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Third Substitute H.B. 228

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Mar 12, 2013 at 4:22 PM by kcallred. -->

Senator John L. Valentine proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE CONTROL ACT AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ryan D. Wilcox

             5     
Senate Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act to address the regulation of
             10      alcoholic products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definitions;
             14          .    addresses new master licenses under the law enforcement quota;
             15          .    addresses proximity to community locations;
             16          .    modifies how wine is treated in calculating ratio of gross receipts of food to
             17      alcoholic product;
             18          .    addresses the powers and duties of the commission;
             19          .    requires money be appropriated by the Legislature or provided by statute for the
             20      department to draw from the Liquor Control Fund with limited exceptions;
             21          .    clarifies who makes warrants on the funds;
             22          .    provides for Division of Finance to make year-end closing entries;
             23          .    creates the Alcoholic Beverage Control Act Legal Fund and deposits certain
             24      penalties into the fund;
             25          .    amends operational requirements for package agencies;


             26          .    imposes minimum mandatory penalties related to minors;
             27          .    modifies where certain fines are deposited;
             28          .    expands retail licenses eligible for conditional retail licenses and allows for a
             29      three-month extension of the period of a conditional retail license;
             30          .    addresses multiple retail licenses at the same building;
             31          .    permits local authorities to impose more restrictive hour requirements for retail
             32      licensees;
             33          .    permits certain alcoholic products to be served in several containers;
             34          .    creates a master full-service restaurant license;
             35          .    creates a master limited-service restaurant license;
             36          .    imposes a fee for applying to the commission for a S. [ change ] certain changes .S in
             36a      location;
             37          .    addresses private events at retail licensee premises;
             38          .    addresses commission's authority to issue restaurant licenses;
             39          .    modifies operational requirements for restaurant licensees;
             40          .    extends the effective date for the Transfer of Retail License Act; and
             41          .    makes technical and conforming changes.
             42      Money Appropriated in this Bill:
             43          This bill appropriates in fiscal year 2014:
             44          .    to Attorney General - Administration as an ongoing appropriation:
             45              .    from the Alcoholic Beverage Control Act Legal Fund, $130,000 to pay for costs
             46      associated with the enforcement of Title 32B, Alcoholic Beverage Control Act.
             47      Other Special Clauses:
             48          This bill provides effective dates.
             49          This bill provides revisor instructions.
             50      Utah Code Sections Affected:
             51      AMENDS:
             52          32B-1-102, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             53          32B-1-201, as last amended by Laws of Utah 2011, Chapter 334
             54          32B-1-202, as enacted by Laws of Utah 2010, Chapter 276
             55          32B-1-207, as enacted by Laws of Utah 2011, Chapter 334
             56          32B-2-202, as last amended by Laws of Utah 2012, Chapter 365


             57          32B-2-301, as last amended by Laws of Utah 2012, Chapter 357
             58          32B-2-305, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
             59          32B-2-605, as last amended by Laws of Utah 2012, Chapter 365
             60          32B-3-205, as enacted by Laws of Utah 2010, Chapter 276
             61          32B-5-205, as enacted by Laws of Utah 2010, Chapter 276
             62          32B-5-301, as last amended by Laws of Utah 2011, Chapter 334
             63          32B-5-304, as last amended by Laws of Utah 2011, Chapters 307 and 334
             64          32B-5-309 (Superseded 07/01/13), as enacted by Laws of Utah 2010, Chapter 276
             65          32B-6-203, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
             66          32B-6-205, as last amended by Laws of Utah 2011, Chapters 307 and 334
             67          32B-6-303, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
             68          32B-6-305, as last amended by Laws of Utah 2011, Chapters 307 and 334
             69          32B-6-903, as enacted by Laws of Utah 2011, Chapter 334
             70          32B-6-905, as enacted by Laws of Utah 2011, Chapter 334
             71          32B-8a-201 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             72      S. [     32B-9-204, as last amended by Laws of Utah 2012, Chapter 365 ] .S
             73          32B-10-206, as enacted by Laws of Utah 2010, Chapter 276
             74          32B-11-208, as enacted by Laws of Utah 2010, Chapter 276
             75          32B-12-301, as enacted by Laws of Utah 2010, Chapter 276
             76      ENACTS:
             77          32B-2-307, Utah Code Annotated 1953
             78          32B-5-207, Utah Code Annotated 1953
             79          32B-5-311, Utah Code Annotated 1953
             80          32B-6-206, Utah Code Annotated 1953
             81          32B-6-306, Utah Code Annotated 1953
             82      Uncodified Material Affected:
             83      AMENDS UNCODIFIED MATERIAL:
             84           Uncodified Section 7, Laws of Utah 2012, Fourth Special Session, Chapter 1
             85          This uncodified section affects Sections 32B-5-309 (Effective 07/01/13) and the
             86      sections in Title 32B, Chapter 8a, Transfer of Retail License Act.
             87           Uncodified Section 8, Laws of Utah 2012, Fourth Special Session, Chapter 1


             88      Utah Code Sections Affected by Revisor Instructions:
             89          32B-5-309 (Superseded 07/01/13), as enacted by Laws of Utah 2010, Chapter 276
             90          32B-5-309 (Effective 07/01/13), as last amended by Laws of Utah 2011, Chapter 334
             91          32B-8a-101 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             92          32B-8a-102 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             93          32B-8a-201 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             94          32B-8a-202 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             95          32B-8a-203 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             96          32B-8a-301 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             97          32B-8a-302 (Effective 07/01/13), as last amended by Laws of Utah 2012, Chapter 365
             98          32B-8a-303 (Effective 07/01/13), as last amended by Laws of Utah 2012, Chapter 365
             99          32B-8a-401 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             100          32B-8a-402 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             101          32B-8a-403 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             102          32B-8a-404 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             103          32B-8a-501 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             104          32B-8a-502 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             105     
             106      Be it enacted by the Legislature of the state of Utah:
             107          Section 1. Section 32B-1-102 is amended to read:
             108           32B-1-102. Definitions.
             109          As used in this title:
             110          (1) "Airport lounge" means a business location:
             111          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             112          (b) that is located at an international airport with a United States Customs office on the
             113      premises of the international airport.
             114          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             115      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             116          (3) "Alcoholic beverage" means the following:
             117          (a) beer; or
             118          (b) liquor.


             119          (4) (a) "Alcoholic product" means a product that:
             120          (i) contains at least .5% of alcohol by volume; and
             121          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             122      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             123      in an amount equal to or greater than .5% of alcohol by volume.
             124          (b) "Alcoholic product" includes an alcoholic beverage.
             125          (c) "Alcoholic product" does not include any of the following common items that
             126      otherwise come within the definition of an alcoholic product:
             127          (i) except as provided in Subsection (4)(d), an extract;
             128          (ii) vinegar;
             129          (iii) cider;
             130          (iv) essence;
             131          (v) tincture;
             132          (vi) food preparation; or
             133          (vii) an over-the-counter medicine.
             134          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             135      when it is used as a flavoring in the manufacturing of an alcoholic product.
             136          (5) "Alcohol training and education seminar" means a seminar that is:
             137          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             138          (b) described in Section 62A-15-401 .
             139          (6) "Banquet" means an event:
             140          (a) that is held at one or more designated locations approved by the commission in or
             141      on the premises of a:
             142          (i) hotel;
             143          (ii) resort facility;
             144          (iii) sports center; or
             145          (iv) convention center;
             146          (b) for which there is a contract:
             147          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             148      and
             149          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to


             150      provide an alcoholic product at the event; and
             151          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             152          (7) (a) "Bar" means a surface or structure:
             153          (i) at which an alcoholic product is:
             154          (A) stored; or
             155          (B) dispensed; or
             156          (ii) from which an alcoholic product is served.
             157          (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
             158      place of the surface or structure an alcoholic product is:
             159          (i) stored; or
             160          (ii) dispensed.
             161          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             162          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             163      volume or 3.2% by weight; and
             164          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             165          (b) "Beer" may or may not contain hops or other vegetable products.
             166          (c) "Beer" includes a product that:
             167          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             168          (ii) is referred to as:
             169          (A) beer;
             170          (B) ale;
             171          (C) porter;
             172          (D) stout;
             173          (E) lager; or
             174          (F) a malt or malted beverage.
             175          (d) "Beer" does not include a flavored malt beverage.
             176          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             177      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             178          (10) "Beer retailer" means a business:
             179          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             180      whether for consumption on or off the business premises; and


             181          (b) to whom a license is issued:
             182          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             183      Beer Retailer Local Authority; or
             184          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             185      and Chapter 6, Part 7, On-premise Beer Retailer License.
             186          (11) "Beer wholesaling license" means a license:
             187          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             188          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             189      retail licensees or off-premise beer retailers.
             190          (12) "Billboard" means a public display used to advertise, including:
             191          (a) a light device;
             192          (b) a painting;
             193          (c) a drawing;
             194          (d) a poster;
             195          (e) a sign;
             196          (f) a signboard; or
             197          (g) a scoreboard.
             198          (13) "Brewer" means a person engaged in manufacturing:
             199          (a) beer;
             200          (b) heavy beer; or
             201          (c) a flavored malt beverage.
             202          (14) "Brewery manufacturing license" means a license issued in accordance with
             203      Chapter 11, Part 5, Brewery Manufacturing License.
             204          (15) "Certificate of approval" means a certificate of approval obtained from the
             205      department under Section 32B-11-201 .
             206          (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             207      a bus company to a group of persons pursuant to a common purpose:
             208          (a) under a single contract;
             209          (b) at a fixed charge in accordance with the bus company's tariff; and
             210          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             211      motor vehicle, and a driver to travel together to one or more specified destinations.


             212          (17) "Church" means a building:
             213          (a) set apart for worship;
             214          (b) in which religious services are held;
             215          (c) with which clergy is associated; and
             216          (d) that is tax exempt under the laws of this state.
             217          (18) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
             218      License Act, and Chapter 6, Part 4, Club License.
             219          (b) "Club license" includes:
             220          (i) a dining club license;
             221          (ii) an equity club license;
             222          (iii) a fraternal club license; or
             223          (iv) a social club license.
             224          (19) "Commission" means the Alcoholic Beverage Control Commission created in
             225      Section 32B-2-201 .
             226          (20) "Commissioner" means a member of the commission.
             227          (21) "Community location" means:
             228          (a) a public or private school;
             229          (b) a church;
             230          (c) a public library;
             231          (d) a public playground; or
             232          (e) a public park.
             233          (22) "Community location governing authority" means:
             234          (a) the governing body of the community location; or
             235          (b) if the commission does not know who is the governing body of a community
             236      location, a person who appears to the commission to have been given on behalf of the
             237      community location the authority to prohibit an activity at the community location.
             238          (23) "Container" means a receptacle that contains an alcoholic product, including:
             239          (a) a bottle;
             240          (b) a vessel; or
             241          (c) a similar item.
             242          (24) "Convention center" means a facility that is:


             243          (a) in total at least 30,000 square feet; and
             244          (b) otherwise defined as a "convention center" by the commission by rule.
             245          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             246      dining area of a licensed premises where seating is provided to a patron for service of food.
             247          (b) "Counter" does not include a surface or structure if on or at any point of the surface
             248      or structure an alcoholic product is:
             249          (i) stored; or
             250          (ii) dispensed.
             251          (26) "Department" means the Department of Alcoholic Beverage Control created in
             252      Section 32B-2-203 .
             253          (27) "Department compliance officer" means an individual who is:
             254          (a) an auditor or inspector; and
             255          (b) employed by the department.
             256          (28) "Department sample" means liquor that is placed in the possession of the
             257      department for testing, analysis, and sampling.
             258          (29) "Dining club license" means a license issued in accordance with Chapter 5, Retail
             259      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             260      dining club license.
             261          (30) "Director," unless the context requires otherwise, means the director of the
             262      department.
             263          (31) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
             264      title:
             265          (a) against a person subject to administrative action; and
             266          (b) that is brought on the basis of a violation of this title.
             267          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             268          (i) drawing of an alcoholic product:
             269          (A) from an area where it is stored; or
             270          (B) as provided in Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii),
             271      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             272          (ii) using the alcoholic product described in Subsection (32)(a)(i) on the premises of
             273      the licensed premises to mix or prepare an alcoholic product to be furnished to a patron of the


             274      retail licensee.
             275          (b) The definition of "dispense" in this Subsection (32) applies only to:
             276          (i) a full-service restaurant license;
             277          (ii) a limited-service restaurant license;
             278          (iii) a reception center license; and
             279          (iv) a beer-only restaurant license.
             280          (33) "Distillery manufacturing license" means a license issued in accordance with
             281      Chapter 11, Part 4, Distillery Manufacturing License.
             282          (34) "Distressed merchandise" means an alcoholic product in the possession of the
             283      department that is saleable, but for some reason is unappealing to the public.
             284          (35) "Educational facility" includes:
             285          (a) a nursery school;
             286          (b) an infant day care center; and
             287          (c) a trade and technical school.
             288          (36) "Equity club license" means a license issued in accordance with Chapter 5, Retail
             289      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as an
             290      equity club license.
             291          (37) "Event permit" means:
             292          (a) a single event permit; or
             293          (b) a temporary beer event permit.
             294          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             295      considered in determining the total number of a retail license that the commission may issue at
             296      any time.
             297          (39) (a) "Flavored malt beverage" means a beverage:
             298          (i) that contains at least .5% alcohol by volume;
             299          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             300      generally recognized as a traditional process in the production of a beer as described in 27
             301      C.F.R. Sec. 25.55;
             302          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             303      extract; and
             304          (iv) (A) for which the producer is required to file a formula for approval with the


             305      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             306          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             307          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             308          (40) "Fraternal club license" means a license issued in accordance with Chapter 5,
             309      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             310      as a fraternal club license.
             311          (41) "Full-service restaurant license" means a license issued in accordance with
             312      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             313          (42) (a) "Furnish" means by any means to provide with, supply, or give an individual
             314      an alcoholic product, by sale or otherwise.
             315          (b) "Furnish" includes to:
             316          (i) serve;
             317          (ii) deliver; or
             318          (iii) otherwise make available.
             319          (43) "Guest" means an individual who meets the requirements of Subsection
             320      32B-6-407 (9).
             321          (44) "Health care practitioner" means:
             322          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             323          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             324          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             325          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
             326      Act;
             327          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             328      Nurse Practice Act;
             329          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             330      Practice Act;
             331          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             332      Therapy Practice Act;
             333          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             334          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             335      Professional Practice Act;


             336          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             337          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             338      Practice Act;
             339          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             340      Hygienist Practice Act; and
             341          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             342          (45) (a) "Heavy beer" means a product that:
             343          (i) contains more than 4% alcohol by volume; and
             344          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             345          (b) "Heavy beer" is considered liquor for the purposes of this title.
             346          (46) "Hotel" is as defined by the commission by rule.
             347          (47) "Identification card" means an identification card issued under Title 53, Chapter 3,
             348      Part 8, Identification Card Act.
             349          (48) "Industry representative" means an individual who is compensated by salary,
             350      commission, or other means for representing and selling an alcoholic product of a
             351      manufacturer, supplier, or importer of liquor.
             352          (49) "Industry representative sample" means liquor that is placed in the possession of
             353      the department for testing, analysis, and sampling by a local industry representative on the
             354      premises of the department to educate the local industry representative of the quality and
             355      characteristics of the product.
             356          (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
             357      of an alcoholic product is prohibited by:
             358          (a) law; or
             359          (b) court order.
             360          (51) "Intoxicated" means that a person:
             361          (a) is significantly impaired as to the person's mental or physical functions as a result of
             362      the use of:
             363          (i) an alcoholic product;
             364          (ii) a controlled substance;
             365          (iii) a substance having the property of releasing toxic vapors; or
             366          (iv) a combination of Subsections (51)(a)(i) through (iii); and


             367          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             368      signs produced by the over consumption of an alcoholic product.
             369          (52) "Investigator" means an individual who is:
             370          (a) a department compliance officer; or
             371          (b) a nondepartment enforcement officer.
             372          (53) "Invitee" is as defined in Section 32B-8-102 .
             373          (54) "License" means:
             374          (a) a retail license;
             375          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             376      Licenses Act;
             377          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             378      or
             379          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             380          (55) "Licensee" means a person who holds a license.
             381          (56) "Limited-service restaurant license" means a license issued in accordance with
             382      Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             383          (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
             384      than a bus or taxicab:
             385          (a) in which the driver and a passenger are separated by a partition, glass, or other
             386      barrier;
             387          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             388      accordance with the business entity's tariff; and
             389          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             390      to travel to one or more specified destinations.
             391          (58) (a) (i) "Liquor" means a liquid that:
             392          (A) is:
             393          (I) alcohol;
             394          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             395          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             396          (IV) other drink or drinkable liquid; and
             397          (B) (I) contains at least .5% alcohol by volume; and


             398          (II) is suitable to use for beverage purposes.
             399          (ii) "Liquor" includes:
             400          (A) heavy beer;
             401          (B) wine; and
             402          (C) a flavored malt beverage.
             403          (b) "Liquor" does not include beer.
             404          (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301 .
             405          (60) "Liquor warehousing license" means a license that is issued:
             406          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             407          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             408      storage, sale, or distribution of liquor regardless of amount.
             409          (61) "Local authority" means:
             410          (a) for premises that are located in an unincorporated area of a county, the governing
             411      body of a county; or
             412          (b) for premises that are located in an incorporated city or a town, the governing body
             413      of the city or town.
             414          (62) "Lounge or bar area" is as defined by rule made by the commission.
             415          (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
             416      otherwise make an alcoholic product for personal use or for sale or distribution to others.
             417          (64) "Member" means an individual who, after paying regular dues, has full privileges
             418      in an equity club licensee or fraternal club licensee.
             419          (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
             420      or homeport facility for a ship:
             421          (i) (A) under the control of the United States Department of Defense; or
             422          (B) of the National Guard;
             423          (ii) that is located within the state; and
             424          (iii) including a leased facility.
             425          (b) "Military installation" does not include a facility used primarily for:
             426          (i) civil works;
             427          (ii) a rivers and harbors project; or
             428          (iii) a flood control project.


