B) the name of the local industry representative for whom it is intended.
             2858          (f) The department shall assess a reasonable handling, labeling, and storage fee for
             2859      each industry representative sample received.
             2860          (g) The department shall affix to a [package] container a label clearly identifying the
             2861      product as an "industry representative sample."
             2862          (h) The department shall:
             2863          (i) account for and record each industry representative sample received;
             2864          (ii) account for the industry representative sample's disposition; and
             2865          (iii) maintain a record of the industry representative sample and its disposition for a
             2866      two-year period.
             2867          (i) An industry representative sample may not leave the premises of the department's
             2868      central administrative warehouse office.
             2869          (j) A local industry representative licensee's and a local industry representative
             2870      licensee's staff may, at regularly scheduled days and times established by the department, taste
             2871      and analyze one or more industry representative samples on the premises of the department's
             2872      central administrative warehouse office.
             2873          (k) The department shall destroy the unused contents of an opened product remaining
             2874      after a product is sampled under controlled and audited conditions established by the
             2875      department.
             2876          (l) An industry representative sample that is not tasted within 30 days of receipt by the
             2877      department shall be disposed of at the discretion of the department in one of the following
             2878      ways:
             2879          (i) the contents destroyed under controlled and audited conditions established by the


             2880      department; or
             2881          (ii) added to the inventory of the department for sale to the public.
             2882          Section 44. Effective date.
             2883          This bill takes effect on July 1, 2011.




Legislative Review Note
    as of 10-4-10 4:03 PM


Office of Legislative Research and General Counsel


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