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S.B. 4001

             1     

ALCOHOLIC BEVERAGE CONTROL ACT AMENDMENTS

             2     
2012 FOURTH SPECIAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: Gage Froerer

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to the Alcoholic Beverage Control Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that four alcohol-related law enforcement officers have as a primary focus
             13      enforcement related to restaurants;
             14          .    increases the number of available licenses for full-service restaurant and
             15      limited-service restaurant licenses;
             16          .    increases certain retail license fees;
             17          .    extends the effective dates of provisions related to the transfer of retail licenses to
             18      July 1, 2013; and
             19          .    makes technical changes.
             20      Money Appropriated in this Bill:
             21          This bill appropriates in fiscal year 2013:
             22          .    to the Department of Public Safety - Programs and Operations - Highway Patrol -
             23      Special Enforcement Program as an ongoing appropriation:
             24              .    from the General Fund, $280,000.
             25      Other Special Clauses:
             26          This bill provides an effective date.
             27          This bill provides revisor instructions.


             28      Utah Code Sections Affected:
             29      AMENDS:
             30          32B-2-305 (Effective 07/01/12), as last amended by Laws of Utah 2012, Chapter 357
             31          32B-6-203, as last amended by Laws of Utah 2011, Chapter 334
             32          32B-6-204, as last amended by Laws of Utah 2011, Chapter 334
             33          32B-6-303, as last amended by Laws of Utah 2011, Chapter 334
             34          32B-6-304, as last amended by Laws of Utah 2011, Chapter 334
             35          32B-6-904, as enacted by Laws of Utah 2011, Chapter 334
             36      Uncodified Material Affected:
             37      AMENDS UNCODIFIED MATERIAL:
             38      Uncodified Section 110, Laws of Utah 2011, Chapter 334
             39          Changes to this uncodified section affect Section 32B-5-309 and Title 32B, Chapter 8a,
             40      Transfer of Retail License Act.
             41      Uncodified Section 24, Laws of Utah 2012, Chapter 365
             42          Changes to this uncodified section affect Sections 32B-8a-302 and 32B-8a-303.
             43     
             44      Be it enacted by the Legislature of the state of Utah:
             45          Section 1. Section 32B-2-305 (Effective 07/01/12) is amended to read:
             46           32B-2-305 (Effective 07/01/12). Alcoholic Beverage Control Act Enforcement
             47      Fund.
             48          (1) As used in this section:
             49          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201 .
             50          (b) "Enforcement ratio" is as defined in Section 32B-1-201 .
             51          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
             52      this section.
             53          (2) There is created a restricted special revenue fund known as the "Alcoholic
             54      Beverage Control Act Enforcement Fund."
             55          (3) (a) The fund consists of:
             56          (i) deposits made under Subsection (4); and
             57          (ii) interest earned on the fund.
             58          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.


             59          (4) After the deposit made under Section 32B-2-304 for the school lunch program, the
             60      department shall deposit 1% of the total gross revenue from the sale of liquor with the state
             61      treasurer to be credited to the fund to be used by the Department of Public Safety as provided
             62      in Subsection (5).
             63          (5) (a) The Department of Public Safety shall expend money from the fund to
             64      supplement appropriations by the Legislature so that the Department of Public Safety maintains
             65      a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
             66      2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
             67      in Section 32B-1-201 .
             68          (b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as
             69      a primary focus the enforcement of this title in relationship to restaurants.
             70          Section 2. Section 32B-6-203 is amended to read:
             71           32B-6-203. Commission's power to issue full-service restaurant license.
             72          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             73      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             74      full-service restaurant license from the commission in accordance with this part.
             75          (2) The commission may issue a full-service restaurant license to establish full-service
             76      restaurant licensed premises at places and in numbers the commission considers proper for the
             77      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             78      operated as a full-service restaurant.
             79          (3) Subject to Section 32B-1-201 :
             80          (a) The commission may not issue a total number of full-service restaurant licenses that
             81      at any time exceeds the number determined by dividing the population of the state by [4,925]
             82      4,534.
             83          (b) The commission may issue a seasonal full-service restaurant license in accordance
             84      with Section 32B-5-206 .
             85          (c) (i) If the location, design, and construction of a hotel may require more than one
             86      full-service restaurant sales location within the hotel to serve the public convenience, the
             87      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             88      many as three full-service restaurant locations within the hotel under one full-service restaurant
             89      license if:


             90          (A) the hotel has a minimum of 150 guest rooms; and
             91          (B) the locations under the full-service restaurant license are:
             92          (I) within the same hotel; and
             93          (II) on premises that are managed or operated, and owned or leased, by the full-service
             94      restaurant licensee.
             95          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             96      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             97          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             98      full-service restaurant license for premises that do not meet the proximity requirements of
             99      Section 32B-1-202 .
             100          (b) With respect to the premises of a full-service restaurant license issued by the
             101      commission that undergoes a change of ownership, the commission shall waive or vary the
             102      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             103      full-service restaurant license to the new owner of the premises if:
             104          (i) when a full-service restaurant license was issued to a previous owner, the premises
             105      met the proximity requirements of Subsection 32B-1-202 (2);
             106          (ii) the premises has had a full-service restaurant license at all times since the
             107      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             108      and
             109          (iii) the community location was located within the proximity requirements of
             110      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             111      Subsection (4)(b)(i) was issued.
             112          Section 3. Section 32B-6-204 is amended to read:
             113           32B-6-204. Specific licensing requirements for full-service restaurant license.
             114          (1) To obtain a full-service restaurant license a person shall comply with Chapter 5,
             115      Part 2, Retail Licensing Process.
             116          (2) (a) A full-service restaurant license expires on October 31 of each year.
             117          (b) To renew a person's full-service restaurant license, a person shall comply with the
             118      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             119      September 30.
             120          (3) (a) The nonrefundable application fee for a full-service restaurant license is [$300]


             121      $330.
             122          (b) The initial license fee for a full-service restaurant license is [$2,000] $2,200.
             123          (c) The renewal fee for a full-service restaurant license is in the following amount:
             124      Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
             125      under $5,000 [$850] $935
             126      equals or exceeds $5,000 but less than $10,000 [$1,050] $1,155
             127      equals or exceeds $10,000 but less than $25,000 [$1,500] $1,650
             128      equals or exceeds $25,000 [$1,750] $1,925
             129          (4) The bond amount required for a full-service restaurant license is the penal sum of
             130      $10,000.
             131          Section 4. Section 32B-6-303 is amended to read:
             132           32B-6-303. Commission's power to issue limited-service restaurant license.
             133          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             134      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
             135      obtain a limited-service restaurant license from the commission in accordance with this part.
             136          (2) (a) The commission may issue a limited-service restaurant license to establish
             137      limited-service restaurant licensed premises at places and in numbers the commission considers
             138      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             139      beer on premises operated as a limited-service restaurant.
             140          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             141      following on the licensed premises of a limited-service restaurant licensee:
             142          (i) spirituous liquor; or
             143          (ii) a flavored malt beverage.
             144          (3) Subject to Section 32B-1-201 :
             145          (a) The commission may not issue a total number of limited-service restaurant licenses
             146      that at any time exceeds the number determined by dividing the population of the state by
             147      [8,373] 7,493.
             148          (b) The commission may issue a seasonal limited-service restaurant license in
             149      accordance with Section 32B-5-206 .
             150          (c) (i) If the location, design, and construction of a hotel may require more than one


             151      limited-service restaurant sales location within the hotel to serve the public convenience, the
             152      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             153      limited-service restaurant locations within the hotel under one limited-service restaurant license
             154      if:
             155          (A) the hotel has a minimum of 150 guest rooms; and
             156          (B) the locations under the limited-service restaurant license are:
             157          (I) within the same hotel; and
             158          (II) on premises that are managed or operated, and owned or leased, by the
             159      limited-service restaurant licensee.
             160          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             161      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             162      furnished.
             163          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             164      limited-service restaurant license for premises that do not meet the proximity requirements of
             165      Section 32B-1-202 .
             166          (b) With respect to the premises of a limited-service restaurant license issued by the
             167      commission that undergoes a change of ownership, the commission shall waive or vary the
             168      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             169      limited-service restaurant license to the new owner of the premises if:
             170          (i) when a limited-service restaurant license was issued to a previous owner, the
             171      premises met the proximity requirements of Subsection 32B-1-202 (2);
             172          (ii) the premises has had a limited-service restaurant license at all times since the
             173      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             174      variance; and
             175          (iii) the community location was located within the proximity requirements of
             176      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             177      described in Subsection (4)(b)(i) was issued.
             178          Section 5. Section 32B-6-304 is amended to read:
             179           32B-6-304. Specific licensing requirements for limited-service restaurant license.
             180          (1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
             181      Part 2, Retail Licensing Process.