             429          (66) "Minor" means an individual under the age of 21 years.
             430          (67) "Nondepartment enforcement agency" means an agency that:
             431          (a) (i) is a state agency other than the department; or
             432          (ii) is an agency of a county, city, or town; and
             433          (b) has a responsibility to enforce one or more provisions of this title.
             434          (68) "Nondepartment enforcement officer" means an individual who is:
             435          (a) a peace officer, examiner, or investigator; and
             436          (b) employed by a nondepartment enforcement agency.
             437          (69) (a) "Off-premise beer retailer" means a beer retailer who is:
             438          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             439      Authority; and
             440          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             441      premises.
             442          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             443          (70) "On-premise banquet license" means a license issued in accordance with Chapter
             444      5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             445          (71) "On-premise beer retailer" means a beer retailer who is:
             446          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             447      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             448      Retailer License; and
             449          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             450      premises:
             451          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
             452      premises; and
             453          (ii) on and after March 1, 2012, operating:
             454          (A) as a tavern; or
             455          (B) in a manner that meets the requirements of Subsection 32B-6-703 (2)(e)(i).
             456          (72) "Opaque" means impenetrable to sight.
             457          (73) "Package agency" means a retail liquor location operated:
             458          (a) under an agreement with the department; and
             459          (b) by a person:


             460          (i) other than the state; and
             461          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             462      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             463          (74) "Package agent" means a person who holds a package agency.
             464          (75) "Patron" means an individual to whom food, beverages, or services are sold,
             465      offered for sale, or furnished, or who consumes an alcoholic product including:
             466          (a) a customer;
             467          (b) a member;
             468          (c) a guest;
             469          (d) an attendee of a banquet or event;
             470          (e) an individual who receives room service;
             471          (f) a resident of a resort;
             472          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             473      or
             474          (h) an invitee.
             475          (76) "Permittee" means a person issued a permit under:
             476          (a) Chapter 9, Event Permit Act; or
             477          (b) Chapter 10, Special Use Permit Act.
             478          (77) "Person subject to administrative action" means:
             479          (a) a licensee;
             480          (b) a permittee;
             481          (c) a manufacturer;
             482          (d) a supplier;
             483          (e) an importer;
             484          (f) one of the following holding a certificate of approval:
             485          (i) an out-of-state brewer;
             486          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             487          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             488          (g) staff of:
             489          (i) a person listed in Subsections (77)(a) through (f); or
             490          (ii) a package agent.


             491          (78) "Premises" means a building, enclosure, or room used in connection with the
             492      storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
             493      unless otherwise defined in this title or rules made by the commission.
             494          (79) "Prescription" means an order issued by a health care practitioner when:
             495          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             496      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             497          (b) the order is made in the course of that health care practitioner's professional
             498      practice; and
             499          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             500          (80) (a) "Private event" means a specific social, business, or recreational event:
             501          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             502      group; and
             503          (ii) that is limited in attendance to people who are specifically designated and their
             504      guests.
             505          (b) "Private event" does not include an event to which the general public is invited,
             506      whether for an admission fee or not.
             507          (81) (a) "Proof of age" means:
             508          (i) an identification card;
             509          (ii) an identification that:
             510          (A) is substantially similar to an identification card;
             511          (B) is issued in accordance with the laws of a state other than Utah in which the
             512      identification is issued;
             513          (C) includes date of birth; and
             514          (D) has a picture affixed;
             515          (iii) a valid driver license certificate that:
             516          (A) includes date of birth;
             517          (B) has a picture affixed; and
             518          (C) is issued:
             519          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             520          (II) in accordance with the laws of the state in which it is issued;
             521          (iv) a military identification card that:


             522          (A) includes date of birth; and
             523          (B) has a picture affixed; or
             524          (v) a valid passport.
             525          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             526      Section 53-3-207 .
             527          (82) (a) "Public building" means a building or permanent structure that is:
             528          (i) owned or leased by:
             529          (A) the state; or
             530          (B) a local government entity; and
             531          (ii) used for:
             532          (A) public education;
             533          (B) transacting public business; or
             534          (C) regularly conducting government activities.
             535          (b) "Public building" does not include a building owned by the state or a local
             536      government entity when the building is used by a person, in whole or in part, for a proprietary
             537      function.
             538          (83) "Public conveyance" means a conveyance to which the public or a portion of the
             539      public has access to and a right to use for transportation, including an airline, railroad, bus,
             540      boat, or other public conveyance.
             541          (84) "Reception center" means a business that:
             542          (a) operates facilities that are at least 5,000 square feet; and
             543          (b) has as its primary purpose the leasing of the facilities described in Subsection
             544      (84)(a) to a third party for the third party's event.
             545          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             546      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             547          (86) (a) "Record" means information that is:
             548          (i) inscribed on a tangible medium; or
             549          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             550          (b) "Record" includes:
             551          (i) a book;
             552          (ii) a book of account;


             553          (iii) a paper;
             554          (iv) a contract;
             555          (v) an agreement;
             556          (vi) a document; or
             557          (vii) a recording in any medium.
             558          (87) "Residence" means a person's principal place of abode within Utah.
             559          (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             560          (89) "Resort" is as defined in Section 32B-8-102 .
             561          (90) "Resort facility" is as defined by the commission by rule.
             562          (91) "Resort license" means a license issued in accordance with Chapter 5, Retail
             563      License Act, and Chapter 8, Resort License Act.
             564          (92) "Restaurant" means a business location:
             565          (a) at which a variety of foods are prepared;
             566          (b) at which complete meals are served to the general public; and
             567          (c) that is engaged primarily in serving meals to the general public.
             568          (93) "Retail license" means one of the following licenses issued under this title:
             569          (a) a full-service restaurant license;
             570          (b) a master full-service restaurant license;
             571          [(b)] (c) a limited-service restaurant license;
             572          (d) a master limited-service restaurant license;
             573          [(c)] (e) a club license;
             574          [(d)] (f) an airport lounge license;
             575          [(e)] (g) an on-premise banquet license;
             576          [(f)] (h) an on-premise beer license;
             577          [(g)] (i) a reception center license; [or]
             578          [(h)] (j) a beer-only restaurant license[.]; or
             579          (k) a resort license.
             580          (94) "Room service" means furnishing an alcoholic product to a person in a guest room
             581      of a:
             582          (a) hotel; or
             583          (b) resort facility.


             584          (95) "Serve" means to place an alcoholic product before an individual.
             585          (96) (a) "School" means a building used primarily for the general education of minors.
             586          (b) "School" does not include an educational facility.
             587          (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
             588      consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
             589      delivered for value, or by a means or under a pretext is promised or obtained, whether done by
             590      a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
             591      made by the commission.
             592          (98) "Sexually oriented entertainer" means a person who while in a state of seminudity
             593      appears at or performs:
             594          (a) for the entertainment of one or more patrons;
             595          (b) on the premises of:
             596          (i) a social club licensee; or
             597          (ii) a tavern;
             598          (c) on behalf of or at the request of the licensee described in Subsection (98)(b);
             599          (d) on a contractual or voluntary basis; and
             600          (e) whether or not the person is designated as:
             601          (i) an employee;
             602          (ii) an independent contractor;
             603          (iii) an agent of the licensee; or
             604          (iv) a different type of classification.
             605          (99) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3,
             606      Single Event Permit.
             607          (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
             608      beer, heavy beer, and flavored malt beverages per year.
             609          (101) "Social club license" means a license issued in accordance with Chapter 5, Retail
             610      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             611      social club license.
             612          (102) "Special use permit" means a permit issued in accordance with Chapter 10,
             613      Special Use Permit Act.
             614          (103) (a) "Spirituous liquor" means liquor that is distilled.


             615          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             616      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             617          (104) "Sports center" is as defined by the commission by rule.
             618          (105) (a) "Staff" means an individual who engages in activity governed by this title:
             619          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             620      holder;
             621          (ii) at the request of the business, including a package agent, licensee, permittee, or
             622      certificate holder; or
             623          (iii) under the authority of the business, including a package agent, licensee, permittee,
             624      or certificate holder.
             625          (b) "Staff" includes:
             626          (i) an officer;
             627          (ii) a director;
             628          (iii) an employee;
             629          (iv) personnel management;
             630          (v) an agent of the licensee, including a managing agent;
             631          (vi) an operator; or
             632          (vii) a representative.
             633          (106) "State of nudity" means:
             634          (a) the appearance of:
             635          (i) the nipple or areola of a female human breast;
             636          (ii) a human genital;
             637          (iii) a human pubic area; or
             638          (iv) a human anus; or
             639          (b) a state of dress that fails to opaquely cover:
             640          (i) the nipple or areola of a female human breast;
             641          (ii) a human genital;
             642          (iii) a human pubic area; or
             643          (iv) a human anus.
             644          (107) "State of seminudity" means a state of dress in which opaque clothing covers no
             645      more than:


             646          (a) the nipple and areola of the female human breast in a shape and color other than the
             647      natural shape and color of the nipple and areola; and
             648          (b) the human genitals, pubic area, and anus:
             649          (i) with no less than the following at its widest point:
             650          (A) four inches coverage width in the front of the human body; and
             651          (B) five inches coverage width in the back of the human body; and
             652          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             653          (108) (a) "State store" means a facility for the sale of packaged liquor:
             654          (i) located on premises owned or leased by the state; and
             655          (ii) operated by a state employee.
             656          (b) "State store" does not include:
             657          (i) a package agency;
             658          (ii) a licensee; or
             659          (iii) a permittee.
             660          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
             661      an alcoholic product.
             662          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             663      person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
             664      Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii), 32B-6-805 (15)(b)(ii), or
             665      32B-6-905 (12)(b)(ii).
             666          (110) "Sublicense" is as defined in Section 32B-8-102 .
             667          (111) "Supplier" means a person who sells an alcoholic product to the department.
             668          (112) "Tavern" means an on-premise beer retailer who is:
             669          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             670      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             671          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             672      On-premise Beer Retailer License.
             673          (113) "Temporary beer event permit" means a permit issued in accordance with
             674      Chapter 9, Part 4, Temporary Beer Event Permit.
             675          (114) "Temporary domicile" means the principal place of abode within Utah of a
             676      person who does not have a present intention to continue residency within Utah permanently or


             677      indefinitely.
             678          (115) "Translucent" means a substance that allows light to pass through, but does not
             679      allow an object or person to be seen through the substance.
             680          (116) "Unsaleable liquor merchandise" means a container that:
             681          (a) is unsaleable because the container is:
             682          (i) unlabeled;
             683          (ii) leaky;
             684          (iii) damaged;
             685          (iv) difficult to open; or
             686          (v) partly filled;
             687          (b) (i) has faded labels or defective caps or corks;
             688          (ii) has contents that are:
             689          (A) cloudy;
             690          (B) spoiled; or
             691          (C) chemically determined to be impure; or
             692          (iii) contains:
             693          (A) sediment; or
             694          (B) a foreign substance; or
             695          (c) is otherwise considered by the department as unfit for sale.
             696          (117) (a) "Wine" means an alcoholic product obtained by the fermentation of the
             697      natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
             698      another ingredient is added.
             699          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             700      in this title.
             701          (118) "Winery manufacturing license" means a license issued in accordance with
             702      Chapter 11, Part 3, Winery Manufacturing License.
             703          Section 2. Section 32B-1-201 is amended to read:
             704           32B-1-201. Restrictions on number of retail licenses that may be issued --
             705      Determining population -- Exempt licenses.
             706          (1) As used in this section:
             707          (a) "Alcohol-related law enforcement officer" means a law enforcement officer


             708      employed by the Department of Public Safety that has as a primary responsibility:
             709          (i) the enforcement of this title; or
             710          (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
             711      Reckless Driving.
             712          (b) "Enforcement ratio" is the number calculated as follows:
             713          (i) determine the quotient equal to the sum of the total number of quota retail licenses
             714      available and the total number of licensed premises operating under a master full-service
             715      restaurant license or under a master limited-service restaurant license divided by the total
             716      number of alcohol-related law enforcement officers; and
             717          (ii) round the number determined in accordance with Subsection (1)(b)(ii) up to the
             718      nearest whole number.
             719          (c) "Quota retail license" means:
             720          (i) a full-service restaurant license;
             721          (ii) a limited-service restaurant license;
             722          (iii) a club license;
             723          (iv) an on-premise banquet license;
             724          (v) an on-premise beer retailer operating as a tavern; and
             725          (vi) a reception center license.
             726          (d) "Total number of alcohol-related law enforcement officers" means the total number
             727      of positions designated as alcohol-related law enforcement officers that are funded as of a
             728      specified date as certified by the Department of Public Safety to the department.
             729          (e) "Total number of quota retail licenses available" means the number calculated by:
             730          (i) determining as of a specified date for each quota retail license the number of
             731      licenses that the commission may not exceed calculated by dividing the population of the state
             732      by the number specified in the relevant provision for the quota retail license; and
             733          (ii) adding together the numbers determined under Subsection (1)(d)(i).
             734          (2) (a) Beginning on July 1, 2012, the department shall annually determine the
             735      enforcement ratio as of July 1 of that year.
             736          (b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the
             737      commission may not issue a quota retail license for the 12-month period beginning on the July
             738      1 for which the enforcement ratio is greater than 52.


             739          (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
             740      during the 12-month period described in Subsection (2)(b) beginning on the day on which a
             741      sufficient number of alcohol-related law enforcement officers are employed so that if the
             742      enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.
             743          (d) Once the Department of Public Safety certifies under Subsection (1)(d) the total
             744      number of positions designated as alcohol-related law enforcement officers that are funded as
             745      of July 1, the Department of Public Safety may not use the funding for the designated
             746      alcohol-related law enforcement officers for a purpose other than funding those positions.
             747          (3) For purposes of determining the number of state stores that the commission may
             748      establish or the number of package agencies or retail licenses that the commission may issue,
             749      the commission shall determine population by:
             750          (a) the most recent United States decennial or special census; or
             751          (b) another population determination made by the United States or state governments.
             752          (4) The commission may not consider a retail license that meets the following
             753      conditions in determining the total number of licenses available for that type of retail license
             754      that the commission may issue at any time:
             755          (a) the retail license was issued to a club licensee designated as a dining club as of July
             756      1, 2011; and
             757          (b) the dining club license is converted to another type of retail license in accordance
             758      with Section 32B-6-409 .
             759          Section 3. Section 32B-1-202 is amended to read:
             760           32B-1-202. Proximity to community location.
             761          (1) For purposes of this section, "outlet" means:
             762          (a) a state store;
             763          (b) a package agency; or
             764          (c) a retail licensee, except an airport lounge licensee.
             765          (2) Except as otherwise provided in this section, the premises of an outlet may not be
             766      located:
             767          (a) within 600 feet of a community location, as measured from the nearest entrance of
             768      the outlet by following the shortest route of ordinary pedestrian travel to the property boundary
             769      of the community location; or


             770          (b) within 200 feet of a community location, measured in a straight line from the
             771      nearest entrance of the outlet to the nearest property boundary of the community location.
             772          (3) With respect to the location of an outlet, the commission may authorize a variance
             773      to reduce the proximity requirement of Subsection (2) if:
             774          (a) when the variance reduces the proximity requirement of Subsection (2)(b), the
             775      community location at issue is:
             776          (i) a public library; or
             777          (ii) a public park;
             778          (b) except with respect to a state store, the local authority gives its written consent to
             779      the variance;
             780          (c) the commission finds that alternative locations for locating that type of outlet in the
             781      community are limited;
             782          (d) a public hearing is held in the city, town, or county, and when practical in the
             783      neighborhood concerned;
             784          (e) after giving full consideration to the attending circumstances and the policies stated
             785      in Subsections 32B-1-103 (3) and (4), the commission determines that locating the outlet in that
             786      location would not be detrimental to the public health, peace, safety, and welfare of the
             787      community;
             788          (f) (i) the community location governing authority gives its written consent to the
             789      variance; or
             790          (ii) if the community location governing authority does not give its written consent to a
             791      variance, the commission finds the following for a state store, or if the outlet is a package
             792      agency or retail licensee, the commission finds that the applicant establishes the following:
             793          (A) there is substantial unmet public demand to consume an alcoholic product:
             794          (I) within the geographic boundary of the local authority in which the outlet is to be
             795      located; and
             796          (II) for an outlet that is a retail licensee, in a public setting;
             797          (B) there is no reasonably viable alternative for satisfying the substantial unmet
             798      demand other than through locating that type of outlet in that location; and
             799          (C) there is no reasonably viable alternative location within the geographic boundary of
             800      the local authority in which the outlet is to be located for locating that type of outlet to satisfy


             801      the unmet demand.
             802          (4) With respect to the premises of a package agency or retail licensee that undergoes a
             803      change of ownership, the commission may waive or vary the proximity requirements of
             804      Subsection (2) in considering whether to issue the package agency or same type of retail license
             805      to the new owner of the premises if:
             806          (a) the premises previously received a variance reducing the proximity requirement of
             807      Subsection (2)(a);
             808          (b) the premises received a variance reducing the proximity requirement of Subsection
             809      (2)(b) on or before May 4, 2008; or
             810          (c) a variance from proximity requirements was otherwise allowed under this title.
             811          (5) The commission may grant a variance to a person seeking a retail license from the
             812      requirements of Subsection (2)(b) if:
             813          (a) the premises to be licensed is located in a city of the fifth class or a town;
             814          (b) on or before May 4, 2008, the premises was licensed;
             815          (c) the operations at the premises to be licensed ceased for a period not to exceed three
             816      years; and
             817          (d) the person is operating and otherwise qualified to obtain the retail license that the
             818      person is seeking.
             819          [(5)] (6) Nothing in this section prevents the commission from considering the
             820      proximity of an educational, religious, and recreational facility, or any other relevant factor in
             821      reaching a decision on a proposed location of an outlet.
             822          Section 4. Section 32B-1-207 is amended to read:
             823           32B-1-207. Calculation of ratio of gross receipts of food to alcoholic product.
             824          In calculating the annual gross receipts of a retail license or sublicense for purposes of
             825      determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food
             826      or an alcoholic product, a retail licensee may not include in the calculation the money from the
             827      sale of a bottle of wine by the retail licensee or under a sublicense that is in excess of [$250]
             828      $100.
             829          Section 5. Section 32B-2-202 is amended to read:
             830           32B-2-202. Powers and duties of the commission.
             831          (1) The commission shall:


             832          (a) [consistent with] subject to the policy established by the Legislature by statute, act
             833      as a general [policymaking] administrative body on the subject of alcoholic product control;
             834          (b) adopt and issue policies, rules, and procedures to the extent expressly authorized by
             835      this title;
             836          (c) set policy by written rules that establish criteria and procedures for:
             837          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             838      permit, or certificate of approval; and
             839          (ii) determining the location of a state store, package agency, or retail licensee;
             840          (d) decide within the limits, and under the conditions imposed by this title, the number
             841      and location of state stores, package agencies, and retail licensees in the state;
             842          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             843      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             844      consumption, manufacture, and distribution of an alcoholic product:
             845          (i) a package agency;
             846          (ii) a full-service restaurant license;
             847          (iii) a master full-service restaurant license;
             848          [(iii)] (iv) a limited-service restaurant license;
             849          (v) a master limited-service restaurant license;
             850          [(iv)] (vi) a club license;
             851          [(v)] (vii) an airport lounge license;
             852          [(vi)] (viii) an on-premise banquet license;
             853          [(vii)] (ix) a resort license, under which four or more sublicenses may be included;
             854          [(viii)] (x) an on-premise beer retailer license;
             855          [(ix)] (xi) a reception center license;
             856          [(x)] (xii) a beer-only restaurant license;
             857          [(xi)] (xiii) subject to Subsection (4), a single event permit;
             858          [(xii)] (xiv) subject to Subsection (4), a temporary beer event permit;
             859          [(xiii)] (xv) a special use permit;
             860          [(xiv)] (xvi) a manufacturing license;
             861          [(xv)] (xvii) a liquor warehousing license;
             862          [(xvi)] (xviii) a beer wholesaling license; and


             863          [(xvii)] (xix) one of the following that holds a certificate of approval:
             864          (A) an out-of-state brewer;
             865          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
             866          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
             867          (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke [one of the
             868      following] conditional licenses for the purchase, storage, sale, furnishing, consumption,
             869      manufacture, and distribution of an alcoholic product[:];
             870          [(i) a conditional full-service restaurant license; or]
             871          [(ii) a conditional limited-service restaurant license;]
             872          (g) prescribe the duties of the department in assisting the commission in issuing a
             873      package agency, license, permit, or certificate of approval under this title;
             874          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
             875      in accordance with Section 63J-1-504 ;
             876          (i) fix prices at which liquor is sold that are the same at all state stores, package
             877      agencies, and retail licensees;
             878          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
             879      class, variety, or brand of liquor kept for sale by the department;
             880          (k) (i) require the director to follow sound management principles; and
             881          (ii) require periodic reporting from the director to ensure that:
             882          (A) sound management principles are being followed; and
             883          (B) policies established by the commission are being observed;
             884          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
             885      and matters submitted by the director to the commission; and
             886          (ii) do the things necessary to support the department in properly performing the
             887      department's duties;
             888          (m) obtain temporarily and for special purposes the services of an expert or person
             889      engaged in the practice of a profession, or a person who possesses a needed skill if:
             890          (i) considered expedient; and
             891          (ii) approved by the governor;
             892          (n) prescribe the conduct, management, and equipment of premises upon which an
             893      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;


             894          (o) make rules governing the credit terms of beer sales within the state to retail
             895      licensees; and
             896          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             897      disciplinary action against a person subject to administrative action.
             898          (2) [Consistent with] Subject to the policy established by the Legislature by statute, the
             899      power of the commission to do the following is plenary, except as otherwise provided by this
             900      title, and not subject to review:
             901          (a) establish a state store;
             902          (b) issue authority to act as a package agent or operate a package agency; and
             903          (c) issue or deny a license, permit, or certificate of approval.
             904          (3) If the commission is authorized or required to make a rule under this title, the
             905      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             906      Rulemaking Act.
             907          (4) Notwithstanding Subsections (1)(e)(xi) and (xii), the director or deputy director
             908      may issue an event permit in accordance with Chapter 9, Event Permit Act.
             909          (5) Notwithstanding the other provisions of this title, the commission may not waive or
             910      vary the requirements imposed under this title, including licensing and operational
             911      requirements, except when this title expressly grants the commission authority to waive or vary
             912      the requirements.
             913          Section 6. Section 32B-2-301 is amended to read:
             914           32B-2-301. State property -- Liquor Control Fund -- Markup Holding Fund.
             915          (1) The following are property of the state:
             916          (a) the money received in the administration of this title, except as otherwise provided;
             917      and
             918          (b) property acquired, administered, possessed, or received by the department.
             919          (2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
             920          (b) Except as provided in Sections 32B-3-205 and 32B-2-304 , money received in the
             921      administration of this title shall be transferred to the Liquor Control Fund.
             922          (3) (a) There is created an enterprise fund known as the "Markup Holding Fund."
             923          (b) In accordance with Section 32B-2-304 , the State Tax Commission shall deposit
             924      revenue remitted to the State Tax Commission from the markup imposed under Section


             925      32B-2-304 into the Markup Holding Fund.
             926          (c) Money deposited into the Markup Holding Fund may be expended:
             927          (i) to the extent appropriated by the Legislature; and
             928          (ii) to fund the deposits required by Subsection 32B-2-304 (4) and Subsection
             929      32B-2-305 (4).
             930          [(4) The state treasurer shall by warrant draw from the Liquor Control Fund and, to the
             931      extent appropriated by the Legislature, from the Markup Holding Fund, the expenses, debts,
             932      and liabilities incurred by the department in connection with the administration of this title or
             933      any other expense necessary for the administration of this title, including:]
             934          [(a) salaries;]
             935          [(b) premiums, if any, on a bond for which the department pays premiums; and]
             936          [(c) an expenditure incurred in establishing, operating, or maintaining a state store or
             937      package agency.]
             938          (4) The department may draw from the Liquor Control Fund only to the extent
             939      appropriated by the Legislature or provided for by statute, except that the department may draw
             940      by warrant without an appropriation from the Liquor Control Fund for an expenditure that is
             941      directly incurred by the department:
             942          (a) to purchase an alcoholic product;
             943          (b) to transport an alcoholic product from the supplier to a warehouse of the
             944      department; and
             945          (c) for variances related to an alcoholic product.
             946          (5) The department shall transfer annually from the Liquor Control Fund and the State
             947      Tax Commission shall transfer annually from the Markup Holding Fund to the General Fund a
             948      sum equal to the amount of net profit earned from the sale of liquor since the preceding transfer
             949      of money under this Subsection (5). The transfers shall be calculated by no later than
             950      September 1 and made by no later than September 30 after a fiscal year. The Division of
             951      Finance may make year-end closing entries in the Liquor Control Fund and the Markup
             952      Holding Fund in order to comply with Subsection 51-5-6 (2).
             953          (6) (a) By the end of each day, the department shall:
             954          (i) make a deposit to a qualified depository, as defined in Section 51-7-3 ; and
             955          (ii) report the deposit to the state treasurer.


             956          (b) A commissioner or department employee is not personally liable for a loss caused
             957      by the default or failure of a qualified depository.
             958          (c) Money deposited in a qualified depository is entitled to the same priority of
             959      payment as other public funds of the state.
             960          (7) If the cash balance of the Liquor Control Fund is not adequate to cover a warrant
             961      drawn against the Liquor Control Fund by the [state treasurer] department, the cash resources
             962      of the General Fund may be used to the extent necessary. At no time may the fund equity of
             963      the Liquor Control Fund fall below zero.
             964          Section 7. Section 32B-2-305 is amended to read:
             965           32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
             966          (1) As used in this section:
             967          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201 .
             968          (b) "Enforcement ratio" is as defined in Section 32B-1-201 .
             969          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
             970      this section.
             971          (2) There is created a restricted special revenue fund known as the "Alcoholic
             972      Beverage Control Act Enforcement Fund."
             973          (3) (a) The fund consists of:
             974          (i) deposits made under Subsection (4); [and]
             975          (ii) deposits made under Subsection 32B-3-205 (3); and
             976          [(ii)] (iii) interest earned on the fund.
             977          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             978          (4) After the deposit made under Section 32B-2-304 for the school lunch program, the
             979      department shall deposit 1% of the total gross revenue from the sale of liquor with the state
             980      treasurer to be credited to the fund to be used by the Department of Public Safety as provided
             981      in Subsection (5).
             982          (5) (a) The Department of Public Safety shall expend money from the fund to
             983      supplement appropriations by the Legislature so that the Department of Public Safety maintains
             984      a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
             985      2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
             986      in Section 32B-1-201 .


             987          (b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as
             988      a primary focus the enforcement of this title in relationship to restaurants.
             989          Section 8. Section 32B-2-307 is enacted to read:
             990          32B-2-307. Alcoholic Beverage Control Act Legal Fund.
             991          (1) As used in this section, "fund" means the Alcoholic Beverage Control Act Legal
             992      Fund created in this section.
             993          (2) There is created a restricted special revenue fund known as the "Alcoholic
             994      Beverage Control Act Legal Fund."
             995          (3) (a) The fund consists of:
             996          (i) deposits made under Section 32B-3-205 ; and
             997          (ii) interest earned on the fund.
             998          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             999          (4) The Office of the Attorney General shall expend money from the fund to
             1000      supplement appropriations by the Legislature to fund enforcement of this title.
             1001          Section 9. Section 32B-2-605 is amended to read:
             1002           32B-2-605. Operational requirements for package agency.
             1003          (1) (a) A person may not operate a package agency until a package agency agreement is
             1004      entered into by the package agent and the department.
             1005          (b) A package agency agreement shall state the conditions of operation by which the
             1006      package agent and the department are bound.
             1007          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             1008      title, or the package agency agreement, the department may take any action against the package
             1009      agent that is allowed by the package agency agreement.
             1010          (ii) An action against a package agent is governed solely by its package agency
             1011      agreement and may include suspension or revocation of the package agency.
             1012          (iii) A package agency agreement shall provide procedures to be followed if a package
             1013      agent fails to pay money owed to the department including a procedure for replacing the
             1014      package agent or operator of the package agency.
             1015          (iv) A package agency agreement shall provide that the package agency is subject to
             1016      covert investigations for selling an alcoholic product to a minor.
             1017          (v) Notwithstanding that this part refers to "package agency" or "package agent," staff


             1018      of the package agency or package agent is subject to the same requirement or prohibition.
             1019          (2) (a) A package agency shall be operated by an individual who is either:
             1020          (i) the package agent; or
             1021          (ii) an individual designated by the package agent.
             1022          (b) An individual who is a designee under this Subsection (2) shall be:
             1023          (i) an employee of the package agent; and
             1024          (ii) responsible for the operation of the package agency.
             1025          (c) The conduct of the designee is attributable to the package agent.
             1026          (d) A package agent shall submit the name of the person operating the package agency
             1027      to the department for the department's approval.
             1028          (e) A package agent shall state the name and title of a designee on the application for a
             1029      package agency.
             1030          (f) A package agent shall:
             1031          (i) inform the department of a proposed change in the individual designated to operate
             1032      a package agency; and
             1033          (ii) receive prior approval from the department before implementing the change
             1034      described in this Subsection (2)(f).
             1035          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             1036      immediate termination of a package agency agreement.
             1037          (3) (a) A package agent shall display in a prominent place in the package agency the
             1038      record issued by the commission that designates the package agency.
             1039          (b) A package agent that displays or stores liquor at a location visible to the public
             1040      shall display in a prominent place in the package agency a sign in large letters that consists of
             1041      text in the following order:
             1042          (i) a header that reads: "WARNING";
             1043          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1044      can cause birth defects and permanent brain damage for the child.";
             1045          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1046      [insert most current toll-free number] with questions or for more information.";
             1047          (iv) a header that reads: "WARNING"; and
             1048          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a