             182          (2) (a) A limited-service restaurant license expires on October 31 of each year.
             183          (b) To renew a person's limited-service restaurant license, a person shall comply with
             184      the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             185      September 30.
             186          (3) (a) The nonrefundable application fee for a limited-service restaurant license is
             187      [$300] $330.
             188          (b) The initial license fee for a limited-service restaurant license is [$750] $825.
             189          (c) The renewal fee for a limited-service restaurant license is [$550] $605.
             190          (4) The bond amount required for a limited-service restaurant license is the penal sum
             191      of $5,000.
             192          Section 6. Section 32B-6-904 is amended to read:
             193           32B-6-904. Specific licensing requirements for beer-only restaurant license.
             194          (1) To obtain a beer-only restaurant license a person shall comply with Chapter 5, Part
             195      2, Retail Licensing Process.
             196          (2) (a) A beer-only restaurant license expires the last day of February of each year.
             197          (b) To renew a person's beer-only restaurant license, a person shall comply with the
             198      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
             199      31.
             200          (3) (a) The nonrefundable application fee for a beer-only restaurant license is [$300]
             201      $330.
             202          (b) The initial license fee for a beer-only restaurant license is [$750] $825.
             203          (c) The renewal fee for a beer-only restaurant license is [$550] $605.
             204          (4) The bond amount required for a beer-only restaurant license is the penal sum of
             205      $5,000.
             206          Section 7. Uncodified Section 110, Laws of Utah 2011, Chapter 334 is amended to
             207      read:
             208          Section 110. Effective date.
             209          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2011.
             210          (2) (a) The repeal of Subsection 32B-6-603(4) (Effective 07/01/11) in this bill takes
             211      effect on November 1, 2011.
             212          (b) Title 32B, Chapter 6, Part 8, Reception Center License, enacted by this bill takes


             213      effect on November 1, 2011.
             214          (c) Title 32B, Chapter 6, Part 9, Beer-only Restaurant License, enacted by this bill
             215      takes effect on March 1, 2012.
             216          (d) The following take effect on July 1, [2012] 2013:
             217          (i) Section 32B-5-309 (Effective 07/01/11) as amended by this bill; and
             218          (ii) Title 32B, Chapter 8a, Transfer of Retail License Act, enacted by this bill.
             219          Section 8. Uncodified Section 24, Laws of Utah 2012, Chapter 365 is amended to
             220      read:
             221          Section 24. Effective date.
             222          This bill takes effect on July 1, 2012[.], except that the amendments made to Section
             223      32B-8a-302 (Effective 07/01/12), and Section 32B-8a-303 (Effective 07/01/12), in this bill take
             224      effect on July 1, 2013.
             225          Section 9. Appropriation.
             226          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
             227      following sums of money are appropriated from resources not otherwise appropriated, or
             228      reduced from amounts previously appropriated, out of the funds or fund accounts indicated for
             229      the fiscal year beginning July 1, 2012 and ending June 30, 2013. These are additions to
             230      amounts previously appropriated for fiscal year 2013.
             231          To the Department of Public Safety - Programs and Operations - Highway Patrol
             232              From General Fund                            $280,000
             233              Schedule of Programs:
             234                  Special Enforcement            $280,000
             235          Section 10. Effective date.
             236          If approved by two-thirds of all the members elected to each house, this bill takes effect
             237      upon approval by the governor, or the day following the constitutional time limit of Utah
             238      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             239      the date of veto override, except that the amendments to Section 32B-2-305 (Effective
             240      07/01/12) and Section 9, Appropriation, take effect on July 1, 2012.
             241          Section 11. Revisor instructions.
             242          The Legislature intends that the Office of Legislative Research and General Counsel, in
             243      preparing the Utah Code database for publication, change the effective date in Section


             244      32B-5-309 and Title 32B, Chapter 8a, Transfer of Retail License Act, from July 1, 2012 to July
             245      1, 2013.




Legislative Review Note
    as of 6-18-12 4:29 PM


Office of Legislative Research and General Counsel


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