             1049      serious crime that is prosecuted aggressively in Utah."
             1050          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1051      font style than the text described in Subsections (3)(b)(iv) and (v).
             1052          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1053      same font size.
             1054          (d) The Department of Health shall work with the commission and department to
             1055      facilitate consistency in the format of a sign required under this section.
             1056          (4) A package agency may not display liquor or a price list in a window or showcase
             1057      that is visible to passersby.
             1058          (5) (a) A package agency may not purchase liquor from a person except from the
             1059      department.
             1060          (b) At the discretion of the department, liquor may be provided by the department to a
             1061      package agency for sale on consignment.
             1062          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             1063      other than as designated in the package agent's application, unless the package agent first
             1064      applies for and receives approval from the department for a change of location within the
             1065      package agency premises.
             1066          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             1067      fixed by the commission.
             1068          (8) A package agency may not sell, offer for sale, or furnish liquor to:
             1069          (a) a minor;
             1070          (b) a person actually, apparently, or obviously intoxicated;
             1071          (c) a known interdicted person; or
             1072          (d) a known habitual drunkard.
             1073          (9) (a) A package agency may not employ a minor to handle liquor.
             1074          (b) (i) Staff of a package agency may not:
             1075          (A) consume an alcoholic product on the premises of a package agency; or
             1076          (B) allow any person to consume an alcoholic product on the premises of a package
             1077      agency.
             1078          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             1079          (10) (a) A package agency may not close or cease operation for a period longer than 72


             1080      hours, unless:
             1081          (i) the package agency notifies the department in writing at least seven days before the
             1082      closing; and
             1083          (ii) the closure or cessation of operation is first approved by the department.
             1084          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             1085      agency shall immediately notify the department by telephone.
             1086          (c) (i) The department may authorize a closure or cessation of operation for a period
             1087      not to exceed 60 days.
             1088          (ii) The department may extend the initial period an additional 30 days upon written
             1089      request of the package agency and upon a showing of good cause.
             1090          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1091      commission approval.
             1092          (d) The notice required by Subsection (10)(a) shall include:
             1093          (i) the dates of closure or cessation of operation;
             1094          (ii) the reason for the closure or cessation of operation; and
             1095          (iii) the date on which the package agency will reopen or resume operation.
             1096          (e) Failure of a package agency to provide notice and to obtain department
             1097      authorization before closure or cessation of operation results in an automatic termination of the
             1098      package agency agreement effective immediately.
             1099          (f) Failure of a package agency to reopen or resume operation by the approved date
             1100      results in an automatic termination of the package agency agreement effective on that date.
             1101          (11) A package agency may not transfer its operations from one location to another
             1102      location without prior written approval of the commission. A package agency shall pay an
             1103      application fee of $300 to apply for the written approval of the commission under this
             1104      Subsection (11).
             1105          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             1106      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             1107      person, whether for monetary gain or not.
             1108          (b) A package agency has no monetary value for any type of disposition.
             1109          (13) (a) Subject to the other provisions of this Subsection (13):
             1110          (i) sale or delivery of liquor may not be made on or from the premises of a package


             1111      agency, and a package agency may not be kept open for the sale of liquor:
             1112          (A) on Sunday; or
             1113          (B) on a state or federal legal holiday.
             1114          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             1115      agency, and a package agency may be open for the sale of liquor, only on a day and during
             1116      hours that the commission directs by rule or order.
             1117          (b) A package agency located at a manufacturing facility is not subject to Subsection
             1118      (13)(a) if:
             1119          (i) the package agency is located [at] on the same parcel as a manufacturing facility
             1120      licensed in accordance with Chapter 11, Manufacturing and Related Licenses Act;
             1121          (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
             1122      and Related Licenses Act, holds:
             1123          (A) a full-service restaurant license;
             1124          (B) a limited-service restaurant license;
             1125          (C) a beer-only restaurant license; or
             1126          (D) dining club license;
             1127          (iii) the restaurant or dining club is located at the manufacturing facility;
             1128          (iv) the restaurant or dining club sells an alcoholic product produced [at] by the
             1129      manufacturing [facility] licensee;
             1130          (v) the manufacturing facility:
             1131          (A) owns the restaurant or dining club; or
             1132          (B) operates the restaurant or dining club;
             1133          (vi) the package agency only sells an alcoholic product produced [at] by the
             1134      manufacturing [facility] licensee; and
             1135          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1136      sale at the restaurant or dining club.
             1137          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
             1138      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             1139      in a manner similar to a state store.
             1140          (ii) The commission may by rule define what constitutes a package agency that sells
             1141      liquor "in a manner similar to a state store."


             1142          (d) As used in this Subsection (13), "parcel" means an identifiable single unit of
             1143      property that is treated as separate for valuation or zoning purposes and includes an
             1144      improvement on that unit of property.
             1145          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1146      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1147      is:
             1148          (i) 21 years of age or older; and
             1149          (ii) the minor's parent, legal guardian, or spouse.
             1150          (b) A package agent or staff of a package agency that has reason to believe that a
             1151      person who is on the premises of a package agency is under the age of 21 and is not
             1152      accompanied by a person described in Subsection (14)(a) may:
             1153          (i) ask the suspected minor for proof of age;
             1154          (ii) ask the person who accompanies the suspected minor for proof of age; and
             1155          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1156      proof of parental, guardianship, or spousal relationship.
             1157          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             1158      suspected minor and to the person who accompanies the suspected minor into the package
             1159      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             1160          (d) A package agent or staff of a package agency shall require the suspected minor and
             1161      the person who accompanies the suspected minor into the package agency to immediately leave
             1162      the premises of the package agency if the minor or person fails to provide information specified
             1163      in Subsection (14)(b).
             1164          (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
             1165      container.
             1166          (b) A person may not open a sealed container on the premises of a package agency.
             1167          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
             1168      furnish liquor in other than a sealed container:
             1169          (i) if the package agency is the type of package agency that authorizes the package
             1170      agency to sell, offer for sale, or furnish the liquor as part of room service;
             1171          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
             1172          (iii) subject to:


             1173          (A) staff of the package agency providing the liquor in person only to an adult guest in
             1174      the guest room;
             1175          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
             1176      by a guest; and
             1177          (C) the same limits on the portions in which an alcoholic product may be sold by a
             1178      retail licensee under Section 32B-5-304 .
             1179          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
             1180      furnish heavy beer in a sealed container that exceeds two liters.
             1181          (17) The department may pay or otherwise remunerate a package agent on any basis,
             1182      including sales or volume of business done by the package agency.
             1183          (18) The commission may prescribe by policy or rule general operational requirements
             1184      of a package agency that are consistent with this title and relate to:
             1185          (a) physical facilities;
             1186          (b) conditions of operation;
             1187          (c) hours of operation;
             1188          (d) inventory levels;
             1189          (e) payment schedules;
             1190          (f) methods of payment;
             1191          (g) premises security; and
             1192          (h) any other matter considered appropriate by the commission.
             1193          Section 10. Section 32B-3-205 is amended to read:
             1194           32B-3-205. Penalties.
             1195          (1) If the commission is satisfied that a person subject to administrative action violates
             1196      this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
             1197      Procedures Act, the commission may:
             1198          (a) suspend or revoke the person's license, permit, or certificate of approval;
             1199          (b) subject to Subsection (2), impose a fine against the person, including individual
             1200      staff of a licensee, permittee, or certificate holder;
             1201          (c) assess the administrative costs of a disciplinary proceeding to the person if the
             1202      person is a licensee, permittee, or certificate holder; or
             1203          (d) take a combination of actions described in this Subsection (1).


             1204          (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
             1205          (i) a single notice of agency action; or
             1206          (ii) a single action against a package agency.
             1207          (b) The commission shall by rule establish a schedule setting forth a range of fines for
             1208      each violation.
             1209          (3) [The] (a) Except as provided in Subsection (3)(b), the commission shall transfer
             1210      the costs assessed under this section into the General Fund in accordance with Section
             1211      32B-2-301 .
             1212          (b) Fines assessed under Subsections (11) and (12) shall be deposited as follows:
             1213          (i) $130,000 into the Alcoholic Beverage Control Act Legal Fund created in Section
             1214      32B-2-307 ; and
             1215          (ii) the remainder of the money into the Alcoholic Beverage Control Act Enforcement
             1216      Fund created in Section 32B-2-305 .
             1217          (4) (a) If a license or permit is suspended under this section, the licensee or permittee
             1218      shall prominently display a sign provided by the department:
             1219          (i) during the suspension; and
             1220          (ii) at the entrance of the premises of the licensee or permittee.
             1221          (b) The sign required by this Subsection (4) shall:
             1222          (i) read "The Utah Alcoholic Beverage Control Commission has suspended the
             1223      alcoholic product license or permit of this establishment. An alcoholic product may not be
             1224      sold, offered for sale, furnished, or consumed on these premises during the period of
             1225      suspension."; and
             1226          (ii) include the dates of the suspension period.
             1227          (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
             1228      be displayed under this Subsection (4) during the suspension period.
             1229          (5) (a) If a license or permit is revoked, the commission may order the revocation of a
             1230      bond posted by the licensee or permittee under this title.
             1231          (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
             1232      bond posted by a licensee or permittee for money owed the department under this title without
             1233      the commission first revoking the license or permit.
             1234          (6) A licensee or permittee whose license or permit is revoked may not reapply for a


             1235      license or permit under this title for three years from the date on which the license or permit is
             1236      revoked.
             1237          (7) If a staff member of a licensee, permittee, or certificate holder is found to have
             1238      violated this title, in addition to imposing another penalty authorized by this title, the
             1239      commission may prohibit the staff member from handling, selling, furnishing, distributing,
             1240      manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
             1241      staff with a licensee, permittee, or certificate holder under this title for a period determined by
             1242      the commission.
             1243          (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
             1244      to other penalties prescribed by this title, the commission may order:
             1245          (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
             1246      from the department's sales list; and
             1247          (ii) a suspension of the department's purchase of an alcoholic product described in
             1248      Subsection (8)(a)(i) for a period determined by the commission.
             1249          (b) The commission may take the action described in Subsection (8)(a) if:
             1250          (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
             1251      this title; and
             1252          (ii) the manufacturer, supplier, or importer:
             1253          (A) directly commits the violation; or
             1254          (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
             1255      the violation.
             1256          (9) If the commission makes a finding that the brewer holding a certificate of approval
             1257      violates this title or rules of the commission, the commission may take an action against the
             1258      brewer holding a certificate of approval that the commission could take against a licensee
             1259      including:
             1260          (a) suspension or revocation of the certificate of approval; and
             1261          (b) imposition of a fine.
             1262          (10) Notwithstanding the other provisions of this title, the commission may not order a
             1263      disciplinary action or fine in accordance with this section if the disciplinary action or fine is
             1264      ordered on the basis of a violation:
             1265          (a) of a provision in this title related to intoxication or becoming intoxicated; and


             1266          (b) if the violation is first investigated by a law enforcement officer, as defined in
             1267      Section 53-13-103 , who has not received training regarding the requirements of this title
             1268      related to responsible alcoholic product sale or service.
             1269          (11) (a) The commission shall impose, at a minimum, the following penalties for a
             1270      violation related to service of an alcoholic product to a minor that occurs during an operation
             1271      under Title 77, Chapter 39, Sale of Tobacco or Alcohol to Under Age Persons, or similar
             1272      operation by a peace officer, as defined by Title 53, Chapter 13, Peace Officer Classifications:
             1273          (i) for a first violation:
             1274          (A) a mandatory minimum fine of $1,500; and
             1275          (B) mandatory training under Chapter 5, Part 4, Alcohol Training and Education Act,
             1276      of anyone who is required to be trained under Chapter 5, Part 4, but who has completed the
             1277      training more than 11 months before the day on which the fine described in Subsection
             1278      (11)(a)(i)(A) is imposed;
             1279          (ii) for a second violation that occurs within 18 months of the day on which the penalty
             1280      is imposed for the first violation:
             1281          (A) a mandatory minimum suspension of five days, served in successive days,
             1282      including a weekend; and
             1283          (B) a mandatory minimum fine of $3,000; and
             1284          (iii) for a third violation that occurs within three years of the day on which the penalty
             1285      is imposed for the first violation:
             1286          (A) a mandatory minimum suspension of 14 days, served in successive days, including
             1287      two weekends; and
             1288          (B) a mandatory minimum fine of $10,000.
             1289          (b) The commission may not waive the penalties imposed under this Subsection (11).
             1290          (12) (a) For a violation of Section 32B-1-407 or admitting a minor to a place where an
             1291      alcoholic product is sold or consumed, but where under this title a minor is not permitted, that
             1292      occurs during an operation under Title 77, Chapter 39, Sale of Tobacco or Alcohol to Under
             1293      Age Persons, or similar operation by a peace officer, as defined by Title 53, Chapter 13, Peace
             1294      Officer Classifications, the commission shall impose, at a minimum, a suspension of five days
             1295      or a fine of $1,000.
             1296          (b) The commission may not waive the penalties imposed under this Subsection (12).


             1297          Section 11. Section 32B-5-205 is amended to read:
             1298           32B-5-205. Conditional retail license.
             1299          (1) As used in this section:
             1300          (a) "Conditional retail license" means a retail license that:
             1301          [(i) is for one of the following:]
             1302          [(A) a full-service restaurant license; or]
             1303          [(B) a limited-service restaurant license;]
             1304          [(ii)] (i) conditions the holder's ability to sell, offer for sale, furnish, or allow the
             1305      consumption of an alcoholic product on its licensed premises on the person submitting to the
             1306      department a copy of the holder's current business license before obtaining a valid retail
             1307      license; and
             1308          [(iii)] (ii) provides that the holder will be issued a valid retail license if the holder
             1309      complies with the requirements of Subsection (3).
             1310          (b) "Valid retail license" means a retail license issued pursuant to this part under which
             1311      the holder is permitted to sell, offer for sale, furnish, or allow the consumption of an alcoholic
             1312      product on its licensed premises.
             1313          (2) Subject to the requirements of this section, the commission may issue a conditional
             1314      retail license to a person if the person:
             1315          (a) meets the requirements to obtain the retail license for which the person is applying
             1316      except the requirement to submit a copy of the person's current business license; and
             1317          (b) agrees not to sell, offer for sale, furnish, or allow the consumption of an alcoholic
             1318      product on its licensed premises before obtaining a valid retail license.
             1319          (3) (a) A conditional retail license becomes a valid retail license on the day on which
             1320      the department notifies the person who holds the conditional retail license that the department
             1321      finds that the person has complied with Subsection (3)(b).
             1322          (b) For a conditional retail license to become a valid retail license, a person who holds
             1323      the conditional retail license shall:
             1324          (i) submit to the department a copy of the person's current business license; and
             1325          (ii) provide to the department evidence satisfactory to the department that:
             1326          (A) there has been no change in the information submitted to the commission as part of
             1327      the person's application for a retail license; and


             1328          (B) the person continues to qualify for the retail license.
             1329          (4) (a) A conditional retail license expires six months after the day on which the
             1330      commission issues the conditional retail license, unless the conditional retail license becomes a
             1331      valid retail license before that day.
             1332          (b) Notwithstanding Subsection (4)(a), the commission may extend the time period of a
             1333      conditional retail license an additional three months if the holder of the conditional license can
             1334      show to the satisfaction of the commission that the holder of the conditional license:
             1335          (i) has an active building permit related to the licensed premises; and
             1336          (ii) is engaged in a good faith effort to pursue completion within the three-month
             1337      period.
             1338          Section 12. Section 32B-5-207 is enacted to read:
             1339          32B-5-207. Multiple retail licenses at same building.
             1340          (1) (a) The commission may not issue to one or more retail licensees more than one
             1341      type of retail license for the same building unless the commission determines that:
             1342          (i) the licensed premises for each retail license is in a separate room within the
             1343      building; and
             1344          (ii) the requirements for each retail license are met.
             1345          (b) The commission may define "separate room" by rule made in accordance with Title
             1346      63G, Chapter 3, Utah Administrative Rulemaking Act.
             1347          (2) Notwithstanding Subsection (1), the commission may issue more than one type of
             1348      retail license for the same room if:
             1349          (a) each retail license operates at a different day or time;
             1350          (b) the requirements for each retail license are met; and
             1351          (c) the types of retail licenses issued are:
             1352          (i) (A) on-premise beer retailer license associated with a ski resort;
             1353          (B) a full-service restaurant license, a limited-service restaurant license, or a beer-only
             1354      restaurant license; and
             1355          (C) an on-premise banquet catering license; or
             1356          (ii) (A) a full-service restaurant license, a limited-service restaurant license, or a
             1357      beer-only restaurant license; and
             1358          (B) an on-premise banquet license.


             1359          (3) (a) If on May 14, 2013, a building has more than one type of retail license within
             1360      the building in a manner that violates Subsection (1) or (2), the one or more retail licensees
             1361      may operate under the different types of retail licenses until January 1, 2015.
             1362          (b) The commission shall establish by rule, made in accordance with Title 63G,
             1363      Chapter 3, Utah Administrative Rulemaking Act, the process to be followed to determine
             1364      which retail license described in Subsection (2) may continue to operate within the building on
             1365      and after January 1, 2015.
             1366          Section 13. Section 32B-5-301 is amended to read:
             1367           32B-5-301. General operational requirements.
             1368          (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
             1369      rules of the commission, including the relevant part under Chapter 6, Specific Retail License
             1370      Act, for the specific type of retail license.
             1371          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1372      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1373          (i) a retail licensee;
             1374          (ii) individual staff of a retail licensee; or
             1375          (iii) both a retail licensee and staff of the retail licensee.
             1376          (2) (a) If there is a conflict between this part and the relevant part under Chapter 6,
             1377      Specific Retail License Act, for the specific type of retail license, the relevant part under
             1378      Chapter 6 governs.
             1379          (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
             1380      licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
             1381      specifically authorized by the relevant part under Chapter 6, Specific Retail License Act.
             1382          (c) Notwithstanding that this part or the relevant part under Chapter 6, Specific Retail
             1383      License Act, refers to "retail licensee," staff of the retail licensee is subject to the same
             1384      requirement or prohibition.
             1385          (3) (a) A retail licensee shall display in a prominent place in the licensed premises the
             1386      retail license that is issued by the department.
             1387          (b) A retail licensee shall display in a prominent place a sign in large letters that
             1388      consists of text in the following order:
             1389          (i) a header that reads: "WARNING";


             1390          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1391      can cause birth defects and permanent brain damage for the child.";
             1392          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1393      [insert most current toll-free number] with questions or for more information.";
             1394          (iv) a header that reads: "WARNING"; and
             1395          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1396      serious crime that is prosecuted aggressively in Utah."
             1397          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1398      font style than the text described in Subsections (3)(b)(iv) and (v).
             1399          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1400      same font size.
             1401          (d) The Department of Health shall work with the commission and department to
             1402      facilitate consistency in the format of a sign required under this section.
             1403          (4) A retail licensee may not on the licensed premises:
             1404          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1405      Chapter 10, Part 11, Gambling;
             1406          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1407      Part 11, Gambling; or
             1408          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1409      the risking of something of value for a return or for an outcome when the return or outcome is
             1410      based upon an element of chance, excluding the playing of an amusement device that confers
             1411      only an immediate and unrecorded right of replay not exchangeable for value.
             1412          (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
             1413      violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             1414      Paraphernalia Act:
             1415          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1416      58-37-2 ; or
             1417          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1418      Section 58-37a-3 .
             1419          (6) Upon the presentation of credentials, at any time during which a retail licensee is
             1420      open for the transaction of business, the retail licensee shall immediately:


             1421          (a) admit a commissioner, authorized department employee, or law enforcement officer
             1422      to the retail licensee's premises; and
             1423          (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
             1424      inspect completely:
             1425          (i) the entire premises of the retail licensee; and
             1426          (ii) the records of the retail licensee.
             1427          (7) An individual may not consume an alcoholic product on the licensed premises of a
             1428      retail licensee on any day during the period:
             1429          (a) beginning one hour after the time of day that the period during which a retail
             1430      licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
             1431      begins; and
             1432          (b) ending at the time specified in the relevant part under Chapter 6, Specific Retail
             1433      License Act, for the type of retail license when the retail licensee may first sell, offer for sale,
             1434      or furnish an alcoholic product on the licensed premises on that day.
             1435          (8) (a) The time period a retail licensee may sell, offer for sale, or furnish an alcoholic
             1436      product is specified in the relevant part under Chapter 6, Specific Retail License Act, for the
             1437      type of retail license.
             1438          (b) Notwithstanding Subsection (8)(a), a local authority may impose more restrictive
             1439      hours during which a retail licensee may sell, offer for sale, or furnish an alcoholic product.
             1440          Section 14. Section 32B-5-304 is amended to read:
             1441           32B-5-304. Portions in which alcoholic product may be sold.
             1442          (1) (a) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor
             1443      only in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated
             1444      metered dispensing system approved by the department in accordance with commission rules
             1445      adopted under this title, except that:
             1446          [(a)] (i) spirituous liquor need not be dispensed through a calibrated metered
             1447      dispensing system if used as a secondary flavoring ingredient in a beverage subject to the
             1448      following requirements:
             1449          [(i)] (A) the secondary ingredient may be dispensed only in conjunction with the
             1450      purchase of a primary spirituous liquor;
             1451          [(ii)] (B) the secondary ingredient may not be the only spirituous liquor in the


             1452      beverage;
             1453          [(iii)] (C) the retail licensee shall designate a location where flavorings are stored on
             1454      the floor plan submitted to the department; and
             1455          [(iv)] (D) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1456          [(b)] (ii) spirituous liquor need not be dispensed through a calibrated metered
             1457      dispensing system if used:
             1458          [(i)] (A) as a flavoring on a dessert; and
             1459          [(ii)] (B) in the preparation of a flaming food dish, drink, or dessert; and
             1460          [(c)] (iii) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
             1461          (b) A retail licensee may sell, offer for sale, or furnish an individual portion of
             1462      spirituous liquor to a patron in more than one container if:
             1463          (i) the total amount of spirituous liquor in all of the containers does not exceed 1.5
             1464      ounces;
             1465          (ii) the retail licensee holds a manufacturing license;
             1466          (iii) the portion is provided in separate containers for educational purposes;
             1467          (iv) no more than six containers are provided at the same time; and
             1468          (v) a patron is offered only one set of containers per day by the retail licensee.
             1469          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
             1470      individual portion that does not exceed 5 ounces per glass or individual portion.
             1471          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
             1472      a patron in more than one [glass] container if the total amount of wine does not exceed 5
             1473      ounces.
             1474          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not
             1475      exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
             1476          (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
             1477      exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
             1478          (3) (a) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
             1479      container at a price fixed by the commission, except that the original container may not exceed
             1480      one liter.
             1481          (b) A retail licensee may sell, offer for sale, or furnish an individual portion of heavy
             1482      beer to a patron in more than one container if:


             1483          (i) the total amount of heavy beer in all of the containers does not exceed 12 ounces;
             1484          (ii) the retail licensee holds a manufacturing license;
             1485          (iii) the portion is provided in separate containers for educational purposes;
             1486          (iv) no more than six containers are provided at the same time; and
             1487          (v) a patron is offered only one set of containers per day by the retail licensee.
             1488          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
             1489      original container at a price fixed by the commission, except that the original container may not
             1490      exceed one liter.
             1491          (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
             1492      beer for on-premise consumption:
             1493          (i) in an open original container; and
             1494          (ii) in a container on draft.
             1495          (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
             1496          (i) in a size of container that exceeds two liters; or
             1497          (ii) to an individual patron in a size of container that exceeds one liter.
             1498          (c) A retail licensee may sell, offer for sale, or furnish an individual portion of beer to a
             1499      patron in more than one container if:
             1500          (i) the total amount of beer in all of the containers does not exceed 12 ounces;
             1501          (ii) the retail licensee holds a manufacturing license;
             1502          (iii) the portions are provided in separate containers for educational purposes;
             1503          (iv) no more than six containers are provided at the same time; and
             1504          (v) a patron is offered only one set of containers per day by the retail licensee.
             1505          Section 15. Section 32B-5-309 (Superseded 07/01/13) is amended to read:
             1506           32B-5-309 (Superseded 07/01/13). Ceasing operation -- Prohibiting transfer of
             1507      license.
             1508          (1) (a) Except as provided in Subsection (1)(h), a retail licensee may not close or cease
             1509      operation for a period longer than 240 hours, unless:
             1510          (i) the retail licensee notifies the department in writing at least seven days before the
             1511      day on which the retail licensee closes or ceases operation; and
             1512          (ii) the closure or cessation of operation is first approved by the department.
             1513          (b) Notwithstanding Subsection (1)(a), in the case of emergency closure, a retail


             1514      licensee shall immediately notify the department by telephone.
             1515          (c) (i) The department may authorize a closure or cessation of operation of a retail
             1516      licensee for a period not to exceed 60 days.
             1517          (ii) The department may extend the initial period an additional 30 days upon:
             1518          (A) written request of the retail licensee; and
             1519          (B) a showing of good cause.
             1520          (d) A closure or cessation of operation may not exceed a total of 90 days without
             1521      commission approval.
             1522          (e) A notice required under this Subsection (1) shall include:
             1523          (i) the dates of closure or cessation of operation;
             1524          (ii) the reason for the closure or cessation of operation; and
             1525          (iii) the date on which the retail licensee will reopen or resume operation.
             1526          (f) Failure of a retail licensee to provide notice and to obtain department approval
             1527      before closure or cessation of operation results in an automatic forfeiture of:
             1528          (i) the retail license; and
             1529          (ii) the unused portion of the retail license fee for the remainder of the retail license
             1530      year effective immediately.
             1531          (g) Failure of a retail licensee to reopen or resume operation by the approved date
             1532      results in an automatic forfeiture of:
             1533          (i) the retail license; and
             1534          (ii) the unused portion of the retail license fee for the remainder of the retail license
             1535      year.
             1536          (h) This Subsection (1) does not apply to:
             1537          (i) an on-premise beer retailer who is not a tavern; or
             1538          (ii) an airport lounge licensee.
             1539          (2) A retail licensee may not transfer a retail license from one location to another
             1540      location, without prior written approval of the commission. A retail licensee shall pay an
             1541      application fee of $300 to apply for the written approval of the commission under this
             1542      Subsection (2).
             1543          (3) (a) A person, having been issued a retail license may not sell, transfer, assign,
             1544      exchange, barter, give, or attempt in any way to dispose of the retail license to another person


             1545      whether for monetary gain or not.
             1546          (b) A retail license has no monetary value for any type of disposition.
             1547          Section 16. Section 32B-5-311 is enacted to read:
             1548          32B-5-311. Private events at retail licensee premises after hours.
             1549          Subject to Sections 32B-5-309 and 32B-6-505 , a retail licensee may temporarily rent or
             1550      otherwise temporarily lease its premises to a person after the hours the retail licensee may sell,
             1551      offer for sale, or furnish an alcoholic product if:
             1552          (1) the person who temporarily rents or leases the licensed premises obtains an event
             1553      permit under Chapter 9, Event Permit Act, for the time period that the retail licensee rents or
             1554      otherwise leases its licensed premises;
             1555          (2) the event for which the licensed premises are leased is not open to the public;
             1556          (3) the person to whom the retail licensee rents or leases the premises agrees in writing
             1557      to comply with this title as if the person is the retail licensee, except for:
             1558          (a) a requirement related to making or maintaining a record; and
             1559          (b) the hours during which an alcoholic product may be sold, offered for sale, or
             1560      furnished; and
             1561          (4) the retail licensee takes reasonable steps to ensure that the person complies with
             1562      this section.
             1563          Section 17. Section 32B-6-203 is amended to read:
             1564           32B-6-203. Commission's power to issue full-service restaurant license.
             1565          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             1566      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             1567      full-service restaurant license from the commission in accordance with this part.
             1568          (2) The commission may issue a full-service restaurant license to establish full-service
             1569      restaurant licensed premises at places and in numbers the commission considers proper for the
             1570      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             1571      operated as a full-service restaurant.
             1572          (3) Subject to Section 32B-1-201 :
             1573          (a) The commission may not issue a total number of full-service restaurant licenses that
             1574      at any time exceeds the number determined by dividing the population of the state by 4,534.
             1575          (b) The commission may issue a seasonal full-service restaurant license in accordance


             1576      with Section 32B-5-206 .
             1577          (c) (i) If the location, design, and construction of a hotel may require more than one
             1578      full-service restaurant sales location within the hotel to serve the public convenience, the
             1579      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             1580      many as three full-service restaurant locations within the hotel under one full-service restaurant
             1581      license if:
             1582          (A) the hotel has a minimum of 150 guest rooms; and
             1583          (B) the locations under the full-service restaurant license are:
             1584          (I) within the same hotel; and
             1585          (II) on premises that are managed or operated, and owned or leased, by the full-service
             1586      restaurant licensee.
             1587          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             1588      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             1589          (d) The commission may not issue a single full-service restaurant license to a
             1590      full-service restaurant that would have licensed premises in more than one building unless
             1591      there is continuity in the premises between the multiple buildings after considering one or more
             1592      of the following:
             1593          (i) whether a patron would go through an unlicensed area to move from one part of the
             1594      licenced premises to a different part of the licensed premises;
             1595          (ii) whether the buildings share common food preparation facilities;
             1596          (iii) whether there is a common entrance to the licensed premises with multiple
             1597      buildings; and
             1598          (iv) any other factor the commission considers relevant.
             1599          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             1600      full-service restaurant license for premises that do not meet the proximity requirements of
             1601      Section 32B-1-202 .
             1602          (b) With respect to the premises of a full-service restaurant license issued by the
             1603      commission that undergoes a change of ownership, the commission shall waive or vary the
             1604      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             1605      full-service restaurant license to the new owner of the premises if:
             1606          (i) when a full-service restaurant license was issued to a previous owner, the premises


             1607      met the proximity requirements of Subsection 32B-1-202 (2);
             1608          (ii) the premises has had a full-service restaurant license at all times since the
             1609      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             1610      and
             1611          (iii) the community location was located within the proximity requirements of
             1612      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             1613      Subsection (4)(b)(i) was issued.
             1614          Section 18. Section 32B-6-205 is amended to read:
             1615           32B-6-205. Specific operational requirements for a full-service restaurant license.
             1616          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             1617      Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
             1618      shall comply with this section.
             1619          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1620      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1621          (i) a full-service restaurant licensee;
             1622          (ii) individual staff of a full-service restaurant licensee; or
             1623          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
             1624      licensee.
             1625          (2) In addition to complying with Subsection 32B-5-301 (3), a full-service restaurant
             1626      licensee shall display in a prominent place in the restaurant a list of the types and brand names
             1627      of liquor being furnished through the full-service restaurant licensee's calibrated metered
             1628      dispensing system.
             1629          (3) In addition to complying with Section 32B-5-303 , a full-service restaurant licensee
             1630      shall store an alcoholic product in a storage area described in Subsection (12)(a).
             1631          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
             1632      licensee's premises shall make a written beverage tab for each table or group that orders or
             1633      consumes an alcoholic product on the premises.
             1634          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             1635      alcoholic product ordered or consumed.
             1636          (5) A person's willingness to serve an alcoholic product may not be made a condition
             1637      of employment as a server with a full-service restaurant licensee.


             1638          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
             1639      the licensed premises on any day during the period that:
             1640          (i) begins at midnight; and
             1641          (ii) ends at 11:29 a.m.
             1642          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
             1643      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             1644      except that a full-service restaurant licensee may not sell, offer for sale, or furnish beer before
             1645      11:30 a.m. on any day.
             1646          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
             1647      business from the sale of food, which does not include:
             1648          (a) mix for an alcoholic product; or
             1649          (b) a service charge.
             1650          (8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             1651      alcoholic product except in connection with an order for food prepared, sold, and furnished at
             1652      the licensed premises.
             1653          (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
             1654      culinary facilities for food preparation and dining accommodations.
             1655          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             1656      more than two alcoholic products of any kind at a time before the patron.
             1657          (b) A patron may not have more than one spirituous liquor drink at a time before the
             1658      patron.
             1659          (c) An individual portion of wine is considered to be one alcoholic product under
             1660      Subsection (9)(a).
             1661          (10) A patron may consume an alcoholic product only:
             1662          (a) at:
             1663          (i) the patron's table;
             1664          (ii) a counter; or
             1665          (iii) a seating grandfathered bar structure; and
             1666          (b) where food is served.
             1667          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             1668      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar


             1669      structure that is not a seating grandfathered bar structure.
             1670          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             1671      may:
             1672          (i) sit;
             1673          (ii) be furnished an alcoholic product; and
             1674          (iii) consume an alcoholic product.
             1675          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             1676      full-service restaurant licensee may not permit a minor to, and a minor may not:
             1677          (i) sit; or
             1678          (ii) consume food or beverages.
             1679          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             1680      by a full-service restaurant licensee:
             1681          (A) as provided in Subsection 32B-5-308 (2); or
             1682          (B) to perform maintenance and cleaning services during an hour when the full-service
             1683      restaurant licensee is not open for business.
             1684          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             1685      remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
             1686      premises in which the minor is permitted to be.
             1687          (12) Except as provided in Subsection 32B-5-307 (3), a full-service restaurant licensee
             1688      may dispense an alcoholic product only if:
             1689          (a) the alcoholic product is dispensed from:
             1690          (i) a grandfathered bar structure;
             1691          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             1692      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             1693      12, 2009; or
             1694          (iii) an area that is:
             1695          (A) separated from an area for the consumption of food by a patron by a solid,
             1696      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             1697      an alcoholic product are:
             1698          (I) not readily visible to a patron; and
             1699          (II) not accessible by a patron; and


             1700          (B) apart from an area used:
             1701          (I) for dining;
             1702          (II) for staging; or
             1703          (III) as a lobby or waiting area;
             1704          (b) the full-service restaurant licensee uses an alcoholic product that is:
             1705          (i) stored in an area described in Subsection (12)(a); or
             1706          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             1707          (A) immediately before the alcoholic product is dispensed it is in an unopened
             1708      container;
             1709          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             1710      is opened; and
             1711          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             1712          (c) any instrument or equipment used to dispense alcoholic product is located in an
             1713      area described in Subsection (12)(a).
             1714          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
             1715      charge or fee made in connection with the sale, service, or consumption of liquor including:
             1716          (a) a set-up charge;
             1717          (b) a service charge; or
             1718          (c) a chilling fee.
             1719          (14) Except as provided in Subsection 32B-5-307 (3)(d) and notwithstanding
             1720      Subsection 32B-6-706 (4), a full-service restaurant licensee may not allow a patron to remove a
             1721      container containing an alcoholic product from the licensed premises of the full-service
             1722      restaurant unless the full-service restaurant licensee S. [ holds ] enters into .S a package agency
             1722a      S. contract .S under which the
             1723      full-service restaurant licensee may sell, offer for sale, or furnish sealed containers of an
             1724      alcoholic product S. other than beer, and obtains permission from the local authority to sell,
             1724a      offer for sale, or furnish sealed containers of beer for off-premise consumption .S .
             1725          (15) Subject to Section 32B-5-309 , a full-service restaurant licensee may not
             1726      temporarily rent or otherwise temporarily lease its premises to a person unless:
             1727          (a) the person to whom the full-service restaurant licensee rents or leases the premises
             1728      agrees in writing to comply with this title as if the person is the full-service restaurant licensee,
             1729      except for a requirement related to making or maintaining a record; and
             1730          (b) the full-service restaurant licensee takes reasonable steps to ensure that the person


             1731      complies with this title as provided in Subsection (15)(a).
             1732          Section 19. Section 32B-6-206 is enacted to read:
             1733          32B-6-206. Master full-service restaurant license.
             1734          (1) (a) The commission may issue a master full-service restaurant license that
             1735      authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
             1736      alcoholic product on premises at multiple locations as full-service restaurants if the person
             1737      applying for the master full-service restaurant license:
             1738          (i) owns each of the full-service restaurants;
             1739          (ii) except for the fee requirements, establishes to the satisfaction of the commission
             1740      that each location of a full-service restaurant under the master full-service restaurant license
             1741      separately meets the requirements of this part; and
             1742          (iii) the master full-service restaurant license includes at least five full-service
             1743      restaurant locations.
             1744          (b) The person seeking a master full-service restaurant license shall designate which
             1745      full-service restaurant locations the person seeks to have under the master full-service
             1746      restaurant license.
             1747          (c) A full-service restaurant location under a master full-service restaurant license is
             1748      considered separately licensed for purposes of this title, except as provided in this section.
             1749          (2) A master full-service restaurant license and each location designated under
             1750      Subsection (1) are considered a single full-service restaurant license for purposes of Subsection
             1751      32B-6-203 (3)(a).
             1752          (3) (a) A master full-service restaurant license expires on October 31 of each year.
             1753          (b) To renew a person's full-service restaurant license, a person shall comply with the
             1754      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             1755      September 30.
             1756          (4) (a) The nonrefundable application fee for a master full-service restaurant license is
             1757      $330.
             1758          (b) The initial license fee for a master full-service restaurant license is $10,000 plus a
             1759      separate initial license fee for each newly licensed full-service restaurant license under the
             1760      master full-service restaurant license determined in accordance with Subsection
             1761      32B-6-204 (3)(b).


             1762          (c) The renewal fee for a master full-service restaurant license is $1,000 plus a separate
             1763      renewal fee for each full-service license under the master full-service restaurant license
             1764      determined in accordance with Subsection 32B-6-204 (3)(c).
             1765          (5) A new location may be added to a master full-service restaurant license after the
             1766      master full-service restaurant license is issued if:
             1767          (a) the master full-service restaurant licensee pays a nonrefundable application fee of
             1768      $330; and
             1769          (b) including payment of the initial license fee, the location separately meets the
             1770      requirements of this part.
             1771          (6) (a) A master full-service restaurant licensee shall notify the department of a change
             1772      in the persons managing a location covered by a master full-service restaurant license:
             1773          (i) immediately, if the management personnel is not management personnel at a
             1774      location covered by the master full-service restaurant licensee at the time of the change; or
             1775          (ii) within 30 days of the change, if the master full-service restaurant licensee is
             1776      transferring management personnel from one location to another location covered by the master
             1777      full-service restaurant licensee.
             1778          (b) A location covered by a master full-service restaurant license shall keep its own
             1779      records on its premises so that the department may audit the records.
             1780          (c) A master full-service restaurant licensee may not transfer alcoholic products
             1781      between different locations covered by the master full-service restaurant license.
             1782          (7) (a) If there is a violation of this title at a location covered by a master full-service
             1783      restaurant license, the violation may result in disciplinary action in accordance with Chapter 3,
             1784      Disciplinary Actions and Enforcement Act, against:
             1785          (i) the single location under a master full-service restaurant license;
             1786          (ii) individual staff of the location under the master full-service restaurant license; or
             1787          (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
             1788          (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
             1789      accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
             1790      master full-service restaurant licensee or individual staff of the master full-service restaurant
             1791      licensee if during a period beginning on November 1 and ending October 31:
             1792          (i) at least 25% of the locations covered by the master full-service restaurant license


             1793      have been found by the commission to have committed a serious or grave violation of this title,
             1794      as defined by rule made by the commission; or
             1795          (ii) at least 50% of the locations covered by the master full-service restaurant license
             1796      have been found by the commission to have violated this title.
             1797          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
             1798      Administrative Rulemaking Act, to establish how a person may apply for a master full-service
             1799      restaurant license under this section.
             1800          Section 20. Section 32B-6-303 is amended to read:
             1801           32B-6-303. Commission's power to issue limited-service restaurant license.
             1802          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             1803      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
             1804      obtain a limited-service restaurant license from the commission in accordance with this part.
             1805          (2) (a) The commission may issue a limited-service restaurant license to establish
             1806      limited-service restaurant licensed premises at places and in numbers the commission considers
             1807      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             1808      beer on premises operated as a limited-service restaurant.
             1809          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             1810      following on the licensed premises of a limited-service restaurant licensee:
             1811          (i) spirituous liquor; or
             1812          (ii) a flavored malt beverage.
             1813          (3) Subject to Section 32B-1-201 :
             1814          (a) The commission may not issue a total number of limited-service restaurant licenses
             1815      that at any time exceeds the number determined by dividing the population of the state by
             1816      7,493.
             1817          (b) The commission may issue a seasonal limited-service restaurant license in
             1818      accordance with Section 32B-5-206 .
             1819          (c) (i) If the location, design, and construction of a hotel may require more than one
             1820      limited-service restaurant sales location within the hotel to serve the public convenience, the
             1821      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             1822      limited-service restaurant locations within the hotel under one limited-service restaurant license
             1823      if:


             1824          (A) the hotel has a minimum of 150 guest rooms; and
             1825          (B) the locations under the limited-service restaurant license are:
             1826          (I) within the same hotel; and
             1827          (II) on premises that are managed or operated, and owned or leased, by the
             1828      limited-service restaurant licensee.
             1829          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             1830      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             1831      furnished.
             1832          (d) The commission may not issue a single limited-service restaurant license to a
             1833      limited-service restaurant that would have licensed premises in more than one building unless
             1834      there is continuity in the premises between the multiple buildings after considering one or more
             1835      of the following:
             1836          (i) whether a patron would go through an unlicensed area to move from one part of the
             1837      licensed premises to a different part of the licensed premises;
             1838          (ii) whether the buildings share common food preparation facilities;
             1839          (iii) whether there is a common entrance to the licensed premises with multiple
             1840      buildings; and
             1841          (iv) any other factor the commission considers relevant.
             1842          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             1843      limited-service restaurant license for premises that do not meet the proximity requirements of
             1844      Section 32B-1-202 .
             1845          (b) With respect to the premises of a limited-service restaurant license issued by the
             1846      commission that undergoes a change of ownership, the commission shall waive or vary the
             1847      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             1848      limited-service restaurant license to the new owner of the premises if:
             1849          (i) when a limited-service restaurant license was issued to a previous owner, the
             1850      premises met the proximity requirements of Subsection 32B-1-202 (2);
             1851          (ii) the premises has had a limited-service restaurant license at all times since the
             1852      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             1853      variance; and
             1854          (iii) the community location was located within the proximity requirements of


             1855      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             1856      described in Subsection (4)(b)(i) was issued.
             1857          Section 21. Section 32B-6-305 is amended to read:
             1858           32B-6-305. Specific operational requirements for a limited-service restaurant
             1859      license.
             1860          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             1861      Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
             1862      licensee shall comply with this section.
             1863          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1864      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1865          (i) a limited-service restaurant licensee;
             1866          (ii) individual staff of a limited-service restaurant licensee; or
             1867          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
             1868      licensee.
             1869          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
             1870      for sale, furnish, or allow consumption of:
             1871          (i) spirituous liquor; or
             1872          (ii) a flavored malt beverage.
             1873          (b) A product listed in Subsection (2)(a) may not be on the premises of a
             1874      limited-service restaurant licensee except for use:
             1875          (i) as a flavoring on a dessert; and
             1876          (ii) in the preparation of a flaming food dish, drink, or dessert.
             1877          (3) In addition to complying with Section 32B-5-303 , a limited-service restaurant
             1878      licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
             1879          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
             1880      licensee's premises shall make a written beverage tab for each table or group that orders or
             1881      consumes an alcoholic product on the premises.
             1882          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             1883      alcoholic product ordered or consumed.
             1884          (5) A person's willingness to serve an alcoholic product may not be made a condition
             1885      of employment as a server with a limited-service restaurant licensee.


             1886          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
             1887      or heavy beer at the licensed premises on any day during the period that:
             1888          (i) begins at midnight; and
             1889          (ii) ends at 11:29 a.m.
             1890          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
             1891      the hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             1892      except that a limited-service restaurant licensee may not sell, offer for sale, or furnish beer
             1893      before 11:30 a.m. on any day.
             1894          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
             1895      restaurant business from the sale of food, which does not include a service charge.
             1896          (8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             1897      alcoholic product except in connection with an order for food prepared, sold, and furnished at
             1898      the licensed premises.
             1899          (b) A limited-service restaurant licensee shall maintain on the licensed premises
             1900      adequate culinary facilities for food preparation and dining accommodations.
             1901          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             1902      more than two alcoholic products of any kind at a time before the patron.
             1903          (b) An individual portion of wine is considered to be one alcoholic product under
             1904      Subsection (9)(a).
             1905          (10) A patron may consume an alcoholic product only:
             1906          (a) at:
             1907          (i) the patron's table;
             1908          (ii) a counter; or
             1909          (iii) a seating grandfathered bar structure; and
             1910          (b) where food is served.
             1911          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             1912      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             1913      structure that is not a seating grandfathered bar structure.
             1914          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             1915      may:
             1916          (i) sit;


             1917          (ii) be furnished an alcoholic product; and
             1918          (iii) consume an alcoholic product.
             1919          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             1920      limited-service restaurant licensee may not permit a minor to, and a minor may not:
             1921          (i) sit; or
             1922          (ii) consume food or beverages.
             1923          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             1924      by a limited-service restaurant licensee:
             1925          (A) as provided in Subsection 32B-5-308 (2); or
             1926          (B) to perform maintenance and cleaning services during an hour when the
             1927      limited-service restaurant licensee is not open for business.
             1928          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             1929      remaining or sitting at the bar structure en route to an area of a limited-service restaurant
             1930      licensee's premises in which the minor is permitted to be.
             1931          (12) Except as provided in Subsection 32B-5-307 (3), a limited-service restaurant
             1932      licensee may dispense an alcoholic product only if:
             1933          (a) the alcoholic product is dispensed from:
             1934          (i) a grandfathered bar structure;
             1935          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             1936      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             1937      12, 2009; or
             1938          (iii) an area that is:
             1939          (A) separated from an area for the consumption of food by a patron by a solid,
             1940      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             1941      an alcoholic product are:
             1942          (I) not readily visible to a patron; and
             1943          (II) not accessible by a patron; and
             1944          (B) apart from an area used:
             1945          (I) for dining;
             1946          (II) for staging; or
             1947          (III) as a lobby or waiting area;


             1948          (b) the limited-service restaurant licensee uses an alcoholic product that is:
             1949          (i) stored in an area described in Subsection (12)(a); or
             1950          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             1951          (A) immediately before the alcoholic product is dispensed it is in an unopened
             1952      container;
             1953          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             1954      is opened; and
             1955          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             1956          (c) any instrument or equipment used to dispense alcoholic product is located in an
             1957      area described in Subsection (12)(a).
             1958          (13) A limited-service restaurant licensee may state in a food or alcoholic product
             1959      menu a charge or fee made in connection with the sale, service, or consumption of wine or
             1960      heavy beer including:
             1961          (a) a set-up charge;
             1962          (b) a service charge; or
             1963          (c) a chilling fee.
             1964          (14) Except as provided in Subsection 32B-5-307 (3)(d) and notwithstanding
             1965      Subsection 32B-6-706 (4), a limited-service restaurant licensee may not allow a patron to
             1966      remove a container containing an alcoholic product from the licensed premises of the
             1967      limited-service restaurant unless the limited-service restaurant licensee S. [ holds ] enters into .S a
             1967a      package agency S. contract .S
             1968      under which the limited-service restaurant licensee may sell, offer for sale, or furnish sealed
             1969      containers of an alcoholic product S. other than beer, and obtains permission from the local
             1969a      authority under which the limited-service restaurant licensee may sell, offer for sale, or furnish
             1969b      sealed containers of beer for off-premise consumption .S .
             1970          (15) Subject to Section 32B-5-309 , a limited-service restaurant licensee may not
             1971      temporarily rent or otherwise temporarily lease its premises to a person unless:
             1972          (a) the person to whom the limited-service restaurant licensee rents or leases the
             1973      premises agrees in writing to comply with this title as if the person is the limited-service
             1974      restaurant licensee, except for a requirement related to making or maintaining a record; and
             1975          (b) the limited-service restaurant licensee takes reasonable steps to ensure that the
             1976      person complies with this title as provided in Subsection (15)(a).
             1977          Section 22. Section 32B-6-306 is enacted to read:
             1978          32B-6-306. Master limited-service restaurant license.



             1979          (1) (a) The commission may issue a master limited-service restaurant license that
             1980      authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
             1981      alcoholic product on premises at multiple locations as limited-service restaurants if the person
             1982      applying for the master limited-service restaurant license:
             1983          (i) owns each of the limited-service restaurants;
             1984          (ii) except for the fee requirements, establishes to the satisfaction of the commission
             1985      that each location of a limited-service restaurant under the master limited-service restaurant
             1986      license separately meets the requirements of this part; and
             1987          (iii) the master limited-service restaurant includes at least five limited-service
             1988      restaurant locations.
             1989          (b) The person seeking a master limited-service restaurant license shall designate
             1990      which limited-service restaurant locations the person seeks to have under the master
             1991      limited-service restaurant license.
             1992          (c) A limited-service restaurant location under a master limited-service restaurant
             1993      license is considered separately licensed for purposes of this title, except as provided in this
             1994      section.
             1995          (2) A master limited-service restaurant license and each location under Subsection (1)
             1996      are considered a single limited-service restaurant license for purposes of Subsection
             1997      32B-6-303 (3)(a).
             1998          (3) (a) A master limited-service restaurant license expires on October 31 of each year.
             1999          (b) To renew a person's master limited-service restaurant license, a person shall comply
             2000      with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2001      September 30.
             2002          (4) (a) The nonrefundable application fee for a master limited-service restaurant license
             2003      is $330.
             2004          (b) The initial license fee for a master limited-service restaurant license is $5,000 plus
             2005      a separate initial license fee for each newly licensed limited-service restaurant license under the
             2006      master limited-service restaurant license determined in accordance with Subsection
             2007      32B-6-304 (3)(b).
             2008          (c) The renewal fee for a master limited-service restaurant license is $500 plus a
             2009      separate renewal fee for each limited-service license under the master limited-service restaurant


             2010      license determined in accordance with Subsection 32B-6-304 (3)(c).
             2011          (5) A new location may be added to a master limited-service restaurant license after the
             2012      master limited-service restaurant license is issued if:
             2013          (a) the master limited-service restaurant licensee pays a nonrefundable application fee
             2014      of $330; and
             2015          (b) including payment of the initial license fee, the location separately meets the
             2016      requirements of this part.
             2017          (6) (a) A master limited-service restaurant licensee shall notify the department of a
             2018      change in the persons managing a location covered by a master limited-service restaurant
             2019      license:
             2020          (i) immediately, if the management personnel is not management personnel at a
             2021      location covered by the master limited-service restaurant licensee at the time of the change; or
             2022          (ii) within 30 days of the change, if the master limited-service restaurant licensee is
             2023      transferring management personnel from one location to another location covered by the master
             2024      limited-service restaurant licensee.
             2025          (b) A location covered by a master limited-service restaurant license shall keep its own
             2026      records on its premises so that the department may audit the records.
             2027          (c) A master limited-service restaurant licensee may not transfer alcoholic products
             2028      between different locations covered by the master limited-service restaurant license.
             2029          (7) (a) If there is a violation of this title at a location covered by a master
             2030      limited-service restaurant license, the violation may result in disciplinary action in accordance
             2031      with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2032          (i) the single location under a master limited-service restaurant license;
             2033          (ii) individual staff of the location under the master limited-service restaurant licence;
             2034      or
             2035          (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
             2036          (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
             2037      accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
             2038      master limited-service restaurant licensee or individual staff of the master limited-service
             2039      restaurant licensee if during a period beginning on November 1 and ending October 31:
             2040          (i) at least 25% of the locations covered by the master limited-service restaurant license


             2041      have been found by the commission to have committed a serious or grave violation of this title,
             2042      as defined by rule made by the commission; or
             2043          (ii) at least 50% of the locations covered by the master limited-service restaurant
             2044      license have been found by the commission to have violated this title.
             2045          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
             2046      Administrative Rulemaking Act, to establish how a person may apply for a master
             2047      limited-service restaurant license under this section.
             2048          Section 23. Section 32B-6-903 is amended to read:
             2049           32B-6-903. Commission's power to issue beer-only restaurant license.
             2050          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2051      beer on its premises as a beer-only restaurant, the person shall first obtain a beer-only
             2052      restaurant license from the commission in accordance with this part.
             2053          (2) (a) The commission may issue a beer-only restaurant license to establish beer-only
             2054      restaurant licensed premises at places and in numbers the commission considers proper for the
             2055      storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as a
             2056      beer-only restaurant.
             2057          (b) A person may not sell, offer for sale, furnish, or allow the consumption of liquor on
             2058      the licensed premises of a beer-only restaurant licensee.
             2059          (3) (a) Only one beer-only restaurant license is required for each building or resort
             2060      facility owned or leased by the same person.
             2061          (b) A separate license is not required for each beer-only restaurant license dispensing
             2062      location in the same building or on the same resort premises owned or operated by the same
             2063      person.
             2064          (c) Except as provided in Subsections (3)(a) and (b), the commission may not issue a
             2065      single beer-only restaurant license to a beer-only restaurant that would have licensed premises
             2066      in more than one building unless there is continuity in the premises between the multiple
             2067      buildings after considering one or more of the following:
             2068          (i) whether a patron would go through an unlicensed area to move from one part of the
             2069      licensed premises to a different part of the licensed premises;
             2070          (ii) whether the buildings share common food preparation facilities;
             2071          (iii) whether there is a common entrance to the licensed premises with multiple


             2072      buildings; and
             2073          (iv) any other factor the commission considers relevant.
             2074          (4) (a) Except as provided in Subsection (4)(b) or (c), the commission may not issue a
             2075      beer-only restaurant license for premises that do not meet the proximity requirements of
             2076      Section 32B-1-202 .
             2077          (b) With respect to the premises of a beer-only restaurant license issued by the
             2078      commission that undergoes a change of ownership, the commission shall waive or vary the
             2079      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             2080      beer-only restaurant license to the new owner of the premises if:
             2081          (i) when a beer-only restaurant license was issued to a previous owner, the premises
             2082      met the proximity requirements of Subsection 32B-1-202 (2);
             2083          (ii) the premises has had a beer-only restaurant license at all times since the beer-only
             2084      restaurant license described in Subsection (4)(b)(i) was issued without a variance; and
             2085          (iii) the community location was located within the proximity requirements of
             2086      Subsection 32B-1-202 (2) after the day on which the beer-only restaurant license described in
             2087      Subsection (4)(b)(i) was issued.
             2088          (c) The location of the licensed premises of an on-premise beer retailer who is licensed
             2089      as of July 1, 2011, is grandfathered and not required to meet the proximity requirements of
             2090      Section 32B-1-202 if the on-premise beer retailer obtains a beer-only restaurant license by not
             2091      later than March 1, 2012. A location grandfathered under this Subsection (4)(c) is considered
             2092      grandfathered notwithstanding that the beer-only restaurant license undergoes a change of
             2093      ownership.
             2094          Section 24. Section 32B-6-905 is amended to read:
             2095           32B-6-905. Specific operational requirements for a beer-only restaurant license.
             2096          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2097      Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
             2098      shall comply with this section.
             2099          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2100      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2101          (i) a beer-only restaurant licensee;
             2102          (ii) individual staff of a beer-only restaurant licensee; or


             2103          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
             2104          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
             2105      sale, furnish, or allow consumption of liquor.
             2106          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
             2107          (i) as a flavoring on a dessert; and
             2108          (ii) in the preparation of a flaming food dish, drink, or dessert.
             2109          (3) In addition to complying with Section 32B-5-303 , a beer-only restaurant licensee
             2110      shall store beer in a storage area described in Subsection (12)(a).
             2111          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
             2112      make a written beverage tab for each table or group that orders or consumes an alcoholic
             2113      product on the premises.
             2114          (b) A beverage tab required by this Subsection (4) shall list the type and amount of
             2115      beer ordered or consumed.
             2116          (5) A person's willingness to serve beer may not be made a condition of employment as
             2117      a server with a beer-only restaurant licensee.
             2118          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer during the
             2119      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             2120      except that a beer-only restaurant licensee may not sell, offer for sale, or furnish beer before
             2121      11:30 a.m. on any day.
             2122          (7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
             2123      business from the sale of food, which does not include a service charge.
             2124          (8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except in
             2125      connection with an order for food prepared, sold, and furnished at the licensed premises.
             2126          (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
             2127      facilities for food preparation and dining accommodations.
             2128          (9) A patron may not have more than two beers at a time before the patron.
             2129          (10) A patron may consume a beer only:
             2130          (a) at:
             2131          (i) the patron's table;
             2132          (ii) a grandfathered bar structure; or
             2133          (iii) a counter; and


             2134          (b) where food is served.
             2135          (11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
             2136      a patron, and a patron may not consume an alcoholic product at a bar structure.
             2137          (b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who
             2138      is 21 years of age or older may:
             2139          (i) sit;
             2140          (ii) be furnished a beer; and
             2141          (iii) consume a beer.
             2142          (c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
             2143      beer-only restaurant licensee may not permit a minor to, and a minor may not:
             2144          (i) sit; or
             2145          (ii) consume food or beverages.
             2146          (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
             2147      beer-only restaurant licensee:
             2148          (A) as provided in Subsection 32B-5-308 (2); or
             2149          (B) to perform maintenance and cleaning services during an hour when the beer-only
             2150      restaurant licensee is not open for business.
             2151          (ii) A minor may momentarily pass by a grandfathered bar structure without remaining
             2152      or sitting at the bar structure en route to an area of a beer-only restaurant licensee's premises in
             2153      which the minor is permitted to be.
             2154          (12) A beer-only restaurant licensee may dispense a beer only if:
             2155          (a) the beer is dispensed from an area that is:
             2156          (i) a grandfathered bar structure; or
             2157          (ii) separated from an area for the consumption of food by a patron by a solid,
             2158      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             2159      an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
             2160      from an area used for dining, for staging, or as a lobby or waiting area;
             2161          (b) the beer-only restaurant licensee uses a beer that is:
             2162          (i) stored in an area described in Subsection (12)(a); or
             2163          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2164          (A) immediately before the beer is dispensed it is in an unopened container;


             2165          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             2166      is opened; and
             2167          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             2168          (c) any instrument or equipment used to dispense the beer is located in an area
             2169      described in Subsection (12)(a).
             2170          (13) Notwithstanding Subsection 32B-6-706 (4), a beer-only restaurant licensee may
             2171      not allow a patron to remove a container containing an alcoholic product from the licensed
             2172      premises of the beer-only restaurant unless the beer-only restaurant licensee S. [ holds a package
             2173      agency ] obtains permission from the local authority .S under which the beer-only restaurant
             2173a      licensee may sell, offer for sale, or furnish sealed
             2174      containers of beer S. for off premise consumption .S .
             2175          (14) Subject to Section 32B-5-309 , a beer-only restaurant licensee may not temporarily
             2176      rent or otherwise temporarily lease its premises to a person unless:
             2177          (a) the person to whom the beer-only restaurant licensee rents or leases the premises
             2178      agrees in writing to comply with this title as if the person is the beer-only restaurant licensee,
             2179      except for a requirement related to making or maintaining a record; and
             2180          (b) the beer-only restaurant licensee takes reasonable steps to ensure that the person
             2181      complies with this title as provided in Subsection (14)(a).
             2182          Section 25. Section 32B-8a-201 (Effective 07/01/13) is amended to read:
             2183           32B-8a-201 (Effective 07/01/13). Transferability of retail license.
             2184          (1) (a) A retail license is separate from other property of a retail licensee.
             2185          (b) Notwithstanding Subsection (1)(a), the Legislature may terminate or modify the
             2186      existence of any type of retail license.
             2187          (c) Except as provided in this chapter, a person may not:
             2188          (i) transfer a retail license from one location to another location; or
             2189          (ii) sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
             2190      retail license to another person whether for monetary gain or not.
             2191          (d) If approved by the commission and subject to the requirements of this chapter, a
             2192      retail licensee may transfer a retail license:
             2193          (i) from the retail licensee to another person, regardless of whether it is for the same
             2194      premises; and
             2195          (ii) from one premises of the retail licensee to another premises of the retail licensee.


             2196          (2) (a) The commission may not approve the transfer of a retail license that results in a
             2197      transferee holding a different type of retail license than is held by the transferor.
             2198          (b) The commission may not approve the transfer of a retail license from one location
             2199      to another location, if the location of the premises to which the retail license would be
             2200      transferred is in a different county than the location of the licensed premises of the retail license
             2201      being transferred.
             2202          (3) The commission may not approve the transfer of a retail license if the transferee:
             2203          (a) is not eligible to hold the same type of retail license as the retail license to be
             2204      transferred at the premises to which the retail license would be transferred; or
             2205          (b) is delinquent in the payment of any of the following that arises in full or in part out
             2206      of the operation of a retail license:
             2207          (i) a tax, fee, or charge due under this title or Title 59, Revenue and Taxation; or
             2208          (ii) an amount due under Title 35A, Chapter 4, Employment Security Act.
             2209          (4) This chapter does not apply to a:
             2210          (a) master full-service restaurant license; or
             2211          (b) master limited-service restaurant license.
             2212           S. [ Section 26. Section 32B-9-204 is amended to read:
             2213          32B-9-204. General operational requirements for an event permit.
             2214          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or
             2215      furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
             2216      with this title and rules of the commission.
             2217          (b) Failure to comply as provided in Subsection (1)(a):
             2218          (i) may result in:
             2219          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             2220      Enforcement Act, against:
             2221          (I) an event permittee;

             2222           (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             2223      product at the event; or
             2224          (III) any combination of the persons listed in this Subsection (1)(b);
             2225          (B) immediate revocation of the event permit;
             2226          (C) forfeiture of a bond; or
] .S


             2227           S. [ (D) immediate seizure of an alcoholic product present at the event; and
             2228          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
             2229      event permit for a period of three years from the date of revocation of the event permit.
             2230          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
             2231      permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206 .
             2232          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             2233      the specific type of special use permit held by the special use permittee, the relevant part
             2234      governs.
             2235          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
             2236      event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
             2237      relevant part under this chapter for the type of event permit that is held by the event permittee.
             2238          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             2239      event permit held by an event permittee refers to "event permittee," a person involved in the
             2240      storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
             2241      event permit is issued is subject to the same requirement or prohibition.
             2242          (3) An event permittee shall display a copy of the event permit in a prominent place in
             2243      the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
             2244          (4) An event permittee may not on the premises of the event:

             2245           (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             2246      Chapter 10, Part 11, Gambling;
             2247          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2248      Part 11, Gambling; or
             2249          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2250      the risking of something of value for a return or for an outcome when the return or outcome is
             2251      based upon an element of chance, excluding the playing of an amusement device that confers
             2252      only an immediate and unrecorded right of replay not exchangeable for value.
             2253          (5) An event permittee may not knowingly allow a person at an event to, in violation of
             2254      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             2255      Paraphernalia Act:
             2256          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2257      58-37-2 ; or
] .S


             2258           S. [ (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2259      Section 58-37a-3 .
             2260          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
             2261      purchases from:
             2262          (a) a beer wholesaler licensee;
             2263          (b) a beer retailer; or
             2264          (c) a small brewer.
             2265          (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
             2266      consumption of an alcoholic product purchased for an event in a location other than that
             2267      described in the application and designated on the event permit unless the event permittee first
             2268      applies for and receives approval from the director, with the approval of the Compliance,
             2269      Licensing, and Enforcement Subcommittee, for a change of location.
             2270          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
             2271      furnish beer for on-premise consumption:
             2272          (i) in an open original container; and
             2273          (ii) in a container on draft.
             2274          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
             2275      Subsection (8)(a):
             2276          (i) in a size of container that exceeds two liters; or

             2277           (ii) to an individual patron in a size of container that exceeds one liter.
             2278          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
             2279      than the cost of the alcoholic product to the event permittee.
             2280          (b) An event permittee may not sell an alcoholic product at a discount price on any date
             2281      or at any time.
             2282          (c) An event permittee may not sell or offer for sale an alcoholic product at a price that
             2283      encourages over consumption or intoxication.
             2284          (d) An event permittee may not sell or offer for sale an alcoholic product at a special or
             2285      reduced price for only certain hours of the day of an event.
             2286          (e) An event permittee may not sell, offer for sale, or furnish more than one alcoholic
             2287      product at the price of a single alcoholic product.
             2288          (f) An event permittee, or a person operating, selling, offering, or furnishing an
] .S


             2289      S. [ alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or
             2290      unlimited number of alcoholic products during a set period for a fixed price, unless:
             2291          (i) the alcoholic product is served to a patron at a seated event;
             2292          (ii) food is available whenever the alcoholic product is sold, offered for sale, or
             2293      furnished; and
             2294          (iii) no person advertises that at the event a person may be sold or furnished an
             2295      indefinite or unlimited number of alcoholic products during a set period for a fixed price.
             2296          (g) An event permittee may not engage in a public promotion involving or offering a
             2297      free alcoholic product to the general public.
             2298          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
             2299          (a) a minor;
             2300          (b) a person actually, apparently, or obviously intoxicated;
             2301          (c) a known interdicted person; or
             2302          (d) a known habitual drunkard.
             2303          (11) (a) An alcoholic product is considered under the control of the event permittee
             2304      during an event.
             2305          (b) A patron at an event may not bring an alcoholic product onto the premises of the
             2306      event.

             2307           (12) An event permittee may not permit a patron to carry from the premises an open
             2308      container that:
             2309          (a) is used primarily for drinking purposes; and
             2310          (b) contains an alcoholic product.
             2311          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
             2312      an event is considered under the supervision and direction of the event permittee.
             2313          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
             2314      an event may not, while on duty:
             2315          (i) consume an alcoholic product; or
             2316          (ii) be intoxicated.
             2317          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
             2318      event.
             2319          (15) The location specified in an event permit may not be changed without prior
] .S


             2320      S. [ written approval of the commission. An event permittee shall pay an application fee of $300 to
             2321      apply for the written approval of the commission under this Subsection (15).
             2322          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
             2323      attempt in any way to dispose of the event permit to another person whether for monetary gain
             2324      or not.
             2325          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
             2326      consumption of an alcoholic product during a period that:
             2327          (i) begins at 1 a.m.; and
             2328          (ii) ends at 9:59 a.m.
             2329          (b) This Subsection (17) does not preclude a local authority from being more restrictive
             2330      with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
             2331      product at an event.
             2332          (18) A patron may have no more than one alcoholic product of any kind at a time
             2333      before the patron.
             2334          (19) (a) An event permittee shall display, in a prominent place, a sign in large letters
             2335      that consists of text in the following order:
             2336          (i) a header that reads: "WARNING";
             2337          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             2338      can cause birth defects and permanent brain damage for the child.";

             2339           S. [ (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             2340      [insert most current toll-free number] with questions or for more information.";
             2341          (iv) a header that reads: "WARNING"; and
             2342          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             2343      serious crime that is prosecuted aggressively in Utah."
             2344          (b) (i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different
             2345      font style than the text described in Subsections (19)(a)(iv) and (v).
             2346          (ii) The warning statements in the sign described in Subsection (19)(a) shall be in the
             2347      same font size.
             2348          (c) The Department of Health shall work with the commission and department to
             2349      facilitate consistency in the format of a sign required under this section.
] .S

             2350          Section 27. Section 32B-10-206 is amended to read:


             2351           32B-10-206. General operational requirements for special use permit.
             2352          (1) (a) A special use permittee and staff of the special use permittee shall comply with
             2353      this title and rules of the commission, including the relevant part of the chapter that applies to
             2354      the type of special use permit held by the special use permittee.
             2355          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2356      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2357          (i) a special use permittee;
             2358          (ii) individual staff of a special use permittee; or
             2359          (iii) a special use permittee and staff of the special use permittee.
             2360          (c) The commission may suspend or revoke a special use permit with or without cause.
             2361          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             2362      the specific type of special use permit, the relevant part under this chapter governs.
             2363          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a
             2364      special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
             2365      manufacture an alcoholic product authorized for the special use permit that is held by the
             2366      special use permittee.
             2367          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             2368      special use permit held by a special use permittee refers to "special use permittee," a person
             2369      involved in the purchase, use, store, sell, offer for sale, allow consumption, or manufacture of
             2370      an alcoholic product for which the special use permit is issued is subject to the same
             2371      requirement or prohibition.
             2372          (3) (a) A special use permittee shall make and maintain a record, as required by
             2373      commission rule, of any alcoholic product purchased, used, sold, or manufactured.
             2374          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2375      accordance with this Subsection (3).
             2376          (4) (a) Except as otherwise provided in this title, a special use permittee may not
             2377      purchase liquor except from a state store or package agency.
             2378          (b) A special use permittee may transport liquor purchased by the special use permittee
             2379      in accordance with this Subsection (4) from the place of purchase to the special use permittee's
             2380      premises.
             2381          (c) A special use permittee shall purchase liquor at prices set by the commission.


             2382          (d) When authorized by a special use permit, a special use permittee may purchase and
             2383      receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
             2384      educational, scientific, or manufacturing.
             2385          (e) A health care facility may purchase and receive an alcoholic product directly from a
             2386      manufacturer for use at the health care facility.
             2387          (5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
             2388      manufacture, or allow consumption of an alcoholic product in a location other than as
             2389      designated in a special use permittee's application.
             2390          (6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
             2391      furnish an alcoholic product to:
             2392          (a) a minor;
             2393          (b) a person actually, apparently, or obviously intoxicated;
             2394          (c) a known interdicted person; or
             2395          (d) a known habitual drunkard.
             2396          (7) A special use permittee may not employ a minor to handle an alcoholic product.
             2397          (8) (a) The location specified in a special use permit may not be transferred from one
             2398      location to another location, without prior written approval of the commission. A special use
             2399      permittee shall pay an application fee of $300 to apply for the written approval of the
             2400      commission under this Subsection (8)(a).
             2401          (b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
             2402      attempt in any way to dispose of the permit to another person whether for monetary gain or not.
             2403          (9) A special use permittee may not purchase, use, mix, store, sell, offer for sale,
             2404      furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized
             2405      by the special use permit.
             2406          (10) The commission may prescribe by policy or rule consistent with this title, the
             2407      general operational requirements of a special use permittee relating to:
             2408          (a) physical facilities;
             2409          (b) conditions of purchase, use, storage, sale, consumption, or manufacture of an
             2410      alcoholic product;
             2411          (c) purchase, storage, and sales quantity limitations; and
             2412          (d) other matters considered appropriate by the commission.


             2413          Section 28. Section 32B-11-208 is amended to read:
             2414           32B-11-208. General operational requirements for manufacturing license.
             2415          (1) (a) A manufacturing licensee and staff of the manufacturing licensee shall comply
             2416      with this title and the rules of the commission, including the relevant part of this chapter
             2417      applicable to the type of manufacturing license held by the manufacturing licensee.
             2418          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2419      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2420          (i) a manufacturing licensee;
             2421          (ii) individual staff of a manufacturing licensee; or
             2422          (iii) a manufacturing licensee and staff of the manufacturing licensee.
             2423          (2) A manufacturing licensee shall prominently display the manufacturing license on
             2424      the licensed premises.
             2425          (3) (a) A manufacturing licensee shall make and maintain the records required by the
             2426      department.
             2427          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2428      accordance with this Subsection (3).
             2429          (4) A manufacturing licensee may not sell liquor within the state except to:
             2430          (a) the department; or
             2431          (b) a military installation.
             2432          (5) A manufacturing license may not be transferred from one location to another
             2433      location, without prior written approval of the commission. A manufacturing licensee shall pay
             2434      an application fee of $300 to apply for the written approval of the commission under this
             2435      Subsection (5).
             2436          (6) (a) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give,
             2437      or attempt in any way to dispose of the license to another person, whether for monetary gain or
             2438      not.
             2439          (b) A manufacturing license has no monetary value for any type of disposition.
             2440          (7) A manufacturing licensee may not advertise its product in violation of this title or
             2441      any other federal or state law, except that nothing in this title prohibits the advertising or
             2442      solicitation of an order for industrial alcohol from a holder of a special use permit.
             2443          (8) A manufacturing licensee shall from time to time, on request of the department,


             2444      furnish for analytical purposes a sample of the alcoholic product that the manufacturing
             2445      licensee has:
             2446          (a) for sale; or
             2447          (b) in the course of manufacture for sale in this state.
             2448          (9) The commission may prescribe by policy or rule, consistent with this title, the
             2449      general operational requirements of a manufacturing licensee relating to:
             2450          (a) physical facilities;
             2451          (b) conditions of storage, sale, or manufacture of an alcoholic product;
             2452          (c) storage and sales quantity limitations; and
             2453          (d) other matters considered appropriate by the commission.
             2454          Section 29. Section 32B-12-301 is amended to read:
             2455           32B-12-301. General operational requirements for liquor warehousing license.
             2456          (1) (a) A liquor warehouser licensee and staff of the liquor warehouser licensee shall
             2457      comply with this title and the rules of the commission.
             2458          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2459      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2460          (i) a liquor warehouser licensee;
             2461          (ii) individual staff of a liquor warehouser licensee; or
             2462          (iii) both a liquor warehouser licensee and staff of the liquor warehouser licensee.
             2463          (2) (a) A liquor warehouser licensee shall make and maintain records required by the
             2464      department.
             2465          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2466      accordance with this Subsection (2).
             2467          (3) A liquor warehousing license may not be transferred from one location to another
             2468      location, without prior written approval of the commission. A liquor warehousing licensee
             2469      shall pay an application fee of $300 to apply for the written approval of the commission under
             2470      this Subsection (3).
             2471          (4) (a) A liquor warehouser licensee may not sell, transfer, assign, exchange, barter,
             2472      give, or attempt in any way to dispose of the license to another person, whether for monetary
             2473      gain or not.
             2474          (b) A liquor warehousing license has no monetary value for any type of disposition.


             2475          (5) A liquor warehouser licensee may not employ a minor to handle an alcoholic
             2476      product.
             2477          (6) Liquor that is warehoused in this state and sold to an out-of-state consignee, may be
             2478      transported out of the state only by a motor carrier regulated under Title 72, Chapter 9, Motor
             2479      Carrier Safety Act.
             2480          (7) Liquor that is warehoused in this state and sold to the department may be
             2481      transported only by a motor carrier approved by the department.
             2482          (8) Liquor transported to or from a liquor warehouser licensee's licensed premises shall
             2483      be carried in a sealed conveyance that is made available for inspection by the department while
             2484      en route within the state.
             2485          (9) A liquor warehouser licensee may not ship, convey, distribute, or remove liquor
             2486      from a warehouse in less than a full case lot.
             2487          (10) A liquor warehouser licensee may not ship, convey, distribute, or remove liquor
             2488      from a warehouse to a consignee outside the state that is not licensed as a liquor wholesaler or
             2489      retailer by the state in which the consignee is domiciled.
             2490          (11) A liquor warehouser licensee may not receive, warehouse, distribute, transport,
             2491      ship, or convey liquor that the commission has not authorized the liquor warehouser licensee to
             2492      handle through its warehouse.
             2493          (12) The commission may prescribe by policy or rule, consistent with this title, the
             2494      general operational requirements of licensees relating to:
             2495          (a) physical facilities;
             2496          (b) conditions of storage, distribution, or transport of liquor; and
             2497          (c) other matters considered appropriate by the commission.
             2498          Section 30. Uncodified Section 7, Laws of Utah 2012, Fourth Special Session,
             2499      Chapter 1 is amended to read:
             2500          Section 7. Uncodified Section 110, Laws of Utah 2011, Chapter 334 is amended to
             2501      read:
             2502          Section 110. Effective date.
             2503          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2011.
             2504          (2) (a) The repeal of Subsection 32B-6-603 (4) [(Effective 07/01/11)] in this bill takes
             2505      effect on November 1, 2011.


             2506          (b) Title 32B, Chapter 6, Part 8, Reception Center License, enacted by this bill takes
             2507      effect on November 1, 2011.
             2508          (c) Title 32B, Chapter 6, Part 9, Beer-only Restaurant License, enacted by this bill
             2509      takes effect on March 1, 2012.
             2510          (d) The following take effect on July 1, [2013] 2014:
             2511          (i) Section 32B-5-309 [(Effective 07/01/11)] (Effective 07/01/13) as amended by this
             2512      bill; and
             2513          (ii) Title 32B, Chapter 8a, Transfer of Retail License Act, enacted by this bill.
             2514          Section 31. Uncodified Section 8, Laws of Utah 2012, Fourth Special Session,
             2515      Chapter 1 is amended to read:
             2516          Section 8. Uncodified Section 24, Laws of Utah 2012, Chapter 365 is amended to
             2517      read:
             2518          Section 24. Effective date.
             2519          This bill takes effect on July 1, 2012, except that the amendments made to Section
             2520      32B-8a-302 [(Effective 07/01/12)] (Effective 07/01/13), and Section 32B-8a-303 [(Effective
             2521      07/01/12)] (Effective 07/01/13), in this bill take effect on July 1, [2013] 2014.
             2522          Section 32. Appropriation.
             2523          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             2524      the fiscal year beginning July 1, 2013, and ending June 30, 2014, the following sums of money
             2525      are appropriated from resources not otherwise appropriated, or reduced from amounts
             2526      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             2527      addition to any amounts previously appropriated for fiscal year 2014:
             2528          To Attorney General - Administration
             2529          From Alcoholic Beverage Control Act Legal Fund            $130,000
             2530          Schedule of Programs:
             2531              Administration                $130,000
             2532          The Legislature intends that the money appropriated be used to enforce Title 32B,
             2533      Alcoholic Beverage Control Act, as provided in Section 32B-2-307 .
             2534          Section 33. Effective date.
             2535          (1) Except as provided in Subsection (2), this bill takes effect on May 14, 2013.
             2536          (2) The actions to Section 32B-8a-201 (Effective 07/01/13) take effect on July 1, 2014.


             2537          Section 34. Revisor instructions.
             2538          The Legislature intends that the Office of Legislative Research and General Counsel, in
             2539      preparing the Utah Code database for publication do the following:
             2540          (1) change the superseding date in Section 32B-5-309 (Superseded 07/01/13) from July
             2541      1, 2013, to July 1, 2014;
             2542          (2) change the effective date in Section 32B-5-309 (Effective 07/01/13) from July 1,
             2543      2013, to July 1, 2014; and
             2544          (3) change the effective date from July 1, 2013, to July 1, 2014, in the following
             2545      sections:
             2546          (a) Section 32B-8a-101 (Effective 07/01/13);
             2547          (b) Section 32B-8a-102 (Effective 07/01/13);
             2548          (c) Section 32B-8a-201 (Effective 07/01/13);
             2549          (d) Section 32B-8a-202 (Effective 07/01/13);
             2550          (e) Section 32B-8a-203 (Effective 07/01/13);
             2551          (f) Section 32B-8a-301 (Effective 07/01/13);
             2552          (g) Section 32B-8a-302 (Effective 07/01/13);
             2553          (h) Section 32B-8a-303 (Effective 07/01/13);
             2554          (i) Section 32B-8a-401 (Effective 07/01/13);
             2555          (j) Section 32B-8a-402 (Effective 07/01/13);
             2556          (k) Section 32B-8a-403 (Effective 07/01/13);
             2557          (l) Section 32B-8a-404 (Effective 07/01/13);
             2558          (m) Section 32B-8a-501 (Effective 07/01/13); and
             2559          (n) Section 32B-8a-502 (Effective 07/01/13).


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